Now & for Generations to Come2010 SUSTAINABILITY OVERVIEWAbout this publication

Contents

This is the twelfth year that P&G has reported on
its sustainability efforts.

CEO Statement
Leadership Statement
Product Innovation
Operations
Social Responsibility
Employee Engagement
Stakeholder Engagement
Sustainable Innovation Products
Resource & Waste Summary
P&G at a Glance
New Environmental Sustainability VisionThis publication details the progress we’ve madeon our 2012 goals, devoting a section to each of
our ﬁve strategies. It concludes with an overview
of P&G's new long-term environmental sustainability
vision and new 2020 sustainability goals.
To view our online report, which was prepared using
the Global Reporting Initiative’s (GRI) G3 Guidelines,
please visit www.pg.com/sustainability.

P&G has been a member of the FTSE4Good and
Dow Jones Sustainability Index (DJSI) since their inception.
In 2009, P&G was added to the Global 100 list of
the world’s most sustainable corporations.

Data in this report covers the period from July 1, 2009, throughJune 30, 2010. Financial information is given in U.S. dollars.

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The Procter and Gamble Company 1

For P&G, sustainability is a responsibility and an opportunity tomake improvements that matter, and to make life better for thegreatest number of lives. Our commitment begins with our Purpose,
Values and Principles, in which sustainability is the driving force.

Our Purpose is to improve lives,
now and for generations to come.

Our five sustainability strategies:

Strategy 1:
Products

Strategy 2:
Operations

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

Improve theenvironmental
profile of P&G’s
own operations.

Strategy 3:
SocialResponsibility
Improve children’s
lives through P&G’s
social responsibility
programs.

Strategy 4:
Employees

Strategy 5:
Stakeholders

Engage and equip
all P&G employees
to build sustainability
thinking andpractices into theireveryday work.

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

2 P&G 2010 Sustainability Overview

CEO Statement
P&G’s Purpose—to touch and improve lives, now and for generations
to come—inspires everything we do. It guides our strategic choices,
leads to bigger and better innovation, drives brilliant execution, andcompels us to make a difference in areas such as environmental andsocial sustainability.
This is important because our responsibility as a Company is an integral
part of our Purpose as a Company. We recognize and embrace the realitythat companies like ours must be a force for good in the world—but
being a force for good is not limited to philanthropy and disaster relief.
We are a force for good when we create products and services that
improve people’s lives…when we innovate and operate responsibly,
ethically, and with less environmental impact…when we create new
product formulations and new distribution models that make our
products more affordable…when we create jobs, pay taxes, and help
make our communities a better place to live and work.
In other words, we are a force for good when we integrate a
responsibility for improving lives into every aspect of our business andoperations. This is precisely how we approach sustainability at P&G.
Last year, for example, we updated our growth strategy to connect
it explicitly to our Company’s Purpose. This strategy—to touch andimprove the lives of more consumers in more parts of the world, more
completely—requires that we accelerate our already strong progressin sustainability, which we are doing. We recently announced a newlong-term environmental sustainability vision that includes:• Having zero consumer and manufacturing waste go to landfills• Designing products to delight consumers while maximizing theconservation of resources
This vision is stretching and we believe it will take us decades to achieve.
Yet, we are fully integrating it into our businesses and processes today.
It will influence the products we develop, how they are produced anddistributed, and the programs in which we make social investments.
To ensure we make steady progress toward this vision, we also recently
announced goals that we are committed to reach by 2020. They include
powering our operations with 30% renewable energy, and replacing
25% of our petroleum-derived raw materials with renewable materials
that are sourced sustainably. Each of these 10-year goals is detailed laterin this report.
Committing ourselves to a demanding vision and holding ourselves
accountable with clear, stretching and measurable goals is one important
way we will fulfill P&G’s Purpose. It captures our imagination andpassion. It focuses us on the people we serve—today and in the future.
And it motivates us to leverage strengths that set us apart—innovation,
consumer understanding and scale—to make a meaningful difference.
Together with a global network of external partners, we will continue
to touch and improve lives, now and for generations to come. This is our
Purpose. Our responsibility. And an incredibly inspiring opportunity.

• Powering our plants with 100% renewable energy• Using 100% renewable or recycled materials for all products
and packaging

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

Long-term Vision

100% 100% 0
renewable energy will
power our plants

renewable or recycledmaterials will be used forall products and packaging

consumer andmanufacturing waste
will go to landfills

The Procter and Gamble Company 3

Leadership Statement
With a foundation of over 50 years of heritage in sustainability,
in 2007 P&G declared a renewed strategy and established several
five-year goals targeted at improving the environmental profile ofour products and operations and advancing our social investment
programs. In 2009, we increased these goals in recognition of the
progress we had made.

P&G Report Card2012 Sustainability Goals
These goals, originally set in 2007, were increased in
March 2009. The goal for P&G Children’s Safe Drinking Water(CSDW) program was again increased in September 2009.

P&G has continued to deliver strong results against these goals.
• Relative to products, we have delivered $26.5 billion in sales ofsustainable innovation products against our goal of $50 billion by 2012.
• Relative to operations, we have decreased our water, energy, CO2
emissions and solid waste by 11–50% per unit of production against
our 2012 goal of 20%.
• Relative to social investments, we have provided 1.5 billion litersof clean drinking water against a 2012 goal of 4 billion and reached
210 million children in need through Live, Learn and Thrive against
a goal of 300 million.
 hile we are proud of these accomplishments, we know we need toW
do more. This is why P&G recently announced a new long-term visionin sustainability and new 2020 goals.
Achieving this new vision and these goals will require us to (1) increase
the depth at which sustainability is integrated into the rhythm of thebusiness, (2) accelerate the development of external expert partnerships,and (3) continue to ensure sustainability receives the highest attention
in the Company. Therefore, Bob McDonald will continue to serve as
the Sustainability Executive Sponsor and, in addition, we have createdthe P&G Global Sustainability Board. This board will be comprised of
the Global Technology, Product Supply, Brand Building and External
Relations Officers, and the North America Group President. This
group will be responsible for bringing to bear three of P&G’s corestrengths—consumer understanding, operational scale and innovation—thus better enabling us to achieve our ultimate long-term vision.
Reaching our new vision and goals will be challenging, and something weknow we cannot attain alone. We will continue to partner with anyone
who shares our principles and can bring new sustainability solutions toour business. And with the high caliber of 127,000 P&G employees whoare inspired to make a meaningful difference in the lives of people andthe world we share, I am confident we will reach our destination.

