2 0 0 0

S U S T A I N A B I L I T Y

R E P O R T•

E X E C U T I V E

S U M M A R Y

Statement of Purpose
Executive Summary
We will provide products and services

Visionimprove the lives of the world’s

W

consumers. As a result, consumers

Since then, sustainable development has dominatedglobal public policy discussions, but the discussions havebeen dominated by HOW things are done — environmental
management systems, ISO 14001, codes of conduct andstewardship, Total Quality, waste elimination,transparency and reporting, audits and verifications.
Further, the focus on HOW we do things has limited theeconomic benefit discussion for business to a bottom-line
issue — cost avoidance and reduction.
HOW we do our business is, and always will be,
important to us. P&G has always conducted its businesswith integrity. We have long been leaders in employee
benefits, workplace safety, environmental managementof our operations, ethical business practices andinvolvement in our communities. Designing waste outof our products and processes has saved us more than$505 million in the past six years.
As we explore the role of sustainability in P&G’s future
top line, we are also furthering our focus on WHAT we
do — our products, services and the way we bring themto market. This ensures we address consumer needs andaspirations in more innovative ways, developing entirely
new products and services, selling to new consumers,
and creating new markets.

• Understanding the opportunities and the challenges

in bringing to market innovations that addressenvironmental and social issues.

will reward us with leadership sales, profit

Despite the long lead time from idea to market
introduction, we have been able to obtain some earlyexperience in bringing such innovations to market. We
did this by leveraging innovations already in our productpipeline when we embarked on a sustainability strategy
just a year ago. A. G. Laf ley and John Pepper discuss
several of these early innovations — Nutri Delight for
micronutrient deficiency, Fit for cleaning fruits andvegetables, and Actonel for postmenopausal osteoporosis.

TRUST

T

his report was prepared in accordance with the
Global Reporting Initiative’s (GRI’s) Sustainability
Reporting Guidelines on Economic, Environmental andSocial Performance, June 2000. The mission of the
GRI is to promote international harmonization in thereporting of relevant and credible corporate environmental, social and economic performance information
to enhance responsible decision making. GRI pursues
this mission through a multi-stakeholder process ofopen dialogue and collaboration in the design andimplementation of widely applicable sustainability
reporting guidelines. GRI has not verified the contentsof this report, nor does it take a position on thereliability of information reported herein. For further
information about GRI, please visit:www.globalreporting.org

George D. Carpenter
Director, Corporate
Sustainable Development

This is the Executive Summary of thesecond Sustainability Report for P&G’s
worldwide operations. Data in the reportcovers the period from July 1, 1999,
through June 30, 2000.
The full report is available on P&G’s
web site: www.pg.com/sr
Please visit P&G’s corporate web site forthe latest P&G news and shareholder andcareer information:www.pg.com

E X E C U T I V E

Visit http://www.pg.com/sr for the full report.

PASSIONFOR
WINNING

While we are still learning how sustainability becomesintegral to our business, this past year has seen several
meaningful milestones on this journey, both in our
products and in our policies and management systems.

We Show Respect for All Individuals
The Interests of the Company and theIndividual are Inseparable

Last fall, we market tested a new drink product that wasdeveloped jointly with UNICEF. It has the potential tosignificantly address the problem of micronutrient deficiency,
which results in blindness for 2.8 million children, a 10 to
15 percent decrease in IQ, birth defects, stillbirths,
congenital deafness, and increased risk of both maternal
and fetal morbidity and mortality. We will continue tolearn how to best bring innovations such as this to market
this fiscal year.

We are Strategically Focused in Our Work
Innovation is the Cornerstone of Our Success
We are Externally Focused
We Value Personal Mastery
We Seek to be the Best
Mutual Interdependency is a Way of LifeA new product with the potential to significantly reduce
food-borne disease and contamination is Fit, a fruit andvegetable rinse that removes 98 percent more residue andwax than just water. In 1999, we saw acquisition of thePuR water filtration business, which holds great potential
for the availability worldwide of clean drinking water. In
2000, we received regulatory approval in both Europe andthe United States for Actonel, a prescription drug for thetreatment and prevention of postmenopausal osteoporosis.

Editor: Chris Smith, Newcastle upon Tyne, U.K.
Core Report Team: Corey Snyder, Cincinnati,
Ohio, USA; Debbie White, Cincinnati,
Ohio, USA; Robin Tollet, Cincinnati, Ohio,
USA; Bea Buyle, Brussels, Belgium;
Paul van der Mensbrugghe, Brussels,
Belgium; Charles Peng, Kobe, Japan;
Joaquin Zepeda, Caracas, Venezuela.
Design: Andy Ruttle, Ruttle Design Group, Inc.,
Cincinnati, Ohio, USA.

This past year, we completed a major review of ourcorporate policies and have taken several steps to assure
our policies are totally aligned with our core values. These
policies are published in a booklet, P&G – Our Values andCode of Conduct, that is available on our web site(www.pg.com). In 1999, we were among the first
supporters of the Global Sullivan Principles on corporatesocial responsibility. We are committed to their success increating a better quality of life for the world’s citizens.

The report team wishes to thank all the individuals
throughout the Company who contributed information, stories and data to this report.

FRONT COVER: In the Philippines,
P&G and UNICEF collaborated withlocal government units to build community water facilities in 10 areas overa period of three years. The water
facilities include showers, toilets,
laundry areas and public wells.

E-mail: sustainrep-im@pg.com

S U M M A R Y
0013-6464

With a year’s experience now behind us, we remain firmly
committed to that opportunity to improve lives now and in
the future.

Principles

Corporate Sustainable Development
Two Procter & Gamble Plaza
TN-02, MS-28
Cincinnati, Ohio 45202 USA
Fax: (513) 983-5226•

ust over a year ago, P&G shifted from a narrow focus
on environmental quality to the more holistic concept ofsustainable development — the integration of environment,social equity and economic development. We seesustainable development, or sustainability, as closelyaligned with our Company’s Statement of Purpose, to“…provide products and services of superior quality andvalue that improve the lives of the world’s consumers.”

PEOPLE OWNERSHIPINTEGRITY

We are not saying we have sustainability figured out.
We do not! Unfortunately, there are painfully few
examples of companies successfully building their futureon the concept of sustainability. There are at least as
many failures as there are successes. We are exploring
new, uncharted territory and learning as we go. We
remain committed to the belief that through ourinnovation and deep understanding of consumers’ needs
and aspirations, we can help create “a better quality oflife” for everyone, both today and for future generations.

R E P O R T

LEADERSHIP

we live and work to prosper.

References to trademarked products in this report
are to trademarks owned by and registered to
The Procter & Gamble Company.

S U S T A I N A B I L I T YJCore Values

shareholders, and the communities in which

This report was printed on 50% recycled paper, 10% post-consumer.
© 2000 The Procter & Gamble Company. All rights reserved.

CEO and Chairman’s Statement

REPORTand value creation, allowing our people, ourWe are focusing on several initial steps:• Embracing a more aspirational definition ofsustainability to stimulate innovation. Sustainability“is about ensuring a better quality of life foreveryone, now and for generations to come.”• Focusing sustainability-driven innovation on the twoareas where P&G can contribute most to improving
quality of life — Water and Health & Hygiene.

2 0 0 0SUSTAINABILITY

Sustainable development... is a very
simple idea. It is about ensuring abetter quality of life for everyone,
now and for generations to come.

of superior quality and value that

Sustainability... It’s Both WHAT We Do and HOW We Do It
hen the concept of sustainable development
was first unveiled in 1987, it was a radical idea
— that environment and development are synergistic toeach other, creating the wealth necessary to addresssocial equity issues of poverty and disease that plagued,
and still plague, much of the developing world.

2000

Visit http://www.pg.com/sr
for the full report.

2 0 0 0S U S T A I N A B I L I T Y

Fiscal 1999/2000 was a difficult year for theCompany and for our many employees around theworld. Earnings came in below the goals we hadoriginally established and believed we could achieve,and our stock suffered. In our drive to meet changes
in the marketplace — globalization, the Internet,
consolidation among retailers — we tried to do toomuch too fast. We now have a strong plan tore-establish the balance between top-line revenue
growth and bottom-line earnings growth.
We are confident about P&G’s future because theunderlying strength of our Company remains solid.
• We have a long history of “doing what is right.” In
March 2000, Business Ethics magazine ranked P&G
among the top five in its 100 Best Corporate Citizens list.
• Our top brands command more than a fourth of theirmarkets; we have global leadership in seven productcategories; and we have a steady stream of new
innovations to build our future.
• P&G people have a passion for winning and leading
innovation, and that passion is our greatest strength.
We look forward to the future — for the world’s consumers,for our employees and retirees, and for the communities inwhich we live and work.

A. G. Lafley
President and Chief Executive

John E. Pepper
Chairman of the Board

R E P O R T•

E X E C U T I V E

Visit http://www.pg.com/sr for the full report.

S U M M A R Y

2 0 0 0

S U S T A I N A B I L I T Y

R E P O R T•

E X E C U T I V E

S U M M A R Y

Statement of Purpose
Executive Summary
We will provide products and services

Visionimprove the lives of the world’s

W

consumers. As a result, consumers

Since then, sustainable development has dominatedglobal public policy discussions, but the discussions havebeen dominated by HOW things are done — environmental
management systems, ISO 14001, codes of conduct andstewardship, Total Quality, waste elimination,transparency and reporting, audits and verifications.
Further, the focus on HOW we do things has limited theeconomic benefit discussion for business to a bottom-line
issue — cost avoidance and reduction.
HOW we do our business is, and always will be,
important to us. P&G has always conducted its businesswith integrity. We have long been leaders in employee
benefits, workplace safety, environmental managementof our operations, ethical business practices andinvolvement in our communities. Designing waste outof our products and processes has saved us more than$505 million in the past six years.
As we explore the role of sustainability in P&G’s future
top line, we are also furthering our focus on WHAT we
do — our products, services and the way we bring themto market. This ensures we address consumer needs andaspirations in more innovative ways, developing entirely
new products and services, selling to new consumers,
and creating new markets.

