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Now & for Generations to Come2010 SUSTAINABILITY REPORTContents •Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

GRI Index

2 of 82

Contents
Introduction
P&G Sustainability Strategies

3

CEO Statement

4

Leadership Statement

5

P&G Report Card: 2012 Sustainability Goals

6

P&G Profile7

Product Innovation (Strategy 1)

18

Sustainable Innovation Products
Operations (Strategy 2)

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

23
30

Resource & Waste Summary

34

Social Responsibility (Strategy 3)

40

Employee Engagement (Strategy 4)

50

Stakeholder Engagement (Strategy 5)

63

New Environmental Sustainability Vision

73

Awards and Recognition

75

GRI Index

75

About this publication
This is the twelfth Sustainability Report for P&G’s worldwide
operations. Data in this report covers the period from July 1, 2009,
through June 30, 2010. Financial information is given in U.S. dollars.
This report was prepared using the Global Reporting Initiative’s(GRI) G3 Reporting Guidelines. The mission of the GRI is to promoteinternational harmonization in the reporting of relevant and credible
corporate economic, environmental and social performance
information to enhance responsible decision making. The GRI has
not verified the contents of this report, nor does it take a positionon the reliability of information reported herein.
For further information about the GRI, please visit
www.globalreporting.org.
For the latest P&G news, in-depth information
on P&G’s brands, and for shareholder and career
information, please visit www.pg.com

www.pg.com/sustainability

Contents• Introduction •P&G Profile•

Products•

Operations•

Social Responsibility•

Employees •Stakeholders

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.

•

New Vision & Goals•

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Our five sustainability strategies:
Strategy 1: Products
Delight the consumer withsustainable innovations that
improve the environmental
profile of our products.

Strategy 2: Operations

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

Improve the environmental
profile of P&G’s own
operations.

Strategy 3: Social
Responsibility
Improve children’s lives throughP&G’s social responsibility
programs.

Strategy 4: Employees
Engage and equip all P&G
employees to build sustainability
thinking and practices into
their everyday work.

Strategy 5: Stakeholders
Shape the future by working
transparently with our stakeholders to enable continued
freedom to innovate in a
responsible way.

www.pg.com/sustainability

Contents• Introduction •P&G Profile•

Products•

Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

GRI Index

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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 reality that companies like ours must be a force for good in theworld—but being a force for good is not limited to philanthropy anddisaster relief. We are a force for good when we create products andservices that improve people’s lives…when we innovate and operate
responsibly, ethically, and with less environmental impact…when wecreate new product formulations and new distribution models thatmake 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:• Powering our plants with 100% renewable energy• 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 toachieve. Yet, we are fully integrating it into our businesses andprocesses today. It will influence the products we develop, how they
are produced and distributed, and the programs in which we makesocial 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 withrenewable materials that are sourced sustainably. Each of these 10year goals is detailed later in 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 ourimagination and passion. 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 ameaningful 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.

• 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 Vision100%

renewable energy will power our plants%
100

renewable or recycled materials will be
used for all products and packaging

0

consumer and manufacturing waste
will go to landfills

www.pg.com/sustainability

Contents• Introduction •P&G Profile•

Products•

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 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 by2012.
• 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.

Operations•

Social Responsibility•

Employees •Stakeholders

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.

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To learn more about our new
sustainability vision and goals, pleasesee page 73 of this report

Reaching our new vision and goals will be challenging, and something
we know we cannot attain alone. We will continue to partner withanyone who shares our principles and can bring new sustainability
solutions to our business. And with the high caliber of 127,000 P&G
employees who are inspired to make a meaningful difference in the livesof people and the world we share, I am confident we will reach ourdestination.

Len Sauers
Vice President, Global Sustainability

www.pg.com/sustainability

Contents• Introduction •P&G Profile•

Products•

Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

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

Strategy 1: Products

Strategy 3: Social Responsibility

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$ 26.5

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 Children’s Safe
Drinking Water program.(3)PROGRESSSinceJuly 2007

LIVE, LEARN AND THRIVE

Number of Children Reached

Strategy 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)

210 million

CHILDREN’S SAFE DRINKING WATER

Since
July 2007

Since
July 2002

Energy Usage

-14%

-50%

CO2 Emissions

-11%

-53%

Waste Disposal

-50%

-55%

Water Usage

-16%

-55%

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 used inpackaging or products, E. Substitution of nonrenewable energy or materials withrenewable 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. More details can befound on page 49 of this report.

www.pg.com/sustainability

Contents•

Introduction• P&G Profile •Products•

Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

GRI Index

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P&G Profile
Touching & Improving Lives
P&G’s Purpose—to touch and improve lives,
now and for generations to come—is inspiringand pervasive. Our purpose is tightly and deliberately
linked to our business and financial goals. P&G’s
Purpose inspires our strategic choices; it leads us
to bigger and better innovation; it drives brilliant
execution; and it compels us to make a difference
in areas such as sustainability and social responsibility.

Contents
Leadership Brands
P&G at a Glance 
Organizational Structure Manufacturing and Outsourcing 
Governance 
Political Involvement 
Policies and Management Systems for 
Reporting Performance

8
9
11
12
15
16
17

P&G’s world headquarters is located in Cincinnati, Ohio,
U.S.A. Four billion times a day, P&G brands touch the livesof people around the world. The Company has one of thestrongest portfolios of trusted, quality, leadership brands,
including Pampers®, Tide®, Ariel®, Always®, Whisper®,Pantene®, Mach3®, Bounty®, Dawn®, Gain®, Pringles®,Charmin®, Downy®, Lenor®, Iams®, Crest®, Oral-B®,
Duracell®, Olay®, Head & Shoulders®, Wella®, Gillette®,
Braun® and Fusion®. The P&G community includes
approximately 127,000 employees working in about
80 countries worldwide.
Our products are sold in more than 180 countries primarily
through mass merchandisers, grocery stores, membership club
stores, drug stores and “high frequency stores,” the neighborhood stores which serve many consumers in developing
markets. We continue to expand our presence in other channels
including department stores, perfumeries, pharmacies, salonsand e-commerce.
P&G is a publicly owned company. Its stock is listed andtraded on the New York and Paris exchanges.

For more information on P&G’s investor
relations, please visit our website at:www.pg.com/investors/sectionmain.shtml.
Please visit www.pg.com for the latest
news and in-depth information about
P&G and its brands.

www.pg.com/sustainability

Contents•

Introduction• P&G Profile •Products•

Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

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Leadership Brands
To learn more about P&G brands, visit www.pg.com.

173

years

In October 2010, P&G
brands will have helped tomake everyday life a little
better for 173 years.

50

leadership brands

These brands are some of theworld’s most well-known
household names—including
innovative new products thatcomprised five of the top ten
most successful new
introductions in 2009.*

23

brandsNumber of P&G brands
that each generate morethan one billion dollars inannual sales—including
our newest billion-dollar
brand, Ace.

90%of salesThese 50 leadershipbrands account for
90% of P&G sales.

90%of profits

These 50 leadershipbrands account for morethan 90% of P&G profits.

125

innovations

Over the past 15 years,
125 P&G innovations haveearned a spot on SymphonyIRI
Group’s list of each year’s
25 most successful new
products­— more than our six
largest competitors combined.**Source: SymphonyIRI Group New Product Pacesetters™ report (non-food brands),
March 22, 2010 (measured as total year-one dollar sales across food, drug, and mass
channels, excluding Walmart).

www.pg.com/sustainability

Contents•

Introduction• P&G Profile •Products•

Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals

GRI Index•

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P&G at a Glance
Financial Highlights

2010 Net Sales(unaudited)
Amounts in millions, except per share amounts

Net Sales		
Operating Income		
Net Earnings		
Net Earnings Margin from Continuing Operations
Diluted Net Earnings per Common Share from Continuing Operations
Diluted Net Earnings Per Common ShareDividends Per Common Share		

GBU

Reportable Segment

Beauty and Grooming

BeautyGrooming
Health and Well-Being

Household Care

% of
Net Sales*% of Net
Earnings*

24%

23%

10%

13%

Health Care

14%

16%

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

4%
30%

3%
28%

18%

17%

2010

2009

2008

$78,938	16,021	
12,736
13.9%
$   3.53
4.11
1.80	

$76,694	15,374
13,436	
13.9%	$   3.39	
4.26	
1.64	

$79,257
15,97912,07514.2%$   3.40
3.64
1.45

By business segment(% of total business segments)

34%
48%
18%

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

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

By geographic region

15%

Braun, Fusion, Gillette,
Mach3

9%
13%
21%

Always, Crest, Oral-B

Iams, Pringles
Ace, Ariel, Dawn, Downy,
Duracell, Gain, Tide
Bounty, Charmin,
Pampers* Percent of net sales and net earnings from continuing operations for the year ended June 30, 2010 (excluding results held in Corporate).

42%

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

By market maturity

34%
66%

Developed
Developing

For more financial details,
please see P&G’s 2010 Annual Report available at
http://www.pg.com/en_US/investors/index.shtml.

As part of P&G’s initiative to optimize resources to fit a growing global business and to accelerate innovation and growth, the Company operates its
business through Global Business Units (GBUs), as described under Organizational Structure on page 11. This organizational structure accounts for why
P&G does not provide employee data, sales, or profits by individual countries. Some countries may provide this data in reports other than this one.
www.pg.com/sustainability

Contents•

Introduction• P&G Profile •Products•

Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals

Major Acquisitions

Economic Development

Shareholders

Acquisitions used $425 million of cash in 2010,
primarily for the acquisition of Natura, a holistic
and naturals pet products company

Innovation has been—and will continue to be—at the heart of our success. In Fiscal 2010, forthe fourth consecutive year, we invested nearly$2 billion in Research & Development. In fact,
we invest about 50% more than our closest
competitor and more than most of our closest
competitors combined. This leadership level ofinvestment is multiplied by our global networkof external innovation partners, which leads toan effective investment in innovation that far
exceeds the reported spending. Our ExternalBusiness Development group and the Connect& Develop organization manage thousands ofactive connections with other companies andinstitutions. This includes a wide variety of deal
structures, including licensing, sale, technology
swap, joint ventures, and more. P&G’s goal is tobe the partner of choice in working with others
to improve the lives of the world’s consumers.

As of June 30, 2010, there were approximately
2,311,000 common stock shareowners,
including shareholders of record, participants in
the P&G Shareholder Investment Program,participants in P&G stock ownership plans andbeneficial owners with accounts at banks andbrokerage firms.

Proceeds from
Asset Sales
Proceeds from assets sales contributed$3.1 billion to cash in 2010, mainly due to thesale of our global pharmaceuticals business.

Global Purchases
This year, P&G purchased approximately$43.8 billion in materials and services tomanufacture and market our products. We
employ locally and purchase the majority of ourraw materials, equipment and services withinthose regions where we manufacture our
products. Our purchasing professionals
understand and participate in both global andlocal markets to acquire the materials andservices we need to make our products and run
our business. Our purchasing organization is a
critical part of our overall sustainability efforts,
playing a leading role in the development andimplementation of our supplier sustainability
guidelines, our supplier environmental
scorecard, and our supplier diversity efforts.

For more information, please visit
www.pgconnectdevelop.com.

•

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Contact
For more information:• Website: www.pg.com/en_US/investors/
shareholder_services• E-mail: shareholders.im@pg.com• Personal assistance (M – F, 9a – 4p Eastern):
1-800-742-6253; 1-513-983-3034 (outside
U.S. and Canada)• Financial information request line (24 hours):
1-800-764-7483

Write to:
The Procter & Gamble Company
Shareholder Services Department
P.O. Box 5572
Cincinnati, Ohio, U.S.A. 45201-5572

For more information on our supplier sustainability guidelines, please see page 69.
For more information on our supplier environmental scorecard, please see page 32.
For more information on our supplier diversity efforts, please see page 70.

www.pg.com/sustainability

Contents•

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Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

GRI Index

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Organizational Structure

Global Business Services

Our three GBUs are Beauty and Grooming,
Health and Well-Being and Household Care.
The primary responsibility of the GBUs is todevelop the overall strategy for our brands.
They identify common consumer needs,
develop new product innovations and upgrades
and build our brands through effective
commercial innovations and marketing plans.

GBS provides technology, processes, andstandard data tools to enable the GBUs and the
MDO to better understand the business andbetter serve consumers and customers. The
GBS organization is responsible for providing
world-class solutions at a low cost and withminimal capital investment.

Global Operations

Corporate Functions provides Company-levelstrategy and portfolio analysis, corporate
accounting, treasury, external relations,
governance, human resources, and legal as wellas other centralized functional support.

Global Operations is comprised of our Market
Development Organization (MDO), which is
responsible for developing go-to-market plansat the local level. The MDO includes dedicatedretail customer, trade channel, and countryspecific teams. It is organized along fivegeographic units:• North America• Western Europe• Central & Eastern Europe / Middle East / Africa(CEEMEA)

Corporate Functions

Market Development
Organizations

Global Business Units

Our organizational structure is comprisedof three Global Business Units (GBUs),
along with Global Operations, Global
Business Services (GBS), and Corporate
Functions (CF).
Global Business Units

Beauty &Grooming

Health andWell-Being

Household
Care

Global Business Services
Shared Services
Corporate Functions
Governance, Capability, Functional Innovation• Latin America• A sia
Asia is comprised of Japan, Greater China, and
ASEAN / Australia / India / Korea (AAIK).
We define developing markets as the aggregateof CEEMEA, Latin America, AAIK, and Greater
China. Developed markets are comprised ofNorth America, Western Europe, and Japan.

www.pg.com/sustainability

Contents•

Introduction• P&G Profile •Products•

Operations•

Social Responsibility

Manufacturingand Outsourcing
P&G has over 130 manufacturing facilities
in over 40 countries. These facilities
handle the majority of P&G’s production.
Our primary focus is delighting consumers. To
ensure that our products remain affordable, ourmanufacturing facilities must provide the best
possible value for the Company. We conduct
regular reviews to ensure that our facilities arehighly competitive, and this process includes
benchmarking versus third-party
manufacturers.
When it makes sense for the business and it is
the most competitive solution, we may decide
to use contract manufacturers. For example,
sometimes we use them when entering a newmarket or when we may need to access atechnology or process we don’t currently have,
before determining whether we should invest inbuilding our own facility there; or when we are
introducing a new product, so we candetermine production needs prior to investingin new capacity at a P&G facility.

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GRI Index

P&G Plants Locations
As of June 30, 2010
Sometimes we use contract manufacturers on alonger-term basis because it is the mostcost-effective solution for the business. When
we do this we are usually manufacturing in theregion, for the region as our third-party
manufacturers are almost all regional; plus
many of our products do not lend themselves
to shipping long distances. The exception
would be where unique manufacturing
capability exists in one region and we are able
to economically ship across regions.
The percentage of P&G production supplied bycontract manufacturers varies according to theneeds of the business and the ability of P&G
facilities to compete and win production basedon providing the best value. Currently ourplants do this extremely well and we rely on
third-party manufacturers for only 10 to 15
percent of our total manufacturing volume.

COUNTRY

CITY

PLANT NAMECATEGORY OWNER

Argentina

Pilar

Pilar

Fabric Care

Argentina

Villa Mercedes

Villa Mercedes

Baby Care

Belgium

AarschotAarschot

DuracellBelgium

MechelenMechelen

Fabric Care

BrazilLouveira

Louveira

Feminine Care

BrazilManausManausBlades & Razors

BrazilRio De Janeiro

Rio

Hair Care

BrazilSão Paulo

Anchieta

Fabric Care

CanadaBelleville

BellevilleFeminine Care

CanadaBrockville

BrockvilleHome Care

Chile

Santiago

Santiago

Baby Care

China

Beijing

BeijingFabric Care

China

ChengduChengduFabric Care

China

Dongguan

Dongguan

Duracell

China

Guangzhou

Huangpu

Hair Care

China

Minhang

Minhang

Braun

China

Shanghai

Shanghai

Blades & Razors

China

Tianjin

Tianjin

Personal Beauty Care

China

Tianjin

XiqingHair Care

Colombia

MedellínMedellín

Fabric Care

Czech Republic

Rakovnik

RakonaFabric Care

Egypt

Cairo

Cairo

Fabric CareFranceAmiensAmiensFabric CareFrance

Blois

Blois

Hair CareFrancePoissyPoissyPersonal Beauty CareFranceSarreguemines

Sarreguemines

Hair Care

Germany

BerlinBerlinBlades & Razors

Germany

CologneColognePersonal Beauty Care

Germany

Crailsheim

Crailsheim

Feminine Carewww.pg.com/sustainability

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GRI Index

COUNTRY

CITY

PLANT NAMECATEGORY OWNER

COUNTRY

CITY

PLANT NAMECATEGORY OWNER

Germany

Euskirchen

Euskirchen

Baby Care

MexicoNaucalpan

Naucalli

Blades & Razors

Germany

Gross-Gerau

Gross-Gerau

Oral Care

MexicoTepejiTepejiBaby Care

Germany

Hünfeld

HuenfeldHair Care

MoroccoCasablanca

Casablanca

Fabric Care

Germany

Kronberg

Kronberg

Braun

MoroccoMohammedia

Mohammedia

Fabric Care

Germany

Marktheidenfeld

Marktheidenfeld

Oral Care

Netherlands

Coevorden

Coevorden

Pet CareGermany

Rothenkirchen

Rothenkirchen

Hair Care

Nigeria

IbadanIbadanFabric Care

Germany

Walldürn

Wallduern

Braun

PakistanHub

Hub

Personal Beauty Care

Germany

Worms

Worms

Fabric Care

Pakistan

KarachiPort Qasim

Fabric Care

GuatemalaEscuintla

Escuintla

Fabric Care

Peru

Lima

Materiales

Fabric Care

Hungary

CsÖmÖrBudapest

Feminine Care

Philippines

CabuyaoCabuyaoFabric Care

India

BhiwadiBhiwadiBlades & Razors

PolandAleksandrow Lodzki

Aleksandrow

Personal Beauty Care

India

BhopalMandideep

Fabric Care

PolandLodz

Blades & Razors

India

District Solan

Baddi

Fabric Care

Lodz — LMC(Jozefow Street)

India

Goa

Goa

Feminine Care

PolandLodz

Blades & Razors

Ireland

Carlow

Carlow

Braun

Lodz — PLMC
(Wodna Street)