Strategy 1: Products
GOAL Develop and market at least $50 billion in cumulative
sales of “sustainable innovation products,” which are productsthat have an improved environmental profile.(1)PROGRESS(in billions of U.S. dollars)

Cumulative Sales
since July 2007

Cumulative sales of sustainable innovation products$ 26.5Strategy 2: Operations
GOAL Deliver an additional 20% 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 50%.
PROGRESS(percent reduction per unit production)

Since
July 2007

Since
July 2002

Energy Usage

-14%

-50%

CO2 Emissions

-11%

-53%

Waste Disposal

-50%

-55%

Water Usage

-16%

-55%

Strategy 3: Social Responsibility
GOAL Enable 300 million children to Live, Learn and Thrive.(2)Prevent 160 million days of disease and save 20,000 lives by
delivering 4 billion liters of clean water in our P&G Children’s
Safe Drinking Water program.(3)PROGRESSSinceJuly 2007

LIVE, LEARN AND THRIVE

Number of Children Reached210 million

CHILDREN’S SAFE DRINKING WATER

Len Sauers
Vice President, Global Sustainability

Liters of Clean Water Delivered1.5 billion

Days of Disease Prevented

60 million

Lives Saved

7,450(1) Sustainable Innovation Products are included if they have launched in market
since July 1, 2007, and have a >10% reduction in one or more of the following
indicators without negatively impacting the overall sustainability profile of the
product: A. Energy, B. Water, C. Transportation, D. Amount of material usedin packaging or products, E. Substitution of nonrenewable 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. Methodology for calculating diarrheal days and mortality was developedwith Population Services International and Aquaya Institute. Details are provided
in the 2010 Sustainability Report found at www.pg.com/sustainability.

4 P&G 2
2010
010 Sustain
01
Sustainability
nability
it Ov
Overview
vervieew

Strategy 1

Product
Innovation
Delivering Beneﬁts Without Trade-offs

We leverage our strength of
consumer understanding to deliver
sustainable innovations without
trade-offs in performance or value.
To do this, P&G takes a scientiﬁc
approach. We helped pioneer anapproach called Life Cycle Assessment,
which considers the environmental
footprint of a product across its
entire life cycle, from raw materials
to manufacturing, to consumer use
and disposal. By understanding theimpact at each phase of the total life
cycle, we can focus our sustainable
innovations where they will havethe most meaningful environmental
improvement.

The Procter and Gamble Company 5

Products with Purpose
Revolutionizing Diapers
Pampers with Dry Max is the brand’s biggest innovation in the last
25 years. Pampers conducted externally peer-reviewed Life Cycle
Assessments (LCAs)* that evaluated key environmental indicators for
products sold in North America and Europe. Both internal and external
LCAs showed that the sourcing and production of raw materials is thelife cycle stage contributing the most to the potential environmental
impact from disposable diapers. Pampers developed the Dry Max
technology, which allows for the removal of the air felt (paper pulp)
from the diaper core. This innovation has resulted in a diaper that is
20% thinner than before. The latest diapers from Pampers are one step
better for the environment and provide performance benefits to babies.
The thinner core helps provide freedom to move and play, while being
Pampers’ driest diaper.

“I’m not going to be around forever, but
my children are going to be here longer thanI will be, I hope. So I want to do as much forthe environment as I possibly can until mychild is toilet trained. The new Pampers Active
Fit with Dry Max is thinner—which is goodfor the environment, because it produces lesswaste. But it’s also nicer for the child because
it means less nappy bulk between their legs.
They fit really nicely, and help keep my Lucy
dry and happy. They’re great!”
Becki, United Kingdom

PROGRESS IN NUMBERS**

12-13% 8-11% 10%less solid waste acrossthe product life cycle

reduction inenergy demand

reduction in productweight*Pampers conducted LCAs that were compliant with ISO 14040/14044.
**Statistics are versus fiscal 2009 data from Pampers Cruisers in North America
and Pampers Active Fit in Europe. Variations are dependent on country
differences (e.g., energy rates, base packaging comparisons).

BECKI AND HER DAUGHTER LUCY, 19 MONTHS OLD

6 P&G 2010 Sustainability Overview

Reducing Packaging Materials

Designing Smarter Packaging

Innovative design applies to our products as well as our packaging.
Whether we use modeling and simulation to make a more lightweightbottle, or find a way to ship product without corrugated cases, we havebeen evaluating every aspect of our packaging and shipping materials tofind more sustainable solutions. Our holistic development process allows
us to see the far-reaching benefits product compaction creates. And by
partnering with new firms and working with existing suppliers throughour Connect & Develop program, we have uncovered ways to do morewith less. One innovation involves the use of alternative material feedstocks, such as renewable and sustainable sugarcane-derived plastic,
which will be launched on selected brands.

The Alldays brand in our Europe, Middle East and Africa region
created a new and elegant way to update its packaging while saving
ink, cardboard, pallets and shipping space. Previously, four Alldays
packages would occupy a fully printed cardboard box designed witha bottom-edge perforation, so store employees could remove the
top and keep the bottom tray for handling and in-store display. The
new design uses far less material. Its upgraded display tray includes
an easily detachable “hood” that protects the product in shipping
and requires no printing.

312,000
metric tons of packaging material
avoided since fiscal 2007

Previous

New

ALLDAYS PROGRESS IN NUMBERS

735

metric tons of paper
saved per year

Providing Consumer Education
In fiscal 2010, P&G launched a program in the U.S. called Future Friendly
which combines the power of trusted brands like Tide, Pampers, PUR,
Duracell and others to promote environmental responsibility and consumer
conservation education. The aim is to show consumers how—in a very
achievable way—to save water, waste and energy at home. For example,
nearly 80% of the energy used in a typical load of laundry comes fromheating water. But by using cold water, and a product like Tide Coldwater,
consumers can reduce energy consumption and their utility bills.
To date, Future Friendly has empowered over 50 million households toconserve resources, and it is partnering with National Geographic to create
educational materials focused on in-home conservation, with tools andtips to help reduce water use, energy consumption and waste.
First launched in the UK in 2007 and in Canada in 2008, Future Friendly
is rolling out across Western Europe in the summer of 2010.