• Understanding the opportunities and the challenges

in bringing to market innovations that addressenvironmental and social issues.

will reward us with leadership sales, profit

Despite the long lead time from idea to market
introduction, we have been able to obtain some earlyexperience in bringing such innovations to market. We
did this by leveraging innovations already in our productpipeline when we embarked on a sustainability strategy
just a year ago. A. G. Laf ley and John Pepper discuss
several of these early innovations — Nutri Delight for
micronutrient deficiency, Fit for cleaning fruits andvegetables, and Actonel for postmenopausal osteoporosis.

TRUST

T

his report was prepared in accordance with the
Global Reporting Initiative’s (GRI’s) Sustainability
Reporting Guidelines on Economic, Environmental andSocial Performance, June 2000. The mission of the
GRI is to promote international harmonization in thereporting of relevant and credible corporate environmental, social and economic performance information
to enhance responsible decision making. GRI pursues
this mission through a multi-stakeholder process ofopen dialogue and collaboration in the design andimplementation of widely applicable sustainability
reporting guidelines. GRI has not verified the contentsof this report, nor does it take a position on thereliability of information reported herein. For further
information about GRI, please visit:www.globalreporting.org

George D. Carpenter
Director, Corporate
Sustainable Development

This is the Executive Summary of thesecond Sustainability Report for P&G’s
worldwide operations. Data in the reportcovers the period from July 1, 1999,
through June 30, 2000.
The full report is available on P&G’s
web site: www.pg.com/sr
Please visit P&G’s corporate web site forthe latest P&G news and shareholder andcareer information:www.pg.com

E X E C U T I V E

Visit http://www.pg.com/sr for the full report.

PASSIONFOR
WINNING

While we are still learning how sustainability becomesintegral to our business, this past year has seen several
meaningful milestones on this journey, both in our
products and in our policies and management systems.

We Show Respect for All Individuals
The Interests of the Company and theIndividual are Inseparable

Last fall, we market tested a new drink product that wasdeveloped jointly with UNICEF. It has the potential tosignificantly address the problem of micronutrient deficiency,
which results in blindness for 2.8 million children, a 10 to
15 percent decrease in IQ, birth defects, stillbirths,
congenital deafness, and increased risk of both maternal
and fetal morbidity and mortality. We will continue tolearn how to best bring innovations such as this to market
this fiscal year.

We are Strategically Focused in Our Work
Innovation is the Cornerstone of Our Success
We are Externally Focused
We Value Personal Mastery
We Seek to be the Best
Mutual Interdependency is a Way of LifeA new product with the potential to significantly reduce
food-borne disease and contamination is Fit, a fruit andvegetable rinse that removes 98 percent more residue andwax than just water. In 1999, we saw acquisition of thePuR water filtration business, which holds great potential
for the availability worldwide of clean drinking water. In
2000, we received regulatory approval in both Europe andthe United States for Actonel, a prescription drug for thetreatment and prevention of postmenopausal osteoporosis.

Editor: Chris Smith, Newcastle upon Tyne, U.K.
Core Report Team: Corey Snyder, Cincinnati,
Ohio, USA; Debbie White, Cincinnati,
Ohio, USA; Robin Tollet, Cincinnati, Ohio,
USA; Bea Buyle, Brussels, Belgium;
Paul van der Mensbrugghe, Brussels,
Belgium; Charles Peng, Kobe, Japan;
Joaquin Zepeda, Caracas, Venezuela.
Design: Andy Ruttle, Ruttle Design Group, Inc.,
Cincinnati, Ohio, USA.

This past year, we completed a major review of ourcorporate policies and have taken several steps to assure
our policies are totally aligned with our core values. These
policies are published in a booklet, P&G – Our Values andCode of Conduct, that is available on our web site(www.pg.com). In 1999, we were among the first
supporters of the Global Sullivan Principles on corporatesocial responsibility. We are committed to their success increating a better quality of life for the world’s citizens.

The report team wishes to thank all the individuals
throughout the Company who contributed information, stories and data to this report.

FRONT COVER: In the Philippines,
P&G and UNICEF collaborated withlocal government units to build community water facilities in 10 areas overa period of three years. The water
facilities include showers, toilets,
laundry areas and public wells.

E-mail: sustainrep-im@pg.com

S U M M A R Y
0013-6464

With a year’s experience now behind us, we remain firmly
committed to that opportunity to improve lives now and in
the future.

Principles

Corporate Sustainable Development
Two Procter & Gamble Plaza
TN-02, MS-28
Cincinnati, Ohio 45202 USA
Fax: (513) 983-5226•

ust over a year ago, P&G shifted from a narrow focus
on environmental quality to the more holistic concept ofsustainable development — the integration of environment,social equity and economic development. We seesustainable development, or sustainability, as closelyaligned with our Company’s Statement of Purpose, to“…provide products and services of superior quality andvalue that improve the lives of the world’s consumers.”

PEOPLE OWNERSHIPINTEGRITY

We are not saying we have sustainability figured out.
We do not! Unfortunately, there are painfully few
examples of companies successfully building their futureon the concept of sustainability. There are at least as
many failures as there are successes. We are exploring
new, uncharted territory and learning as we go. We
remain committed to the belief that through ourinnovation and deep understanding of consumers’ needs
and aspirations, we can help create “a better quality oflife” for everyone, both today and for future generations.

R E P O R T

LEADERSHIP

we live and work to prosper.

References to trademarked products in this report
are to trademarks owned by and registered to
The Procter & Gamble Company.

S U S T A I N A B I L I T YJCore Values

shareholders, and the communities in which

This report was printed on 50% recycled paper, 10% post-consumer.
© 2000 The Procter & Gamble Company. All rights reserved.

CEO and Chairman’s Statement

REPORTand value creation, allowing our people, ourWe are focusing on several initial steps:• Embracing a more aspirational definition ofsustainability to stimulate innovation. Sustainability“is about ensuring a better quality of life foreveryone, now and for generations to come.”• Focusing sustainability-driven innovation on the twoareas where P&G can contribute most to improving
quality of life — Water and Health & Hygiene.

2 0 0 0SUSTAINABILITY

Sustainable development... is a very
simple idea. It is about ensuring abetter quality of life for everyone,
now and for generations to come.

of superior quality and value that

Sustainability... It’s Both WHAT We Do and HOW We Do It
hen the concept of sustainable development
was first unveiled in 1987, it was a radical idea
— that environment and development are synergistic toeach other, creating the wealth necessary to addresssocial equity issues of poverty and disease that plagued,
and still plague, much of the developing world.

2000

Visit http://www.pg.com/sr
for the full report.

2 0 0 0S U S T A I N A B I L I T Y

Fiscal 1999/2000 was a difficult year for theCompany and for our many employees around theworld. Earnings came in below the goals we hadoriginally established and believed we could achieve,and our stock suffered. In our drive to meet changes
in the marketplace — globalization, the Internet,
consolidation among retailers — we tried to do toomuch too fast. We now have a strong plan tore-establish the balance between top-line revenue
growth and bottom-line earnings growth.
We are confident about P&G’s future because theunderlying strength of our Company remains solid.
• We have a long history of “doing what is right.” In
March 2000, Business Ethics magazine ranked P&G
among the top five in its 100 Best Corporate Citizens list.
• Our top brands command more than a fourth of theirmarkets; we have global leadership in seven productcategories; and we have a steady stream of new
innovations to build our future.
• P&G people have a passion for winning and leading
innovation, and that passion is our greatest strength.
We look forward to the future — for the world’s consumers,for our employees and retirees, and for the communities inwhich we live and work.

A. G. Lafley
President and Chief Executive

John E. Pepper
Chairman of the Board

R E P O R T•

E X E C U T I V E

Visit http://www.pg.com/sr for the full report.

S U M M A R Y

2 0 0 0

S U S T A I N A B I L I T Y

R E P O R T•

E X E C U T I V E

S U M M A R Y

Statement of Purpose
Executive Summary
We will provide products and services

Visionimprove the lives of the world’s

W

consumers. As a result, consumers

Since then, sustainable development has dominatedglobal public policy discussions, but the discussions havebeen dominated by HOW things are done — environmental
management systems, ISO 14001, codes of conduct andstewardship, Total Quality, waste elimination,transparency and reporting, audits and verifications.
Further, the focus on HOW we do things has limited theeconomic benefit discussion for business to a bottom-line
issue — cost avoidance and reduction.
HOW we do our business is, and always will be,
important to us. P&G has always conducted its businesswith integrity. We have long been leaders in employee
benefits, workplace safety, environmental managementof our operations, ethical business practices andinvolvement in our communities. Designing waste outof our products and processes has saved us more than$505 million in the past six years.
As we explore the role of sustainability in P&G’s future
top line, we are also furthering our focus on WHAT we
do — our products, services and the way we bring themto market. This ensures we address consumer needs andaspirations in more innovative ways, developing entirely
new products and services, selling to new consumers,
and creating new markets.

• Understanding the opportunities and the challenges

in bringing to market innovations that addressenvironmental and social issues.

will reward us with leadership sales, profit

Despite the long lead time from idea to market
introduction, we have been able to obtain some earlyexperience in bringing such innovations to market. We
did this by leveraging innovations already in our productpipeline when we embarked on a sustainability strategy
just a year ago. A. G. Laf ley and John Pepper discuss
several of these early innovations — Nutri Delight for
micronutrient deficiency, Fit for cleaning fruits andvegetables, and Actonel for postmenopausal osteoporosis.

TRUST

T

his report was prepared in accordance with the
Global Reporting Initiative’s (GRI’s) Sustainability
Reporting Guidelines on Economic, Environmental andSocial Performance, June 2000. The mission of the
GRI is to promote international harmonization in thereporting of relevant and credible corporate environmental, social and economic performance information
to enhance responsible decision making. GRI pursues
this mission through a multi-stakeholder process ofopen dialogue and collaboration in the design andimplementation of widely applicable sustainability
reporting guidelines. GRI has not verified the contentsof this report, nor does it take a position on thereliability of information reported herein. For further
information about GRI, please visit:www.globalreporting.org

George D. Carpenter
Director, Corporate
Sustainable Development

This is the Executive Summary of thesecond Sustainability Report for P&G’s
worldwide operations. Data in the reportcovers the period from July 1, 1999,
through June 30, 2000.
The full report is available on P&G’s
web site: www.pg.com/sr
Please visit P&G’s corporate web site forthe latest P&G news and shareholder andcareer information:www.pg.com

E X E C U T I V E

Visit http://www.pg.com/sr for the full report.

