Designed to Innovate … Sustainably
2008 Sustainability Overview

Contents
CEO Statement
2
Leadership Statement
3
Sustainability Strategies and Goals for 2012 4
Over 50 Years of Sustainability Progress
4
Deﬁning Innovation
6
Investing in Innovation
8
Managing Innovation
10
Delivering Innovation
12
Leading Innovation
14
Resource & Waste Summary
16
Sustainable Innovation Products
16

About this publication
At P&G, we view sustainability as a signiﬁcant
responsibility — and a continual source of opportunity.
So from our products to our operations, we embedsustainability into everything we do.
Now in its tenth year, this publication describes how
P&G innovates with a sustainability mindset, outlining
the systems and processes we employ to help deliver
sustainable outcomes. We provide an overview of ourresults from last year, along with progress against our2012 strategies and goals.

P&G has been a member of the FTSE4Good and Dow Jones
Sustainability Index (DJSI) since their inception, having led ourmarket sector in the DJSI for seven of the ten years it has
been in existence. In 2008, we were recipients of theEuropean Business Award for Corporate Sustainability, which
honors organizations that demonstrate a company-widecommitment to corporate sustainability. For our efforts inChildren’s Safe Drinking Water, we received the Ron Brown
Award for Corporate Leadership, the only presidential award
to recognize companies for the exemplary quality of theirrelationships with employees and communities.

Our online report, prepared using the
Global Reporting Initiative’s (GRI) G3 Guidelines,
is available at www.pg.com/sustainability.
THE

RON BROWN
AWARD
FOR

C ORPORATELEADERSHIPThe Procter & Gamble Company

In order to improve the livesof the world’s consumers —now and for generations
to come — P&G is designed
to innovate sustainably.
We deﬁne innovation broadly, looking for sustainability
opportunities at every touch-point along the pathof our products.
We invest in innovation to reduce the environmental
footprint of our operations, affecting both our facilities
and our processes.
We manage innovation with discipline, using science-based
tools to identify sustainability opportunities for our products,from discovery through disposal to potential reuse.
We deliver innovation through a combination ofvisible product-based improvements and less visible
operations-based advancements.
We lead innovation by inspiring our employees to take personal
responsibility for delivering our sustainability goals and leading
positive change, both inside and outside the Company.

1

2

The Procter & Gamble Company

www.pg.com/sustainability

P & G REPORT CARD:
2012 SUSTAINABILITY GOALSThis is the ﬁrst year we have reported results for these goals.

CEO Statement
Sustainable development is a very simple idea. It’s about ensuring
a better quality of life for everyone, now and for generations tocome. This idea is at the heart of P&G’s Purpose, which — for
171 years — has been focused on improving people’s lives withbranded products and services they use every day.
We fulﬁll P&G’s Purpose by innovating. Innovation is P&G’s
lifeblood; we want to be the innovation leader in every
business, product category and country where P&G competes.
We bring tremendous innovation resources to every part of ourbusiness, and sustainability is no exception. Consumers havetold us, for example, that they want to make more sustainablechoices, but not at the risk of trading performance or value —especially in tough economic times. We see this as aninspiring business challenge and we believe P&G’s uniqueapproach to innovation enables us to meet consumer needs
and achieve the Company’s sustainability goals, year after year
and over the long term.
We leverage this integrated approach to innovation by taking
advantage of P&G’s global scale and scope, which is unrivaledin our industry. The result is a steady stream of product, operational and organizational innovations that enable P&G to win
with consumers and retail customers — while improving oursustainability proﬁle at the same time. And, we do so consistently, reliably, successfully, and responsibly.
In the pages that follow, you’ll see how P&G is on track toachieve our ﬁve-year sustainability goals introduced last year.
We’re encouraged by this performance, but we know it’s thelong term that matters most and we will continue to holdourselves accountable for business and sustainability resultsover the near, mid and long term. I’m conﬁdent we can meet or
exceed our goals because P&G is designed to innovate — and togrow — sustainably… now, and for generations to come.

A.G. Laﬂey
Chairman of the Board
and Chief Executive Ofﬁcer

Strategy 1:
Products
GOAL Develop and market at least $20 billion in cumulative salesof “sustainable innovation products,” which are products with asigniﬁcantly reduced (>10%) environmental footprint versus
previous or alternative products.(1)PROGRESS(in billions of U.S. dollars)

Cumulative Sales
since July 2007

Cumulative sales of sustainable innovation products$2.05

Strategy 2:
Operations
GOAL Deliver an additional 10% reduction (per unit production)
in CO2 emissions, energy consumption, water consumption anddisposed waste from P&G plants, leading to a total reduction
over the decade of at least 40%.
PROGRESS(percent reduction per unit production)