368

fewer truck trips

80%

reduction in ink usage

The Procter and Gamble Company 7

Product Innovation
for generations
to comeEliminating PVC
Commonly found in “clamshell” and “blister”
packages, Polyvinyl Chloride (PVC) has beena widely used packaging material across muchof the consumer goods industry for many years.
PVC has also been the source of recurring
controversy regarding its disposal in household
solid waste incinerators, and its compatibility withplastics recycling. As a result, P&G began to avoid
the use of PVC in its packaging in the early 1990s.
It is a challenge to ﬁnd technically effective
and affordable alternatives to PVC for some
applications. However, in partnership with our
packaging suppliers, we have overcome manyof these barriers. Today, PVC represents lessthan 1.5% of the Company’s total use of plastic
packaging materials.
We expect to eliminate all remaining uses of
PVC in our packaging within the next few years.

8 P&G 2010 Sustainability Overview

Strategy 2

Operations
Taking an End-to-End Approachto Sustainability

Last year, we expanded our holistic
approach to sustainability acrossour entire supply chain to include
not only manufacturing and facility
construction and operations,but also ﬁnished product logistics
and supplier engagement.
In addition to continued
improvements on conservation
measures and eco-smart design,
we initiated projects in logistics thathave created signiﬁcant reductions
in our transportation footprint. In
May 2010, we also launched theSupplier Environmental Sustainability
Scorecard and rating process
to measure and improve theenvironmental performance ofour key suppliers.

The Procter and Gamble Company 9

Manufacturing Re-imagined.
Creating the Future of Manufacturing TodayDeveloped in partnership with several world-renowned architecturaland construction ﬁrms, P&G’s 77-Point Plan for eco-smart design andoperations is considered industry-leading in its breadth and scope. To
date, the plan has been used on more than 20 new sites, and will help us
plan an additional 19 new manufacturing plants over the next ﬁve years.
One of our largest manufacturing undertakings in 2010, the Milenio
grooming facility in Guanajuato, Mexico, has more than one million square
feet of manufacturing space. The Milenio project team “designed-in”
sustainability elements from the ground up. The facility water is 100%
recycled, with wastewater and rooftop rain water collected and treatedby a state-of-the-art on-site water treatment plant prior to reuse. Other
sustainable features include natural daylighting and energy-efﬁcientsystems and equipment such as water-cooled chillers, solar tracking
skylights, variable frequency pump drives, low energy ﬂuorescent lightﬁxtures, and premium efﬁciency motors on major equipment.
ABOVE: SOLAR TRACKING SKYLIGHTS SIGNIFICANTLYREDUCE ENERGY USAGESUSTAINABILITY MEASURES IN PLACE AT THE MILENIO FACILITY

100% 100%of facility wastewater
is treated on-siteof rooftop rainwater iscollected and reused10 P&G 2010 Sustainability Overview

Optimizing Our Logistics

Collaborating with Suppliers

Finding New Ways to Move Materials
and Products

Implementing a New Supplier Scorecard

We have optimized our efﬁciency in the logistics stage of the supply
chain by making changes to the rate, route, mode and method oftransportation. We have also focused on eliminating inefﬁciencies suchas loading and unloading delays, rush transport up-charges, dead legs
(empty trucks) and P&G production line stops. Control Tower, our logistics
optimization program, is a holistic approach to more seamlessly manage
the movement of our raw and pack materials, as well as ﬁnishedproduct, through the supply chain. More efﬁcient transportation means
an improved environmental proﬁle. The lead logistics provider centrally
controls and optimizes the product ﬂows, delivering maximum truck ﬁll
for every kilometer travelled in the fastest possible time, in an ecologicallyfriendly manner.

Central and Eastern Europe, Middle East
and Africa Control Tower
Turkey and Egypt were the ﬁrst countries in our CEEMEA region to adopt
the Control Tower logistics optimization effort. Results included a 58%
reliability improvement on inbound operations in Egypt, and a 68%
improvement in our ﬁnished product inbound operation in Turkey. This
meant fewer kilometers and reduced CO2 emissions. A greater focus on
using rail transport vs. trucks saved on energy costs and reduced CO2
emissions by 67,000 metric tons. We are currently expanding our Control
Tower program to our East Africa, Saudi, Eastern Europe, and South
Africa operations.
TRADITIONAL NETWORK
Customer visibility

P&G’s Supplier Environmental Sustainability Scorecard will assess
P&G suppliers’ environmental footprint and encourage continued
improvement by measuring energy use, water use, waste disposal andgreenhouse gas emissions on a year-to-year basis. The new scorecard
is a result of 18 months of work and close collaboration with P&G’s
Supplier Sustainability Board, which includes more than 20 leading
supplier representatives from our global supply chain. The scorecard
relies on accepted worldwide measurement standards and soundscience, including protocols from the World Resources Institute, theWorld Business Council for Sustainable Development and the Carbon
Disclosure Project. P&G’s goal in deploying the scorecard is to improve
supply chain collaboration around environmental issues, and encourage
the sharing of ideas and capabilities to deliver more sustainableproducts and services for our consumers.
The scorecard is speciﬁcally designed to focus on, and encourage,
year-on-year improvement—regardless of a supplier’s total size or thecurrent stage of its sustainability program. To date, it has been rolled out
to P&G’s key suppliers. We will determine further expansion once wehave evaluated ﬁndings from the ﬁrst phase of deployment. Suppliers
will have a full year to report their data before the rating can adversely
impact their standing with P&G. In the future, P&G will use the scorecard
to determine each supplier’s sustainability rating as part of P&G’s annual
supplier performance measurement process.
As part of our effort to create an initiative that can have far reaching
cross-industry impact, P&G suppliers are also encouraged to use thescorecard within their own supply chains. We hope this endeavor will
inspire a new industry standard. The scorecard will be “open code”
for use by any organization to help promote a working discussion anddetermine common supply chain evaluation processes across all industries.

Warehouse
Customs broker

SUPPLIERSCORECARD

Freight
forwarders
Carriers

ENERGY
WATER
Transload

Factory

WASTE

CONTROL TOWER NETWORKGHG EMISSIONSINNOVATION

Customer visibility

INNOVATION

Warehouse
Customs broker

WASTE

Lead
Logistics
ProviderFreight
forwarders

Transload

GHG EMISSIONS

Carriers

Factory

To view the scorecard, visit:www.pgsupplier.com/environmental-sustainability-scorecard.html.