PASSIONFOR
WINNING

While we are still learning how sustainability becomesintegral to our business, this past year has seen several
meaningful milestones on this journey, both in our
products and in our policies and management systems.

We Show Respect for All Individuals
The Interests of the Company and theIndividual are Inseparable

Last fall, we market tested a new drink product that wasdeveloped jointly with UNICEF. It has the potential tosignificantly address the problem of micronutrient deficiency,
which results in blindness for 2.8 million children, a 10 to
15 percent decrease in IQ, birth defects, stillbirths,
congenital deafness, and increased risk of both maternal
and fetal morbidity and mortality. We will continue tolearn how to best bring innovations such as this to market
this fiscal year.

We are Strategically Focused in Our Work
Innovation is the Cornerstone of Our Success
We are Externally Focused
We Value Personal Mastery
We Seek to be the Best
Mutual Interdependency is a Way of LifeA new product with the potential to significantly reduce
food-borne disease and contamination is Fit, a fruit andvegetable rinse that removes 98 percent more residue andwax than just water. In 1999, we saw acquisition of thePuR water filtration business, which holds great potential
for the availability worldwide of clean drinking water. In
2000, we received regulatory approval in both Europe andthe United States for Actonel, a prescription drug for thetreatment and prevention of postmenopausal osteoporosis.

Editor: Chris Smith, Newcastle upon Tyne, U.K.
Core Report Team: Corey Snyder, Cincinnati,
Ohio, USA; Debbie White, Cincinnati,
Ohio, USA; Robin Tollet, Cincinnati, Ohio,
USA; Bea Buyle, Brussels, Belgium;
Paul van der Mensbrugghe, Brussels,
Belgium; Charles Peng, Kobe, Japan;
Joaquin Zepeda, Caracas, Venezuela.
Design: Andy Ruttle, Ruttle Design Group, Inc.,
Cincinnati, Ohio, USA.

This past year, we completed a major review of ourcorporate policies and have taken several steps to assure
our policies are totally aligned with our core values. These
policies are published in a booklet, P&G – Our Values andCode of Conduct, that is available on our web site(www.pg.com). In 1999, we were among the first
supporters of the Global Sullivan Principles on corporatesocial responsibility. We are committed to their success increating a better quality of life for the world’s citizens.

The report team wishes to thank all the individuals
throughout the Company who contributed information, stories and data to this report.

FRONT COVER: In the Philippines,
P&G and UNICEF collaborated withlocal government units to build community water facilities in 10 areas overa period of three years. The water
facilities include showers, toilets,
laundry areas and public wells.

E-mail: sustainrep-im@pg.com

S U M M A R Y
0013-6464

With a year’s experience now behind us, we remain firmly
committed to that opportunity to improve lives now and in
the future.

Principles

Corporate Sustainable Development
Two Procter & Gamble Plaza
TN-02, MS-28
Cincinnati, Ohio 45202 USA
Fax: (513) 983-5226•

ust over a year ago, P&G shifted from a narrow focus
on environmental quality to the more holistic concept ofsustainable development — the integration of environment,social equity and economic development. We seesustainable development, or sustainability, as closelyaligned with our Company’s Statement of Purpose, to“…provide products and services of superior quality andvalue that improve the lives of the world’s consumers.”

PEOPLE OWNERSHIPINTEGRITY

We are not saying we have sustainability figured out.
We do not! Unfortunately, there are painfully few
examples of companies successfully building their futureon the concept of sustainability. There are at least as
many failures as there are successes. We are exploring
new, uncharted territory and learning as we go. We
remain committed to the belief that through ourinnovation and deep understanding of consumers’ needs
and aspirations, we can help create “a better quality oflife” for everyone, both today and for future generations.

R E P O R T

LEADERSHIP

we live and work to prosper.

References to trademarked products in this report
are to trademarks owned by and registered to
The Procter & Gamble Company.

S U S T A I N A B I L I T YJCore Values

shareholders, and the communities in which

This report was printed on 50% recycled paper, 10% post-consumer.
© 2000 The Procter & Gamble Company. All rights reserved.

CEO and Chairman’s Statement

REPORTand value creation, allowing our people, ourWe are focusing on several initial steps:• Embracing a more aspirational definition ofsustainability to stimulate innovation. Sustainability“is about ensuring a better quality of life foreveryone, now and for generations to come.”• Focusing sustainability-driven innovation on the twoareas where P&G can contribute most to improving
quality of life — Water and Health & Hygiene.

2 0 0 0SUSTAINABILITY

Sustainable development... is a very
simple idea. It is about ensuring abetter quality of life for everyone,
now and for generations to come.

of superior quality and value that

Sustainability... It’s Both WHAT We Do and HOW We Do It
hen the concept of sustainable development
was first unveiled in 1987, it was a radical idea
— that environment and development are synergistic toeach other, creating the wealth necessary to addresssocial equity issues of poverty and disease that plagued,
and still plague, much of the developing world.

2000

Visit http://www.pg.com/sr
for the full report.

2 0 0 0S U S T A I N A B I L I T Y

Fiscal 1999/2000 was a difficult year for theCompany and for our many employees around theworld. Earnings came in below the goals we hadoriginally established and believed we could achieve,and our stock suffered. In our drive to meet changes
in the marketplace — globalization, the Internet,
consolidation among retailers — we tried to do toomuch too fast. We now have a strong plan tore-establish the balance between top-line revenue
growth and bottom-line earnings growth.
We are confident about P&G’s future because theunderlying strength of our Company remains solid.
• We have a long history of “doing what is right.” In
March 2000, Business Ethics magazine ranked P&G
among the top five in its 100 Best Corporate Citizens list.
• Our top brands command more than a fourth of theirmarkets; we have global leadership in seven productcategories; and we have a steady stream of new
innovations to build our future.
• P&G people have a passion for winning and leading
innovation, and that passion is our greatest strength.
We look forward to the future — for the world’s consumers,for our employees and retirees, and for the communities inwhich we live and work.

A. G. Lafley
President and Chief Executive

John E. Pepper
Chairman of the Board

R E P O R T•

E X E C U T I V E

Visit http://www.pg.com/sr for the full report.

S U M M A R YFinancial Highlights (Millions of dollars except per-share amounts)

Profile of P&G

Key Indicators
Key Sustainability Focus Areas

markets approximately 300 brands of consumer products to nearly 5 billion consumers in morethan 140 countries. The products include laundry detergents, toothpastes, shampoos, feminine hygiene
products, pharmaceuticals, snacks, diapers, cosmetics and cold remedies. These products are best
known by their brand names: Tide, Ariel, Crest, Pantene Pro-V, Always, Whisper, Didronel, Pringles,
Pampers, Olay and Vicks.

O

ur sustainability focus continues to be Waterand Health & Hygiene. We have chosen
these two major areas as they are applicable
across all seven of the Company’s global business
units and the core drivers for sustainability:
economic development, social equity andenvironmental protection. While P&G intends tofocus on Water and Health & Hygiene, theCompany will not forget its long tradition of:• Doing what is right for consumers, employees,
shareholders and communities where it
operates.
• Building sales and profit growth in a sociallyand environmentally responsible manner.
• Increasing diversity within its workforce.
• Contributing to a more educated population.
• Maintaining high standards of health, safety
and environmental protection for its products
and operations throughout the world.

P&G’s worldwide headquarters is located in Cincinnati, Ohio, USA. The Company has on-the-ground
operations in more than 70 countries and employs 110,000 people worldwide.
P&G is a publicly owned company. Its stock is listed and is traded on the following exchanges: New
York, Cincinnati, Amsterdam, Paris, Basle, Geneva, Lausanne, Zurich, Frankfurt, Brussels and Tokyo.
As of July 21, 2000, there were 291,965 Common Stock shareholders of record, including participantsin the Shareholder Investment Program. Five billion shares of Common Stock have been authorized.
About 1.31 billion shares were outstanding as of June 30, 2000.
This is the second Sustainability Report for P&G’s worldwide operations. Data in this report covers theperiod from July 1, 1999, through June 30, 2000. Financial information is given in U.S. dollars.

As part of P&G’s Organization 2005 initiative to optimize resources to fit a growing
global business and to accelerate innovation and growth, the Company began
operating its business through Global Business Units (GBUs), effective July 1, 1999.
• Fabric & Home Care
• Baby Care
• Feminine Care
Paper Group• Tissues & Towel• Health Care
• Beauty Care
• Food & Beverage

Key Brands
Fabric & Home Care
ACE BLEACH AND
PREWASHARIEL
BOUNCECASCADE
CHEER
DASH
DAWN
DOWNY
DRYEL
ERA
FAIRY
FEBREZE
FIT
JOY

LENOR
MR. CLEAN
TIDE
SWIFFERSUNNY DELIGHTSPIREECLIPSEFeminine Care
ALWAYSLINESTAMPAX
WHISPER
Food & Beverage
CRISCOFOLGERSJIFMILLSTONE
OLEAN
PRINGLES

Baby CareBABYSANDODOTLUVS
PAMPERSPAMPERS BABY
WIPES

Health CareACTONELASACOLBLEND-A-MED
CREST
DIDRONEL
MACROBIDMETAMUCILNYQUIL/DAYQUILPEPTO-BISMOLSCOPEVICKS FORMULA 44
VICKS VAPORUB

Beauty Care
COVER GIRLIVORYMAX FACTOR
OLAY
OLD SPICEPANTENE PRO-V
PERT PLUS
REJOICESAFEGUARD

Major Impacts Associatedwith Products

%Male
59

Economic Development• Shareholder Value• Employment• Taxes, Fees and Contributions

Management
All Other Employees (Administrative, Technicaland Plant Technicians)

1999/2000$28,292,768

Total

1997/98

BBC

BC

FHC

FC

FB

HC

TT

Packaged Product Shipped
Raw Materials from
Recycled Sources
Packaging Used
Packaging Material from
Recycled Sources

15,229476

14,644380

14,436
400

1,281
0

1,165
0

6,914
0

639
0

2,656
0

789
0

1,782
476

1293
444

1,375
490

1,367
455

70
27

122
25

585
242

57
19

288
81

99
22

72
28

146
67%

59
50%

146
61%

67
79%

136
60%

29
37%

296
40%

317
12
39
19

271
27
31
20

324
12
37
20

45
0.3
1
1

20
3
3
0.9

37
7
7
3

13
0.7
0.1
0.1

30
0.01
18
5

10
0.7
5
1

162
0.6
5
7

Energy Consumption (105 GJ)
1,080
Water Consumption (MM cubic meters) 87.0
SARA Releases (1,000 tons)*
1.9

967
83.4
1.6

947
ND
1.9

90
7.1
0

38
3.7
0.01

281
14.1
1.5

35
0.4
0

107
10.7
0.1

30
2.1
0.04

499
48.8
0.2

1998/99$27,585,008

Occupational Health & Safety Data
Past three years’ global data on two key metrics forworker health and safety:

Disposed Waste
Solid Waste — Non-Hazardous
Solid Waste — Hazardous
Effluents (Excluding Water)
Air Emissions

19.2

39.7

39.9

39.5

1997/98$26,614,350

P&G and its employees have a long-standing commitment to being good citizens and neighbors inall the places where we do business around the world. We believe we have a responsibility to society to use its resources — money, people and energy — wisely. We satisfy our financial commitment through support for a wide range of educational, health, social service, cultural, civic andenvironmental organizations.

