2014 Sustainability Report
Executive Summary

At P&G,
sustainability is part ofeverything we do.
- A.G. Lafley, P&G President, CEO and Chairman of the Board

ABOUT OUR 16TH ANNUAL SUSTAINABILITY REPORTThe following pages highlight our Sustainability work for 2014 and the progress we’ve made toward our2020 Goals. We are sharing just a few examples of work being done across the Company and around theworld to make the lives of consumers better, while also making their – and our – environmental footprint
smaller. Our full report, with more stories and data, was prepared using the Global Reporting Initiative’s(GRI) G3 guidelines and can be found online at www.pg.com/sustainability.

Leadership Statement

At P&G, our sustainability objective
is to create industry-leading value
with brands and products that
consumers prefer, while at the sametime conserving resources, protecting
the environment and improvingsocial conditions for those whoneed it most.
We see success as creating value for consumers and shareowners
and leading the consumer products industry with effective andlasting solutions to environmental and social sustainability
challenges.
We believe in actions speaking louder than words – ”Promises
made, Promises kept” – which is why we consistently deliverproducts and programs that demonstrate progress onenvironmental and social sustainability. For example, we areinnovating in:• Compacted laundry detergents, less bulky diapers, andproducts that reduce materials, energy usage and waste;• Operations with zero manufacturing waste to landfills andless energy and water usage;• Cold-water washing that conserves energy and reduces
CO2 emissions;• The P&G Children’s Safe Drinking Water Program, which hasdelivered 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 in need when disaster strikes aroundthe world.
These types of efforts have helped us meet consumer needs andmake a positive environmental and social impact. To continue
making progress over time, we need to ensure that what is goodfor sustainability also is good for business.

This belief is at the heart of my personal commitment as P&G’s new
Global Sustainability Executive Sponsor. I see major opportunities toincorporate sustainability more deeply into business strategy andplanning, innovation, operations and communication.
When sustainability goals and progress are led from within
operating business units, and when business leaders see
sustainability as a choice for growth and profitability, investment
and breakthrough innovation will follow.
We have stretching goals before us for 2020. With clear business
unit ownership and full employee engagement at all levels andacross the entire Company, we know we can get there. Towardthat end, we are introducing a three-pillar approach to oursustainability efforts – aiming to ensure clarity, consistency andengagement across the Company:• We Preserve. Every day, we look to design products andoperations with less water, energy and material waste topreserve resources. Through our brands, we focus onpreserving the health and comfort of those in most need.
• We Partner. We can make the biggest impact when webuild partnerships with experts in industry, government, NGOs
and academic communities. The challenges are complex andrequire collaboration to develop effective and lasting solutions.
We improve the way we communicate sustainability throughour 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 to embed sustainability
improvements into our business practices, systems and culture.
With this focus and the full integration of our sustainability
efforts into our business and innovation 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

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.

Revised Renewable Materials Goal
We also are working across our supply chain to develop thecapability by 2020 to replace our top petroleum-derived raw
materials with renewable materials, as cost and scale permit.

Palm Oil Goals
That is why we established P&G’s Global Sustainability Vision four
years ago, backed by a set of 14 goals driving work across all areasof our business. The goals are detailed on page nine, along withresults achieved so far.
Looking ahead toward next fiscal year, in October 2014 we addedfour new goals, with emphasis on water conservation and productpackaging. I wanted to share these so that you can see where weare 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 to water-efficient products

Packaging Goals
Packaging sustainability is another key priority for P&G. We areon track to reduce packaging by 20% per consumer use by 2020.
Given this progress, P&G is raising the bar to:• Double the use of recycled resin in plastic 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%

See more details on our new goals at: pg.com/sustainability

Our commitment to zero deforestation in our palm oil supply
chain is unequivocal.
In April, we reinforced this commitment with an announcement ofgoals calling for traceability of palm oil and palm kernel oil to our
supplier mills by December 31, 2015, and to plantations by 2020.
To support these goals, we began the intensive work of tracing ourcomplete supply chain by partnering with the Malaysia Institute for
Supply Chain Innovation (MISI), part of the Massachusetts Instituteof Technology. MISI is conducting two six-month in-field studies tounderstand 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 workwith our industry peers and NGOs to develop consistent industry
standards and practices that will ensure sustainable palm oilsourcing for the long term. We will continue to issue updates
on this work at pg.com/sustainability.
We believe that meaningful progress toward demanding
sustainability goals is right for the planet and right for P&G’s
business. We’re committed to doing the right thing, in the rightway, for those who use our products, live in our communities
and work in our Company. We thank you for your partnershipon the journey.