Ireland

NenaghNenaghPersonal Beauty Care

PolandWarsaw

Targowek

Baby Care

Ireland

Newbridge

Newbridge

Oral Care

PortugalGuifões

Porto

Fabric Care

Italy

Campochiaro

Campochiaro

Fabric Care

Puerto Rico

Cayey

Cayey

Personal Beauty Care

Italy

Gattatico

Gattatico

Home Care

RomaniaTimişoaraTimişoara

Fabric Care

Italy

PescaraPescaraFeminine Care

RomaniaUrlaţiUrlaţiHair Care

Italy

Rome

Pomezia

Fabric Care

RussiaDzerzhinsk

Dzerzhinsk

Hair CareJapan

AkashiAkashiBaby Care

RussiaNovomoskovsk

Novomoskovsk

Fabric CareJapan

Ibaraki

IbarakiHair Care

RussiaSt. Petersburg

St. Petersburg

Blades & Razors

Japan

TakasakiTakasaki

Fabric Care

Saudi Arabia

DammamDammamFabric Care

Japan

Yasu

Shiga

Personal Beauty Care

Saudi Arabia

JeddahJeddahBaby Care

Malaysia

KuantanKuantanFabric Care

Singapore

Singapore

Pioneer Perfume

Fabric Care

MexicoApaseo El Grande

MariscalaHair Care

South Africa

Johannesburg

Johannesburg

Baby Care

MexicoApizacoApizacoFamily Care

South Korea

Ch‘onanCh´onanFeminine Care

MexicoMexico City

Naucalpan

Personal Health Care

Spain

JijonaJijonaBaby Care

MexicoMexico City

Talisman

Personal Beauty Care

Spain

Mataró

MatarÓ

Fabric Care

MexicoMexico City

VallejoFabric Care

Spain

Mequinenza

Mequinenza

Baby Care

MexicoNaucalpan

Alce Blanco

Oral Care

Spain

Montornès del VallèsMontornès

Feminine Carewww.pg.com/sustainability

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Introduction• P&G Profile •Products•

Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

14 of 82

GRI Index

COUNTRY

CITY

PLANT NAMECATEGORY OWNER

COUNTRY

CITY

PLANT NAMECATEGORY OWNER

Thailand

Bangkok

BangkokHair Care

United States

Lewisburg

Lewisburg

Pet CareTurkey

Gebze

Gebze

Fabric Care

United States

Lima

Lima

Fabric Care

UkraineBorispolBorispolFeminine Care

United States

Mehoopany

Mehoopany

Family Care

UkraineOrdzhonikidze

Ordzhonikidze

Fabric Care

United States

North Chicago

North Chicago

Personal Beauty Care

United Arab Emirates

Dubai

Dubai

Fabric Care

United States

OxnardOxnardFamily Care

United Kingdom

LondonLondonHome Care

United States

Phoenix

Phoenix

Personal Health Care

United Kingdom

Manchester

Manchester

Baby Care

United States

Pineville

Alexandria

Fabric Care

United Kingdom

Reading

Reading

Personal Beauty Care

United States

Russellville

Russellville

Pet Care

United Kingdom

Whitley Bay

Seaton Delaval

Personal Beauty Care

United States

Sacramento

Sacramento

Fabric Care

United States

AlbanyAlbanyFamily Care

United States

St. Louis

St. Louis

Home Care

United States

AndoverAndover

Personal Beauty Care

United States

Stamford

Stamford

Hair Care

United States

AuburnAuburnFeminine Care

Venezuela

Barquisimeto

Barquisimeto

Fabric Care

United States

Augusta

Augusta

Fabric Care

Venezuela

GuatireGuatireBaby Care

United States

AuroraAuroraPet CareVietnamBinh Duong

Binh Duong

Fabric Care

United States

AvenelAvenelFabric Care

United States

Bear River City

Box Elder

Family Care

United States

BostonBostonBlades & Razors

United States

Cape Girardeau

Cape Girardeau

Baby Care

United States

Cincinnati

Cincinnati

Fabric Care

United States

Cleveland

Cleveland

DuracellUnited States

Cockeysville

Hunt Valley

Personal Beauty Care

United States

Dover

Dover

Baby Care

United States

Green Bay

Green Bay

Family Care

United States

Greensboro

Greensboro

Oral Care

United States

Henderson

Henderson

Pet Care

United States

Iowa City

Iowa City

Hair Care

United States

Iowa City

Iowa City

Oral Care

United States

JacksonJacksonSnacksUnited States

Kansas City

Kansas City

Home Care

United States

LaGrange

LaGrange

DuracellUnited States

Lancaster

Lancaster

DuracellUnited States

Leipsic

Leipsic

Pet Carewww.pg.com/sustainability

Contents•

Introduction• P&G Profile •Products•

Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

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Governance
The objective of our governance structure
is to maintain corporate governanceprinciples, policies, and practices that
support management and Board of
Directors accountability. These are in thebest interest of the Company and ourshareholders, and they are consistent
with the Company’s Purpose, Values andPrinciples. We believe that good governance practices contribute to better
results for shareholders. Everything we do
is done with our commitment to “doing
the right thing” in mind.
Governance Structure
We believe that good governance practices
contribute to better results for shareholders.
Our objective is to maintain corporate
governance principles, policies, and practices
that support management and the Board of
Directors accountability. These are in the bestinterest of the Company and our shareholders,
and they are consistent with the Company’s
Purpose, Values and Principles.
Governance starts with the Board of Directors,
which has general oversight responsibility for
the Company’s affairs pursuant to Ohio’s
General Corporation Law, the Company’s
Amended Articles of Incorporation and Code ofRegulations, and the Board of Directors’
Bylaws. In exercising its fiduciary duties, theBoard of Directors represents and acts onbehalf of the Company’s shareholders.
Although the Board of Directors does not have
responsibility for the day-to-day managementof the Company, it stays informed about theCompany’s business and provides guidance toCompany management through periodic
meetings, site visits and other interactions. The
Board is deeply involved in the Company’s
strategic planning process, leadership development and succession planning. The Board also
takes an active approach to risk managementby overseeing the Company’s strategic plans,
the associated risks, and the steps that senior
management is taking to manage and mitigate
those risks.
Additionally, the Board has adopted guidelines
for determining the independence of its
members. As of June 30, 2010, 80 percent ofour directors qualified as being independent
from the Company.
The Board has approved a code of conduct,outlined in our Worldwide Business Conduct
Manual. This code applies to all directors,
officers, and employees and is designed to help
ensure compliance with all applicable laws andCompany policies, including those related tosustainable development. Shareholders may
communicate with the Board of Directors andsubmit shareholder proposals as described in
the Company’s proxy statement.
Additional detail on the role andstructure of the Board of Directors, ourArticles of Incorporation, the Code ofRegulations, Corporate Governance Guidelines,
Independence Guidelines, charters for all Board
committees, the Worldwide Business Conduct
Manual, and our Related Person Transaction
Policy are available at our website at www.
pg.com/en_US/company/global_structure_operations/governance/index.shtml

Management’s Responsibility
for Financial Reporting
P&G has a strong history of doing what’s right.
Our employees embrace our Purpose, Values
and Principles. If you analyze what has madeour Company successful over the years, you
may focus on our brands, our marketingstrategies, our organizational design, and ourability to innovate. But if you really want to getat what drives our Company’s success, the place
to look is at our people. Our people are deeplycommitted to our Purpose, Values andPrinciples. It is this commitment to doing what’s
right that unites us.
This commitment to doing what’s right isembodied in our financial reporting. Highquality financial reporting is our responsibility— one we execute with integrity and withinboth the letter and spirit of the law.
High-quality financial reporting is characterized
by accuracy, objectivity, and transparency.
Management is responsible for maintaining aneffective system of internal controls overfinancial reporting to deliver those characteristics in all material respects. The Board of
Directors, through its Audit Committee,
provides oversight. They have engaged Deloitte& Touche LLP to audit our consolidated financial
statements, on which Deloitte has issued an
unqualified opinion.
Our commitment to providing timely, accurate,
and understandable information to investors
encompasses:

Communicating Expectations to
Employees — Every employee — from senior
management on down — is required to be
trained on the Company’s Worldwide BusinessConduct Manual, which sets forth theCompany’s commitment to conduct its businessaffairs with high ethical standards. Every
employee is held personally accountable forcompliance and is provided several means ofreporting any concerns about violations of theWorldwide Business Conduct Manual.
The Worldwide Business Conduct
Manual is available on our website atwww.pg.com/en_US/company/global_
structure_operations/governance/index.shtml
Maintaining a strong internal control
environment — Our system of internal controls
includes written policies and procedures,segregation of duties, and the careful selection
and development of employees. The system isdesigned to provide reasonable assurance thattransactions are executed as authorized andappropriately recorded, that assets are
safeguarded, and that accounting records are
sufficiently reliable to permit the preparation offinancial statements conforming in all material
respects with accounting principles generally
accepted in the United States of America. We
monitor these internal controls through control
self-assessments conducted by business unit
management. In addition to performing
financial and compliance audits around theworld, including unannounced audits, our
Global Internal Audit organization provides
training and continuously improves internal
control processes. Appropriate actions aretaken by management to correct any identified
control deficiencies.

www.pg.com/sustainability

Contents•

Introduction• P&G Profile •Products•

Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

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Political Involvement
Executing financial stewardship — We
maintain specific programs and activities toensure that employees understand theirfiduciary responsibilities to shareholders. This
ongoing effort encompasses financial disciplinein our strategic and daily business decisions,and brings particular focus to maintaining
accurate financial reporting and effective
controls through process improvement, skill
development and oversight.

and experience. We review significant accounting policies, financial reporting and internal
control matters with them, and encourage their
independent discussions with external auditors.

Exerting rigorous oversight of the business —We continuously review our business results
and strategic choices. Our Global LeadershipCouncil is actively involved — from understanding strategies to reviewing key initiatives,
financial performance, and control assessments.
The intent is to ensure that we remain objective,
identify potential issues, continuously challenge
each other, and ensure that recognition andrewards are appropriately aligned with results.

• Support the business strategy

Engaging our Disclosure Committee —We maintain disclosure controls and procedures
designed to ensure that information required tobe disclosed is recorded, processed, summarized, and reported accurately and in timely
fashion. Our Disclosure Committee is a group ofsenior-level executives responsible for evaluating disclosure implications of significant
business activities and events. The Committee
reports its findings to the CEO and CFO,
providing an effective process to evaluate ourexternal disclosure obligations.
Encouraging strong and effective corporate
governance from our Board of Directors —We have an active, capable and diligent Board
that meets the required standards for independence, and we welcome the Board’s oversight.
Our Audit Committee comprises independent
financial directors with significant knowledge

Executive Compensation
The Compensation & Leadership Development
Committee has established the following
principles for compensating all Company
employees:• Pay for performance• Pay competitively
These overall principles have served theCompany well and enabled us to deliver strong
shareholder value over time. The Committee
and the Board of Directors are charged with theconsistent and fair application of theseprinciples. Over time, we believe this has helped
to develop and retain talented employees whoare committed to the Company’s success.
Additionally, we expect executives to upholdthe fundamental principles in the Company’s
Statement of Purpose, Values and Principles, inaddition to the Worldwide Business Conduct
Manual, the Sustainability Report, and theEnvironmental Quality Policy. These principles
include integrity, maximizing the developmentof each individual, developing a diverse
organization, and continually improving theenvironmental quality of the Company’s
products and operations. In upholding theseprinciples, executives not only contribute totheir own success but also help ensure theprosperity of P&G’s business, employees,
shareholders, and the communities in which theCompany operates.

P&G’s political involvement is an important means of building and protecting
our business.
Guided by our Purpose, Values and Principles,P&G participates in the political process tohelp shape public policy and legislation thathas a direct impact on the Company. This
engagement ensures that the interests ofour employees, consumers and shareholders
are fairly represented at all levels of government
around the world. We are committed tobeing transparent about our political involvement globally.
P&G’s public policy and legislative priorities
are reviewed regularly with senior businessleaders and annually with the Governance andPublic Responsibility Committee of the Boardof Directors.

Lobbying Activity
P&G’s Global Government Relations team (P&G
GGR) represents the Company’s point of view inWashington, D.C., in U.S. state capitals and in
key country capitals around the world. Working
with the businesses, P&G GGR focuses onlegislative and public policy issues that impact
the Company’s bottom line and long-termbusiness interests. Where permitted by law,
P&G GGR engages and educates policy makers
and key stakeholders on issues that impact ourbusiness; facilitates the exchange of information
between key decision-makers and public policy
organizations in the U.S. and abroad; and leads
Company actions on policy matters both
unilaterally and in industry coalitions andassociations.

P&G complies with all U.S. federal and state
laws, including the Lobbying Disclosure Act andHonest Leadership and Open Government Act
that require reporting on lobbying activities andcertification of compliance with Congressional
gift rules. P&G reported U.S. lobbying expenditures of $4.44 million in the lobbying disclosure
reports filed with the Clerk of the U.S. House ofRepresentatives and the Secretary of the U.S.
Senate for the 2009 calendar year. In fiscal year
2008–2009, P&G reported lobbying activity inthe range of €300,000 to 350,000 in theEuropean Union under voluntary guidelines
issued by the EU Commission.
In 2009, P&G spent roughly $8 million in dues
to U.S. associations with annual dues of$25,000 or more, of which $1.47 million,
roughly 18 percent, was identified by 47
associations as funds spent on lobbying andpolitical activities.
You can download a listing of P&G’s U.S.
associations and percentage of dues
attributable to political activities atwww.pg.com/en_US/company/global_
structure_operations/governance/governance_
political.shtml.

U.S. Corporate Political Activity
P&G engages in the political process byproviding financial support to selected stateballot initiatives and issue advocacy campaigns
that have a direct impact on the business. P&G’s
involvement in these campaigns is overseen bya multifunctional team comprised of representatives from Global Government Relations,
Legal, Human Resources, Corporate
Communications and other functions related tothe specific issue under consideration. The team

www.pg.com/sustainability

Contents•

Introduction• P&G Profile •makes recommendations to the Global External
Relations Officer for approval, or for further
review and approval by the CEO and Chairman
as appropriate. As with all other aspects ofour political involvement, our participation insuch efforts is guided by our Purpose, Values
and Principles and by our business strategies,
and is fully reported in accordance withgoverning laws.
P&G has no plans to use corporate funds tosupport independent political expenditures,
nor to make contributions to trade associations
for that purpose. Further, we do not use
corporate funds to support candidates or
527 organizations in states where it is legallypermissible to do so.
In 2009, P&G gave $118,000 in contributions
to ballot initiatives and other issue advocacy
campaigns that had a direct impact on
the business.
You can download a listing of these
initiatives at www.pg.com/en_US/
company/global_structure_operations/
governance/governance_political.shtml.

P&G Political Action Committee(P&G PAC)
The P&G PAC is a voluntary, nonpartisan
political action committee. Registered as
the P&G Good Government Committee with
the U.S. Federal Election Commission (FEC)and appropriate state offices, the PAC allows
P&G employees to pool personal, voluntaryfinancial contributions to support candidates
at the federal, state and local level, who
support issues important to the business andthe quality of life in the communities in which
we live and work.

Products•

Operations•

Social Responsibility

P&G PAC operations are transparent andcompliant with all applicable laws. It isgoverned by a set of bylaws and supervised bya diverse board of senior Company managers,
U.S. government relations personnel, andlegal counsel.
Support of candidates is based on their supportof P&G issues and sustained constituent
relationships. The PAC generally does notcontribute to Presidential candidates, national
political parties, trade and industry associationor leadership PACs, or multiple candidates
running in the same race. In 2009, the P&G PAC
made 252 contributions to political candidates
or committees totaling $302,129. The averagecontribution was about $1,200.
P&G PAC activity is available on the FEC
and state elections websites. You canaccess a listing of all 2009 PAC contributions at
www.pg.com/en_US/company/global_
structure_operations/governance/governance_
political.shtml.

•

Employees •Stakeholders•

New Vision & Goals

Policies and Management
Systems for Reporting
Performance
Policies
While P&G competes hard to achieve leadershipand business success, the Company isconcerned not only with results, but also withhow those results are achieved. We will nevercondone or tolerate efforts or activities toachieve results through illegal or unethicaldealings, anywhere in the world.

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

Performance
P&G measures operational performance inorder to drive continuous improvement. A
company-wide system of measuring performance has been developed. This approachenables the Company to report data on a wide
range of operational categories. Our actions are
not just profit-driven but also progress-driven,to ensure a better quality of life for everybody,
now and for generations to come. Our
extensive consumer research related to ourbrands also helps us identify ways we can best
address sustainability.

Acquisitions•

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performance with respect to meeting all of P&G
standards. We allow a six-year glide path tomeet the audit performance score of 8.0 out ofa ten-point scale. A mid-point expectation is
6.5 within three years. Our experience has beenthat the acquisitions exceed those expectations.

Process for Data Collection
P&G’s data collection systems have been inplace for many years. They are designed to be
simple enough so that the people closest to thework can use the tools, regardless of location.
This simplicity enables the Company to collectdata and update systems annually at a relatively
low cost. Each business unit is responsible forthe accuracy and consistency of its data.
All data is reported on a global basis. In orderto achieve consistency and to ensure a common
understanding throughout the organization,
employees are trained in how to report anddocument data. Our standard is to use metricunits and English as our business language,
backed where necessary with local translations.
To ensure the standard collection of data, theCompany has the following work process inplace:• Key terms are defined.
• The data to be collected are identified.
• Flow sheets are agreed upon regarding whocollects data and on what systems.
• Technically sound methods are used byfacilities to estimate data and validate
year-to-year results.
• Personnel are trained on the work process, as
appropriate.

Acquisitions have been included in the metrics
presented herein. The only thing that isdifferent for acquisitions is the expectations ofwww.pg.com/sustainability

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Introduction•

P&G Profile• Products •Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

GRI Index

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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 dothis, P&G takes a scientific approach. We helped
pioneer an approach called Life Cycle Assessment,
which considers the environmental footprint ofa product across its entire life cycle, from raw
materials to manufacturing, to consumer use anddisposal. By understanding the impact at eachphase of the total life cycle, we can focus oursustainable innovations where they will have themost meaningful environmental improvement.

Contents
Products with Purpose
Future Friendly
Sustainable Innovation Products
Environmental Quality Policy
Product Safety
Product Safety Organization
Animal Research and Welfare
Wood Pulp Procurement Policy
Palm Oil

19
21
23
24
25
26
26
27
29

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Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

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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 andexternal LCAs showed that the sourcing andproduction of raw materials is the life 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 (paperpulp) 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 corehelps 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 than I will be, I hope. So I want
to do as much for the environment as
I possibly can until my child is toilet
trained. The new Pampers Active Fit with
Dry Max is thinner—which is good forthe environment, because it produces
less waste. But it’s also nicer for thechild 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

ALLDAYS PROGRESS IN NUMBERS**

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

reduction inenergy demand10%

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

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile• Products •Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals

Reducing Packaging Materials

Designing Smarter Packaging

Innovative design applies to our products aswell as our packaging. Whether we use
modeling and simulation to make a more
lightweight bottle, or find a way to ship productwithout corrugated cases, we have been
evaluating every aspect of our packaging andshipping materials to find more sustainable
solutions. Our holistic development process
allows us to see the far-reaching benefits
product compaction creates. And by partneringwith new firms and working with existing
suppliers through our Connect & Develop
program, we have uncovered ways to do morewith less. One innovation involves the use ofalternative material feed stocks, 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 with abottom-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 upgradeddisplay tray includes an easily detachable “hood”
that protects the product in shipping andrequires no printing.