Waste

Tissues & Towel
BOUNTYCHARMIN
PUFFS
TEMPO

18.5

This year’s total contribution reflects a 2.6 percent increase in spending vs. the 1998/1999 level. In
addition, with the implementation of the Company’s Organization 2005 initiative, we did not compile
global contributions data.

Total

893
53%

18.8

1999/00 1998/99 1997/98
33.7
33.1
32.5

The contributions made by The Procter & Gamble Fund and Corporate Contributions in North America
for the past three years are provided in the following table:

1998/99863
56%

1999/00 1998/99 1997/98
15.9
15.8
15.6

Philanthropic Contributions

1999/2000

879
55%

Open Minds Program

Dash Missione Bontà Ospedale Amico

I

I

n November, 1999, P&G and UNICEF launchedOpen Minds, a special program targeted to support and educate children across sevencountries in ASEAN/India. Across theregion, P&G targets to raise up to $5
million over the next three years to
help children develop and grow to realize their full potential.

%Female41

This global data does not yet include plant technicians in the United States, United Kingdom and
Latin America; more complete data is expected to be available early next year. Global data is being developed in a new system consistent with the Company’s Organization 2005. Thus, historic global data
is not available for comparison. The percentages of minority and female employees in the United States
are shown in the following table:% Minorities% Female

Production

Generated Waste
Percent Recycled/Reused Waste

Sustainability in Action

Social Equity• Health• Hygiene• Education

1999/2000 Global Business Unit Details

SKII
SECRETVIDAL SASSOON
ZEST

1997/98$37,154$10,203$1,928$3,780$2.74$30,966$5,765$12,236

P&G expects its workforce to become increasingly more diverse. This is a global policy, and programs
are in place for continuous improvement in all regions. Global reporting of enrollment by gender isshown in the following table:
Global Enrollment 1999/2000

Environment• Resource Use (Materials and Energy)• Water• Waste and Emissions

All waste units are in thousands of metric tons unless otherwise noted. 1 ton = 1,000 kg = 2,205 lbs.

Measure1998/99$38,125$10,845$2,075$3,763$2.75$32,113$6,231$12,058

Diversity Data — Global Enrollment

Manufacturing Waste & Cost Summary}

1999/2000$39,951$12,483$1,994$3,542$2.61$34,194$8,916$12,287

Net Sales
Marketing, Research & Administrative Expenses
Income Taxes
Net Earnings
Basic Net Earnings Per Common ShareTotal Assets
Long-Term Debt
Shareholders’ Equity

Total Incident Rate
(injury and illness per 100 employees)
1999/2000
1998/99
1997/98
0.8
0.7
0.8

Other

Total Lost Workday Case Rate(lost & restricted workday cases per 100 employees)
1999/2000
1998/99
1997/98
0.4
0.3
0.4

* Releases defined in the U.S. Superfund Amendments and Reauthorization Act by the U.S. Environmental Protection Agency.
NOTE: BBC - Baby Care; BC - Beauty Care; FHC - Fabric & Home Care; FC - Feminine Care; FB - Food & Beverage; HC - Health Care; TT - Tissues & Towel

Summary of Violations andInterventions
Past three years’ global data on environmental,transportation, and worker health and safety violations and interventions:
1999/2000 1998/99
48
46$13,400 $33,250

NumberFines

Several external stakeholders joined
us in these efforts. The customer andsupplier partners of P&G pledged their support
for this project. Saatchi & Saatchi Advertisingprovided the creative materials, and P&G’s media
partners (several satellite TV channels) also extended their support to communicate the cause ofOpen Minds to the general public. Not to be left
behind, the employees of P&G voluntarily contributed one day’s salary (about $7,500) towards theOpen Minds fund.

n 1999, Dash dedicated its efforts in Italy
to a fund-raising project, Missione Bontà
Ospedale Amico, aimed at improving the quality of life for children in Italian pediatric hospitals, consistent with the UNICEF principles
for hospital qualification. The whole project
has been handled in conjunction with ABIO (Association for Children in
Hospitals), an organization that, for 20 years,
has given help to hospitalized children andtheir parents.
The funds raised have been invested to provide
28 Italian pediatric hospitals with more comfortable rooms, equipment and other facilities
which can improve children’s quality of life. It
also trained 1,400 new ABIO volunteers.

Open Minds resulted in a 30 percent increase involumes sold versus a year ago, and raised about$265,000 to support nine projects across India
that benefited about 20,000 children. Open
Minds is a cause-related marketing initiative thathelps us contribute to building a strong and prosperous community through this investment ineducation for children.

Actonel® and the Impact Of OsteoporosisOsteoporosis, a disorder that weakens bones, is common among older adults, particularly
postmenopausal women.

P&G developed Actonel® for the treatment and prevention of postmenopausal osteoporosis and glucocorticoid-induced osteoporosis. Results from five studies presented
at the World Congress on Osteoporosis in June, 2000, showed thattreatment with Actonel® consistently reduced the risk of spinal fractures in just one year across a patient population with varying degrees of osteoporotic disease severity.

1997/9854$73,100

This means that Actonel® can really improve the quality of life for alarge number of people around the world.

Building for the Future$1 Million
Net Sales
1859

Wm. Procter &James Gamble,
Founders, Candle& Soap Business

1837

1850

2 0 0 0S U S T A I N A B I L I T Y

1860

R E P O R T•

P&G Brand
Advertising
1882

Regional U.S.
Markets

E X E C U T I V E

1870

S U M M A R Y

1880ProfitSharing1887

Incorporated
Company
1890

1890

Beginningof P&G
Research &Development

Shortening &Oils Business

1900

1910

P&G
CanadaCode ofMarkets Regulations

1920

Beginning of
P&G Market
Research

Tide
Overseas
Introduced Division
1946
1948

SafetyPhilippines
Programand U.K. Synthetic
StartedMarkets Detergents

1930

Oral Care
Business

2 0 0 01940

S U S T A I N A B I L I T Y$1 Billion
Net Sales

First
Disposable Affirmative Environmental Toll-free
Audit
Consumer $10 Billion
Fluoride
Diapers
ActionProgramHotline Net Sales
Toothpaste Business
1965
1955

1950

R E P O R T•

E X E C U T I V E

1960

S U M M A R Y

1970Feminine
Protection
Businesses

1980

Statement
World
OpportunityofEnvironment
2000
Purpose Center Award
Award
1987
1992
1994

1990

FutureShares1998

2000

Organization
2005

Financial Highlights (Millions of dollars except per-share amounts)

Profile of P&G

Key Indicators
Key Sustainability Focus Areas

markets approximately 300 brands of consumer products to nearly 5 billion consumers in morethan 140 countries. The products include laundry detergents, toothpastes, shampoos, feminine hygiene
products, pharmaceuticals, snacks, diapers, cosmetics and cold remedies. These products are best
known by their brand names: Tide, Ariel, Crest, Pantene Pro-V, Always, Whisper, Didronel, Pringles,
Pampers, Olay and Vicks.

O

ur sustainability focus continues to be Waterand Health & Hygiene. We have chosen
these two major areas as they are applicable
across all seven of the Company’s global business
units and the core drivers for sustainability:
economic development, social equity andenvironmental protection. While P&G intends tofocus on Water and Health & Hygiene, theCompany will not forget its long tradition of:• Doing what is right for consumers, employees,
shareholders and communities where it
operates.
• Building sales and profit growth in a sociallyand environmentally responsible manner.
• Increasing diversity within its workforce.
• Contributing to a more educated population.
• Maintaining high standards of health, safety
and environmental protection for its products
and operations throughout the world.

P&G’s worldwide headquarters is located in Cincinnati, Ohio, USA. The Company has on-the-ground
operations in more than 70 countries and employs 110,000 people worldwide.
P&G is a publicly owned company. Its stock is listed and is traded on the following exchanges: New
York, Cincinnati, Amsterdam, Paris, Basle, Geneva, Lausanne, Zurich, Frankfurt, Brussels and Tokyo.
As of July 21, 2000, there were 291,965 Common Stock shareholders of record, including participantsin the Shareholder Investment Program. Five billion shares of Common Stock have been authorized.
About 1.31 billion shares were outstanding as of June 30, 2000.
This is the second Sustainability Report for P&G’s worldwide operations. Data in this report covers theperiod from July 1, 1999, through June 30, 2000. Financial information is given in U.S. dollars.