The Procter and Gamble Company 11

Operations
for generations
to come
Shedding New Light on
Energy Solutions
Beyond our efforts to conserve energy, we use a
portfolio approach to determine the best energy
solutions for our operations. Both renewable andalternative energy are important parts of P&G’s
Sustainability program. This ﬂexibility enables us
to maximize efﬁciency and continue to decrease
our dependency on conventional petroleum-basedenergy sources.
Solar: We use solar energy at facilities in Germany,
Italy, and the U.S., and are evaluating additional
opportunities globally.
Wind: We are installing a wind turbine at a facility
in the Netherlands.
Biomass: We operate a wood biomass boiler in
the U.S.
Geothermal: We are evaluating geothermal
electrical generation in the U.S.
Co-Generation: We are operating six co-generation
plants that produce electricity and heat efﬁciently,
maximizing our use of existing energy resources.
Multiple co-generation plants are located in the U.S.,
Mexico, and Italy, with an additional plant underconstruction in Italy.

12 P&G 2010 Sustainability Overview

Strategy 3

SocialResponsibility
Initiating the First Moment of Touch

Social responsibility is a naturalexpression of our Purpose to touchand improve lives. We see it as aninvestment in the future that helps
both children and communities
thrive, now and for generations tocome. In addition to helping improve
lives in the communities where we
operate, we are reaching out to people
and communities across Asia, Latin
America and Africa where we do nothave operations or sell P&G brands.
These remote parts of the world withprofound social needs have often
become opportunities for us to extend
our “ﬁrst moment of touch” throughour social investments.
Here are just a handful of theinvestments P&G is making to touchand impro
rove lives throughough oalimproveour social
espon bilbility commitments.
ment
responsibility

The Procter and Gamble Company 13

Touching Lives in Times of Crisis
Our global disaster response plan allows us to act quickly and effectively. Our ﬁrst concern
is for the safety and welfare of our employees. Within hours, we are also in contact with ourhumanitarian partners to understand the scope and impact of the crisis, and how best to respond.
This year found the world facing a large number of natural disasters, including:

Haiti Earthquake, January 2010
P&G immediately started working with many disaster relief partners
to move 6 million PUR packets into Haiti. Dr. Greg Allgood, Directorof our P&G Children’s Safe Drinking Water program, traveled to Haiti tohelp teach ﬁeld personnel how to use and deploy PUR. P&G employees
and retirees around the world gave generous cash contributions, whichwere matched by the P&G Fund. Since many of our brands help makeevery day better for people, we also donated product from brands like
Pampers, Duracell, Always, Crest, Oral B and Pantene. These products
came from North America, Latin America, and Western Europe withshipments coordinated between P&G hubs and our humanitarian
partners by our Disaster Response Team.
RIGHT: A HAITIAN VOLUNTEER WITH ADRA HELPS UNPACKP&G PRODUCT DONATIONS.

Chile Earthquake, February 2010
To help the people of Chile, P&G employees began distributing PUR
packets, products and initiating monetary contributions. Many worked
to quickly repair and restore our facilities and operations so employees,
suppliers and customers were able to get back into the rhythm of
everyday life.
In addition, P&G employees participated in many volunteer activities,
including a trip made by 56 employees to Villa Prat, a town locatedthree hours from Santiago. While there, some of our employees
distributed building materials, while others played football, danced andpainted with the local children to give them and their parents a breakfrom the stress of living in temporary housing.
RIGHT: THE EARTHQUAKE LEFT LISSETTE, AGE 5, AND HER FAMILYWITHOUT SAFE DRINKING WATER.

LEFT: JANE, A 13-YEAR-OLD STUDENT WHO PARTICIPATED IN OUR ALWAYS
PUBERTY EDUCATION PROGRAM IN KENYA. CONDUCTED IN PARTNERSHIPWITH LOCAL PUBLIC EDUCATION AND HEALTH ORGANIZATIONS, THE
PROGRAM REACHES 3 MILLION AFRICAN GIRLS AND WOMEN EACH YEAR
WITH INFORMATION ABOUT PUBERTY, THE BASICS OF FEMININE HYGIENEAND SANITARY PROTECTION.

14 P&G 2010 Sustainability Overview

Living Our Purpose Every Day
P&G’s global cause — Live, Learn and Thrive — is improving life for children in need.
Every second of every day, the cause helps two children get off to a healthy start, gain
access to education, and build skills for life as they grow and develop.

Giving Underprivileged Children New Hope
Eighty percent of Chinese citizens live in rural areas, and like all parents,
they want their children to get a high quality education to better their
future. Through P&G Hope Schools, we are dedicated to making thisa reality.
Partnering with China Youth Development Foundation, P&G has
pledged to complete 200 Hope Schools. More than 100,000 children
in over 1,000 villages already beneﬁt from the program.
In 2010, P&G completed three new initiatives to further enhance andelevate P&G Hope Schools to better meet the needs of the children
we serve:• The “Happy Music Campaign” supports music facilities, music teachers’
training and a music festival across the P&G Hope Schools.
• The “Happy Sports Campaign” helped establish sports yards ina number of P&G Hope Schools.
• The “Hope Stars Campaign” mobilized 20 students and 10 teachers
to inspire students and teachers from all P&G Hope Schools.

Pampers and UNICEF
Since 2006, Pampers has partneredwith UNICEF to help eliminate
maternal & neonatal tetanus (MNT).
Maternal & neonatal tetanus is a deadly disease that claims the life of
one newborn baby every 9 minutes.* Even though it can be prevented
through vaccinations given to women of childbearing age to protect
both a mother-to-be and her unborn child, there are still 170 million
women and their babies at risk in 40 countries, many of whom live inthe hardest to reach areas of the world’s poorest countries and do nothave access to quality healthcare.
Since 2006, Pampers has been committed to help UNICEF eliminate
maternal & neonatal tetanus. To date, The Pampers-UNICEF “1 Pack =1 Vaccine” campaign is helping to protect 100 million women and theirbabies from MNT in 21 countries across two continents. Of thesecountries, 14 are expected to complete their MNT vaccination programsin 2010. The Pampers-UNICEF campaign continues to help protect
women and their babies from this deadly but preventable disease.
*Based on CHERG/ WHO estimates for annual MNT deaths, 2008, as published inLancet on 12.05.10.

Helping Children See a Whole New World
There is a tremendous need for eye care—particularly among children—
throughout the developing world. Eyeglasses and eye care are not
only costly but, more often than not, are simply unobtainable. So P&G
partnered with vision care leader Luxxotica to help children at our
Hope School in Anhui Province in China. Spearheaded by P&G employee
Brian Sasson, Luxottica helped create the community’s ﬁrst vision clinic.
Hundreds of students and community members underwent comprehensive vision screenings and, when needed, were outﬁtted with freeeyeglasses. Many are seeing their friends and family clearly for thevery ﬁrst time. P&G intends to continue its partnership with organizations
like Luxottica to bring additional services to children and community
members in our Hope School Villages.

