Contents

Introduction

2020 Goals chart

P&G profile

Environmental sustainability

Social responsibility

GRI index

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2014 Sustainability ReportContents

Introduction

2020 Goals chart

P&G profile

Environmental sustainability

Social responsibility

At P&G,sustainability is part ofeverything we do.
- A.G. Lafley, P&G President, CEO and Chairman of the Board
ABOUT THIS PUBLICATIONThis is the 16th Sustainability Report for Procter & Gamble’s worldwide operations. Data in this report cover the period from
July 1, 2013, through June 30, 2014. Financial information is given in U.S. dollars. This report was prepared using the Global Reporting
Initiative’s (GRI) G3 Reporting Guidelines. The mission of the GRI is to promote international harmonization in the reporting of relevant
and credible corporate economic, environmental and social performance information to enhance responsible decision making.
The GRI has not verified the contents of this report, nor does it take a position on the reliability of information reported herein.

F or further information about the GRI,
please visit: www.globalreporting.org

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

GRI index

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NOTE TO PDF USERThis PDF utilizes
interactive elements.
Click on contents and hyperlinks
for easy navigation.

Contents

Introduction

2020 Goals chart

Contents. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3Introduction.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4Leadership Statement. . . . . . . . . . . . . . . .  4
Our Goals. . . . . . . . . . . . . . . . . . . . . . . . .  52020 Goals Progress. . . . . . . . . . . . . . . .  11
P&G Profile. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 12
Our Purpose, Values and Principles. . . . .  13
P&G – A Company of Leading Brands. . . .  15
P&G at a Glance. . . . . . . . . . . . . . . . . . .  16
Acquisitions. . . . . . . . . . . . . . . . . . . . . . . 17
Proceeds from Asset Sales. . . . . . . . . . . .  17
Global Purchases. . . . . . . . . . . . . . . . . . .  17
Economic Development. . . . . . . . . . . . . . 17
Organizational Structure. . . . . . . . . . . . .  18
Manufacturing and Outsourcing. . . . . . .  19
P&G Plant Locations . . . . . . . . . . . . . . . .  20
Governance. . . . . . . . . . . . . . . . . . . . . . .  23
Political Involvement. . . . . . . . . . . . . . . .  24
Business Continuity. . . . . . . . . . . . . . . . .  24
Product Safety. . . . . . . . . . . . . . . . . . . . .  25

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Environmental sustainability

Environmental Sustainability .  .  .  .  .  .  .  .  .  .  . 26
Conservation of Resources. . . . . . . . . . . . . .  27
Cold-Water Washing. . . . . . . . . . . . . . . .  27
Packaging Reduction. . . . . . . . . . . . . . . .  28
Energy and CO2. . . . . . . . . . . . . . . . . . . . 29
Water. . . . . . . . . . . . . . . . . . . . . . . . . . .  31
Renewable Resources. . . . . . . . . . . . . . . . . .  33
Renewable Energy. . . . . . . . . . . . . . . . . .  33
Renewable Materials. . . . . . . . . . . . . . . .  34
Sustainable Forestry . . . . . . . . . . . . . . . .  35
Responsible Forest Managementin Our Wood Pulp Supply Chains. . . . . . .  36
Pulp for our Tissue/Towel
and Absorbent Hygiene Products . . . . . .  36
Paper Packaging. . . . . . . . . . . . . . . . . . .  37
Palm Oil . . . . . . . . . . . . . . . . . . . . . . . . .  38
Worth from Waste. . . . . . . . . . . . . . . . . . . .  39
Manufacturing Waste. . . . . . . . . . . . . . .  39
Zero Manufacturing Waste to Landfill. . .  40
Consumer Waste. . . . . . . . . . . . . . . . . . .  41
Resource and Waste Summary Table. . . . . . .  42

Social responsibility

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Social Responsibility. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 43
Social Responsibility Programs . . . . . . . . . . .  44
Comforts of Home . . . . . . . . . . . . . . . . .  44
Health and Hygiene. . . . . . . . . . . . . . . . .  45
Social Responsibility Policies and Practices . .  46
Human Rights. . . . . . . . . . . . . . . . . . . . .  47
Human Resources. . . . . . . . . . . . . . . . . .  47
Diversity & Inclusion . . . . . . . . . . . . . . . .  48
Global Medical. . . . . . . . . . . . . . . . . . . .  50
Worldwide Health, Safety
and Environment Systems. . . . . . . . . . . .  52
Compliance with Laws and Regulations. .  55
Notices of Violation (NOVs). . . . . . . . . . .  55
Air Emissions. . . . . . . . . . . . . . . . . . . . . .  55
SARA 313 Releases. . . . . . . . . . . . . . . . .  55
Stakeholder Engagement . . . . . . . . . . . .  56
Advertising and Promoting
to Consumers Appropriately. . . . . . . . . .  57
Eliminating Research Involving Animals. .  57
Sustainability Guidelines
for External Business Partners . . . . . . . . .  58
Supplier Diversity. . . . . . . . . . . . . . . . . . .  59
Personal Information Privacy. . . . . . . . . .  59
Policies & Management Systems .  .  .  .  .  .  .  . 60
GRI Index.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 61

www.pg.com/sustainability

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Leadership Statement

At P&G, our sustainability objective
is to create industry-leading value
with brands and products that
consumers prefer, while at thesame time conserving resources,
protecting the environment andimproving social conditions for
those who need it most.
We see success as creating value for consumers
and shareowners and leading the consumer
products industry with effective and lasting
solutions to environmental and social
sustainability challenges.
We believe in actions speaking louder thanwords – ”Promises made, Promises kept” – which
is why we consistently deliver products andprograms that demonstrate progress onenvironmental and social sustainability. For
example, we are innovating in:• Compacted laundry detergents, less bulky
diapers, and products that reducematerials, energy usage and waste;• Operations with zero manufacturing waste
to landfills and less energy and water usage;• Cold-water washing that conserves energy
and reduces CO2 emissions;• The P&G Children’s Safe Drinking Water
Program, which has delivered more than
7 billion liters of clean drinking water andhelped save an estimated 42,000 lives;• Brand programs that provide essential
products to help thousands of people inneed when disaster strikes around the world.
These types of efforts have helped us meet
consumer needs and make a positive environmental and social impact. To continue making
progress over time, we need to ensure that what
is good for sustainability also is good for business.
This belief is at the heart of my personalcommitment as P&G’s new Global Sustainability
Executive Sponsor. I see major opportunities toincorporate sustainability more deeply intobusiness strategy and planning, innovation,
operations and communication.
When sustainability goals and progress are led
from within operating business units, and whenbusiness leaders see sustainability as a choice for
growth and profitability, investment andbreakthrough innovation will follow.

We have stretching goals before us for 2020.
With clear business unit ownership and full
employee engagement at all levels and acrossthe entire Company, we know we can get
there. Toward that end, we are introducing
a three-pillar approach to our sustainability
efforts – aiming to ensure clarity, consistency
and engagement across the Company:• We Preserve. Every day, we look to design
products and operations with less water,energy and material waste to preserve
resources. Through our brands, we focus
on preserving the health and comfort ofthose in most need.
• We Partner. We can make the biggest
impact when we build partnerships withexperts in industry, government, NGOs
and academic communities. The challenges
are complex and require collaboration
to develop effective and lasting solutions.
We improve the way we communicate
sustainability through our brands to help
consumers make more educated choices
in how they choose and use products.

• We Pioneer. We use our innovation
capability to create products that not only
work well every day, but also aim to preserve
natural resources throughout their life cycle.
We find new and more effective ways toembed sustainability improvements into ourbusiness practices, systems and culture.
With this focus and the full integration of
our sustainability efforts into our business andinnovation plans, I am confident we will further
accelerate progress over the coming year.

Martin Riant
Executive Sponsor, Global SustainabilityGroup President, Global Baby, Feminine & Family CareContents

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Our Goals

At P&G, when we set a goal, P&G
employees will work their hardest
not just to meet it, but to exceed it.
That is why we established P&G’s Global
Sustainability Vision four years ago, backed
by a set of 14 goals driving work across allareas of our business. The goals are detailedon page 11, along with results achieved so far.
Looking ahead toward next fiscal year, in
October 2014 we added four new goals, withemphasis on water conservation and productpackaging. I wanted to share these so thatyou can see where we are headed.

Water Conservation Goals
Water conservation has been a long-standing
P&G priority. Our expanded commitment calls for:• Reducing water use in our manufacturing
facilities by 20% per unit of production,with a specific focus on conservation efforts
at facilities located in water-stressed regions• Providing 1 billion people access towater-efficient products

Packaging Goals

Palm Oil Goals

Packaging sustainability is another key priority
for P&G. We are on track to reduce packaging
by 20% per consumer use by 2020. Given thisprogress, P&G is raising the bar to:

Our commitment to zero deforestation in
our palm oil supply chain is unequivocal.

• Double the use of recycled resin inplastic packaging• Ensure 90% of product packaging is
recyclable or that programs are in place
to create the ability to recycle it

Increase use ofrecycled resin by

On track to reducepackaging by

100

20

%

%

Revised Renewable Materials Goal
We also are working across our supply chain todevelop the capability by 2020 to replace our
top petroleum-derived raw materials withrenewable materials, as cost and scale permit.

In April, we reinforced this commitment withan announcement of goals calling for traceabilityof palm oil and palm kernel oil to our suppliermills by December 31, 2015, and to plantations
by 2020.
To support these goals, we began the intensive
work of tracing our complete supply chain bypartnering with the Malaysia Institute for
Supply Chain Innovation (MISI), part of the
Massachusetts Institute of Technology. MISI
is conducting two six-month in-field studies
to understand the highly segmented supply
chain and the challenges facing farmers so
we can help them continue working while
also protecting the environment. We also
communicated our new goals and the
expectation that our supply chain will not
contribute to deforestation with all our palm
oil suppliers. We continue to work with ourindustry peers and NGOs to develop consistentindustry standards and practices that will ensuresustainable palm oil sourcing for the long term.
We will continue to issue updates on this workat pg.com/sustainability.
We believe that meaningful progress toward
demanding sustainability goals is right for theplanet and right for P&G’s business. We’recommitted to doing the right thing, in the rightway, for those who use our products, live in ourcommunities and work in our Company. We
thank you for your partnership on the journey.

Len Sauers
Vice President, Global Sustainability

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Introduction

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Sustainability Across A Product’s Life Cycle
We incorporate sustainability into every aspect of our products –from initial design to manufacturing to packaging to social impact.

Pampers Global

Tide Liquid North America

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GRI index

Environmental Sustainability
We use P&G’s core strength of innovation to design and manufacture products that meet important consumer needs while reducing
materials and waste and conserving energy and water. We build partnerships with experts in industry, government, NGOs and academic
communities because the challenges are complex and require collaboration to develop effective and lasting solutions.
MANUFACTURING:NEW GOALS:

Making Zero Waste a Reality
Our vision is to send no manufacturing waste
to landfill. It’s a stretching goal, but we havemade tremendous progress in the last sevenyears. We now have 70 zero manufacturing
waste to landfill facilities around the world.
That is nearly 50% of all our manufacturing
facilities. This work has enabled us to exceed
our goal on waste reduction six years aheadof schedule. Our goal was to reduce ourPalm Oil
manufacturing waste to less than 0.5% of
input materials by 2020. This year, only 0.4%
of all incoming materials were disposed of as
waste. All other material either left as finishedproduct or was recycled, reused, repurposed orconverted to energy. We also have created morethan $1.6 billion in value for the Company
through cost savings and revenue generationin the last seven years.

A new set of palm oil goals put our teams in
the field working with large and small palm
plantation owners across Malaysia to ensure
full traceability of our palm oil and palm kernel
oil supply while also helping small farmers
improve practices. The ultimate goal is to ensurethat we are not contributing to the destruction ofrain forests. Our teams are working with experts
from the Malaysia Institute for Supply Chain
Innovation to better understand farmers’ needs,

70

zero
manufacturing
waste to landfill
facilities

SUPPLIERS:GOAL REACHED:This year we upgraded our Supplier Sustainability
Scorecard, making data management more
efficient and actionable. The Scorecard tracks
supplier performance on key environmental
measures, enabling us to evaluate improvement
over time in terms of carbon, energy, water andwaste performance. Our aim now is to increase
data collection, and thus our ability to work withkey strategic suppliers in reducing our collective
environmental footprint.

We celebrate reaching and exceeding one of
our key renewable resources goals a year aheadof schedule:

Working in Partnership

Renewable Resources• Today, 54% of the virgin wood fiber usedin our tissue/towel products is certified byForest Stewardship Council®, exceeding ourgoal to have 40% certified by 2015.
We reached the goal in collaboration with theWorld Wildlife Fund’s Global Forest and Trade
Network (GFTN) and its network of forestry
experts from around the world.

practices and challenges to ultimately help
create innovative solutions to the problem.
Our new goals call for traceability of palm oiland palm kernel oil to our supplier mills by
December 31, 2015, and to plantations by 2020.

Zerodeforestationin palm oil

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Environmental Sustainability (cont.)
PACKAGING:

PACKAGING:

Innovating for Savings

Enabling Recycling toIncrease Recycled Content

Mr. Clean Liquid Muscle delivered two
innovations. Its 2.5x-concentrated formula
resulted in 45% less packaging and 64% lesswater per bottle. Its unique single-dosing cap
is preferred by consumers and ensures people
don’t use too much. The cap design has won
five global design awards, with judges for the
DuPont Packaging Awards calling it “anamazing, award-winning package.”

As part of our goal to increase the amount ofrecycled materials in our packaging, we areworking with multiple partners to develop andencourage the use of local recycling programs.
This year, we became a founding member of
the Closed Loop Fund, designed to give moreconsumers in the United States access torecycling by creating a multi-million-dollar
fund to invest in low- and no-interest loans forrecycling. This will “enable a larger supply ofusable, recyclable content, which will enable

45% 64%
lesspackagingless water
per bottle

PRODUCT FORMULATION:

Fabric Care Innovation
We committed to another round of compactionin our liquid laundry detergents, pledging to 25%
less water in every dose of detergents sold in
North America by 2018. This means less plastic,
water and energy used to make, pack and ship
products – and fewer delivery trucks on the road.
We anticipate saving 50 million gallons ofwater a year and reducing CO2 emissions by
50,000 metric tons. When we moved to a
2x-concentrated formula in 2008, we reduced
plastic by more than 40%, reduced water use
by 35% and increased truck capacity by 50%.

Fabric Care also committed to eliminating
phosphates from all of its laundry detergents(Tide, Ariel, Ace and Bonux) within the next
two years, providing consumers with superiorcleaning performance while maximizing resource
conservation. We have gradually been reducing
phosphates since 2005.

25% 0
less waterby 2018

phosphates
by 2016

manufacturers to give consumers what theywant more packaging with recycled materials.
This is good for consumers and good for theenvironment,” said P&G President, CEO andChairman of the Board A.G. Lafley.

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Social Sustainability
Doing the right thing is the foundation of P&G’s Purpose, Values and Principles and includes investing in the communities inwhich we live, work and serve. P&G Social Sustainability provides programs and daily essential products when and where they
are needed most and perform at their best, responding to disasters and other extreme needs.

Disaster Relief

Children’s Safe Drinking Water

In November 2013, when the strongest storm
ever to hit land whipped across the Philippines,
P&G teams around the globe responded.
Pampers, Safeguard, Duracell, Pantene and morethan a dozen other brands joined together tohelp the 16 million people impacted and 4 million
people left homeless. Together, P&G employees
and our brands sent more than $3 million inpersonal care supplies, cash and P&G Purifierof Water packets to help.
P&G also sent products and cash donations
to help with more than 20 major disasters,
including massive flooding in the Balkans;devastating tornadoes, flash floods andmudslides in the U.S.; wildfires in Chile;and earthquakes in Pakistan.

Here is a look at just some of ourwork aimed at improving lives intimes of disaster:This year, The P&G Children’s Safe Drinking Water
Program provided its 7 billionth liter of clean
drinking water for children and families in needand helped save an estimated 42,000 lives.

July 2013

The program:

In India, thousands of people were impacted andhomes devastated by flooding that hit with fury insummer 2013. P&G responded by providing P&G
Purifier of Water packets and products such as
Whisper, Oral-B, Tide and Pantene.

September 2013
Boulder, CO, and surrounding areas, P&G distributed
more than 4,000 personal care kits along with products
such as Charmin, Bounty, Pampers and Dawn. Tide Loads
of Hope also helped by providing clean laundry for
hundreds of families.

May 2014

loads of laundry
cleaned by the
Tide Loads of Hopeprogram since 2005

• Developed and expanded a shopper-facing
promotion with Wal-Mart and its UK ASDA
stores to engage consumers in providing
clean drinking water to developing

October 2013
When floods also hit Mexico, P&G sent 2.5 million
P&G Purifier of Water packets and 6,000 disaster
relief product kits.

60,000• Delivered the 7 billionth liter to a family of
six through a new community program insoutheastern Brazil with NGO partner
ChildFund.

Deadly flooding in the Balkans impacted 1.6 million
people in Bosnia alone. P&G helped with productdonations totaling $80,000 and a grant to rebuild
homes and a school.

CSDW by the numbers+140 +7.5 billion
Global partners

Liters to datecountries. Still growing, the program alreadyhas reached more than 50 million shoppers
and raised funds to deliver an additional
80 million days of clean drinking water.
• Expanded operations in 17 countries,
including Myanmar, Vietnam and India,
and launched in Brazil.Expanded operationsin 17 countries, including Myanmar, Vietnam
and India, and launched in Brazil.

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Social Sustainability (cont.)
Helping Through Our Brands
Always reached an additional 300,000 girls
through its Protecting Futures Program,providing girls ages 12-14 with education on
good personal hygiene, puberty, menstruationand personal care tips. The program, started in
2006, helps girls attend classes during theirperiods, and stay in school. The program has
expanded from Africa to the Middle East.
Pampers – as part of its commitment to happy,
healthy development of babies – created thePampers Mobile Clinic Program, providing freebasic health checks, health talks and products
to mothers and their babies. This year, the clinics
mark their 10th anniversary, reaching more than
1.8 million mothers and children in Nigeria,
Kenya, Uganda and Pakistan. Also, the Pampers
UNICEF vaccine program marked another yearof working to eliminate neonatal tetanus, apreventable disease that claims the life of
58,000 babies in developing countries eachyear. The campaign, 1 pack = 1 vaccine, hasdonated more than 300 million vaccines andhelped to eliminate the disease in 15 countries.

Habitat for Humanity
Safeguard’s Clean Hands Healthy Kids Campaign
marked its 15th year of teaching hygiene toprevent childhood illness, absenteeism and evendeath. The program was launched in China
based on global research that soap and water
washing can prevent nearly 4 million children ayear from dying before their 5th birthday. Today,
the program is in schools across China, thePhilippines, Pakistan and Mexico, reaching 4.5
million students a year. In many locations, thebrand has helped build hand-washing andsanitation stations for children.
Pantene launched a hair-donation program
called Beautiful Lengths eight years ago. This
cause encourages youth, adults and evencelebrities to grow, cut and donate their healthy
hair to help provide free wigs to women in need.
Pantene funds the creation of these wigs forcancer patients, and through their partnershipwith the American Cancer Society, distributes
them free of charge to female cancer patients. To
date, the program has collected 550,000 ponytail
donations, helping distribute more than 34,000
real-hair wigs across the U.S. and in Canada,
Australia and Israel in partnership with local
cancer associations.

Over the course of the year, P&G teams with
Habitat for Humanity have built or cleaned morethan 30 homes around the world. The impactof that work comes to life when we meet thepeople who live in those homes.

a wheelchair. P&G teams also brought theirtraditional “welcome home” gift basket fullof P&G brands like Gillette, Safeguard, OralB,and Pantene, to provide additional comfortsof home.