As part of P&G’s Organization 2005 initiative to optimize resources to fit a growing
global business and to accelerate innovation and growth, the Company began
operating its business through Global Business Units (GBUs), effective July 1, 1999.
• Fabric & Home Care
• Baby Care
• Feminine Care
Paper Group• Tissues & Towel• Health Care
• Beauty Care
• Food & Beverage

Key Brands
Fabric & Home Care
ACE BLEACH AND
PREWASHARIEL
BOUNCECASCADE
CHEER
DASH
DAWN
DOWNY
DRYEL
ERA
FAIRY
FEBREZE
FIT
JOY

LENOR
MR. CLEAN
TIDE
SWIFFERSUNNY DELIGHTSPIREECLIPSEFeminine Care
ALWAYSLINESTAMPAX
WHISPER
Food & Beverage
CRISCOFOLGERSJIFMILLSTONE
OLEAN
PRINGLES

Baby CareBABYSANDODOTLUVS
PAMPERSPAMPERS BABY
WIPES

Health CareACTONELASACOLBLEND-A-MED
CREST
DIDRONEL
MACROBIDMETAMUCILNYQUIL/DAYQUILPEPTO-BISMOLSCOPEVICKS FORMULA 44
VICKS VAPORUB

Beauty Care
COVER GIRLIVORYMAX FACTOR
OLAY
OLD SPICEPANTENE PRO-V
PERT PLUS
REJOICESAFEGUARD

Major Impacts Associatedwith Products

%Male
59

Economic Development• Shareholder Value• Employment• Taxes, Fees and Contributions

Management
All Other Employees (Administrative, Technicaland Plant Technicians)

1999/2000$28,292,768

Total

1997/98

BBC

BC

FHC

FC

FB

HC

TT

Packaged Product Shipped
Raw Materials from
Recycled Sources
Packaging Used
Packaging Material from
Recycled Sources

15,229476

14,644380

14,436
400

1,281
0

1,165
0

6,914
0

639
0

2,656
0

789
0

1,782
476

1293
444

1,375
490

1,367
455

70
27

122
25

585
242

57
19

288
81

99
22

72
28

146
67%

59
50%

146
61%

67
79%

136
60%

29
37%

296
40%

317
12
39
19

271
27
31
20

324
12
37
20

45
0.3
1
1

20
3
3
0.9

37
7
7
3

13
0.7
0.1
0.1

30
0.01
18
5

10
0.7
5
1

162
0.6
5
7

Energy Consumption (105 GJ)
1,080
Water Consumption (MM cubic meters) 87.0
SARA Releases (1,000 tons)*
1.9

967
83.4
1.6

947
ND
1.9

90
7.1
0

38
3.7
0.01

281
14.1
1.5

35
0.4
0

107
10.7
0.1

30
2.1
0.04

499
48.8
0.2

1998/99$27,585,008

Occupational Health & Safety Data
Past three years’ global data on two key metrics forworker health and safety:

Disposed Waste
Solid Waste — Non-Hazardous
Solid Waste — Hazardous
Effluents (Excluding Water)
Air Emissions

19.2

39.7

39.9

39.5

1997/98$26,614,350

P&G and its employees have a long-standing commitment to being good citizens and neighbors inall the places where we do business around the world. We believe we have a responsibility to society to use its resources — money, people and energy — wisely. We satisfy our financial commitment through support for a wide range of educational, health, social service, cultural, civic andenvironmental organizations.

Waste

Tissues & Towel
BOUNTYCHARMIN
PUFFS
TEMPO

18.5

This year’s total contribution reflects a 2.6 percent increase in spending vs. the 1998/1999 level. In
addition, with the implementation of the Company’s Organization 2005 initiative, we did not compile
global contributions data.

Total

893
53%

18.8

1999/00 1998/99 1997/98
33.7
33.1
32.5

The contributions made by The Procter & Gamble Fund and Corporate Contributions in North America
for the past three years are provided in the following table:

1998/99863
56%

1999/00 1998/99 1997/98
15.9
15.8
15.6

Philanthropic Contributions

1999/2000

879
55%

Open Minds Program

Dash Missione Bontà Ospedale Amico

I

I

n November, 1999, P&G and UNICEF launchedOpen Minds, a special program targeted to support and educate children across sevencountries in ASEAN/India. Across theregion, P&G targets to raise up to $5
million over the next three years to
help children develop and grow to realize their full potential.

%Female41

This global data does not yet include plant technicians in the United States, United Kingdom and
Latin America; more complete data is expected to be available early next year. Global data is being developed in a new system consistent with the Company’s Organization 2005. Thus, historic global data
is not available for comparison. The percentages of minority and female employees in the United States
are shown in the following table:% Minorities% Female

Production

Generated Waste
Percent Recycled/Reused Waste

Sustainability in Action

Social Equity• Health• Hygiene• Education

1999/2000 Global Business Unit Details

SKII
SECRETVIDAL SASSOON
ZEST

1997/98$37,154$10,203$1,928$3,780$2.74$30,966$5,765$12,236

P&G expects its workforce to become increasingly more diverse. This is a global policy, and programs
are in place for continuous improvement in all regions. Global reporting of enrollment by gender isshown in the following table:
Global Enrollment 1999/2000

Environment• Resource Use (Materials and Energy)• Water• Waste and Emissions

All waste units are in thousands of metric tons unless otherwise noted. 1 ton = 1,000 kg = 2,205 lbs.

Measure1998/99$38,125$10,845$2,075$3,763$2.75$32,113$6,231$12,058

Diversity Data — Global Enrollment

Manufacturing Waste & Cost Summary}

1999/2000$39,951$12,483$1,994$3,542$2.61$34,194$8,916$12,287

Net Sales
Marketing, Research & Administrative Expenses
Income Taxes
Net Earnings
Basic Net Earnings Per Common ShareTotal Assets
Long-Term Debt
Shareholders’ Equity

Total Incident Rate
(injury and illness per 100 employees)
1999/2000
1998/99
1997/98
0.8
0.7
0.8

Other

Total Lost Workday Case Rate(lost & restricted workday cases per 100 employees)
1999/2000
1998/99
1997/98
0.4
0.3
0.4

* Releases defined in the U.S. Superfund Amendments and Reauthorization Act by the U.S. Environmental Protection Agency.
NOTE: BBC - Baby Care; BC - Beauty Care; FHC - Fabric & Home Care; FC - Feminine Care; FB - Food & Beverage; HC - Health Care; TT - Tissues & Towel

Summary of Violations andInterventions
Past three years’ global data on environmental,transportation, and worker health and safety violations and interventions:
1999/2000 1998/99
48
46$13,400 $33,250

NumberFines

Several external stakeholders joined
us in these efforts. The customer andsupplier partners of P&G pledged their support
for this project. Saatchi & Saatchi Advertisingprovided the creative materials, and P&G’s media
partners (several satellite TV channels) also extended their support to communicate the cause ofOpen Minds to the general public. Not to be left
behind, the employees of P&G voluntarily contributed one day’s salary (about $7,500) towards theOpen Minds fund.

n 1999, Dash dedicated its efforts in Italy
to a fund-raising project, Missione Bontà
Ospedale Amico, aimed at improving the quality of life for children in Italian pediatric hospitals, consistent with the UNICEF principles
for hospital qualification. The whole project
has been handled in conjunction with ABIO (Association for Children in
Hospitals), an organization that, for 20 years,
has given help to hospitalized children andtheir parents.
The funds raised have been invested to provide
28 Italian pediatric hospitals with more comfortable rooms, equipment and other facilities
which can improve children’s quality of life. It
also trained 1,400 new ABIO volunteers.

Open Minds resulted in a 30 percent increase involumes sold versus a year ago, and raised about$265,000 to support nine projects across India
that benefited about 20,000 children. Open
Minds is a cause-related marketing initiative thathelps us contribute to building a strong and prosperous community through this investment ineducation for children.

Actonel® and the Impact Of OsteoporosisOsteoporosis, a disorder that weakens bones, is common among older adults, particularly
postmenopausal women.

P&G developed Actonel® for the treatment and prevention of postmenopausal osteoporosis and glucocorticoid-induced osteoporosis. Results from five studies presented
at the World Congress on Osteoporosis in June, 2000, showed thattreatment with Actonel® consistently reduced the risk of spinal fractures in just one year across a patient population with varying degrees of osteoporotic disease severity.

1997/9854$73,100

This means that Actonel® can really improve the quality of life for alarge number of people around the world.

Building for the Future$1 Million
Net Sales
1859

Wm. Procter &James Gamble,
Founders, Candle& Soap Business

1837

1850

2 0 0 0S U S T A I N A B I L I T Y

1860

R E P O R T•

P&G Brand
Advertising
1882

Regional U.S.
Markets

E X E C U T I V E

1870

S U M M A R Y

1880ProfitSharing1887

Incorporated
Company
1890

1890

Beginningof P&G
Research &Development

Shortening &Oils Business

1900

1910

P&G
CanadaCode ofMarkets Regulations

1920

Beginning of
P&G Market
Research

Tide
Overseas
Introduced Division
1946
1948

SafetyPhilippines
Programand U.K. Synthetic
StartedMarkets Detergents

1930

Oral Care
Business

2 0 0 01940

S U S T A I N A B I L I T Y$1 Billion
Net Sales

First
Disposable Affirmative Environmental Toll-free
Audit
Consumer $10 Billion
Fluoride
Diapers
ActionProgramHotline Net Sales
Toothpaste Business
1965
1955

1950

R E P O R T•

E X E C U T I V E

1960

S U M M A R Y

1970Feminine
Protection
Businesses

1980

Statement
World
OpportunityofEnvironment
2000
Purpose Center Award
Award
1987
1992
1994

1990

FutureShares1998

2000

Organization
2005

Financial Highlights (Millions of dollars except per-share amounts)

Profile of P&G

Key Indicators
Key Sustainability Focus Areas

markets approximately 300 brands of consumer products to nearly 5 billion consumers in morethan 140 countries. The products include laundry detergents, toothpastes, shampoos, feminine hygiene
products, pharmaceuticals, snacks, diapers, cosmetics and cold remedies. These products are best
known by their brand names: Tide, Ariel, Crest, Pantene Pro-V, Always, Whisper, Didronel, Pringles,
Pampers, Olay and Vicks.

O

ur sustainability focus continues to be Waterand Health & Hygiene. We have chosen
these two major areas as they are applicable
across all seven of the Company’s global business
units and the core drivers for sustainability:
economic development, social equity andenvironmental protection. While P&G intends tofocus on Water and Health & Hygiene, theCompany will not forget its long tradition of:• Doing what is right for consumers, employees,
shareholders and communities where it
operates.
• Building sales and profit growth in a sociallyand environmentally responsible manner.
• Increasing diversity within its workforce.
• Contributing to a more educated population.
• Maintaining high standards of health, safety
and environmental protection for its products
and operations throughout the world.