“After I got home from a trip to China and was greeted at thedoor by my daughter in her eyeglasses, I realized I didn’t see any
children with glasses at the P&G Hope School I visited. I knew
this could be an important intervention for the school and thesurrounding community, so I reached out to Luxottica to invite
them to join in our efforts.”
P&G EMPLOYEE BRIAN SASSON WITH A STUDENT WHO RECEIVED
NEW GLASSES AT P&G’S HOPE SCHOOL CELEBRATION WITH LUXOTTICA—
JINZHAI COUNTY, ANHUI PROVINCE, CHINA.

The Procter and Gamble Company 15

Safeguarding Children’s Health ThroughHand Washing

Here are some examples of what Safeguard is doingaround the globe:

Sometimes, the simplest things can have a profound impact on
quality of life. Each year, 3.5 million children under the age of ﬁve
die from diarrheal disease and upper respiratory infections.

• Philippines: Safeguard educated one million children on theimportance of hand washing, and will be reaching anothermillion this year.

Health experts around the world agree that the simple act of handwashing with soap can help save millions of lives.

• Pakistan: more than six million children have received handwashing education in the last six years, with a goal of reaching
15 million by 2015.

P&G is bringing hand washing education to millions of children andhelping build hand washing facilities in schools. P&G’s Safeguard bar
soap is sold in countries where some of these issues are most profound,and it’s helping to make a positive impact.

• China: Safeguard is helping to build a “Great Wall of Health”
through hand washing education and hygiene infrastructure inschools. We are on our way to educating 100 million children
by 2015.
• Safeguard helped create “Global Hand Washing Day,”a worldwide program with hand washing education activities
in more than 80 countries, in 2009.

16 P&G 2010 Sustainability Overview

Clean Water: Saving Lives and Raising
Awareness
The P&G Children’s Safe Drinking Water program provides clean waterto people in some of the most impoverished places in the world.
Through our global network of partners, and leveraging the PUR Puriﬁerof Water technology, CSDW has provided 2.2 billion liters of safe
drinking water since the program began in 2004 (of this total, 1.5 billion
liters are included in our results reported against our 2007–2012 goal).
This year was especially rewarding, as we helped bring greater attention
to this life-and-death issue. In January 2010, we exceeded our goal toheighten awareness of the global clean water crisis through Summit
on the Summit: Kilimanjaro. A group of celebrities including Kenna,
Jessica Biel and Isabella Lucas climbed Mount Kilimanjaro with Dr. Greg
Allgood, Director of P&G’s Children’s Safe Drinking Water program.
Reaching 300 million people with more than 2 billion media impressions,the effort inspired people around the world to donate more than
50 million liters of clean water.

RIGHT: SUMMIT ON THE
SUMMIT TEAM POSES FOR
A PHOTO FROM THE TOP OF
MT. KILIMANJARO AFTER THEIR
19,340-FT. CLIMB TO FIGHT THE
GLOBAL CLEAN WATER CRISIS.

ion
2.2bibillllion

liters of clean water that P&G Children’s Safe
Drinking Water program has provided since itbegan in 2004

The Procter and Gamble Company 17

SocialResponsibility
for generations
to come
Saving a Life Every HourP&G is making a new commitment to “save a life
every hour” in the developing world by providing
more than 2 billion liters of clean drinking watereach year by the year 2020*. This bold commitment
will challenge us to accomplish each year what we
accomplished in total our ﬁrst six years of Children’s
Safe Drnking Water. We are conﬁdent that we canaccomplish this through a number of opportunities.
Several P&G brands are launching their own
programs to raise awareness about the global
water crisis. Programs such as Cover Girl’s Make-Up
for Clean Water, SKII’s Clear for Life and Pantene’s
Healthy Hair for Healthy Water will continue todrive the needed awareness of the world cleanwater crisis. A new plant under construction in
Singapore, set for completion in 2012, will havethe capacity to produce the PUR Packets needed
to fulﬁll this new annual commitment. Plans
are in place to scale up our number of partners
in more countries to help us reach more people
who need clean water in some of the mostremote parts of the world.
*Details on how “saving a life” totals are calculated are provided in the full2010 Sustainability Report found at www.pg.com/sustainability.

2bibillllion
ion litersof clean drinking water will be
provided each year by the year 2020*

18
18P&G
P&G2010
2010Sustainability
SustainabilityOverview
Overview

Strategy 4

Employee
Engagement
Empowering Employees to Lead the Way

P&G employees are critical enablersof the Company’s sustainability efforts.
We have programs around the world
designed to embed a sustainability
mindset into everyday work, andwe foster and encourage passionate
employees to create “Green Teams”
and integrate sustainability into theirwork and their workplace.

120

global ssites parparticipating
rticipa ng in Ear
Earth
h Day

The Procter and Gamble Company 19

Passionate Employees
A Global Celebration of Earth Day

Teams with a Green Spirit

On Earth Day every year, employees across the world participate insustainability activities. The 2010 theme was “Put Green To Work.”
Messages highlighted how employees could integrate sustainability
into P&G products and operations. Events included sustainability fairs,
bike-to-work events, community service days, print “strikes,” external
speakers and more. Additionally, employees were asked to makea personal pledge of how they would “put green to work” in theupcoming year.

An important component of integrating sustainability into ourbusinesses is to foster and encourage the work of passionate
employees. Many of our sustainability teams, or “Green Teams,” acrossthe globe were started by employees who want to make changes intheir workplace. Russ Speiller, for example, is one of many employees
who initiated a sustainability project around holistic sustainablethinking, which is having an important impact on product innovation.

“P&G has enabled me to leverage my passion
for sustainability and integrate it into mydaily work. This past year I’ve spearheaded
the creation of an R&D course that teaches
employees how to integrate holistic sustainablethinking into product innovation. I’m also
currently working on a project that explores
how to create worth from waste.”
RUSS SPEILLER, SENIOR ENGINEER,
HOUSEHOLD CARE NEW BUSINESS CREATION

LEFT: P&G HOME CARE EMPLOYEE PAT SOLL
WATERS THE RAISED-BED VEGETABLE GARDEN
AT FABRIC AND HOME CARE INNOVATIONCENTER IN CINCINNATI, OHIO.
RIGHT: RUSS SPEILLER TEACHES COLLEAGUESABOUT SUSTAINABLE PRODUCT INNOVATION.

