Designed to Grow... Sustainably
2007 Global Sustainability ReportMain Section Title
Sub-Section Title

1

P&G 2007 Global Sustainability Report

Sustainable development is a
simple idea – ensuring a better
quality of life for everyone, now
and for generations to come.1
P&G embraces sustainable development as a potential business
opportunity, as well as a corporate responsibility. Through ouractivities we contribute to the economic and social well-beingof a range of stakeholders, including employees, shareholders,
communities in which we operate, and more widely, toregional, national and international development. In summary,P&G contributes to sustainable development through bothwhat we do and how we do it.

“What we do” is provide branded products and servicesof superior quality and value that improve the lives of theworld’s consumers via health, hygiene or convenience.

“How we do it” includes addressing any
environmental and socioeconomic issues associated with our
products and services. Our Principles, Values and Statementof Purpose, which are central to P&G’s organization, act as
guidance for the development of our entire organizational
structure, all over the world. They are the basis for an
integrated set of management systems and policies applied
across the whole Company.
As a result, consumers will reward us with leadership sales, proﬁt
and value creation, allowing our people, our shareholders andthe communities in which we live and work to prosper.
1

On the Cover
While in Santiago, Chile, for meetings, 30 P&G Latin America
general managers took time out to join a community
improvement activity in the low-income neighborhood of La
Pintana. They took part in installing a play center, building asand box, planting an orchard and painting a fence. Sociedad
Activa, the local chapter of United Way, is upgrading theplayground, patronized by more than 140 children ages 2
through 5.
Visit www.pg.com/sr

Definition from UK government report from Department for the Environment,
Transport and the Regions, 1998.

Contents
CEO Statement
VisionP&G ProﬁleStrategies and Goals
Policies, Management Systems and Performance
Strategy 1 – Improve through Products
Strategy 2 – Improve through Production
Strategy 3 – Improve through Responsibility
Strategy 4 – Improve through Employees
Strategy 5 – Improve through Stakeholders
GRI Index
Contact

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P&G 2007 Global Sustainability Report

2

P&G is Designed to Grow.
CEO Statement
October 2007 marks the 170th year P&G has been in business.
We’ve sustained our Company’s growth over such a long
period of time by staying focused on P&G’s Purpose: improving
consumers’ lives in small but meaningful ways every day.
Our commitment to Sustainable Development, which wedeﬁne as “ensuring a better quality of life for everyone,
now and for generations to come,” is an important part of
how we fulﬁll P&G’s Purpose. We have a long heritage as a
Sustainability leader, and we remain committed to improving

consumers’ lives through P&G brands and by contributing to
the sustainability of our planet and the communities in which
we live and work.
Over the past decade, we’ve made signiﬁcant progress. We’rehelping to save energy and reduce greenhouse emissions
through products such as Tide Coldwater and Ariel Cool Clean
that reduce energy use through cold-water washing. We’rehelping children in need through our Live, Learn and Thrive
corporate cause. And we’re providing clean, safe drinking
water in developing countries and in times of natural disaster.
Now, as we look toward the next 170 years and more, we aredesigning Sustainability even more deeply into the way P&G
does business: through our Purpose, products, operations
and relationships.

We have a long heritage
as a Sustainability leader,
and we remain committed
to improving consumers’
lives through P&G brands
and by contributing to thesustainability of our planet
and the communities inwhich we live and work.

• We are embedding Sustainability in our Company Purpose,
which makes it explicit that we are focused on improving
consumers’ lives “now and for generations to come.”
In a Purpose-driven company like P&G, this addition isenormously important. It will provide inspiration and guidechoices and actions throughout our Company.
• We are designing Sustainability even more deeply into
our products, packaging and operations. Our focus is on
providing products and services that don’t require consumers
to make choices between Sustainability and their needs for
performance and value.
• We are leveraging our expertise and relationships to create
new opportunities and new approaches. As a member of the
Dow Jones Sustainability Index since its inception and as apartner with the world’s leading retailers, NGOs and others,
P&G can help bring tremendous resources to some of thetoughest Sustainability challenges.
Sustainability is a business strategy at P&G. It is integrated into
day-to-day business decisions. It is an important part of how
P&G is designed to grow – now, and for generations to come.

A.G. Laﬂey
Chairman of the Board andChief Executive Ofﬁcer

P&G 2007 Global Sustainability Report

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P&G is Designed to Grow... Sustainably.
VisionIn addition to incorporating Sustainability into P&G’s Purpose,
Values and Principles, we are renewing the Company’s
Sustainability strategy and setting new ﬁve-year goals for our
products, operations and programs.
1. We will build P&G’s business through Sustainability
innovations that delight consumers while improving theenvironmental proﬁle of P&G products. By 2012, our goal isto generate at least $20 billion in cumulative sales of productswith reduced environmental impact. These will be big ideas,

These new strategies andgoals are designed to ensure
P&G can continue to growreliably and responsibly, justas we’ve done for the past
170 years.

like Tide Coldwater or compacted detergents, where theenvironmental beneﬁts are signiﬁcant and obvious.
2. We will continue to improve the environmental proﬁle ofP&G operations. Today, over 95 percent of materials thatenter P&G plants leave as ﬁnished product. More thanhalf of remaining materials are recycled. Over the next ﬁve
years, we will reduce CO2 emissions, energy and water
consumption, and disposed waste per unit of production
by an additional 10 percent, contributing to a 40-percent
reduction for the decade.
3. We will continue to improve lives through P&G’s social
responsibility programs. Our corporate cause – Live, Learn
and Thrive – is helping children in need from birth toage 13. Our goal is to reach 250 million children throughthis program by 2012. Our Children’s Safe Drinking Water
program has already delivered more than 700 million litersof clean water, and we are committed to delivering another2 billion liters of clean water by 2012, preventing
80 million days of disease and saving 10,000 lives.
4. We will inspire and engage P&G employees to build
Sustainability thinking and practices into their daily work.
P&G’s organization is widely recognized as one of thestrongest organizations in business today. Encouraging
and enabling 138,000 P&Gers worldwide to innovate andto make Sustainability an even bigger part of how we dobusiness can have an enormous impact.
5. We will continue to work with external stakeholders
to identify new needs and to create new opportunities
and solutions for the world’s Sustainability challenges.
In particular, these stakeholders include thought-leading
retailers and partners such as the U.S. Centers for Disease
Control, UNICEF, the World Health Organization, Population
Services International and others.
These new strategies and goals are designed to ensure P&G
can continue to grow reliably and responsibly, just as we’ve
done for the past 170 years. We are committed to becoming
an even more sustainable company in a sustainable world.

Peter R. White
Director, Global Sustainability

P&G 2007 Global Sustainability Report

Designed
to Grow.

P&G ProﬁleIntroduction
Billion-Dollar Brands
Financial Information
P&G Equity
Structure and Governance4

P&G ProﬁleIntroduction

P&G 2007 Global Sustainability Report5

Three billion times a day, P&G brands touch thelives of people around the world. This happens
because P&G provides branded products of superior quality
and value to improve the lives of the world’s consumers. This
results in leadership sales, proﬁt and value creation, allowing
employees, shareholders and the communities in which we
operate to prosper.
P&G’s world headquarters is located in Cincinnati, Ohio,
U.S.A. The Company markets more than 300 brands in nearly
130 countries. We have on-the-ground operations in morethan 80 countries and employ 138,000 people.
P&G is a publicly owned company. Its stock is listed and tradedon the New York and Paris exchanges.
As of June 30, 2007, there were approximately 2,220,000
common stock shareowners, including shareholders ofrecord, participants in the Shareholder Investment Program,participants in P&G stock ownership plans and beneﬁcial
owners with accounts at banks and brokerage ﬁrms.

This is the ninth Sustainability Report for P&G’s worldwide
operations. Data in this report covers the period from July 1,
2006, through June 30, 2007. Financial information is given in
U.S. dollars.

Web

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

P&G ProﬁleBillion-Dollar Brands

P&G 2007 Global Sustainability Report

Billion-Dollar Brands

P&G’s billion-dollar brands are the core of the Company’s product portfolio.
They are leaders in their respective categories and platforms for innovation.

Global Key Brands
Of more than 300 brands, these 23 are the ones we consider key and have sales of more than a billion dollars each.

23 Billion-Dollar Brands ...

For the next year, the GBUs will be structured as: Beauty, Health and Well-Being, Household Care.

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P&G ProﬁleBillion-Dollar Brands

P&G 2007 Global Sustainability Report

Billion-Dollar Brands
P&G has 23 brands with annual sales of a billion dollars or more.

In alphabetical order:
ActonelA prescription medication to treat and prevent
postmenopausal osteoporosis.
Always/Whisper
Women around the world count on Always and Whisper
feminine protection.
Ariel
Fabric cleaning and care at its best.
BountySpills happen. With the Quilted Quicker Picker-Upper paper
towel, cleanup is easy.
Braun Electric Razor
Keeping millions of men well-shaved and well-groomed.
CharminAmerica’s favorite bathroom tissue.
Crest
Oral care products creating beautiful, healthy smiles
every day.
Dawn
No matter what your dishwashing need, Dawn has a productthat’s right for you.
Downy/Lenor
Laundry feels soft and smells fresh because of Downyand Lenor.
Duracell
You can depend on powerful, long-lasting Duracell batteries.
Folgers
Millions of Americans wake up with Folgers coffee every day.

Gain
Laundry detergent that delights scent-seekers.
Gillette Gel
Get a close shave, with comfort.
Gillette MACH3 Razor
Battery-powered shaving. Push the button, feel the power.
Head & Shoulders
Smooth, beautiful, ﬂake-free hair. It’s not what you’d expect
in a dandruff shampoo. Head & Shoulders has 12 customized
formulas – one just for you.
Iams
Nutrition for every life stage and lifestyle of your pet.
Olay
Designed for women of all ages to “love the skin they’re in.”
Oral-B
Dental hygiene products used by dentists themselves.
Pampers
Millions of babies experience the comfort and dryness ofPampers diapers.
PanteneHair around the world shines because of Pantene haircare products.
PringlesPotato chips: Once you “pop,” the fun doesn’t stop!
Tide
Tough cleaning power that gets out laundry stains.
Wella
Hair care products used in salons and at home.

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P&G ProﬁleFinancial Information

8

P&G 2007 Global Sustainability Report

Financial Information

P&G has grown sales from $39 billion to $76 billion in the past seven years.
We’ve more than doubled the number of brands that generate $1 billion or more in annual
sales and more than quadrupled the number of brands that generate at least $500 million.

The Company reported net earnings of $10.3 billion for theﬁscal year ended June 30, 2007, an increase of 19 percent
compared to $8.68 billion in 2006.
Diluted net earnings per share were $3.04 in 2007, compared
to $2.64 in 2006.
Net sales were $76.5 billion in 2007, up 12 percent fromlast year.
Our ﬁrst discretionary use of cash is dividend payments.
Common share dividends grew 11 percent to $1.28 per sharein 2007, representing the 51st consecutive ﬁscal year ofincreased common share dividends. Total dividend payments,
to both common and preferred shareholders, were $4.21
billion, $3.70 billion and $2.73 billion in ﬁscal 2007, 2006 and2005, respectively.

Financial Highlights
Amounts in millions
except per-share amounts

Net Sales
Selling, General and
Administrative Expenses
Income Taxes
Net Earnings
Basic Net Earnings
Per Common Share
Diluted Net Earnings
Per Common ShareTotal Assets
Long-Term Debt
Shareholders’ Equity

Web

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.

2007

2006

2005

$76,476$68,222$56,741

24,3404,370
10,34021,8483,729
8,684

18,400
3,058
6,923

3.22

2.79

2.70

3.04
138,014
23,37566,7602.64
135,695
35,97662,9082.53
61,527
12,887
18,475For more ﬁnancial details, please see P&G’s 2007
Annual Report:
www.pg.com/investors/annualreports.jhtml

This organizational structure accounts for why P&G does notprovide employee data, sales or proﬁts by individual countries.
Some countries may provide this data in reports other than
this one.

P&G ProﬁleFinancial Information

Major Acquisitions
During the course of the year, P&G had various minor businesspurchases and intangible asset acquisitions totaling $540
million, primarily in Beauty and Health Care.
Major Divestitures
Current year divestitures included the sale of Pert in North
America, Sure and several other minor non-strategic Beauty
brands with proceeds totaling $281 million.

Global Purchases
P&G is a global company. We produce brands in more than
140 plants in 40 countries around the world. This year, P&G
purchased more than $25 billion in materials and services tomanufacture and market our products. We employ locallyand purchase the majority of our raw materials within thoseregions where we manufacture our products. Our purchasing
professionals understand and participate in both global andlocal markets to acquire the materials and services to makeour products.

P&G products
delight
consumersaround theworld.

P&G 2007 Global Sustainability Report9

Shareholders
There were approximately 2,220,000 common stock
shareowners, including shareholders of record, participants in
the Shareholder Investment Program, participants in the P&G
stock ownership plans, and beneﬁcial owners with accounts atbanks and brokerage ﬁrms, as of June 30, 2007.
Contact:
Shareholder Services representatives are available
Monday - Friday, 9 - 4 EST at 1-800-742-6253(1-513-983-3034 outside the U.S.A. and Canada)
Write to:
The Procter & Gamble Company
Shareholder Services Department
P.O. Box 5572
Cincinnati, Ohio, U.S.A. 45201-5572
For more information:• Please visit www.pg.com/investors/sectionmain.jhtml• E-mail us at shareholders.im@pg.com• Call for ﬁnancial information at 1-800-764-7483(1-513-945-9990 outside the U.S.A. and Canada)P&G ProﬁleP&G’s Equity

P&G 2007 Global Sustainability Report

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P&G’s Equity

Our Purpose, Values and Principles guide everything we do, all over theworld. Our people bring them to life. Our Success Drivers deﬁne whatmakes our people succeed.

Our Purpose
We will provide branded products and services of superior
quality and value that improve the lives of the world’s
consumers, now and for generations to come.
As a result, consumers will reward us with leadershipsales, proﬁt and value creation, allowing our people, ourshareholders, and the communities in which we live and work
to prosper.

Integrity• We always try to do the right thing.
• We are honest and straightforward with each other.
• We operate within the letter and spirit of the law.
• We uphold the values and principles of P&G in every action
and decision.
• We are data-based and intellectually honest in
advocating proposals, including recognizing risks.

Our Values
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 and rewarding people
without regard to any difference unrelated to performance. We
act on the conviction that the men and women of Procter &Gamble will always be our most important asset.

Leadership• We are all leaders in our area of responsibility, with a deep
commitment to deliver leadership results.
• We have a clear vision of where we are going.
• We focus our resources to achieve leadership objectives
and strategies.
• We develop the capability to deliver our strategies and eliminate
organizational barriers.
Ownership• We accept personal accountability to meet the business needs,
improve our systems and help others improve their effectiveness.
• We all act like owners, treating the Company’s assets as our own
and behaving with the Company’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 the status quo.
• We have a compelling desire to improve and to win in
the marketplace.
Trust• We respect our P&G colleagues, customers and consumers,
and treat them as we want to be treated.
• We have confidence in each other’s capabilities and intentions.
• We believe that people work best when there is a foundationof trust.

P&G ProﬁleP&G’s Equity

Our Principles
These are the Principles and supporting behaviors, which ﬂow
from our Purpose and Values.
We Show Respect for All Individuals• We believe that all individuals can and want to contribute totheir fullest potential.
• We value differences.
• We inspire and enable people to achieve high expectations,standards and challenging goals.
• We are honest with people about their performance.
The Interests of the Company and the Individual
are Inseparable• We believe that doing what is right for the businesswith integrity will lead to mutual success for both theCompany and the individual. Our quest for mutual successties us together.
• We encourage stock ownership and ownership behavior.
We are Strategically Focused in Our Work• We operate against clearly articulated and aligned objectives
and strategies.
• We only do work and only ask for work that adds value tothe business.
• We simplify, standardize and streamline our current work
whenever possible.
Innovation is the Cornerstone of Our Success• We place great value on big, new consumer innovations.
• We challenge convention and reinvent the way we dobusiness to better win in the marketplace.
We are Externally Focused• We develop superior understanding of consumers andtheir needs.
• We create and deliver products, packaging and concepts
that build winning brand equities.
• We develop close, mutually productive relationships with ourcustomers 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 tocontinually develop themselves and others.
• We encourage and expect outstanding technical masteryand executional excellence.

P&G 2007 Global Sustainability Report

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We Seek to be the Best• We strive to be the best in all areas of strategic importanceto the Company.
• We benchmark our performance rigorously versus the very
best internally and externally.
• 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 the parties who
contribute to fulfilling our Corporate Purpose, including ourcustomers, suppliers, universities and governments.