P&G’s worldwide headquarters is located in Cincinnati, Ohio, USA. The Company has on-the-ground
operations in more than 70 countries and employs 110,000 people worldwide.
P&G is a publicly owned company. Its stock is listed and is traded on the following exchanges: New
York, Cincinnati, Amsterdam, Paris, Basle, Geneva, Lausanne, Zurich, Frankfurt, Brussels and Tokyo.
As of July 21, 2000, there were 291,965 Common Stock shareholders of record, including participantsin the Shareholder Investment Program. Five billion shares of Common Stock have been authorized.
About 1.31 billion shares were outstanding as of June 30, 2000.
This is the second Sustainability Report for P&G’s worldwide operations. Data in this report covers theperiod from July 1, 1999, through June 30, 2000. Financial information is given in U.S. dollars.

As part of P&G’s Organization 2005 initiative to optimize resources to fit a growing
global business and to accelerate innovation and growth, the Company began
operating its business through Global Business Units (GBUs), effective July 1, 1999.
• Fabric & Home Care
• Baby Care
• Feminine Care
Paper Group• Tissues & Towel• Health Care
• Beauty Care
• Food & Beverage

Key Brands
Fabric & Home Care
ACE BLEACH AND
PREWASHARIEL
BOUNCECASCADE
CHEER
DASH
DAWN
DOWNY
DRYEL
ERA
FAIRY
FEBREZE
FIT
JOY

LENOR
MR. CLEAN
TIDE
SWIFFERSUNNY DELIGHTSPIREECLIPSEFeminine Care
ALWAYSLINESTAMPAX
WHISPER
Food & Beverage
CRISCOFOLGERSJIFMILLSTONE
OLEAN
PRINGLES

Baby CareBABYSANDODOTLUVS
PAMPERSPAMPERS BABY
WIPES

Health CareACTONELASACOLBLEND-A-MED
CREST
DIDRONEL
MACROBIDMETAMUCILNYQUIL/DAYQUILPEPTO-BISMOLSCOPEVICKS FORMULA 44
VICKS VAPORUB

Beauty Care
COVER GIRLIVORYMAX FACTOR
OLAY
OLD SPICEPANTENE PRO-V
PERT PLUS
REJOICESAFEGUARD

Major Impacts Associatedwith Products

%Male
59

Economic Development• Shareholder Value• Employment• Taxes, Fees and Contributions

Management
All Other Employees (Administrative, Technicaland Plant Technicians)

1999/2000$28,292,768

Total

1997/98

BBC

BC

FHC

FC

FB

HC

TT

Packaged Product Shipped
Raw Materials from
Recycled Sources
Packaging Used
Packaging Material from
Recycled Sources

15,229476

14,644380

14,436
400

1,281
0

1,165
0

6,914
0

639
0

2,656
0

789
0

1,782
476

1293
444

1,375
490

1,367
455

70
27

122
25

585
242

57
19

288
81

99
22

72
28

146
67%

59
50%

146
61%

67
79%

136
60%

29
37%

296
40%

317
12
39
19

271
27
31
20

324
12
37
20

45
0.3
1
1

20
3
3
0.9

37
7
7
3

13
0.7
0.1
0.1

30
0.01
18
5

10
0.7
5
1

162
0.6
5
7

Energy Consumption (105 GJ)
1,080
Water Consumption (MM cubic meters) 87.0
SARA Releases (1,000 tons)*
1.9

967
83.4
1.6

947
ND
1.9

90
7.1
0

38
3.7
0.01

281
14.1
1.5

35
0.4
0

107
10.7
0.1

30
2.1
0.04

499
48.8
0.2

1998/99$27,585,008

Occupational Health & Safety Data
Past three years’ global data on two key metrics forworker health and safety:

Disposed Waste
Solid Waste — Non-Hazardous
Solid Waste — Hazardous
Effluents (Excluding Water)
Air Emissions

19.2

39.7

39.9

39.5

1997/98$26,614,350

P&G and its employees have a long-standing commitment to being good citizens and neighbors inall the places where we do business around the world. We believe we have a responsibility to society to use its resources — money, people and energy — wisely. We satisfy our financial commitment through support for a wide range of educational, health, social service, cultural, civic andenvironmental organizations.

Waste

Tissues & Towel
BOUNTYCHARMIN
PUFFS
TEMPO

18.5

This year’s total contribution reflects a 2.6 percent increase in spending vs. the 1998/1999 level. In
addition, with the implementation of the Company’s Organization 2005 initiative, we did not compile
global contributions data.

Total

893
53%

18.8

1999/00 1998/99 1997/98
33.7
33.1
32.5

The contributions made by The Procter & Gamble Fund and Corporate Contributions in North America
for the past three years are provided in the following table:

1998/99863
56%

1999/00 1998/99 1997/98
15.9
15.8
15.6

Philanthropic Contributions

1999/2000

879
55%

Open Minds Program

Dash Missione Bontà Ospedale Amico

I

I

n November, 1999, P&G and UNICEF launchedOpen Minds, a special program targeted to support and educate children across sevencountries in ASEAN/India. Across theregion, P&G targets to raise up to $5
million over the next three years to
help children develop and grow to realize their full potential.

%Female41

This global data does not yet include plant technicians in the United States, United Kingdom and
Latin America; more complete data is expected to be available early next year. Global data is being developed in a new system consistent with the Company’s Organization 2005. Thus, historic global data
is not available for comparison. The percentages of minority and female employees in the United States
are shown in the following table:% Minorities% Female

Production

Generated Waste
Percent Recycled/Reused Waste

Sustainability in Action

Social Equity• Health• Hygiene• Education

1999/2000 Global Business Unit Details

SKII
SECRETVIDAL SASSOON
ZEST

1997/98$37,154$10,203$1,928$3,780$2.74$30,966$5,765$12,236

P&G expects its workforce to become increasingly more diverse. This is a global policy, and programs
are in place for continuous improvement in all regions. Global reporting of enrollment by gender isshown in the following table:
Global Enrollment 1999/2000

Environment• Resource Use (Materials and Energy)• Water• Waste and Emissions

All waste units are in thousands of metric tons unless otherwise noted. 1 ton = 1,000 kg = 2,205 lbs.

Measure1998/99$38,125$10,845$2,075$3,763$2.75$32,113$6,231$12,058

Diversity Data — Global Enrollment

Manufacturing Waste & Cost Summary}

1999/2000$39,951$12,483$1,994$3,542$2.61$34,194$8,916$12,287

Net Sales
Marketing, Research & Administrative Expenses
Income Taxes
Net Earnings
Basic Net Earnings Per Common ShareTotal Assets
Long-Term Debt
Shareholders’ Equity

Total Incident Rate
(injury and illness per 100 employees)
1999/2000
1998/99
1997/98
0.8
0.7
0.8

Other

Total Lost Workday Case Rate(lost & restricted workday cases per 100 employees)
1999/2000
1998/99
1997/98
0.4
0.3
0.4

* Releases defined in the U.S. Superfund Amendments and Reauthorization Act by the U.S. Environmental Protection Agency.
NOTE: BBC - Baby Care; BC - Beauty Care; FHC - Fabric & Home Care; FC - Feminine Care; FB - Food & Beverage; HC - Health Care; TT - Tissues & Towel

Summary of Violations andInterventions
Past three years’ global data on environmental,transportation, and worker health and safety violations and interventions:
1999/2000 1998/99
48
46$13,400 $33,250

NumberFines

Several external stakeholders joined
us in these efforts. The customer andsupplier partners of P&G pledged their support
for this project. Saatchi & Saatchi Advertisingprovided the creative materials, and P&G’s media
partners (several satellite TV channels) also extended their support to communicate the cause ofOpen Minds to the general public. Not to be left
behind, the employees of P&G voluntarily contributed one day’s salary (about $7,500) towards theOpen Minds fund.

n 1999, Dash dedicated its efforts in Italy
to a fund-raising project, Missione Bontà
Ospedale Amico, aimed at improving the quality of life for children in Italian pediatric hospitals, consistent with the UNICEF principles
for hospital qualification. The whole project
has been handled in conjunction with ABIO (Association for Children in
Hospitals), an organization that, for 20 years,
has given help to hospitalized children andtheir parents.
The funds raised have been invested to provide
28 Italian pediatric hospitals with more comfortable rooms, equipment and other facilities
which can improve children’s quality of life. It
also trained 1,400 new ABIO volunteers.

Open Minds resulted in a 30 percent increase involumes sold versus a year ago, and raised about$265,000 to support nine projects across India
that benefited about 20,000 children. Open
Minds is a cause-related marketing initiative thathelps us contribute to building a strong and prosperous community through this investment ineducation for children.

Actonel® and the Impact Of OsteoporosisOsteoporosis, a disorder that weakens bones, is common among older adults, particularly
postmenopausal women.

P&G developed Actonel® for the treatment and prevention of postmenopausal osteoporosis and glucocorticoid-induced osteoporosis. Results from five studies presented
at the World Congress on Osteoporosis in June, 2000, showed thattreatment with Actonel® consistently reduced the risk of spinal fractures in just one year across a patient population with varying degrees of osteoporotic disease severity.

1997/9854$73,100

This means that Actonel® can really improve the quality of life for alarge number of people around the world.

Building for the Future$1 Million
Net Sales
1859

Wm. Procter &James Gamble,
Founders, Candle& Soap Business

1837

1850

2 0 0 0S U S T A I N A B I L I T Y

1860

R E P O R T•

P&G Brand
Advertising
1882

Regional U.S.
Markets

E X E C U T I V E

1870

S U M M A R Y

1880ProfitSharing1887

Incorporated
Company
1890

1890

Beginningof P&G
Research &Development

Shortening &Oils Business

1900

1910

P&G
CanadaCode ofMarkets Regulations

1920

Beginning of
P&G Market
Research

Tide
Overseas
Introduced Division
1946
1948

SafetyPhilippines
Programand U.K. Synthetic
StartedMarkets Detergents

1930

Oral Care
Business

2 0 0 01940

S U S T A I N A B I L I T Y$1 Billion
Net Sales

First
Disposable Affirmative Environmental Toll-free
Audit
Consumer $10 Billion
Fluoride
Diapers
ActionProgramHotline Net Sales
Toothpaste Business
1965
1955

1950

R E P O R T•

E X E C U T I V E

1960

S U M M A R Y

1970Feminine
Protection
Businesses

1980

Statement
World
OpportunityofEnvironment
2000
Purpose Center Award
Award
1987
1992
1994

1990

FutureShares1998

2000

Organization
2005

Financial Highlights (Millions of dollars except per-share amounts)

Profile of P&G

Key Indicators
Key Sustainability Focus Areas

markets approximately 300 brands of consumer products to nearly 5 billion consumers in morethan 140 countries. The products include laundry detergents, toothpastes, shampoos, feminine hygiene
products, pharmaceuticals, snacks, diapers, cosmetics and cold remedies. These products are best
known by their brand names: Tide, Ariel, Crest, Pantene Pro-V, Always, Whisper, Didronel, Pringles,
Pampers, Olay and Vicks.