20 P&G 2010 Sustainability Report
Overview

Creating Partnerships with Purpose
We partner with suppliers who bring expertise and innovative solutions to improve theenvironmental proﬁle of our facilities, enabling employees to work in an environmentallyconscious workplace.

Managing Printing with Xerox
Over the past year, P&G’s Global Business Services has beenworking with Xerox to simplify our global printing structure, bringing
a network of more reliable, better serviced and more capable printers
into the workplace. Now we have the ability to print anywhere in
the P&G print world, scan to e-mail, print two-sided, eliminate thebanner pages, and use smart color.

11million

fewer pages printed using Managed
Print Services in ﬁscal 2010

Making Facilities More Efﬁcient with
Jones Lang LaSalle
Jones Lang LaSalle, P&G’s property management partner at ofﬁces
and technical centers, has teams at each location responsible forenergy, water and waste reductions. Through this partnership, we
have implemented ongoing efforts aimed at educating employees
and inﬂuencing more sustainable workplace behaviors. In addition,
sustainability criteria are part of any future space assessment toensure new locations meet strict environmental standards.

PROGRESS IN NUMBERS*

8% 28%
reduction inenergy use

reduction in water use

Jones Lang LaSalle innovates and reapplies ways toconserve resources at P&G facilities. Here are a few examples
of programs:• Water consumption has been reduced through improved cleaning
processes and the use of steam in place of water, upgrades
to specialty water systems, and improved controls on building
process equipment.
• During the lunch hour at twelve sites across Asia, the lights turnoff to conserve energy.
• In the U.S. and UK, where nighttime cleaning had previously beennormal business, work hours for cleaning staff now begin earlier
in order to reduce the number of cleaning hours requiring lighting.
• At many sites around the world, reusable acrylic tumblers have
replaced disposable cups for fountain beverages.
• In Cincinnati, Ohio, reusable plastic containers have replaced
cardboard moving boxes.

*Results are versus ﬁscal 2007.

RIGHT: ONE WAY MARIA ISABELA GRUESO, P&G COLOMBIA, HAS
ADOPTED SUSTAINABLE WORKPLACE HABITS IS BY USING THE
READILY-ACCESSIBLE RECYCLE BINS AT P&G SITES AROUND THE WORLD.

The Procter and Gamble Company 21

Employee
Engagement
for generations
to comeIntroducing the New Global
Sustainability Board
Achieving P&G’s new long-term vision and 2020
goals will require a more seamless integration of
innovation, brand building, external relations andproduct supply. To better enable this integration,
the Global Sustainability Board is being formed
and will be sponsored by Bob McDonald, P&G
Chairman of the Board, President and Chief
Executive Ofﬁcer. He is joined by Len Sauers, Vice
President, Global Sustainability, Keith Harrison,
Global Product Supply Ofﬁcer, Chris Hassall,
Global External Relations Ofﬁcer, Marc Pritchard,
Global Brand Building Ofﬁcer, Bruce Brown,
Chief Technology Ofﬁcer and Melanie Healey,
Group President, North America. The group willfunction as the primary enabler of our program,
responsible for ensuring we infuse deeper anddeliberate coordination of sustainability thinking
into our business processes and practices as well
as serving as role models and sources of inspirationfor our employees. Len Sauers will run the board
and be accountable to Mr. McDonald.

22 P&G 2010 Sustainability Overview
22 P&G 2010 Sustainability Overview

Strategy 5

Stakeholder
Engagement
Fostering Partnerships that Accelerate Progress

While we are proud of the progress
we have made, we know that
we could not have come this far
without the help of many external
partners. We recognize that
continued partnership will be
key to future success.

The Procter and Gamble Company 23

A Global Approach to
Sustainable Packaging
The Global Packaging Project (GPP), spearheaded by the newly
founded Consumer Goods Forum (CGF), brings together global
manufacturers and retailers to improve collaboration across theconsumer goods industry. By developing a common language
and sustainability metrics, the project will improve communication
about the sustainability attributes of packaging, both between
companies and with consumers. P&G has been actively involved inthis project, testing its metrics through pilots with our customers,
including Kroger. The project report, entitled A Global Language
for Packaging and Sustainability, was launched in June 2010 at
a Summit in London.

IMPROVING COMMUNICATION

Package
Manufacturers

Consumers“Like P&G, Kroger is committed to improving
the sustainability of its products andpackaging. The Global Packaging Projectprovides the whole industry with a common
language on sustainability that will help
us all drive innovation and sustainability
improvements.”
ROGER TEMPLETON, DIRECTOR OF
CORPORATE BRANDS, KROGER

For more details of the Consumer Goods Forum and the
Global Packaging Project, see www.ciesnet.com.

Working toward
a commonlanguagefor sustainable
packaging

Retailers

Product
Manufacturers

24 P&G 2010 Sustainability Overview

Partnership to Save Energy
Improving the energy efﬁciency of our manufacturing operations has
been an ongoing focus area for P&G. This is why we have joined the U.S.
Department of Energy’s Save Energy Now LEADER Program. Save Energy
Now is a national initiative to drive a 25% reduction in industrial energy
intensity in 10 years. By pledging to reduce our energy to this degree,
P&G will have access to resources and expertise within the Department ofEnergy and their allied partners to help us advance our energy efﬁciency
efforts. Save Energy Now also represents an opportunity to network withand learn from over 50 other leading companies that have also signed theSave Energy Now Pledge.

“I commend P&G on becoming a Save Energy
Now LEADER. By taking this bold pledge toreduce its industrial energy intensity by
25% over ten years, P&G has establisheditself among the vanguard of forward-thinking
American companies as a leader in industrial
energy efficiency.”
LETTER FROM DR. STEVEN CHU, U.S. SECRETARY OF ENERGY,WELCOMING PROCTER & GAMBLE TO THE SAVE ENERGY NOWLEADER PROGRAM

To learn more about the Save Energy Now LEADER Program, visit:
http://www1.eere.energy.gov/industry/saveenergynow/leader.html.

A Vision for a New World in 2050
To gain broader insights of future trends and opportunities, P&G was
one of 29 global companies that took part in the Vision 2050 projectof the World Business Council for Sustainable Development (WBCSD).
A future vision of a sustainable world and a pathway of how to get there
was created. Conceptually, the 2050 Vision is intended to ensure that
we create a world where 9 billion people are living well—with enoughfood, clean water, sanitation, shelter, mobility, education and health—
all within the limits of the planet. The pathway to get there offers many
opportunities to do more with less, to create value, and to advance thehuman condition. This requires companies to work in partnership withother businesses, governments, academia and nongovernmentalorganizations to realize this ambitious goal.