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

Previous•

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20 of 82

New

ALLDAYS PROGRESS IN NUMBERS

735

tons of paper saved
per year368

fewer truck trips

80%

reduction in ink usagewww.pg.com/sustainability

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P&G Profile• Products •Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

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Future Friendly
Providing Consumer Education
In fiscal 2010, P&G launched a program in the
U.S. called Future Friendly which combines thepower 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 oflaundry comes from heating 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 to conserve resources,
and it is partnering with National Geographic
to create educational materials focused on
in-home conservation, with tools and tips tohelp reduce water use, energy consumption
and waste.
First launched in the UK in 2007 and in Canada
in 2008, Future Friendly is rolling out acrossWestern Europe in the summer of 2010.

www.pg.com/sustainability

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Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

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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
with plastics recycling. As a result, P&G began
to avoid the use of PVC in its packaging in theearly 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 usesof PVC in our packaging within the next
few years.

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P&G Profile• Products •Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

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Sustainable Innovation Products 2009 – 2010
Products with a significantly reduced (>10%) environmental footprint versus previous or alternative products

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 reductionwww.pg.com/sustainability

Contents•

Introduction•

P&G Profile

While our focus on innovation keeps us
on the cutting edge of technology andconsumer understanding, we work froma strong foundation and commitment toensuring that our products, packaging,and operations are safe for employees,
consumers, and the environment. This
commitment is brought to life by thepolicies, procedures, and organizations
on the following pages.

• Products •Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

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Environmental
Quality Policy
We will provide products and services ofsuperior quality and value that improve the livesof the world’s consumers. As part of thisprocess, P&G continually strives to improve theenvironmental quality of its products, packaging, and operations around the world. To carryout its environmental Quality Policy, P&G:
• Ensures that our products, packaging, andoperations are safe for our employees,
consumers, and the environment.
• Reduces or prevents the environmental
impact of our products and packaging in theirdesign, manufacture, distribution, use, anddisposal whenever possible. We take aleading role in developing innovative,
practical solutions to environmental issues
related to our products, packaging, andprocesses. We support the sustainable use ofresources and actively encourage reuse,recycling, and composting. We shareexperiences and expertise and offer assistance to others who may contribute toprogress in achieving environmental goals.

• Meets or exceeds the requirements of allenvironmental laws and regulations. We use
environmentally sound practices, even in theabsence of governmental standards. We
cooperate with governments in analyzing
environmental issues and developing
cost-effective, scientifically based solutions
and standards.
• Continually assesses our environmental
technology and programs and monitors
progress toward environmental goals. We
develop and use state-of-the-art science andproduct life cycle assessment, from raw
materials through disposal, to assess
environmental quality.

• Ensures that every employee understands andis responsible and accountable for incorporating environmental quality considerations indaily business activities. We encourage,
recognize, and reward individual and teamleadership efforts to improve environmental
quality. We also encourage employees toreflect their commitment to environmental
quality outside of work.
• Has operating policies, programs, andresources in place to implement ourEnvironmental Quality Policy.

• Provides our consumers, customers,
employees, communities, public interest
groups, and others with relevant andappropriate factual information about theenvironmental quality of P&G products,
packaging, and operations. We seek toestablish and nurture open, honest, andtimely communications and strive to be
responsive to concerns.

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Employees •Stakeholders•

New Vision & Goals•

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Product Safety
Household consumer products use a variety ofchemical ingredients to provide benefits tosociety, such as cleaner homes and improved
health and personal hygiene, thus enabling an
overall better quality of life. One expectation of
consumer products is that they will be safe forthose using them and safe for the environment.
Throughout its history, P&G has believed thatthe safety of our products is a prerequisite forresponsible business. Our co-founder, James
Gamble, stated in the mid-1800s that “if you
cannot make pure goods and full weight, go tosomething else that is honest, even if it isbreaking stone.” Today, this philosophy isreflected in our Statement of Purpose: “We will
provide branded products and services ofsuperior quality and value that improve the livesof the world’s consumers, now and forgenerations to come.” Safety is an intrinsic partof our products’ quality and value, and thereputation of every P&G product depends upon
the trust of consumers that they are safe.

Our commitment to safety is reflected in the
more than 700 in-house experts devoted
globally to ensuring the environmental andhuman safety of all our ingredients andproducts before they go to market, as well as
ensuring that they comply with laws andregulations in each of the markets where they
are sold. Our approach to safety reassurance isbased on broadly accepted practices that arerecommended by regulatory agencies andscientists around the world:• We first evaluate the potential for an
ingredient to cause adverse effects (hazards)
using published and accepted scientificmethods. We also consider susceptible
populations such as children. These data areused to determine what levels of an ingredient are safe for humans and the environment.
• We then evaluate potential exposures forpeople and the environment, considering
worst-case product use scenarios based on
our understanding of how our products are
actually used, as well as how they may reachthe environment.
• Only products that result in exposures thatare well within safe levels make it through ourevaluation process.

Some believe that it might be better to basedecisions about safety on an ingredient’s
hazards alone. This has been coupled with calls
for the far-reaching use of the “precautionary
principle,” whereby substances that areclassified as “hazardous” would be broadly
restricted, with little further evaluation. We
recognize the attraction of such a “black andwhite” approach. However, we believe that it
could cause chemicals being used safely to beunjustifiably removed from the market,
potentially depriving society of innovative andbeneficial technologies that improve people’s
lives. Furthermore, experience has shown thateven chemicals that could be considered“non-hazardous” (e.g., salt) can cause harm
under certain circumstances, while potentially“hazardous” chemicals can be safely used (e.g.,ethanol).
Thus, there is no simple short cut to deciding
whether an ingredient is safe or harmful. This
type of decision should only be made after athorough science-based approach. From a
policy standpoint, we continue to believe thatchemicals management programs and thesafety of household consumer products should
be based on:

1. Efficient science-based priority setting
processes that use hazard data and basic
exposure information together to identify
issues of potential concern, followed bysafety assessments that analyze chemicals ina tiered fashion to resolve such issues.
2. Risk management decisions that optimize thesafety of our products.
3. Communications that provide meaningful
and relevant safety information, so that
consumers can make knowledgeable
decisions.
These policies are the foundation of what we
do internally, as well as what we encourage
across government and industry. Internally, they
are enabled by collaboration among our
Research & Development, Product Safety andRegulatory Affairs, Manufacturing, andCommunications organizations, as well as oursenior management.

• Our efforts go beyond safety and include
product life cycle issues such as energy andresources use, and waste management.

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Contents•

Introduction•

P&G Profile• Products •Operations•

Social Responsibility

Product Safety
Organization
environment (via their disposal), completes
human and environmental safety assessments.
These assessments are completed for every
product before it goes to market, and also
guide in the development of new technologies.

PS&RA also addresses other environmental
aspects of products and packages, such as theircompatibility with waste management systems,
natural resource use, or issues of perceived
safety. In addition, PS&RA ensures that any
claims the Company makes about the safety or
environmental profile of its products are
scientifically sound. To accomplish this mission,
the PS&RA organizations in each business unit
work closely with product development teamsin the development, selection, and formulationof product ingredients and mixtures withacceptable safety profiles.

CPS and other PS&RA experts also participate ina variety of scientific, professional and industry
association activities related to safety. They arealso involved in key national and international
initiatives (e.g., United Nations, Organization for
Economic Cooperation and Development)
directed toward supporting the soundmanagement of chemicals around the world by
sharing our toxicity information and establishing principles for promoting the safe andresponsible use of chemicals.

CPS conducts basic research to develop new
methods for evaluating safety. In collaboration
with other PS&RA colleagues, it conducts
studies in human and environmental toxicology
and environmental fate, and, together with an
in-depth understanding of exposures to
consumers (via product use) and the

Employees •Stakeholders•

New Vision & Goals•

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Animal Research andWelfareProduct Safety & Regulatory Affairs (PS&RA) is
responsible for ensuring that products andpackages are safe for consumers, safe for theenvironment, and in compliance with laws andregulations where they are sold.

A key part of PS&RA is the Central Product
Safety (CPS) organization. The primary role of
CPS is to advance the science used to understand and evaluate the human and environmental safety and impact of our products andincludes development of new methods using
the latest advancements in science andtechnology. It is helped in this process by anExternal Advisory Board consisting of several
distinguished academic scientists.

•

For further details on the science andsafety of P&G products, we encourage
you to visit these websites:
Science in-the-Box:
www.scienceinthebox.com
The Science of Beauty:
www.pgbeautyscience.com
PG.com: www.pg.com/en_US/sustainability/
product_safety.shtml.

P&G products are used in homes around theworld 4 billion times a day, and we arecommitted to safeguarding the health of ourmany consumers.
Sometimes, to ensure that materials are safeand effective, we must conduct research
involving animals. This is a last resort. We
consider such research only after every otherreasonable option has been exhausted. The
vast majority of our tests do not use animals.
Wherever possible, we use computer models,
synthetic materials, published scientificstudies, and comments from consumers about
products they use. P&G is well known forleadership in developing alternatives to animal
tests, investing more than $270 million anddeveloping or adapting more than 50
alternative methods.
We approach our work with respect, openness,and responsibility by using animals as a lastresort, working with animal welfare organizations and ensuring high standards of care. We
collaborate with governments and academia topromote the acceptance of alternatives. We
actively share our discoveries so that others canbenefit from them. News of our advances has
been shared in more than 1,000 scientificpublications. We seek input from the world’s
leading experts to continuously improve ourapproach.
For details of our policy and practices,
please go to: www.pg.com/en_US/
sustainability/point_of_view/animal_welfare.
shtml.

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P&G Profile• Products •Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

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Wood Pulp
Procurement Policy
P&G purchases wood pulp for tissue andabsorbent hygiene products. Though we do not
own or manage forests, we have a responsibility through our procurement practices to ensuresustainability of the world’s forest resources. As
such, we are committed to understanding thesources of our pulp fiber, transparency insourcing, ensuring that sustainable forest
management practices are used, avoiding
unwanted sources of wood, and working withstakeholders on stepwise increases in preferredcertification schemes. Independent third-party
verification systems are used to ensuresustainable forest management and woodtraceability, while we work with global
multi-stakeholder organizations to develop
tools and scientific methods to protect values
and services that forests provide such as
biodiversity, watershed protection and climate
moderation. For transparency, P&G does track
and report annually the amount of wood pulp
it purchases and relevant information on
certification status.

Sustainable Forest Management
P&G purchases wood pulp from suppliers that:• Ensure the safety of forestry and manufacturing operations for employees and theenvironment.
• Document that wood is legally harvested andthat other legal requirements are met. P&G
will not knowingly use illegally sourced woodfiber in our products.
• Practice principles of sustainable forest
management and continuous improvement intheir own operations and in sourcing ofwood, as verified by independent forest andchain-of-custody certification.

• Do not obtain wood from High Conservation
Value Forests. P&G supports multi-stakeholder efforts to develop information sources
and tools that will help suppliers identify
these areas on their own forestlands and intheir procurement of wood raw materials
from third parties (e.g., www.hcvnetwork.org).
• Do not obtain the wood from geneticallymodified tree sources.
• Reflect our social values and support ofuniversal human rights through work withlocal governments and communities toimprove the educational, cultural, economic
and social well-being of those communities.
• Do not source wood from conflict timber(timber that was traded in a way that drives
violent armed conflict or threatens national orregional stability).
We ensure compliance with this policy throughsite visits, comprehensive surveys and research,required documentation, and independent
third-party certification of sustainable forest
management practices. P&G requires pulp
suppliers to independently certify theiroperations for sustainable forest management.
P&G also requires suppliers to provide auditableassurance that wood from sources not directly
owned and managed by them is legally sourced
and that harvest is conducted via sustainable
practices.

Forest Certification
We give preference to pulp from Forest
Stewardship Council (FSC) certified forests
when it is available and meets productperformance requirements and competitivemarket conditions. We will utilize FSC controlledwood in a stepwise approach to progressively
increase the amount of pulp from FSC certified
sources. P&G is a member of the FSC andactively participates in ongoing discussions
concerning FSC standards. As a minimum
standard, P&G requires that any wood pulp
supplier ensures that their forest certification
systems are consistent with the following
generally accepted criteria for sustainable forest
management:• A commitment to forest regeneration andreforestation.
• Protection of soil quality, riparian zones andwater quality.
• Protection of ecologically and culturally
unique forest areas.
• Maintenance and conservation of biologicaldiversity.
• Participation of interested and affectedstakeholders.
• Continuous improvement in forestry
practices.
• Compliance with legislation, agreements andaccords.
• Support of universal human rights andrespect for ownership and use rights of local
communities and indigenous people.

• Multi-stakeholder governance and transparency in decision making and reporting.
• Independent third-party verification offorestry practices and chain of custody forwood fiber.

Forest Conversion
P&G may use wood fiber harvested fromrecently converted forest lands only if the
supplier can demonstrate that they haveprotected HCV forests using standards andtools developed through multi-stakeholder
efforts (e.g., www.hcvnetwork.org) and thatthe forestry practices meet the minimum
criteria previously discussed.

Efficient Use of Resources
P&G is committed to reducing demand on theworld’s forests and other resources. P&G
believes that we should invest our resources
where we can make the greatest sustainability
improvements and will continue to:• Focus on source reduction in the long term or
use of less fiber through development ofinnovative technologies that provide
maximum product performance using
minimal fiber.
• Evaluate the use of non-forest derived sourcesof fiber, recognizing that alternatives mustalso meet principles of sustainable
management.
• E xplore and implement energy and water
conservation opportunities in our paper
making operations.

• Avoidance of unwanted wood sources.

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Contents•

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P&G Profile

Wood Pulp
Procurement Policy (continued)• Use recovered fiber when it has no negative
impact on product performance, manufacturing efficiency, resource and energy usage,
and waste generation. We will continue toinvest in research to identify the technicalbreakthroughs needed to allow us to use
recovered fiber in our premium products
without an impact on product performance,
manufacturing efficiency, resource andenergy usage, and waste generation.

• Products •Operations

34.1%

Canada32.1%

Brazil33.6%

France0.2%•

Employees •Stakeholders•

New Vision & Goals

Term

Definition

Unwanted Source

A source that falls within one or more of the following categories:•

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• The source forest is known or suspected of containing high conservation values, except where:
The forest is certified or in progress to certification under a credible certification system, orT he forest manager can otherwise demonstrate that the forest and/or surrounding landscape is managed to ensure
those values are maintained.
• The source forest is being actively converted from natural forest to a plantation or other land use, unless the conversion
is justified on grounds of net social and environmental gain, including the enhancement of high conservation values inthe surrounding landscape.
• The timber was illegally harvested or traded.
• The timber is conflict timber (i.e., it was traded in a way that drives violent armed conflict or threatens national orregional stability).
• The harvesting or processing entity, or a related political or military regime, is violating human rights.
• The timber is from genetically modified trees.
• The source forest is unknown.
High Conservation
Value Forests

High Conservation Value areas are critical areas in a landscape which need to be appropriately managed in order tomaintain or enhance high conservation values. There are six main types of HCV areas:• HCV1. Forest areas containing globally, regionally or nationally significant concentrations of biodiversity values (e.g.
endemism, endangered species).

All of our pulp suppliers who own their own
forests have ceritfied their forestry operations
for sustainable forest management under oneof the following certifications schemes: SFI,
CERFLOR, PEFC, or CSA.
P&G has a goal of increasing FSC certified fiber
as acceptable sources are available that meet
our product and process requirements. P&G isactively working with suppliers to obtain
credibly certified material via a stepwise
approach. At the end of Fiscal Year 2009/2010,
68% of our pulp supply was FSC Controlled
Wood Certified.

Social Responsibility

Definition of Key Terms in Wood Pulp Procurement Policy

P&G bought a total of 1.60 million ADMT (airdried metric tons) of pulp in 2009–2010 for
use in our tissue/towel products, diapers, andfeminine hygiene products. The pulp was
sourced from the following regions:
United States•• HCV2. Forest areas containing globally, regionally or nationally significant large landscape level forests, contained
within, or containing the management unit, where viable populations of most if not all naturally occurring species exist
in natural patterns of distribution and abundance.
• HCV3. Forest areas that are in or contain rare, threatened or endangered ecosystems.
• HCV4. Forest areas that provide basic services of nature in critical situations (e.g., watershed protection, erosion control).
• HCV5. Forest areas fundamental to meeting basic needs of local communities (e.g., subsistence, health).
• HCV6. Forest areas critical to local communities’ traditional cultural identity (areas of cultural, ecological, economic or
religious significance identified in cooperation with such local communities).
Illegal Sourced Wood

Illegal logging occurs when timber is harvested, transported, processed, bought or sold in violation or circumvention ofnational or subnational laws. Illegal activities often have a devastating impact on biodiversity as well as humancommunities.

Conflict Timber

Timber that was traded in a way that drives violent armed conflict or threatens national or regional stability.

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Palm OilP&G is committed to the sustainable sourcing ofpalm oil. By 2015, we intend to purchase anduse palm oil that we can confirm to haveoriginated from responsible and sustainablesources. We will seek to accomplish this goal
through the following key steps:

Supplier and Partner Coaching
We will continue to share and reinforce our
expectations related to sustainability, andencourage and reward “sustainable behavior”
on behalf of our partners and suppliers. This
will include visits to our suppliers and audits of
their on-the-ground operations to ensure that
their practices will meet or exceed oursustainability expectations, including theirselection, purchase, and responsible use of land
for the planting of palm plantations. We
recognize the criteria and certification of theRoundtable for Sustainable Palm Oil (RSPO) as
evidence of sustainable palm oil sourcing. We
will continue to partner with both known
suppliers with whom we have long-standing
relationships and trust, as well as with emerging
suppliers who embrace and support our
corporate sustainability principles andexpectations.

Stakeholder Partnerships
We will expand and strengthen relationships
with trade associations, government agencies,
nongovernmental organizations (NGOs), andother critical external stakeholders to help
influence positive changes and incremental
sustainability improvements in the palm oil
supply chain and industry. We will partner withthird-party organizations to help confirm andvalidate our palm oil sourcing and use strategies. Sustainable sourcing of palm oil is one of
the areas we will work on jointly with WWF aspart of our new Global Partnership.

Industry Influence
We will continue to support industry efforts toeliminate irresponsible and/or illegal deforestation of land for use in the planting andharvesting of palm plantations, as well as
efforts to help ensure the appropriate selection
and designation of land for such uses.
We will report progress on sustainable palm oilsourcing in future sustainability reports.
Please see page 66 for additional
perspective on our partnership with WWF.