O

ur sustainability focus continues to be Waterand Health & Hygiene. We have chosen
these two major areas as they are applicable
across all seven of the Company’s global business
units and the core drivers for sustainability:
economic development, social equity andenvironmental protection. While P&G intends tofocus on Water and Health & Hygiene, theCompany will not forget its long tradition of:• Doing what is right for consumers, employees,
shareholders and communities where it
operates.
• Building sales and profit growth in a sociallyand environmentally responsible manner.
• Increasing diversity within its workforce.
• Contributing to a more educated population.
• Maintaining high standards of health, safety
and environmental protection for its products
and operations throughout the world.

P&G’s worldwide headquarters is located in Cincinnati, Ohio, USA. The Company has on-the-ground
operations in more than 70 countries and employs 110,000 people worldwide.
P&G is a publicly owned company. Its stock is listed and is traded on the following exchanges: New
York, Cincinnati, Amsterdam, Paris, Basle, Geneva, Lausanne, Zurich, Frankfurt, Brussels and Tokyo.
As of July 21, 2000, there were 291,965 Common Stock shareholders of record, including participantsin the Shareholder Investment Program. Five billion shares of Common Stock have been authorized.
About 1.31 billion shares were outstanding as of June 30, 2000.
This is the second Sustainability Report for P&G’s worldwide operations. Data in this report covers theperiod from July 1, 1999, through June 30, 2000. Financial information is given in U.S. dollars.

As part of P&G’s Organization 2005 initiative to optimize resources to fit a growing
global business and to accelerate innovation and growth, the Company began
operating its business through Global Business Units (GBUs), effective July 1, 1999.
• Fabric & Home Care
• Baby Care
• Feminine Care
Paper Group• Tissues & Towel• Health Care
• Beauty Care
• Food & Beverage

Key Brands
Fabric & Home Care
ACE BLEACH AND
PREWASHARIEL
BOUNCECASCADE
CHEER
DASH
DAWN
DOWNY
DRYEL
ERA
FAIRY
FEBREZE
FIT
JOY

LENOR
MR. CLEAN
TIDE
SWIFFERSUNNY DELIGHTSPIREECLIPSEFeminine Care
ALWAYSLINESTAMPAX
WHISPER
Food & Beverage
CRISCOFOLGERSJIFMILLSTONE
OLEAN
PRINGLES

Baby CareBABYSANDODOTLUVS
PAMPERSPAMPERS BABY
WIPES

Health CareACTONELASACOLBLEND-A-MED
CREST
DIDRONEL
MACROBIDMETAMUCILNYQUIL/DAYQUILPEPTO-BISMOLSCOPEVICKS FORMULA 44
VICKS VAPORUB

Beauty Care
COVER GIRLIVORYMAX FACTOR
OLAY
OLD SPICEPANTENE PRO-V
PERT PLUS
REJOICESAFEGUARD

Major Impacts Associatedwith Products

%Male
59

Economic Development• Shareholder Value• Employment• Taxes, Fees and Contributions

Management
All Other Employees (Administrative, Technicaland Plant Technicians)

1999/2000$28,292,768

Total

1997/98

BBC

BC

FHC

FC

FB

HC

TT

Packaged Product Shipped
Raw Materials from
Recycled Sources
Packaging Used
Packaging Material from
Recycled Sources

15,229476

14,644380

14,436
400

1,281
0

1,165
0

6,914
0

639
0

2,656
0

789
0

1,782
476

1293
444

1,375
490

1,367
455

70
27

122
25

585
242

57
19

288
81

99
22

72
28

146
67%

59
50%

146
61%

67
79%

136
60%

29
37%

296
40%

317
12
39
19

271
27
31
20

324
12
37
20

45
0.3
1
1

20
3
3
0.9

37
7
7
3

13
0.7
0.1
0.1

30
0.01
18
5

10
0.7
5
1

162
0.6
5
7

Energy Consumption (105 GJ)
1,080
Water Consumption (MM cubic meters) 87.0
SARA Releases (1,000 tons)*
1.9

967
83.4
1.6

947
ND
1.9

90
7.1
0

38
3.7
0.01

281
14.1
1.5

35
0.4
0

107
10.7
0.1

30
2.1
0.04

499
48.8
0.2

1998/99$27,585,008

Occupational Health & Safety Data
Past three years’ global data on two key metrics forworker health and safety:

Disposed Waste
Solid Waste — Non-Hazardous
Solid Waste — Hazardous
Effluents (Excluding Water)
Air Emissions

19.2

39.7

39.9

39.5

1997/98$26,614,350

P&G and its employees have a long-standing commitment to being good citizens and neighbors inall the places where we do business around the world. We believe we have a responsibility to society to use its resources — money, people and energy — wisely. We satisfy our financial commitment through support for a wide range of educational, health, social service, cultural, civic andenvironmental organizations.

Waste

Tissues & Towel
BOUNTYCHARMIN
PUFFS
TEMPO

18.5

This year’s total contribution reflects a 2.6 percent increase in spending vs. the 1998/1999 level. In
addition, with the implementation of the Company’s Organization 2005 initiative, we did not compile
global contributions data.

Total

893
53%

18.8

1999/00 1998/99 1997/98
33.7
33.1
32.5

The contributions made by The Procter & Gamble Fund and Corporate Contributions in North America
for the past three years are provided in the following table:

1998/99863
56%

1999/00 1998/99 1997/98
15.9
15.8
15.6

Philanthropic Contributions

1999/2000

879
55%

Open Minds Program

Dash Missione Bontà Ospedale Amico

I

I

n November, 1999, P&G and UNICEF launchedOpen Minds, a special program targeted to support and educate children across sevencountries in ASEAN/India. Across theregion, P&G targets to raise up to $5
million over the next three years to
help children develop and grow to realize their full potential.

%Female41

This global data does not yet include plant technicians in the United States, United Kingdom and
Latin America; more complete data is expected to be available early next year. Global data is being developed in a new system consistent with the Company’s Organization 2005. Thus, historic global data
is not available for comparison. The percentages of minority and female employees in the United States
are shown in the following table:% Minorities% Female

Production

Generated Waste
Percent Recycled/Reused Waste

Sustainability in Action

Social Equity• Health• Hygiene• Education

1999/2000 Global Business Unit Details

SKII
SECRETVIDAL SASSOON
ZEST

1997/98$37,154$10,203$1,928$3,780$2.74$30,966$5,765$12,236

P&G expects its workforce to become increasingly more diverse. This is a global policy, and programs
are in place for continuous improvement in all regions. Global reporting of enrollment by gender isshown in the following table:
Global Enrollment 1999/2000

Environment• Resource Use (Materials and Energy)• Water• Waste and Emissions

All waste units are in thousands of metric tons unless otherwise noted. 1 ton = 1,000 kg = 2,205 lbs.

Measure1998/99$38,125$10,845$2,075$3,763$2.75$32,113$6,231$12,058

Diversity Data — Global Enrollment

Manufacturing Waste & Cost Summary}

1999/2000$39,951$12,483$1,994$3,542$2.61$34,194$8,916$12,287

Net Sales
Marketing, Research & Administrative Expenses
Income Taxes
Net Earnings
Basic Net Earnings Per Common ShareTotal Assets
Long-Term Debt
Shareholders’ Equity

Total Incident Rate
(injury and illness per 100 employees)
1999/2000
1998/99
1997/98
0.8
0.7
0.8

Other

Total Lost Workday Case Rate(lost & restricted workday cases per 100 employees)
1999/2000
1998/99
1997/98
0.4
0.3
0.4

* Releases defined in the U.S. Superfund Amendments and Reauthorization Act by the U.S. Environmental Protection Agency.
NOTE: BBC - Baby Care; BC - Beauty Care; FHC - Fabric & Home Care; FC - Feminine Care; FB - Food & Beverage; HC - Health Care; TT - Tissues & Towel

Summary of Violations andInterventions
Past three years’ global data on environmental,transportation, and worker health and safety violations and interventions:
1999/2000 1998/99
48
46$13,400 $33,250

NumberFines

Several external stakeholders joined
us in these efforts. The customer andsupplier partners of P&G pledged their support
for this project. Saatchi & Saatchi Advertisingprovided the creative materials, and P&G’s media
partners (several satellite TV channels) also extended their support to communicate the cause ofOpen Minds to the general public. Not to be left
behind, the employees of P&G voluntarily contributed one day’s salary (about $7,500) towards theOpen Minds fund.

n 1999, Dash dedicated its efforts in Italy
to a fund-raising project, Missione Bontà
Ospedale Amico, aimed at improving the quality of life for children in Italian pediatric hospitals, consistent with the UNICEF principles
for hospital qualification. The whole project
has been handled in conjunction with ABIO (Association for Children in
Hospitals), an organization that, for 20 years,
has given help to hospitalized children andtheir parents.
The funds raised have been invested to provide
28 Italian pediatric hospitals with more comfortable rooms, equipment and other facilities
which can improve children’s quality of life. It
also trained 1,400 new ABIO volunteers.

Open Minds resulted in a 30 percent increase involumes sold versus a year ago, and raised about$265,000 to support nine projects across India
that benefited about 20,000 children. Open
Minds is a cause-related marketing initiative thathelps us contribute to building a strong and prosperous community through this investment ineducation for children.

Actonel® and the Impact Of OsteoporosisOsteoporosis, a disorder that weakens bones, is common among older adults, particularly
postmenopausal women.

P&G developed Actonel® for the treatment and prevention of postmenopausal osteoporosis and glucocorticoid-induced osteoporosis. Results from five studies presented
at the World Congress on Osteoporosis in June, 2000, showed thattreatment with Actonel® consistently reduced the risk of spinal fractures in just one year across a patient population with varying degrees of osteoporotic disease severity.