For details of the 2050
Vision project and report,
see www.wbcsd.org.

“Companies like P&G need to look forward
to understand the opportunities, limitations
and sustainability challenges that lie ahead.
Having a clear vision of where they want
to go in terms of sustainability will be avaluable asset and a competitive advantage.”
PER SANDBERG, PROJECT DIRECTOR, WBCSD

The Procter and Gamble Company 25

Stakeholder
Engagement
for generations
to comeWorking with WWF to Renew
Our Renewables“P&G’s commitment to use renewablesugarcane-derived plastic in its leading global
beauty product packaging is an important
step forward in its efforts to improve theenvironmental profile of its products. We
applaud this announcement as part of theirleadership in finding innovative solutions tothe sustainability challenges facing theworld today.”
JASON CLAY, SENIOR VICE-PRESIDENT OF MARKEM
MARKET
TRANSFORMATION, WWF-US:
WWF-USWWF and P&G recently announced a Global
Partnership aimed at encouraging sustainableproduction and consumption. This partnershipbrings together the world’s largest global
environmental NGO and the world’s largest
consumer goods company, both committed to
improving sustainability. The three-year partnershipwill focus initially on sustainable production,
including energy and water conservation in P&G
plants, and on sustainable sourcing of materials for
P&G products, including renewable forest products
and palm oil. As we move to using more renewablematerials, particularly materials such as pulp andpalm oil, we need to ensure that production
does not lead to loss of natural ecosystems, withassociated loss of biodiversity. Our sustainable
forestry policy already requires us to source pulp
only from certiﬁed sustainable operations. P&G’s
Family Care business has been a member of WWF’s
Global Forest & Trade Network—North America
for over a year, and we plan to extend and broaden
our joint work in this area. In addition, we areworking to ensure that we source palm oil andderderivatives only from conﬁrmed responsible andsustsustainable sources by 2015. This partnershipis hhelping us accelerate progress in innovation
as w
ev
o introcewell,l, as evidenced
by the plan to
introducesuga
cane-deme of ousugarcane-derived
plastic into someourBea
Beautyy packa
packaging.

26 P&G 2010 Sustainability Overview

Sustainable Innovation Products 2009 – 2010
Products that have a signiﬁcantly reduced (>10%) environmental footprint versus previous or alternative products without negatively impacting
the overall sustainability proﬁle of the product.
PRODUCTREGIONINNOVATION

Pampers with Dry Max

North America,
Western Europe

Reduction in material usage

DuracellGlobalReduction in material usage

Nice 'n Easy Perfect 10

North America,
Western Europe

Packaging reduction

Cascade ActionPacs

North America

Packaging reduction

Crest Pro-Health Rinse

North America

Packaging reduction

Oral-B Professional Care(power toothbrush)

North America,
Western Europe

Packaging reduction

Alldays

Europe, Middle
East, and Africa

Packaging reduction

Scope Outlast

North America

Dose compaction, packaging reduction

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

2010 Global Business Unit Detail (1) (absolute units x 1,000)

2010

2009

2008

BEAUTY AND
GROOMING

HEALTH AND
WELL-BEING

HOUSEHOLD
CARE

24,21322,93623,187

2,667

1,770

19,777

0

0

784

1,080

697

86

57

640

0

0

TECHNICAL DISTRIBUTION
CENTERSCENTERS

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

1,048

911

935

151

121

740

11

25

Percent Recycled / Reused Waste

63%

63%

59%

60%

73%

62%

42%

76%

4

Disposed Waste (metric tons)
Solid Waste — Non-Hazardous

287

270

311

50

26

207

5

Solid Waste — Hazardous

45

27

30

3

5

34

1

2

Efﬂuents (excluding water)

34

24

23

6

1

27

1

0

Air Emissions (2)

15

19

16

1

1

13

0

0

71,84270,64675,901

6,254

5,872

56,984

2,238

494
14

Other
Energy Consumption (gigajoules )Greenhouse Gas Emissions (metric tons)
Water Consumption (cubic meters )SARA Releases (metric tons) (4)

(3)

2,795

2,625

2,782

173

161

2,388

59

80,91478,556

86,972

7,525

3,698

61,975

7,716

0

1.83

1.91

1.90

0.02

0.25

1.56

0.00

0.00

1 metric ton = 1,000 kg = 2,205 lbs.
(1) Health and Well-Being includes the segments Health Care, Feminine Care, Pet Care and Snacks. Household Care includes the segments Fabric Care, Home Care, Duracell, Baby Care, andFamily Care. Technical Centers includes each of the research centers that support the business units. Distribution Centers includes facilities that distribute ﬁnished product. 2010 numbers
come from P&G manufacturing sites only; they do not include production from contract manufacturing operations.
(2) Air emissions include particulates, SO2, NOx, CO and VOC.
(3) Greenhouse gas emissions resulting from fuel combustion sources.
(4) Releases deﬁned in the U.S. Superfund Amendments and Reauthorization Act (SARA) by the U.S. Environmental Protection Agency.

The Procter and Gamble Company 27

P&G at a Glance
Today, P&G serves about four billion people around the world. And P&G people work to make sure our brands
live up to their promise to make everyday life just a little bit better, now and for generations to come.
P&G is recognized as a leading global company, including a #6 ranking
on Fortune’s “Global Most Admired Companies,” the #2 ranking on
Fortune’s “Top Companies for Leaders” survey, the #3 ranking on
Barron’s “World’s Most Respected Companies List,” a #12 ranking on
Bloomberg Businessweek’s list of “World’s Most Innovative Companies,”
a ranking among Bloomberg Businessweek/Hay Group’s Twenty Best
Companies for Leadership, a #2 ranking on the AMR Research Supply
Chain Top 25 and the only company to have been in the Top 5 for six

consecutive years, inclusion in the Dow Jones Sustainability Index since
its inception in 1999, a #13 ranking on the list of the Global 100 Most
Sustainable Corporations in the World, and a consistent #1 ranking
within our industry on Fortune’s Most Admired list for 25 of 26 total
years and for 13 years in a row. P&G was recognized during the year
by SymphonyIRI Group as the most innovative manufacturer in the
consumer packaged goods industry for the last decade — presenting
the Company with its “Outstanding Achievement in Innovation” award.

2010 Net Sales
By geographic region

By business segment

By market maturity(% of total business segments)

15%

34%
48%
18%

Beauty & Grooming
Health and Well-Being
Household Care
These results exclude net
sales in Corporate.