Web

To read more on sustainable development guidelines
for business conduct based on P&G’s PVP, download
this brochure:www.pg.com/content/pdf/01_about_pg/01_about_
pg_homepage/about_pg_toolbar/download_report/
values_and_policies.pdf

THINKSAND ACTSD E C I S I V E LY

LEADS

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LEVERAGESMASTERYI N N O VAT E S
AND
REAPPLIESGROWSC A PA B I L I T Y

IN TOUCHEMBRACESCHANGEO P E R AT E S
WITHDISCIPLINE

Success Drivers
values that deﬁne how our
Success Drivers are the competencies• trust • ownership • leadership • passion for winning
integritysucceed
peoplein today’s business environment. They are thecharacteristics we look for in new employees, how we measureperformance in the Company, and the basis for our employeedevelopment and career systems.
P&G’s edge over competition – the advantage that’s hardest forcompetitors to duplicate – is P&G people.

P&G ProﬁleStructure and GovernanceP&G 2007 Global Sustainability Report

12

Structure and Governance

We have an organizational structure composed of three Global Business
Units (GBUs) and a Global Operations group. The Global Operations group consistsof the Market Development Organizations (MDOs) and Global Business Services (GBS).

Organizational Structure
Global Business Units
In the ﬁnancial year 2006-2007, our three GBUs are Beautyand Health, Household Care and Gillette GBU. For the nextyear, the GBUs will be structured as: Beauty, Health andWell-Being, Household Care.

Global Operations
The MDOs develop go-to-market plans at the local level,
leveraging their understanding of the local consumer andcustomer. MDOs are organized along seven geographic
regions. (See next page for map.)

The GBUs leverage their consumer understanding to develop
overall strategy for our brands. They identify common
consumer needs, develop new products and build our brands
through effective marketing innovations.

Global Business Services
GBS operates as the “back ofﬁce” for the GBU and MDO
organizations, providing world-class technology, processes
and standard data tools to better understand the businessand better serve consumers and customers. GBS personnel, or
highly efﬁcient and effective third-party partners, provide
these services.

The MDO is focused on winning the “ﬁrst moment of
truth” – when the consumer stands in front of the
shelf and chooses a product from among many
competitive offerings.

The GBU is focused on winning the “second momentof truth” – when the consumer uses the product andevaluates how well it meets his or her expectations.

P&G ProﬁleStructure and GovernanceP&G 2007 Global Sustainability Report

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The Three GBUs Operate in the Seven MDOs
Global Business Units (GBUs)• Business Strategy and Planning• Brand Innovation and Design• New Business Development• Full Profit Responsibility• Beauty and Health– Beauty– Health Care
• Household Care
– Fabric Care and Home Care
– Baby Care and Family Care
– Pet Health, Snacks and Coffee• Gillette GBU

Corporate Functions• Cutting-Edge Knowledge• Transfer Best Practices• Function Work Supporting
P&G Corporation

Global Business Services
Key Business Processes• Accounting• Info and Technology Services• Order Management• Employee Benefits & Payroll

Market Development Organizations (MDOs)• Market Strategy• Customer Development• External Relations• Recruiting

Asean, Australasia and India
Central & Eastern Europe, Middle East and Africa
Greater China
Latin America
North America
Northeast Asia
Western Europe

P&G ProﬁleStructure and GovernanceP&G 2007 Global Sustainability Report

Plant Locations
Plant Name

City

Country

GBU Owner

Org Category Owner

Aarschot (Gillette)
Akashi
AlbanyAlexandria
AmiensAnchieta
Andover (Gillette)
ApizacoAuburnAugusta
AuroraAvenelBangkok
Bangkok (Wella)
Barcelona (Gillette)
Barquisimeto
Beijing
Belleville
Berlin (Gillette)
Bhiwadi (Gillette)
Binh Duong
Blois
Borispol
Boston (Gillette)
Brockville
Budapest
Cabuyao
Cairo
Campochiaro
Cape Girardeau
Carlow (Gillette)
Casablanca
Cayey
ChengduChonanCincinnati
Cleveland (Gillette)
Coevorden
Cologne (Wella)
Crailsheim
DammamDong Guan (Gillette)
Dover
Dzerzhinsk (Wella)
Epping (Wella)
Escuintla
Euskirchen
Gattatico
Gebze
Goa
Green Bay
Greensboro
Gross-Gerau
GuatireHenderson
Huangpu
Hub
Huenfeld (Wella)
Hunt Valley
IbadanIbaraki (Wella)
Iowa City
Iowa City (Gillette)
JacksonJeddahJijonaKansas City Coffee
Kansas City F&HC
Kronberg (Gillette)
Kuantan
LaGrange (Gillette)
Lancaster (Gillette)
Leipsic
Lewisburg

AarschotAkashi
AlbanyPineville
AmiensSão Paulo
Andover
ApizacoAuburnAugusta
AuroraAvenelBangkokSamut Prakan
Esplugues de Llobregat
Barquisimeto
Beijing
Belleville
BerlinBhiwadiBinh Duong
Blois
Borispol
BostonBrockville
CsomorCabuyao
Cairo
Campochiaro
Cape Girardeau
Carlow
Casablanca
Cayey
ChengduCh’onanCincinnati
Cleveland
Coevorden
CologneCrailsheim
DammamDong Guan
Dover
Dzerzhinsk
EppingEscuintla
Euskirchen
Gattatico
Gebze
Goa
Green Bay
Greensboro
Gross-Gerau
Guatire, Miranda
Henderson
Guangzhou
Hub
Hünfeld
Cockeysville
IbadanIbarakiIowa City
Iowa City
JacksonJeddahJijonaKansas City
Kansas City
Kronberg
Kuantan
LaGrange
Lancaster
Leipsic
Lewisburg

BelgiumJapan
United States
United States
FranceBrazilUnited States
MexicoUnited States
United States
United States
United States
ThailandThailandSpain
Venezuela
China
CanadaGermany
India
Vietnam
FranceUkraineUnited States
CanadaHungary
Philippines
Egypt
Italy
United States
Ireland
MoroccoPuerto Rico
China
Korea
United States
United States
Netherlands
Germany
Germany
Saudi Arabia
China
United States
RussiaSouth Africa
GuatemalaGermany
Italy
TurkeyIndia
United States
United States
Germany
Venezuela
United States
China
Pakistan
Germany
United States
NigeriaJapan
United States
United States
United States
Saudi Arabia
Spain
United States
United States
Germany
Malaysia
United States
United States
United States
United States

Gillette
Baby Care
Family Care
Fabric & Home Care
Fabric & Home Care
Fabric & Home Care
Beauty Care
Family Care
Feminine Care
Fabric & Home Care
Health Care
Fabric & Home Care
Beauty Care
Beauty Care
Gillette
Fabric & Home Care
Fabric & Home Care
Feminine Care
Gillette
Gillette
Fabric & Home Care
Beauty Care
Feminine Care
Gillette
Fabric & Home Care
Feminine Care
Fabric & Home Care
Fabric & Home Care
Fabric & Home Care
Baby Care
Gillette
Fabric & Home Care
Beauty Care
Fabric & Home Care
Feminine Care
Fabric & Home Care
Gillette
Health Care
Beauty Care
Feminine Care
Fabric & Home Care
Gillette
Baby Care
Beauty Care
Beauty Care
Fabric & Home Care
Baby Care
Fabric & Home Care
Fabric & Home Care
Feminine Care
Family Care
Health Care
Health Care
Baby Care
Health Care
Beauty Care
Beauty Care
Beauty Care
Beauty Care
Fabric & Home Care
Beauty Care
Beauty Care
Health Care
Snacks & Coffee
Baby Care
Baby Care
Snacks & Coffee
Fabric & Home Care
Gillette
Fabric & Home Care
Gillette
Gillette
Health Care
Health Care

DuracellBaby Care
Family Care
Fabric Care
Home Care
Fabric Care
Personal Beauty Care
Family Care
Feminine Care
Fabric Care
Pet CareHome Care
Hair Care
Hair Care
Braun
Fabric Care
Fabric Care
Feminine Care
Grooming & Shave Care
Grooming & Shave Care
Fabric Care
Hair Care
Feminine Care
Grooming & Shave Care
Fabric Care
Feminine Care
Fabric Care
Fabric Care
Fabric Care
Baby Care
Braun
Fabric Care
Personal Beauty Care
Fabric Care
Feminine Care
Fabric Care
DuracellPet Care
Personal Beauty Care
Feminine Care
Fabric Care
DuracellBaby Care
Hair Care
Hair Care
Fabric Care
Baby Care
Home Care
Fabric Care
Feminine Care
Family Care
Oral Care
Oral Care
Baby Care
Pet CareHair Care
Hair Care
Hair Care
Personal Beauty Care
Fabric Care
Hair Care
Hair Care
Personal Health Care
SnacksBaby Care
Baby Care
CoffeeHome Care
Braun
Fabric Care
DuracellDuracellPet Care
Pet Care14

P&G ProﬁleStructure and GovernanceP&G 2007 Global Sustainability Report

Plant Locations… continued
Plant Name
City

Country

GBU Owner

Org Category Owner

Lima
Lodz (Gillette)
LondonLongjumeau
Louveira
Lucca
Manati
Manaus (Gillette)
Manchester
Mandideep
MariscalaMarktheidenfeld (Gillette)
MataroMateriales
MechelenMedellin
Mehoopany
Mequinenza
Mexico City (Gillette)
Minhang (Gillette)
Mohammedia
Montornes
Naucalli (Gillette)
Naucalpan
NenaghNeuss
New Orleans
Newbridge (Gillette)
North Chicago (Gillette)
Novomoskovsk
Ordzhonikidze
Orleans
OxnardPescaraPhoenix
Pilar
Poissy (Wella)Pomezia
Porto
RakonaReading (Gillette)
Rothenkirchen (Wella)
Russellville
Sacramento
Santiago
Sarreguemines (Wella)
Seaton Delaval
Shanghai (Gillette)
Sherman
Shiga
Somersby (Wella)
St. Louis
St. Petersburg (Gillette)
Stamford
TakasakiTalisman
Targowek
Tepeji
Tianjin
Tianjin (Wella)
Timisoara
VallejoVilla Mercedes
Wallduern (Gillette)
Weiterstadt
Witzenhausen
Worms
Wrexham (Gillette)
XiqingUnited States
PolandUnited Kingdom
FranceBrazilItaly
Puerto Rico
BrazilUnited Kingdom
India
MexicoGermany
Spain
Peru
Belgium
Colombia
United States
Spain
MexicoChina
MoroccoSpain
MexicoMexicoIrelandGermany
United States
IrelandUnited States
RussiaUkraineFranceUnited States
Italy
United States
Argentina
France
Italy
Portugal
Czech Republic
United Kingdom
Germany
United States
United States
Chile
FranceUnited Kingdom
China
United States
Japan
Australia
United States
RussiaUnited StatesJapan
MexicoPolandMexicoChina
China
Romania
MexicoArgentina
Germany
Germany
Germany
Germany
United Kingdom
China

Fabric & Home Care
Gillette
Fabric & Home Care
Health Care
Feminine Care
Family Care
Health Care
Gillette
Family Care
Fabric & Home Care
Beauty Care
Gillette
Fabric & Home Care
Fabric & Home Care
Fabric & Home Care
Fabric & Home Care
Family Care
Baby Care
Gillette
Gillette
Fabric & Home Care
Feminine Care
Gillette
Health Care
Beauty Care
Family Care
Snacks & Coffee
Health Care
Beauty Care
Fabric & Home Care
Fabric & Home Care
Family Care
Family Care
Feminine Care
Health Care
Fabric & Home Care
Beauty Care
Fabric & Home Care
Fabric & Home Care
Fabric & Home Care
Beauty Care
Beauty Care
Health Care
Fabric & Home Care
Baby Care
Beauty Care
Beauty Care
Gillette
Snacks & Coffee
Beauty Care
Beauty Care
Fabric & Home Care
Gillette
Beauty Care
Fabric & Home Care
Beauty Care
Baby Care
Baby Care
Beauty Care
Beauty Care
Fabric & Home Care
Fabric & Home Care
Baby Care
Gillette
Health Care
Family Care
Fabric & Home Care
Gillette
Beauty Care

Fabric Care
Grooming & Shave Care
Fabric Care
Pharmaceuticals
Feminine Care
Family Care
Pharmaceuticals
Grooming & Shave Care
Family Care
Fabric Care
Hair Care
Braun
Fabric Care
Fabric Care
Fabric Care
Fabric Care
Family Care
Baby Care
Braun
Braun
Fabric Care
Feminine Care
Grooming & Shave Care
Personal Health Care
Personal Beauty Care
Family Care
CoffeePersonal Health Care
Personal Beauty Care
Fabric Care
Fabric Care
Family Care
Family Care
Feminine Care
Personal Health Care
Fabric Care
Personal Beauty Care
Fabric Care
Fabric Care
Fabric Care
Personal Beauty Care
Hair Care
Pet Care
Fabric Care
Baby Care
Hair Care
Personal Beauty Care
Grooming & Shave Care
CoffeePersonal Beauty Care
Hair Care
Home Care
Grooming & Shave Care
Hair Care
Fabric Care
Personal Beauty Care
Baby Care
Baby Care
Personal Beauty Care
Personal Beauty Care
Fabric Care
Fabric Care
Baby Care
Braun
Pharmaceuticals
Family Care
Home Care
DuracellHair Care

Note: Data as of June 30, 2007

Lima
Lodz
LondonLongjumeau
Louveira
Lucca
Manati
ManausManchester
BhopalApaseo El GrandeMarktheidenfeld
Mataró
Lima
MechelenMedellin
Mehoopany
Mequinenza
Naucalpan
Minhang
Mohammedia
Montornès del Vallès
Naucalpan
Mexico City
NenaghNeuss
New Orleans
Newbridge
North Chicago
Novomoskovsk
OrdzhonikidzeSaint Cyr En Val
OxnardPescaraPhoenix
Pilar
PoissyRomeGuifões
Rakovnik
Reading
Rothenkirchen
Russellville
Sacramento
Santiago
Sarreguemines
Whitley Bay
Shanghai
Sherman
Shiga
Somersby
St. Louis
St. Petersburg
Stamford
Takasaki
Mexico City
Warsaw
Tepeji
Tianjin
Tianjin
Timisoara
Mexico City
Villa Mercedes
Walldürn
Weiterstadt
Witzenhausen
Worms
Wrexham
Tianjin15

P&G ProﬁleStructure and Governance

Manufacturing Outsourcing
P&G, including Gillette, has more than 140 manufacturing
facilities in 40 countries. These facilities handle the majority of
P&G’s production.
To ensure our products are affordable, our manufacturing
facilities must provide the best value for the Company. We
conduct regular reviews to ensure our facilities are highly
competitive, and this includes benchmarking versus third-party
manufacturers.
When it makes sense for the business and is the mostcompetitive solution, we use contract manufacturers. For
example, sometimes we use them when entering a newmarket, before we determine whether we’ll invest in building
our own facility there, or when we are introducing a new

P&G 2007 Global Sustainability Report

16

product, so we can determine production needs prior toinvesting in new capacity at a P&G facility. Sometimes we use
third-party manufacturers on a longer-term, ongoing basis
because it is the most cost-effective solution for the business.
The percent of P&G production supplied by contract
manufacturers varies according to the needs of the businessand the ability of P&G facilities to compete and win production
based on providing the best value. Currently, we rely on thirdparty manufacturers for about 10 to 15 percent of our total
manufacturing volume.

P&G ProﬁleStructure and GovernanceP&G 2007 Global Sustainability Report

17

Governance
The objective of our governance structure is to maintaincorporate governance principles, policies and practices that
support management and Board of Directors accountability.
These are in the best interest of the Company and ourshareholders, and they are consistent with the Company’s
Purpose, Values and Principles. We believe that good
governance practices contribute to better results forshareholders. Everything we do is done with our commitment
to “doing the right thing” in mind.

Corporate Governance and Management’s Responsibility
P&G has a strong history of doing what’s right. Our employees
embrace our Purpose, Values and Principles. If you analyze
what has made our Company successful over the years,
you may focus on our brands, our marketing strategies, ourorganization design, our ability to innovate. But if you reallywant to get at what drives our Company’s success, the place
to look is our people. Our people are deeply committed to our
Purpose, Values and Principles. It is this commitment to doing
what’s right that unites us.
This commitment to doing what’s right is embodied in ourﬁnancial reporting. High-quality ﬁnancial reporting is our
responsibility – one we execute with integrity and within boththe letter and spirit of the law.
High-quality ﬁnancial reporting is characterized by accuracy,
objectivity and transparency. Management is responsible
for maintaining an effective 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 they
have issued an unqualiﬁed opinion.
Our commitment to providing timely, accurate andunderstandable information to investors encompasses:
Communicating Expectations to Employees
Every employee – from senior management on down – is trainedon the Company’s Worldwide Business Conduct Manual, whichsets forth the Company’s commitment to conduct its businessaffairs with high ethical standards. Every employee is held
personally accountable for compliance and is provided several
means of reporting any concerns about violations.