Energy Usage
CO2 Emissions
Waste Disposal
Water Usage

Since
July 2007

Since
July 2002

-6%

-46%
-52%
-50%
-51%

-8%
-21%
-7%

Strategy 3:
Social Responsibility
GOAL Enable 250 million children to Live, Learn and Thrive(2).
Prevent 80 million days of disease and save 10,000 lives by
delivering 2 billion liters of clean water in our Children’s Safe
Drinking Water program.(3)PROGRESS

Since July 2007

LIVE, LEARN AND THRIVE

Number of Children Reached

60 million

CHILDREN’S SAFE DRINKING WATER

Liters of Clean Water Delivered
Days of Disease Prevented
Lives Saved

430 million
18 million
2,442(1) Sustainable Innovation Products are included if they have launched in market since
July 1, 2007, and have a signiﬁcant (>10%) reduction in environmental footprintthat is achieved through innovation impacting one or more of the following
indicators without negatively impacting the overall sustainability proﬁle of the
product: A. Energy, B. Water, C. Transportation, D. Amount of material used inpackaging or products, E. Substitution of non-renewable energy or materials
with renewable sources.
(2) Live, Learn and Thrive (LLT) is P&G’s global cause that focuses our social
investments on efforts that improve the lives of children in need ages 0–13.
(3) Within Live, Learn and Thrive, our signature program is Children’s Safe Drinking
Water (CSDW). Methodology for calculating diarrheal days and mortality wasdeveloped with Population Services International and Aquaya Institute. Details
are provided at www.pg.com/sustainability.

The Procter & Gamble Company

3

Innovating sustainably:
Where responsibility meets
opportunity

Leadership Statement
Last year, P&G established ﬁve strategies to improve the environmental proﬁle of the Company’s products and operations
and to expand our Live, Learn and Thrive social responsibility
program. A year into this renewed commitment, we’re on track
to meet or exceed our goals, and to integrate sustainability into
P&G’s day-to-day business.
1. Products. We want to delight consumers with sustainable

innovations that improve the environmental proﬁle of our products. Our goal is $20 billion in cumulative sales of these products
over ﬁve years. We generated more than $2 billion in sales in
our ﬁrst year by launching seven sustainable innovations in ﬁscal
2008, including the compaction of liquid laundry detergents —an innovation we rolled out across P&G’s line of North America
laundry brands. We are conﬁdent we can meet this 2012 goalbased on our current plans and pipeline.
2. Operations. We want to improve the environmental proﬁleof P&G’s operations worldwide. Our goal is to deliver an addi-

tional 10% reduction (per unit of production) in energy andwater use, CO2 emissions, and waste disposal by 2012, which
will complete a decade-long reduction of at least 40% in theseareas. We’re making signiﬁcant progress against this goal. For
example, we’re building sustainability-inspired manufacturing
sites in North America, Europe, and China. We’re also improving
existing facilities, such as our manufacturing plant in Mehoopany,
Pennsylvania, where a heat recovery system is now reclaiming
enough energy to power almost 12,000 U.S. households annually.
Company-wide, we’ve reduced energy by 6%, reduced CO2
emissions by 8%, reduced waste disposal by 21%, and reduced
water usage by 7% this past year.
3. Social Responsibility. We want to improve lives through P&G’s
global social responsibility program, Live, Learn and Thrive. This
year we opened our 140th P&G Hope School in China, helping
children in poverty-stricken rural areas gain access to elementary
education. We also delivered our one-billionth liter of clean drinking water through our Children’s Safe Drinking Water program,- sachets. Additionally, Pampers partnered withleveraging PuR
UNICEF to provide funds for more than 50 million doses ofvaccine to help prevent maternal and neonatal tetanus in thedeveloping world. Dozens of Live, Learn and Thrive programs
like these enabled P&G to reach more than 60 million children
globally this year.

4. Employees. We want to engage and equip every P&G

employee to build sustainability thinking and practices into theireveryday work. We’ve challenged one another to “Take the ‘R’(Responsibility) for Tomorrow,” a uniﬁed employee programthat is combining and expanding successful pilot projects fromaround the world. We celebrated Earth Day and World Water
Day at dozens of P&G locations globally. We launched a
Sustainability Ambassador Network for P&Gers who want to be
more active as sustainability leaders. We’ve helped reduce travel
by investing in state-of-the-art video collaboration studios.
5. Stakeholders. We want to help shape the future — now andfor generations to come — by collaborating with local, regional,
and global stakeholders. For example, we’re an active part of
the Clinton Global Initiative (CGI) and have stepped up oursocial responsibility commitments in each of the three years
we’ve partnered with CGI, to help millions of children globally
Live, Learn and Thrive. In the UK, we have worked with WRAP
(Waste and Resources Action Programme) to deliver innovationthat enables packaging reductions without compromisingpackaging integrity. And we’re working with the Energy Saving
Trust in Europe to encourage people to wash clothes in colder
temperatures. We ﬁrmly believe we can make a bigger difference
together with partners like these than any of us can make on
our own.
Throughout P&G’s history, we’ve focused on doing what’s
right and our approach to sustainability is fully consistent withthis basic Company principle. We are accountable for delivering
our goals year to year, and committed to improving P&G’s
sustainability results consistently and reliably over the long term.
To learn more, please see our online report, prepared using
the Global Reporting Initiative’s (GRI) G3 Guidelines, at
www.pg.com/sustainability.