One person we met this year was Mr. Jaras,
who lived in the Prachinburi Province ofThailand. His community still had not recoveredfrom the brutal flooding that ripped throughscores of homes two years earlier. And the rainyseason was on its way again. Mr. Jaras, 50, waspartially paralyzed from a recent motorcycle
accident and could not repair the gaping holes
in his roof, floor and walls.

“He never stopped smiling. As difficult as
life was for him, he remained optimistic,”
said P&G Corporate Contributions Senior
Manager Brian Sasson. “We hope itchanged his life. We know it did ours.”

In partnership with Habitat for Humanity, P&G
employees came together to build a new home
for Mr. Jaras, with a solid floor, strong roof and

10yrs

+50

Partnership with
Habitat for Humanity

Projects we’ve beena part of aroundthe world

3,000
P&G employees haveworked to build andclean homes

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Introduction

2020 Goals Progress
We are working toward
our long-term vision of:• Powering all our plants with
100% renewable energy• Using 100% renewable or recycledmaterials for all products andpackaging• Having zero consumer andmanufacturing waste go tolandfills• Designing products that delight
consumers while maximizing theconservation of resources

Since 2010, we have established
14 goals to help us reach our
long-term vision. This year,
we’ve added four new goals andrevised one of our existing goals.
Our 18 goals and progress are
outlined here.

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GOAL

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PROGRESS

Conservation of Resources•Reduce energy use at P&G facilities and total CO2 (Scope 1 and Scope 2) by 20%
per unit of production by 2020.*•Since 2010, we have reduced our energy usage by about 7% and our total CO2
emissions (Scope 1 and Scope 2) by about 14% per unit of production.

•
Ensure 70% of all washing machine loads are washed in cold water.

•Since FY10/11, our data indicates the percentage of global washing machineloads washed in cold water increased from 38% to 53%.

•Reduce truck transportation kilometers by 20% per unit of production.*• We continue to make progress by optimizing distribution routes and increasing
the use of multi-modal transportation to reduce our truck-based kilometers perunit of production.

•Reduce packaging by 20% per consumer use.*•Since 2010, we have reduced packaging by about 7% per consumer use.

• Reduce water use in manufacturing facilities by 20% per unit of production,with conservation efforts focused on water-stressed regions.*•N ew goal announced October 13, 2014; we will report progress next year.

• Provide 1 billion people access to water-efficient products.

• New goal announced October 13, 2014; we will report progress next year.

• Double use of recycled resin in plastic packaging.*• New goal announced October 13, 2014; we will report progress next year.

• Ensure 90% of product packaging is either recyclable or programs are in place to create the ability to recycle it.

• New goal announced October 13, 2014; we will report progress next year.

Renewable Resources•
Ensure plants are powered by 30% renewable energy.

•Our use of renewable energy is about 8%. We continue to evaluate and expand
our portfolio of energy sources.

• Create technologies by 2020 to substitute top petroleum-derived raw materials
with renewable materials, as cost and scale permit.

• Revised goal announced October 13, 2014; we will report progress next year.

• Ensure traceability of palm oil and palm kernel oil to our supplier mills by December 31, 2015,
and to plantations by 2020 to ensure zero deforestation in our palm oil supply chain, with acommitment to working with small farmers.

• We continue making progress against our goals for full traceability in our palm oil
supply chain. Please view details of our progress on pg.com/sustainability•Have 100% of the virgin wood fiber used in our tissue/towel and absorbent hygiene products be third-party
certified by 2015.

•About 99% of our virgin wood fiber was third-party certified.

•Have 40% of the virgin wood fiber used in our tissue/towel products beForest Stewardship Council® certified by 2015.

•5 4% of the virgin wood fiber used in our tissue/towel products was FSC©
certified – exceeding our 2015 goal one year ahead of schedule.

•Have 100% of our paper packaging contain either recycled or third-party-certified virgin content by 2020.

• 96% of materials surveyed this year were either recycled or third-party-certified
virgin content.

Worth From Waste•Conduct pilot studies in both the developed and developing world to understand how to eliminate landfilled/ • F easibility studies have been completed for the lead pilot city for the Waste toWorth project in the Philippines. This year, P&G also became a founding member
dumped solid waste.
of the Closed Loop Fund, which will provide low- to no-interest loans to support
projects intended to increase recycling in the U.S.
•Reduce manufacturing waste to landfill to less than 0.5% of input materials.

• We reduced the manufacturing waste to landfill to 0.4% – exceeding our 2020
goal six years ahead of schedule.

Social Programs* vs 2010 baseline•Improve the lives of 50 million people each year through our social sustainability programs.

•P&G has exceeded this goal for 2013/14, with a focus on providing programs and daily
essential products when and where they are needed most and perform at their best.

•Save one life every hour by 2020.

•The P&G Children’s Safe Drinking Water Program delivered 1.4 billion liters ofclean water this year and is on track to meet our goal by providing 2 billion litersof drinking water each year by 2020.

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Introduction

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Environmental sustainability

P&G Profile
P&G serves nearly 5 billion
people around the world withits brands.
The Company has one of thestrongest portfolios of trusted,
quality, leadership brands, including
Always,® Ambi Pur,® Ariel,® Bounty,®
Charmin,® Crest,® Dawn,® Downy,®
Duracell,® Fairy,® Febreze,® Gain,®
Gillette,® Head & Shoulders,® Lenor,®
Olay,® Oral-B,® Pampers,® Pantene,®
SK-II,® Tide,® Vicks,® Wella® and
Whisper.®
Our products are sold in more than180 countries and territories aroundthe world primarily through massmerchandisers, grocery stores,
membership club stores, drug
stores, department stores, salons,e-commerce and high-frequency
stores. The P&G community includes
operations in approximately
70 countries worldwide andapproximately 118,000 employees.
P&G is a publicly traded company.
Its stock is listed and traded on the
New York Stock Exchange and NYSE
Euronext – Paris.

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Introduction

Our Purpose, Values
and Principles
Taken together, our Purpose, Values andPrinciples are the foundation for P&G’s
unique culture. Throughout our historyof over 175 years, our business has grown
and changed while these elements haveendured, and will continue to be passed
down to generations of P&G people
to come.
Our Purpose unifies us in a common cause andgrowth strategy of improving more consumers’
lives in small but meaningful ways each day. It
inspires P&G people to make a positive
contribution every day.

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Ownership

Trust

P&G is its people and the values by which welive. We attract and recruit the finest people
in the world. We build our organization fromwithin, promoting and rewarding people
without regard to any difference unrelated
to performance. We act on the conviction thatthe men and women of Procter & Gamble will
always be our most important asset.

• We accept personal accountability to meet thebusiness needs, improve our systems, and help
others improve their effectiveness.

• We respect our P&G colleagues, customers,
and consumers, and treat them as we want
to be treated.

• We all act like owners, treating the Company’s
assets as our own and behaving with theCompany’s long-term success in mind.

• We have confidence in each other’scapabilities and intentions.

Integrity• We always try to do the right thing.

• We are determined to be the best at doing
what matters most.

• We are honest and straightforwardwith each other.

• We have a healthy dissatisfaction with thestatus quo.

• We operate within the letter and spiritof the law.

• We have a compelling desire to improve andto win in the marketplace.

• We uphold the values and principles of
P&G in every action and decision.

And Our Principles articulate P&G’s uniqueapproach to conducting work every day.

• We are data-based and intellectuallyhonest in advocating proposals, including
recognizing risks.

Our Purpose

Leadership

We will provide branded products and servicesof superior quality and value that improve thelives of the world’s consumers, now and forgenerations to come.

• We are all leaders in our area of responsibility,with a deep commitment to deliver leadershipresults.

Passion for Winning• We believe that people work best when there
is a foundation of trust.

Consumers• We have a clear vision of where we are going.

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Our Values

Our Values reflect the behaviors that shape thetone of how we work with each other and with
our partners.

As a result, consumers will reward us withleadership sales, profit, and value creation,
allowing our people, our shareholders, andthe communities in which we live and work
to prosper.

Social responsibility

P&G Values
Integrity
Leadership
Ownership
Passion for Winning
Trust

P&G
BrandsP&G
People• We focus our resources to achieve leadershipobjectives and strategies.
• We develop the capability to deliver our
strategies and eliminate organizational barriers.

P&G Brands and P&G People are
the foundation of P&G’s success.
P&G People bring the values to life
as we focus on improving the livesof the world’s consumers.

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Our Principles

Innovation Is The Cornerstone of
Our Success

These are the Principles and supporting
behaviors that flow from our Purpose
and Values.

• We place great value on big, new consumer
innovations.

We Show Respect for All Individuals• We believe that all individuals can and wantto contribute to their fullest potential.
• We value differences.
• We inspire and enable people to achieve highexpectations, standards and challenging goals.
• We are honest with people about theirperformance.

The Interests of The Company
and the Individual Are Inseparable• We believe that doing what is right for thebusiness with integrity will lead to mutual
success for both the Company and theindividual. Our quest for mutual successties us together.
• We encourage stock ownership andownership behavior.

We Are Strategically Focused on
Our Work• We operate against clearly articulated andaligned objectives and strategies.
• We only do work and only ask for work that
adds value to the business.
• We simplify, standardize and streamline ourcurrent work whenever possible.

www.pg.com/sustainability• We challenge convention and reinvent
the way we do business to better win in
the marketplace.

We incorporate
Sustainability into our
products, packaging,and operations.
We Are Externally Focused• We develop superior understanding of
consumers and their needs.
• We create and deliver products, packaging
and concepts that build winning brand equities.
• We develop close, mutually productive
relationships with our customers and our
suppliers.
• We are good corporate citizens.
• We incorporate sustainability into our
products, packaging and operations.

Social responsibility

We Value Personal Mastery• We believe it is the responsibility of all
individuals to continually develop themselves
and others.
• We encourage and expect outstanding
technical mastery and executional excellence.

We Seek to Be the Best• We strive to be the best in all areas ofstrategic importance to the Company.
• We benchmark our performance rigorously
versus the very best internally and externally.
• We learn from both our successes andour failures.

Mutual Interdependency Is a
Way of Life
• We work together with confidence and trust
across business units, functions, categories,
and geographies.
• We take pride in results from reapplying
others’ ideas.
• We build superior relationships with all
the parties who contribute to fulfilling our
Corporate Purpose, including our customers,
suppliers, universities, and governments.
T o learn more about our Purpose,
Values and Principles, please go to:www.pg.com/en_US/company/purpose_people/pvp.shtml

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P&G – A Company of Leading Brands
P&G has 23 brands with annual sales of $1 billion to more than $10 billion, and 14 with sales of $500 million to $1 billion — many of those withbillion-dollar potential. Nearly all of our 23 billion-dollar brands and the vast majority of our $500 million to $1 billion brands hold the number
one or two position in their category or segment, and they all have significant growth and value creation potential.

Baby, Feminine and Family Care

BeautyFabric and Home Care

Health and Grooming

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P&G at a Glance
Financial Highlights (unaudited)2014 Net Sales

Amounts in millions, except per share amounts

2014

2013

2012

2011

2010

Net Sales$83,062$82,581$82,006$79,385$75,785

Operating Income

15,28814,33013,035

15,233

15,306Net Earnings Attributable to Procter & Gamble

11,643

11,312

10,756

11,797

12,736Net Earnings Margin from Continuing Operations

14.1%

13.7%

11.2%

14.5%

14.0%

$  3.98$  3.83$  3.06$  3.80$  3.38

4.01

3.86

3.66

3.93

4.11

2.45

2.29

2.14

1.97

1.80

Diluted Net Earnings per Common Share from Continuing Operations (1)Diluted Net Earnings per Common Share(1)

Dividends per Common Share

24%
10%

32%

9%

39%

16%

% of Net
Earnings*

GBUs (Categories)

Billion-Dollar Brands

BEAUTY24%

23%

Beauty Care (Antiperspirant and Deodorant, Cosmetics,
Personal Cleansing, Skin Care); Hair Care and Color;
Prestige; Salon Professional

Head & Shoulders, Olay,
Pantene, SK-II, Wella

GROOMING

10%

17%

Shave Care (Electronic Hair Removal, Female Blades and Razors, Fusion, Gillette,
Pre- and Post-Shave Products, Other Shave Care)
Mach3, Prestobarba

HEALTH CARE

9%9%

Personal Health Care (Gastrointestinal, Rapid Diagnostics,
Respiratory, Vitamins/Minerals/Supplements, Other Personal
Health Care); Oral Care (Toothbrush, Toothpaste, Other Oral
Care)

Crest, Oral-B, Vicks

By Market Maturity
Developed
Developing

61%

32%

26%

Fabric Care (Laundry Additives, Fabric Enhancers, Laundry
Detergents); Home Care (Air Care, Dish Care, P&G Professional,
Surface Care); Personal Power (Batteries)

Ariel, Dawn, Downy,
Duracell, Febreze, Gain,
Tide

BABY, FEMININE AND FAMILY CARE

25%

25%

Baby Care (Baby Wipes, Diapers and Pants); Feminine Care
(Adult Incontinence, Feminine Care); Family Care
(Paper Towels, Tissues, Toilet Paper)

Always, Bounty, Charmin,
Pampers*Percent of net sales and net earnings from continuing operations for the year ended June 30, 2014 (excluding results held in Corporate).

F or more financial details, please see P&G’s 2014 Annual Report, available at:www.pg.com/en_US/investors/financial_reporting/annual_reports.shtml
As part of P&G’s initiative to optimize resources to fit a growing global business and accelerate innovation and growth, the Company operates its
business as described under Organizational Structure on page 18. This organizational structure accounts for why P&G does not provide employee data,
sales or profits by individual countries. Some countries may provide this data in reports other than this one.

North America
EuropeAsia
Latin America	India, Middle East
and Africa (IMEA)

28%

39%

FABRIC AND HOME CARE

BeautyGrooming
Health Care
Fabric Care and Home Care	Baby, Feminine andFamily Care

By Geographic Region
10%

% of
Net Sales*

www.pg.com/sustainability

25%

7%

(1) Diluted net earnings per share are calculated on net earnings attributable to Procter & Gamble.

Reportable Segment

By Business Segment (2)(2) These results exclude net
sales in Corporate.

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Acquisitions

Global Purchases

Economic Development

Shareholder Information

Acquisition activity was not material in 2014.
Acquisitions used $1.1 billion of cash in 2013
primarily for the acquisition of our partner’sinterest in a joint venture in Iberia.

Total external spend was approximately$58 billion in FY 13/14, up slightly from the$56 billion we reported last year. This is spent
with over 80,000 business partners worldwide
and offers a significant opportunity to drive
sustainable supply in every region and acrossmultiple industries.

Innovation is a fundamental driver of P&G’s
growth. We invest about $2 billion a year
in research and development. This level ofinvestment is multiplied by our global networkof external innovation partners, which leads toan effective investment in innovation that far
exceeds the reported spending.

As of June 30, 2014, there were approximately
2,372,000 common stock shareowners,
including shareholders of record, participantsin the P&G Shareholder Investment Program,participants in P&G stock ownership plans andbeneficial owners with accounts at banks andbrokerage firms.

Proceeds from
Asset Sales
Proceeds from asset sales contributed to$570 million in cash in 2014 due to minor
brand divestitures, including MDVIP, the Pertbusiness in Latin America and the bleachbusiness in CEEMEA and Latin America.
Proceeds from asset sales contributed $584
million in cash in 2013 mainly due to thedivestitures of our bleach business in Italy andthe Braun household appliances business.

We continue to leverage the use of our ExternalBusiness Partner Sustainability Scorecard across a
broad range of partners. Specific partner results
are a key component of the Company’s externalbusiness partner performance management
process.
We are working with our critical and innovative
suppliers and agencies to develop bio-alternative
materials for use in our products, develop
alternative energy solutions to fuel our plants,
and provide sustainable alternatives to packaging,transportation, storage and operations. Our
external business partners are fully committed tocollaborate and innovate with Procter & Gamble
to improve our products, supply chains andoperations in a sustainable way.

Our External Business Development group andthe Connect + Develop organization manage
thousands of active connections with othercompanies and institutions. These include awide variety of partnership structures, including
licensing, sale, technology development, joint
ventures and more. P&G’s goal is to be thepartner of choice in working with others to
improve the lives of the world’s consumers.
For more information, please visit:www.pgconnectdevelop.com

The Computershare Trust Company serves astransfer and dividend paying agent for P&G
Common Stock and Administrator of the Procter& Gamble Shareholder Investment Program.
Registered shareowners and Program participantsneeding account assistance with share transfers,
plan purchases/sales, lost stock certificates, etc.,
should contact Computershare at:• Website: www.computershare.com/pg• Email: P&G@computershare.com• Phone: (M – F, 8am – 8pm Eastern):
1-800-742-6253; 1-781-575-4399(outside U.S. and Canada)

2 billion$

invested inresearch and development

www.pg.com/sustainability

Contact• Financial information request line (24 hours):
1-800-742-6253

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Introduction

Organizational
Structure
We have made P&G’s organization structure
an important part of our capability to grow. It
combines global-scale benefits with a local focus
to win with consumers and retail customers ineach country where P&G products are sold.

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the consumers, channels, customers andmarkets we serve:• Asia• Europe• India, the Middle East and Africa (IMEA)• Latin America

P&G’s four industry-based sectors are focusedon common consumer benefits, share common
technologies and face common competitors.

• North America• Baby, Feminine and Family Care

Global Business Services (GBS) utilizes P&G talentand expert partners to provide best-in-classbusiness support services at the lowest possible
costs to leverage P&G’s scale for a winningadvantage.

• Beauty, Hair and Personal Care
• Fabric and Home Care
• Health and Grooming
We’ve changed the name of our go-to-market
organizations from Market Development
Organizations to Selling and Market Operations(SMOs). This is more than a name change. It
clarifies the work SMOs need to do and thework they do best – superior, effective andefficient selling, distribution, shelving, pricing
execution and merchandising – every day, every
week, in every store. The SMOs are focused onwww.pg.com/sustainability

Lean Corporate Functions ensure ongoing
functional innovation and capability
improvement.

T o learn more about our Organizational
Structure, please go to: www.pg.com/
en_US/company/global_structure_operations/corporate_structure.shtml

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Manufacturing andOutsourcing
P&G has over 130 manufacturing facilities inover 40 countries. These facilities handle themajority of P&G’s production.
Our primary focus is delighting consumers. To
ensure that our products deliver superior value,
our manufacturing facilities must provide themost efficient option for the Company. We
conduct regular reviews to ensure that ourfacilities are highly competitive, and this processincludes benchmarking versus third-party
manufacturers. When it makes sense for thebusiness and it is the most competitive solution,
we may decide to use contract manufacturers.
For example, when entering a new market,
introducing a new product, or accessing atechnology or process we don’t currently have,
we may rely on contract manufacturing prior toinvesting in new capacity at a P&G facility.

To ensure that our
products deliver superiorvalue, our manufacturing
facilities must provide
the most efficient option
for the Company.

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Sometimes we use contract manufacturers
on a longer-term basis for reasons of costeffectiveness. In these instances, we are usually
manufacturing in the region and for the region,as almost all of our third-party manufacturers
are regional. In addition, many of our products
simply do not lend themselves to shipping long
distances. The exception to this would be whereunique manufacturing capability exists in one
region and we are able to economically ship
across regions.
The percentage of P&G production supplied bycontract manufacturers varies according to theneeds of the business and the ability of P&G
facilities to compete and win production basedon providing the best value. Currently, our plants
do this extremely well, and we rely on thirdparty manufacturers for only 10% to 15% of
our total manufacturing volume.