Web

The Worldwide Business Conduct Manual is available
on our website at www.pg.com/company

Maintaining a Strong Internal Control Environment
Our system of internal controls includes written policies andprocedures, segregation of duties, and the careful selection
and development of employees. The system is designed toprovide reasonable assurance that transactions are executed
as authorized and appropriately recorded, that assets are
safeguarded, and that accounting records are sufﬁciently
reliable to permit the preparation of ﬁnancial statements
conforming in all material respects with accounting principles
generally accepted in the United States. We monitor theseinternal controls through control self-assessments by business
unit management. In addition to performing ﬁnancial andcompliance audits around the world, including unannounced
audits, our Global Internal Audit organization provides
training and continuously improves internal control processes.
Appropriate actions are taken by management to correct any
identiﬁed control deﬁciencies.
Executing Financial Stewardship
We maintain speciﬁc programs and activities to ensurethat employees understand their ﬁduciary responsibilities
to shareholders. This ongoing effort encompasses ﬁnancial
discipline in our strategic and daily business decisions andbrings particular focus to maintaining accurate ﬁnancial
reporting and effective controls through process improvement,
skill development and oversight.
Exerting Rigorous Oversight of the BusinessWe continuously review our business results and strategic
choices. Our Global Leadership Council is actively involved– from understanding strategies to reviewing key initiatives,
ﬁnancial performance and control assessments. The intent
is to ensure we remain objective, identify potential issues,
continuously challenge each other and ensure recognition andrewards are appropriately aligned with results.
Engaging Our Disclosure Committee
We maintain disclosure controls and procedures designed toensure that information required to be disclosed is recorded,
continued on next page

P&G ProﬁleStructure and GovernanceP&G 2007 Global Sustainability Report

18

Governancecontinued from previous page

processed, summarized and reported accurately and in timely
fashion. Our Disclosure Committee is a group of senior-level
executives responsible for evaluating disclosure implicationsof signiﬁcant business activities and events. The Committee
reports its ﬁndings to the CEO and CFO, providing an effective
process to evaluate our external disclosure obligations.
Encouraging Strong and Effective Corporate Governancefrom Our Board of Directors
We have an active, capable and diligent Board that meets therequired standards for independence, and we welcome theBoard’s oversight. Our Audit Committee comprises independentﬁnancial directors with signiﬁcant knowledge and experience.
We review signiﬁcant accounting policies, ﬁnancial reportingand internal control matters with them and encourage their
independent discussions with external auditors.

Web

Our corporate governance guidelines, independence
guidelines and charters for all Board committees areavailable at our website atwww.pg.com/company/our_commitment/corp_gov

Governance Structure
We believe that good governance practices contribute tobetter results for shareholders. Our objective is to maintaincorporate governance principles, policies and practices that
support management and Board of Directors accountability.
These are in the best interest of the Company and ourshareholders, 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 and theCompany’s Code of Regulations and Bylaws. In exercising its
ﬁduciary duties, the Board of Directors represents and acts onbehalf of the shareholders. Although the Board of Directors
does not have responsibility for day-to-day management of theCompany, it stays informed about the business and provides
guidance to 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 has several committees to facilitate its oversight of theCompany. These include Audit, Compensation & Leadership
Development, and Governance & Public Responsibility. The
responsibilities of the Governance & Public Responsibility
Committee include oversight of organization diversity,

sustainable development, community and government relations,product quality assurance and corporate reputation. The Boardof Directors and its committees operate under our Corporate
Governance Guidelines and Charters. Additionally, the Board
has adopted guidelines for determining the independence of its
members. As of June 30, 2007, approximately 79 percent of ourdirectors qualiﬁed as being independent.
The Board has approved a code of conduct, outlined in ourWorldwide Business Conduct Manual. This code applies toall directors, ofﬁcers and employees and is designed to help
ensure compliance with all applicable laws and Company
policies, including those related to sustainable development.
Shareholders may communicate with the Board of Directors
and submit shareholder proposals as described in the
Company’s proxy statement.

Executive Compensation
Executive compensation is based on principles that have served
the Company well and enabled it to increase shareholder value:• Pay competitively.
• Pay for performance.
• Design compensation programs that support the business.
These principles have helped the Company develop andretain extraordinary executive talent. P&G develops executives
from within, an achievement few other major corporations
have matched.
A substantial portion of compensation is composed ofvariable, at-risk incentives, the majority based on the
Company’s long-term success. We benchmark the Company’s
pay structure annually and also review its business andﬁnancial performance.
Additionally, we expect executives to uphold the fundamental
principles in the Company’s Statement of Purpose, Values andPrinciples, plus the Worldwide Business Conduct Manual, theSustainability Report, and the Environmental Quality Policy.
These principles include integrity, maximizing the developmentof each individual, developing a diverse organization, andcontinually improving the environmental quality of theCompany’s products and operations. In upholding theseprinciples, executives not only contribute to their own
success but also help ensure the prosperity of P&G’s business,
employees, shareholders and the communities in which theCompany operates.

P&G ProﬁleStructure and Governance

P&G’s Political Involvement is an Important Means of
Building and Protecting Our Business
Guided by our Purpose, Values & Principles, P&G participatesin the political process to help shape public policy that has
a direct impact on the Company. This engagement is an
important means of building and protecting our global
business and ensures that the interests of our employees,
consumers and shareholders are fairly represented at all levelsof government around the world.
Lobbying Activity
P&G’s Global Government Relations team (P&G GGR)
represents the Company’s point of view in Washington, D.C.,
in U.S. state capitals and in key country capitals around theworld. Working with the businesses, P&G GGR focuses onlegislative and public policy issues that impact the Company’s
bottom line. Where permitted by law, P&G:
• engages and educates policy makers and key stakeholders
on issues concerning the Company’s long-term businessinterests;• facilitates the exchange of information between key decision
makers and public policy organizations in the United States
and abroad;• leads Company actions on policy matters both unilaterally
and in industry coalitions.
U.S. Corporate Political Activity
P&G engages in the political process by providing ﬁnancial
support to state ballot initiatives and issue advocacy campaigns
that have a direct impact on the business. P&G’s involvementin these campaigns is overseen by a multi-functional teamthat makes recommendations to the Global External Relations
Ofﬁcer, President, Vice Chairs, Chief Operating Ofﬁcer, andChairman & CEO as appropriate. As with all other aspectsof our political involvement, our participation in such efforts
is guided by our Purpose, Values and Principles, and by
our business strategies. In 2006, P&G gave $184,000 incontributions to state ballot initiatives and other issue advocacy
campaigns that had a direct impact on the business.
P&G Political Action Committee
The P&G Political Action Committee (P&G PAC) is a voluntary,nonpartisan political action committee. Registered with the
U.S. Federal Election Commission (FEC) and appropriate stateofﬁces, the PAC allows P&G employees to pool personal,
voluntary ﬁnancial contributions to support candidates at thefederal, state and local level, who support issues important tothe business and the quality of life in the communities in which
we live and work.

P&G 2007 Global Sustainability Report

19

P&G PAC operations are transparent and compliant with allapplicable laws. The PAC is governed by a set of bylaws andsupervised by a diverse board of Company senior managers,
U.S. Government Relations personnel, and Legal counsel.
Support of candidates is based on their support of P&G issues
and sustained constituent relationships. The PAC generally
does not contribute to Presidential candidates; industry,
association or leadership PACs; or multiple candidates runningin the same race. In 2006, the P&G PAC contributed $260,880
to candidates running for ofﬁce. The average contribution percandidate was $1,335.
Additionally, P&G operates a separate state PAC in
Massachusetts. In 2006, the P&G/Gillette state PAC contributed$4,300 to Massachusetts state and local candidates. The
average contribution per candidate was $330.

Web

P&G PAC activity is available on the FEC andstate elections websites. A listing of all 2006 PAC
contributions is available at www.pgpac.com.

P&G 2007 Global Sustainability Report

20

Designed
to Grow...
Sustainably.

Strategies andGoals for 2012
Policies, Management Systems andPerformance
Strategy 1 – Improve through Products
Strategy 2 – Improve through Production
Strategy 3 – Improve through Responsibility
Strategy 4 – Improve through Employees
Strategy 5 – Improve through Stakeholders

Strategies and Goals
Policies, Management Systems and Performance

P&G 2007 Global Sustainability Report

21

Policies, Management Systems and Performance

The Company isconcerned with how
results are achieved.

Policies
While P&G competes hard to achieve leadership and businesssuccess, the Company is concerned not only with results,
but also with how those results are achieved. We will nevercondone or tolerate efforts or activities to achieve results
through illegal or unethical dealings, anywhere in the world.
Management Systems
P&G’s Management Systems ensure that the Company’s
policies are implemented in a consistent manner throughout
the world. These Management Systems align with theCompany’s policies and promote a regular ﬂow of informationthat helps the Company better manage its progress onelements of sustainable development.
Performance
P&G measures operational performance in order to drive
continuous improvement. A Company-wide system ofmeasuring 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 forgenerations to come.
Our extensive consumer research related to our brands also
helps us identify ways we can best address sustainability.

Acquisitions
Acquisitions, mainly Wella and Gillette, have been includedin the metrics presented herein. The only thing that isdifferent for acquisitions is the expectations of performancewith respect to meeting all of P&G standards. We allow a
six-year glide path to meet the audit performance score of 8.0
out of a ten-point scale. A mid-point expectation is 6.5 within
three years. Our experience has been that the acquisitions
exceed those expectations.
Process for Data Collection
P&G’s data collection systems have been in place for many
years. They are designed to be simple enough so that thepeople closest to the work, regardless of location, can use thetools. This simplicity enables the Company to collect data andupdate systems annually at a relatively low cost. Each business
unit is responsible for accuracy and consistency of its data.
All data is reported on a global basis. In order to achieve
consistency and to ensure a common understanding
throughout the organization, employees are trained in how toreport and document data. Our standard is to use metric units
and English as our business language, backed where necessary
with local translations.
To ensure the standard collection of data, the Company has
the following work process in place:• Key terms deﬁned.
• The data to be collected are identiﬁed.
• Flow sheets are agreed upon regarding who collects data andon what systems.
• Technically sound methods are used by facilities to estimate
data and validate year-to-year results.
• Personnel are trained on the work process, as appropriate.

Strategies and Goals
Strategy 1

Strategy 1

P&G 2007 Global Sustainability Report

Improve through Products

1

Strategy
Delight the consumer
with sustainable
innovations that improvethe environmental proﬁleof our products.

Goal• Develop and market at least$20 billion in cumulative salesof “sustainable innovation
products,” which are productswith a signiﬁcantly reduced(>10%) environmental
footprint versus previous oralternative products.

22

Strategies and Goals
Strategy 1

P&G 2007 Global Sustainability Report

23

Strategy 1

The very nature of producing and using products causes P&G andconsumers to use resources and to generate wastes and emissions.
P&G is committed to reducing or preventing this whenever possible.

P&G’s philosophy is grounded in a belief that we should
be a leader in our industry in implementing our global
environmental program. To do this, we concentrate on
environmental innovation and accountability for results. We
believe our accomplishments illustrate this commitment. The
goal is our commitment to transparency in the process overthe decade.
For example, P&G was ﬁrst to bring innovations such asconcentrated products, reﬁll packages and recycled plastic
bottles to our industry. Since 1990 our focus on pollution
prevention has resulted in a 60-percent reduction in waste
and in air and water emissions per unit of production from ourmanufacturing plants.
We recognize that environmental progress is a never-ending
journey of continuous effort and improvement. By focusing
on improving the lives of consumers through innovativetechnologies that work better and more efﬁciently, we believe
we can continue to sustain both the growth of our businessand the health of the environment.

Environmental Quality Policy
We will provide products and services of superior quality andvalue that improve the lives of the world’s consumers. As part ofthis, P&G continually strives to improve the environmental qualityof its products, packaging and operations around the world.
To carry out its Environmental Quality Policy, P&G:
• Ensures our products, packaging and operations are safe forour employees, consumers and the environment.
• Reduces or prevents the environmental impact of our
products and packaging in their design, manufacture,
distribution, use and disposal whenever possible. We take aleading role in developing innovative, practical solutions toenvironmental issues related to our products, packaging andprocesses. We support the sustainable use of resources andactively encourage reuse, recycling and composting. We shareexperiences and expertise and offer assistance to others who
may contribute to progress in achieving environmental goals.
• Meets or exceeds the requirements of all environmental
laws and regulations. We use environmentally soundpractices, even in the absence of governmental standards.
We cooperate with governments in analyzing environmental
continued on next pageStrategies and Goals
Strategy 1

P&G 2007 Global Sustainability Report

24

Environmental Quality Policy
continued from previous pageissues and developing cost-effective, scientiﬁcally based
solutions and standards.
• Continually assesses our environmental technology andprograms and monitors progress toward environmental
goals. We develop and use state-of-the-art science andproduct life cycle assessment, from raw materials throughdisposal, to assess environmental quality.
• Provides our consumers, customers, employees,
communities, public interest groups and others with relevant
and appropriate factual information about the environmental
quality of P&G products, packaging and operations. We
seek to establish and nurture open, honest and timely
communications and strive to be responsive to concerns.
• Ensures every employee understands and is responsible
and accountable for incorporating environmental quality
considerations in daily business activities. We encourage,
recognize and reward individual and team leadership efforts
to improve environmental quality. We also encourage
employees to reﬂect their commitment to environmental
quality outside of work.
• Has operating policies, programs and resources in place toimplement our Environmental Quality Policy.

P&G’s Commitment to Product Safety,
Chemicals Management and Sustainability
Household consumer products use a variety of chemical
ingredients to provide beneﬁts to society, 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, that their use will
not adversely affect human health or the environment.
Throughout its history, P&G has believed that the safety ofour products is a prerequisite for responsible business. Our
co-founder, James Gamble, stated in the mid-1800s that “ifyou cannot make pure goods and full weight, go to somethingelse that is honest, even if it is breaking stone.” Today, thisphilosophy is reﬂected in our Statement of Purpose: “We will
provide branded products and services of superior quality andvalue that improve the lives of the world’s consumers, now
and for generations to come.” Safety is an intrinsic part of our
products’ quality and value.
Our approach is based on the scientiﬁc assessment andmanagement of risk – the likelihood that people or theenvironment will be exposed to harmful amounts of a
substance. Risk assessment is based on two factors:
1. how “toxic” or “hazardous” a chemical is and2. how it is used, speciﬁcally the extent of exposure to humans
or the environment.

In recent years, some stakeholders have expressed concern
about using risk as the basis for product safety. These concerns
have been driven by several issues, including:• Questions about whether the hazards of existing chemicals
have been sufﬁciently studied and whether chemical
exposures can be adequately understood.
• Frustration with the slow pace of developing publicly
available risk assessments.
• New scientiﬁc ﬁndings that have not been previously known
or evaluated.
As a result, some believe that it might be better to basedecisions on a chemical’s hazards alone. This has been coupledwith calls for the far-reaching use of the “precautionary
principle,” whereby substances that are classiﬁed as“hazardous” would be broadly restricted, with little further
evaluation. We recognize the attraction of such a “black
and white” approach. However, we believe that it could
cause chemicals that are being safely used to be unjustiﬁably
removed from the market, potentially depriving societyof innovative and beneﬁcial technologies. Furthermore,experience has shown that even chemicals that could beconsidered “non-hazardous” (e.g., soybean oil or evenwater) can cause harm under certain circumstances, while“hazardous” chemicals can be safely used (e.g., ethanol).
We recognize that continuing questions about the safety ofchemicals mean that industry must take a more collaborative
continued on next pageStrategies and Goals
Strategy 1

P&G 2007 Global Sustainability Report

25

P&G’s Commitment to Product Safety,
Chemicals Management and Sustainability
continued from previous pageand open approach. Thus, we have initiated a variety ofindustry partnerships, including: the collaborative assessmentof laundry and cleaning product ingredients in Europe(Human and Environmental Risk Assessment – HERA
(www.heraproject.com); evaluations of “High Production
Volume Chemicals” in the United States, and with theOrganization for Economic Cooperation and Development;
assessments of ﬂavors, fragrances and colorants by Europeanand U.S. cosmetics products associations; work in Canada to
implement renewed chemicals legislation; the promotion ofrisk assessment via the U.S. Alliance for Chemical Awareness(www.chemicalawareness.com) and the American ChemistryCouncil; development of a targeted risk assessment approachin Europe, via the European Center for Ecotoxicology and
Toxicology of Chemicals, an industry-sponsored researchorganization (www.ecetoc.org).
In addition, we are actively promoting the responsible
production and use of chemical products, and better
information sharing with the public. For example, we areworking with the European soap and detergent industry
association (A.I.S.E.) on formulation improvements, as wellas providing consumer guidance on how to use detergentsproperly (www.washright.com). We launched and then
expanded a P&G Internet site (www.scienceinthebox.com) tohelp inform consumers and stakeholders about the science andsafety behind our European cleaning products. Very high public
interest in this site led to a similar site covering the science andsafety of skin and hair care products (www.pgbeautyscience.com)
and another site covering P&G’s approaches to product safety
and views on a variety of chemical management and science
policy issues (www.pgperspectives.com). For more on thiswork, see Science in-the-box on the next page.
From a policy standpoint, we continue to believe thatchemicals management programs should be based on:
1. Efﬁcient risk-based priority-setting processes that use
hazard data and basic exposure information together to
identify issues of potential concern, followed by practicalrisk evaluations that analyze chemicals in a tiered fashion toresolve such issues.
2. Risk management decision making that combines
information on a chemical’s risks, beneﬁts and costs withan understanding of societal concerns; the risks, beneﬁts
and costs of alternatives; and the use of appropriate
precautionary measures.
3. Communications that provide meaningful and relevant
safety information to stakeholders, such that they can makeknowledgeable 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 Research& Development, Product Safety and Regulatory Affairs,
Manufacturing, External Relations and management. Our efforts
go beyond safety and risk to include product lifecycle issues suchas energy and resources use and waste management.