Susan Arnold
President,
Global Business Units
Executive Sponsor,
Sustainability

Len Sauers
Vice President,
Global Sustainability

4

The Procter & Gamble Company

www.pg.com/sustainability

Sustainability Strategies and Goals for 2012:

Strategy 1:
Products

Strategy 2:
Operations

Strategy 3:
Social Responsibility

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

Improve the environmental proﬁleof P&G’s own operations.

Improve children’s lives through P&G’s
social responsibility programs.

GOAL: Deliver an additional 10% reduction(per unit of production) in CO2 emissions, energy
consumption, water consumption and disposed
waste from P&G plants, leading to a total reduction over the decade of at least 40%.

GOAL: Enable 250 million children to Live, Learn
and Thrive. Prevent 80 million days of disease
and save 10,000 lives by delivering 2 billion litersof clean water in our Children’s Safe Drinking
Water program.

PROGRESS: Reductions since July 2007:
Energy Usage -6%, CO2 Emissions -8%,
Waste Disposal -21%, Water Usage -7%.

PROGRESS: 60 million children reached;
430 million liters of clean water delivered;
18 million days of disease prevented;
2,442 lives saved.

GOAL: Develop and market at least $20 billion
in cumulative sales of “sustainable innovation
products,” which are products with a signiﬁcantly
reduced (>10%) environmental footprint versus
previous or alternative products.
PROGRESS: $2.05 billion

Reductions since July 2002:
Energy Usage -46%, CO2 Emissions -52%,
Waste Disposal -50%, Water Usage -51%.

Over 50 Years of Sustainability Progress:
P&G has been values-based since its founding in 1837. The timeline illustrated
below highlights sustainability progress over the last six decades.
1965
P&G publishes its
tenth environmental
safety paper tosupport new
biodegradability
test methods

1956
The ﬁrst environmental safety publicationis created at P&G
measuring surfactantsin rivers

1950s

1973
Publication of
the “Sturm Test,”
the forerunnerof the Ready
Biodegradability
Test

1970
P&G implements its
ﬁrst manufacturing
plant environmental
audit

1960s

1981
P&G co-founds
the Society ofEnvironmental
Toxicology andChemistry

1970s

1987
P&G environmental
stream facility begins
operation

1980s

HV[ZinVcYGZ\jaVidgn

1952
P&G establishes
the Procter &Gamble Fundfor the distribution of money
to U.S. charities

1964
The P&G
Environmental
Water Quality
Laboratory isestablished
1964
Switch tobiodegradable
anionic surfactant
LAS begins

1969
Instream biologicalmonitoring program
begins1971
P&G Safety andRegulatory isestablished as aseparate entity
from productdevelopment
1971
The P&G Corporate
Environmental Safety
Department is formed

1977
P&G Environmental
safety organization
formed in Europe(Brussels)

1983
P&G produces its
100th peer-reviewed
environmental
publication
1983
Debut of Triple
Concentrate Downy,
one of P&G’s ﬁrst
products to reducepackaging andwater use

1989
P&G commits$20 million
to assist thedevelopment of
U.S. compost
infrastructure

The Procter & Gamble Company

Strategy 4:
Employees

Strategy 5:
Stakeholders

Engage and equip all P&Gers to build
sustainability thinking and practices
into their everyday work.

Shape the future by working transparently with our stakeholders to enable
continued freedom to innovate in a
responsible way.