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P&G Plant
LocationsFiscal Year 13-14
COUNTRY

CITY

PLANT NAMECOUNTRY

CITY

PLANT NAME

Argentina

Pilar

Pilar

FranceAmiensAmiensArgentina

Villa Mercedes

Villa Mercedes

France

Blois

Blois

Belgium

AarschotAarschotFranceSarreguemines

Sarreguemines

Belgium

MechelenMechelenGermany

BerlinBerlinBrazilSão Paulo

Anchieta

Germany

CologneCologneBrazilLouveira

Louveira

Germany

Crailsheim

Crailsheim

BrazilManausManausGermany

Euskirchen

Euskirchen

BrazilRio De Janeiro

Rio

Germany

Gross-Gerau

Gross-Gerau

CanadaBelleville

Belleville

Germany

Hünfeld

Huenfeld

CanadaBrockville

Brockville

Germany

Kronberg

Kronberg

Chile

Santiago

Santiago

Germany

Marktheidenfeld

Marktheidenfeld

China

Beijing

BeijingGermany

Rothenkirchen

Rothenkirchen

China

ChengduChengduGermany

Walldürn

Wallduern

China

DongguanDong Guan

Germany

Worms

Worms

China

Guangzhou

Huangpu

GuatemalaEscuintla

Escuintla

China

Luogang

Luogang

Hungary

CsÖmÖrBudapest

China

Minhang

Minhang

Hungary

Fgyongyos

Gyongyos

China

Shanghai

Shanghai

India

District Solan

Baddi

China

Taicang City

Taicang

India

Baddi

Baddi B&R

China

Tianjin

TianjinIndia

BhiwadiBhiwadiChina

Tianjin

Xiqing

India

Ponda

Goa

Colombia

MedellínMedellín

India

Hyderabad

Hyderabad TS

Czech Republic

Rakovnik

RakonaIndia

BhopalMandideep

Egypt

Cairo

Cairo

Indonesia

JakartaJakarta

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COUNTRY

CITY

PLANT NAMECOUNTRY

CITY

PLANT NAME

Ireland

NenaghNenaghPhilippines

CabuyaoCabuyao

Ireland

Newbridge

Newbridge

PolandAleksandrow Lodzki

Aleksandrow

Italy

Gattatico

Gattatico

PolandLodz

Lodz-LMC (Jozefow Street)

Italy

PescaraPescaraPolandLodz

Lodz-PLMC (Wodna Street)

Italy

Rome

Pomezia

PolandWarsaw

TargowekJapan

AkashiAkashi

Puerto Rico

Cayey

Cayey

Japan

Yasu

Shiga

RomaniaTimişoaraTimişoara

Japan

TakasakiTakasaki

RomaniaUrlaţiUrlaţiMalaysia

KuantanKuantanRussiaDzerzhinsk

CapellaMexicoNaucalpan

Alce Blanco

RussiaNovomoskovsk

Novomoskovsk

MexicoApizacoApizacoRussiaSt. Petersburg

St. Petersburg

MexicoApaseo El Grande

Mariscala

Saudi Arabia

DammamDammamMexicoIrapuato

Milenio

Saudi Arabia

JeddahJeddahMexicoNaucalpan

Naucalpan

Singapore

Singapore

Singapore Pioneer

MexicoMexico City

TalismanSouth Africa

Johannesburg

Johannesburg

MexicoTepejiTepejiSouth Korea

Ch’onanCh’onanMexicoMexico City

Vallejo

Spain

JijonaJijonaMoroccoCasablanca

Casablanca

Spain

Mataró

Mataró

MoroccoMohammedia

Mohammedia

Spain

Mequinenza

Mequinenza

Netherlands

Coevorden

Coevorden

Spain

Montornès del VallèsMontornès

Nigeria

IbadanIbadanThailand

Bangkok

Bangkok

Nigeria

Lagos

Lagos

Turkey

Gebze

Gebze

Pakistan

KarachiHub

UkraineBoryspilBoryspilPakistan

KarachiPort Qasim

UkraineOrdzhonikidze

Ordzhonikidze

Peru

Lima

Materiales

United Arab Emirates

Dubai

Dubai

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COUNTRY

CITY

PLANT NAMECOUNTRY

CITY

PLANT NAME

United Kingdom

LondonLondonUnited States

Kansas City

Kansas City F&HC

United Kingdom

Manchester

Manchester

United States

LaGrange

LaGrange

United Kingdom

Reading

Reading

United States

Lancaster

Lancaster

United Kingdom

Whitley Bay

Seaton Delaval

United States

Leipsic

Leipsic

United States

AlbanyAlbanyUnited States

Lima

Lima

United States

Pineville

Alexandria

United States

Mehoopany

Mehoopany

United States

AndoverAndover

United States

North Chicago

North Chicago

United States

AuburnAuburnUnited States

OxnardOxnardUnited States

Augusta

Augusta

United States

Russellville

Russellville

United States

AuroraAuroraUnited States

Sacramento

Sacramento

United States

AvenelAvenelUnited States

St. Louis

St. Louis

United States

BostonBostonVenezuela

Barquisimeto

Barquisimeto

United States

Bear River City

Box Elder

Venezuela

GuatireGuatireUnited States

JacksonCape Girardeau

VietnamTan Uyen District

Ben CatUnited States

Cincinnati

Cincinnati

VietnamBinh Duong

Binh Duong

United States

Cleveland

Cleveland

United States

Dover

Dover

United States

Fremont

Fremont

United States

Green Bay

Green Bay

United States

Greensboro

Greensboro

United States

Henderson

Henderson

United States

Cockeysville

Hunt Valley

United States

Iowa City

Iowa City

United States

Iowa City

Iowa City (Oral Care)www.pg.com/sustainability

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GovernanceManagement’s Responsibility for
Financial Reporting

Everything we do is done with ourcommitment to “doing the right thing”
in mind.

At The Procter & Gamble Company, we takegreat pride in our long history of doing what’s
right. If you analyze what’s made our Company
successful over the years, you may focus on
our brands, our marketing strategies, ourorganization design and our ability to innovate.
But if you really want to get at what drives ourCompany’s success, the place to look is ourpeople. Our people are deeply committed to
our Purpose, Values and Principles. It is thiscommitment to doing what’s right thatunites us.

We believe that good governance practices
contribute to better results for shareholders.
Our objective is to maintain corporate
governance principles, policies, and practices
that support management and the Board of
Directors accountability. These are in the bestinterest of the Company and our shareholders,
and they are consistent with the Company’s
Purpose, Values and Principles.
T o learn more about our Governancestructure, policies, and procedures,
please go to: www.pg.com/en_US/
company/global_structure_operations/
governance/index.shtml

www.pg.com/sustainability

This commitment to doing what’s right isembodied in our financial reporting. Highquality financial reporting is our responsibility,
one we execute with integrity, and within boththe letter and spirit of the law. High-quality
financial reporting is characterized by accuracy,
objectivity and transparency. Management isSocial responsibility

responsible for maintaining an effective system
of internal controls over financial reporting todeliver those characteristics in all material
respects. The Board of Directors, through its
Audit Committee, provides oversight. We haveengaged Deloitte & Touche LLP to audit our
Consolidated Financial Statements, on which
they have issued an unqualified opinion.
T o learn more about our commitment
to providing timely, accurate andunderstandable information, pleasesee our Annual Report available at:www.pg.com/en_US/investors/
index.shtml

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Political Involvement

Business Continuity

Guided by our Purpose, Values and Principles,P&G participates in the political process tohelp shape public policy and legislation. This
engagement ensures that the interests of ouremployees, consumers and shareholders are
fairly represented at all levels of government
around the world. We are committed to beingtransparent about our political involvement
globally.

P&G’s Global Business Continuity Program
ensures that all critical sites and work processes
evaluate their risk mitigation programs, exposure
to catastrophic events at P&G sites and sites ofour key suppliers and service providers that
could significantly interrupt business operations,as well as the business impact of such events.
Site and business unit leaders then develop
contingency plans to minimize businessinterruption if a disabling event should occur.
Crisis Management team structures are defined
to manage business recovery using thepredefined contingency plans. Tests are
conducted annually to ensure that thecontingency plans are sufficient and up-to-date.

 ou can read more about our effortsY
here: www.pg.com/en_US/company/
global_structure_operations/governance/
governance_political.shtml

Principal Industry andBusiness Associations
P&G holds membership in many industry,business and environmental associations whose
activities are related to the Company’s. These
include the associations listed in the following
link: Associations List

www.pg.com/sustainability

Business Continuity Plans are audited regularly,
and a report of the Business Continuity
Program’s status is made annually to the
Audit Committee.

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Introduction

Product Safety
Our Commitment to Your Safety
Begins with You
Since Procter & Gamble was founded over 175
years ago, ensuring the safety of people who
use our products, and the safety of the world
we all live in, has been at the heart of what
we do. This commitment to safety is both ourheritage and our future, so we have ~ 700
in-house experts devoted globally to human andenvironmental safety and regulatory complianceof all our products and ingredients.
Our safety standards for all of our products
and ingredients are the same throughout
the world. We ensure that our products aresafe for their intended use before they go
to market – complying with all laws andregulations where they are sold.
Constant Diligence
Our commitment to safety doesn’t stop
once our products go to market. We remain
diligent in ensuring your safety by continuallyinvestigating new scientific information andcollaborating with external scientists andregulatory agencies on new safety methods. We
also listen to the people who use our products
to confirm they are performing as expected.

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Being Safe, Feeling Safe andIngredient Choices
Safety is at the heart of everything we
do – ensuring our products are safe for theirintended use before they go to market.
Simply put, that is being safe.
But feeling safe can be a different matter
altogether. We also work to help you to feelsafe by openly sharing information about
ingredients where you may have questions orwould like more details, including our updated
product safety section on www.pg.com.
Ingredient Use Update
We would like to share two ingredient use
updates that reflect decisions P&G made several
years ago – to phase out the use of thephthalates (DEP) and triclosan in our products.
• While the only phthalate we use in
our product formulations is safe (diethyl
phthalate, or DEP), we also know that
there is the potential for people to confuse
this ingredient with other phthalates that arebanned from certain product types. We wantpeople to feel safe about our products andnot have any misperceptions about the
product ingredients we use. So we decided
to remove DEP from our formulated products
and our goal is to eliminate it from our
products by the end of 2014.
• Triclosan is also known to be safe throughnumerous studies and regulatory reviews.
However, there are ongoing discussions
about how effective it is for reducing bacteria
compared to regular soap. Since we have
limited use of triclosan, our goal is to eliminate
it from our products by the end of 2014.

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For more information on these
ingredients and P&G’s approach for
ingredient-related decisions, please visit thefollowing section of pg.com, which also includes
a two-minute video designed to inform thepublic about the safety of our productingredients: www.pg.com/en_US/sustainability/
safety/ingredients/index.shtml

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Introduction

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Environmental sustainability

Environmental
Sustainability
P&G’s sustainability objective is tocreate industry-leading value with
consumer-preferred brands andproducts while conserving resources,
protecting the environment andimproving the social conditions for
those who need it most.
In this section we provide an update
on our efforts to advance ourenvironmental sustainability efforts
across three core focus areas:
Conservation of Resources,
Renewable Resources andWorth from Waste.

T o learn more about our commitment tooperate sustainably, please go towww.pg.com/en_US/sustainability/
policies_practices/enviroquality.shtml

THREE CORE FOCUS AREAS:

Conservation of Resources
Renewable Resources
Worth from Waste

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Introduction

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Environmental sustainability

Conservation of
Resources

in 2014, our data indicate a global average of
56% if we account for both cold water andhigh-efficiency, low-energy cycles.

Our work in conservation is simply about doing
more with less. We are trying to reduce theamount of energy, water and materials that go
into the making and use of our products, whilestill delivering the high-quality productperformance our consumers expect.

We consider this great progress, and whileother stakeholders clearly played a role inhelping drive this result, we believe our intense
consumer education efforts on cold-water
washing and our continuous focus on ensuring
great product performance in cold water havemade a significant contribution to this result.

Cold-Water Washing
Getting consumers to wash their clothes in low
temperatures represents a significant opportunity
to reduce energy consumption and associatedgreenhouse gas emissions. This is why we haveestablished a goal that by 2020, we want tohave 70% of all machine wash loads done incold water.
Our current data indicates the percentage ofglobal washing machine loads washed in cold
water increased from 38% to 53% between
2010 and 2014. That trend is encouraging, andwe are also seeing other relevant trends inconsumer habits such as an accelerating shift tomore sustainable high-efficiency washingmachines with low-energy cycles. As both trends
contribute to the objective of reducing energy
consumption during machine washing, we havestarted to track not only cold cycles, but also
high-efficiency, low-energy cycles. Accordingly

www.pg.com/sustainability

Progress to date has been mainly driven
by an increase of cold-water washing inWestern Europe, where we launched strong
communication programs. All versions of Ariel,
our leading laundry detergent in Europe, carrya “30˚C” icon to encourage consumers to washin cold. We have partnered with suppliers suchas Novozymes and DuPont to design

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technologies that provide greater performancein cold, and we talk to consumers about them.
We have worked with AISE, a detergents tradeassociation in Europe, on a major industry
consumer education campaign called “I prefer
30˚C” to drive low-temperature washing.
We also continue to partner with washingmachine manufacturers on three key areas:
1) place information about the benefits ofcold-water washing on new washing machinesreaching millions of consumers, 2) encouraging
the use of quick cycles where time saving is agreat consumer motivator to switch to this cycle
and 3) design detergents that perform at theirbest in the new high-efficiency machines inNorth America.

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In the coming fiscal year, we will maintain ourcommunication efforts globally, leveraging many
media channels, including TV, and on-pack. We
will continue our partnership with washingmachine manufacturers to further drive the useof cold-water, high-efficiency and quick cycle
machines. We will also maintain our focus on
R&D efforts to continue to further extend
product performance in cold-water andhigh-efficiency cycles.

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Introduction

Packaging Reduction
We continue to make good progress ondesigning and shipping more efficient packaging,having achieved a total reduction of
approximately 7% per consumer use since 2010.
Consumers moving to more efficient products
and packages, reductions in packaging used toship product, and new innovative materials anddesigns have all contributed to reducing our
packaging use. Fabric Care PODS continue to bea major contributor to our packaging reduction
goal as more consumers move to this very
efficient product and package. Designing
products and packages that delight the consumer
AND help deliver on our sustainability goals willcontinue to lead to large environmental impacts.
Moving forward, we will need to continue
to focus on innovation and breakthroughtechnologies that will continue to deliver

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Environmental sustainability

against our packaging reduction goal. Every
year it becomes a bigger challenge to identify
optimization opportunities as more brands
and packages achieve very efficient designs.
Packaging has many important functions,
including, but not limited to, protecting
the product, delivering the product to theconsumer and communicating the benefits
to the consumer. Our packaging needs tocontinue to deliver these benefits while
becoming more efficient. Innovations inmaterials and forms will be critical in the
future to make this happen. We will continue
to focus on the biggest brands and categories
where very small changes in efficiency deliver
big benefits for the environment while
delighting our consumers.

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Expanding Our Commitment toPackaging StewardshipAs shared earlier in this report, P&G announced two new packaging goals
in October 2014:
1. Double our use of recycled resin in our plastic packaging by 2020
2. Ensure 90% of our packaging is either recyclable or programs are in place
to develop the ability to recycle it.
While we have a long history of working on source reduction, recycled content
and recyclability, our new packaging goals will drive our progress even further.
We plan to report progress on all three goals in next year’s report.

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Introduction

Energy and CO2
In 2010 we established a goal to reduce totalenergy use and total CO2 emissions (Scope 1
and Scope 2) at P&G facilities by 20% per unitof production by 2020. Our current program
focuses on three elements:
1. Conservation – eliminating defects,
systematic reapplication, and daily
management
2. Cogeneration – using on-site generation
to make efficient use of waste heat
3. Renewable energy – moving away from fuelsthat create Scope 1 and Scope 2 emissions

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CO2

EnergyWe continue to exceed our glidepath on CO2
with an additional reduction of 3% per unit ofproduction this year. Overall, we have reduced
our CO2 emissions by approximately 14% versus
2010 and are aggressively working to achieve
our goal well ahead of schedule. In addition tomeeting the production normalized targets, ourconservation and improvement efforts havealso allowed P&G to decrease our absolute
CO2 emissions since 2010 as well.

Overall, we achieved an approximate 7%
reduction in energy per unit of production,
which is slightly below our current glidepathof 8% (2% per year). The main driver was thestartup of our new cogeneration systems in
Mehoopany, Pa., and Pescara, Italy. While thesesystems are more efficient overall (and lead to
reduced CO2 emissions), when P&G switchesfrom direct purchased electricity to onsite
generation, the efficiency losses related togeneration moves inside our footprint, thusincreasing our overall on-site energy
consumption.

This year, in accordance with WRI/WBCSD
Green House Gas accounting protocol, we arereporting biogenic CO2 separately from Scope 1
and Scope 2 emissions. During FY 13/14, P&G
had 257,352 metric tons of biogenic CO2
emissions across the company.

T o learn more about our efforts on
climate change, please see www.pg.com/
en_US/sustainability/policies_practices/climate.shtml

Total Greenhouse Gas Charts
Total Greenhouse Gas Emissions(Percent reduction versus FY09/10, per unit of production)
12

-8%

13

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-11%

14

-14%

Total Greenhouse Gas Emissions by GBU

Reduction in Energy Consumption(Millions of metric tons)(Percent reduction versus FY09/10, per unit of production)

12

5.6

12

13

5.5

13

-7%

14

5.4

14

-7%

-5%

Scope 1 Greenhouse Gas Charts
Scope 1 Greenhouse Gas Emissions*(Percent reduction versus FY09/10, per unit of production)
12

-8.5%

13

-12.1%

14

Scope 1 Greenhouse Gas Emissions*

Energy Consumption by GBU

12

2.6

12

72.8

13

2.5

13

72.4

14

73.2

(Millions of metric tons)

14

-7.7%

2.7

* CO2 from fuel combustion sources.

Scope 2 Greenhouse Gas Charts
Scope 2 Greenhouse Gas Emissions

Scope 2 Greenhouse Gas Emissions

12

12

3.0

13

2.9

(Percent reduction versus FY09/10, per unit of production)

13

-8%
-10%

14

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14

2.7

(Millions of gigajoules)

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Combined Heatand Power
During fiscal year 13-14, ourMehoopany plant completed installationof a Rolls Royce Trent 60 Gas Turbineand Heat Recovery Steam Generator.
This state-of-the-art power plant uses
one of the most efficient aeroderivative
gas turbines in the world (essentiallythe same family of engines found on
an Airbus A380 aircraft). This newunit, along with the plant’s existingcombined heat and power unit, enables
Mehoopany to self-generate 100% of
the site’s electrical needs in addition toa significant amount of steam and hot
air that is used to dry our Bounty andCharmin products. This project, which
was three years in the making, allows
P&G’s largest facility to move frompurchased electricity (that comes froma utility supply heavily dependent oncoal) to substantially cleaner electricity
produced from natural gas. This project
helped reduce CO2 emissions by over
120,000 metric tons per year.
Rolls Royce Trent
60 Turbine

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Introduction

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Environmental sustainability

Truck Transportation

Natural-Gas Trucking

Our 2020 goal is to reduce truck transportation
kilometers by 20% per unit of production versus
our 2010 baseline. We continue to makeprogress against this goal, with a major focus
on optimizing distribution routes and driving
increased use of multi-modal transportation.

In addition to optimizing our networks,
last year P&G announced an ambitious goal
to work across our transportation carriers toconvert up to 20% of our North America truck
loads to natural gas vehicles. One year into
the journey, we are making solid progress withapproximately 12% of our NA trucking volume
being awarded to natural-gas carriers. Most of
the loads are actively being hauled today using
compressed natural gas (CNG) trucks, with theremaining trucks to be online in late December
2014 when the final equipment is in place. This
12% conversion represents over 5.8 million
diesel gallon equivalents being converted tonatural-gas per year, reducing overall CO2
and particulate emissions.