Collectively, we believe these activities
and policies enable continued progress
toward sustainability and enable us toprovide safe, effective products that
improve lives.

Strategies and Goals
Strategy 1

P&G 2007 Global Sustainability Report26

Human and Environmental Safety of Our Products
Product Safety & Regulatory Affairs (PS&RA) is responsible for
ensuring that products and packages are safe for consumers,
safe for the environment and in compliance with laws andregulations where they are sold.
PS&RA also addresses other environmental aspects ofproducts and packages, such as their compatibility with
waste management systems, natural resource use or issues ofperceived safety. This organization is also responsible for thedevelopment, validation and adoption of alternatives to animal
testing and ensures that any claims the Company makes
about the safety or environmental proﬁle of its products are
scientiﬁcally sound.
Risk assessment is the process the Company uses to evaluate
the safety of its products and ingredients. In this process,chemical hazard and exposure information are related in a
way that describes the likelihood that a chemical will adversely
affect biological systems. The PS&RA organizations in eachbusiness unit work closely with product development teamsin the development, selection and formulation of productingredients and mixtures with acceptable risk proﬁles, as well
as satisfying other important business and consumer needs.
A key part of PS&RA is the Central Product Safety (CPS)
organization. CPS has direct responsibility for ensuring thatour products are safe for consumers and the environment. Its
primary role is to advance the science of understanding andevaluating the human and environmental safety and impact ofour products. It is helped in this process by an External Advisory
Board consisting of several distinguished academic scientists.
CPS’ work involves conducting basic studies in toxicology andbiodegradation, together with an understanding of exposures, toultimately complete human and environmental safety assessments
used to make business decisions for products going to market
as well as guide in the development of new technologies. CPS
is also 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 and responsible use of chemicals.

Web

For further details on the science and safety 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)
P&G Perspectives (www.pgperspectives.com)

Science in-the-box Brings
Added Value to Consumers
Science in-the-box is a scientiﬁc information portal that tells
consumers about the science and innovation that make P&G’s
fabric and home care products work, as well as about thesafety and sustainability of those products. It also provides
access to our library of scientiﬁc publications and productsafety data sheets. Since its introduction, some half a million
people have gotten information from www.scienceinthebox.
com. Their feedback indicates that consumers want to learn
more about the products they buy. On our side, we see that
presenting this information to consumers helps build their trustin our brands.

Web

Science in-the-box has been a tremendous successand has served as a model for two more websites:
Beauty started a website that helps consumers
understand the science behind the Beauty brands;
it’s www.pgbeautyscience.com. And the Company
created www.pgperspectives.com to present ourviews on public policy issues.

Strategies and Goals
Strategy 1

Approach to Animal Welfare and Alternatives
P&G products are used in homes around the world 3 billion
times a day, and we are committed to safeguarding the healthof our many consumers.
Sometimes, to ensure materials are safe and effective, wemust conduct research involving animals. This is a last resort.
We consider such research only after every other reasonableoption has been exhausted. The vast majority of our tests do
not use animals. Wherever possible, we use computer models,
synthetic materials, published scientiﬁc studies and comments

P&G 2007 Global Sustainability Reportfrom consumers about products they use. P&G is well-known
for leadership in developing alternatives to animal tests,
investing more than $220 million and helping to develop morethan 50 alternative methods.
We approach our work with respect, openness andresponsibility by using animals as a last resort, working withanimal welfare organizations and ensuring high standardsof care. We have invested more than $10 million in the past
three years to help advance standards of animal care andwelfare. We collaborate with governments and academia topromote the acceptance of alternatives. We actively shareour discoveries so that others can beneﬁt from them. Newsof our advances has been shared in more than 300 scientiﬁcpublications. We seek input from the world’s leading experts tocontinuously improve our approach.

Web

We approach ourwork with respect,
openness andresponsibility.

27

For details of our policy and practices please go to:
http://www.pg.com/science/animal_alt.jhtml

On this website you can also learn about:• Ongoing work to advance our animal welfare and animalalternatives programs (in our regular Forward Focus
newsletter).
• P&G’s participation in the 5th World Congress on Alternatives& Animal Use in the Life Sciences (2005), a leading global
scientiﬁc forum on reﬁning, reducing and replacing the useof animals in research.
• The joint declaration by P&G and the Humane Society of
the United States committing the two organizations to a
strategic partnership that aims at the elimination of animal
use for consumer product safety evaluation.
• P&G’s commitment to the European Partnership for
Alternative Approaches (EPAA), which aims to accelerate therate at which alternatives are agreed upon, validated and put
into practice.
• P&G’s support of the European Animal Welfare andAlternatives Awards offered by EUROTOX and the Humane
Society International as well as the North American Awards
offered by The Humane Society of the United States.

Web

For more technical articles regarding animal welfare,please go to:
http://www.pgperspectives.com/en_UK/general/
research-with-animals_en.html

Strategies and Goals
Strategy 1

P&G 2007 Global Sustainability Report28• Continuous improvement in forestry practices.
• Compliance with legislation.
• Social development principles.

Forest Resources Policy
Though P&G does not own or manage forests, we are a majorpurchaser of wood pulp and believe we have a responsibility
to ensure the sustainability of the world’s forest resources.
Consistent with this view, P&G has had a long-term policy whichapplies to how we manage our purchasing and utilization ofwood pulp. As the science, knowledge and veriﬁcation systems
related to sustainable forest management evolve, we have andwill continue to revise this policy accordingly.
P&G purchases wood-derived pulp from suppliers that:• Ensure the safety of forestry and manufacturing operations
for employees and the environment.
• Document that the ﬁber is from legally harvested wood andthat other legal requirements are met.
• Practice principles of sustainable forest management in theirown operations and in sourcing of wood.
• Do not obtain the ﬁber from sites designated forconservation or judged to have unique environmental orcultural value.
• Reﬂect our social values and support of universal
human rights through work with local governments andcommunities to improve the educational, cultural, economic
and social well-being of those communities.
We ensure compliance with this policy through site visits,
comprehensive surveys and research, required documentationand independent third-party certiﬁcation of sustainable forest
management practices.
P&G requires all our wood pulp suppliers to independently
certify their forestry operations for sustainable forest
management. In addition, P&G requires suppliers to provide anauditable assurance that ﬁber from sources not directly owned
and managed by them is obtained via legal means and thatharvest is conducted via sustainable practices. P&G believes
that independent certiﬁcation can be an effective means fora pulp supplier to verify its sustainable forest management
practices. To this end, the certiﬁcation systems our suppliers
select must be consistent with the following generally accepted
criteria for sustainable forestry management:• A commitment to forest regeneration and reforestation.
• Protection of soil quality, riparian zones and water quality.
• Protection of ecologically and culturally unique forest areas.
• Maintenance and conservation of biological diversity.
• Stakeholder consultation and public reporting.

P&G is committed to strategies that reduce demand on theworld’s forest resources and will continue to:• Focus on source reduction or use of less ﬁber throughdevelopment of innovative technologies that provide
maximum product performance using minimal ﬁber.
• Evaluate the use of non-forest-derived sources of ﬁber,
recognizing that alternatives must also meet principles ofsustainable management.
• Use recovered ﬁber in our products when it can be done
without having a negative impact on product performance,
manufacturing efﬁciency, resource and energy usage andwaste generation.
Procter & Gamble bought a total of 1.7 million ADMT (airdried metric tonnes) of pulp in 2006-2007 for use in our
tissue/towel products, diapers, adult incontinence products
and feminine hygiene products. The pulp was sourced fromthe following regions:
United States
CanadaBrazilWestern Europe (Spain, France, Germany)
Scandinavia
Indonesia*
RussiaOther Baltic Countries

26%
31%
29%
5%
4%
4%
< 1%
<1%

* From plantations; high conservation value assessments done to protect biodiversity

All of our pulp suppliers have certiﬁed their forestry operations
for sustainable forest management. The certiﬁcation systems
used are as follows:
SFI
CERFLOR
FSC
PEFC
LEI
CSA

50%
29%
8%
7%
4%
2%

Strategies and Goals
Strategy 1

P&G 2007 Global Sustainability Report

29

Economic Development
Innovation is a P&G cornerstone. More than $1.8 billion isinvested annually in research and development – the largest
amount among consumer product companies worldwide. We
have more than 36,000 patents worldwide, and we average
more than one new patent per day.
These intellectual assets are of tremendous value to P&G. But
some are not being fully realized; we invent more than we cancommercialize. Through our External Business Developmentgroup, we continue to identify non-strategic proprietary
technologies which, when developed to their full potential,
can yield sustainable revenue sources and bring important
technologies to the market.
P&G invites collaboration. Our External Business Developmentgroup manages over 800 active contracts with othercompanies and institutions. This includes a wide variety of deal
structures – licensing, sale, technology swap, joint venturesand more. P&G remains the partner of choice in working withothers to improve the lives of the world’s consumers.

Every Drop Counts
Ariel Spain’s Every Drop Counts campaign received one of themost prestigious PR awards in the world. The Gold Awardfor the Best Corporate Social Responsibility Campaign waspresented at the pan-European SABRE (Superior Achievementin Branding and Reputation) awards.
Water consumption is a concern in Spain, especially in thesummer heat. Ariel’s Every Drop Counts campaign gave
consumers tips on saving water in the home. For instance,
putting a full load into the washer can save hundreds of litersof water in a household over the course of the year.

Cool Clean Detergents Save Energy
In 2007, P&G launched Dash Cool Clean in Italy andAriel Cool Clean in the UK, along with campaigns to help
consumers change their energy consumption habits. The Cool
Clean detergents encourage consumers to wash at lower
temperatures and save energy, which still gives them brilliantly
clean clothes.
In Italy, Dash launched under the name Impeccabile a Freddo(Impeccable in Cold). Dash studied the impact of this campaign
in almost 400 participating Italian households. Using Dash
Cool Clean did result in consumers’ changing their habits.
They reduced washing temperature, experiencing a signiﬁcantenergy saving – 10 percent on average, up to a maximumof 55 percent. But there is still reluctance to reduce washingtemperature. This conﬁrms the critical role of an effective
campaign to educate consumers about the beneﬁts ofreducing washing temperature. For perspective, the energysaving potential of washing at low temperatures in Italy
could be as much as 1.5 billion kWh, equal to the energy
consumption of households in Florence.
Dash and P&G Italy also formed an alliance with Enel*,
Italy’s biggest energy company, to distribute 3.7 million lowconsumption light bulbs and 600,000 water-saving faucets to
Italian consumers. Using these can help households save up to
287 million kWh, equal to 197,000 tons of CO2 emissions.
In the UK, the Cool Clean campaign was titled Ariel Turn to
30 and targeted the average UK consumer who washes at
40 C. Until recently, cleaning performance was the key barrier
to clicking down washing temperature. Ariel Cool Clean’s
performance reassures consumers that reducing temperature
to 30 C will result in brilliant cleaning. By washing at a lower
temperature, consumers can save 41 percent of the energy
used in the wash cycle.
Ariel UK formed a partnership with the Energy Savings Trust,
one of the UK’s leading organizations promoting energy
savings. The Trust helped validate Ariel’s energy savings ﬁguresand endorsed the Turn to 30 campaign.
* Enel is Italy’s largest power company and Europe’s third-largest listed utility,
established in 18 countries around the world. Enel produces and sells electricity
and gas in Europe and North and Latin America (www.enel.com).

Strategies and Goals
Strategy 1

P&G 2007 Global Sustainability Report

30

PUR Gets to Democratic Republicof the Congo
Through the Children’s Safe Drinking Water program, PUR is
now being sold in the equatorial Democratic Republic of theCongo (DRC), site of “the worst ‘forgotten humanitarian crisis’in the world,” according to Greg Allgood, director of P&G’s
PUR program.
“Bear in mind that the mortality rate in sub-Saharan Africa isalready the worst in the world,” he says. “Yet, on average,
there are 1,000 more people dying every day in the DRC thanin the rest of sub-Saharan Africa. I think the DRC is one of theplaces where we can save the most lives with PUR.”
Diarrhea is one of the top causes of mortality, with children
under 5 accounting for nearly half the deaths. Preventing
diarrhea is difﬁcult, with bottled water costing 40 times asmuch as PUR.
The Children’s Safe Drinking Water program fosteredenthusiasm for PUR in its usual way – by demonstrating
how quickly, easily and inexpensively PUR turns dirty water
into clean water. Mothers at the ﬁrst Congo demonstration
understood PUR immediately and started buying packets froma local businesswoman authorized to sell them for 10 cents.

Braun Supports ‘Green Grooming’
This year, Braun’s entire line of men’s electric shavers became
the world’s ﬁrst shaver brand to receive the Energy Star
qualiﬁcation for its battery chargers. This followed testing by
the Energy Star program.
Braun shaving systems feature Smart Plugs that use 64 percent
less energy than standard shavers, resulting in real beneﬁts forthe environment. For example, it translates into keeping
5,583 metric tonnes of CO2 out of the atmosphere annually,
based on the total number of Braun shavers sold in the
United States. This is equivalent to removing 1,073 cars fromthe road, planting 1,526 acres of forest or lighting 5,861
homes for a year.
The U.S. Environmental Protection Agency (EPA) created EnergyStar labeling in 1992 as a way to clearly identify energyefﬁcient products. Energy Star-qualiﬁed products must adhere
to strict guidelines created by the EPA and the U.S Departmentof Energy.

Alliance Eupharazie tried PUR-cleaned water at thedemonstration and was ﬁrst in line to buy it for her family.

Strategies and Goals
Strategy 2Strategy 2

P&G 2007 Global Sustainability Report

Improve through Production

2

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

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

31

Strategies and Goals
Strategy 2

P&G 2007 Global Sustainability Report

Strategy 2

P&G ensures that our operations are safe for our employees, consumers
and the environment. We reduce or prevent the environmental impact of productmanufacturing whenever possible.