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Employees •Stakeholders•

New Vision & Goals•

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Strategy 2

Operations
Taking an End-to-End Approachto Sustainability
Last year, we expanded our holistic approach tosustainability across our entire supply chain to include
not only manufacturing and facility construction andoperations, but also finished product logistics andsupplier engagement.
In addition to continued improvements onconservation measures and eco-smart design, we
initiated projects in logistics that have createdsignificant reductions in our transportation footprint.
In May 2010, we also launched the Supplier
Environmental Sustainability Scorecard and ratingprocess to measure and improve the environmental
performance of our key suppliers.
Contents
Manufacturing Re-imagined
Optimizing Our Logistics
Collaborating with Suppliers
Resource and Waste SummaryProduct Supply Overall Approach
EnergyGreenhouse Gas and Climate ChangeWaste
Water
Air EmissionsCompliance Information
Business Continuity

31
31
32
34
35
35
36
37
38
39
39
39

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Contents•

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P&G Profile•

Products• Operations •Social Responsibility•

Employees •Stakeholders•

New Vision & Goals

Manufacturing Re-imagined.

Optimizing Our Logistics

Creating the Future of
Manufacturing Today

Finding New Ways to Move
Materials and Products

Developed in partnership with several
world-renowned architectural and construction
firms, P&G’s 77-Point Plan for eco-smart designand operations 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 undertakingsin 2010, the Milenio grooming facility inGuanajuato, 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 treated by a state-of-the-art on-site water
treatment plant prior to reuse. Other sustainable features include natural daylighting andenergy-efficient systems and equipment suchas water-cooled chillers, solar tracking skylights,
variable frequency pump drives, low energy
fluorescent light fixtures, and premium
efficiency motors on major equipment.

Sustainability measuresin place at the Milenio facility

100%

of facility wastewater is treated on-site100%of rooftop rainwater is collected and reused.

We have optimized our efficiency in thelogistics stage of the supply chain by making
changes to the rate, route, mode and methodof transportation. We have also focused on
eliminating inefficiencies such as loading andunloading 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 tomore seamlessly manage the movement of ourraw and pack materials, as well as finishedproduct, through the supply chain. Moreefficient transportation means an improved
environmental profile. The lead logistics
provider centrally controls and optimizes the
product flows, delivering maximum truck fill forevery kilometer travelled in the fastest possible
time, in an ecologically friendly 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 inboundoperations in Egypt, and a 68% improvementin our finished product inbound operation in
Turkey. This meant fewer kilometers andreduced CO2 emissions. A greater focus on usingrail transport vs. trucks saved on energy costs
and reduced CO2 emissions by 67,000 metrictons. We are currently expanding our Control
Tower program to our East Africa, Saudi,
Eastern Europe, and South Africa operations.

•

31 of 82

GRI Index

Traditional network
Customer visibility
Warehouse
Customs broker

Freight
forwarders

Carriers

Transload

Factory

CONtrol tower network
Customer visibility
Warehouse

Customs broker
Lead
Logistics
ProviderFreight
forwarders

Transload

Carriers

Factory

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New Vision & Goals•

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Collaborating with Suppliers
Implementing a New Supplier
Scorecard
P&G’s Supplier Environmental Sustainability
Scorecard will assess P&G suppliers’ environmental footprint and encourage continued
improvement by measuring energy use, wateruse, waste disposal and greenhouse gas
emissions on a year-to-year basis. The newscorecard is a result of 18 months of work andclose collaboration with P&G’s Supplier
Sustainability Board, which includes more than
20 leading supplier representatives from ourglobal supply chain. The scorecard relies on
accepted worldwide measurement standards
and sound science, including protocols from theWorld Resources Institute, the World BusinessCouncil for Sustainable Development and theCarbon 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 andcapabilities to deliver more sustainable products
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 the current
stage of its sustainability program. To date, it
has been rolled out to P&G’s key suppliers. We
will determine further expansion once we haveevaluated findings from the first phase of

deployment. Suppliers will have a full year
to report their data before the rating canadversely impact their standing with P&G.
In the future, P&G will use the scorecard todetermine each supplier’s sustainability ratingas part of P&G’s annual supplier performancemeasurement 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 promotea working discussion and determine common
supply chain evaluation processes across allindustries.

supplierscorecard
Energywater
waste
GHG EMISSIONSINNOVATIONINNOVATION
GHG EMISSIONS
WASTE

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

scorecard
supplier

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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
and alternative 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-based energy sources.
Solar: We use solar energy at facilities inGermany, 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 cogeneration plants that produce electricity andheat efficiently, maximizing our use of existingenergy resources. Multiple co-generation plants
are located in the U.S., Mexico, and Italy, withan additional plant under construction in Italy.

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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

HOUSEHOLDCARETECHNICAL DISTRIBUTION
CENTERSCENTERS

24,21322,93623,187

2,667

1,770

19,777

0

0

784

1,080

697 7

86

57

640

0

0

Generated Waste

1,048

911

935

151

121

740

11

25

Percent Recycled / Reused Waste

63%

63%

59%

60%

73%

62%

42%

76%

Solid Waste — Non-Hazardous

287

270

311

50

26

207

5

4

Solid Waste — Hazardous

45

27

30

3

5

34

1

2

Effluents (excluding water)

34

24

23

6

1

27

1

0

Air Emissions

15

19

16

1

1

13

0

0

71,84270,64675,901

6,254

5,872

56,984

2,238

494

2,795

2,625

2,782

173

161

2,388

59

14

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

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

(2)

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

(4)

(3)

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, and Family 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.

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Product Supply
Overall Approach•

Employees •Stakeholders•

New Vision & Goals•

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EnergyEnergy Consumption

We have a strong history of reducing
the environmental footprints of ouroperations. Our production-adjusted
footprints, including Energy Usage,
Direct CO2 Emissions, Waste Disposed,
and Water Usage, have been dramaticallyreduced during the last eight years.
During 2009, we continued to haveoutstanding production-adjusted
reductions that have positioned us tomeet a 50% reduction for the decade
spanning 2002 – 2012. Importantly,
these sustainability reductions are alsodelivering significant cost savings.

To deliver these outstanding results, ouroperating site personnel along with staff
resources from the GBUs, MDOs, Corporate
Engineering, GBS-Purchases, and Finance havecombined forces working against a common
Product Supply Sustainability approach. This
comprehensive approach will allow us to more
systematically reapply the successful current
operations strategies used over the past eight
years. It not only addresses efforts to deliver
our current operations goal, but it looks at
strategies to:

The Energy Consumption graph (in gigajoules,
GJ) shows the addition of Technical Centers
and Gilette for all three years. Distribution
Centers have been added over the last two
years. Energy consumption over the last three
years has been 75.9 million GJ, 70.6 million GJ,
and 71.9 million GJ in 2008, 2009, and 2010,
respectively.

• E xpand our efforts to include the entire
supply chain via partnerships with MDOs andsuppliers.

2009

70.6

2010

71.9
and Grooming• Continue efforts on our future operations
beyond 2012 via partnerships with R&D todeliver breakthrough sustainable innovation.
3-year Results (2007 – 2010)

75.9

2008

As part of our ongoing efforts to minimize
losses, the Company does a loss analysis at theplant level. Losses are defined as anything notshipped out the door as product, including
energy used. When energy is identified as amajor loss at a plant, it receives intense focus
for loss reduction.
Operations has made excellent progress
toward delivering the 20% energy footprint
reduction goal. Across businesses, teams
have embraced the targets and integrated
sustainability into their daily work.
A key element to delivering the goal is
our energy conservation efforts. The threestrategies are:
1. Eliminating losses and encouraging
sustainability behavior and culture
2. E xecuting specific footprint reduction
projects

Since July 2002

Production-Adjusted

Absolute

Production-Adjusted

Target

-12%

n/a

n/a

Energy Usage

-14%

-8%

-50%

Direct CO2 Emissions

-11%

-5%

-53%

Waste Disposal

-50%

-52%

-55%

Water Usage

-16%

-15%

-55%

2008
2009
2010

46%

3. Ensuring that new initiatives and capacity
projects are developed in a smart,sustainable way

48%
50%

To learn more about our efforts onenergy conservation, please see page 65of this report.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products• Operations •Social Responsibility•

Employees •Stakeholders•

New Vision & Goals

Greenhouse Gas

Climate Change Policy

Every company in every sector of the economy
has a role in controlling greenhouse gas
emissions. While P&G is not an energyintensive company, we are stepping up to do ourpart. P&G is committed to energy-efficient
programs and we participate in voluntary
programs. Our focus has been on direct CO2
emissions (i.e., Scope 1) and emissions data forthe last three years has been 2.8 million metrictons, 2.6 million metric tons, and 2.8 million
metric tons in 2008, 2009, and 2010,
respectively. Since 2002, we have reduced
direct CO 2 emissions by 53% on a production
adjusted basis.

P&G recognizes the scientific consensus
linking greenhouse gas emissions and climatechange. P&G is not an energy-intensive
company, but as a global citizen we areconcerned about the negative consequencesof climate change and believe that prudent andcost-effective action by governments, industry,
and consumers to reduce emissions to theatmosphere are necessary.

We continue to monitor and report our indirect
CO2 emissions (i.e., Scope 2), which decreasedslightly in 2010.

2008

2,782

2009

2,625

2010

2,795
and Grooming

We will focus our efforts in two main areas:• Reducing the intensity of greenhouse gas
emissions (GHG) from our own operations
through:
2008

52%

2009

52%

2010

53%

* CO2 from fuel combustion sources•

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36 of 82

• Helping consumers to reduce their own GHG
emissions through the use of our productsvia:– Product and packaging innovations thatenable more efficient consumer product use
and energy consumption– Consumer education
We will continue to publicly disclose ourgreenhouse gas and energy usage data
through the Company Sustainability Report
and the Carbon Disclosure Project.

– Continued energy efficiency measuresthroughout our facilities– Continuing to transition fuel sources
towards cleaner alternatives– Continuing to drive more energy-efficientmodes of transporting finished products toour customers

3,603

2008
2009

3,199

2010

3,109

– Setting goals to drive continued improvement in our GHG emissionsand Grooming

2008

31%

2009

42%

2010

42%

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Contents•

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P&G Profile•

Products• Operations •Social Responsibility•

Employees •Stakeholders•

New Vision & Goals

Waste Disposed

Waste Recycled

Total Waste for Disposal

Waste Returned to Process or Market

Hazardous Solid Waste Disposed

Total waste for disposal is our key management
measure to keep waste under control. Total
waste disposed comprises the sum of nonhazardous and hazardous solid waste, plus thestrength of effluent measured as Chemical
Oxygen Demand (COD) and air emissions. It
excludes recycling or reused waste. It also
excludes CO2 emissions. This measurement has
been in effect since 1990.

The total percentage of waste recycled wasflat at 63% versus last year.

Hazardous wastes are defined by regional
policies and local rules, so they vary from region
to region. To further reduce our risks, thenumber of approved hazardous waste disposalsites that all U.S. plants use has remained
limited. Similar programs have been started inmany regions of the world. We remain focusedon trying to minimize hazardous waste disposal.

The past three years, results have beenencouraging on a production-related basis.
Total waste disposed for the last three years has
been 380 thousand metric tons, 340 thousand
metric tons, and 381 thousand metric tons in
2008, 2009, and 2010, respectively.

59%

2008
2009

63%

2010

63%

2009

380

2010

2008
2009
2010

340

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Non-Hazardous Solid Waste Disposed
Overall, the non-hazardous solid waste
disposed increased from last year to 287
thousand metric tons.

2009
2010

30

2008
2009
2010

27
45

311

2008
2008

•

270
287

381

50%
53%
55%

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Contents•

Introduction•

P&G Profile•

Products• Operations •Social Responsibility•

Employees •Stakeholders•

New Vision & Goals

Water

Effluents to Water

Water Policy

Water Consumption

Wastewater COD (Chemical Oxygen Demand)
Disposed has increased over the past three
years. This primarily reflects integrationof acquisition sites.

P&G has had a long-standing commitment to
the responsible use of water. This has been
evidenced by our Children’s Safe Drinking Water
program, our operational improvements, andidentifying water as one of the focus areas forour sustainable innovation products. Over thecourse of the last year we have worked withexternal stakeholders, including Northstar AssetManagement and the Unitarian Universalist
Service Committee, to review and update ourwater policy. Our water policy now states:

The Household Care business unit is our largest
water user. Within Household Care, our Family
Care operations have the greatest need forwater.

0

87

2008

2008

23

2009

24

2010

2009

79

2010

81
and Grooming

2008

51%

2009

52%

2010

55%

34

At P&G, water is of crucial importance for boththe production and use of our products. Thus
our approach to water aims at responsible use
by both our Company and the consumers who
use our products. The Company respects the2010 United Nations General Assembly
resolution which recognizes the right to safe
and clean drinking water and sanitation as ahuman right that is essential for the fullenjoyment of life and all human rights. In all
countries in which we operate, we will help
ensure the sustainable use of water by abiding
by the policy as outlined below:
1. Quality—The Company will continually
improve our operations to preserve thequality of water in the communities in which
we operate. The Company is also committed
to a long-term, not-for-profit social andemergency relief effort to provide safe
drinking water in the developing world aimed
at reducing illness and death, particularly inchildren.

•

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product innovation using a life cycle
approach, and siting decisions using awatershed approach.
3. Affordability—The Company understands thatwater use may affect affordability. Thus weare committed to water efficiency andsustainable use of water by our operations.
We will also seek innovative ways to reducewater use by our consumers as well educate
them about the opportunity to save water.
This will positively impact the cost of water tothe Company, our consumers and thecommunities in which we operate
4. Information—The Company will makeavailable relevant and appropriate factual
information about our water use. The
Company is also committed to raising theawareness of water-related issues with ourconsumers, stakeholders, and business
partners with the aim of sustainable water use.
We support external efforts to better
understand key water-related issues withexternal partners, NGOs, associations, andcommunities as well support stewardshipinitiatives, standardization, and measurements/reporting tools.
5. Legal Compliance—The Company will meet or
exceed all applicable legislative and regulatory
requirements with respect to water quality andconsumption.

2. Availibility—The Company is committed tosustainable water management by both ouroperations and consumer use of our
products. This commitment includes water
reductions goals, use of new technologies,
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P&G Profile

Air Emissions
Each site monitors total suspended particulates,
volatile organic compounds (VOCs), carbon
monoxide (CO), nitrogen oxides (NOx ) and sulfur
oxides (SO x ). Overall, the total air emissions
decreased from last year to 15 thousand
metric tons.

2008

16
19

2009
2010

15

•

Products• Operations •Social Responsibility

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

•

Stakeholders

Employees •New Vision & Goals•

The table lists global data on environmental,transportation, and worker health and safety
violations over the past three years.

Fines

2010

2009

2008

46

34

82

$112,340$15,285$305,328

The following is a more detailed breakdown ofglobal Notices of Violation (NOVs) for fiscal year
2010 and includes U.S. Occupational Safety and
Health Administration (OSHA) interventions.
NumberFines

Water-Based8$ 24,670

Air-Based4$ 6,320(United States only)

Solid Waste-Based2$ 27,200

U.S. P&G plants report annually on the releaseof toxic chemicals to the air, water, and land.
These releases are defined in the U.S. Superfund
Amendments and Reauthorization Act (SARA)
by the U.S. Environmental Protection Agency.
The purpose of this documentation (referred toas section 313) is to report publicly the releases
and transfers of hazardous chemicals as definedby the agency.

Paperwork0$Transportation-Based21$ 38,950

Other

1

$

Worker Safety10$ 15,200

Total

46

$112,340

SARA 313 Releases

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Business Continuity

Notice of Violations (NOVs)

Number•0

P&G’s Global Business Continuity Program
ensures that all critical sites and work processes
evaluate their risk mitigation programs,
exposure to catastrophic events at P&G sites andsites of our key suppliers and service providers
that could significantly interrupt business
operations, and the business impact
of such events. Site and business unit leadersthen develop contingency plans to minimize
business interruption if a disabling event should
occur. Crisis Manage­ment team structures
are defined to manage business recovery using
the predefined contingency plans. Tests are
conducted annually to ensure that thecontingency plans are sufficient andup-to-date.
Business Continuity Plans are audited regularly,
and a report of the Business Continuity
Program’s status is made each January to the
Audit Committee.

0

The amount of SARA 313 releases decreasedslightly versus last year.

2008
2009
2010

1,902
1,919
1,830

SARA is reported one year behind; 2010 entry reflects
2009 data.

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Products•

Operations• Social Responsibility •Employees •Stakeholders•

New Vision & Goals•

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Strategy 3

SocialResponsibility
Initiating the First Moment of Touch
Social responsibility is a natural expression of our
Purpose to touch and improve lives. We see it as aninvestment in the future that helps both children andcommunities thrive, now and for generations to come.
In addition to helping improve lives in the communities
where we operate, we are reaching out to people andcommunities across Asia, Latin America and Africa
where we do not have operations or sell P&G brands.
These remote parts of the world with profound social
needs have often become opportunities for us toextend our "first moment of touch" through our social
investments.
Here are just a handful of the investments P&G ismaking to touch and improve lives through our social
responsibility commitments.

Contents
Touching Lives in Times of Crisis
Living Our Commitment Every Day
Live, Learn and Thrive LocationsChildren’s Safe Drinking Water

41
42
45
46

JANE, A 13-YEAR-OLD STUDENT WHO PARTICIPATED IN
OUR ALWAYS PUBERTY EDUCATION PROGRAM IN KENYA.
CONDUCTED IN PARTNERSHIP WITH 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
HYGIENE AND SANITARY PROTECTION.

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New Vision & Goals•

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

Haiti Earthquake, January 2010

Chile Earthquake, February 2010

P&G immediately started working with many
disaster relief partners to move 6 million PUR
packets into Haiti. Dr. Greg Allgood, Director of
our P&G Children’s Safe Drinking Water program,traveled to Haiti to help teach field personnel
how to use and deploy PUR. P&G employees andretirees around the world gave generous cash
contributions, which were matched by the P&G
Fund. Since many of our brands help make every
day better for people, we also donated productfrom brands like Pampers, Duracell, Always,
Crest, Oral B and Pantene. These products camefrom North America, Latin America, andWestern Europe with shipments coordinatedbetween P&G hubs and our humanitarian
partners by our Disaster Response Team.

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 toget back into the rhythm of everyday life.

RIGHT: A Haitian volunteer with ADRA helps unpack
P&G product donations.

In addition, P&G employees participated in many
volunteer activities, including a trip made by 56
employees to Villa Prat, a town located threehours from Santiago. While there, some of ouremployees distributed building materials, whileothers played football, danced and painted withthe local children to give them and their parents a
break from the stress of living in temporary
housing.
RIGHT: The earthquake left Lissette, age 5, and herfamily without safe drinking water.