One example of this is our raw pack material(RPM) optimization project being piloted inEurope. Typically, P&G’s primary focus is on theefficiency of our finished product (FP) shipments
while the distribution system for incoming raw
materials is left to the discretion of our suppliers.
Within a typical transportation lane, finishedproduct may be traveling in one direction while
RPM materials are traveling in the opposite
direction. Historically, we have looked for
optimization opportunities between FP and RPM
shipments, but typically on a limited lane-bylane basis. This new project takes a more holistic
approach, utilizing P&G’s modeling andsimulation tools to analyze both FP and RPM
shipments not only for specific lanes, but acrossa geographic region. This approach allowed theteam to partner with trucking and intermodal
companies, along with our material suppliers to
help eliminate empty truck miles and improvevehicle fill rates. This benefited the trucking
companies with more round-trip lanes whiledriving transportation efficiencies for P&G and
our material suppliers. Last year, this pilot project
was able to reduce empty truck miles in theregion by approximately 5%, reducing CO2 andcongestion in our communities while alsodelivering tangible transportation savings.

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Mehoopany Onsite CNG Filling Station
P&G has begun construction of a new over-the-road compressed natural gas(CNG) filling station at our Mehoopany, Pa., facility. This onsite filling station
will enable over 60 trucks per day to utilize lower-emission natural gas todeliver Bounty, Charmin, Pampers and other P&G products to the Northeast
market. This work, combined with strategic CNG lanes across the Midwest
and Southeast, have enabled P&G to award approximately 12% of our North
American transportation business to carriers with natural gas-operated trucks.

As P&G and others build momentum within
this space, more natural-gas filling stations
and more advanced trucking technologies
are becoming available, enabling broader
distribution lanes. P&G is also leaning inby strategically installing onsite CNG filling
stations at some of our high-volume sites or,in other cases, working with external CNG
companies as an anchor tenant for new
stations along key shipping lanes.

Mehoopany, Pa.,
CNG filling station,
progress as of 10/24/14

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Introduction

Water
P&G is committed to sustainable water
management. Our corporate water strategy
focuses on two key areas where we believe we
can have most immediate impact: water used byconsumers when using our products and waterused in our manufacturing processes.
As referenced in the introduction of this report,
P&G recently announced two new water goals:
1. Provide 1 billion consumers with accessto water-efficient products by 2020
For several of our product categories, theoverall Life Cycle Analysis shows that theconsumer use phase is often the mostimportant in terms of water consumption.
Therefore, providing consumers with productsthat allow them to achieve the same or better
performance while using less water, can havea major impact. To achieve our goal, we willcontinue efforts to develop water efficient
products that enable reduced water usage
without any tradeoffs for our consumers. We
will place an initial focus on categories that
require the most water in the use phase, suchas Fabric Care, Dish Care and Personal Care.
We will also seek to leverage partnerships
to help drive progress. For example, we are
already working with the CONSENSUS Research
Program in Ireland to study the impact ofwater-efficient hair and personal care products
on household water consumption. The
outcome will help inform where our productdevelopment efforts can best contribute tomore sustainable water consumption patterns.

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2. Reduce water used in P&G manufacturing
facilities by 20% per unit of production by
2020, with a specific focus on conservation
efforts at facilities located in water-stressedregions.
Water conservation at our global facilities has
been a focus for many years, and we haveachieved significant water savings as a result.
We have combined R&D, Engineering andManufacturing teams to develop water-saving
innovations around both cleaning/sanitizationand filtration/reuse. In addition, we have
implemented programs such as rigorous
benchmarking and reapplication to ensure goodideas and successes are traveling across theglobe and that our new sites are built with thebest available water-efficiency technologies.
We also continue our water reuse efforts withthe multi-disciplinary E4Water consortium. Thispartnership across academia and a wide range
of industries has been a key enabler for
qualifying new membrane technology to recycle
treated washwater back into our manufacturing
process. Initial testing was very successful, andthe first industrial-scale units are being built for
installation in summer 2015. To learn more
about the E4Water consortium, please visit:www.e4water.eu/

Water Consumption by GBU(Millions of cubic meters)
12

78.8

13

74.4

14

70.6
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Wastewater COD* Disposed by GBU(Thousands of metric tons)
12

19.9

13

17.7

14

19.4
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* Chemical oxygen demand.

Our new water goal will help us drive further
progress on reducing water consumption within
operations. To encourage filtration, recycling
and reuse, the scope of our goal will focus on
fresh water intake, which includes tap water,
ground water from site wells and surface water(e.g., from rivers, creeks, lakes).

P&G’s Taicang Plant was designed toinclude some of our most advanced
water recycling and reuse technologies

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Introduction

Water Risk Assessments
Because water is a local issue, we havedeveloped a Tiered Water Risk Assessment
process to help us focus our efforts in areas
where it matters most. This process was built
on methodologies and data developed by global
experts, including the World Resource Institute(WRI) and the World Wildlife Fund (WWF).
We have already put the methodology into
practice and are on track to complete the Tier 1
assessment by January 2015. Using results fromthe Tier 1 process, we will prioritize future
analysis on high-risk sites.

Stakeholder Engagement
Partnerships have been and will continue tobe a critical element in driving progress against
our goals. As mentioned before, we engage
with expert organizations such as E4Water,
CEFIC (EU Chemical Industry), Water Matters,
WBCSD (World Business Council for Sustainable
Development), WRI (member since 2010) andWWF. Both WRI and WWF have been key
partners in helping us develop our water risk
assessment process.
While our new goals will drive continued focus
on water conservation related to our plants andproducts, our P&G Children’s Safe Drinking Water
Program continues to be one of our major social
responsibility programs. You can read more aboutthat effort on page 45 of this report.

T o learn more about our Water Policy,
please see www.pg.com/en_US/
sustainability/policies_practices/water.
shtml

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P&G Water Risk Assessment Framework

1

Water Risk Screening
Identify risk level of sites based on:• Baseline Water Stress Score – WRI• Gross National Income per Capita – World Bank
• P&G Site Water Use per Year – P&G

ALL SITES SCREENED• Access to Water – WHO/UNICEF

2
3

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

PRIORITY SITES FROM 1

In-depth Site Water Analysis
Prioritize risks for mitigation and develop site specificsustainable water management plan
• GEMI Local Water tool or equivalent

PRIORITY SITES FROM 2

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Introduction

Renewable Resources
A key component of making our businesssustainable is ensuring that we have the rightmaterials and energy supply to continue ouroperations in the long term. This is why wefocus on renewable resources – because they
can be sustainably replenished over time.

Renewable Energy
In 2010, P&G announced a compelling vision to
power our plants with 100% renewable energy.
We understand that this may take decades toaccomplish, so we have put in place a shortterm goal to obtain 30% of our total energy
from renewable sources by 2020. We developed
aggressive strategies and are making progress
toward that goal. Over the last four years, wehave implemented:• Five onsite solar PV projects• An onsite wind project• An offsite wind purchase
Most recently, P&G is proud to announce that incollaboration with our utility partners in Poland,
we are now powering all four of our plants inthat country with 100% renewable electricity

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Environmental sustainability

primarily from hydroelectric sources. On
each of the above projects, our teams
have found innovative approaches to drive
both sustainability and cost savings, driving
reductions in our overall footprint while atthe same time creating financial savings forour shareholders.
At the end of FY 13/14, our renewableenergy use was approximately 8%. While weare proud of that progress, we recognize thoseresults are below our glidepath target of 12%(3% per year). Several factors contributed tothis, including long lead times for key projects
in our portfolio and the fact that historically
low natural-gas prices impacted the economic
feasibility of advancing some projects. However,
we continue to build strong partnerships withleading companies and university experts toprioritize technologies and projects that are both
economically and environmentally sustainable.
Going forward, we anticipate having a diversemix of renewable energy sources, both onsite
and offsite, that will help deliver progressagainst our goal.

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Partnering to Power Progress
We continue to look to leverage partnerships as much as we can to drive
progress efficiently and effectively. With that in mind, we joined forces with
the World Wildlife Fund, the World Resource Institute and several otherleading companies to launch the Renewable Energy Buyers Principles. The
intent of these principles is to open up new opportunities for collaboration
with utilities and energy suppliers to increase the overall use of renewableenergy. We view these principles as a powerful tool to unleash additional
onsite and offsite renewable energy partnership, accelerating P&G’s journey
toward powering our sites with 100% renewable energy. You can read more
about this work at the following website: www.worldwildlife.org/pages/
powering-businesses-on-renewable-energy

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Introduction

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Environmental sustainability

Renewable Materials
Four years ago we announced a goal of replacing
25% of our petroleum-derived raw materials
with renewable materials. We implemented
development programs and worked with external
partners, resulting in some innovative packaging
breakthroughs, including making some Gillette
packaging from bamboo and some Pantene
bottles from sugarcane. While we are proudof our efforts to date, one major challenge tocommercializing large volumes of renewablematerial replacements has been the ability to findcost-effective replacements at the scale we need.
In October 2014 we revised our renewablematerial goal to provide greater clarity andtransparency on the need for renewable
technologies to be economically viable andscalable. Our commitment to develop
technologies to replace our top petroleumbased raw materials with renewable materials
has not changed – we are simply acknowledging
that we can only integrate these materials into
our supply chain as cost and scale permit.

www.pg.com/sustainability

Ultimately, our core work continues – wewill have our teams, in collaboration with our
external partners, work to find ways to substituteour top petroleum-based raw materials withrenewable materials by 2020. Then, we will
work to implement them in fiscally responsible
ways – providing updates on our progress eachyear via our annual Sustainability Report.
We also remain committed to ensuring
renewable materials are carefully assessed
to ensure they are sourced and used in anenvironmentally sustainable way. Similar to thelast four years, we will continue to work with
our supply chain partners and external experts
in evaluating potential renewable material
replacements.

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Bioplastic Feedstock AllianceP&G has joined with seven other consumer brand companies and theWorld Wildlife Fund to the form the Bioplastic Feedstock Alliance (BFA)
to support the responsible development of plastics made from plantmaterial. The primary focus of BFA will be on guiding the responsible
selection and harvesting of feedstocks–such as sugarcane, corn, bulrush
and switchgrass – used to make plastics. To learn more about BFA,
please go to www.bioplasticfeedstockalliance.org

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Introduction

Sustainable Forestry
The world’s forests play a role in supporting
virtually all life on earth. The good news is thatthey are one of our most renewable resources.
However, in a world of increasing populationand economic well-being, the world’s forests
are under increasing pressure, especially in thetropical regions where deforestation and lossof high-conservation-value areas are alreadyoccurring.
Although we do not own or manage forests,
many of our products and packages are
dependent on raw materials from the forestbased supply chain. Therefore, we recognize thekey role we can play, through our procurement
practices, to ensure the sustainability of theworld’s forest resources. For example, P&G
and other members of the Consumer Goods
Forum have committed to help achieve zeronet deforestation in our supply chains by 2020.
At P&G we have identified three strategiccommodities where our sourcing practices
can have the greatest impact on ensuring
responsible use of the world’s forest resources:
wood pulp for tissue and absorbent hygiene
products, wood pulp used in paper packaging
and palm oil for our laundry and beauty products.
The supply chains for these materials are
significantly different, and as a result, we haveestablished focused programs for each one as
described on the following pages. Ultimately,
however, all of these programs are tied to ourcommitment to ensuring the sustainability of
the world’s forests.

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A Dedication and Commitment Spanning 45 Years
Over 45 years ago, P&G opened
its first pulp mill to support its
growing bath tissue and paper
towel businesses. That also is when
we began employing registeredforesters and actively managing
forest resources. These were building
blocks to the company’s responsible
fiber sourcing journey. While we soldour stand-alone pulp mills in 1992
and shut down our sulfite pulp mill at

our Mehoopany, Pa., manufacturingsite in 1999, sustainable forestry
remains a key component of ourpulp procurement commitments.
To ensure that we remain a leader inour commitments, we joined World
Wildlife Fund’s Global Forest & Trade
Network-North America program(GFTN-NA) in 2008. We adopted apreference for Forest StewardshipCouncil (FSC®)-certified fiber in 2009,“WWF commends Procter & Gamble
for exceeding its FSC goal for tissue
and towel products,” said Linda
Walker of WWF, who is director of
GFTN-NA. “Action by companies toincrease the volumes of FSC ®-certified
and recycled material in their supply
chains plays an integral role inensuring the world’s forests aremanaged sustainably. By meetingand exceeding its goal a year aheadof its commitment, Procter & Gamble
is demonstrating its ongoingdedication to the advancementof sustainable forestry.”“The Forest Stewardship Council
applauds Procter & Gamble’s
remarkable progress in FSC®-certified
fiber procurement for its tissue andtowel products,” said Corey Brinkema,
President of Forest StewardshipCouncil - US. “P&G is proof positivethat setting robust sustainability
goals and a commitment toimplementation can bringgreat results.”

Sustainable forestry wall display at the
Mehoopany, Pa., plant in the 1970s.

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and in 2012 worked with GFTN
to announce a target of having atleast 40% FSC®-certified fiber in our
tissue and towel products by 2015.
With the release of this Sustainability
Report, we are pleased to announce
that we have exceeded our 2015
goal one year ahead of schedule byachieving 54% FSC® certification for
the virgin fiber used in our tissue/
towel products.

54%
FSC ® certification
for tissue and towel
products

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Introduction

Responsible Forest Management in
Our Wood Pulp Supply Chains
There are a number of third-party forestry
certification systems that are now available
around the world. P&G relies on the use of
these systems within our supply chain
wherever possible:• Forest Stewardship Council (FSC – global)®

• Sustainable Forestry Initiative (SFI – North
America)• Programme for the Endorsement of Forest
Certification (PEFC – global)• Brazilian National Forestry Certification
Scheme (CERFLOR)• Canada’s National Standard for Sustainable
Forest Management (CSA-SFM)
We give preference to pulp from Forest
Stewardship Council (FSC®)-certified forests
when it is available and meets productperformance requirements and competitivemarket conditions. FSC has the world’s mostwidely recognized forest certification scheme
and is supported by internationally recognizedenvironmental nongovernmental organizations(NGOs).
P&G is committed to the following core
principles:• Ensuring the safety of forestry andmanufacturing operations for employees
and the environment.

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Environmental sustainability• Ensuring that wood is legally harvested andthat all legal requirements are met. P&G will
not knowingly use illegally sourced materials
in our products.
• Ensuring that our supply chain is incorporating
the principles of sustainable forest
management and continuous improvementin their own operations and that these areverified by independent forest and chain-ofcustody certification.
• Ensuring that trees are not harvested fromhigh-conservation-value forests. P&G supports
multi-stakeholder efforts to develop
information sources and tools that will help
suppliers identify these areas on their own
forestlands and in their procurement of wood
raw materials from third parties (e.g., www.
hcvnetwork.org).
• Ensuring that there is no sourcing fromgenetically modified trees.
• Ensuring that supplier practices reflect oursocial values and support of universal humanrights through work with local governments
and communities to improve the educational,
cultural, economic and social well-being of
those communities.
• Ensuring that our supply chain does notcontain fiber from conflict timber (timberthat was traded in a way that drives violent
armed conflict or threatens national orregional stability).

Social responsibility

Pulp for our Tissue/Towel andAbsorbent Hygiene Products
P&G purchases wood pulp for use in our
tissue/towel and absorbent hygiene products.
In 2012 we set two goals related to our useof wood pulp:• By 2015, 100% of the virgin wood fiberused in our tissue/towel and absorbent
hygiene products will be third party certified
to one of the aforementioned standards.
• By 2015, 40% of the virgin wood fiberused in our tissue/towel products will be
FSC® certified.
We will also utilize FSC®-controlled wood as partof a stepwise approach to progressively increase
the amount of pulp from FSC-certified sources.
We also require that all pulp come from sourcesthat have undergone an FSC® Controlled Wood
Risk Assessment.
This year, P&G exceeded our FSC® target one
year ahead of schedule by achieving 54% FSC®
certification for the virgin wood fiber used in
our tissue/towel products. We also achieved
an overall third-party certification level of 99%
across our tissue/towel and absorbent hygiene
products and are on target to hit our 2015
goal of 100% third-party certification. Additional
details on our pulp sourcing can be found in
the following tables at right.
Pulp Sources
In FY 13/14, P&G bought approximately 1.66
million air-dried metric tons of pulp for use in
our tissue/towel, diaper and feminine hygiene
products. The pulp was sourced from thefollowing regions:www.pg.com/sustainability

GRI index

Source Region/Country

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FY13/14

Latin America

34%

Canada30%

United States

36%

Total

100%

The third-party-certified fiber used as a percent
of supply are:Tissue/Towel and Absorbent Hygiene Products(1.66 million metric tons)
Third-Party Certification System% of Total

Forest Stewardship Council (FSC)

36

Sustainable Forestry Initiative (SFI)

61

Program for the Endorsement ofForest Certification (PEFC, includes
CSA and CERFLOR)

2

FSC-Controlled Wood

1

Total

100

Tissue/Towel Products (1.13 million metric tons)
Third-Party Certification System% of Total

Forest Stewardship Council (FSC)

54

Sustainable Forestry Initiative (SFI)

43

Program for the Endorsement ofForest Certification (PEFC, includes
CSA and CERFLOR)

3

Total

100
F or more information on FSC®
Controlled Wood Assessments andtheir role in sustainable forestry, visit:www.fsc.org
F or more information on World Wildlife
Fund’s Global Forest & Trade NetworkNorth America program please visit:www.worldwildlife.org/gftn-na
 ur policy on Wood Pulp ProcurementO
can be found at the following link:
www.pg.com/en_US/sustainability/
policies_practices/woodpulp.shtml

Contents

Introduction

Paper Packaging
P&G continually strives to optimize the designof our packaging to use the minimum amountand type of material that will ensure adequate
protection, delivery and safe use of our
products. As part of our overall efforts on
packaging stewardship, we strive to identify
source reduction opportunities to decrease
overall material usage and to use recycled
paper when it offers the best option to meet
performance requirements and competitivemarket conditions.

2020 Goals chart

P&G profile

Environmental sustainability

Our paper-based packaging is derived
from wood fiber and, as a result, we have a
responsibility through our procurement practices
to ensure the wood fiber in our packaging has
been responsibly sourced. P&G has made a
specific commitment that by 2020, 100% of ourpaper packaging will contain either recycled or
third-party-certified virgin content. Over the lastyear, we have expanded our efforts to collectdata from our suppliers to assess progressagainst this goal, and more important, todevelop action plans to close any gaps. This
year, we have received data from over 90 major
suppliers that represent approximately 90% of
our global paper packaging spend. This data,
which were self-reported by our suppliers, aresummarized in the following tables:

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Total Metric Tons Reported by Paper Packaging Suppliers surveyed in FY 13/14: ~ 990,000% Recycled% Virgin% of Virgin Fiber That
Was Third-Party Certified% of Total Paper Packaging That Was
Recycled or Third-Party-Certified Virgin

77

23

82

96

Third-Party-Certified Virgin Fiber% of Total*

Sustainable Forestry Initiative (SFI)58

Forest Stewardship Council (FSC)

33

Program for the Endorsement ofForest Certification (PEFC, includes
CSA and CERFLOR)

10*Approximate values – may not add to 100
due to rounding.