5

2006
P&G is National
Inventor of the Yearfor the design anddevelopment of PuR
puriﬁcation sachets

1992
P&G moves toelemental chlorinefree pulp for all of
the Company’s
paper products
1992
United Nations
World Environment
Center Gold Medal
recipient

1993
P&G commits tosustainable forestry
for sourcing pulp
1993
The ﬁrst P&G Annual
Global Environmental
Report is produced

2001
FTSE4Goodlaunched; P&G
listed every year
since inception

1999
P&G’s 500th
peer-reviewed
environmental
publication is
produced
1999
P&G forms a
corporate sustainability department andpublishes an annual
sustainability report

2002
Science-in-theBox Public Web
site launched

2004
P&G creates theChildren’s Safe
Drinking Water
program, using theunique PuR puriﬁcation sachets

1990s

1990
P&G articulates its
Company-wide
environmental
quality policy

1995
P&G pioneers
use of Life Cycle
Assessment todesign Municipal
Solid Waste
Management

A86
1991
P&G helps deﬁne
new ﬁeld of Life
Cycle Assessment

2005
Tide Coldwater andAriel Cool Clean
are introduced,
promoting lowtemperature washing2005
Downy Single Rinse
introduced, offering
water savings incritical regions

2007
P&G launches its
new Sustainability
Strategy andﬁve-year goals
2007
2X compacted
liquid detergentsdebut in the U.S.

2008
EPA awards P&G’s
Cincinnati corporate
headquarters with
the Energy Star
Certiﬁcation
2008
P&G receives theEuropean BusinessAward honoring
commitment
to corporate
sustainability

2000s

1997
P&G develops
Japan’s ﬁrst
environmental
exposure model for
consumer products
1997
Developed the
Geo-referenced
Regional Exposure
Assessment toolfor European rivers

2003
Led the developmentof guidelines forﬂushable products
published by The
Water Environment
Research Foundation(WERF)

2000
P&G ranked as a
Sector Leader in Dow
Jones Sustainability
Indexes (DJSI)

2005
P&G awarded
Stockholm Industry
Water Prize forproviding safe
drinking water
2005
P&G introduces its
global corporate
cause — Live, Learn
and Thrive

2007
P&G recognized by
EPA for Children’s
Safe Drinking Water
program
2007
P&G awarded theRon Brown Award
for Corporate
Leadership

THE

2008
OECD adopts P&G’s
laboratory biodegradation test series
2008
P&G delivers thebillionth liter of cleanwater in its Children’s
Safe Drinking Water
programwww.pg.com/sustainability

DEFINING
INNOVATION

We deﬁne innovation broadly, looking
for sustainability opportunities at
every touch-point along the path of
our products.

The Procter & Gamble Company

7

Two innovations, multiple beneﬁts
Laundry compaction
P&G seeks opportunities to innovate within every aspect of a product,from raw materials, manufacturing, customization and logistics tocustomers and consumers. Because of our integration and scale, innovations in one part of the cycle often spark innovations in other areas.
In 2007, we began to convert our North American liquid laundry
detergent portfolio to a “2X” concentrated formulation. The following
is an example of our multifaceted approach in action.

Product
Concentration

Through scientiﬁc innovation, wedeveloped a new formula thatdelivers more active ingredientsin every drop, allowing consumers
to use less.

Inventory
Efﬁciencies

Using new forecasting techniques,
we managed the product inventory
conversion at retail stores with a
new level of precision to reduce
waste.

Precise prediction

OLD CAPNEW CAP

New modeling tools allowed us
to better predict when retailcustomers would require newstock and manage the supply
chain accordingly.

One advance sparked
many beneﬁts.

LESS
WATER

LESS
EMISSIONS

The new formulas savemore than 500 million
liters a year.

The new products reduce
CO2 emissions by more than
100,000 metric tons a year.

LESS
PACKAGINGLESSSHIPPING

These smaller products
save more than
15,000 metric tons a year
in packaging materials.

The new size results inmore than 40,000 fewer
truck loads a year.

Remnant runout
This left very little old stock to
manage through remnant saleand donations; unsalable
product was managed down toan unprecedented low level.

Waste reduction
Accurate forecasting meantthat virtually all the productwe created was sold, resulting
in a substantial reduction in
unnecessary waste.

Today, we apply
these tools andtechniques to othersigniﬁcant productconversions.

www.pg.com/sustainability

INVESTING
IN INNOVATION

We invest in innovation to reduce
the environmental footprint of
our operations, affecting both
our facilities and our processes.
Innovating from the ground up
Building sustainable facilities
Our unique system for sustainably designing and building new
facilities — exempliﬁed by new facilities like the Beauty Careplant in Lodz, Poland, illustrated below — demonstrates multiple
areas of innovation in action.
Before building a new facility, we combine industry knowledge
with a proprietary 77-point process to evaluate key sustainability elements. Our analysis rates the facility’s potential impact on
CO2, energy, waste, water, and environmental quality. The
process covers the ﬁve areas shown below, as well as ongoing
operations once the facility is built.

FR O

N TA

GE

RO A

D

GARAGE

W

A

LK

W

AY

Site

Water

Materials

Systems

Lighting

In choosing a facility’s
location, we investigate
commuting options, local
ecosystems, and ways touse energy efﬁciently.