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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 theirchildren to get a high quality education tobetter their future. Through P&G Hope Schools,
we are dedicated to making this a reality.
Partnering with China Youth Development
Foundation, P&G has pledged to complete 200
Hope Schools. More than 100,000 children inover 1,000 villages already benefit from theprogram.

• 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 in a 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.

In 2010, P&G completed three new initiatives
to further enhance and elevate P&G Hope
Schools to better meet the needs of thechildren we serve:www.pg.com/sustainability

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P&G Profile

Pampers and UNICEF
Since 2006, Pampers has partnered with
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 ofchildbearing 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 in the hardest to reach areasof the world’s poorest countries and do nothave access to quality healthcare.
Since 2006, Pampers has been committed tohelp UNICEF eliminate maternal & neonatal
tetanus. To date, The Pampers-UNICEF “1 Pack
= 1 Vaccine” campaign is helping to protect 100
million women and their babies from MNT in 21
countries across two continents. Of thesecountries, 14 are expected to complete their
MNT vaccination programs in 2010. The
Pampers-UNICEF campaign continues to help
protect women and their babies from thisdeadly but preventable disease.
*Based on CHERG/ WHO estimates for annual MNT deaths, 2008, as
published in Lancet on 12.05.10.

•

Products•

Operations• Social Responsibility •Employees •Stakeholders•

New Vision & Goals•

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Helping Children See a Whole
New World
There is a tremendous need for eye care—particularly among children—throughout thedeveloping world. Eyeglasses and eye care are
not only costly but, more often than not, aresimply unobtainable. So P&G partnered withvision 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 firstvision clinic. Hundreds of students andcommunity members underwent comprehensive vision screenings and, when needed, were
outfitted with free eyeglasses. Many are seeing
their friends and family clearly for thevery first time. P&G intends to continue its
partnership with organizations like Luxottica tobring additional services to children andcommunity members in our Hope School
Villages.

“After I got home from a trip to China
and was greeted at the door by mydaughter 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 theschool and the surrounding community,
so I reached out to Luxottica to invite themto 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.

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Contents•

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P&G Profile•

Products•

Operations• Social Responsibility •Safeguarding Children’s HealthThrough Hand Washing
Sometimes, the simplest things can have a
profound impact on quality of life. Each year,
3.5 million children under the age of five diefrom diarrheal disease and upper respiratory
infections.
Health experts around the world agree that thesimple act of hand washing with soap can help
save millions of lives.
P&G is bringing hand washing education tomillions of children and helping build handwashing facilities in schools. P&G’s Safeguard
bar soap is sold in countries where some ofthese issues are most profound, and it’s helping
to make a positive impact.

Employees •Stakeholders•

New Vision & Goals•

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44 of 82

Here are some examples of what Safeguard isdoing around the globe:• Philippines: Safeguard educated one million
children on the importance of hand washing,
and will be reaching another million this year.
• Pakistan: more than six million children havereceived hand washing education in the last six
years, with a goal of reaching 15 million
by 2015.
• China: Safeguard is helping to build a “Great
Wall of Health” through hand washingeducation and hygiene infrastructure in schools.
We are on our way to educating 100 million
children by 2015.
• Safeguard helped create “Global Hand Washing
Day,” a worldwide program with hand washingeducation activities in more than 80 countries,
in 2009.

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45 of 82

GRI Index

Live, Learn and Thrive Locations
P&G is commited to improving life forchildren in need around the world.

North America• Canada• Puerto Rico
• United States

Latin America• Argentina• Brazil• Chile• Colombia• Costa Rica
• Dominican Republic• El Salvador• Guatemala• Haiti• Honduras• Mexico• Panama• Peru• Venezuela

Western Europe• Belgium• France• Germany• Ireland• Italy• Netherlands• Portugal• Spain• Sweden• Switzerland• United Kingdom

Central & Eastern Europe,
Middle East & Africa• Azerbaijan• Bulgaria• Côte d’Ivoire• Czech Republic• Democratic Republicof the Congo• Egypt• Estonia• Ethiopia• Hungary• Israel• Kazakhstan• Kenya• Latvia• Lebanon

Asia• Australia• Malawi• Morocco• Nigeria• Pakistan• Poland• Romania• Russia• Saudi Arabia• Slovakia• South Africa• Tanzania• Turkey• Uganda• Ukraine• Uzbekistan• China• Hong Kong
• India• Indonesia• Japan• Korea• Malaysia• New Zealand• Philippines• Singapore• Thailand• Vietnam

75

millionThis year alone, P&G benefitted
more than 75 million children—thatʼs equivalent to 2 children
every second of every day.

•Live, Learn andThrive locations

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Clean Water: Saving Lives andRaising Awareness
The P&G Children’s Safe Drinking Water
program provides clean water to people insome of the most impoverished places in theworld. Through our global network ofpartners, and leveraging the PUR Purifier of
Water technology, CSDW has provided 2.2
billion liters of safe drinking water since theprogram began in 2004 (of this total, 1.5 billion
liters are included in our results reported
against our 2007–2012 goal).

•

Products•

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New Vision & Goals•

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2.2billion

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

This year was especially rewarding, as wehelped bring greater attention to this life-anddeath issue. In January 2010, we exceeded ourgoal to heighten awareness of the global cleanwater 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 todonate more than 50 million liters of cleanwater.

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.

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New Vision & Goals•

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SocialResponsibility
for generations
to come2 billion litersof clean drinking water will be
provided each year by the year 2020*

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
water each 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 can accomplish thisthrough 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 Lifeand Pantene’s Healthy Hair for Healthy Water
will continue to drive the needed awareness of
the world clean water crisis. A new plant underconstruction in Singapore, set for completionin 2012, will have the capacity to produce the
PUR Packets needed to fulfill this new annual
commitment. Plans are in place to scale up ournumber of partners in more countries to help
us reach more people who need clean water insome of the most remote parts of the world.
Details on how “saving a life” totals are calculated areprovided on page 49 of this report.

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48 of 82Children’s Safe Drinking
Water Emergency Relief andSocial Market Countries
Americas

Africa (continued)• Chile• Colombia• Dominican Republic• Guatemala• Guyana• Haiti• Honduras• Nicaragua• Panama• Peru• Venezuela• Namibia• Nigeria• Republic of the Congo• Senegal• Sierra Leone• Somalia• South Africa• Sudan• Tanzania• Uganda• Zimbabwe

AfricaAsia/Europe• Angola• Botswana• Burkina Faso
• Cameroon• Chad• Côte d’Ivoire• Democratic Republicof the Congo• Djibouti• Ethiopia• Ghana• Guinea Bissau• Kenya• Liberia• Malawi• Morocco• Mozambique• Afghanistan• Bangladesh• Cambodia• China• East Timor• India• Indonesia• Iran• Iraq• Laos• Maldives• Myanmar• Nepal• Pakistan• Papua New Guinea• Philippines• Romania• Sri Lanka• Vietnam• Relief and Social

Market Countries

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49 of 82Children’s Safe
Drinking Water Program
Methodology
Working with Population Services
International and Aquaya Institute, wehave developed the following methodology
to estimate the days of disease and lives
saved as a direct result of PUR usage.
The number of PUR sachets that are provided
are tracked on a monthly basis by country.
From this, we calculate the liters of safe
drinking water provided and estimate theimpact on reduction in days of diarrhea andestimated lives saved. The illness and fatality
rates by region are derived from the World
Health Organization Global Burden of Disease
2002 estimates. Sub-Saharan estimates areused for product provided for emergency relief
efforts since diarrhea rates are typically highduring these situations.
The reduction in diarrheal illness from the useof the PUR sachets is based on the average
reduction measured in five randomized,
controlled health intervention studies involving
more than 25,000 subjects. These independently conducted studies are published in thepeer-reviewed literature.

Health Intervention Trials

Diarrhea

The U.S. Centers for Disease Control and Johns
Hopkins University have conducted five clinical
trials of PUR and proven that it significantly
reduces diarrheal illness in children and thetotal population.

• 60% of PUR is consumed by children.
• The number of episodes of diarrhea
per child per year is– 5 episodes in sub-Saharan Africa– 2.2 episodes in Latin America• 40% of PUR is used by adults.

Diarrhea
Reduction• The number of episodes of diarrhea
per adult per year is

Location/Setting

Study Design

Rural
Guatemala2,982 people
52 weeks

24 – 29%

Rural
Guatemala3,401 people
13 weeks

40 – 72%

Rural Kenya —turbid water

6,615 people
20 weeks

17 – 42%• A diarrhea episode lasts an averageof 7.3 days.

Pakistan —urban setting

12,090 people
39 weeks

59 – 64%

Lives Saved

Liberia —refugee camp

2,191 people
12 weeks

87 – 95%• The fatality rate per case of childhood
diarrhea is– 0.98 episodes in sub-Saharan Africa– 0.21 episodes in Latin America• PUR use averts 50% of the diarrhea episodes.

– 0.001 in sub-Saharan Africa

To learn more about the P&G
Children’s Safe Drinking Water program,please visit www.csdw.org.

– 0.0002 in Latin America

Assumptions
General• The fatality rate per case of adult
diarrhea is• Each PUR sachet treats 10 liters of water.

– 0.0004 for sub-Saharan Africa• An average of 1.5 liters of drinking water
is used per child per day and 2 liters ofdrinking water per adult per day.

– 0.00005 in Latin America

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Strategy 4

Employee
Engagement

P&G home care Employee Pat Sollwaters the raised-bed vegetable garden
at Fabric and Home Care Innovation
Center in Cincinnati, OHio.

Empowering Employees to Lead the Way
P&G employees are critical enablers of theCompany’s sustainability efforts. We have programsaround the world designed to embed a sustainability
mindset into everyday work, and we foster andencourage passionate employees to create “Green
Teams” and integrate sustainability into their workand their workplace.

Contents
Passionate Employees
Creating Partnerships with PurposeGlobal Sustainability Board
Our Purpose, Values and Principles
Human Resources
Diversity & Inclusion
Global Medical
Worldwide Health, Safety and Environment
Systems
HIV/AIDS

51
52
53
54
56
56
58
59
61

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Passionate Employees
A Global Celebration ofEarth DayOn Earth Day every year, employees acrossthe world participate in sustainability
activities. The 2010 theme was “Put GreenTo 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 “putgreen to work” in the upcoming year.

Teams with a Green Spirit
An important component of integrating
sustainability into our businesses is to fosterand encourage the work of passionate
employees. Many of our sustainability
teams, or “Green Teams,” across the globe
were started by employees who want tomake changes in their workplace. Russ
Speiller, for example, is one of many
employees who initiated a sustainability
project around holistic sustainable thinking,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 teaches collEAgues
about sustainable product innovation.

Russ Speiller, Senior Engineer,
Household Care New Business Creationwww.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility• Employee •Stakeholders•

New Vision & Goals•

GRI Index

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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 been working 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
the banner pages, and use smart color.

11million

fewer pages printed using Managed
Print Services in fiscal 2010

Making Facilities More Efficientwith Jones Lang LaSalle
Jones Lang LaSalle, P&G’s property
management partner at offices and technical centers, has teams at each location
responsible for energy, 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 partof any future space assessment to ensure
new locations meet strict environmental
standards.

PROGRESS IN NUMBERS*

8%

reduction inenergy use

28%

reduction in water use*Results are versus fiscal 2007.

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.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility• Employee •Stakeholders•

New Vision & Goals•

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Employeeengagement
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 aswell as serving as role models and sources ofinspiration for our employees. Len Sauers will run
the board and be accountable to Mr. McDonald.

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

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

While we have worked hard to engage
employees in our sustainability efforts,
we also recognize and take very
seriously the broader responsibilities wehave to our employees — and that starts
with our Purpose, Values and Principles.

Products•

Operations•

Social Responsibility• Employee •Stakeholders•

New Vision & Goals

Our Purpose

Our Values

We will provide branded products andservices of superior quality and valuethat improve the lives of the world’s
consumers, now and for generations
to come.

P&G is its people and the values by which
we live. We attract and recruit the finest
people in the world. We build ourorganization from within, promoting andrewarding people without regard to any
difference unrelated to performance. We
act on the conviction that the men andwomen of Procter & Gamble will always
be our most important asset.

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

Integrity• We always try to do the right thing.
• We are honest and straightforward with eachother.
• We operate within the letter and spirit of thelaw.

Consumers• We uphold the values and principles of P&G
in every action and decision.
• We are data-based and intellectually honestin advocating proposals, including recognizing risks.

P&G Values
Integrity
Leadership
Ownership
Passion for Winning
Trust
P&G
BrandsLeadership• We are all leaders in our area of responsibility,with a deep commitment to deliver leadershipresults.
P&G
People•GRI Index

54 of 82

Ownership• We accept personal accountability to meet
the business needs, improve our systems, andhelp others improve their effectiveness.
• We all act like owners, treating the Company’s
assets as our own and behaving with theCompany’s long-term success in mind.

Passion for Winning• We are determined to be the best at doing
what matters most.
• We have a healthy dissatisfaction with thestatus quo.
• We have a compelling desire to improve andto win in the marketplace.

Trust• We respect our P&G colleagues, customers,
and consumers, and treat them as we want tobe treated.
• We have confidence in each other’s capabilities and intentions.
• We believe that people work best when there
is a foundation of trust.

• We have a clear vision of where we are going.
• We focus our resources to achieve leadershipobjectives and strategies.

P&G Brands and P&G People
are the foundation of P&G’s
success. P&G People bring thevalues to life as we focus on
improving the lives of theworld’s consumers.

• We develop the capability to deliver our
strategies and eliminate organizational
barriers.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•• Employee •Social Responsibility

Stakeholders•

New Vision & Goals

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

Innovation Is The Cornerstone of
Our Success

We Show Respect for All Individuals• We challenge convention and reinvent the way
we do business to better win in themarketplace.

• We believe that all individuals can andwant to contribute to their fullest potential.
• We value differences.
• We inspire and enable people toachieve high expectations, standards
and challenging goals.
• We are honest with people about theirperformance.

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

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

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

“We incorporate
Sustainability into our
products, packaging,and operations.”

We Are Externally Focused

We Seek to Be The Best• We develop superior understanding of
consumers and their needs.

• We strive to be the best in all areas ofstrategic importance to the Company.

• We create and deliver products, packaging
and concepts that build winning brandequities.

• We benchmark our performance rigorously
versus the very best internally and externally.

• We develop close, mutually productive
relationships with our customers and our
suppliers.
• We are good corporate citizens.
• We incorporate sustainability into our
products, packaging and operations.

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

• We learn from both our successes and our
failures.

Mutual Interdependency Is a Way of Life
• We work together with confidence and trust
across business units, functions, categories
and geographies.
• We take pride in results from reapplying
others’ ideas.
• We build superior relationships with all theparties who contribute to fulfilling our
Corporate Purpose, including our customers,
suppliers, universities and governments.
To learn more about our PVP please go to:www.pg.com/en_US/company/purpose_people/index.shtml
•

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The Global Sullivan Principles
P&G was one of the founding membersof the Global Sullivan Principles. In
accordance with the Global Sullivan
Principles, we support economic
growth, social justice, human rights,
political justice, and equal opportunity
wherever we do business in the world.
The products we deliver, the consumers
we serve and how we serve them are inline with these expectations. We havealso reviewed and revised our policies tomake sure we are aligned with the
Global Sullivan Principles. We consider
ourselves a global company and a global
citizen.
We ensure our commitment to ouremployees through our human resources
system and profit-sharing program.
Our human resources system trains,
educates, and develops our people.
It offers flexible work arrangements,
giving employees the opportunity tomeet both business and personalneeds. It is ingrained in our culture
and policies to ensure that everyone istreated fairly and has the opportunity tocontribute to our vision and mission. The
profit-sharing program provides
employees with a stake in the
Company’s future.
Programs such as these enable us tobe a sustainable business and a viable
part of the communities in which we
do business.
To learn more about the Global
Sullivan Principles, please go to
www.thesullivanfoundation.org/gsp/.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility

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

Employee Privacy
P&G respects employee privacy and dignity.
We will only collect and retain personal
information from employees that is required
for the effective operation of the Company
or as required by law. We will keep that
information confidential and release it only
to those who have a legitimate need to know.

• Employee •Stakeholders•

New Vision & Goals•

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Diversity & Inclusion
Harassment Policy
P&G is committed to providing a harassment-freework environment. This is the right thing
to do not only from a social perspective,
but also from a business perspective. It
enables our diverse work force to contribute totheir highest potential. We will not tolerateharassment of anyone by anyone — including
employees, suppliers, customers, contractors,
and agencies. Every employee is expected
to be proactive in ensuring that the work
environment is free from harassment of any
kind. Managers of others are responsible forsetting clear expectations for acceptablebehavior in the workplace.

Wages
P&G supports paying employees a competitive
wage, as benchmarked against other leading
companies. Consistent with our principle ofvaluing personal mastery, we reward employees for improving their skills and capabilities.

Benefits
P&G is a recognized leader in employee
benefits. The Company’s benefits have beendeveloped to help protect the financial
security of employees. These benefits include
comprehensive coverage for health care,generous vacation and holiday time, andother work/family balance benefits, including
flextime, child care leave, and less-thanfull-time schedules.

Diversity & Inclusion is deeply rooted
in our Company’s Purpose, Values andPrinciples. It is who we are, and aspire
to be, as a Company.
When P&Gers come together we create a richtapestry. Each of us is truly unique. Beyond thevisible differences, we come from diverse
traditions, with a wide array of personal
experiences and points of view.
Diversity at P&G brings together individuals
from different backgrounds, cultures, working
and thinking styles, providing remarkably
different talents, perspectives and life andcareer experiences. We are respectful of all
employees irrespective of race, gender, color,religion, national origin, age, sexual orientation,
gender identity and expression, disability, or
any other non-job related personal
characteristic.
Inclusion at P&G inspires a culture where weleverage and celebrate the diversity that makes
each of us unique—skills, passions, points ofview, and experiences.
P&G’s Diversity & Inclusion is one of ourgreatest strengths and we are committed toensure it remains part of our Company’s DNA.
To do this we have established a Diversity &Inclusion Vision and Mission that is simple,
inspirational and aspirational:
Vision: Be, and to be recognized as the Global
Leader in Diversity & Inclusion
Mission:Everyone Valued,
Everyone Included,
Everyone Performing at Their Peak ™
Diversity & Inclusion comes to life througheveryday experiences and interactions thatinspire P&Gers to unleash their potential andperform at their peak. This peak performance isdirectly related to our ability to improve thelives of the world’s consumers. P&G is committed to creating a winning culture wherecolleagues and managers of others demonstrate sincere care for each other, extending apersonal touch to each individual and genuinely
getting to know each other.