Over the course of the next year, we plan
to focus our efforts in the following areas:• Close gaps for virgin fiber that was not
third-party certified. This year, 96% of thevolume reported by our suppliers was either
recycled or third-party-certified virgin content.
That means 4% of the reported volume wasvirgin material that was not third-party
certified. We will place a focus on closingthat gap.
• Continue to expand data collection efforts
to cover a greater percentage of our total
packaging volume. The data we collected thisyear covered materials procured directly by
P&G. Next year, we will begin to expand
coverage to include contract manufacturing
and custom packaging operations.

www.pg.com/sustainability

Contents

Introduction

2020 Goals chart

Palm Oil
Palm oil is an important and versatile vegetable oil that is used
as a raw material by both food and non-food industries. In someregions of the world, the rapid expansion of palm oil production
has threatened environmentally sensitive areas of tropical forestsand peat lands and has resulted in some incidents where therights of workers and indigenous peoples have been infringed.
P&G uses relatively little palm oil, but we do use a byproductof palm oil production called palm kernel oil. We are committed
to ensuring that our sourcing of palm oil, palm kernel oil andderivatives does not contribute to deforestation and respects
the rights of workers and indigenous peoples. P&G is a memberof the Roundtable on Sustainable Palm Oil (RSPO), and wecontinue to support RSPO standards as a key mechanism todrive responsible palm practices across the industry. Given thecontinued pressure on tropical forests and peat lands, in April
2014 we announced that we would take additional steps beyond
RSPO certification to confirm the palm-derived materials wepurchase are not contributing to deforestation.
Our Commitments:
1. Develop a traceable supply chain
2. Ensure our suppliers meet RSPO criteria and have policies andprocedures in place to ensure:• No development of high conservation value (HCV) areasand high carbon stock (HCS) forests.
• No new development of peat lands regardless of depth.
• No burning to clear land for new development or
replanting.
• Compliance with P&G’s existing Sustainability Guidelines
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.

www.pg.com/sustainability

P&G profile

Environmental sustainability

Social responsibility

3. Work with suppliers, industry peers, NGOs, academic
experts and other stakeholders to promote consistent industry
standards and practices in palm oil sourcing with the aim ofachieving full traceability and eliminating deforestation.
Our Actions:
1. Palm Oil and Palm Oil Fractions
The following actions will apply to our purchases of palm oiland palm oil fractions:• Establish traceability to palm oil mills by
December 31, 2015.
• Require suppliers to submit plans by
December 31, 2015, to demonstrate how
they will ensure no deforestation in their
supply chain by 2020.
• As we advance progress against the goals above,
we also will continue to purchase 100% RSPO
certified palm oil.
2. Palm Kernel Oil
The following actions will apply to our purchase of palm
kernel oil:
• Establish traceability to palm kernel oil mills by
December 31, 2015.
• Invest in and work with palm kernel oil suppliers,
and the smallholders who supply them, with the aimof improving both practices and livelihoods to establish
zero deforestation in our supply chain by 2020.
3. Palm Oil Derivatives and Palm Kernel Oil Derivatives

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kernel oil supply chain. To help advance progress, during
FY 13/14, we announced a collaboration with the Malaysia
Institute for Supply Chain Innovation (MISI – part of the MIT
Supply Chain and Logistics Excellence Network) to establish aproject to improve the practices, productivity and livelihoods ofthe small farmers in our palm kernel oil supply chain. The initial
focus of this project will be to map our largest PKO supply chain
and develop a model that will ultimately enable RSPO certificationand supply chain practice improvements. To help guide this effort,
early in FY 14/15, we convened an expert panel consisting ofrepresentatives from NGOs, academia and the palm oil supply
chain to evaluate and refine our project plans. We will continue
to report progress on this effort throughout FY 14/15.
In addition to the MISI project, we will continue our ongoing
efforts with our broader supply chain to drive progress against
our new commitments. This included a supplier summit earlyin FY 14/15 to ensure key suppliers understood our new
commitments and supply chain expectations.
We also continue to drive progress on RSPO certification.
During FY 13/14, 100% of our palm oil and palm oil fractions
were RSPO certified via the purchase of Green Palm Certificates.
37% of our Palm Kernel Oil was RSPO certified via a mix ofGreen Palm Certificates and Mass Balance Oil. 37% of derivatives(palm oil and palm kernel oil) was RSPO certified via Green Palm
Certificates. During FY 14/15 we will continue to maintain 100%
RSPO certification for palm oil and palm oil fractions and will seek
to increase the percentage of palm oil, palm oil fractions, PKO
and derivatives that are RSPO physically certified oil.
Tonnage of Palm Oil and Palm Kernel Oil Purchased in FY 13/14:
Volume (metric tons)% of Total

85,58116

Palm Kernel Oil

318,068

60

Update on Progress

PO and PKO Derivatives

128,945

24

PKO represents our largest and most complex supply chain.
We have achieved 80% of our palm kernel oil volume being
sourced from known palm kernel crushing mills in our supply
chain network. Ultimately, we want to trace back to the source
plantations, including the thousands of small farmers in our palm

Total

532,594100• Require suppliers to put forward time-bound plans by
end of 2016 to demonstrate how they will ensure no
deforestation in their supply chains.

Material Type

Palm Oil and PO Fractions

T o learn more about our efforts on palm oil, please go to:www.pg.com/en_US/sustainability/policies_practices/
palmoil.shtml

Contents

Introduction

Worth from Waste
We believe that all materials have value,even if they have traditionally been defined aswaste and disposed as trash. At the end oflife – whether that’s after a product has beenused or after a material has gone through ourmanufacturing process – we believe there is a
way to create worth from what’s left – throughreuse, recycling, composting or converting
waste to energy. The content in this section
includes our work to reduce our manufacturing
waste and to pilot ways we can find worth inconsumer waste.

2020 Goals chart

P&G profile

Environmental sustainability

Manufacturing Waste
We continue to make excellent progress toward
our manufacturing waste reduction goals, tothe point that we have exceeded our target wellahead of schedule. Our 2020 goal is to ensure
manufacturing waste to landfill is less than 0.5%
of input materials. In FY 13/14, we reduced
manufacturing waste to 0.4% of input materials,
meaning 99.6% of all input materials were
beneficially used in products or via recycling,reuse or energy conversion of waste materials.
This phenomenal progress is a direct result of
the internal and external partnerships being
lead by our Global Asset Recovery & Purchases
team (GARP), our manufacturing plants, ourdistribution centers and our recycling vendors,
which all continue to find new, innovative andcost-effective solutions for our manufacturing
waste. As we look to the future, we willcontinue to look for stretching ways tochallenge our internal teams.

Social responsibility

Non-Hazardous Waste by GBU

Waste Disposed(Percent reduction versus 2010, per unit of production)(Thousands of metric tons)

12

-46%

12

13

-55%

13

14

-70%

(Thousands of metric tons)
12

162
132

14

Disposed Waste by GBU

79
Technical Centers

Distribution Centers

Health Care

BeautyGrooming

Baby, Feminine andFamily Care

Fabric and Home Care

207

13

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GRI index

172

14

Hazardous Waste by GBU

117(Thousands of metric tons)

Technical Centers

Distribution Centers

Health Care

BeautyGrooming
Fabric and Home Care

Baby, Feminine andFamily Care

12

14

13

12

14

6
Technical Centers

Distribution Centers

Health Care

BeautyGrooming

Baby, Feminine andFamily Care

Fabric and Home Care

0.4

% of input

materials

In FY 13/14, we reduced
manufacturing waste to landfill
to 0.4% of input materials –exceeding our 2020 goal six
years ahead of schedule

Incoming Material Utilization(% Beneficially Used)

99.60%

99.6%

99.5%

GOAL

99.37%

99.4%

99.3%

99.23%

99.2%
11

www.pg.com/sustainability

12

13

Contents

Introduction

2020 Goals chart

P&G profile

Environmental sustainability

Zero Manufacturing
Waste to Landfill
Over the past three years, P&G has increased
the number of zero manufacturing waste tolandfill (ZMWTL) sites from 10% to nearly
50% of manufacturing sites globally. We now
have over 70 sites that have achieved ZMWTL
criteria. During the last fiscal year, we alsoreached several country/regional milestones,
with all facilities in Germany and Poland and all
manufacturing sites in Japan reaching ZMWTL.
The teams in these countries are driving
breakthrough solutions and setting a high bar
for their peer sites to follow.
One example of innovative thinking to drive
progress is reuse of scrap absorbent materials
from our Feminine Care plant in Belleville,
Canada. One of our external partners blends our
high-tech absorbents with other raw materials
that make up emergency spill containment andcontrol products. Last year, the plant was called
upon to help provide additional material aboveand beyond our typical supply to help the local
community with emergency response and oilcleanup after the Lac-Megantic train disaster.

70
zero
manufacturing
waste to landfill
sitesT o learn more about how we define
zero manufacturing waste to landfill,please see: www.pg.com/en_US/
downloads/sustainability/reports/
ZeroManufacturingWaste.pdf.

Spill containment materials
manufactured using recycled materials
from our site in Belleville, Canada

www.pg.com/sustainability

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Contents

Introduction

2020 Goals chart

P&G profile

Environmental sustainability

Consumer Waste

Closed Loop FundWe continue to evaluate consumer waste
reduction pilot opportunities in both developed
and developing regions. One of our key pilot
programs is our Waste to Worth project in thePhilippines. Waste to Worth is an effort focusedon developing an integrated, profitable andreplicable waste management business modelthat extracts value from waste. In partnershipwith the Asian Development Bank, ourrecommended owner/operator (SURE Global
W2Wi) has completed base feasibility studies in
the lead pilot city and begun negotiations withmunicipal officials to construct a treatment
facility there. We have further initiated feasibility
studies for a second site in which a private
landfill in the Philippines (currently receiving
waste from 14 cities) would convert to a Waste
to Worth facility. Given strong support from thenational government, the National Solid Waste
Management Commission and the private
investment community, the Waste to Worthmodel is already beginning to replicate beyond
the initial pilots with feasibility studies initiatedat sites encompassing waste from eight
additional cities.

As highlighted earlier in this report page 8,
during FY 13/14 P&G also became a founding
member of the Closed Loop Fund. The Closed
Loop Fund has been formed to provide
municipalities and private firms engaged inpublic-private partnerships access to capital at
below-market rates in order to spur investments
in municipal recycling programs. The goal of theFund is to divert valuable raw materials fromlandfill by helping to provide 100% of U.S.
consumers access to recycling where and when
they need it. In turn, this should help drive thefollowing outcomes:• Create economic value for cities by reducing
landfill disposal fees and increasing revenue
from the sale of recyclable commodities.
• Create local jobs and community engagement.
• Increase supply and use of affordable
post-consumer recycled (PCR) materials in
consumer goods.
• Preserve our natural resources.
• Facilitate innovative private sector investment
to support recycling.
T o learn more about the
Closed Loop Fund, please go to:www.closedloopfund.com

www.pg.com/sustainability

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Contents

Introduction

2020 Goals chart

P&G profile

Environmental sustainability

Social responsibility

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GRI index

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

2014 Global Business Unit Detail (1) (absolute units x 1,000)

2014

2013

2012

Baby, Feminineand Family Care

BeautyFabric andHome Care

Grooming

Health Care

Technical
Centers

Distribution
Centers

28,331

26,57025,618

5,399

2,023

19,075

806

1,028

N/A

N/A

859

592

618

Production (metric tons)

Product Shipped (2)Raw Materials from Recycled Sources(3)

Waste (metric tons)

Generated Waste

909

933

977

351

115

290

40

72

13

29

Percent Recycled / Reused Waste

87%

82%

79%

93%

73%

87%

97%

86%

69%

83%

Waste Disposed

117

172

207

24.70

20.19

52.01

1.08

10.02

4.09

4.77

Disposed Waste (metric tons)

Solid Waste — Non-Hazardous

79

132

161

13.08

16.22

33.53

0.16

9.14

2.92

4.35

Solid Waste — Hazardous

6

12

14

0.20

0.74

3.84

0.06

0.06

0.24

0.41

Effluents

19

18

20

4.45

2.72

10.66

0.58

0.53

0.41

N/A

13

11

12

6.97

0.51

3.97

0.28

0.29

0.51

N/A

Energy Consumption (gigajoules)

73,17772,406

72,76245,3003,786

15,663

2,621

2,669

2,577

563

Direct Greenhouse Gas Emissions (metric tons)

2,685

2,521

2,576

1,806

115

471

69

79

128

18

(excluding water) (4)Air Emissions (5)Other

Total Greenhouse Gas Emissions (metric tons)

5,353

5,503

5,574

2,890

386

1,269

214

248

295

52

Water Consumption (cubic meters)

70,61074,41778,76043,0206,160

16,439

1,355

1,480

2,156

N/A

3.67

2.37

2.19

0.008

0.020

3.294

0.346

0.001

N/A

N/A

SARA Releases (metric tons) (6)	Numbers listed in italics have been updated since the 2013 report was issued. Updates were generally minor corrections based on updated totals. For reference, the data that was originally reported in 2013
can be accessed via our 2013 sustainability report which is available at www.pg.com/sustainability.
1 metric ton = 1,000 kg = 2,205 lbs.
(1) For 2014, Baby, Feminine and Family Care includes Baby Care, Feminine Care and Family Care. Beauty includes Beauty Care, Prestige, Salon Professional and Personal Beauty Care. Fabric and Home Care includes Fabric Care, Home Care, Batteries and Chemicals. Grooming includes
Blades and Razors and Devices. Health Care includes Personal Health Care, Oral Care and Pet Care. Technical Centers includes each of the technical and research centers that support the business units. Distribution Centers includes facilities that distribute finished product. Numbers do notinclude production from contract manufacturing operations.
(2) Estimated from shipment figures(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) Releases defined in the U.S. Superfund Amendments and Reauthorization Act (SARA) by the U.S. Environmental Protection Agency

www.pg.com/sustainability

Contents

Introduction

2020 Goals chart

P&G profile

Environmental sustainability

SocialResponsibility
Doing the right thing is thefoundation of P&G’s Purpose,
Values and Principles.
It is naturally woven into the way wework every day – paying competitive
wages, working consistently with our
retailers and suppliers, preventing
conflicts of interest, ensuringconsumer privacy and maintaining
financial stewardship. This approachto business is at the heart of all we
do at P&G.

Doing the right thing also includes
investing in the communities in which
we live, work and serve. At its core,
P&G Social Responsibility programs
aim to improve lives by providing
superior performing products andbrands where and when they areneeded most and perform at theirbest, responding to disasters andother extreme needs.
In this section, we provide perspective
on our Social Responsibility Programs,
as well as our policies and practices.

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Contents

Introduction

SocialResponsibility Programs

Consistent with P&G’s strengths,
we focus our work on providing
the Comforts of Home andimproving Health & Hygiene
for people around the world.
Through this work, we areleveraging the Company’s corecompetencies to address criticalsocial needs.

2020 Goals chart

P&G profile

Environmental sustainability

Comforts of Home
Habitat for Humanity
Over the course of the year, P&G teams with
Habitat for Humanity have built or cleaned morethan 30 homes around the world. The impact ofthat work comes to life when we meet thepeople who live in those homes.
One person we met this year was Mr. Jaras,
who lived in the Prachinburi Province ofThailand. His community still had not recoveredfrom the brutal flooding that ripped throughscores of homes two years earlier, and the rainyseason was on its way again. Mr. Jaras, 50, waspartially paralyzed from a recent motorcycle
accident and could not repair the gaping holes
in his roof, floor and walls.
In partnership with Habitat for Humanity, P&G
employees came together to build a new home
for Mr. Jaras, with a solid floor, strong roof andwheelchair. P&G teams also brought theirtraditional “welcome home” gift basket full of
P&G brands such as Gillette, Safeguard, Oral-B
and Pantene to provide additional comforts ofhome.
”He never stopped smiling. As difficult as
life was for him, he remained optimistic,”
said P&G Corporate Contributions Senior
Manager Brian Sasson. “We hope itchanged his life. We know it did ours.”

10-year partnershipwith Habitat for Humanity

3,000 P&G employees
who have volunteered to help

30 projects
we’ve been a part of around the world

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Disaster Relief
In November 2013, when the strongest storm
ever to hit land whipped across the Philippines,
P&G teams around the globe responded.
Pampers, Safeguard, Duracell, Pantene andmore than a dozen other brands joined together
to help the 16 million people impacted and 4
million people left homeless. Together, P&G
employees and our brands sent more than $3
million in personal care supplies, cash and P&G
Purifier of Water packets to help.
P&G also sent products and cash donations to
help with more than 20 major disasters, including
massive flooding in the Balkans; devastating
tornadoes, flash floods and mudslides in the U.S.;
wildfires in Chile; and earthquakes in Pakistan.

Here is a look at just some of the work P&G
did to improve lives in times of disaster:
July 2013: In India, thousands of people were
impacted and homes devastated by floodingthat hit with fury in summer 2013. P&G
responded by providing P&G Purifier of Water
packets and products such as Whisper, Oral-B,
Tide and Pantene.
September 2013: When flash flooding hit
Boulder, Colo., and surrounding areas, P&G
distributed more than 4,000 personal care kitsalong with products such as Charmin, Bounty,
Pampers and Dawn. Tide Loads of Hope also
helped by providing clean laundry for hundredsof families.

October 2013: When floods also hit Mexico,
P&G sent 2.5 million P&G Purifier of Water
packets and 6,000 disaster relief products kits.
May 2014: Deadly flooding in the Balkans
impacted 1.6 million people in Bosnia alone.
P&G helped with product donations totaling$80,000 and a grant to rebuild 10 homes
and a school.

Contents

Introduction

Health and HygieneChildren’s Safe Drinking Water
This year, the P&G Children’s Safe Drinking
Water Program provided its 7 billionth liter ofclean drinking water for children and families
in need and helped save an estimated 42,000
lives.
The program also:• Expanded operations in 17 countries,
including Myanmar, Vietnam and India,
and launched in Brazil.
• Delivered the 7 billionth liter to a familyof six through a new community program
in southeastern Brazil with NGO partner
ChildFund.
• Developed and expanded a shopper-facing
promotion with Wal-Mart and its UK ASDA
stores, sharing directly with consumers theneed for clean drinking water. Still growing,
the program already has reached morethan 50 million shoppers and raised funds
to deliver an additional 80 million days ofclean drinking water.

www.pg.com/sustainability

2020 Goals chart

P&G profile

Environmental sustainability

Helping Through Our Brands
Always reached an additional 300,000 girls
through its Protecting Futures Program,providing girls age 12-14 with education on
good personal hygiene, puberty, menstruationand personal care. The program, started in
2006, is aimed at helping girls attend classes
during their periods, and thus stay in school.
The program has expanded from Africa to theMiddle East.
Pampers – as part of its commitment to happy,
healthy development of babies – created thePampers Mobile Clinic Program, providing freebasic health checks, health talks and products tomothers and their babies. This year, the clinics
mark their 10th anniversary, reaching more than
1.8 million mothers and children in Nigeria,
Kenya, Uganda and Pakistan. Also, the Pampers
UNICEF vaccine program marked another yearof working to eliminate neonatal tetanus,a preventable disease that claims the life of
58,000 babies in developing countries eachyear. The campaign, 1 pack = 1 vaccine, hasdonated more than 300 million vaccines andhelped to eliminate the disease in 15 countries.

Social responsibility

Safeguard’s Clean Hands Healthy Kids
Campaign marked its 15th year of teaching
hygiene to prevent childhood illness,absenteeism and even death. The program waslaunched in China based on global research thatsoap and water washing can prevent nearly 4
million children a year from dying before their
5th birthday. Today, the program is in schools
across China, the Philippines, Pakistan and
Mexico, reaching 4.5 million students a year. In
many locations, the brand has helped build
hand-washing and sanitation stations forchildren.
Pantene launched a hair-donation program
called Beautiful Lengths eight years ago. This
cause encourages youths, adults and evencelebrities to grow, cut and donate their healthy
hair to help provide free wigs to women in
need. Pantene funds the creation of thesewigs for cancer patients, and through theirpartnership with the American Cancer Society,distributes them free of charge to female cancer
patients. To date, the program has collected
550,000 ponytail donations, helping make morethan 34,000 real-hair wigs across the U.S. and in
Canada, Australia and Israel in partnership withlocal cancer associations.