Manufacturing Materials Flows
2006-2007
As the diagram illustrates, P&G’s use of material resources ishighly efﬁcient. The vast majority of materials are converted to
products, and the output of the manufacturing waste (which islargely non-hazardous) is low.
Energy 79.2 million gigajoules

95.72%
Finished Product

Raw Materials& Packaging

Materials for Recycling/Reuse
2.36%

Non-Hazardous
Solid Waste 1.54%

Hazardous
Solid Waste 0.21%

Air Emissions 0.07%

Water Emissions 0.09%

32Strategies and Goals
Strategy 2

33

P&G 2007 Global Sustainability Report

Resource & Waste Summary
For the first time, we are reporting environmental statistics for the Technical Centers. Technical Centers are primarily sites that havesmall-scale pilot operations as well as Research & Development laboratories. They have been added in for all three years. Data also
includes both Wella and Gillette sites.
Totals (indexed to production)2007 Global Business Unit Detail* (absolute units x 1000)

2007

2006

2005

BH

HC

G

TC

21,742
79

20,66065

18,80271

2,810
018,212
79

720
0

0
0

44.7
55%

43.2
59%

47.1
57%

234
54%

670
56%

50
60%

18
20%

16.1
2.2
1.0
0.77

14.8
1.0
1.3
0.77

16.2
1.4
1.8
0.91

97.6
4.5
5.5
0.8

226.4
39.9
11.5
15.5

14.0
1.6
4.1
0.4

12.2
2.0
0.4
0.1

3.64
0.14
4.2
0.00008

3.78
0.14
4.4
0.00010

4.13
0.17
5.0
0.00009

9,205
272
9,252
0.210

62,5892,491
71,028
1.061

4,908
135
1,687
0.396

2,489
72
9,263
0.058

PRODUCTION (thousand metric tonnes)

Product Shipped
Raw Materials from Recycled Sources
WASTE (tonnes/1,000 tonne of production)

Generated Waste
Percent Recycled / Reused Waste
DISPOSED WASTE (tonnes/1,000 tonnes of production)

Solid Waste
Non-Hazardous
Hazardous
Effluents (excluding water)
Air Emissions**
OTHER

Energy Consumption (gigajoules/tonne)
Greenhouse Gas Emissions**(tonne/tonne)
Water Consumption (cubic meters/tonne)
SARA Releases***(tonne/tonne)

Beauty and Health (BH) includes segments Beauty and Health Care.
Household Care (HC) includes segments Fabric Care and Home Care, Baby Care and Family Care, Pet Care, Snacks and Coffee.
Gillette GBU (G) includes segments Blades and Razors, Duracell and Braun.
Technical Centers (TC) includes each of the research centers that support the business units.
** Air emissions include particulates, SO2, NOx, CO and VOC, whereas greenhouse gas emissions include CO2 from fuel combustion sources.
*** Releases defined in the U.S. Superfund Amendments and Reauthorization Act (SARA) by the U.S. Environmental Protection Agency.
1 metric tonne = 1,000 kg = 2,205 lbs.
Product Shipped numbers come from P&G manufacturing sites only, does not include production from contract manufacturing.
*President Olusegun
Obasanjo (left)commissions P&G’s
detergent plant in
Ibadan in 2006.

P&G Helps Build a Modern Nigeria
P&G was listed among “companies and individuals building
a modern Nigeria” by one of Nigeria’s leading national
newspapers, This Day.
This recognition was given to P&G and 23 other companies/
individuals from various sectors. The recognition covered
the eight-year tenure of President Olusegun Obasanjo, wholeft ofﬁce in May 2007. During his presidency, P&G greatly

increased its investments in Nigeria by expanding its Always
and Pampers lines and building a state-of-the-art detergent
plant at its Ibadan site.
P&G Nigeria is one of just three companies in the manufacturingsector proﬁled. P&G Country Manager for West Africa, Stanislav
Vecera, was featured on the front page of the newspaper.
P&G Nigeria was also named one of the top 25 corporate
brands of 2006 by one of Nigeria’s leading business dailies,
Financial Standard, and was presented an award for excellenceby City People magazine in 2007. This is one of the top threeprestigious awards in Nigeria.
In operation since 1992, P&G West Africa, to which
P&G Nigeria belongs, is the world’s fastest-growing P&G
organization. Its Ibadan site produces Pampers, Always, Vicks
throat drops and Ariel and Bonux detergents.

Strategies and Goals
Strategy 2

P&G 2007 Global Sustainability Report

Energy Consumption
The Energy Consumption graph (in gigajoules, GJ) shows the
addition of Technical Centers for all three years. Gillette wasadded for the last two years. Even with those additions, theabsolute values have stayed nearly the same: 78 million GJ, 78
million GJ and 79 million GJ in 2005, 2006 and 2007, respectively.
In the second graph, energy is broken out by type. The primary
type of energy source is fuel, mainly natural gas.
The energy eco-efﬁciency* graph shows an improvement of
11 index points since last year. This is a result of production
increase and maintaining ﬂat energy consumption. Energy
efﬁciency is a key measure at our sites; it is tracked, analyzed
and improved on a continuous basis.
ENERGY CONSUMPTION(by GBU, 106 GJ)
78

05

78

06

79

07

Beauty and HealthHousehold Care
Gillette
Technical Centers

ENERGY CONSUMPTION(by type, 106 GJ)
78

78

79

05

06

07

Fuel
Electricity
Purchased SteamENERGY ECO-EFFICIENCY(global production units / gigajoule,indexed vs. 2001-2002)

150

161

123

34

As part of our ongoing efforts to minimize losses, theCompany does a loss analysis at the plant level. Losses aredeﬁned as anything not shipped out the door as product,
including energy used. When energy is identiﬁed as a major
loss at a plant, it receives intense focus for loss reduction.
*Eco-efﬁciency data used throughout this report is based on the framework
developed by the World Business Council for Sustainable Development.

Asia Beauty Achieves
Energy Reduction
Five Beauty plants in Asia have pooled resources to make aregional engineering team systematically reducing energy
consumption. Although production volume has grownsigniﬁcantly in all ﬁve plants, the energy saving program inﬁscal year 2006-2007 led to a reduction of about 9.5 million
kg of CO2 emission and also helped lessen operating expenseby more than US$1.2 million.
The team has proven that small efforts executed consistently
go a long way toward making a big impact. The team has fourmain focus areas:• Employee awareness, at both the operating and leadershiplevel. This lets people see losses they normally would not see
and has led to a signiﬁcantly higher level of participation.
• Simple changes that require almost no investment but yieldsigniﬁcant returns:– Behavior changes such as switching off lighting and air
conditioning when not in use– Appropriate process and ventilation temperature setting,and ﬁxing leakages– Improvements such as lighting controls, energy-efﬁcient
lighting ﬁxtures and utilizing cool ambient air as a
substitute for mechanically derived air conditioning• Optimizing operations to get peak performance fromequipment as well as operating teams. Some improvements
being made are related to operational planning, use ofvariable speed drives to match energy consumption with theload and using cooling water instead of chilled water during
winter.
• Introducing new technology (co-generation using naturalgas, solar heating, use of water instead of refrigerants
for cooling, etc.). This last step will bring even bigger
environmental beneﬁts by shifting to clean and renewablesources such as sun and natural gas as well as the use of
equipment that consumes less energy.
The ﬁve Beauty plants are located near Bangkok, Thailand; in
Huang Pu, Xiqing and Tianjin, China; and in Shiga, Japan.

05

06

07

Strategies and Goals
Strategy 2

P&G 2007 Global Sustainability Report

Water Consumption
Water eco-efﬁciency has improved by 14 index points while
the actual water use has stayed approximately the same as lastyear. The Household Care business unit is our largest wateruser. In particular, the Family Care business has the highest
need for water to make their products. Their decrease in water
use has more than offset the addition of the Gillette GBU.
WATER CONSUMPTION

35

Greenhouse Gas
Every company in every sector of the economy has a role incontrolling greenhouse gas emissions. While P&G is not anenergy-intensive company, we are stepping up to do ourpart. P&G is committed to energy-efﬁcient programs, and weparticipate in voluntary programs.
GREENHOUSE GAS EMISSIONS(by GBU, thousand metric tonnes)(by GBU, million cubic meters)
90

92

91

05

06

07

Beauty and HealthHousehold Care
Gillette
Technical Centers

3,111

2,937 2,970

05

06

07

Beauty and HealthHousehold Care
Gillette
Technical Centers

GREENHOUSE GAS EMISSIONS ECO-EFFICIENCYWATER CONSUMPTION ECO-EFFICIENCY(global production units / cubic meters,
indexed vs. 2001-2002)
159(global production units per metric tonne of CO2,
indexed vs. 2001-2002)
164

173

177

126

127

05
05

06

06

07

07

Greenhouse gas eco-efﬁciency improved more than 13 index
points – a major improvement. Absolute CO2 emissions went
up slightly from 2.94 million tonnes to 2.97 million tonnes
while product production increased signiﬁcantly. The main
reason for this year’s improvement was multiple energy savings
projects across all the businesses.

Strategies and Goals
Strategy 2

Climate Change
Procter & Gamble believes that there is growing scientiﬁc
evidence linking greenhouse gas (GHG) emissions and global
climate change.
As a global citizen, P&G is concerned about the potentiallynegative consequences of climate change and believes prudent
and cost-effective action by governments, industry and citizens
to reduce emissions to the atmosphere are justiﬁed.
We will focus our efforts in two main areas:• Reduce the intensity of greenhouse gas emissions from ourown operations through– continued energy efﬁciency measures throughout ourfacilities.
– continuing to transition fuels sources toward cleaner
alternatives.
– setting goals to drive continued improvement in our GHG
emissions.
• Help consumers to reduce their own GHG emissions throughthe use of our products via– product and packaging innovations that enable more
efﬁcient consumer product use and energy consumption.
– consumer education.
We will continue to publicly disclose our greenhouse gas
and energy usage data through the Company’s Sustainability
Report and the Carbon Disclosure Project.

P&G 2007 Global Sustainability Report

36

Climate R.E.S.O.L.V.E.
P&G supports the goals of Climate R.E.S.O.L.V.E. (Responsible
Environmental Steps, Opportunities to Lead by Voluntary
Efforts). Even with the slight increase in emissions, we have
met the 2012 goal, but this will not stop our resolve tocontinue reducing greenhouse gas emissions.
Our actual emissions in 2007 are less than the emissions in2002 – 2,970,000 vs. a base of 3,215,031. This was during
a time when global sales increased from $40 billion to $77
billion. The most recent acquisitions – Wella and Gillette – arein the most recent years but not in the base year.

Strategies and Goals
Strategy 2

P&G 2007 Global Sustainability Report

Total Waste for Disposal
Total waste for disposal is our key management measure tokeep waste under control. Total waste disposed comprises
the sum of non-hazardous and hazardous solid waste, plus
the strength of efﬂuent measured as COD (chemical oxygen
demand) and air emissions. It excludes recycling or reused
waste. It also excludes CO2 emissions. This measurement has
been in effect since 1990.

37

Waste Returned to Process or Market
Even though the revenue received increased from $34
million to $36 million, the total percentage of waste recycleddecreased slightly to 55 percent.
WASTE RECYCLED OR REUSED(percent of waste)
57

59

05

06

55

WASTE DISPOSED(by type of waste, thousands metric tonnes)
436
365

05

369

06

07

Solid Waste Non-Hazardous
Solid Waste Hazardous
Effluents
Air Emissions

WASTE DISPOSED ECO-EFFICIENCY(global production units per metric tonne of waste,indexed vs. 2001-2002)
169
140

Non-Hazardous Solid Waste Disposed
Overall, the non-hazardous solid waste disposed to landﬁll
has increased this year, resulting in a slight eight-point decline
in eco-efﬁciency. P&G continues to ﬁnd innovative recycling
methods to change the trend to be more efﬁcient.
NON-HAZARDOUS SOLID WASTE ECO-EFFICIENCY(global production units per metric tonne,
indexed vs. 2001-2002)

06

173

165

06

07

147

157

05
05

07

07

Waste disposed eco-efﬁciency has a slight decline of 12index points. This is the ﬁrst time the eco-efﬁciency for waste
disposed has declined since we started tracking this measure.
Part of the increase in waste production was due to a one-time
removal and landﬁlling of contaminated soil. Overall ecoefﬁciency is still improving 22 points over a two-year span.

Hazardous Solid Waste Disposed
Hazardous waste disposal has declined its eco-efﬁciency
79 points. This was due to a one-time event involving
disposing contaminated soil to a licensed landﬁll, as previously
mentioned in the Total Waste for Disposal section.
HAZARDOUS SOLID WASTE ECO-EFFICIENCY(global production units per metric tonne,
indexed vs. 2001-2002)
152
108
73

05

06

07

Hazardous wastes are deﬁned by regional policies and local
rules, so they vary from region to region. To further reduce ourrisks, the number of approved hazardous waste disposal sitesthat all U.S. plants use has remained limited. Similar programs
have been started in many regions of the world.

Strategies and Goals
Strategy 2

P&G 2007 Global Sustainability Report

Air Emissions
The total amount of air emissions released has decreased,
resulting in improved eco-efﬁciency. Each site monitors totalsuspended particulates, volatile organic compounds (VOCs),
carbon monoxide (CO), nitrogen oxides (NOx) and sulfur
oxides (SOx).

Efﬂuents to Water
Wastewater COD (chemical oxygen demand) has decreased
5,650 tonnes over last year, resulting in an improved ecoefﬁciency of 49 points.

WASTEWATER COD ECO-EFFICIENCYAIR EMISSIONS ECO-EFFICIENCY(global production units per metric tonneof COD, indexed vs. 2001-2002)(global production units per metric tonne,
indexed vs. 2001-2002)
186 194
144

178
129
94

05
05

06

07

06

07

38

Strategies and Goals
Strategy 2

P&G 2007 Global Sustainability Report

SARA 313 Releases (United States only)
U.S. P&G plants report annually on the release of 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 to as section 313)
is to report publicly the releases and transfers of hazardous
chemicals as deﬁned by the agency.
The amount of SARA 313 releases has decreased over last year
due to a decrease from Household Care.
SARA 313 RELEASES(global total metric tonnes released or transferred)

39

Business Continuity Plans are audited regularly, and a report ofthe Business Continuity Program’s status is made each January
to the Audit Committee.

Compliance with Laws and Regulations
There are numerous health, safety and environmental
requirements worldwide. Plants are subject to emission limits
and operating requirements embodied in these statutes,
regulations, laws and permits. It is P&G’s intent to comply withboth the letter and the spirit of statutes, regulations, laws andpermit requirements. Identiﬁed compliance issues are treatedseriously, and all non-compliance matters are resolved as
expeditiously as possible.

2,146
1,726

1,722

05

06

07

Environmental Liabilities
P&G is subject to various lawsuits and claims with respect tomatters such as governmental regulations, income taxes andother actions arising out of the normal course of business. We
are also subject to contingencies pursuant to environmental
laws and regulations that in the future may require us totake action to correct the effects on the environment ofprior manufacturing and waste disposal practices. Accrued
environmental liabilities were not material.
While considerable uncertainty exists, in the opinion ofmanagement and our counsel, the ultimate resolution of
the various lawsuits and claims will not materially affect our
ﬁnancial condition, cash ﬂows or results of operations.

Business Continuity
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 leaders thendevelop contingency plans to minimize business interruption
if a disabling event should occur. Crisis Management teamstructures are deﬁned to manage business recovery using the
pre-deﬁned contingency plans. Tests are conducted annually
to ensure the contingency plans are sufﬁcient and up-to-date.

Summary of Fines and Violations
The table lists global data on environmental, transportation andworker health and safety violations over the past three years.
Considerable progress has been made in the last three years
on reducing the number and the amount of fines.
Number
Fines

2007

2006

2005

37
$106,257

48$127,50080$147,400

Summary of Fines and Violations
A breakdown of 2007 Notices of Violation (NOVs) and U.S.
Occupational Safety & Health Act (OSHA) interventions follows:
Water-Based
Air-Based
Solid Waste-Based
Paperwork
Transportation-Based
Other
Worker Safety (for U.S. OSHA, the number is 3)
Total

Number

Fines

20
10
2
1
2
1
1
37

$40,4272,030
0062,60001,200$106,257

Strategies and Goals
Strategy 2

The Future of Distribution?
A P&G global engineering project is focusing on designingand constructing sustainable manufacturing and distribution
centers and transporting ﬁnished product in a sustainable way.
A critical pilot this year was development of the “Big Box”
Distribution Center in Amiens, France. This is the biggest
conventional distribution center in Western Europe, about
600,000 square feet, able to store 70,000 pallets of
P&G products.
The Amiens distribution center incorporates the best thinking
on sustainable design, from within P&G and outside.

Examples of sustainable solutions adopted at the distribution
center are:• solar panels for hot water supply and photovoltaic cells forenergy production• windmill turbine to produce up to 10 percent of the energy
needed on site
• natural light via translucent roof panels (energy savings up to
30 percent)• energy-efﬁcient ﬂuorescent lighting, daylight dimming andmotion detection (energy savings up to 70 percent)• forklift trucks with AC regenerative motors (the battery is
recharged when the forklift’s mast comes down), yielding
energy savings up to 30 percent)• recyclable wall and roof cladding panels• carpet with 80-percent recyclable yarn
• wood from sustainable tree plantations• local vegetation
Another example is use of “low embodied energy material,”
designed to reduce a building’s energy footprint. The Amiens
Distribution Center uses wood frames (glulaminated, from ecocertiﬁed forests) for the roof trusses, docks, doors and otherstructures instead of concrete or steel frames.

P&G 2007 Global Sustainability Report40Strategies and Goals
Strategy 3

Strategy 3

P&G 2007 Global Sustainability Report

Improve through Responsibility

3Strategy
Improve lives throughP&G’s social responsibility
programs.

Goal• Enable 250 million children
to Live, Learn and Thrive.
• Prevent 80 million days of
disease and save 10,000
lives by delivering 2 billion
liters of clean water in ourChildren’s Safe Drinking
Water program.