Diversity & Inclusion Starts with
P&G’s Purpose
P&G brands touch the lives of people aroundthe world. P&G people work to make sure thosebrands live up to P&G’s Purpose to touch andimprove the lives of the world’s consumers,
now and for generations to come.
This requires P&G to be more inclusive andleverage more aspects of diversity to reach andserve diverse consumers and markets, making
Diversity & Inclusion a sustained competitive
advantage for the continued growth of P&G.
• Diversity & Inclusion is a critical enabler for
P&G to be the “Employer of Choice” that
hires, develops, engages and retains the besttalent from around the world, reflecting themarkets and consumers we serve.
• Diversity & Inclusion is implicit in the
Company’s Purpose, Values, and Principles. It
is also explicit in the Company’s businessstrategy for success.
• We are able to connect and develop diverse
knowledge, skills and experiences that drive
new ideas, innovation, products, and services,
improving people’s lives in ways we’ve notyet foreseen.
• Diversity & Inclusion is at the core of being intouch so that we are able to communicate thepurpose and benefits of our brands in waysthat resonate with individual consumers.
www.pg.com/sustainability

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P&G Profile•

Products•

Operations•

Social Responsibility• Employee •Stakeholders•

New Vision & Goals•

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GRI Index

Diversity & Inclusion (continued)
Leadership Focus and Accountability
Bob McDonald, Chief Executive Officer, holds
himself accountable for leading Diversity &Inclusion and monitoring progress in every partof our Company. He expects top leadership toembed Diversity & Inclusion into their businessstrategies, establish clear expectations, anddemonstrate personal accountability.
Top executives conduct in-depth diversity
reviews annually with organization heads acrossthe business units to assess progress andreinforce leadership accountability for corrective
actions. The top officers in the Company havediversity results tied to their stock options
awards, and strong diversity performance
influences top ratings. Diversity & Inclusion
action plans are developed in each region of
the world to reflect the greatest opportunity forthe advancement of local diversity strategies
and promote a culture of respect for every
individual.
The driver of our Diversity & Inclusion focus
areas is Leadership Accountability. At P&G,
everyone is responsible for bringing diversity
and inclusion to life and that responsibility
starts at the very top of our organization to
make P&G a more inclusive place to work andan increasingly diverse organization. This is
critical to our continued success. We can’t fulfill
our Purpose if we fail to inclusively leverage andcontinually strengthen the diversity of ourorganization.
Bob McDonald has established an Inclusion andDiversity Council. He chairs this team of seniorlevel business and organization leaders. The
sole purpose is to provide insights, alignmentand support to P&G’s Diversity & Inclusion
efforts, to measure results against our goals,
and to drive accountability throughout theorganization.
The P&G leadership team is the most experienced and diverse leadership team in the
Company’s history, leading diverse and inspired
P&G people around the world. The majority ofthese executives have experience leadingbusinesses in both developed and developing
countries. P&G leaders at the Vice President
level and above come from 35 different
countries, with more than half of themoriginating from outside the United States.
Bob McDonald expects P&G to be a global
leader in diversity and inclusion. Peak diversity
performance requires goals and strategies thatdemand it, an inclusive culture that values it, atracking system that measures it, and leadershipbehaviors that inspire it. He expects everyone’s
engagement and daily support to ensure thatdiversity and inclusion delivers our intentional
outcome, “Everyone Valued, Everyone Included,
Everyone Performing at Their Peak™” for P&G
in every part of our business and ensures that
we achieve our vision to “Be and be recognized
as the Global Leader in Diversity & Inclusion.”

Talent Support and Development
P&G strives to be the Employer of Choice bybuilding a diverse and fully engaged organization. We attract the best talent from around theglobe, leveraging each individual througheffective assignment and promotion planning
processes, and executing with excellence thecritical systems that affect, as well as support,
retention of each employee.

We focus on establishing long-term relationships with educational institutions that havediverse populations of highly qualified students.
To broaden our candidate base worldwide, we
utilize Taleo, our fully global, Web-based
candidate management system. We supplement our base recruiting efforts by utilizing
intern programs, participating in recruiting
conferences, and conducting outreach to highschool students. We execute special programs
such as our Careers in Business Initiative (CIBI)
and P&G Marketing, R&D, IDS and Finance
Summer/Winter Camps to introduce students to
P&G’s success competencies. Additional teams
help with efforts to recruit women around theglobe and minority, military and disabled
candidates, among others, in the United States.
Our foundation systems for ensuring employee
retention include effective first-year on-boarding/join-up programs, providing a good matchwith the first manager, developing coaching/mentoring/advocacy relationships, high-quality
challenging work/career plans, training (virtual,classroom and external), and supportive work/
life policies and practices. Employee support
groups and network teams exist throughout theorganization and contribute strongly toeffective recruiting, join-up and development
efforts. P&G has three global Corporate Affinity
Groups­—for women, People with Disabilities
and Gay/Bisexual/Lesbian—and four U.S.
Affinity Groups—African-American, Asian/Pacific-American, Hispanic, and Native
American.

Diversity Metrics
P&G continues to focus on diversity as a global
strategy and expects its work force to become
increasingly diverse, enabling us to serve moreof the world’s consumers. Global data onenrollment by gender is shown in the following
table:GLOBAL ENROLLMENT

2010

2009

2008

Management

41.6

41.2

40.4

All Other Employees(1)

38.5

38.8

38.8

% FEMALE

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

2010

2009

2008

23.1

22.6

21.1

18.8

19.3

19.3

41

40.7

39.6

38.2

38.8

38.0

% MINORITIESManagement
All Other Employees(1)% FEMALE
Management
All Other Employees(1)(1) Administrative, Technical, and Plant Technicianswww.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility• Employee •Stakeholders•

New Vision & Goals

Diversity & Inclusion (continued)

Global Medical

P&G Recognition

We Touch and Improve the Lives of
Our Employees with Focused Delivery of
Our 5 Global Medical Priorities

Since P&G is a principles-driven company, thefollowing Global Medical Priorities drive all of
our health systems worldwide:

The simple four-word Vision of P&G’s Global
Medical organization is “Healthy People,
Healthy Business.” Our Company’s mostimportant asset is our people. P&G works with
employees to protect and enhance their healthand well-being. The Global Medical organization advises and assists management andemployees to assure a safe, healthy work
environment. Global Medical delivers preventive
health services to all employees at all sites. It
manages health issues that may affect ourpeople, technologies, and brands.

1. Save a Life (Protect Our People)

In 2010, P&G’s solid progress in diversity andinclusion was recognized in many global and
U.S. surveys:• FORTUNE’s World’s Most Admired Companies(#6 overall; #1 in our industry)• FORTUNE’s “Blue Ribbon Company” Global
Most Admired Company (2010­— #6 / #1 inIndustry), Top Companies for Leaders(2010—#2), Most Powerful Women—
Melanie Healey (#15)• Diversity Inc. Top Companies for Diversity(2010 #18), Top Global Diversity Companies(2010 #6), Top 10 Companies for People with
Disabilities (2010 #3)• Working Mother–“Working Mother Hall of Fame, 2005”–Top 10 Companies for Executive Women(2010 NAFE)–Best Companies for Multicultural Females(2009—Top 5)• Black Enterprise Best Companies for Top 40
Companies for Diversity (2010 – Top 40)• Human Rights Campaign Rated a “100” on
Corporate Equality Index• ABILITY Magazine 2010 Best Practices Award•GRI Index

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P&G Vibrant Living

2. Obey the Law (Protect Company Reputation)
3. Protect Key Technologies (Protect Brand
Integrity)
4. Enhance Speed to Market (Support Emerging
Technologies and New Business
Development)
5. Inspire Health and Wellness (Vibrant Living,
Travel Medicine Support, Global EAP
Programs)
All medical standards of performance andstandard operating procedures flow directlyfrom specific P&G Principles, Values, compellingbusiness needs, and the Global Medical
Priorities.

In 2009, we announced the new P&G
Vibrant Living initiative with the intent tobring all Health & Wellness programs
together to better serve our employees
and their families. Our vision is tobecome the Healthiest, Most Engaged
People in the World. P&G Vibrant Living
will include focus in three areas:
Culture of Health — through emphasis
on nutrition, fitness, easy access to ourhealth information, and an environmentthat encourages healthy choices andpersonal management of health risks.
Health Education and Training —through programs like Corporate Athlete
and Blueprint for Healthy Livingin the U.S.
Consumer Engaged Health Care —provides greater understanding of local
health care resources and enables
informed individual health choices.
Vibrant Living was rolled out in the U.S.
in 2009, will be expanding globally in2010, and will be a key part of our Global
Medical Priority of Inspiring Health andWellness.

www.pg.com/sustainability

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Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility• Employee •Stakeholders•

New Vision & Goals•

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

Worldwide Health, Safety andEnvironment Organization
Health, Safety & Environment (HS&E) is a global
community of resources responsible for
ensuring that all sites worldwide — including
Technical Centers, Distribution Centers, andacquisitions — are operated safely and legally;that process hazards are minimized or eliminated; that health risks are identified, managed,
or eliminated; and that waste from sites isreduced as much as possible. Several thousand
employees spend all or a portion of their timeon HS&E management. This year, 1,605
full-time equivalents were involved in HS&E
activities. This is up from 1,241 FTEs last year
and reflects the complete integration of recent
acquisitions into P&G systems.
There are three major components to a site’s
HS&E organization: the base component, which
includes Environmental, Technical Safety andIndustrial Hygiene & Safety; Fire Protection
Systems; and Medical Systems. P&G uses aphased, detailed Risk Assessment process toevaluate the safety of processes and initiatives
being introduced at its own manufacturing
operations as well as at contractor manufacturing operations. The Risk Assessment process isdesigned to enable high-speed innovation.
P&G regularly verifies that the HS&E program at
all its manufacturing facilities meets the intent
of the environmental management standard
ISO 14001. In 2006, we extended verification to
the Global Health and Safety Management
standard OSHAS 18001. This verification was
conducted by Environmental Resources
Management (ERM), a highly respectedinternational consulting firm in the field ofenvironment, health, safety, and sustainability.

Industrial Health and Safety
The health and safety of P&G employees areparamount in the principles of the Company:• Nothing we do is worth getting hurt.
• Safety can be managed.
• Every illness and injury could and shouldhave been prevented.
• Safety and health are everyone’s
responsibility.
The Company tracks and reports two metrics
for worker safety: total incident rate (TIR) andtotal lost workday case rate (LWDC). TIR
includes all cases that result in loss of consciousness, lost workdays, restriction of work or
motion, medical transfer to another job, or
medical treatment beyond first aid.
LWDC includes all cases that involve days awayfrom work or days of restricted activity beyond
the day of injury or onset of illness.
The TIR target for sites is to be below 1.5 cases
per year, per 100 employees. To achieve suchrates, programs to address employee safety,
such as safe behaviors, ergonomics, andconfined space entry have been implemented.
No target has been set for LWDC. Instead,incidents that potentially could lead to lost
workdays are managed. The following data isbased on criteria established by P&G for use at
all sites including acquisitions, plants, andtechnical centers. This year’s TIR was higher, at
0.41 versus 0.36 incidents per 100 employees,
while the lost workday rate was also higher at
0.22 versus 0.15 cases per 100 employees. Bothare lower than industry averages.

0.47

2008

0.36

2009

0.41

2010

0.24

2008
2009
2010

0.15
0.22

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility• Employee •Stakeholders•

New Vision & Goals•

GRI Index

60 of 82

Worldwide Health, Safety,
and Environment Systems(continued)
Audit Programs

HS&E Benchmarking

P&G’s HS&E audit programs are designed toensure compliance with national, state, andlocal regulatory requirements as well as
corporate environmental standards andprocedures. Audit findings are reported
promptly to the business management teams,
who must address and correct all issues in atimely manner.

Benchmarking continues to be an important
tool used by P&G to assess and maintain thehealth of its global HS&E program and ensurethat we are applying the best practices andknowledge of our peer companies.
Benchmarking provides important external data
to verify our robust HS&E performance andprovides an opportunity to identify improved
management and technology approaches.

P&G’s audit programs apply to all its plants andtechnical centers worldwide. The fundamental
philosophy is to have the same standards
worldwide, implemented by trained professionals at all plants and technical centers andaudited each year using a consistent, comprehensive approach. The metrics used areconsistent with that philosophy.
Audits measure performance against a
mandatory set of standards and standard
operating procedures. The target performanceis 8 or better on a 10-point scale. The Company
reviews its sites on a frequent basis. The
percentage of sites audited this year was 96%.

2008

86%

2009

86%
92%

2010

2008

96%

2009

92%

2010

93%

2008

94%

2009
2010

87%
96%

To that end, P&G works with many multinational as well as European companies tounderstand our performance in areas such as
injury/illness, workers’ compensation, property
loss, and regulatory fines, and HS&E personnel
productivity. In addition, we are routinely
involved in studies led by GEMI (Global
Environmental Management Initiative), a
business group with membership of more than
41 multinational companies that survey several
key HS&E topics. As a result of this work, wehave concluded that, compared to otherleading companies, P&G continues to deliver
strong HS&E results. Highlights include:• Injury/illness rate for employees — within thelowest 25%• Lost workday rate for employees — within thelowest 25%

We are investing in our HS&E program todevelop and improve HS&E capability in bothacquisition and greenfield sites. While P&G’s
HS&E operational costs are excellent, ourlonger-term challenge is to continue to deliver
benchmark results while optimizing our HS&E
program costs.

Fire Protection
P&G operates its fire protection program on thebasic principle that each facility is unique andshould have a program designed to meet its
specific requirements. The Insurance Division,working with Global Business Unit fire
protection leaders and local management,
determines the appropriate level of fire
protection for each P&G location.
Each facility’s program is organized and built
around the following key elements:• Protection Engineering• Maintenance and Inspections• Prevention Programs• Emergency Response• Qualified Personnel
Each facility has a fire defense profile that
describes the program requirements in detail.

• Penalties paid (in dollars per billion dollars ofsales) —within the lowest 25%• Property loss (in dollars per billion dollarsof sales) — within the lowest 33%• “Best in class” HS&E operations costs (indollars per billion dollars of sales)

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility

Worldwide Health, Safety,
and Environment Systems
Site HS&E Leadership Training

HS&E Program Costs

A key indicator of HS&E systems capability is thepercentage of sites with trained and qualified
leaders. Leadership candidates train on-site foran extended period after attending a week-longseminar where their knowledge and ability tohandle specific situations are assessed. For full
qualification, the candidates must complete a
qualification project at their own plant.
Currently, more than 88% of sites worldwide
have HS&E leaders qualified by Corporate/GBU
staffs, and more than 86% have qualified fire
protection leaders. This training and qualification program applies to all sites, including
Technical Centers and acquisitions.

There are two aspects of HS&E program costs:

81%
78%

2009

88%

2010

Stakeholders•

New Vision & Goals

1. Capital costs for new HS&E equipment
2. People and operating costs for existing
facilities
HS&E capital costs for 2009 – 2010 wereapproximately $42.5 million, which increasedslightly versus last year. These costs include thepurchase and construction of pollution control
equipment such as wastewater pretreatment
and air emission controls.
HS&E total costs for existing sites, which
includes costs for personnel, operations, andcontractor expenses for HS&E activities in2009 – 2010, were $159.4 million, which is aslight increase versus last year. Efforts to reduce
the amount of waste disposed have increased
our overall quantity of recycling, and revenue
generated from these recycling activities was$41 million.

Worldwide, 40 million people are
infected with HIV/AIDS. It is estimatedthat someone becomes infected every
six seconds.
Infection rates in some African countries run as
high as 40% of the population. AIDS has
become the leading cause of death in
sub-Saharan Africa, with more than 28 million
people infected. In addition to the many lives
lost, there are an estimated 14 million children
orphaned by AIDS.

HIV/AIDS Policy
All employees, including those who are
HIV-infected or have AIDS, are treatedconsistently with the Company’s Purpose,
Values and Principles by the Company, their
managers, and co-workers.
Among other things, that means that eachindividual is treated with dignity and respect,
and that we do not discriminate against any
individual based on any difference not related toperformance.
We treat employees with HIV/AIDS the same as
we treat those with other serious illnesses.
Specifically, an employee who is HIV-infected orwith AIDS:

2008
2009
2010

• Has the same employment rights andresponsibilities as other employees.

69%
64%
86%

•

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HIV/AIDS(continued)

2008• Employee •• Has the same eligibility for employee benefits
and programs, including medical care anddisability coverage, as noninfected employees.

• Is afforded privacy and confidentiality
protection consistent with the Company’s
handling of confidential, medical, or othersensitive information.
• Is provided management support toremain productive.
With HIV/AIDS impacting sub-Saharan Africa
more than any other area in the world, P&G’s
sub-Saharan organization is leading theCompany’s HIV/AIDS effort. P&G’s effort,
which began in 1998, was revised in 2004
to coordinate with the latest national andinternational developments and standards.
The effort’s objectives are to:• Use employee and family awareness andprevention programs at our African locations
to help prevent the spread of HIV/AIDS.
• O ffer medical plans that assist employeeswith HIV/AIDS to get life-prolonging
medication, and in some cases supplement
these plans with additional Company support.
The workplace portion of the effort consists ofthe following elements:• Establishing baseline measurements, suchas for knowledge, attitude, perception, anddisease prevalence.
• Conducting risk analysis and impact
assessment, considering issues such as costs to
P&G and impact on customers, suppliers, andhealth care facilities.
• Implementing prevention strategies, such asawareness training, voluntary counseling, andtesting for HIV/AIDS and sexually transmitted
disease.

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Products•

Operations•

Social Responsibility• Employee •Stakeholders•

New Vision & Goals•

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HIV/AIDS (continued)• Implementing wellness programs to keep
infected employees as healthy as possible andproviding post-exposure prophylactics,
anti-retroviral treatment, Nevirapine,
vitamins and nutritional supplements, andhome-based care.
• Evaluating and monitoring the effectivenessof these interventions.
• A ssessing and improving Company benefits.

Specific P&G Activities to Fight
HIV/AIDS in South Africa
For the past three years, we have partnered with
our different Health Services Providers indelivering Wellness Packages to the organization.
Part of this effort is the annual Wellness Days,
where experts are invited to talk about wellness
in the workplace.
Last year, we held a series of VoluntaryCounseling and Testing sessions (VCT). Overall,
46.6% of our employees were tested. Of theemployees tested, only a few were positive for
HIV/AIDS, which reconfirmed our previous datathat our infection rate is far lower than national
averages.

We continue to provide employees access toa P&G e-care website. By logging to thewebsite, employees can access a variety ofhealth-related information. The site also has an
online interactive feature called “Ask theDoctor” that enables employees to send
health-related questions to a medical professional. There are also condom dispensers ineach of the office restrooms, which are refilled
every week.
We believe we have adequate resources (e.g.,benefits, recruitment, and training) to address
the impact of the disease. We will continue
with our efforts to educate employees aboutthe HIV/AIDS pandemic and encourage them toget to know their status, at the same time
responding to the government’s call for
corporations to engage employees in the fightagainst the pandemic.