Len Sauers
Vice President, Global Sustainability

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 LiquidNorth America

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

MANUFACTURING:NEW GOALS:

Our vision is to send no manufacturing waste to landfill. It’s a stretchinggoal, but we have made tremendous progress in the last seven years.
We now have 70 zero manufacturing waste to landfill facilities aroundthe world. That is nearly 50% of all our manufacturing facilities. This
work has enabled us to exceed our goal on waste reduction six years
ahead of schedule. Our goal was to reduce our 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 finished product or was recycled, reused, repurposed orconverted to energy. We also have created more than $1.6 billion invalue 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 withlarge 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 toensure that we are not contributing to the destruction of rain forests.
Our teams are working with experts from the Malaysia Institutefor Supply Chain Innovation to better understand farmers’ needs,
practices and challenges to ultimately help create innovative solutions
to the problem. Our new goals call for traceability of palm oil andpalm kernel oil to our supplier mills by December 31, 2015, and toplantations by 2020.

Making Zero Waste a Reality

Palm Oil

SUPPLIERS:

Working in PartnershipThis 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 and waste performance. Our aim now is to increase
data collection, and thus our ability to work with key strategic
suppliers in reducing our collective environmental footprint.

Zero
deforestationin palm oil

GOAL REACHED:

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

70

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

PACKAGING:

Innovating for Savings
Mr. Clean Liquid Muscle delivered two innovations. Its
2.5x-concentrated formula resulted in 45% less packaging and
64% less water per bottle. Its unique single-dosing cap is preferredby 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 “an amazing, award-winning package.”

45% 64%
lesspackagingless water
per bottle

PACKAGING:

Enabling Recycling toIncrease Recycled Content
As part of our goal to increase the amount of recycled materials in
our packaging, we are working with multiple partners to develop andencourage the use of local recycling programs. This year, we becamea founding member of the Closed Loop Fund, designed to give moreconsumers in the United States access to recycling by creating a multimillion-dollar fund to invest in low- and no-interest loans for recycling.
This will “enable a larger supply of usable, recyclable content, which
will enable manufacturers to give consumers what they want – more
packaging with recycled materials. This is good for consumers andgood for the environment,” said P&G President, CEO and Chairmanof the Board A.G. Lafley.

PRODUCT FORMULATION:

Fabric Care Innovation
We committed to another round of compaction in 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 andenergy used to make, pack and ship products – and fewer delivery
trucks on the road. We anticipate saving 50 million gallons of watera 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 andBonux) 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

Social Sustainability
Doing the right thing is the foundation of P&G’s Purpose, Values and Principles and includes
investing in the communities in which 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 theirbest, 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 more thana 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 personalcare supplies, cash and P&G Purifier of Water packets to help.

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 need and helped save an estimated 42,000 lives.

P&G also sent products and cash donations to help with morethan 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 our work aimed
at improving lives in times of disaster:
July 2013

September 2013

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

When flash flooding hit
Boulder, CO, and surrounding areas,
P&G distributed more than 4,000
personal care kits along withproducts such as Charmin, Bounty,
Pampers and Dawn. Tide Loads ofHope also helped by providing clean
laundry for hundreds of families.

October 2013

May 2014

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

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

60,000loads of laundry
cleaned by the
Tide Loads of Hopeprogram since 2005

The program:• Delivered the 7 billionth liter to a family of 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 to engage consumers inproviding clean drinking water to developing countries. Still
growing, the program already has 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.

CSDW by the numbers+140 +7.5 billion
Global partners

Liters to date

Helping Through Our Brands

Habitat for Humanity

Always reached an additional 300,000 girls through its Protecting
Futures Program, providing girls ages 12-14 with education on good
personal hygiene, puberty, menstruation and 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.