13%
21%

% of Net
Earnings*

Beauty24%

23%

Grooming

10%

13%

Health Care

14%

16%

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

4%
30%

3%
28%

18%

17%

Reportable Segment

Beauty and Grooming

Household Care

42%

% of
Net Sales*

GBU

Health and Well-Being

9%

North America
Western Europe
Central & Eastern Europe,
Middle East & Africa
Latin America
Asia

34%
66%

Developed
Developing

Categories

Billion Dollar Brands

Cosmetics, Female Antiperspirant and
Deodorant, Female Personal Cleansing,Female Shave Care, Hair Care, Hair Color,
Hair Styling, Pharmacy Channel, Prestige
Products, Salon Professional, Skin Care
Beauty Electronics, Home Small
Appliances, Male Blades and Razors,
Male Personal Care
Feminine Care, Gastrointestinal,
Incontinence, Rapid Diagnostics,
Respiratory, Toothbrush, Toothpaste,
Water Filtration, Other Oral Care
Pet Care, Snacks
Additives, Air Care, Batteries, Dish Care,
Fabric Enhancers, Laundry, Surface Care
Baby Wipes, Diapers, Paper Towels,
Tissues, Toilet Paper

Head & Shoulders, Olay,
Pantene, Wella* Percent of net sales and net earnings from continuing operations for the year ended June 30, 2010 (excluding results held in Corporate).

Braun, Fusion, Gillette,
Mach3
Always, Crest, Oral-B

Iams, Pringles
Ace, Ariel, Dawn, Downy,
Duracell, Gain, Tide
Bounty, Charmin,
Pampers

28 P&G 2010 Sustainability Overview

New Environmental Sustainability Vision
Recently, P&G announced a new long-term environmental sustainability vision. We developed this vision over thecourse of a year, partnering with external experts and soliciting input from hundreds of P&G employees at all levels
and functions. As part of P&G’s strategy to grow responsibly, we will work towards a long-term environmental
sustainability vision that includes:Long-term Product End-Points
Using 100% renewable or recycled materials for all products
and packaging. A renewable resource is simply defined as one thatis produced by natural processes at a rate comparable to its rate of
consumption. P&G already uses significant amounts of renewablematerials in our products and packaging. However, we still use many
nonrenewable materials, such as those derived from petroleum andother fossil fuels. Our vision is to use materials that are renewably
sourced. Materials will come from traditional sources such as biomass
and agricultural products, and research is also ongoing to understandhow raw materials can be derived from biological processes such as
fermentation. In addition to being renewably sourced, these materials
will also be sustainable, meaning their production will not result in
the destruction of critical ecosystems, loss of habitat for endangered
species, or other detrimental impacts on the environment or humancommunities.
Having zero consumer waste go to landfills. In the developed world,waste can be disposed of in four ways: recycling, composting, wasteto-energy, and landfills. The first three give value to the waste, whereas
waste that ends up in landfills has no value. In the developing world,waste is primarily disposed in uncontrolled dumps, where it also has novalue. Our vision is to have all waste end up in a valued waste stream(e.g., recycling, composting, waste-to-energy without toxic emissions).
Designing products to delight consumers while maximizing theconservation of resources. Life Cycle Assessment (LCA) has shownthat for some major P&G products, the largest environmental impact
occurs when consumers use our products. As the world’s largest
consumer packaged goods company, this represents a significant
and unique opportunity for P&G to have a meaningful impact insustainability. We will continue to enable consumers to reduce theirenvironmental footprint by designing products that meet their needs
relative to value and performance and, in addition, allow them toconserve resources. Our cold water laundry detergents (Tide Coldwater,
Ariel) are examples. In those instances where consumer habit changes
are required to deliver the environmental benefit, consumer education
will be part of the solution.

Long-term Operational End-Points
Powering our plants with 100% renewable energy. Renewableenergy sources include those based on sunlight, wind, biomass, tides,
and geothermal heat rather than fossil fuels. Our vision is that all energy
powering our plants will be sourced from on-site renewable sources,
or power from the grid that is generated by renewable sources.
Emitting no fossil-based CO2 or toxic emissions. P&G is not
an energy intensive company, so our CO2 emissions today are relatively
small. However, by moving to 100% renewable energy to power ourplants, we will drive this number even lower by eliminating petroleumbased CO2. In the future end state, what little CO2 emissions we will
have can be expected to come only from renewable biomass. In addition,
we envision an end state where all other reportable emissions are
driven to zero.
Delivering effluent water quality that is as good as or better
than influent water quality with no contribution to water scarcity.
P&G continually improves our operations to preserve the quality of waterin the communities in which we operate. We will also ensure sustainable
water management by both our operations and consumer use of our
products. This commitment includes water reduction goals, use of newtechnologies, product innovation using a Life Cycle Assessment, andsiting decisions using a watershed approach, which looks holistically atwater supply where a plant could be built.
Having zero manufacturing waste go to landfills. Our manufacturing
waste can be disposed of in four ways: recycling, repurposing, wasteto-energy, and landfills. The first three give value to the waste, whereas
waste that ends up in landfills has no value. Our vision is to have all
manufacturing waste end up in a valued waste stream (e.g., recycling,
repurposing, waste-to-energy without toxic emissions).

Why Now?
P&G is the largest consumer packaged goods company in the world
today. This very fact, coupled with our Purpose-inspired Growth
Strategy—improving the lives of more consumers, in more parts of theworld, more completely—requires us to continue to grow responsibly.
And it also requires us to accelerate our commitment to helping solve
some of the world’s sustainability challenges.

Being Accountable
As this vision will take decades to achieve, we have also announced
new 10-year goals, which we will reach by 2020, that will set us
on an incremental path toward our long-term vision. These goals will
help us focus on efforts where we can make the most meaningful
difference in environmental sustainability. The 2020 sustainability goals
are in addition to our existing 2012 goals.

2020 Environmental Sustainability Goals

Products
Replace Petroleum-BasedMaterials with Sustainably
Sourced Renewable Materials

25%*

Cold Water Washing

70% of total washingmachine loads

Packaging Reduction

20% (per consumer use)*

2010–2020
Scorecard
Consumer Solid Waste
Pilot studies in both developed
and developing markets tounderstand how to eliminate
landﬁlled/dumped consumer
solid waste

Operations
Renewable Energy Powering
Our Plants

30%

Manufacturing Waste<0.5% (disposed)

Truck Transportation Reduction 20% (km/unit of volume)**vs. 2010 baseline© 2010 Procter & Gamble