GRI index

CSDW by the Numbers+140
Global partners+7.5 billion
Liters to date

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Introduction

2020 Goals chart

P&G profile

Environmental sustainability

Social Responsibility
Policies and Practices
Responsible business practices areembedded within P&G’s culture,
beginning with our Purposes,
Values and Principles.
We believe the interests of thecompany and the individual are
inseparable. We recognize theimportant responsibility we haveto operate ethically, in accordancewith the law and with respect for
all individuals. The following pages
share our approach to responsible
operations within the area of social
responsibility.

Policies and Practices• Human Rights• Human Resources• Diversity & Inclusion• Global Medical• Worldwide Health, Safety
and Environment Systems• Compliance with Laws
and Regulations• Notices of Violation (NOVs)• SARA 313 Releases

www.pg.com/sustainability• Stakeholder Engagement• Advertising and Promoting
to Consumers Appropriately• Eliminating Research
Involving Animals – Our
Latest Contributions• Sustainability Guidelines forExternal Business Partners• Supplier Diversity• Personal Information Privacy

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Contents

Introduction

Human Rights
Last year, we obtained top management
approval to deploy our Human Rights Policy
Statement. Our Statement demonstrates our
support for the U.N. Guiding Principles for
Business and Human Rights, which respects
and honors the principles of internationallyrecognized human rights consisting of thoserights 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 & Political Rights) and the principles
concerning fundamental rights as set out
in the International Labor Organization (ILO)
Declaration on Fundamental Principles andRights at Work.
Respect for human rights is implemented
through our Policies, Practices and Due Diligence
Systems (e.g., Employee Rights; Employee
Benefits; Worldwide Health, Safety andEnvironment Systems; Health Services;
Worldwide Business Conduct Manual;
Sustainability Guidelines for External Business
Partners; Social Responsibility programming).
For example, this past year, we renewed
Sustainability Guidelines for External Business
Partners to emphasize our respect for humanrights by establishing clear expectations torespect internationally recognized human rights,
comply with all applicable laws, and conductbusiness ethically and responsibly. Because
P&G’s external business partners are expected to
conduct their business with P&G in a way that
respects the Human Rights Policy Statement,
should P&G become aware of an adverse
human rights impact from a external business
partner’s operation, we would be able toeffectively engage to be part of the solution towww.pg.com/sustainability

2020 Goals chart

P&G profile

Environmental sustainability

address the issue or dilemma, including seeking
to prevent or mitigate the adverse impact.
We will continue to update our risk-based
auditing process of our external business
partners, as needed, using third-party riskmanagement tools (e.g., Maplecroft humanrights map) to enable the identification of
in-scope external business partners andremediation of non-compliance in a timely
manner. We will also continue to raiseawareness of our Human Rights Policy
Statement through internal training programs.
P&G has continued its involvement in a numberof human rights and other related social
responsibility initiatives:
1. Continued to monitor the work of the
U.N. Working Group on Business and Human
Rights.
2. Member of U.N. Global Corporate
Community of Practice.
3. Member of U.S. Council for International
Business.
4. Participated in the annual Human Rights
seminar, sponsored by The Coca-Cola
Company.
5. Continued leading the Human Rights Work
Stream effort within AIM-Progress.
 ur Human Rights policy can beOdownloaded at: www.pgsupplier.com/
en/_downloads/Human_Rights_Policy_
Statement.pdf

Social responsibility

Human Resources
Human Resources ensures that P&G has
the employees, organizational design andwork culture to deliver business productivity
and to continually improve consumer,
employee and shareholder value. They
provide recruiting, training, development,
diversity, benefits and compensation
coordination for the Company.
It is the Company’s intent to develop all
employees to their full potential. To achieve thisgoal, the following support systems are in place:• Career discussions, performance appraisals,
assignment plans, transfer and promotion
plans

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potential. We will not tolerate harassmentof anyone by anyone – including employees,
suppliers, customers, contractors and agencies.
Every employee is expected to be proactive inensuring that the work environment is free fromharassment of any kind. Managers of others are
responsible for setting clear expectations for
acceptable behavior in the workplace.
Wages
P&G supports paying employees a competitive
wage, as benchmarked against other leading
companies. Consistent with our principle ofvaluing personal contribution and mastery, we
provide employees the opportunity to develop
their skills and capabilities to enhance theirability to succeed in their career, consistent
with the needs of the business.

• Informal network support groups• Mentoring to provide informal support andguidance, in addition to coaching and training
provided by each employee’s direct manager
Employee Privacy
Procter & Gamble is committed to maintaining
the principles of integrity and trust with respect
to our employees’ privacy. We will only collectpersonal information about our employees
where it is necessary to carry out legitimate
business objectives and to provide employee
services. Access to employee data will be limited
to only those who have a legitimate businessneed or to fulfill a legal requirement.
Harassment Policy
P&G is committed to providing a harassmentfree work environment. This is the right thing to
do not only from a social perspective, but also
from a business perspective. It enables ourdiverse workforce to contribute to its highest

Benefits
P&G is a recognized leader in employee benefits.
The Company’s benefits have been developed tohelp protect the financial security of employees.
These benefits include comprehensive coveragefor health care, vacation and holiday time, andother work/family balance benefits, including
flextime, child care leave and less-than-full-timeschedules.

Contents

Introduction

Diversity & Inclusion
Diversity & Inclusion has always been a part ofour DNA and all we do. It is part of our Purpose,
Values and Principles and critical to businessgrowth. And as we continue on our journey, we
have become more deliberate with our diversity
efforts to ensure that inclusion is a key focus
area. And we want to be recognized as a
Global Leader for Diversity and Inclusion.
As a Company, our business model is built on
and driven by consumers. Consumers are at theheart of everything we do. We cannot create
brands and products to improve the lives of theworld’s consumers unless we understand andvalue the diversity of those we serve and those
we work with.
To do so, we have a mission to ensure Everyone
Valued, Everyone Included, Everyone Performingat Their Peak.®
We strive to develop a workforce that reflects
the markets and consumers we serve and to
fully value and leverage their experiences,insights and talents. And we are respectful of all
employees regardless of race, gender, color,religion, national origin, age, sexual orientation,
gender identity and expression, disability, or any
other non-job-related personal characteristic.

www.pg.com/sustainability

2020 Goals chart

P&G profile

Environmental sustainability

Diverse Talent Throughout
P&G is a build-from-within Company. Just as
our consumers are global and diverse, so are our
employees. By design, we ensure that leadershiphas broad, global perspectives. We recruit top
talent from diverse backgrounds and cultures
around the world. Our employees need toreflect the diverse markets and consumers weserve. P&G employees represent more than 140
nationalities worldwide, and we have the mostglobally diverse and experienced leadershipteam in the Company’s history.

Trusting, Open andInclusive Culture
At the core of our strategy, we want to foster aculture of inclusion so that everyone is valued,
included and performing at their peak. To
support our diverse and global workforce, wehave seven corporate affinity groups. P&G’s
affinity groups offer an internal forum for
employees to connect and build a strong senseof community as well have the opportunity to
be in service to the Company to deliver betterbusiness results. Affinity groups also aim toensure we attract, develop and maintain adiverse workforce.
Structurally, each group is sponsored by a seniorleader in the Company and regularly meets withexecutive leadership on key areas andopportunities. Additionally, there are also
numerous grassroots employee resource groups
throughout the Company, representing a large
variety of diverse interests throughout our entire
employee population.

Social responsibility

P&G’s affinity groups began in the early 1960s
and have continually evolved, formalizing in the
1990s, and continuing on a journey to help P&G
further foster a culture of high inclusivity.
We want to foster a culture of inclusion so thateveryone is valued, included and performing attheir peak.

Embedded in Our Culture
for Lasting Change
Diversity & Inclusion capabilities aim to fosterand grow an open and inclusive culture througha blended learning approach (classroom,
webinars, assessment tools and employee
interest groups). Topics include flexibility, culturalcompetency, affinity (people with disabilities,
gender and lesbian/gay/bisexual/transgender),generations, and understanding differences inworking and thinking styles. Understanding
differences enables employees to build
collaborative diverse relationships to
successfully drive business growth.
Foundational Diversity & Inclusion capability
focuses on key concepts such as microinequities,
unconscious bias, benefits in leveraging diversity
and intent versus impact on others. By
understanding these types of differences, itenables our employees to be in touch and build
collaborative diverse relationships so that we
can all successfully grow our business together.

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Contents

Introduction

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Environmental sustainability

Social responsibility

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Diversity Metrics

External Recognition

P&G continues to focus on diversity as a global strategy and expects its workforce to become
increasingly diverse, enabling us to serve more of the world’s consumers. Global data on enrollment
by gender is shown in the following table:

P&G’s commitment to creating a diverse workplace has been recognized by Diversity Inc., including
a #7 ranking on its Top 50 Companies for Diversity and a #6 ranking on its Top Ten Companies for
Global Diversity.

Global Enrollment

Working Mother named P&G among the Top 5 Best Companies for Multicultural Women and one of
its Working Mother 100 Best Companies.

2014

2013

2012

% FemaleManagement

43.9

43.6

43.0

All Other Employees (1)

35.7

35.9

36.9

2014

2013

2012

Management

24.2

24.0

23.9

Non-Management (1)

18.4

18.0

18.1

Management

42.0

42.0

41.7

Non-Management (1)

35.9

36.0

38.3

% Minorities% Female(1) Administrative, Technical and Plant Technicianswww.pg.com/sustainability

The Human Rights Campaign (HRC) has recognized P&G as among a select group of companies
scoring a perfect 100 on the Human Rights Campaign’s Corporate Equality Index.
F or additional information on our Diversity & Inclusion efforts,
please see our Diversity & Inclusion Annual Report, available at:www.pg.com/en_US/company/purpose_people/diversity_inclusion.shtml

The percentages of minority and female employees in the United States are shownin the following table:
U.S. Enrollment

For the fourth consecutive year, the National Association for Female Executives recognized P&G as
one of the Top 10 Companies for Executive Women.

Contents

Introduction

Global Medical
We touch and improve the lives of ouremployees with focused delivery of our five
Global Medical Priorities.
The P&G Medical vision “Healthy People,
Healthy Business” reflects the importance of
the wellness, productivity and innovativenessof employees. Our global Employee Healthand Wellness Policy insures that we deliver:• The same corporate health and wellness
standards at all P&G locations consistently
around the world, assuring that sites provide
employees with the appropriate level ofoccupational health assurance programs
and services.

2020 Goals chart• Compliance with related laws and regulations
and share this expectation with all of ourbusiness partners.
• A culture of health and actively involve
employees in protecting and promoting theirown health and wellness by providing highquality health services and programs such as
Vibrant Living.
• WorkLife Solutions and Employee Assistance
Programs (EAP) to support employees andtheir families.

www.pg.com/sustainability

Environmental sustainability

During the past year, Global Medical deliveredin times of regional crisis, assisting our
employees and local health providers withmedical guidance, supplies and support.
Our programs are making a difference. Our P&G
Health Services/Vibrant Living Health Centerssites worldwide had over 373,000 visits byemployees in the past fiscal year. Over the last
four years, we have seen an annual increase inemployee visits to our Health Centers sites.
Many of these employee visits are proactive,
including use of preventive health services suchas travel health consultations, influenza
immunizations, and personal health andwellness consultations.
Vibrant Living Health Center Visits
11• Comprehensive and effective emergency carefor our employees, onsite contractors andvisitors at all our facilities.

P&G profile

12

250,000
336,000

13

364,000

14

373,000

Employees who utilized Health Services or onsite
Health Programs reported better personal
well-being scores of 12 percentage points or
higher compared to those not using these
services and programs as measured by the 2014
P&G Employee Survey. Also, employees who
utilized WorkLife Solutions and Employee
Assistance Programs had personal well-beingscores of 13 percentage points higher thanthose who did not use these services.

Social responsibility

Since P&G is a principles-driven company,
the following Global Medical Priorities drive
all of our health systems worldwide:
1. Save a Life (Protect Our People)
2. Obey the Law (Protect Company Reputation)
3. Protect Key Technologies(Protect Brand Integrity)
4. Enhance Speed to Market (Support
Emerging Technologies and New
Business Development)
5. Inspire Health and Wellness (Vibrant Living,
Travel Medicine Support, Global WorkLife
Solutions and EAP Programs

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GRI index

We ensure consistent global delivery ofhigh-quality health systems via our Health
Systems Key Elements (HSKE) site audit process.
HSKE defines the corporate governance, country
legal and clinical governance standards andrequirements for our health systems worldwide.
Last year, we renewed and updated all standard
operating procedures and added standards andrequirements to build strong customer focus
into our services. This year, successful
deployment of the new HSKE audit tool wasdelivered through a comprehensive training
platform, which included global, regional andsite trainings; monthly global newsletter updates
addressing just in time questions; and the first
medical qualification program of 30 auditors,
who then conducted over 200 globallycalibrated audits.
GLOBAL MEDICAL SYSTEMS
Save aLife

Obey
the Law

Protect
Key Technologies

Enhance
Speed toMarketEmployee-centered Care
Vibrant Living Health Centers

InspireHealth andWellness

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Introduction

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Environmental sustainability

Social responsibility

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GRI index

P&G Vibrant Living

Highlights of our progress include:

In 2014, we continued to focus on our P&G
Vibrant Living initiative, with the intent tosupport our employees to live healthy lives andachieve peak performance.

Vibrant Living branded programs have beenrolled out to 204 P&G sites in 55 countries (seemap for Vibrant Living program countries).

Over 334 Vibrant Living Health Coaches(nurses and physicians) and Champions havebeen trained and qualified across all five regions(Asia, IMEA, Latin America, North America andEurope).

The Vibrant Living Site Certification Program has
quickly expanded globally to 58 sites, and more
applications are currently under review. This
ensures that our Culture of Health goals are met
by offering healthy choices and programs in theareas of nutrition, fitness, tobacco cessation and
more.

Sites with Vibrant Living Branded Programs

Vibrant Living Health Coaches and Champions

Vibrant Living Certified Sites

11

11

11

In April, we had a global celebration of healthwith over 50% of our sites joining in our first
Global Vibrant Living Awareness Day.
Our vision is to have the Healthiest, Most
Engaged People in the World.
P&G’s Vibrant Living strategy reflects these threefocus areas:
Culture of Health – emphasizes nutrition, fitness,easy access to our health information, and an
environment that encourages healthy choices
and personal management of health risks.
Health Education and Training – throughprograms like Corporate Athlete. We have
expanded the reach of WorkLife Solutions/EAP
to over 84% of our employees globally tostrengthen the foundation for the launch of ournewest Vibrant Living program, Managing Stressand Building Resilience.
Employee Engaged Health Care – provides
greater understanding of local health careresources and enables informed individual
health choices.

www.pg.com/sustainability

12

126

12

168

13

198

13

14

204

14

80

12

152

13

259
334

14

2
11
33
58

Contents

Introduction

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 toprotect the lives and health of its employees andthe communities surrounding its operations, aswell as to protect its assets, ensure business
continuity and engender public trust.
To accomplish this, P&G will:• Operate facilities safely and ensure thatprocesses are safe and healthy for our
employees and residents of the surrounding
communities. We will accomplish this byfollowing uniform corporate safety standards
around the world. Safe operations have beena longstanding part of Company culture,reflecting the belief that our employees are
our most important asset.
• Construct our facilities so as not tocompromise on the safety and health featuresdesigned into them.
• Monitor progress toward our objective ofpreventing injuries, illnesses and incidents. We
will continually assess and improve our safety
and health technologies and programs.
• Have every employee understand and be
responsible for incorporating safe behavior indaily business activities. Every employee istrained to work in a safe and healthy manner.
• Have operating standards, practices, systems
and resources in place to implement thispolicy.

www.pg.com/sustainability

2020 Goals chart

P&G profile

Environmental sustainability

Social responsibility

Worldwide Health, Safety &Environment Organization

Assessment process is designed to enablehigh-speed innovation.

Health, Safety & Environment (HS&E) is a global
community of resources responsible for ensuringthat all sites worldwide — including Innovation
Centers, Distribution Centers, acquisitions andestablished plants – are operated safely andlegally; that process hazards are minimized oreliminated; that health risks are identified andmanaged or eliminated; and that waste fromsites is reduced as much as possible. Several
thousand employees spend all or a portion of
their time on HS&E management. This year,
1,731 full-time equivalents (FTEs) were involvedin HS&E activities. This is down 3% from 1,776
FTEs last year and reflects the reorganization of
P&G HS&E systems into a more focused support
structure.

P&G has verified that the HS&E program at allof our manufacturing 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 respectedinternational consulting firm in the field ofenvironment, health, safety and sustainability
to conduct an independent equivalence study.
This ERM report, and a secondary P&G internalfollowup audit in 2010, both reaffirmed we arefollowing the overall principles defined within

HS&E total costs for existing sites, which
includes costs for personnel, operations andcontractor expenses for HS&E activities in fiscal
year 13-14, were ~ $129 million. Efforts to
reduce the amount of waste disposed haveincreased our overall quantity of recycling, andrevenue generated from these recycling activities
was ~ $44 million.
There are three major components to a site’s
HS&E organization: Environmental, Technical
Safety and Industrial Hygiene & Safety leaders;Fire Protection Systems leaders; and an overall
HS&E leader. The HS&E site organization also
closely partners with the site Health Service, orMedical leader. P&G uses a phased, detailed Risk
Assessment process to evaluate the safety ofprocesses and initiatives being introduced at its
own manufacturing operations as well as at
contractor manufacturing operations. The Riskthese standards.

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Contents

Introduction

Industrial Health and Safety
The health and safety of P&G employees areparamount in the principles of the Company:• Nothing we do is worth getting hurt.
• Safety can be managed.
• Every illness and injury could and should havebeen prevented.
• Safety and health are everyone’s responsibility.

2020 Goals chart

P&G profile

Environmental sustainability

The Company tracks and reports two metrics
for worker safety: total incident rate (TIR) andtotal lost workday case rate (LWDC). TIR includes
all cases that result in loss of consciousness,
lost workdays, restriction of work or motion,
medical transfer to another job or medical
treatment beyond first aid. LWDC includes allcases that involve days away from work or daysof restricted activity beyond the day of injury or
onset of illness. The TIR target for sites is to be
below 0.5 cases per year per 100 employees.
To achieve such rates, programs to address
employee safety, such as safe behaviors,
ergonomics and confined space entry have been
implemented. No target has been set for LWDC.
Instead, incidents that potentially could lead tolost workdays are managed. The following data
is based on criteria established by P&G for use
at all sites, including acquisitions, plants andtechnical centers. This year’s TIR was lower
versus last year, at 0.31 versus 0.34 incidents
per 100 employees, while the lost workday rate
was down to 0.16 versus 0.19 cases per 100
employees one year ago. Both are lower thanindustry averages.

Social responsibility

Audit Programs

Total Incident Rate

(Injury and illness per 100 employees)
12

0.36

13
14

0.34
0.31

Total Lost Workday Case Rate

(Lost and restricted workday cases per 100 employees)
12

0.19

13
14

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GRI index

0.19
0.16

P&G has over 66 manufacturing plants andtechnical centers that are celebrating over1 million safe work hours without a lost
workday injury. The charts below highlightsome of our top facilities ranked by numberof safe work hours.