We make as few manmade changes as possible
to a site’s hydrologicalcycle, often building pondsthat collect storm waterand lessen discharge ﬂow
to local streams.

We select building materials that minimize environmental impact while
maximizing workplace
comfort and health.
Whenever possible, debris
from construction isrecycled rather than sent
to landﬁll.

Our facilities incorporate
passive systems when
feasible, helping maximize
natural elements forventilation and temperature
control. When active
systems are required,
we favor high-efﬁciency
equipment.

Along with designing ourfacilities to make use ofnatural light, we use
low-consumption lighting
equipment wheneverpossible.

The Procter & Gamble Company

9GVlBViZg^Vah!
EVX`V\^c\VcY:cZg\nManufacturing efﬁciently from the top down
Putting resources to good use;^c^h]ZYEgdYjXi
BVcj[VXijg^c\EgdXZhh

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d[VaabViZg^Vah

P&G’s investment in innovation goes far beyond our facilities.
It also extends to our highly productive use of material resources.
Upfront, we ﬁnd ways to minimize our inputs, using less raw
material for packaging while consuming energy more efﬁciently.
But our output is dramatic as well, with 96% of all materials
being converted into ﬁnished product.
The waste that is produced — which is mostly non-hazardous —is low. And much of it can be repurposed in useful ways.

LVhiZ

Examples of recycled waste use:'#(%GZXnXaZY$GZjhZY

LViZg:b^hh^dch=VoVgYdjh
Hda^YLVhiZ&#*-Cdc"GZXnXaZY

Cdc"=VoVgYdjh
Hda^YLVhiZ

6^g:b^hh^dch

Perfume: the sweet
smell of re-use

Paper: a by-productraises the roof

Soap: a second
chance for suds

At our manufacturing site for
perfume in Avenel, New Jersey,
we developed a new process
for blending scrap material for
reprocessing as an ingredientfor potpourri. As a result,annual generation of scrap
waste at the site has dropped
from 50,000 kg to zero.

In some P&G tissue and towel
plants, the paper “ﬁnes”—
a wet by-product of thepaper making process — arereclaimed for energy to run
the plant. The ﬁnes are also
used to manufacture housing
and rooﬁng tiles.

Bubbly wastewater from ourshampoo and liquid soap
plants has found new life ina secondary market. Today,
instead of becoming waste,
the mixture is sold and repackaged for use in automatic carwashes.

www.pg.com/sustainability

MANAGING
INNOVATION

We manage innovation withdiscipline, using science-based
tools to identify sustainability
opportunities for our products,from discovery through disposal
to potential reuse.

USE IN THE HOMEDISPOSALUSAGEDISTRIBUTION

MANUFACTURING

PACKAGING

LIFE CYCLEASSESSMENTMANUFACTURING

DISTRIBUTION

MATERIALS

PACKAGING

ENERGY ANALYSIS
MATERIALSDISPOSAL

Assessing impact
Comprehensive tools

Finding opportunity
Laundry energy usage

Managing innovation sustainably begins with the use ofcomprehensive analysis tools. One such tool, Life Cycle
Assessment (LCA), generates a complete environmental
footprint, extending beyond carbon impact to measure
total energy and water use and waste production. Also
included are the impacts of consumer use of our products,
as well as all emissions into the air, water and land. Thisdetailed review lets us pinpoint areas where our innovation
efforts can be most effective.

Our life cycle assessment of laundry detergent revealed thatone step consumed far more energy than any other: theheating of wash water during its use in the home. As such,
this step clearly offered the biggest opportunity for energy
reduction.
Field tests predicted that a family of four in the UK could
reduce its overall household electricity consumption by 3%
by reducing its wash temperature from 43.5°C to 30°C.
So our Ariel Cool Clean technology — which offers strong
cleaning performance at lower temperatures — presented
a promising opportunity for energy savings.

The Procter & Gamble Company

11

RESULTS

AWARENESS

Advertising

Web-basededucation

Third party organizations

Moving the market
Consumer campaign
Our “Turn to 30°” campaign in the UK began spreading
the word to consumers. Along with key product beneﬁts,
including energy savings and brilliant cleaning, the campaignemphasized another motivation: supporting the environment in a more sustainable way. P&G further managed thisinnovation through partnerships with celebrities, key NGOs,
region-speciﬁc climate and energy-focused third parties,
and a Web-based consumer education module.