PUR and HIV/AIDS
The global response to HIV/AIDS needs toinclude the provision of safe drinking water, andP&G is helping to build awareness of this needas well as providing safe drinking water topeople with HIV/AIDS through the P&G
Children’s Safe Drinking Water Program.
In sub-Saharan Africa, where HIV/AIDS rates arevery high, we are working with a number ofpartners to provide safe drinking water
to help people live positively with HIV/AIDS.
People who have HIV/AIDS are more susceptible
to water-borne diseases, including parasites,
viruses, and pathogenic bacteria. The P&G
Children’s Safe Drinking Water programprovides the PUR Purifier of Water product,
which effectively removes all of these elementsfrom contaminated water, making it a critical
health tool for many people with HIV/AIDS.

In 2009 at the Clinton Global Initiative, P&G
committed to providing an additional 2 billion
liters of clean water by 2012. This brings our
total commitment to 4 billion liters by 2012.
People living with HIV/AIDS are a major focus
of our work to deliver this increased volume,
and we are currently working at large scale in
Cote d’Ivoire, Democratic Republic of Congo,
Ethiopia, Kenya, Malawi, Nigeria, Tanzania,
and Uganda to help people living with HIV/
AIDS. Towards this goal, we have provided 2.2
billion liters of clean water, helping to avoid
over 90 million days of diarrheal illness andsave an estimated 12,000 lives, mostly
children.

www.pg.com/sustainability

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Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility•

Employees • Stakeholders •New Vision & Goals•

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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.

Contents
A Global Approach to Sustainable PackagingPartnership to Save Energy
A Vision for a New World in 2050
Stakeholder Engagement
Advertising and Promoting to Consumers
Appropriately
Principles for Developing Environmental
Sustainability Claims
Sustainability Guidelines for Supplier RelationsSupplier Diversity Program
Personal Information Privacy
Principal Industry and Business Associations

64
65
65
66
68
68
69
70
70
71

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Products•

Operations•

Social Responsibility•

Employees • Stakeholders •New Vision & Goals•

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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 the consumer 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 in this project, testing its
metrics through pilots with our customers,
including Kroger. The project report, entitled
A Global Language for Packaging andSustainability, was launched in June 2010 at
a Summit in London.

“Like P&G, Kroger is committed to
improving the sustainability of its
products and packaging. The Global
Packaging Project provides the wholeindustry with a common language
on sustainability that will help us all
drive innovation and sustainability
improvements.”

IMPROVING COMMUNICATION

Package
Manufacturers

Roger Templeton, Director of
CORPORATE BRANDS, Kroger

Consumers

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

Working toward
a commonlanguagefor sustainable
packaging

Product
Manufacturers

Retailerswww.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility

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

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A Vision for a New Worldin 2050

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 haveaccess to resources and expertise within the
Department of Energy and their allied partners to
help us advance our energy efficiency efforts.
Save Energy Now also represents an opportunity
to network with and learn from over 50 otherleading companies that have also signed theSave Energy Now Pledge.

•“I commend P&G on becoming a Save
Energy Now LEADER. By taking thisbold pledge to reduce its industrial
energy intensity by 25% over ten
years, P&G has established itself
among the vanguard of forwardthinking American companies as aleader in industrial energy efficiency.”
Letter from Dr. Steven Chu, U.S. Secretaryof Energy, welcoming Procter & Gamble to
the Save Energy Now Leader Program

To gain broader insights of future trends andopportunities, P&G was one of 29 global
companies that took part in the Vision 2050
project of 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, the2050 Vision is intended to ensure that we createa world where 9 billion people are living
well—with enough food, 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 the humancondition. This requires companies to work in
partnership with other businesses, governments,
academia and nongovernmental organizations torealize this ambitious goal.

“Companies like P&G need tolook forward to understand theopportunities, limitations andsustainability challenges that lie
ahead. Having a clear vision ofwhere they want to go in terms ofsustainability will be a valuable asset
and a competitive advantage.”
Per Sandberg, Project Director, WBCSD

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

www.pg.com/sustainability

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P&G Profile•

Products•

Operations•

Social Responsibility•

Employees • Stakeholders •New Vision & Goals•

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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 Market
Transformation, WWF-US:

WWF and P&G recently announced a Global
Partnership aimed at encouraging sustainableproduction and consumption. This partnership brings
together the world’s largest global environmental
NGO and the world’s largest consumer goods
company, both committed to improving sustainability.
The three-year partnership will focus initially onsustainable production, including energy and water
conservation in P&G plants, and on sustainablesourcing of materials for P&G products, including
renewable forest products and palm oil. As we moveto using more renewable materials, particularlymaterials such as pulp and palm oil, we needto ensure that production does not lead to lossof natural ecosystems, with associated loss of
biodiversity. Our sustainable forestry policy alreadyrequires us to source pulp only from certified
sustainable operations. P&G’s Family Care businesshas been a member of WWF’s Global Forest & Trade
Network—North America for over a year, and weplan to extend and broaden our joint work in thisarea. In addition, we are working to ensure that wesource palm oil and derivatives only from confirmed
responsible and sustainable sources by 2015. Thispartnership is helping us accelerate progress ininnovation as well, as evidenced by the plan to
introduce sugarcane-derived plastic into some of our
Beauty packaging.

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Products•

Operations•

Social Responsibility•

Employees • Stakeholders •New Vision & Goals•

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Stakeholder Engagement
P&G works hard to be a good corporateneighbor and to improve lives in thecommunities where we live and work.
Communities
Each P&G production facility has site-specificactivities to build constructive relationships withlocal authorities, local industry associations,residential and business neighbors, local actiongroups, thought leaders, and news media.
Depending on the cultures and interests ofindividual communities, this can range from
regular official meetings, during which new
information is shared or questions areanswered, to more informal meetings. This
could be, for example, a reception for immediate neighbors, where information on the past
year and plans for the new year are discussed.
P&G ensures continuity in community interaction by meeting regularly with local authorities
to update them on plant news. In the neighborhoods of many P&G operations, the Company
cooperates with and sponsors local events, so
the whole area benefits from the presence of a
P&G site.
P&G recognizes the importance of improving
the quality of life in our local communities, andwe support local initiatives and encourage
employee involvement. The most valuablecommunity support we provide usually involves
not only writing a check but also taking
advantage of the intellectual capabilities andenergy of P&G people. We look for areas where
we can make a significant, long-term, systemic
difference. This leads us to focus heavily on
education and health, with special emphasis on
youth. It also allows us to build alliances withstrategic partners to achieve a better result thanwe could alone. We look to our people in thearea to work with their local communities andgovernment officials to learn where we canmake the biggest difference.

Authorities: Local — Regional — Global
P&G communicates with local, regional, andglobal authorities directly, both as an individualcompany and through industry associations.
Scientists and legal experts in the P&G External
Relations organization review existing andproposed regulations that are relevant to theCompany and work with authorities to ensurethat policies take the needs and experience ofbusiness into account. This is done via meetings
with the authorities and comments on theirposition papers and industry position papers.
Activities like these can be very important toensure that the Company’s needs are understood and considered when decisions are being
made that can influence P&G’s business.

NGOs: Local — Regional — Global
P&G frequently enters into dialogue withnongovernmental organizations (NGOs) tounderstand their concerns and cares. In order
to work constructively with stakeholders, it isessential to have their confidence and be seen
as a reliable and open discussion partner. Bybuilding an open relationship, we can approach
our NGO partners when issues arise. There is awide range of NGOs that vary by area ofinterest (environmental, consumer, animal
welfare, etc.), by attitude (from extreme tomoderate), and by their geographic links (fromlocal to global). Depending on their characteristics, a number of NGOs can be seen as the
vocal spokespeople for the general public.
Consumer organizations exist in many

countries. These organizations contact
companies to compare products and voicecomments they receive from their members.
P&G continuously provides consumer organizations with information on new initiatives andcooperates with them in answering consumer
questions.

Consumers
At P&G, we are dedicated to meeting the needsof our consumers by providing products andservices that can help improve their lives. The
concept of “Consumer is Boss” is fundamental
throughout the development and marketing ofour products. We set out to delight consumers
by launching only new products and productimprovements that genuinely meet their needs.
Before establishing a project for a new productor product improvement, P&G technologists
research consumer needs in depth to identify
and understand those needs that are notadequately met today.
Once a product is launched, our commitment
to our consumers does not stop there. For P&G,
every consumer’s experience in choosing,buying, or using one of our products canprovide vital insights to help us further improve
our products and services. So we encourage
consumers to contact our Global Consumer
Relations team. We want to hear about ourconsumers’ experiences with our products— goodand bad.
Last year we heard from over 7 million
consumers who wanted to ask us something
about our products or our Company. We
proactively offer “traditional” contact channels — phone, letter, e-mail — to consumers, but
we are also very aware that consumers’ lives arechanging (we are consumers too!). Life is getting
busier, and we want to be able to access theright information on our terms, which may bevery early in the morning, or in the middle of thenight. So we have invested in technology, which
has already been deployed for some of ourmajor brands, where consumers can access key
information on a 24/7 basis, i.e., on their terms.
Of course, we continue to offer the wellestablished Careline Services where consumers
can talk to or communicate with an experienced
advisor, but we also enable consumers to findvital information on our brands using e-mail andtelephony technology “out of hours.” This has
been a huge success, and has actually enabled
us to interact with even more of P&G’s
consumers in the last fiscal year, which provided
more insights for our Product Development andMarketing teams to help further improve our
products and services.
We are also innovating in how we ensure thatthese important insights from our consumers
get to our business teams. Consumers who takethe time to contact a company for advice or ask
for help to resolve a problem provide valuable
insights into our products, which can reallyhelp us develop our business by improving ourbrands. So we need to make sure that ourconsumer’s voice is heard in P&G. We do thisby using a range of different tools andtechnologies that provide our business teams
with key learnings from consumer comments.
In Global Consumer Relations, we recognizethat the world is changing and we are investing
in innovative technology to better serve ourconsumers. We are privileged that consumers
care enough about our products to contact us.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility•

Employees • Stakeholders •New Vision & Goals

Advertising andPromoting to Consumers
Appropriately

Principles for Developing
Environmental Sustainability
ClaimsThe Company does not permit its advertising or promotions for its products to
be false or misleading.

These principles are intended to provide
internal guidance for the development ofenvironmental sustainability claims.
All claims are required to pass througha formal claims approval process.

P&G’s Worldwide Business Conduct Standards
for Advertising include:• Do tell the truth in Company advertising andpromotions.
• Don’t make a substantive claim about aCompany product, or a competitor’s product,
or a comparison with a competitor’s product,that has not been substantiated throughobjective product testing based on soundstatistical and scientific principles.
• Don’t run any advertisement or promotionthat has not been reviewed by appropriate
Company Legal personnel.

For additional information, please see
P&G’s Worldwide Business Conduct
Manual at http://www.pg.com/en_US/
downloads/company/governance/Policy_
Worldwide_Business_Conduct_Manual.pdf.

1. Claims must be truthful, data based, anddefensible. Claims must be supported bysound and transparent assumptions andgood science, and have sufficient data to
substantiate the claim.
2. Claims should be a specific statement of facts
and should not exaggerate attributes orbenefits. The use of broad, unqualified, andhard-to-define claims should be avoided.
3. Claims should reflect life cycle thinking. The
claimed benefit should not be outweighed byother environmental burdens or negative
attributes of the product/packaging
elsewhere in its life cycle.
4. Any environmental benefit claimed on a
product must be a meaningful benefit for
consumers, customers, or external
stakeholders.

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7. E nvironmental benefits may be translated
into other indicators which are more tellingfor consumers, as long as the translation
is based on factual equivalents and does
not exaggerate the benefit the productactually provides.
8. T he claim must not be worded in a way that
denigrates products not carrying the claim.
9. P resence/absence of specific ingredients
may be used only when claims do notdenigrate products carrying the ingredientsand only when presented in a neutral andinformative way.
10. The product carrying an environmental
claim must not be labeled as dangerous forthe environment.
11. All claims must comply with relevant local
regulatory/legal requirements.
12. All environmental sustainability claims
must pass through the normal claim
approval systems.

5. Claims should not misleadingly exploit
environmental requirements needed forregulatory or legal compliance.
6. Claims should be supported by data on both
recommended and actual usage if these are
known to differ.

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Products•

Operations•

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Sustainability Guidelines for
Supplier Relations
The foundation of our Sustainability
Guidelines for Supplier Relations is
our Purpose, Values and Principles. We
operate within the spirit and letter of thelaw and maintain high ethical standards
wherever we conduct business. We will
actively seek business relationships with
suppliers who share our values andpromote the application of these highstandards among those with whom they
do business.
Summary of Our Supplier Guidelines:
1. We expect our suppliers to comply with allapplicable laws of their country, includinglaws relating to employment, discrimination,
environment, and health and safety. Suppliers
who knowingly violate laws or have repeatedproblems conforming to them will not receive
our business.
2. Commercial bribery is illegal and subject tocriminal penalties in many countries,
including the United States. Any personal
payment or bribe to individuals employed by
P&G’s customers or suppliers — or receipt of abribe or personal payment by P&G employees— is strictly prohibited. Even in locations
where such activity may not, technicallyspeaking, be illegal, it is absolutely prohibitedby Company policy.

3. P&G supports universal human rights,
particularly those of our employees, thecommunities within which we operate,
and the parties with whom we do business.
In our business award decisions, we willcontinue to place substantial value upon
incumbent and potential suppliers who
consistently respect basic human rights.
4. P&G utilizes fair employment practices,striving to provide a safe, healthy, andproductive work environment for its
employees. The Company respects employees’ right to freedom of association,
third-party consultation, and collective
bargaining where allowed by law. The
Company expects suppliers to uphold thesame standards. Specifically:• We will not conduct business with
suppliers employing child, prison,indentured, or bonded labor, or using
corporal punishment or other forms ofmental and physical coercion as a formof discipline.
• We expect suppliers to conduct theirbusiness without unacceptable worker
treatment such as harassment, discrimination, physical or mental punishment, orother forms of abuse.
• At a minimum, we expect our suppliers
to comply with all applicable wage andhour laws, and rules and regulations,
including minimum wage, overtime, andmaximum hours.
• We expect suppliers to provide a safe
work environment, to prevent accidents
and injury, and to minimize exposure to
health risks.

• We seek to do business with suppliers
who share our concerns for and commitment
to preserving the environment. At aminimum, suppliers must meet all current
applicable environmental rules, regulations,and laws in their countries.
The management system is owned by the
Global Vice President – Purchasing and has threecomponents:
Communicate: All purchasing personnel who
interface with suppliers are trained on the
supplier guidelines and how to conduct
supplier assessments. We communicate theguidelines to our suppliers once a year andreinforce our expectations in our contracts.
This makes compliance with the guidelines
a condition of business and therefore makes
noncompliance grounds for disqualification
for all new and ongoing supply agreements.

Correct noncompliance: When potential
noncompliance issues are identified, they
are communicated to the supplier as partof the closing meeting. Corrective actions,
including formal notification and a remediation
action plan, are then implemented. In somecases, we require immediate action
to achieve compliance, or we halt business.
These include child labor or forced labor,
and egregious health and safety violations
presenting immediate danger to human health.
If a compliance issue is not resolvedin a timely manner, the business relationshipis terminated.

The Sustainability Guidelines for Suppliers
can be downloaded at: www.pgsupplier.
com/sustainability-guidelines.

Check: Ongoing periodic performanceassessments are done as part of regularcommercial and technical supplier visits.
During the year we began preparing for arelaunch of our audit program. Specifically, we
will adopt the use of an industry-standard
third-party audit system versus the current
in-house model. This allows P&G to strengthen
compliance in a more efficient and disciplined
way through the eyes of professional auditors
while refocusing P&G resources on collaborating with suppliers on corrective actions. Thisapproach should also lower costs for our
suppliers by allowing them to reapply one
audit for multiple customers via a mutual
recognition program enabled by following an
industry standardized methodology.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

Supplier Diversity
Supplier Diversity is a business strategy for P&G
that we have focused on since the mid-1970’s.
When we invest with diverse suppliers, we not
only strengthen our innovation and go-tomarket capabilities, but we also touch andimprove the lives of the women and men who
work in these companies— and through them,
their families and the communities in which
they live and work. This is an important way wefulfill P&G’s Purpose.
P&G makes a significant and ongoing investment in supplier diversity, spending more than
$2 billion with minority- and women-owned
suppliers in 2009–2010. This is the third
consecutive year we have exceeded $2 billion in
supplier diversity spending. P&G is one of just
17 corporations on the Billion Dollar
Roundtable, an exclusive group of companies
that invest a billion dollars a year or more withminority- and women-owned agencies,
suppliers or external businesses.

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Personal
Information Privacy
Advances in computer technology havemade it possible for detailed information
to be compiled and shared more easily
and cheaply than ever around the globe.
That can be good news for society as awhole and for individual consumers.

Externally, P&G has been a strong advocate ofwork within the industry to protect the privacyof consumers. For example, P&G has been aleader in the effort to make privacy notices
more consumer friendly and has made ouronline marketing statement available in 39
languages.

At the same time, as personal information
becomes more accessible, each of us —companies, associations, government agencies,
consumers — must take precautions against
misuse of that information. Several countries
already have laws protecting consumers frommisuse of their personal information, and manyothers are following suit.

For more information on P&G’s global
privacy principles, please visit:www.pg.com/en_US/sustainability/point_of_
view/privacy.shtml.

P&G places high priority on safeguarding
people’s personal information. Even in countries
without privacy legislation, we still adhere to
our privacy policy. We want to have the trust of
consumers and all others who do business withus, including employees, shareholders, retailcustomers, and recruitment candidates.
P&G’s robust privacy program is managed by a
Global Privacy Council. Our first objective is toprotect an individual’s personally identifiable
information as if it were our own. All outsidecompanies handling data on our behalf are
required to abide by our privacy principles.