41

Strategies and Goals
Strategy 3

P&G 2007 Global Sustainability Report

42

Strategy 3

P&G’s Purpose is to improve the lives of the world’s consumers, now andfor generations to come. We do this through the causes we support as well as
through our products. We maximize our impact by focusing on a corporate cause where
the need is great and there is a clear ﬁt with P&G’s strengths.

This year alone, P&G
and the P&G Fundcontributed morethan $125 million
to support ourcommunities – improving
life for more than
50 million children
around the world.

Strategies and Goals
Strategy 3

P&G 2007 Global Sustainability Report

43

P&G Live, Learn and Thrive™
P&G’s Purpose is to improve the everyday lives of the world’s
consumers. We fulﬁll this Purpose in many ways: through P&G
brands, ﬁrst and foremost, but also through our support ofhumanitarian, educational and social cause efforts.
We have long made a difference in the causes we support, but
our work had been fragmented across dozens of individual
efforts throughout the world. We recognize we can makean even greater, more enduring impact by focusing on aconsistent cause where the need is great and there is a clear ﬁt
with P&G strengths, brands and current programs.
With that in mind, P&G has committed to focus on thedevelopment of children in need, ages 0-13, through ourglobal cause, P&G Live, Learn and Thrive™. P&G Live, Learn
and Thrive enables us to meet the needs of children in our
diverse communities around the world.

Live
Help children inneed live byensuring they
have a healthy
start.

Learn

Provide children
in need withplaces, tools andprograms thatenhance theirability to learn.

ThriveGive children inneed access toprograms thatdevelop the life
skills they needto thrive.

Focusing on this area is critically important. Millions of children
around the world live in heartbreaking conditions, throughno fault of their own. By strengthening current programs,
introducing new ones and focusing P&G expertise andtechnologies on this critical need, we can improve the future
for these children.
P&G Live, Learn and Thrive comes to life through dozens ofprograms around the world including our signature Children’s
Safe Drinking Water program.

P&G has improved life for tens of millions of children throughLive, Learn and Thrive:
Live: Safe drinking water, oral care, personal hygiene
education have been provided to get children off to ahealthy start.
Learn: Schools have been built and supplies provided tochildren lacking access to education.
Thrive: Skills for life are being built, including self-esteem andindependent-living skills for disabled children.
P&G has been recognized for local and global Live, Learn andThrive programs:• 2006 National Inventor of the Year and 2007 Grainger
Challenge Bronze Award for our Children’s Safe Drinking
Water program that is combating the fact that 4,000 children
die every day from diseases caused by unsafe drinking water.
• Donor of the Year by America’s Second Harvest in the UnitedStates, where two-thirds of our product donations reachchildren in need.
• Most Innovative Charity Program in France by the French
Advertisers’ Union, recognizing our SOS Enfance Mal-Logée
program that provides safe housing for children.
• Best Corporate Citizen in Morocco by the American Chamberof Commerce-Morocco behind our Ramadan des Coeurs
program that provides homeless children with places to live
and learn.
• Named Model Company by the Deputy Prime Minister of
Malaysia for our Open Minds program that provides Live,
Learn and Thrive programming for disabled children.
• In Poland, our program that provides access to
extracurricular education and sport facilities as an alternative
to lingering on the streets was named Best in Class by
United Way Poland as an example of a multi-stakeholder
community program.

Web

Learn more. Visit
www.pglivelearnthrive.com

Strategies and Goals
Strategy 3

P&G 2007 Global Sustainability Report

44

P&G Live, Learn and Thrive Programs
P&G is committed to improving life for children in needaround the world through our global cause Live, Learn andThrive. Here are some representative samples of Live, Learn
and Thrive programs.

Argentina – Redinfa/Moms of the Heart

China – Hope Schools

Redinfa aims to strengthen the ability of low-income families
to help their children age 6 and under. The program empowers
mothers to secure their children’s rights, making the mothers
more conscious of the importance of early literacy and mobilizingthem to ensure their children have access at the earliest ages. The
partner in this effort is UNICEF.

This has been a very successful program in China for the past
10 years. P&G has built 100 schools across China, in rural areas,for over 60,000 children per year who otherwise would nothave access to a place to learn. P&G is the largest multi-national
corporate sponsor of the Hope Schools program in China,
working with the China Youth Development Foundation.

Australia – Brighter Smiles

China and Pakistan – Safeguard Asia Health &Our support of this program helps 2,000 disadvantaged
children, ages 0 to 13, on two levels: 1) Expansion of an early
assessment tool to identify the needs of and right programsfor children coming into the welfare system, and 2) Providing
safe accommodation for homeless children and their families,
ensuring the children are enrolled in schools and receive the rightnutrition, support and guidance.

Hygiene ProgramThis project builds upon research that Safeguard conducted inPakistan and China with the U.S. Centers for Disease Control
and Prevention. It shows that the simple act of washing handswith soap can dramatically reduce the incidence of diarrhea andrespiratory disease, reducing absence from school. The programprovides low-income regions with detailed, high-quality, handwashing and hygiene education materials, a supply of bar soap,
health monitoring, and childhood development assessment(cognitive, creative, other skills) that would otherwise not be
available to the children.

Baltics – One Friend Is Worth More Than a Million Dollars
This is a comprehensive Live, Learn and Thrive program
beneﬁting children living in orphanages, ages 4 to 18. Employee
volunteerism is very high – 100 percent.

Belgium – Project LLTWorking with United Fund for Belgium, this program supports
the development of a community center where workshops andan after-school tutoring program are conducted.

Canada – After-School Program Braeburn

China – Save Motherhood & Caring for Children
This program is aimed at helping babies in rural areas get off toa healthy start. The program is being administered in conjunction
with the Pampers brand and UNICEF. It applies P&G’s expertisein baby care by providing materials and training to new moms at
1,000 rural hospitals.

Neighborhood PlaceThis is a United Way after-school program for high-risk students
age 7 to 13 living in public housing. This program helps children
learn and thrive by building their academic skills and providing
enrichment programs (arts, athletics, etc.) that build self-esteem.

France – SOS Enfance Mal-Logée

Canada – Learn Today... Be a Leader Tomorrow

This program is a partnership between P&G’s Children’s Safe
Drinking Water program and P&G East Africa, working with alocal NGO to convert rural communities in Kenya to sustainablesafe water habits using P&G’s PUR Puriﬁer of Water. Our support
expands this program to cover 46 additional schools. Throughschool programs in rural Kenya, children are provided with PUR,
free of charge, for three months.

This is a partnership with Junior Achievement of Central Ontario,
where children are taught about the importance of staying inschool. The program reaches 1,500 students who are at risk for
dropping out of school.

Canada – United Way

This program supports families with children ages 0 through 13
living in sub-standard housing, creating an environment wherechildren can live and thrive.

Kenya – Safe Water for Kenyan Children

P&G supports Canada’s United Way programs for children
in need relative to health, hygiene, nutrition, literacy andchild development.

continued on next pageStrategies and Goals
Strategy 3

P&G 2007 Global Sustainability Report

45

Live, Learn and Thrive Programs
continued from previous page

Kenya – Supporting Girl-Child Education

Pakistan – Keeping the HOPE Alive

This program helps keep girls in school by educating them on the
menstrual cycle and providing product to meet their needs. The
norm for girls during their monthly periods is to stay home andmiss school, meaning they are out of school for nearly 25 percentof the year.

P&G funds schools and trains the teachers so children can learn.
In addition, employees lead ﬁeld trips and train children incomputer and presentation skills.

Korea – Dreaming Together for the FutureThis program supports disabled children via scholarships
and vocational education/training to help them achieve
independence. The program partner is a United Way
International afﬁliate, Community Chest of Korea.

Malaysia – Open Minds
This campaign started in 1999 with a focus on “Education forSpecial Children.” Past activities have included a campaignraising over US$520,000 in 2005. The program also includes
partnerships with the Malaysian government, public and media,
the creation of a charity album and concert with EMI, a royalcharity gala dinner and strong employee fundraising. Focus
for 2007-2008 is working with the government to develop a
blueprint for an education program for special children.

Peru – Manchay Vive
This is a United Way International partnership with facilities
in Lima, Peru, that provide preventive medical treatment andeducation to children attending schools in a low-income area.

Philippines – Gawad Kalinga
P&G Philippines has partnered with the NGO Gawad Kalinga
to help ﬁght poverty among children in Baseco, Tondo. The
program has three pillars: Live (building a P&G Village of 118
homes), Learn (developing a P&G Safeguard Learning Center),and Thrive (task force of P&G volunteers).

Philippines – Tide Embrace
This is a comprehensive program beneﬁting children living in
extreme poverty, from birth to age 18. Our support helps take atrisk children off the streets and provides homes and communities
where they can live, learn and thrive.

Mexico – Guardianes de la Educación

Puerto Rico – Project Learn

In conjunction with local government, this program remodels
schools to accommodate children with special needs. The
emphasis is on the “learn” component of P&G’s corporate cause.

This is an after-school tutoring program for high-risk students
ages 4 to 18 living in public housing. The partner is the local Boys
& Girls Club.

Morocco – Operation Smile NGO

Saudi Arabia – P&G Success Camp

Through this program, an international NGO of doctors
provides free operations to repair facial deformities for
hundreds of children. During the critical days when children
go through the surgery, P&G employees register families andexplain the various procedures.

P&G grant money is being spent on developing training modules
and tools, training and materials for a program to build life skills
and self-esteem among approximately 10,000 orphans anddisabled and poor children in cities throughout Saudi Arabia.
Partnering with UNICEF, we have the opportunity to help thesechildren learn through educational programs and thrive throughthe self-esteem building training sessions.

Morocco – Ramadan des Coeurs
This program reaches out to street/homeless children ages 3 to
15. It touches all aspects of Live, Learn and Thrive – providing
shelter and hygiene, offering a place to learn and helping thesechildren develop a sense of empowerment/independence.

Nigeria – Orphanage Support
This program provides a regular supply of Pampers diapers andbasic nutrition products to the Red Cross orphanage in Lagos,
Nigeria. It also engages P&G employees as volunteers, such as inrenovating/painting the residences and a day care center.

Singapore – Beyond Borders
This program helps needy children who live “beyond Singapore’sborders,” in neighboring countries such as Cambodia, Laos,
Myanmar, Sri Lanka and Bangladesh. Employees get involved
via child sponsorship, helping to raise money via donating old
clothes and paper, or actively participating in volunteer work.
Partnership is with the NGO World Vision.

continued on next pageStrategies and Goals
Strategy 3

P&G 2007 Global Sustainability Report

46

Live, Learn and Thrive Programs
continued from previous page

USA – America’s Second Harvest / Kids Cafes

USA – Operation Outreach

P&G’s preferred partner for product donations is America’s
Second Harvest, a national network of Free Stores/Food Banksand host to 1,600 Kids Cafes. It is the nation’s largest
charitable hunger relief organization and most expansive
child feeding program.

The goals of Operation Outreach are to 1) help level the learningﬁeld for at-risk youth by giving them tools often unavailable
to economically disadvantaged students, 2) improve social
competency by teaching life skills, 3) enhance the academic
experience and 4) help develop marketable skills so young people
can move toward adulthood with compassion.

USA – brandSAVER – P&G & UNICEF – Enabling Kids to
Help Kids in Need
This program allows children in North America to support
children in developing countries through UNICEF. This effort
touches on all Live, Learn and Thrive components.

USA – Cincinnati – Happen, Inc.

USA – Buy PUR to Help Save Lives
This is a U.S. PUR brand program that provides direct donationsof PUR to the Children’s Safe Drinking Water Kenya program,working toward a goal of providing a year’s worth of clean, safe
drinking water for children.

Happen, Inc. is an award-winning nonproﬁt arts organization,founded for children and adults to share creative experiences thatstrengthen family structure. Its vision is to create an environment
which enables participants to look back on these shared creative
experiences as life-changing. P&G supports Happen’s work withhomeless children throughout greater Cincinnati.

USA – Special Olympics

USA – Cincinnati – Project Connect
Project Connect, part of the Cincinnati Public Schools, isthe only program in Greater Cincinnati exclusively serving
homeless children. Project Connect provides advocacy pairedwith specialized educational services and lifestyle enrichment
opportunities for children who have neither a voice nor a choicein being homeless.

Across America, P&G has supported United Way organizations
in our headquarters, plant and Customer Business Development
communities for years. Several United Way agencies ﬁt withthe mission of Live, Learn and Thrive, such as Boys & Girls
Clubs, Success by 6, Every Child Succeeds, America’s Promise.
Other health, hygiene, nutrition, literacy and child development
programs exist under the United Way banner as well.

USA – Cincinnati – Reading for Life

Venezuela – Alternative Schooling or Education

Reading for Life is a literacy program reaching at-risk children(English- and Spanish-speaking) with books and programs that
prepare them for kindergarten and beyond.

This is a United Way program that reintroduces youth to theeducational system. In Venezuela, 44 percent of teenagers fallout of the education system due to family or economic issues.
This program reaches children ages 11 to 18 to bring themback to school so they can lead productive lives beyond theirteenage years.

USA – Cincinnati – St. Joseph HomeP&G supports St. Joseph Home of Cincinnati, home to 47
children and adults with severe/profound mental and physicaldisabilities. It provides 24-hour nursing and personal care forresidents as well as short-term guests.

USA – Crest Healthy Smiles
This P&G program reaches tens of millions of children from 7 to18, providing dental services, care and product, helping them get
off to a healthy start.

This is a program that builds skills for life (conﬁdence, selfesteem, teamwork, etc.) for children and adults withintellectual disabilities. P&G has a very long relationship with
Special Olympics.

USA – United Way

Vietnam – Clean Water for Schools
This program focuses on providing clean water and sanitation
for Vietnamese schoolchildren. Working with UNICEF and theMinistry of Health, P&G Vietnam has helped deliver 250,000
PUR packets. Plans for 2007-2008 are to expand P&G Vietnam’s
Live, Learn and Thrive program as well as set up a Children’s Safe
Drinking Water program.

Strategies and Goals
Strategy 3

P&G 2007 Global Sustainability Report47

Blend-a-med Campaigns for
SOS Children’s Villages in Brazil

Live, Learn and Thrive Volunteering
Brings Extra Rewards

Germany’s Blend-a-med toothpaste brand is partnering withSOS Children’s Villages to improve the health of children
in Brazil. SOS activities focus on neglected and abandoned
children and orphans, as well as disadvantaged families.

P&G employees are experiencing a bonus beneﬁt fromvolunteering for Live, Learn and Thrive programs; they’rebuilding their individual and team skills while making a
difference for children in need.

The long-term Blend-a-med/SOS partnership has alreadyresulted in construction of a medical center in the SOS
children’s village in Recife, on Brazil’s east coast. In anotherrecent project, Blend-a-med helped raise funds for an SOS
children’s village in Lauro de Freitas, in northeast Brazil. The
village replaces an older SOS children’s village that was locatedin an area threatened by landslides and surrounded by a rapidly
growing slum. The new SOS village houses about 130 children.
The concept of the SOS village is to provide children withfamily-based care and security, enabling them to develop into
independent, self-reliant people.

A team from the Cincinnati headquarters ofﬁce made a
December trip to an unusual “store” called Crayons toComputers. Teachers come to Crayons to Computers topick up donated school supplies for their classes, free. These
supplies help more than 75,000 disadvantaged children
succeed in school.

The campaign “Every tube helps. You can help, too!” collected
one cent for every tube of toothpaste sold in Germany
between July and November 2006. Many generous consumers
not only purchased Blend-a-med, they also donated additional
money directly to SOS. The campaign raised nearly 250,000
euros. This money was invested in several projects at an SOS
village in southeast Brazil, improving the housing and providing
education, health care and nutritious meals.
Blend-a-med considers support of medical centers in SOS
villages a major opportunity to improve health standards andteach children from an early age to take care of their health.

Web

To learn more about SOS Children’s Villages, please
visit www.sos-childrensvillages.org

As Crayons to Computers relies on volunteers, the P&G group
stocked shelves and also created some learning tools forpreschool classrooms. A team member said, “I loved it! It was
great to be part of something more than eating holiday treats
and listening to holiday songs. Spending our time helping
children in need throughout our community really helped bring
the spirit of the season to life for all of us.”Web

For more information on Crayons to Computers,
please visit www.crayons2computers.org

Supplies help
more than 75,000
disadvantaged children
succeed in school.

Strategies and Goals
Strategy 3

P&G 2007 Global Sustainability Report

Costa Rican Children Gain
Access to Schools

P&G Supports the Melia
Children’s Center

P&G Costa Rica continues facilitating equal access to education
with its Eliminating Barriers program, beneﬁting children in
12 schools this year.