58,00017%

metric tons
CO2 emissions
savedof households
now wash at
30°C

Making a differe
difference
enc
n e
and
Results and recognition
Managing innovation has resulted in signiﬁcant behavior
change among consumers. In the UK, 17% of households
now wash at 30°C, up from 2% in a similar 2002 survey.
Further, 27% of all UK Ariel users washed at 30°C in 2007,
twice the average of other leading brands.
The shift toward lower washing temperatures has brought
substantial beneﬁts to the environment. According tostatistics calculated and validated by The Energy Saving
Trust, 58,000 metric tons of CO2 emissions have been
prevented, saving 403,200 GJ of energy — enough energy
to light 2,500 UK villages.
Results in the Netherlands have been even more impressive.
In just over six months since launch — and when leveraged
with the Dutch Ariel “Draai Naar 30°” campaign — for theﬁrst time, 30°C is the most frequently used washing temperature in the Netherlands … an impressive 52%!
Along with getting results, “Turn to 30°” has also garneredwidespread recognition for excellence in responsible
marketing and leading-edge thinking. The campaign has
been honored by such organizations as the Marketing
Society, Business in the Community, the Green Awards,
SABRE, and Marketing Communications Consultants
Association (MCCA).

www.pg.com/sustainability

DELIVERINGINNOVATION

We deliver innovation through a
combination of visible productbased improvements and less visible
operations-based advancements.
We are inspired by consumers to deliver product upgrades that
improve their lives, maintain the value they want, and help
them to reduce their environmental impact. Charmin MegaRoll
and Bounty Select-a-Size are just two examples of many innovations these brands have made that make a difference in theseareas. But, other innovations take place beyond a consumer’sview, such as improvements in our manufacturing processes,
facilities, and logistics.

Visible improvements
Sustainable solutions
to consumer needs
Many innovations that are visible to consumers are also
inspired by them. Bounty consumers sought a paper towel
for small tasks that still required superior wet strength.
Our solution, Bounty Select-a-Size, features sheets that are
45% smaller than traditional Bounty — but still absorb spills
faster and are stronger when wet than other regular-sized
two-ply towels on the market. So thanks to Bounty Selecta-Size, consumers have an option for producing less waste.
When Charmin bath tissue consumers expressed a desire tochange the roll less often, we created Charmin MegaRoll,
which features four times as many sheets per roll than aregular roll of Charmin. Along with meeting consumer needs,
the product requires the use and disposal of fewer cardboard cores. In addition, the space-efﬁcient product allows
more tissue to ﬁt on a truck, saving on fuel consumption
and CO2 emissions associated with transportation.

1,000,000
consumers switching froma regular roll to Charmin
MegaRoll can save:

140

226,000

Million CoresPer Year

Kg of Plastic
Per Year

321,000
Liters of FuelPer Year

The Procter & Gamble Company

13

In Family Care over the past
ﬁve years, our North American
plants have:

ReducedEnergyLoweredC02 Emissions

28%

35%

Reduced
Waste

Reduced Water
Consumption

67%

15%

With
Bounty Select-a-Size,
consumers use
only what they need

Invisible advances
Energy and water efﬁciencies
for a smaller footprint
Looking forward, we are continuing our conservation
efforts within existing facilities. There are thousands ofprojects under way to identify innovative ways to conserve
energy and water, and reduce emissions.

Much of the energy used in papermaking is needed to dry
the paper. Heat in the form of steam and combustion gases
can be lost during this drying process. At our Mehoopany,
Pennsylvania facility, a proprietary process was developedthat enables the plant to recover this heat and save
422,000 GJ of energy and 13,600 metric tons of CO2
emissions per year. In comparison, the energy that will besaved by this project is greater than the site energy
consumption at 80% of our facilities around the world.

www.pg.com/sustainability

LEADINGINNOVATIONWe lead innovation by inspiring
our employees to take personal
responsibility for delivering oursustainability goals and leading
positive change, both inside andoutside the Company.
Making workplace habits more sustainable
P&Gers take the “R” for tomorrow
P&G employees in 26 countries celebrated Earth Day in April, kicking off
additional efforts to reduce, reuse and recycle at our ofﬁces and technicalcenters. By building innovative, dramatic displays showing the trueamount of paper, cups and water bottles we use each month, employees
were motivated to make changes.
In just a few months following these events, P&G employees havebegun to “Take the ‘R’ (Responsibility) for Tomorrow” by adopting
smarter workplace habits. Some highlights from the Cincinnati
World Headquarters:

ReduceReuse

RecycleWe have installed
new cutting-edge
videoconferencing
equipment, helping
reduce air travel.

Employees areencouraged to use
personal mugs, andnow receive abeverage discount for
using them insteadof disposable cups.

We have signiﬁcantly
increased ourrecycling of ofﬁce
paper.

The Procter & Gamble Company

15

Our social investments are focused on improving the lives ofchildren in need through Live, Learn and Thrive, our far-reaching
global cause. Leveraging the scale of our Company and thepassionate, skilled volunteerism of our employees, we are on
track to reach more than 250 million children by 2012.