P&G adheres to U.S./European Union
Safe Harbor principles and participates in
the Better Business Bureau’s EU Safe Harbor
Program. For more information, visit: www.bbb.
org/us/european-union-dispute-resolution/.
In the United States, P&G is an active
participant in the Better Business
Bureau’s Accredited Business Program. For
more information, visit: www.bbb.org/us/
Business-Accreditation/.
Third-party companies can accessour privacy and security guidelines
on www.pgsupplier.com.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

Principal Industry andBusiness Associations•

Products•

Operations•

Social Responsibility•

Employees • Stakeholders •New Vision & Goals•

GRI Index

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Latin America

Asia• ABIPLA — Brazilian Association of Household
Cleaning Products• Australia – ACCORD – Consumer, Cosmetic,
Hygiene & Specialty Products Association• ASOQUIM — Venezuelan Association of the
Chemical Industry• China — Academy of Environmental Science

North America• ABIHPEC — Brazilian Association of Personal
Hygiene, Perfumery and Cosmetics Industry• China — Association of Fragrance, Flavor andCosmetic Industry• American Chemical Society• CEMPRE — Brazilian Recycling Association• China — Daily Use Groceries Association• Advertising Associations: WFA — World
Federation of Advertisers• American Chemistry Council• CAPA — Argentine Chamber of Cosmetics& Perfume Industry• China — Industry Association for Baked
Products & Sugars• Chemical Industry Associations:
CEFIC — European Chemicals Industry
Association• American Legislative Exchange Council• CANIPEC — Mexican Association of the
Cosmetics and Personal Care Industry• China — Environmental Health Safety
Roundtable• Cámara Nacional de la Industria de Aceites,
Grasas, Jabones y Detergentes, Mexico• China — Association of Surfactant, Soap andDetergent Industries• CONCAMIN — Confederación de Cámaras
Industriales• China — Hygiene Supervision Association

P&G holds membership in many industry,business, and environmental associations
whose activities are related to theCompany’s. These include:
Europe, Middle East and Africa• Cosmetics Industry Associations:
COLIPA — Cosmetics & Fragrances Industry• Detergent Industry Associations:
AISE — Association Internationale de la
Savonnerie de la Detergence et des Produites
d’Entretien• Pet Food Industry Associations: PFMA — Pet
Food Manufacturers Association• Pharmaceutical Associations: AESP –Association of European Self-Medication
Industry; EFPIA — European PharmaceuticalIndustry Association• American Cleaning Institute• Association of National Advertisers• Business Roundtable• Canadian Consumer Specialty Products
Association• Canadian Cosmetic, Toiletry and Fragrance
Association• Canadian Health Products Association• AMECE — AsociaciÓn Mexicana de Estándarespara el Comercio ElectrÓnico• CONAR — Consejo de AutorregulaciÓn y Ética
Publicitaria, Mexico• Employer Associations: Business-Europe• Consumer Specialty Products Association• Environmental Associations:
ECETOC — European Center for Ecotox and
Toxicology of Chemicals; EUROPEN — The
European Organization for Packaging and theEnvironment• Consumer Health Products Association• Euro/American Business Associations:
AECA — American European Community
Associations; EU Committee of AmCham• Global Environment Management Initiative• National Conference of State Legislatures• Food Associations: CIAA — European Food
Industry Association• CONINDUSTRIA — Industrial Confederation of
Venezuela• National Environmental Development
Association• Grocery/Brand Associations: AIM — European
Brands Association• CONAR — Chilean Advertising Self-Regulationand Ethics Council• National Governors Association• SOFOFA — Manufacturers Industry Association• Personal Care Products Council• AmCham — Chilean American Chamber ofCommerce• Paper Associations: EDANA — European
Industry of Non-Woven Products;
HAPCO — European Industry of Hygiene Paper
Products• The Council of State Governments• CSR Canada — Corporations Support Recycling• Food and Consumer Products of Canada• Grocery Manufacturers of America• U.S. Council for International Business• Water Environment Research Foundation• COMCE — Consejo Mexicano de Comercio
Exterior• CONMEXICO — Consejo Mexicano de la
Industria de Productos de Consumo• ANDA — Venezuelan Association ofAdvertisers• ANDA — National Advertisers Association
Chile• SNI — Sociedad Nacional de Industrias, Peru

• China — AmCham• China — National Household Paper Industry
Association• China — China Oral Care Industry Association• China — Guangdong Fragrance Flavor
Cosmetic and Laundry Industry Association• China — Guangdong Quality Inspection
Association• China — National Bar Code Association• Hong Kong — The Cosmetic and Perfumery
Association of Hong Kong
• India — Confederation of Indian Industry• India — Federation of Indian Chambers ofCommerce and Industry• India — Feminine & Infant Hygiene Association• India — Indian Soap & Toiletries Makers’
Association• Indonesia — Indonesian Cosmetics Association• Japan — Japan Cosmetic Industry Association• Japan — Japan Hygiene Product Industry
Associationwww.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility• Japan — Japan Soap and Detergent
Association

Worldwide• Korea — American Chamber of Commerce• Consumer Goods Forum• Korea — Korea Chemical Management
Association• International Chamber of Commerce• Korea — Korea Cosmetics Industry Association• Korea — Korea Food Industry Association• Korea — Korea Pharmaceutical Trade
Association•

Employees • Stakeholders •New Vision & Goals•

GRI Index

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• Conference Board• Society of Environmental Toxicology andChemistry• World Business Council for Sustainable
Development• Malaysia — American Malaysian Chamber ofCommerce (AmCham)• Malaysia — MAFMAG — Federation of
Malaysian Manufacturers• Malaysia — MICCI — Malaysian International
Chamber of Commerce and Industry• Malaysia — CTFA — The Cosmetic, Toiletry &Fragrance Association of MalaysiaCTFA• Philippines — Soap & Detergent Association of
the Philippines• Philippines — Cosmetic, Toiletry & Fragrance
Association of the Philippines• Singapore — The Cosmetic, Toiletry &Fragrance Association of Singapore• Taiwan — TWCIA — Taiwan Cosmetic Industry
Association• Taiwan — Taiwan Paper Industry Association• Taiwan — Taiwan Soap & Detergent Industry
Association• Thailand — F.T.I. — Federation of Thai Industries• Thailand — Thailand Soap & Detergent
Associationwww.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility•

Employees •Stakeholders• New Vision & Goals •GRI Index

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New Environmental Sustainability Vision
Recently, P&G announced a new long-term environmental sustainability vision. We developed this vision
over the course of a year, partnering with external experts and soliciting input from hundreds of P&G employees at all levels and functions.

Why Now?

Being Accountable

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 the world, more completely—requires us to continue to grow responsibly. And it
also requires us to accelerate our commitment tohelping solve some of the world’s sustainability
challenges.

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 ourexisting 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

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility•

Employees •Stakeholders• New Vision & Goals •GRI Index

74 of 82

Recently, P&G announced a new long-term environmental sustainability vision. We developed this vision
over the course 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 that is producedby natural processes at a rate comparable to its
rate of consumption. P&G already uses significant
amounts of renewable materials in our products
and packaging. However, we still use many
nonrenewable materials, such as those derived
from petroleum and other fossil fuels. Our vision
is to use materials that are renewably sourced.
Materials will come from traditional sources suchas biomass and agricultural products, andresearch is also ongoing to understand how raw
materials can be derived from biologicalprocesses 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 orhuman communities.

Having zero consumer waste go to landfills.
In the developed world, waste can be disposedof in four ways: recycling, composting, waste-toenergy, and landfills. The first three give value tothe 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 no value. 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 the conservation of
resources. Life Cycle Assessment (LCA) has
shown that for some major P&G products, thelargest environmental impact occurs when
consumers use our products. As the world’s
largest consumer packaged goods company, thisrepresents a significant and unique opportunity
for P&G to have a meaningful impact insustainability. We will continue to enableconsumers to reduce their environmental
footprint by designing products that meet theirneeds relative to value and performance and, in
addition, allow them to conserve 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% renewableenergy. Renewable energy sources include those
based on sunlight, wind, biomass, tides, andgeothermal 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 byrenewable 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 our plants, we will
drive this number even lower by eliminating
petroleum-based 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 allother 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 water in the communities in which
we operate. We will also ensure sustainable
water management by both our operations andconsumer use of our products. This commitment
includes water reduction goals, use of newtechnologies, product innovation using a Life
Cycle Assessment, and siting decisions using awatershed approach, which looks holistically atwater supply where a plant could be built.
Having zero manufacturing waste go tolandfills. Our manufacturing waste can bedisposed of in four ways: recycling, repurposing,waste-to-energy, and landfills. The first three givevalue 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-toenergy without toxic emissions).

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility

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.

•

Employees •Stakeholders•

New Vision & Goals• GRI Index

75 of 82

Index

www.pg.com/sustainability

Contents

GRI
INDICATOR

Introduction••

P&G Profile•

Products•

Operations•

DESCRIPTION

Social Responsibility

PAGE(S)•

Employees •GRI
INDICATOR

Stakeholders•

New Vision & Goals• GRI Index

DESCRIPTION

76 of 82

PAGE(S)

Report Scope and Boundary

1. Strategy and Analysis
1.1Statement from the most senior decisionmaker of the organization.

1.2

Description of key impacts, risks, and opportunities.

4

3.5

Process for defining report content.

5 – 6, 7 – 70

3.6

Boundary of the report.

17, 34

3.7

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

17, 34

3.8

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

17, 34

2. Organizational Profile

5

2.1

Name of the organization.

7

2.2

Primary brands, products, and/or services.

8

2.3

Operational structure of the organization.

9 – 14

3.9

Data measurement techniques and the bases of calculations.

17

2.4

Location of organization’s headquarters.

7

3.10

17

2.5

Number of countries where the organization operates, and namesof countries with either major operations or that are specifically
relevant to the sustainability issues covered in the report.

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

3.11

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

10

2.6

Nature of ownership and legal form.

7

GRI Content Index

2.7

Markets served.

7

3.12

2.8

Scale of the reporting organization.

2.9

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

2.10

Awards received in the reporting period.

7, 12 – 14

7 – 11
10

Table identifying the location of the Standard Disclosuresin the report.

Assurance
3.13

58, 75

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

3. Report Parameters

4. Governance, Commitments and Engagement

Report Profile

Governance

3.1

Reporting period.

3.2

Date of most recent previous report (if any).

3.3

Reporting cycle (annual, biennial, etc.).

Annual

3.4

Contact point for questions regarding
the report or its contents.

sustainrep.im@pg.com

76 – 812

2

4.1

Governance structure of the organization.

FY 08–09

4.2

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

4

4.3

For organizations that have a unitary board structure, state
the number of members of the highest governance body thatare independent and/or non-executive members. State how theorganization defines ‘independent’ and ‘non-executive.’

15

4.4

Mechanisms for shareholders and employees to provide
recommendations or direction to the highest governance body.

10, 15 – 16

15 – 17www.pg.com/sustainability

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Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals• GRI Index

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DESCRIPTION

PAGE(S)GRI
INDICATOR

4.5

Linkage between compensation for members of the highest governance body, senior managers, and executives (including departurearrangements), and the organization’s performance.

15 – 16

4.17

4.6

Processes in place for the highest governance body to ensure conflictsof interest are avoided.

15 – 16

4.7

Process for determining the qualifications and expertiseof the members of the highest governance body for guiding
the organization’s strategy on economic, environmental,
and social topics.

15 – 16

EC1

Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations
and other community investments, retained earnings, andpayments to capital providers and governments. (Core)

4.8

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

3 – 6, 54 – 55

EC2

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

4.9

Procedures of the highest governance body for overseeing theorganization’s identification and management of economic, environmental, and social performance.

15 – 16

EC3Coverage of the organization’s defined benefit plan obligations. (Core)
Also see financial report www.pg.com/investors/annualreports.jhtml

56

EC4

N/A

Processes for evaluating the highest governance body’s
own performance.

15 – 16Significant financial assistance received from government. (Core)See financial report www.pg.com/investors/annualreports.jhtml

4.10

DESCRIPTION

PAGE(S)

Key topics and concerns that have been raised throughstakeholder engagement.

63 – 72

5. Economic performance indicators
Economic Performance
921, 36, 65

Market Presence

Commitments to External Initiatives
4.11

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

25

4.12

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

55

4.13

Memberships in associations.

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

EC6

Policy, practices, and proportion of spending on locally-based suppliers
at significant locations of operation. (Core)10, 12EC7Procedures for local hiring and proportion of senior
management hired from the local community at significant
locations of operation. (Core)

56 – 58

71 – 72

56

Indirect Economic Impacts

Stakeholder Engagement
4.14

List of stakeholder groups engaged by the organization.

63 – 72

4.15

Basis for identification and selection of stakeholders withwhom to engage.

63 – 72

4.16

Approaches to stakeholder engagement.

63 – 72EC8Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind, or
pro bono engagement. (Core)

40 – 49

EC9

Understanding and describing significant indirect economic impacts,
including the extent of impacts. (Additional)

40 – 49

www.pg.com/sustainability

Contents•

GRI
INDICATOR

Introduction•

P&G Profile•

Products•

Operations•

DESCRIPTION

Social Responsibility

PAGE(S)•

Employees •GRI
INDICATOR

EN15

6. Environmental
Materials

Stakeholders•

New Vision & Goals• GRI Index

DESCRIPTION

78 of 82

PAGE(S)

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

N/A

EN1

Materials used by weight or volume. (Core)

34

Emissions, Effluents and Waste

EN2

Percentage of materials used that are recycled input materials. (Core)

34

EN16

Total direct and indirect greenhouse gas emissions by weight. (Core)34, 36

EN17

Other relevant indirect greenhouse gas emissions by weight. (Core)34, 36

EN18

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

EN19

Emissions of ozone-depleting substances by weight. (Core)34, 39EN20

NOx , SOx , and other significant air emissions by type
and weight. (Core)34, 39EN21

Total water discharge by quality and destination. (Core)34, 39EN22

Total weight of waste by type and disposal method. (Core)34, 39

EN23

Total number and volume of significant spills. (Core)

EN24

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

34, 37, 39

EN25

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

N/A

EN26

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

4– 6, 19– 29,
66

EN27

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

EN28

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

EnergyEN3

Direct energy consumption by primary energy source. (Core)

34 – 35

EN4

Indirect energy consumption by primary source. (Core)

34 – 35EN5Energy saved due to conservation and efficiency improvements.
(Additional)

34 – 35, 65

EN6

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

4, 6, 19, 21,
33, 65,73 – 74

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

4, 6, 21,73 – 74

EN7

Water
EN8

Total water withdrawal by source. (Core)34, 38EN9Water sources significantly affected by withdrawal of water.
(Additional)

N/A

EN10

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

31

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

N/A

EN12

Description of significant impacts of activities, products, and services
on biodiversity in protected areas and areas of high biodiversity value
outside protected areas. (Core)24, 27– 29,
66

EN13

Habitats protected or restored. (Additional)

EN14

Strategies, current actions, and future plans for managing
impacts on biodiversity. (Additional)

Biodiversity
EN11

4– 5, 21,
31– 36, 65,
73– 7439

34, 3739

N/A
24, 27– 29,
66, 73 – 74

www.pg.com/sustainability

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INDICATOR

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Products•

Operations•

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PAGE(S)GRI
INDICATOR

EN29

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

20, 31

EN30

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

61

7. Labor practices and decent work

LA1

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

7

LA2

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

N/A

LA3

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

N/A

LA4

Percentage of employees covered by collective bargaining
agreements. (Core)
Also see www.pg.com/en_US/downloads/company/governance/
PG_Values_Policies.pdf

N/A

LA5

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

N/A

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

79 of 82

DESCRIPTION

PAGE(S)

LA8

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

58 – 61

LA9

Health and safety topics covered in formal agreementswith trade unions. (Additional)
Also see www.pg.com/company/who_we_are/ppv.shtml

58 – 61

LA10

Average hours of training per year per employee-by-employee
category. (Core)50, 56 – 58,
61

LA11

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

50, 56 – 58,
61

LA12

Percentage of employees receiving regular performance and careerdevelopment reviews. (Additional)

57, 61LA13

Composition of governance bodies and breakdown of employees per
category according to gender, age group, minority group membership,
and other indicators of diversity. (Core)
Also see Proxy Statement www.pg.com/investors/annualreports.jhtml

57

LA14

Ratio of basic salary of men to women by employee category. (Core)56

8. Human Rights
Investment and Procurement Practices

Occupational Health and Safety

LA7

New Vision & Goals

Diversity and Equal Opportunity

Labor / Management Relations

Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor andadvise on occupational health and safety programs. (Additional)•

Training and Education

Employment

LA6

Stakeholders

HR1

Percentage and total number of significant investment agreementsthat include human rights clauses or that underwent human rights
screening. (Core)

69

HR2

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

69

HR3

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

N/A

59 – 6159

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INDICATOR

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P&G Profile•

Products•

Operations•

DESCRIPTION

Social Responsibility

PAGE(S)

Non-discrimination
HR4

Total number of incidents of discrimination and actions taken. (Core)

Employees •GRI
INDICATOR

69

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

69

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

31, 39SO2

Percentage and total number of business units analyzed
for risks related to corruption. (Core)
Also see Worldwide Business Conduct Manual
www.pg.com/en_US/downloads/company/governance/Policy_
Worldwide_Business_Conduct_Manual.pdf

15 – 16

SO3

Percentage of employees trained in organization’s
anti-corruption policies and procedures. (Core)
Also see Worldwide Business Conduct Manual
www.pg.com/en_US/downloads/company/governance/Policy_
Worldwide_Business_Conduct_Manual.pdf

15 – 16

SO4

Actions taken in response to incidents of corruption. (Core)
Also see Worldwide Business Conduct Manual
www.pg.com/en_US/downloads/company/governance/Policy_
Worldwide_Business_Conduct_Manual.pdf

16 – 17

SO5

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

16 – 17

SO6

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

16 – 17

Corruption

69

N/A
Public Policy

Indigenous Rights
HR9

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

80 of 82

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

Security Practices
HR8• GRI Index

Community
SO1

Operations identified in which the right to exercise freedom of
association or collective bargaining may be at significant risk,
and actions taken to support these rights. (Core)
Also see www.pg.com/en_US/downloads/company/
governance/PG_Values_Policies.pdf

Operations identified as having significant risk for incidents of forced orcompulsory labor, and measures taken to contribute to the eliminationof forced or compulsory labor. (Core)

New Vision & Goals

PAGE(S)

Forced and Compulsory LaborHR7•

DESCRIPTIONChild Labor
HR6

Stakeholders

9. Society
56

Freedom of Association and Collective Bargaining
HR5

•

N/A

Anti-Competitive Behavior
SO7

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

N/A

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

39

ComplianceSO8

www.pg.com/sustainability

Contents

GRI
INDICATOR•

Introduction•

P&G Profile•

Products•

Operations•

DESCRIPTION

Social Responsibility

PAGE(S)

PR2

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

GRI
INDICATOR

PR8

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

Employees •Stakeholders•

New Vision & Goals• GRI Index

DESCRIPTION

81 of 82

PAGE(S)

Customer Privacy

10. Product responsibility

PR1•

24 – 26

N/A

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

N/A

Compliance
PR9

N/A

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

Product and Service Labeling
PR3

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

9

PR4

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

N/A

PR5

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

67

Marketing Communications
PR6

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

68

PR7

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

N/A

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility•

Employees •Stakeholders•

New Vision & Goals•

GRI Index

82 of 82

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