P&G’s internal HS&E audit programs aredesigned to ensure compliance with national,
state and local regulatory requirements as wellas corporate standards and procedures. Audit
findings are reported promptly to the business
management teams, which must address andcorrect all issues in a timely manner. P&G’s audit
programs apply to all plants, innovation centersand distribution centers, worldwide. The
fundamental philosophy is to use standards
worldwide, implemented by trained professionals
at facilities and audited each year using aconsistent, comprehensive approach. The metrics
used are consistent with that philosophy. Audits
measure performance against a mandatory setof standards and standard operating procedures.
The target performance is 8.0 or better on a
10-point scale. The percentage of sites assessed
this year was 100%.
Sites Conducting Annual Audits(Percentage)
12

97%

13

99%

14

100%

Top 5 sites with highest number of safe working hours
Manufacturing Sites
Site

Technical Centers
Safe Hours*

GBU

RegionSite

Grooming

NA

Kobe Innovation Center

Safe Hours*
19,800,000

GBU

RegionTechnical Centers

Asia

Boston14,400,000

Ibadan10,800,000

Fabric and Home Care

IMEA

Sharon Woods Technical Center

17,800,000

Technical Centers

NA

Auburn7,800,000

Feminine CareNA

Beijing Innovation Center

9,900,000

Technical Centers

Asia

Rakona7,800,000

Fabric and Home Care

EuropeWinton Hill Business Center

9,100,000

Technical Centers

NA

Shiga

6,100,000

BeautyAsia

Fabric and Home Care Innovation Center

6,700,000

Technical Centers

NA*Rounded down to the nearest 100,000

www.pg.com/sustainability

Contents

Introduction

2020 Goals chart

P&G profile

Environmental sustainability

Social responsibility

54 of 68

GRI index

HS&E Audit ScoresFire Protection

Fire Protection Audit Scores

Site HS&E Leadership Training

P&G HS&E resources have been working
through a rigorous calibration exercise across all
geographies to ensure an appropriate calibrationand focus on high-priority areas. This calibration
exercise is helping to ensure we are holding
ourselves to the highest standards and has
resulted in a decrease in the number of sites
achieving scores of 8.0 or higher. In addition,over the last few years, we added several
acquisition sites. As is typical with manyacquisitions, it takes time for them to reach an
HS&E audit score of 8.0 or higher, and several
sites are still short of that target. However,through robust action plans, over the last year
we have closed the gaps from previous audits
and returned to over 75% of our global sites
scoring of 8.0 or higher.

P&G operates its fire protection program on
the basic principle that each facility is uniqueand should have a program designed to meetits specific requirements. Working with theInsurance division, HS&E has developed achecklist-based assessment process that
evaluates the fire protection equipment,
maintenance and inspection, and emergency
response capability of a site versus theappropriate level of fire protection required atthat site. Each plant, innovation center andmajor distribution center is assessed annually.
The target performance is 8.0 or higher on
a 10-point scale.

The fire protection assessment program waschanged significantly in 2011, even though we
had a historically low number of fire losses andno regulatory issues. The new audit process was
designed to be much clearer and calibrated
relative to our internal fire protection standards.
These process changes resulted in a more
rigorous and globally calibrated approach to
conducting these assessments. This 2011
process change decreased the number of sites
with scores of 8.0 or higher. However, since thatintervention, we have been making steadyprogress and this year, 66% of sites had Fire
Protection audit scores of 8.0 or higher. Sites
will continue to work against action plans toimprove scores over the course of the next year.

A key indicator of HS&E systems capability is thepercentage of sites with trained and qualified
leaders. Leadership candidates train onsite foran extended period after attending a week-longseminar where their knowledge and ability tohandle specific situations are assessed. For full
qualification, the candidates must complete a
qualification project at their own plant. Since
2012, we have seen a decrease in the numberof qualified leaders due to acquisitions andnormal attrition. Short-term gaps are covered via
corporate resources while we accelerate training
plans. The additional training has been a successover the last year, with the number of sites thathave qualified HS&E leaders climbing from 65%
to 76% and the number of qualified fire
protection leaders climbing from 76% to 85%.
This training and qualification program applies
to all sites, including Technical Centers andacquisitions.

Sites with HS&E Audit Scores of 8.0 or higher

Sites with Fire Protection Audit Scoresof 8.0 or higher

12

66

12

13

69

13

(Percentage)

14

76(Percentage)

14

52

Sites with HS&E Qualified Leaders

61
66(Percentage)
12
13
14

92
65
76

Sites with Fire Protection Qualified Leaders(Percentage)
12
13
14

www.pg.com/sustainability

87
76
85

Contents

Introduction

2020 Goals chart

P&G profile

Environmental sustainability

Compliance with Laws
and Regulations

Notices of Violation(NOVs)

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

In 2013, we saw an increase in total penalties.
This was primarily due to a single penalty
received for a third-party vendor improperly
handling our waste products. Using what
we learned from this incident, we have put
additional focus on evaluating how third parties
are handling our waste materials. We continue
to strive for zero notices or penalties, and thisyear we saw a meaningful reduction in both.

Fines

Air Emissions

2013

2012

34

43

34

$95,460 $709,061$93,760

A breakdown of Notices of Violations (NOVs) is
provided below:

www.pg.com/sustainability

SARA 313 Releases

Each site assesses total suspended particulates,
volatile organic compounds (VOCs), carbon
monoxide (CO), nitrogen oxides (NOX), andsulfur oxides (SOX). Overall, the total air
emissions remained relatively flat over thelast few years.
Air Waste by GBU(Thousands of metric tons)
12

12.2

13

11.3

14

12.5
Technical Centers

Distribution Centers

Health Care

BeautyGrooming

Baby, Feminine andFamily Care

Fabric and Home Care

Water-based

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GRI index(United States only)

2014

NumberSocial responsibility

Within the United States, P&G plants reportannually on the release of toxic chemicals into
the air, water and land. These releases aredefined in the U.S. Superfund Amendments
and Reauthorization Act (SARA) by the U.S.
Environmental Protection Agency. The purposeof this documentation (referred to as section313) is to publicly report the releases andtransfers of hazardous chemicals as definedby the agency.
This year we experienced an increase in overall
SARA emissions, primarily due to the startup
of a new high-speed battery production line.
The additional scrap from commissioning
activities counts toward our overall SARA results;
however, most of the materials were able to bebeneficially recycled.
SARA 313 U.S.

Numberof NOVs

Fines

8$80,060

12$2,667

13

Air-based

4

Solid waste-based

4$1,660Paperwork

2$170

Transportation-based

4$1,693

Other

2

$0

Worker safety

10$9,210Total

34$95,460(Total metric tons released or transferred)

14

2,190
2,367
3,669

* The 11/12 and 11/13 data previously reported in the 2013
Sustainability Report have been updated to reflect actuals.

Contents

Introduction

Stakeholder
Engagement
P&G works hard to be a good corporateneighbor and to improve lives in thecommunities where we live and work.

Communities
Each P&G production facility has site-specificactivities to build constructive relationships
with local authorities, industry associations,residential and business neighbors, actiongroups, thought leaders, and news media.
Depending on the cultures and interests ofindividual communities, this can range from
regular official meetings, during which new
information is shared or questions are answered,
to more informal meetings. These could include,for example, a reception for immediateneighbors, where information about the past
year and plans for the new year are discussed.
P&G ensures continuity in community interaction
by meeting regularly with local authorities
to update them on plant news. In theneighborhoods of many P&G operations, theCompany cooperates with and sponsors local
events, so the whole area benefits from thepresence of a P&G site.
P&G recognizes the importance of improving thequality of life in our local communities, and we
support local initiatives and encourage employee
involvement. The most valuable community
support we provide usually involves not only
writing a check, but also taking advantage ofthe intellectual capabilities and energy of P&G
people. We look for areas where we can make asignificant, long-term, systemic difference. This
leads us to focus on disaster relief and programsin our areas of focus: Health & Hygiene andwww.pg.com/sustainability

2020 Goals chart

P&G profile

Environmental sustainability

Comforts of Home. It also enables us to build
alliances with strategic partners to achieve a
better result than we could alone. We look to ouremployees in the area to work with their local
communities and government officials to learn
where we can make the biggest difference.

Authorities:
Local – Regional – Global
P&G communicates with local, regional andglobal authorities directly, both as a Company
and through industry associations. P&G scientists
and legal experts review existing and proposed
regulations that are relevant to the Company
and work with authorities to ensure that policies
take the needs and experience of business into
account. This is done via meetings with theauthorities and comments on their position
papers and industry position papers. Activities
like these can help ensure that the Company’s
needs are understood and considered when
decisions are being made that can impact P&G’s
business and our ability to meet the needs ofour global consumers.

NGOs: Local – Regional – Global
P&G frequently enters into dialogue withnongovernmental organizations (NGOs) tounderstand their concerns and cares. In order towork constructively with stakeholders, we feel itis essential to have their confidence and be seen
as a reliable and open discussion partner. Bybuilding an open relationship, we can approach
our NGO partners when issues arise. There is awide range of NGOs that vary by area of interest(e.g., environmental, consumer, animal welfare),by attitude (from extreme to moderate) and by
their geographic links (from local to global).
Depending on their characteristics, a number ofNGOs can be seen as the vocal spokespeople

Social responsibility

for the public. Consumer organizations exist in
many countries. These organizations contact
companies to compare products and voicecomments they receive from their members.
P&G continuously provides consumer
organizations with information on new
initiatives and cooperates with them inanswering consumer questions.

Consumers
At P&G, we are committed to providing
products and services that can help improve
the lives of our consumers all over the world.
In developing and marketing our products,
we adopt a “Consumer Is Boss” approach toensure that we delight consumers by launching
only new products and product improvementsthat genuinely meet their needs. Before
establishing a project for a new product or
product improvement, P&G researchers strive tounderstand consumer needs, in detail, in order to
identify those needs that are not fully met today.
Once a product is launched, our commitment
to our consumers does not stop there. For
P&G, every consumer’s experience in choosing,buying or using one of our products can provide
vital insights to help us further improve our
products and services. So we actively encourage
consumers to contact our Global Consumer
Relations team. We want to hear about ourconsumers’ experiences with our products – both
good and bad.
Each year, we hear from millions of consumers
who want to ask us something about our
products or our Company. We proactively offer“traditional” contact channels – phone, letter,e-mail – to consumers, but we are also very
aware that consumers’ lives are changing.
As a result, we have invested to enable ourconsumers to engage with us through social

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media, in addition to our established Carelines.
Many of the people in our Global Consumer
Relations team are now responsible forestablishing online communities in which
consumers can ask questions about our
Company and our products. This has been ahuge success and has actually enabled us tointeract with even more of P&G’s consumers
than in the past, which ultimately provides
more insights for our Product Development
and Marketing teams to help further improve
our products and services.
We are also innovating in how we ensure thatthese important insights from our consumers
get to our business teams. Consumers who takethe time to contact a company for advice or ask
for help to resolve a problem provide valuable
insights into our products, which can really help
us to improve our brands. So we need to makesure that our consumers’ voices are heard in
P&G. We do this by using a range of tools andtechnologies that provide our business teams
with key learnings from consumer comments.
In Global Consumer Relations, we recognizethat the world is changing and we are investing
in innovative technology to better serve ourconsumers. We feel very privileged that
consumers care enough about our products
to contact us.

Contents

Introduction

Advertising andPromoting toConsumers
Appropriately
The Company does not permit its advertisingor promotions for its products to be false or
misleading. P&G’s Worldwide Business Conduct
Standards for Responsible Sales and Marketing
Practice states:
We are expected to compete vigorously
and effectively, but never unlawfully.
For this reason, we are truthful in all of oursales and marketing. We must make only
truthful statements about our Company
and its products and services. All marketingclaims must be substantiated and live up
to their promises.
F or additional information, please see
P&G’s Worldwide Business Conduct
Manual, available at: www.pg.com/
en_US/downloads/company/governance/
Policy_Worldwide_Business_Conduct_
Manual.pdf

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P&G profile

Eliminating Research
Involving Animals
P&G strongly believes that ending animal
testing is the right thing to do. Our goal is
to stop animal testing completely. We are fullycommitted and passionate about our goal andbelieve the only way to stop animal testing is
to develop alternatives to animal testing.
Alternatives help us to innovate more ethicallyand are often cheaper, faster and more effectivemeans to assess ingredient safety. We areproud of the work that we have led in finding
alternatives. We have developed more than 50
non-animal testing methods and invested morethan $350 million in research and development
in finding these alternatives. We’ve also
published our results so that others can benefit
from our research. We attended and topsponsored the scientific World Congress on
Alternatives, where top scientists from aroundthe world come together to discuss latest
progress in alternatives development.
In 2013/14, the first ever non-animal alternative
to skin allergy tests was officially approved by
European authorities. This test, known as DPRA
(Direct Peptide Reactivity Assay), was invented
by P&G scientists. Skin allergy is a complex
process and an important safety question foralmost all ingredients. As a result, this alternative
marks a milestone in overcoming the need foranimal testing.
Our engagement has helped eliminate theneed for testing and has significantly reduced
the need for others in the industry to use
animals in research. Today, we do not test on
animals unless required by law, where no
accepted alternatives are available yet.

www.pg.com/sustainability

Environmental sustainability

Social responsibility

We are passionate about continuing ourprogress in alternatives to research involving
animals so that animal testing can be eliminated.
Highlights of our progress include:• We are a widely respected leader indeveloping alternatives to animal testing.
• We actively share our discoveries so that
others can benefit from our progress; ourwork has appeared in more than 1,000
scientific publications.
• We attended and top-sponsored the scientificWorld Congress on Alternatives.
• Our focus on developing non-animal test
methods has led to even more predictive
approaches using human cell lines, genomics
and the latest in computer modeling andinformatics.
• We invented the first non-animal alternative
to skin allergy testing, which was officiallyapproved by key regulatory authorities.
• We collaborate with universities, scientists
from other companies, governments andscientifically engaged animal welfare groups
to develop and promote acceptance ofalternative test methods and to change
regulations that still require testing withanimals.

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non-animal alternative to skin allergy
tests, please go to: www.
cosmeticsdesign-europe.com/
Formulation-Science/P-G-develops-firstapproved-non-animal-alternative-for-skinallergy-testingF or details of our policy and practices,
please go to: www.pg.com/en_US/
sustainability/policies_practices/animal_welfare.shtml
Or visit: pgbeautyscience.com/animaltesting-alternatives.php

Contents

Introduction

Sustainability Guidelines
for External Business
Partners
The foundation of our Sustainability Guidelines
for External Business Partners is our Statementof Purpose, Values and Principles. This leads
consumers to place their trust in us, ourcustomers and business partners to do businesswith us, our shareholders to invest in us, ourexternal stakeholders to respect us, and the besttalent to join us in working for P&G. We actively
seek business relationships with external
partners that share our values and promote theapplication of these high standards among
those with which they do business.
During the past year, we launched a renewal of
our guidelines and end-to-end auditing process.
Our renewed guidelines place emphasis onrespect for human rights by establishing clear
expectations for our external business partners
to respect internationally recognized humanrights, comply with all applicable laws, andconduct business ethically and responsibly. By
using third-party risk-management tools (e.g.,
Maplecroft human rights maps), we have refined
our end-to-end auditing process in selecting
external business partners for third-party
auditing. Our risk-based auditing processprovides us with a more succinct list of in-scopeexternal business partners, which enables thereview and remediation of non-compliance in atimely manner.

www.pg.com/sustainability

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P&G profile

Environmental sustainability

Summary of Our Renewed
Guidelines
1. External business partners must conductbusiness with integrity and in full compliancewith the law. External business partners andtheir employees must ensure they
understand how these standards and the law
apply to their work on behalf of P&G.
2. External business partners must not give,
agree to give, offer or receive anything ofvalue to influence the behavior of anotherbusiness partner or government official inorder to obtain an improper benefit oradvantage.
3. P&G respects internationally recognizedhuman rights as defined by the Universal
Declaration of Human Rights and AssociatedCovenants and the International Labor
Organization (ILO) Declaration on theFundamental Principles and Rights at Work.
We expect our external business partners to
respect these internationally recognizedhuman rights. Examples of specific required
behaviors include:• Do not use child labor, prison labor,
indentured or bonded labor, humantrafficking or modern-day slavery or use
corporal punishment or other forms ofmental and physical coercion.

Social responsibility• Treat their employees with dignity
and respect and have systems inplace to prevent, detect and resolve
unacceptable worker treatment suchas harassment, inappropriate use of
discipline, discrimination, physical ormental punishment, or other forms of
intimidation or abuse.
• Do not tolerate discrimination based on
race, color, gender, age, national origin,religion, sexual orientation, gender
identity and expression, marital status,
citizenship, disability, veteran status,
medical condition (e.g., HIV/AIDS
status, pregnancy), or any other legally
protected factor.
• Respect their employees’ right tochoose to join or not to join a tradeunion, or to have recognized employee
representation in accordance with local
law.
• At a minimum, comply with allapplicable wage and hour laws andrules and regulations, including
minimum wage, overtime andmaximum hours.
• Comply with all applicable health andsafety laws, rules, regulations andindustry standards. We expect a
commitment to and the support of the
improvement of the health and safetyof their operations, employees and thesurrounding community.

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In our business award decisions, we willcontinue to place substantial value upon
incumbent and potential external business
partners that consistently respect these humanrights.
4. External business partners must comply withall applicable environmental laws, rules andregulations. P&G recognizes that we must be
responsible for environmental stewardshipand using resources wisely. We strive to besocially responsible in the use of Company
resources for the long-term benefit ofsociety. External business partners are
expected to share P&G’s commitments andmaximize the value and quality of theirproducts by using resources responsibly,
preserving the environment and reducing theenvironmental footprint of their operations.
T he Sustainability Guidelines forExternal Business Partners (EBP) can be
downloaded at: www.pgsupplier.com/en/
pg-values/sustainability.shtml

Contents

Introduction

Supplier Diversity
Supplier diversity is a business strategy for P&G
that we have focused on since the mid-1970s.
When we invest with diverse suppliers, we not
only strengthen our innovation and go-tomarket capabilities, but also touch and improve
the lives of the women and men who work inthese companies – and through them, theirfamilies and the communities in which they live
and work. This is an important way we fulfill
P&G’s Purpose.
P&G makes a significant and ongoinginvestment in supplier diversity, spending
more than $2 billion with minority- andwomen-owned suppliers in fiscal year 13-14.
This is the seventh consecutive year we haveexceeded $2 billion in supplier diversity
spending. P&G is one of just 20 corporations on
the Billion Dollar Roundtable, an exclusive groupof companies that invest a billion dollars a year
or more with minority- and women-owned
agencies, suppliers or external businesses.

www.pg.com/sustainability

2020 Goals chart

P&G profile

Environmental sustainability

Personal Information
Privacy
Advances in computer technology have made it
possible for detailed information to be compiled
and shared more efficiently than ever aroundthe globe. That can be good news for society as
a whole and for individual consumers.
At the same time, as personal information
becomes more accessible, each ofus – companies, associations, government
agencies, consumers – must take precautions
against misuse of that information. Several
countries already have laws protecting
consumers from misuse of their personal
information, and many others are following suit.

Social responsibility

P&G places high priority on safeguarding
people’s personal information. Even in countries
without privacy legislation, we still adhere to our
privacy policy. We want to have the trust of
consumers and all others who do business withus, including employees, shareholders, retailcustomers and recruitment candidates.
P&G’s robust privacy program is managed by a
Global Privacy Council. Our first objective is toprotect an individual’s personally identifiable
information as if it were our own. All outsidecompanies handling data on our behalf are
required to abide by our privacy principles.
Externally, P&G has been a strong advocate ofwork within the industry to protect the privacyof consumers. For example, P&G has been aleader in the effort to make privacy notices moreconsumer-friendly and has made our online
marketing statement available in 45 languages.

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privacy principles, please visit: www.pg.
com/en_US/company/privacy/P &G adheres to U.S./European Union
Safe Harbor principles and participatesin the Better Business Bureau’s EU Safe
Harbor Program. For more information,
visit: www.bbb.org/council/eusafeharbor/bbb-eu-safe-harbor-dispute-resolutionprogram/In the United States, P&G is an active
participant in the Better Business Bureau’s
Accredited Business Program. For more
information, visit: www.bbb.org/online/
consumer/cks.aspx?ID=292000103
T hird-party companies can accessour privacy and security guidelines
on: www.pgsupplier.com

Contents

Introduction

Policies andManagement Systems
Reporting Boundaries
Our Sustainability Report provides HS&E datafor 137 manufacturing sites and 26 distribution
centers, 20 R&D facilities and 8 of our largest
offices, over which we have operational control.
Human Resources data covers all P&G facilities,
unless otherwise stated. Financial data covers
The Procter & Gamble Company and its
controlled subsidiaries.