A long-term commitment to education access
P&G Hope Schools
Thanks to P&G Hope Schools, a program in partnership with the China
Youth Development Foundation, children now have better access to
education in poverty-stricken rural areas of China. P&G China continued its
long-term commitment to the program this year, founding its 140th P&G
Hope School.

Answering a pressing need
P&G technology and a network of partners
More than one billion people in the developing world do not have accessto clean drinking water. As a result, thousands of children die every day.

To help drive this Live, Learn and Thrive initiative, P&G created innovative
partnerships with retail customers. This has enabled these retailers — alongwith more than 100 million shoppers annually — to participate in thecause and make signiﬁcant commitments to build Hope Schools with P&G.

uR,
Children’s Safe Drinking Water (CSDW) reaches these people through Pa water purifying technology developed by P&G and the U.S. Centers foruR packet quickly turns
Disease Control and Prevention (CDC). One small P10 liters of dirty, potentially deadly water into clean, drinkable water. The
packets can be used anywhere in the world, including areas affected bynatural disaster.

P&G Hope Schools have beneﬁtted over 100,000 children across China
in the last 12 years, and over 1,000 P&G China employees are actively
enrolled to support program activities.

uR packets on a not-forThis Live, Learn and Thrive program provides Pproﬁt basis. This year, with the help of our network of over 70 partners,
we delivered our one-billionth liter of clean drinking water.

Teaching healthy habits
Safeguard helps make hand washing
fun & effective

Protecting vulnerable babies
Pampers and UNICEF provide vaccines

Studies show that proper hand washing is one of the simplest and mostcost-effective ways to help keep children healthy. Safeguard and its healthpartners in the Philippines set out on a Live, Learn and Thrive effort known
as “Mission 5-5-5” — to teach 5 children every hour for the next 5 years
about hand washing with soap to protect against 5 common health threats:
diarrhea, cough, colds, pneumonia, and skin rashes. Similar programs arealso run in China, Pakistan and other developing nations, educating nearly
10 million primary school children each year on the necessity of handwashing and good hygiene practices.

Pampers has partnered with UNICEF on a Live, Learn and Thrive effort
with a goal to help eliminate maternal and neonatal tetanus, a preventable disease that claims the lives of 140,000 infants and 30,000 mothers
in developing countries each year — that’s one death every three minutes.
This international initiative began two years ago in Latin America and has
expanded to Western Europe, Japan and the U.S., providing funds formore than 50 million doses of vaccine.
Consumers are an integral part of the success of this program. For eachpurchase of specially marked packages of Pampers, P&G donated a
vaccine to UNICEF. Recently, Pampers committed to a three-year global
partnership between Pampers and UNICEF to help eliminate maternal
and neonatal tetanus in 46 remaining countries by 2012.

16

The Procter & Gamble Company

www.pg.com/sustainability

Resource & Waste Summary
The table below reports environmental statistics for Manufacturing Operations in the Global Business Units and Technical Centers.
Included are both Wella and Gillette sites. Table reﬂects divestiture of Western European Tissue Towel Business.
2008 Global Business Unit Detail (1) (absolute units x 1,000)

Totals (absolute units x 1,000)
2008

2007

2006

BeautyHealth &Well Being

Household
Care

Technical
Centers

23,187

21,742
79

20,660
65

5,239

3,404

14,544

0

139

90

468

0

983
53%

894
59%

375
48
22
17
77,681
2,876
89,688
1.73

PRODUCTION (metric tons)

Product Shipped
Raw Materials from Recycled Sources

697

WASTE ( metric tons )Generated Waste
Percent Recycled / Reused Waste

935
59%

139

175

602

19

52%

68%

63%

33%

305
21
27
16

81

48

171

11

4

1

24

1

5

5

12

1

1

2

13

0

78,0202,935
91,292
2.15

4,025

8,129

61,428

2,319

125

217

2,379

61

7,422

4,734

66,725

8,077

0.04

0.28

1.58

0.00

DISPOSED WASTE (metric tons)

Solid Waste — Non-Hazardous
Solid Waste — Hazardous
Efﬂuents (excluding water)
Air Emissions (2)

311
30
23
16

OTHER

Energy Consumption (gigajoules )Greenhouse Gas Emissions (metric tons) (3)Water Consumption (cubic meters)
SARA Releases (metric tons) (4)75,901
2,782
86,9581.90

1 metric ton = 1,000 kg = 2,205 lbs.
(1) Beauty includes segments Beauty and Grooming. Health and Well-Being includes segments Health Care and Snacks, Coffee and
Pet Care. Household Care includes segments Fabric Care and Home Care, Baby Care and Family Care. Technical Centers includes
each of the research centers that support the business units. 2008 numbers come from P&G manufacturing sites only, they do notinclude production from contract manufacturing operations.
(2) Air emissions include particulates, SO2, NOx, CO and VOC.
(3) Greenhouse gas emissions include CO2 from fuel combustion sources.
(4) Releases deﬁned in the U.S. Superfund Amendments and Reauthorization Act (SARA) by the U.S. Environmental Protection Agency.