Since we expanded our partnership with Habitat for Humanity to a
global program about a year ago, P&G teams have built or cleaned
more than 50 homes around the world. The impact of that work
comes to life when we meet the people who live in those homes,
as the project is not about sheer numbers, but individual impact.

Pampers – as part of its commitment to happy, healthy developmentof babies – created the Pampers Mobile Clinic Program, providing
free basic 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 year of working to eliminate neonatal
tetanus, a preventable disease that claims the life of 58,000 babies
in developing countries each year. The campaign, 1 pack = 1 vaccine,has donated more than 300 million vaccines and helped to eliminate
the disease in 15 countries.
Safeguard’s Clean Hands Healthy Kids Campaign marked its 15th yearof teaching hygiene to prevent childhood illness, absenteeism andeven death. The program was launched in China based on global
research that soap and water washing can prevent nearly 4 million
children a year from dying before their 5th birthday. Today, theprogram 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
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 thesewigs for cancer patients, and through their partnership with theAmerican 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 acrossthe U.S. and in Canada, Australia and Israel in partnership with local
cancer associations.

One person we met this year was Mr. Jaras, who lived in the
Prachinburi Province of Thailand. His community still had notrecovered from the brutal flooding that ripped through scores ofhomes two years earlier, and the rainy season was on its way again.
Mr. Jaras, 50, was partially 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 and wheelchair. 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 additionalcomforts of home.
“He never stopped smiling. As difficult as life wasfor him, he remained optimistic,” said P&G Corporate
Contributions Senior Manager Brian Sasson. “We hope
it changed his life. We know it did ours.”

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

2020 Goals Progress
We are working toward our long-term vision of:• Powering all our plants with 100% renewable energy• Having zero consumer and manufacturing waste go to landfills• Using 100% renewable or recycled materials for all
products and packaging• Designing products that delight consumers while maximizing
the conservation of resources

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

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 machine loads
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.*• New 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 tocreate 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 a commitment 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.

• 54% 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 understandhow to eliminate landfilled/dumped solid waste.

• Feasibility 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 memberof 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•Improve the lives of 50 million people each year through oursocial 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 of cleanwater this year and is on track to meet our goal by providing 2 billion liters ofdrinking water each year by 2020.

*vs. 2010 baseline

ABOUT P&G

P&G serves nearly five billion people around the world with its brands. The Company has one of the strongest portfolios oftrusted, 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 ®. The P&G community includes operations in approximately 70 countries worldwide. Please visit http://www.pg.com
for the latest news and in-depth information about P&G and its brands.

2014 NET SALES: $83.1 BILLIONBY GEOGRAPHIC REGIONBY BUSINESS SEGMENT (1)

25%

24%

10%
32%

9%

BeautyGrooming
Health Care Fabric Care andHome Care Baby, Feminineand Family Care

7%
10%
39%

16%

BY MARKET MATURITY

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

Developed
Developing
39%

61%

28%

(1) These results exclude net sales in Corporate.

RESOURCE AND WASTE SUMMARY
The table below reports environmental statistics for Manufacturing Operations in the Global Business Units, Technical Centers andDistribution Centers.
Totals (absolute units x 1,000)

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

2014

2013

2012

Baby,
Feminine andFamily Care

BeautyFabric andHome Care

28,331

26,57025,618

5,399

2,023

19,075

859

592

618

Grooming Health Care

Technical
Centers

Distribution
Centers

N/A

N/A

Production (metric tons)
Product Shipped(2)Raw Materials from Recycled Sources(3)

806

1,028

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%

Disposed Waste (metric tons)
Waste Disposed

117

172

207

24.70

20.19

52.01

1.08

10.02

4.09

4.77

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 (excluding water)(4)

19

18

20

4.45

2.72

10.66

0.58

0.53

0.41

N/A

Air Emissions (5)

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

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

Other

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 major office buildings as well as technical and research centers that support the business units. Distribution Centers includes
facilities that distribute finished product. Numbers do not include 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, NO x , CO and VOC.
(6) Releases defined in the U.S. Superfund Amendments and Reauthorization Act (SARA) by the U.S. Environmental Protection Agency

©2014 Procter & Gamble
00385001