Policies
While P&G competes hard to achieve leadershipand business success, the Company is concerned
not only with results but also with how thoseresults are achieved. We will never condone or
tolerate efforts or activities to achieve results
through illegal or unethical dealings anywherein the world.

2020 Goals chart

P&G profile

Environmental sustainability

Social responsibility

Management Systems

Process for Data Collection

P&G’s Management Systems ensure that
the Company’s policies are implemented in aconsistent manner throughout the world. These
Management Systems align with the Company’s
policies and promote a regular flow of
information that helps the Company better
manage its progress on elements of sustainable
development.

P&G’s data collection systems have been inplace for many years. They are designed to be
simple enough so that the people closest to
the work can use the tools, regardless of theirlocation. This simplicity enables the Company
to collect data and update systems annuallyat a relatively low cost. Each business unit is
responsible for the accuracy and consistencyof its data.

Performance
P&G measures operational performance inorder to drive continuous improvement. A
companywide system of measuring performancehas been developed. This approach enables theCompany to report data on a wide range of
operational categories. Our actions are not justprofit-driven but also progress-driven, to ensure abetter quality of life for everybody, now and forgenerations to come. Our extensive consumer
research related to our brands also helps us
identify ways we can best address sustainability.

Acquisitions
Acquisitions have been included in themetrics presented herein. Acquisitions differ
in performance expectations in that we allow
a six-year glidepath to meet the HS&E audit
performance score of 8.0 on a 10-point scale.
A midpoint expectation of 6.5 is expected tobe achieved within three years. Typically,acquisitions exceed those expectations.

All data is reported on a global basis. In order toachieve consistency and to ensure a common
understanding throughout the organization,
employees are trained in how to report anddocument data. Data is presented in metric units
and published in English, with local translation
performed where necessary. To ensure thestandard collection of data, the Company
established the following processes:• Key terms are defined.
• The data to be collected are identified.
• Flow sheets are agreed upon regarding whocollects data and on what systems.
• Technically sound methods are used byfacilities to estimate data and validate
year-to-year results.
• Personnel are trained on the work process
as appropriate.

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2020 Goal
Measurement Systems
We go to great lengths to ensure rigor,
accuracy and transparency in ourreporting. Below, we share additional
information on our some of our 2020
Goal Measurement Systems to help ensure
clarity and transparency on the data weare reporting:
Packaging Reduction
The average packaging reduction is calculatedusing products that represent the top 70% (byvolume) of the categories that have the largest
impact on packaging use (Fabric Care, Home
Care, Baby Care, Fem Care, Family Care, Oral
Care, PCC, Shave Prep, Hair Care and Hair
Color). While a subset of overall data, we
believe it is representative of overall corporate
data and focuses resources on the biggest SKUs
and categories that have the biggest impact on
packaging. Data is currently reported 1 year inarrears, so data reported represents progress
through June 20, 2013.

Renewable Energy
When calculating the renewable energy
powering our plants, we include the renewableenergy level of the local electrical grid thatprovides power to the plant.

Paper Packaging
Data for calculating progress versus our paper
packaging goal was self-reported by our
suppliers. The data collected this year
covered materials procured directly by P&G
and covered over 90% of our global spend.

Contents

Introduction

2020 Goals chart

P&G profile

Environmental sustainability

GRI Index
GRI
Indicator

Description

Page(s)

1. STRATEGY AND ANALYSIS
1.1

Statement from the most senior decision-maker of the organization.

1.2

Description of key impacts, risks, and opportunities.

4
5 – 59

2. ORGANIZATIONAL PROFILE
2.1

Name of the organization.

2.2

Primary brands, products, and/or services.

15 – 16

2.3

Operational structure of the organization.

18 – 22

2.4

Location of organization’s headquarters.
The Procter & Gamble Company
P.O. Box 599
Cincinnati, OH 45201-0599

17

2.5

Number of countries where the organization operates, and namesof countries with either major operations or that are specifically
relevant to the sustainability issues covered in the report. Also see
Global Locations www.pg.com/en_US/contact_us/index.shtml

2.6

Nature of ownership and legal form.

12

2.7

Markets served.

12

2.8

Scale of the reporting organization.

2.9

Significant changes during the reporting period regarding size,
structure, or ownership.

2.10

Awards received in the reporting period.
Also see www.pg.com/en_US/company/external_recognition.shtml

www.pg.com/sustainability

12

12, 20 – 22

12, 15 – 17
17
8, 49

Social responsibility

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Introduction

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Description

Environmental sustainability

Page(s)GRI
Indicator

Social responsibility

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Description

3. REPORT PARAMETERS

4. GOVERNANCE, COMMITMENTS AND ENGAGEMENT

Report Profile

Governance

3.1

Reporting period.

3.2

62 of 68

Page(s)2

4.1

Governance structure of the organization.

Date of most recent previous report (if any).

FY12/13

4.2

4, 23

3.3

Reporting cycle (annual, biennial, etc.).

AnnualIndicate whether the Chair of the highest governance body is also
an executive officer.

3.4

Contact point for questions regarding the reportor its contents.

4.3

For organizations that have a unitary board structure, state thenumber of members of the highest governance body thatare independent and/or non-executive members. State how theorganization defines ‘independent’ and ‘non-executive.’
Also see Proxy Statement available at www.pginvestor.com

23

4.4

Mechanisms for shareholders and employees to provide
recommendations or direction to the highest governance body.
Also see www.pg.com/en_US/investors/investor_contacts.shtml

17

4.5

Linkage between compensation for members of the highest
governance body, senior managers, and executives (including
departure arrangements), and the organization’s performance.
www.pg.com/en_US/downloads/company/governance/
Corporate_Governance_Guidelines.pdf
Proxy Statement available at www.pginvestor.com

23

4.6

Processes in place for the highest governance body to ensure conflictsof interest are avoided.
Also see www.pg.com/en_US/downloads/company/governance/
Corporate_Governance_Guidelines.pdf

23

4.7

Process for determining the qualifications and expertise of the membersof the highest governance body for guiding the organization’s strategy
on economic, environmental, and social topics.
Also see www.pg.com/en_US/downloads/company/governance/
Corporate_Governance_Guidelines.pdf

23

4.8

Internally developed statements of mission or values, codes ofconduct, and principles relevant to economic, environmental,
and social performance and the status of their implementation.

sustainrep.im@pg.com

Report Scope and Boundary
3.5

Process for defining report content.

2, 5 –11

3.6

Boundary of the report.

3.7

State any specific limitations on the scope or boundary of the report.

60

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities that can significantly affectcomparability from period to period and/or between organizations.

42, 603.9

Data measurement techniques and the bases of calculations.

60

3.10

Explanation of the effect of any re-statements of information
provided in earlier reports.

60

3.11

Significant changes from previous reporting periods in the scope,boundary, or measurement methods applied in the report.

2, 60

17, 60GRI Content Index
3.12

Table identifying the location of the Standard Disclosuresin the report.

61 – 67

Assurance
3.13

Policy and current practice with regard to seeking external assurance forthe report.

www.pg.com/sustainability223

13– 14,23 – 60

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GRI
Indicator

4.9

4.10

Introduction

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Description

Environmental sustainability

Page(s)Procedures of the highest governance body for overseeing theorganization’s identification and management of economic,
environmental, and social performance.
Also see www.pg.com/en_US/downloads/company/governance/
Governance_and_Public_Responsibility_Committee_Charter.pdf

23

Processes for evaluating the highest governance body’s
own performance.
Also see www.pg.com/en_US/downloads/company/governance/
Corporate_Governance_Guidelines.pdf

23

Explanation of whether and how the precautionary approachor principle is addressed by the organization.

4.12

Externally developed economic, environmental, and social charters,
principles, or other initiatives to which the organization subscribes
or endorses.

4.13

Memberships in associations.

Description

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Page(s)5. ECONOMIC PERFORMANCE INDICATORS

EC1

Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and othercommunity investments, retained earnings, and payments to capitalproviders and governments. (Core)EC2

Financial implications and other risks and opportunities for theorganization’s activities due to climate change. (Core)

EC3

Coverage of the organization’s defined benefit plan obligations. (Core)
Also see financial report www.pg.com/investors/annualreports.jhtml

47

EC4

Significant financial assistance received from government. (Core)See financial report www.pg.com/investors/annualreports.jhtml

N/A

25
36, 47, 52

16

27 – 38,
44 – 45

Market Presence24

Stakeholder Engagement
4.14

List of stakeholder groups engaged by the organization.

24, 56

4.15

Basis for identification and selection of stakeholders withwhom to engage.

56

4.16

Approaches to stakeholder engagement.

4.17

Key topics and concerns that have been raised throughstakeholder engagement.

www.pg.com/sustainability

GRI index

Economic Performance

Commitments to External Initiatives
4.11

GRI
Indicator

Social responsibility

24, 56
7-10, 31-38,
41, 43-45,
47, 56, 57-59

EC5Range of ratios of standard entry-level wage compared to local
minimum wage at significant locations of operation. (Additional)

47

EC6

Policy, practices, and proportion of spending on locally-based suppliers
at significant locations of operation. (Core)17, 19, 59

EC7Procedures for local hiring and proportion of senior management hiredfrom the local community at significant locations of operation. (Core)

47 – 49

Indirect Economic Impacts
EC8Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind,or pro bono engagement. (Core)

43 – 45EC9Understanding and describing significant indirect economic impacts,
including the extent of impacts. (Additional)
See financial report available at www.pginvestor.com

43 – 45

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Indicator

Introduction

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Description

Environmental sustainability

Page(s)GRI
Indicator

EN15

6. ENVIRONMENTAL
Materials
EN1

Materials used by weight or volume. (Core)

EN2

Percentage of materials used that are recycled input materials. (Core)42
11, 37, 42

EnergyEN3

Direct energy consumption by primary energy source. (Core)29, 33, 42

EN4

Indirect energy consumption by primary source. (Core)29, 33, 42

EN5Energy saved due to conservation and efficiency improvements.
(Additional)

11, 29, 33

EN6

Initiatives to provide energy-efficient or renewable energy based
products and services, and reductions in energy requirements asa result of these initiatives. (Additional)

11, 27

Initiatives to reduce indirect energy consumption and reductions
achieved. (Additional)

11, 27, 28,
29, 30, 33,
42

EN7

Total water withdrawal by source. (Core)31, 42EN9Water sources significantly affected by withdrawal of water. (Additional)

N/A

EN10

Percentage and total volume of water recycled and reused. (Additional)

N/A

Location and size of land owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity value outside
protected areas. (Core)

N/A

Description of significant impacts of activities, products, and services
on biodiversity in protected areas and areas of high biodiversity value
outside protected areas. (Core)

34 – 38

EN12

EN13

Habitats protected or restored. (Additional)

EN14

Strategies, current actions, and future plans for managing
impacts on biodiversity. (Additional)
Also see www.pg.com/productsafety/downloads/Environmental_
Quality_Policy.pdf

www.pg.com/sustainability

Number of IUCN Red List species and national conservation list
species with habitats in areas affected by operations by level ofextinction risk. (Additional)

Page(s)N/A

Total direct and indirect greenhouse gas emissions by weight. (Core)29, 42

EN17

Other relevant indirect greenhouse gas emissions by weight. (Core)29, 42

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved.
(Additional)

EN19

Emissions of ozone-depleting substances by weight. (Core)42, 55

EN20

NOx, SOx, and other significant air emissions by type and weight. (Core)42, 55

EN21

Total water discharge by quality and destination. (Core)31, 42

EN22

Total weight of waste by type and disposal method. (Core)39, 42

EN23

Total number and volume of significant spills. (Core)

EN24

Weight of transported, imported, exported, or treated waste
deemed hazardous under the terms of the Basel Convention
Annex I, II, III, and VIII, and percentage of transported waste
shipped internationally. (Additional)

EN25

Identity, size, protected status, and biodiversity value of water
bodies and related habitats significantly affected by the reportingorganization’s discharges of water and runoff. (Additional)

EN26

Initiatives to mitigate environmental impacts of products and services,and extent of impact mitigation. (Core)

EN27

Percentage of products sold and their packaging materials
that are reclaimed by category. (Core)

EN28

Monetary value of significant fines and total number of nonmonetary sanctions for noncompliance with environmental
laws and regulations. (Core)

55

EN29

Significant environmental impacts of transporting products and othergoods and materials used for the organization’s operations, andtransporting members of the workforce. (Additional)

30

EN30

Total environmental protection expenditures and investments
by type. (Additional)

52

31
34 – 38

Description

64 of 68

EN16

Biodiversity
EN11

GRI index

Emissions, Effluents and Waste

Water
EN8

Social responsibility

11, 27, 29,
30, 33 – 42

55
39 – 42N/A

5 – 8, 11,
26 – 41
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Page(s)Training and Education

7. LABOR PRACTICES AND DECENT WORK
Employment
LA1

Total workforce by employment type, employment contract,
and region. (Core)12, 49LA2

Total number and rate of employee turnover by age group,
gender, and region. (Core)
Note: We do not track this information globally

N/A

Benefits provided to full-time employees that are not provided totemporary or part-time employees, by major operations. (Additional)

N/A

LA3

GRI
Indicator

Social responsibility

Labor / Management Relations
LA4

Percentage of employees covered by collective bargaining
agreements. (Core)

N/A

LA5

Minimum notice period(s) regarding significant operational changes,
including whether it is specified in collective agreements. (Core)
Note: We abide by local legislation and our PVPs.

N/A

LA10

Average hours of training per year per employee-by-employee
category. (Core)51, 54

LA11

Programs for skills management and lifelong learning that support thecontinued employability of employees and assist them in managing
career endings. (Additional)

47, 51LA12Percentage of employees receiving regular performance and careerdevelopment reviews. (Additional)

47

Diversity and Equal Opportunity
LA13

Composition of governance bodies and breakdown of employees per
category according to gender, age group, minority group membership,
and other indicators of diversity. (Core)
Also see Proxy Statement available at www.pginvestor.com

49

LA14

Ratio of basic salary of men to women by employee category. (Core)

47

8. HUMAN RIGHTS

Occupational Health and Safety

Investment and Procurement Practices

LA6

Percentage of total workforce represented in formal joint managementworker health and safety committees that help monitor and advise on
occupational health and safety programs. (Additional)

52 – 54

HR1

Percentage and total number of significant investment agreements that
include human rights clauses or that underwent human rights
screening. (Core)47, 58

LA7

Rates of injury, occupational diseases, lost day’s, absenteeism and total
number of work-related fatalities, by region. (Core)

53

HR2

Percentage of significant suppliers and contractors that have undergone
screening on human rights and actions taken. (Core)47, 58LA8

Education, training, counseling, prevention and risk-control programs inplace to assist workforce members, their families, or community
members regarding serious diseases. (Core)

50 – 51

HR3

Total hours of employee training on policies and procedures concerning
aspects of human rights that are relevant to operations, including thepercentage of employees trained. (Additional)

LA9

Health and safety topics covered in formal agreements withtrade unions. (Additional)

52 – 54

Non-discriminationwww.pg.com/sustainability

HR4

Total number of incidents of discrimination and actions taken. (Core)
Also see www.pg.com/en_US/company/purpose_people/diversity_
inclusion.shtml

47

48 – 49

Contents

GRI
Indicator

Introduction

2020 Goals chart

P&G profile

Description

Environmental sustainability

Page(s)Freedom of Association and Collective Bargaining
HR5

GRI
Indicator

58

Operations identified as having significant risk for incidents ofchild labor, and measures taken to contribute to the eliminationof child labor. (Core)58

Operations identified as having significant risk for incidents offorced or compulsory labor, and measures taken to contributeto the elimination of forced or compulsory labor. (Core)

SO1

Percentage of security personnel trained in the organization’s polices
or procedures concerning aspects of human rights that are relevant tooperations. (Additional)

56

SO2

Percentage and total number of business units analyzed for risks related
to corruption. (Core)
Also see Worldwide Business Conduct Manual
www.pg.com/en_US/company/ethics.html
Governance structure, policies, and procedureswww.pg.com/en_US/company/global_structure_operations/
governance/index.shtml

20

SO3

Percentage of employees trained in organization’s anti-corruption
policies and procedures. (Core)
Also see Worldwide Business Conduct Manual
www.pg.com/en_US/company/ethics.html
Governance structure, policies, and procedureswww.pg.com/en_US/company/global_structure_operations/
governance/index.shtml

23

SO4

Actions taken in response to incidents of corruption. (Core)
Also see Worldwide Business Conduct Manual
www.pg.com/en_US/company/ethics.html
Governance structure, policies, and procedureswww.pg.com/en_US/company/global_structure_operations/
governance/index.shtml

23

Corruption

N/A

Indigenous Rights
HR9

Total number of incidents of violations involving rights of indigenous
people and actions taken. (Additional)

www.pg.com/sustainability

Page(s)Nature, scope, and effectiveness of any programs and practices
that assess and manage the impacts of operations on communities,
including entering, operating, and exiting. (Core)

58

Security Practices
HR8

Description

66 of 68

Community

Forced and Compulsory Labor
HR7

GRI index

9. SOCIETY

Operations identified in which the right to exercise freedom of
association or collective bargaining may be at significant risk,
and actions taken to support these rights. (Core)Child Labor
HR6

Social responsibility

N/AContents

GRI
Indicator

Introduction

2020 Goals chart

P&G profile

Description

Environmental sustainability

Page(s)Public Policy

GRI
Indicator

Public policy positions and participation in public policy development
and lobbying. (Core)

24

SO6

Total value of financial and in-kind contributions to political parties,
politicians, and related institutions by country. (Additional)

24

Description

67 of 68

Page(s)PR3

Type of product and service information required by procedures, andpercentage of significant products and services subject to suchinformation requirements. (Core)

25

PR4

Total number of incidents of noncompliance with regulations andvoluntary codes concerning product and service information andlabeling, by type of outcomes. (Additional)

N/A

PR5

Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction. (Additional)

56

Anti-Competitive Behavior
Total number of legal actions for anti-competitive behavior, anti-trust,and monopoly practices and their outcomes. (Additional)

N/A

Monetary value of significant fines and total number of non-monetary
sanctions for noncompliance with laws and regulations. (Core)

55

Compliance
SO8

GRI index

Product and Service Labeling

SO5

SO7

Social responsibility

Marketing Communications

10. PRODUCT RESPONSIBILITY

PR6

Programs for adherence to laws, standards, and voluntary codes related
to marketing communications, including advertising, promotion, andsponsorship. (Core)

57

PR7

Total number of incidents of noncompliance with regulations andvoluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship, by type of outcomes.
(Additional)

N/A

Consumer Health and Safety
PR1

Life cycle stages in which health and safety impacts of products andservices are assessed for improvement, and percentage of significant
products and services categories subject to such procedures. (Core)

25

PR2

Total number of incidents of noncompliance with regulations andvoluntary codes concerning health and safety impacts of products andservices, by type of outcomes. (Additional)

N/A

Customer Privacy
PR8

Total number of substantiated complaints regarding breaches ofcustomer privacy and losses of customer data. (Additional)

N/A

Monetary value of significant fines for noncompliance with laws
and regulations concerning the provision and use of products
and services. (Core)
Note: We do not track this information Globally

N/A

CompliancePR9

www.pg.com/sustainability

Contents

Introduction

2020 Goals chart

P&G profile

Environmental sustainability

Social responsibility

68 of 68

GRI index

Contact:
E-mail us at sustainrep.im@pg.com
Visit www.pg.com/sr