P&G Greece is supporting the Melia Children’s Center, whichhelps children whose parents suffer psychological problems.

Census ﬁgures indicate disability in more than 2 percent of
Costa Rican children under 15, yet more than 80 percent of
the country’s schools are not suitable for physically challenged
students. The Eliminating Barriers program was launchedin 2004 to assist compliance with the Equal Access toOpportunities for the Physically Challenged law. The program
seeks to eliminate architectural barriers that limit school accessfor physically challenged students by constructing ramps andaccessible bathrooms and classrooms. This P&G Live, Learn andThrive initiative was developed in alliance with the Costa Rican
Ministry of Education and the Asociación Empresarial para el
Desarrollo (Entrepreneurial Association for Development/United
Way of Costa Rica).
During ﬁscal year 2006-2007, ﬁve additional schools in at-risk
communities in the four-city Great Metropolitan Area wererefurbished, enabling students to attend classes and study inan environment of greater inclusion.
Volunteer employee engagement in Eliminating Barriers isa priority and one of the most important enablers of the
program. More than 250 P&G Costa Rica employees havedonated more than 1,000 hours this year.
Eliminating Barriers is one of 10 winners of the third annual
P&G Live, Learn and Thrive global grant competition; thisCompany grant money allows P&G Costa Rica to make aneven bigger impact, beneﬁting even more children.

48

When parents have psychological problems, it affects thewhole family, particularly the children. Living with a parent
suffering from a psychological disorder is often a confusing
and sometimes frightening experience.
Melia offers an environment where children discover andunderstand their own needs and feelings. It also provides
children with information about their parent’s disorder andits treatment so they can support the parent. Educational andcreative activities are organized according to the children’s needs
and interests. The children’s free time is ﬁlled with community
activities that help build their skills in personal relationships andcommunication and help them develop personal interests. Most
important, the ties between the children and their families arestrengthened, as family members visit Melia, and the children
visit their parents at home or in the hospital.
The Melia Children’s Center works with boys and girls aged
5 to 12. Their average stay varies from a couple of weeks
to one year, depending on the needs of each family. Melia’s
ultimate goal is to help these children return to their homes
and families or, if not possible, to help them settle down in astable family environment.

Strategies and Goals
Strategy 3

P&G 2007 Global Sustainability Report

49

Project Shiksha Gets
Indian Children Into School
Of India’s 420 million children, 200 million never go to school
and of those who do, 50 percent drop out before ﬁnishingprimary school. Project Shiksha is P&G India’s response to thissituation.

Aiding Indonesian
Earthquake Victims
When an earthquake hit Indonesia’s Yogyakarta and Central
Java provinces in 2006, 600,000 people were left homeless.
Within 24 hours, P&G Indonesia employees had formed ateam that collected personal cash donations from employees
and additional backing from P&G’s community fund. P&G also
donated PUR Puriﬁer of Water and other P&G products to theaffected villages.
The P&G team drove seven hours to deliver tents, blankets andproduct to Yogya. The destruction was so severe that many
people, including injured elders and children, were sleeping incrowded tents or in the streets. The team began working withthe local community to build shelters, using waterproof tents.
Two hundred families were housed in these “P&G modules.”Employees on the team said it was heartwarming to see these
simple structures rise over the rubble and generate a feelingof hope. Some of the modules were painted by residents witha P&G logo in appreciation. Other organizations, including
the local government, saw the “P&G modules” and provided
additional resources to expand the rebuilding effort.
Working with organizations such as the Association of
Pediatricians, the ofﬁce of the Queen of Yogya Sultan andother emergency forces, the P&G team distributed $30,000
worth of products, such as Duracell batteries, Vicks healthcare, Oral-B dental care, Pampers diapers and Whisper
feminine pads.
PUR Puriﬁer of Water was distributed to 52,000 householdswith the help of the large Indonesian foundation Yayasan Dian
Desa, CARE, USAID’s Ofﬁce of Foreign Disaster Assistance,
Assyiah, Action contre la Faim (Action Against Hunger) andSamaritan’s Purse.

In partnership with India’s leading child rights organization
Child Rights and You (CRY), the Shiksha Project works with
India’s state education departments to look at existingeducation policies; build more schools with basic amenities
such as water, electricity, health care; enroll more children into
formal schools and encourage them to stay in school longer.
The Shiksha project is simple: Every time an Indian consumerpurchases a large pack of a P&G brand, part of the proceeds
goes to Shiksha. P&G commits to providing CRY with aminimum contribution of US$220,000.
From a commercial point of view, Shiksha is a win-win for P&G
Live, Learn and Thrive, P&G’s business, and most importantly,
the children. The main opportunities have been:• Engaging with retailers has continued to build long-term
relationships. To further encourage retailers, we haveintroduced a rewards and recognition program for top
retailers.
• The program enables employees to “adopt” stores in theircommunities and help spread awareness of the Shiksha
program.
• The program generates additional airtime via media coverageand celebrity launches.
As a famous quote by Mother Teresa goes, “We may feelthat what we are doing is just a drop in the ocean. But if thatdrop was not in the ocean, the ocean will be less because of
the missing drop.” Shiksha is a drop P&G India tries to makebigger every year.

Strategies and Goals
Strategy 3

Impact of Children’s Safe Drinking Water Program
Since the start of Children’s Safe Drinking Water, we’vedelivered a total of 700 million liters of safe drinking water.
This has resulted in an estimated reduction of 29 million daysof diarrhea and 3,809 lives saved.
During this ﬁscal year speciﬁcally, we delivered 200 million
liters of safe drinking water. Given the assumptions we areusing for calculation of health, we estimate that we reached
460,000 children.

P&G 2007 Global Sustainability Report50Children’s Safe Drinking Water
P&G’s PUR Puriﬁer of Water presents astounding opportunities
to improve and even save lives in the developing world, wheremore than a billion people lack access to clean drinking water.
Millions of them die, including about 2 million children per year.
PUR offers a quick, easy and affordable way to clean
contaminated water. It kills viruses and bacteria that cause
typhoid and cholera. It effectively reduces parasites, pesticides
such as DDT, heavy metals such as arsenic, and otherdangerous contaminants.
P&G brings PUR to families who most need it, either in case of
emergencies (e.g., tsunami, earthquakes and refugee camps)
or through sustained efforts in the developing world. Our main
challenges regarding PUR are providing it where it’s needed
and ensuring its long-term use. To meet these challenges, P&G
collaborates with public health organizations in the poorest
parts of the world to make PUR available and teach people

how to use it. A major partner, for example, is Population
Services International (PSI), which markets health care products
in developing countries on a nonproﬁt basis.

During this ﬁscal year
speciﬁcally, we delivered
200 million liters of safe
drinking water and reached
460,000 children.

P&G sells PUR at cost for everyday consumer use and for use
by global relief agencies. These agencies donate it to survivorsof emergencies.
Together, P&G and its partners develop and execute plans toreach people who desperately need PUR. These plans include
building awareness and acceptance of PUR as well as getting
community leaders and retailers to support its use. P&G offers
not only its PUR product but also its expertise in distribution,marketing and working with communities.
As part of P&G Live, Learn and Thrive™, the Children’s Safe
Drinking Water program has provided 70 million packets of
PUR Puriﬁer of Water. This is enough to make 700 million litersof safe drinking water in communities that are likely decades
away from public water treatment facilities.
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51

Children’s Safe Drinking Water
continued from previous page

PUR Puriﬁer of Water is now in 12 countries with sustainedChildren’s Safe Drinking Water programs:• Haiti• Dominican Republic• Republic of the Congo• Democratic Republic of the Congo• Indonesia• Pakistan• Ivory Coast• Uganda• Malawi• Kenya• Ethiopia• Nigeria

On top of that, PUR has been used for emergency relief inmany countries around the globe.
We are working with a diverse group of partners to distribute
PUR in not-for-proﬁt social marketing and emergency relief
situations. P&G has provided millions in funding to ourpartners to aid in distribution.
P&G has developed a large number of partnerships to provide
safe drinking water. They include PSI, CARE, UNICEF, USAID,
the U.S. Centers for Disease Control (CDC), the International
Council of Nurses, Save the Children, Samaritan’s Purse andAmeriCares. P&G’s ﬁnancial contributions have come from The
P&G Fund, P&G employees and P&G Retired Ofﬁcers.

Relief and Social Market Countries

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52

save water were demonstrated at P&G’s World Water Day
events. Japan’s event included soliciting water-saving ideas
from employees.
Procter & Gamble is committed to making a difference in bothraising awareness and creating solutions that save lives. The
Company does this through Children’s Safe Drinking Water,
the signature program of its P&G Live, Learn and Thrive™
corporate cause.

World Water Day 2007
For World Water Day in March, activities were held at morethan 75 P&G sites in 32 countries. These activities raised
employee awareness of water issues and offered opportunities
to get involved.
Worldwide activities included demonstrations of how P&G’s
PUR™ Puriﬁer of Water technology cleans drinking water andshowing of the Company’s World Water Day video.
Various P&G locations held unique activities:• In Latin America, PUR demonstrations were included in
employees’ emergency preparedness training.
• In the United States, the “Buy PUR, Help Save Lives”
campaign was highlighted. The campaign shows how PUR
donations help those who most need clean water.
• In Japan, Spain and China, external water experts spoke
about water issues around the world. The World Water
Day event at P&G’s Japan headquarters ran for four days.
It featured a seminar presented by a representative of theJapan Water Forum, a nonproﬁt organization addressing
water issues in Japan and around the world.
• In Belgium, the P&G cafeteria served African food and placed
pitchers of seemingly dirty water on the tables. Volunteers
served clean water to replace the “dirty” water. Tips
(pourboire) collected for this service went to providing PUR
sachets in Uganda.
• Pakistan, Spain and Greece also made fund raising anelement of their World Water Day events.
World Water Day is a United Nations-designated day to create
public awareness and work on solutions to water issues. Theseissues include lack of safe drinking water for 1.3 billion people
around the world.
Coordinating with this year’s focus on water scarcity, a numberof new P&G product and technology innovations that help

“I cannot think of a better example of how P&G brands andpeople are fulﬁlling our Company purpose of ‘Touching lives,
improving life, every day,’” said P&G Chairman and Chief
Executive Ofﬁcer A.G. Laﬂey in the World Water Day video
shown at P&G sites around the world.

Notes From the Front LinePUR Puriﬁer of Water and the Children’s Safe Drinking Water
program really bring to life P&G’s desire to improve the livesof the world’s consumers. Many people around the globe
work to address the needs the Children’s Safe Drinking Water
program tries to meet. Some of these people are featured in
the ongoing blog Notes From the Front Line.

Web

You can read it at
http://childrensafedrinkingwater.typepad.com

This blog was ﬁrst developed to let P&G employees know
about the Children’s Safe Drinking Water program and what
it was doing to help after the 2005 Asian tsunami. Many P&G
employees gave generously to our disaster relief partners so
we could provide PUR Puriﬁer of Water to the affected areas.
We wanted to let them know how their contributions were
helping.
Employees responded to the blog with enthusiasm, from thevery ﬁrst post. They asked questions, such as where else in
the world we were helping people obtain clean water. Theirinterest prompted the team to continue posting – from Africaand Haiti, from India following last year’s ﬂoods and from
Pakistan in the aftermath of the earthquake.
While P&G employees continue to be the primary audience forthe blog, they’ve asked that information be provided in a way
they can share with friends, family and colleagues outside of
P&G. We hope you take a look.
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P&G 2007 Global Sustainability Report

Children’s Safe Drinking Water
continued from previous page

Children’s Safe Drinking Water Program Methodology
Working with Population Services International and Aquaya
Institute, we have developed the following methodology toestimate 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 amonthly basis by country.
From this, we calculate the liters of safe drinking water provided
and estimate the impact 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 are used for
product provided for emergency relief efforts since diarrhea
rates are typically high during these situations.
The reduction in diarrheal illness from the use of 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 conductedstudies are published in the peer-reviewed literature.

Health Intervention Trials
The U.S. Centers for Disease Control and Johns Hopkins
University have conducted ﬁve clinical trials of PUR and proventhat it signiﬁcantly reduces diarrheal illness in children and thetotal population.
Location/
Setting

Study
DesignDiarrhea
Reduction

Rural Guatemala

2,982 people
52 weeks

24-29% reduction

Rural Guatemala

3,401 people
13 weeks

40-72% reduction

Rural Kenya –turbid water

6,615 people
20 weeks

17-42% reduction

Pakistan –urban setting

12,090 people
39 weeks59-64% reduction

Liberia –refugee camp

2,191 people
12 weeks

87-95% reduction

The speciﬁc assumptions are:• Each PUR sachet treats 10 liters of water.
• An average of 1.5 liters of drinking water is used per childper day and 2 liters of drinking water per adult per day.
Diarrhea• 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.
• The number of episodes of diarrhea per adult per year is– 0.98 episodes in sub-Saharan Africa.
– 0.21 episodes in Latin America.
• PUR use averts 50% of the diarrhea episodes.
• A diarrhea episode lasts an average of 7.3 days.
Lives Saved• The fatality rate per case of childhood diarrhea is– 0.001 in sub-Saharan Africa.
– 0.0002 in Latin America.
• The fatality rate per case of adult diarrhea is– 0.0004 for sub-Saharan Africa.
– 0.00005 in Latin America.

53

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P&G 2007 Global Sustainability Report

Improve through Employees

4Strategy
Engage and equip
all P&Gers to build
sustainability thinking
and practices into theireveryday work.

54

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55

Strategy 4

P&G is deeply committed to sustainable development. It will ensure a better
quality of life for everyone, in both the developed and developing worlds.

Values and Policies
As an important part of our Corporate Social Responsibility
program, we have released a publication, Our Values
and Policies.
This booklet provides sustainable development guidelines forbusiness conduct that are based on P&G’s Purpose, Values andPrinciples. These key elements are of utmost importance forproper conduct and respect for all individuals in the quest forcommon prosperity.

Web

Our Values and Policies can be downloaded at:www.pg.com/content/pdf/01_about_pg/01_about_
pg_homepage/about_pg_toolbar/download_report/
values_and_policies.pdf

The Global Sullivan Principles
P&G was one of the founding members of the Global Sullivan
Principles. In accordance with the Global Sullivan Principles, we
support economic growth, social justice, human rights, politicaljustice and equal opportunity wherever we do business in theworld. The products we deliver, the consumers we serve, andhow we serve them are in line with these expectations. We
consider ourselves a global company and a global citizen.
At P&G, everything we do begins with our Purpose, Values andPrinciples. We have reviewed and revised our policies to makesure we are aligned with the Global Sullivan Principles.
We ensure our commitment to our employees through ourhuman resources system and proﬁt-sharing program. Ourhuman resources system trains, educates and develops ourpeople. It offers ﬂexible work arrangements, giving employees
the opportunity to meet both business and personal needs.
It instills our culture and policies to ensure that everyone istreated fairly and has the opportunity to contribute 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 to be a sustainable business and a
viable part of the communities in which we do business.

Strategies and Goals
Strategy 4

Human Resources
Human Resources ensures that P&G has the employees,organizational design and work culture to deliver businessproductivity 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 fullpotential. To achieve this goal the following support systems
are in 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.

P&G 2007 Global Sustainability Report

56

Wages
P&G supports paying employees a competitive wage, as
benchmarked against other leading companies. Consistent
with our principle of valuing 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 been developed to help protect
the ﬁnancial security of employees. These beneﬁts include
comprehensive coverage for health care, generous vacation andholiday time, and other work/family balance beneﬁts, including
ﬂextime, child care leave and less-than-full-time schedules.

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

Harassment Policy
P&G is committed to providing a harassment-free work
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 to their highest potential.
We will not tolerate harassment of anyone by anyone –including employees, suppliers, customers, contractors andagencies. Every employee is expected to be proactive inensuring that the work environment is free from harassment ofany kind. Managers of others are responsible for setting clear
expectations for acceptable behavior in the workplace.

P&G is arecognized leader
in employee
beneﬁts.