1997/9854$73,100

This means that Actonel® can really improve the quality of life for alarge number of people around the world.

Building for the Future$1 Million
Net Sales
1859

Wm. Procter &James Gamble,
Founders, Candle& Soap Business

1837

1850

2 0 0 0S U S T A I N A B I L I T Y

1860

R E P O R T•

P&G Brand
Advertising
1882

Regional U.S.
Markets

E X E C U T I V E

1870

S U M M A R Y

1880ProfitSharing1887

Incorporated
Company
1890

1890

Beginningof P&G
Research &Development

Shortening &Oils Business

1900

1910

P&G
CanadaCode ofMarkets Regulations

1920

Beginning of
P&G Market
Research

Tide
Overseas
Introduced Division
1946
1948

SafetyPhilippines
Programand U.K. Synthetic
StartedMarkets Detergents

1930

Oral Care
Business

2 0 0 01940

S U S T A I N A B I L I T Y$1 Billion
Net Sales

First
Disposable Affirmative Environmental Toll-free
Audit
Consumer $10 Billion
Fluoride
Diapers
ActionProgramHotline Net Sales
Toothpaste Business
1965
1955

1950

R E P O R T•

E X E C U T I V E

1960

S U M M A R Y

1970Feminine
Protection
Businesses

1980

Statement
World
OpportunityofEnvironment
2000
Purpose Center Award
Award
1987
1992
1994

1990

FutureShares1998

2000

Organization2005

2 0 0 0

S U S T A I N A B I L I T Y

R E P O R T•

E X E C U T I V E

S U M M A R Y

Statement of Purpose
Executive Summary
We will provide products and services

Visionimprove the lives of the world’s

W

consumers. As a result, consumers

Since then, sustainable development has dominatedglobal public policy discussions, but the discussions havebeen dominated by HOW things are done — environmental
management systems, ISO 14001, codes of conduct andstewardship, Total Quality, waste elimination,transparency and reporting, audits and verifications.
Further, the focus on HOW we do things has limited theeconomic benefit discussion for business to a bottom-line
issue — cost avoidance and reduction.
HOW we do our business is, and always will be,
important to us. P&G has always conducted its businesswith integrity. We have long been leaders in employee
benefits, workplace safety, environmental managementof our operations, ethical business practices andinvolvement in our communities. Designing waste outof our products and processes has saved us more than$505 million in the past six years.
As we explore the role of sustainability in P&G’s future
top line, we are also furthering our focus on WHAT we
do — our products, services and the way we bring themto market. This ensures we address consumer needs andaspirations in more innovative ways, developing entirely
new products and services, selling to new consumers,
and creating new markets.

• Understanding the opportunities and the challenges

in bringing to market innovations that addressenvironmental and social issues.

will reward us with leadership sales, profit

Despite the long lead time from idea to market
introduction, we have been able to obtain some earlyexperience in bringing such innovations to market. We
did this by leveraging innovations already in our productpipeline when we embarked on a sustainability strategy
just a year ago. A. G. Laf ley and John Pepper discuss
several of these early innovations — Nutri Delight for
micronutrient deficiency, Fit for cleaning fruits andvegetables, and Actonel for postmenopausal osteoporosis.

TRUST

T

his report was prepared in accordance with the
Global Reporting Initiative’s (GRI’s) Sustainability
Reporting Guidelines on Economic, Environmental andSocial Performance, June 2000. The mission of the
GRI is to promote international harmonization in thereporting of relevant and credible corporate environmental, social and economic performance information
to enhance responsible decision making. GRI pursues
this mission through a multi-stakeholder process ofopen dialogue and collaboration in the design andimplementation of widely applicable sustainability
reporting guidelines. GRI has not verified the contentsof this report, nor does it take a position on thereliability of information reported herein. For further
information about GRI, please visit:www.globalreporting.org

George D. Carpenter
Director, Corporate
Sustainable Development

This is the Executive Summary of thesecond Sustainability Report for P&G’s
worldwide operations. Data in the reportcovers the period from July 1, 1999,
through June 30, 2000.
The full report is available on P&G’s
web site: www.pg.com/sr
Please visit P&G’s corporate web site forthe latest P&G news and shareholder andcareer information:www.pg.com

E X E C U T I V E

Visit http://www.pg.com/sr for the full report.

PASSIONFOR
WINNING

While we are still learning how sustainability becomesintegral to our business, this past year has seen several
meaningful milestones on this journey, both in our
products and in our policies and management systems.

We Show Respect for All Individuals
The Interests of the Company and theIndividual are Inseparable

Last fall, we market tested a new drink product that wasdeveloped jointly with UNICEF. It has the potential tosignificantly address the problem of micronutrient deficiency,
which results in blindness for 2.8 million children, a 10 to
15 percent decrease in IQ, birth defects, stillbirths,
congenital deafness, and increased risk of both maternal
and fetal morbidity and mortality. We will continue tolearn how to best bring innovations such as this to market
this fiscal year.

We are Strategically Focused in Our Work
Innovation is the Cornerstone of Our Success
We are Externally Focused
We Value Personal Mastery
We Seek to be the Best
Mutual Interdependency is a Way of LifeA new product with the potential to significantly reduce
food-borne disease and contamination is Fit, a fruit andvegetable rinse that removes 98 percent more residue andwax than just water. In 1999, we saw acquisition of thePuR water filtration business, which holds great potential
for the availability worldwide of clean drinking water. In
2000, we received regulatory approval in both Europe andthe United States for Actonel, a prescription drug for thetreatment and prevention of postmenopausal osteoporosis.

Editor: Chris Smith, Newcastle upon Tyne, U.K.
Core Report Team: Corey Snyder, Cincinnati,
Ohio, USA; Debbie White, Cincinnati,
Ohio, USA; Robin Tollet, Cincinnati, Ohio,
USA; Bea Buyle, Brussels, Belgium;
Paul van der Mensbrugghe, Brussels,
Belgium; Charles Peng, Kobe, Japan;
Joaquin Zepeda, Caracas, Venezuela.
Design: Andy Ruttle, Ruttle Design Group, Inc.,
Cincinnati, Ohio, USA.

This past year, we completed a major review of ourcorporate policies and have taken several steps to assure
our policies are totally aligned with our core values. These
policies are published in a booklet, P&G – Our Values andCode of Conduct, that is available on our web site(www.pg.com). In 1999, we were among the first
supporters of the Global Sullivan Principles on corporatesocial responsibility. We are committed to their success increating a better quality of life for the world’s citizens.

The report team wishes to thank all the individuals
throughout the Company who contributed information, stories and data to this report.

FRONT COVER: In the Philippines,
P&G and UNICEF collaborated withlocal government units to build community water facilities in 10 areas overa period of three years. The water
facilities include showers, toilets,
laundry areas and public wells.

E-mail: sustainrep-im@pg.com

S U M M A R Y
0013-6464

With a year’s experience now behind us, we remain firmly
committed to that opportunity to improve lives now and in
the future.

Principles

Corporate Sustainable Development
Two Procter & Gamble Plaza
TN-02, MS-28
Cincinnati, Ohio 45202 USA
Fax: (513) 983-5226•

ust over a year ago, P&G shifted from a narrow focus
on environmental quality to the more holistic concept ofsustainable development — the integration of environment,social equity and economic development. We seesustainable development, or sustainability, as closelyaligned with our Company’s Statement of Purpose, to“…provide products and services of superior quality andvalue that improve the lives of the world’s consumers.”

PEOPLE OWNERSHIPINTEGRITY

We are not saying we have sustainability figured out.
We do not! Unfortunately, there are painfully few
examples of companies successfully building their futureon the concept of sustainability. There are at least as
many failures as there are successes. We are exploring
new, uncharted territory and learning as we go. We
remain committed to the belief that through ourinnovation and deep understanding of consumers’ needs
and aspirations, we can help create “a better quality oflife” for everyone, both today and for future generations.

R E P O R T

LEADERSHIP

we live and work to prosper.

References to trademarked products in this report
are to trademarks owned by and registered to
The Procter & Gamble Company.

S U S T A I N A B I L I T YJCore Values

shareholders, and the communities in which

This report was printed on 50% recycled paper, 10% post-consumer.
© 2000 The Procter & Gamble Company. All rights reserved.

CEO and Chairman’s Statement

REPORTand value creation, allowing our people, ourWe are focusing on several initial steps:• Embracing a more aspirational definition ofsustainability to stimulate innovation. Sustainability“is about ensuring a better quality of life foreveryone, now and for generations to come.”• Focusing sustainability-driven innovation on the twoareas where P&G can contribute most to improving
quality of life — Water and Health & Hygiene.

2 0 0 0SUSTAINABILITY

Sustainable development... is a very
simple idea. It is about ensuring abetter quality of life for everyone,
now and for generations to come.

of superior quality and value that

Sustainability... It’s Both WHAT We Do and HOW We Do It
hen the concept of sustainable development
was first unveiled in 1987, it was a radical idea
— that environment and development are synergistic toeach other, creating the wealth necessary to addresssocial equity issues of poverty and disease that plagued,
and still plague, much of the developing world.

2000

Visit http://www.pg.com/sr
for the full report.

2 0 0 0S U S T A I N A B I L I T Y

Fiscal 1999/2000 was a difficult year for theCompany and for our many employees around theworld. Earnings came in below the goals we hadoriginally established and believed we could achieve,and our stock suffered. In our drive to meet changes
in the marketplace — globalization, the Internet,
consolidation among retailers — we tried to do toomuch too fast. We now have a strong plan tore-establish the balance between top-line revenue
growth and bottom-line earnings growth.
We are confident about P&G’s future because theunderlying strength of our Company remains solid.
• We have a long history of “doing what is right.” In
March 2000, Business Ethics magazine ranked P&G
among the top five in its 100 Best Corporate Citizens list.
• Our top brands command more than a fourth of theirmarkets; we have global leadership in seven productcategories; and we have a steady stream of new
innovations to build our future.
• P&G people have a passion for winning and leading
innovation, and that passion is our greatest strength.
We look forward to the future — for the world’s consumers,for our employees and retirees, and for the communities inwhich we live and work.

A. G. Lafley
President and Chief Executive

John E. Pepper
Chairman of the Board

R E P O R T•

E X E C U T I V E

Visit http://www.pg.com/sr for the full report.

S U M M A R Y