Sustainable Innovation Products 2007–2008

PRODUCTREGIONINNOVATION

Liquid Laundry Compaction(Tide, Gain, Cheer, Era, Dreft)

North America

Formulation concentration delivered savings in water,energy, transportation, packaging

Powder Laundry Compaction(Daz, Mr. Proper, Ace, Ariel,Marseille, Gama)

Western Europe

Formulation concentration delivered savings in energy,transportation, packaging

Ariel Cool Clean

Central & Eastern Europe,
Middle East and Africa

Formulation to clean in cooler temperatures,saving energy

Downy Single Rinse

Latin America, ASEAN,
Australasia and India,
Central & Eastern Europe,
Middle East and Africa

Formulation change requires consumers to rinse only
once, reducing water usage

Braun Silk-épil Xpressive

GlobalRedesigned with more energy efﬁcient “Smart Plug”

Braun Series 7

Western Europe

Packaging redesigned to better ﬁt on shipping pallets,
reducing transportation

Crest Whitestrips

North America

Redesigned to reduce material waste

The paper utilized in the printing of this report is certiﬁed by SmartWood to the FSC Standards, which promotes environmentally appropriate, socially
beneﬁcial and economically viable management of the world’s forests. The paper contains a mix of pulp that is derived from FSC certiﬁed well-managed
forests; post-consumer recycled paper ﬁbers and other controlled sources.

Design: VSA Partners, Inc.

Products with a signiﬁcantly reduced (>10%) environmental footprint versus previous or alternative products

P&G at a Glance
Three billion times a day, P&G brands touch the lives of people aroundthe world. And P&G people work to make sure those brands live up to
their promise to make everyday life just a little bit better, now and forgenerations to come.
P&G is recognized as a leading global company, including a#5 ranking on Fortune’s “Global Most Admired Companies,” a#8 ranking on Fortune’s “America’s Most Admired Companies,”
the #2 ranking on Fortune’s “Top Companies for Leaders”
survey, the #2 ranking on Barron’s “World’s Most Respected
List,” a #8 ranking on Business Week’s list of “World’s Most
Innovative Companies,” listed on the Dow Jones Sustainability
Index through 2008, the “Advertiser of the Year” award at
the 2008 Cannes International Advertising Festival, and aconsistent #1 ranking within our industry on Fortune’s Most
Admired list for 23 of 24 total years and for 11 years in a row.

P&G ranks among the top companies for Executive Women(National Association for Female Executives), African Americans(Working Mother and Black Enterprise Magazines), andDiversity (Diversity Inc. Magazine).
Supplier diversity is a fundamental business strategy at P&G.
In 2008, P&G again spent over $1.9 billion with minorityand women-owned businesses. Since 2005, P&G has beena member of the Billion Dollar Roundtable, a forum of 14
corporations that spend more than $1 billion annually withdiverse suppliers.

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GBU

Reportable Segment

Key Products

Billion Dollar Brands

BEAUTY

BeautyCosmetics, Deodorants,
Hair Care, Personal Cleansing,
Prestige Fragrances, Skin Care
Blades and Razors,
Electric Hair Removal Devices,
Face and Shave Products,
Home Appliances
Feminine Care, Oral Care,
Personal Health Care,
Pharmaceuticals
Coffee, Pet Food, Snacks

Head & Shoulders,Olay, Pantene, Wella

Grooming(())

HEALTH AND
WELL-BEING'(

7ZVjin=ZVai]&LZaa"7Z^c\=djhZ]daY8VgZ

HOUSEHOLD
CARE

Health Care

Snacks, Coffee
and Pet Care
Fabric Care andHome Care
Baby Care andFamily Care

Air Care, Batteries, Dish Care,
Fabric Care, Surface Care
Baby Wipes, Bath Tissue, Diapers,
Facial Tissue, Paper Towels

Net Salesby GBU (1)(in billions)$ 27.8

Braun, Fusion,
Gillette, Mach3

Actonel, Always,
Crest, Oral-B
Folgers, Iams,
PringlesAriel, Dawn, Downy,
Duracell, Gain, Tide
Bounty, Charmin,
Pampers(1) Partially offset by net sales in corporate to eliminate the sales of unconsolidated entities included in business unit results.

$19.4

$37.7

© 2008 Procter & Gamble
00046003