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57

P&G’s most important asset is its people.
P&G works with its employees to protect
and enhance their health and well-being.
Medical
P&G’s Global Medical organization advises and assists
management and employees 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 employees, technologies and brands.
As P&G is a principles-driven company, all medical system work
follows this order of priority:
1. Save a Life (Protect P&G People)
2. Obey the Law (Protect P&G’s Reputation)
3. Protect Key Technologies (Protect Brand Integrity)
4. Enhance Speed to Market (Protect Emerging Technologies)
5. Optimize Employee Productivity
All medical standards of performance and standard operatingprocedures ﬂow directly from speciﬁc P&G Principles, Values
and compelling business needs.
The percent capability from each area is shown below.
PERCENTAGE OF SITES ANDTECHNICAL CENTERS CONDUCTING
MEDICAL SYSTEMS AUDITS
80

82

83

P&G Healthy Living Initiative
We’ve made a major breakthrough in addressing the ﬁfth
priority, “Optimize Employee Performance,” through P&G
Healthy Living, a Company-wide strategy to partner with our
employees and their families to preserve and improve thequality of their health. P&G Healthy Living focuses on three
primary elements:• Partnership: P&G works with employees and their family
members to improve/preserve their health and wellness.
Employees and their families want to make an effort toachieve the best health they can, using the assistance theCompany provides. When our employees and their family
members are healthy, that’s healthy for P&G’s business, too.
• Quality: P&G supports initiatives that improve the quality ofhealth and identify high-quality health care providers to serve
our employees and their families.
• Prevention: P&G supports initiatives that promote
preventive health care and healthy lifestyles.
Examples of regional wellness programs supporting the P&G
Healthy Living initiative include:

Wellness
05

06

07

Balance
Healthy Living Initiative

PERCENTAGE OF NON-SITES AND
NON-R&D FACILITIES CONDUCTING
MEDICAL SYSTEMS AUDITS
82

83

81

05

06

07

Wellness Balance for employees in Latin America (initiallydeployed in Guatemala, Mexico, Peru and Venezuela, andextended over the past year to Argentina and Colombia).
This program is intended to promote healthy lifestyles tohelp employees to face a complex and demanding work
environment. This is done through a holistic approachthat integrates the Employee Assistance Program, physicalexamination program, health risk evaluation program,physical ﬁtness promotion, programs for providing healthierfoods in Company cafeterias and during breaks, wellness/
medical information, yoga/massage/other relaxation tools,
and personalized health advice from health professionals,
nutritionists and sports trainers.
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58

Medicalcontinued from previous page

Participation is voluntary, conﬁdential and free.
We protect the privacy of employee data. All our medical andmedical plan-based employee and dependent data is highly
secured to assure that it remains conﬁdential.
P&G Wellbeing for employees in Western Europe (initiallydeployed in Germany, Switzerland and Italy, and extended
over the past year to Greece and the Nordic countries). This
program is intended to help employees achieve sustainablepeak performance at work while being better able to balance
the demands of work and private life. Participants beneﬁt fromthe following:• Concepts for both body and mind, which enable (and allow)
them to make their own choices.
• Opportunities for awareness and education on well-being
topics, such as health, sports and food.
• Simplicity and support in seeking information on healthrelated issues.
Chairman and CEO A.G. Laﬂey provided the opening addressfor our Geneva Wellbeing Week, which focused on mind/
body/soul balance, healthy sleeping habits, healthy diet andcardiovascular disease prevention.

Blueprint for Healthy Living for U.S.-based employees
and family, 18 and older. The program offers online tools
and telephone support to educate and empower employees
and families to make the best health care and lifestyle-related
choices. This program works in conjunction with:• P&G’s health care providers.
• Individual site wellness programs.
• Recent changes to our U.S. health beneﬁt plans designed
to encourage the use of preventive health services andinterventions.
Blueprint for Healthy Living offers a comprehensive set ofservices, which includes:• A Wellness Assessment tool to address physical, emotional
and lifestyle risks.
• Personal Wellness Advocacy programs, which offer
education, assistance with lifestyle improvement and 24/7
counsel from registered nurses.
• Condition Management programs with customized guidanceon conditions that cause decreased quality of life, lost work
time and increased health care costs.

Diversity Position
Diversity is a business strategy for P&G. It’s an intentional
choice that creates sustainable competitive advantage.
It is implicit in the Company’s Purpose and explicit in the
Company’s business strategy for success. We simply cannot
create brands and products to improve the lives of the world’s
consumers unless we deeply understand and value the diversityof their needs and aspirations. We believe the best way to
do this is to have a work force that reﬂects the markets andconsumers we serve and to fully value and leverage all theirexperiences, insights and talents. That’s why P&G’s Corporate
Diversity strategy is:
Everyone valued, Everyone included, Everyone performingat their peak.
P&G is committed to being a leader. We want our brands
to lead in their categories and our Company to be a leader
in our industry and our communities. Our mission is to be,
and be seen as, the best consumer products company in theworld. In order to achieve our mission, we must be among
the best places to work and leverage diversity as a competitive
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P&G 2007 Global Sustainability Report59

Diversity Position
continued from previous pagein-touch company in the world. To be in touch is to practice –and believe passionately in – diversity and inclusion.
To ensure we are “in touch” with our global markets,
customers and business partners, our business leadersrelentlessly pursue valuing, trusting, respecting and leveraging
individual differences and inclusion. Thus, we are more creativeand innovative in developing products and services that
improve the lives of the world’s consumers.
Leadership Focus and Accountability
A.G. Laﬂey, Chairman of the Board and Chief Executive Ofﬁcer,
holds himself accountable for leading diversity and monitoring
progress in every part of our Company. He expects top
leadership to hardwire diversity into their business strategies,
establish clear expectations and demonstrate personalaccountability. This requires top management to show strong,
visible leadership, commitment and constant focus in order toachieve diverse leadership, work teams and robust systems forongoing tracking for accountability of diversity progress.
Top executives conduct in-depth diversity reviews annually withorganization heads across the business units, to assess progressand reinforce leadership accountability for corrective actions.
The top 40 ofﬁcers in the Company have diversity results tied
to their stock options awards, and strong diversity performanceinﬂuences top ratings. Diversity action plans are developed ineach region of the world to reﬂect the greatest opportunity foradvancement of local diversity strategies.

Talent Support and Development
P&G strives to build a diverse and fully engaged organization
by attracting the best talent from around the globe, leveraging
the full talent of each individual through effective assignment
and promotion planning processes, and executing withexcellence the critical systems that affect and support retentionof each employee.
We focus on establishing long-term relationships witheducational institutions that have diverse populations of highly
qualiﬁed students. To broaden our candidate base worldwide,
we utilize Recruitsoft, our fully global, web-based candidate
management system. We supplement our base recruiting
efforts by utilizing intern programs such as INROADS,
participating in recruiting conferences and by outreach to highschool students. We execute special programs such as our
Careers in Business Initiative and P&G Marketing & Finance
Summer/Winter Camps to introduce students to P&G’s successcompetencies. Additional teams are available to help withefforts to recruit women around the globe and Hispanic,
African-American, military and disabled candidates in the
United States.
Our foundation systems for ensuring employee retention
include effective ﬁrst-year on-boarding/join-up programs,
providing a good match with 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
the organization and contribute strongly to effective recruiting,join-up and development efforts. These groups include
women globally and Hispanic, African-American, Asian/PaciﬁcAmerican, gay/bisexual/lesbian and disabled employees in the
United States.
Inclusive Culture
P&G leaders are expected to build an inclusive work
environment that welcomes and embraces diversity – anenvironment where people feel comfortable being whothey are, regardless of their individual differences, talentsor personal characteristics. This is an environment thatprovides everyone equal access to information, opportunities
and involvement so each person learns, grows, excels andmaximizes his or her personal contribution.
Training, policy and sensing systems are utilized to reinforce
development of an inclusive culture. Focused diversity training/
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60

P&G 2007 Global Sustainability Report

Diversity Position
continued from previous pagelearning processes are utilized to equip leaders to value andnurture differences in experiences, styles of leadership andproblem-solving/decision-making approaches. All employees
have access to supportive and enabling policies and practices in
the areas of ﬂexible work arrangements, family care, resource/referral services and wellness management to improve work/
life integration and personal productivity. Employee surveys
and culture sensing, as well as the diverse leadership networks,
provide advisory data and learnings to top leadership about
how to be more effective at leveraging local customer/
employee practices and perspectives.
Business and Community Partnerships
Improving lives in the countries and communities in which
we operate is a long-standing P&G value. We are committed
to making a difference in all our communities – from India to
Kenya, from Canada to Brazil, from France to Australia. Aroundthe world, P&G and its employees strive to improve lives everyday. This has led to a focus on building effective businessand community partnerships in areas where we can make ameaningful difference: education, volunteerism to improve thequality of life in our communities, and economic development.
Education is a means of improving quality of life and a pathway
to fulﬁll personal aspirations. P&G supports educational
programs, from preschool through college, through ﬁnancial
contributions and mentoring/tutoring programs. The volunteer
leadership of P&G employees, who can be counted on to
help with virtually every signiﬁcant community project, greatly
enhances the effectiveness of our contributions. Throughvolunteerism, P&G provides ongoing support, sponsorship andleadership for many civic, cultural and nonproﬁt organizations
across all geographies in which we operate.
P&G is committed to the economic development of minorityand women-owned businesses and suppliers. P&G has oneof the oldest supplier diversity programs in the United States,
spending more than $1.5 billion across nearly 2,000 minorityand women-owned suppliers. Additionally, P&G provides
continuing leadership in the advertising industry by partneringwith our agencies to refer applicants to each other and help
minorities gain entry into commercial production companies.

Diversity Data
P&G continues to focus on diversity as a global strategy andexpects its work force to become increasingly diverse. Global
data on enrollment by gender is shown in the following table:
GLOBAL ENROLLMENT % FEMALEManagement
All Other Employees1

20072

2006

2005

38.9
39.1

39.3
39.0

38.0
38.4

The percentages of minority and female employees in the
United States are shown in the following table:
U.S. ENROLLMENT% Minorities
Management
All Other Employees1% FemaleManagement
All Other Employees1
1
2

20072

2006

2005

21.1
21.8

21.0
18.6

19.6
18.7

37.9
38.1

37.3
39.5

36.3
39.6

Administrative, Technical and Plant Technicians
Includes first-time integration of all Gillette employees

Summary
In 2007, P&G’s solid progress in diversity was recognized inmany global and U.S. surveys: Fortune’s World’s Most Admired
Companies (#3), Fortune’s America’s Most Admired Companies(#1 in our industry category), Fortune’s 100 Best Companies toWork For (#68), DiversityInc’s Top 50 Companies for Diversity(#14), National Association for Female Executives as one of
the top 35 Companies for Executive Women, Working Mothermagazine as one of the Best Companies for Multicultural
Women, Great Place to Work surveys in Spain and Portugal,
and several Best Employer/Company surveys in Latin America,
Canada, Poland and Japan.

Strategies and Goals
Strategy 4

Health and Safety Policy
P&G is committed to having safe and healthy operations
around the world. The goals are to protect the lives and healthof its employees and communities surrounding its operations,as well as to protect its assets, ensure business continuity andengender public trust. To accomplish this, P&G will:

P&G 2007 Global Sustainability Report

61

Veriﬁcation completed in September 2006 was conductedby ERM (Environmental Resources Management), a highly
respected international consulting ﬁrm in the ﬁeld ofenvironment, health, safety and sustainability.

• Operate facilities safely and ensure processes are safe andhealthy for our employees and residents of the surrounding
communities. We will accomplish this by following uniform
corporate safety standards around the world. Safe operations
have been a long-standing part of Company culture, reﬂecting
the belief that our employees our most important asset.
• Construct our facilities so as not to compromise the safety
and health features designed into them.
• Monitor progress toward our objective of preventing injuries,
illnesses and incidents. We will continually assess andimprove our safety and health technologies and programs.
• Have every employee understand and be responsible forincorporating safe behavior in daily business activities. Every
employee is trained to work in a safe and healthy manner.
• Have operating standards, practices, systems and resources inplace to implement this policy.

Industrial Hygiene and Safety
The health and safety of Procter & Gamble employees areparamount in the principles of the Company.

Worldwide Health, Safety & Environment Systems
Health, Safety & Environment (HS&E) is a global communityof resources responsible for ensuring that all sites – including
Technical Centers and acquisitions – worldwide are operated
safely and legally; that process hazards are minimized oreliminated; that health risks are identiﬁed, managed or eliminated;
and that waste from sites is reduced as much as possible. Several
thousand employees spend all or a portion of their time on HS&E
management. This totals more than 1,116 full-time equivalents,
up from 998 last year because of P&G’s acquisition of Gillette.
Both years of data include Technical Centers.

The TIR target for sites is to be below 1.5 cases per year, per
100 employees. To achieve such rates, 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.

There are three major components to a site’s HS&E
organization: the base component which includes
Environmental, Technical Safety and Industrial Hygiene &Safety; Fire Protection Systems and Medical Systems.
P&G uses a phased, detailed Risk Assessment process
to evaluate the safety of processes and initiatives being
introduced at its own manufacturing operations as well as at
contractor manufacturing operations. The Risk Assessment
process is designed to enable high-speed innovation.

Nothing we do is worth getting hurt.
Safety can be managed.
Every illness and injury could and should have been prevented.
Safety and health are everyone’s responsibility.
The Company tracks and reports two metrics for worker
safety – total incident rate (TIR) and total lost workday caserate (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 away fromwork or days of restricted activity beyond the day of injury or
onset of illness.

The following data is based on criteria established by P&G
for use at all sites including acquisitions, plants and technicalcenters. This year’s total incident rate was lower, at .49 versus.54 incidents per 100 employees, while lost workday caserate also was a little lower, at .26 versus .29 cases per
100 employees.
TOTAL INCIDENT RATE

(injury and illness per 100 employees)

.48

.54

TOTAL LOST WORKDAY CASE RATE
(lost and restricted workday cases
per 100 employees)

.49
.29

.26

06

07

.19

P&G regularly veriﬁes that the Health, Safety & Environment
program at all its manufacturing facilities meets the intent
of the environmental management standard ISO 14001. Last
year, we extended veriﬁcation to the Global Health and Safety
Management standard OSHAS 18001.

05

06

07

Note: This information now includes Technical Centers.

05

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P&G 2007 Global Sustainability Report

Update on HS&E Data Systems
After 10 years of operating our current global HS&E datasystems, we have gained a great deal of understanding andexperience on what has been successful, and sometimes
not so successful, in our databases. We have started toconsolidate all the thoughts, processes and improvements
in a major rewrite of the system. One of the key parts of thesystem is the incident tracking.
P&G ﬁrst started tracking “safety” incidents in the 1930s.
Since then we have expanded this system to include not
only safety, but also environmental, transportation, process
safety, electrical, etc. We feel incident tracking is critical for a
proactive HS&E management system.
The new system allows custom reporting depending on
various ﬁelds such as class severity or the type of incident. A
built-in analysis tool has been added and can be done at any

Audit Programs
P&G’s audit programs apply to all its plants and technicalcenters worldwide, including Wella and Gillette. The
fundamental philosophy is to have the same standards
worldwide, implemented by trained professionals at all plants
and technical centers and audited each year using a consistent,
comprehensive approach. The metrics used are consistent
with that philosophy. Charts show the performance of Health,
Safety & Environment (HS&E) and Fire Protection.
P&G’s HS&E audit programs are designed to ensurecompliance with national, state and local regulatory
requirements as well as corporate environmental standards
and procedures. Audit ﬁndings are reported promptly to thebusiness management teams, who must address and correct
all issues in a timely manner.
The Company reviews its sites on a frequent basis. The
graph shows percent of sites receiving an audit this year.
The percent of sites audited increased from 82 percent to89 percent this year.
PERCENT OF SITES CONDUCTING
ANNUAL AUDITS
89

82

time. The analysis tools have been expanded to ﬁnd “root”
cause, trends, follow-up steps and the capability to groupsites in different categories depending on your selection,such as by country or region. One of the strengths is thatthe worldwide community can see the incidents as soon
as they are entered, speeding the knowledge to the sitesthat can reapply the learning. Customers can also subscribe
to receive alerts via e-mail of any type of incidents of theirchoosing. This allows sites and Technical Networks to
identify any trends within their site or technology so it canbe addressed swiftly.
Ultimately, the goal of the modiﬁcation to the HS&E datasystems is to streamline the ﬂow of information and to allow
this information to be used more effectively to help promotea safer work environment.

Audits measure performance against a mandatory set ofstandards and standard operating procedures. The target
performance is 8 or better on a 10-point scale. This year’sscores greater than 8 have improved dramatically since thestandards were strengthened in 2005.
PERCENT OF SITES WITH
HS&E AUDIT SCORES > 8.0
87
72
50

05
06
07
Does not include acquisition sites.

PERCENT OF SITES WITH
FIRE PROTECTION AUDIT SCORES > 8.0
95

93

96

89

05
06
07
*Does not include acquisition sites.
05

06

07

62

Strategies and Goals
Strategy 4

HS&E Benchmarking
Benchmarking continues to be an important tool used by P&G
to assess and maintain the health of its global HS&E program.
It provides Corporate HS&E with important external data
to verify the robustness of our performance and to identify
improved management and technology approaches.
To that end, P&G works with many multi-national as well as
European companies to understand their performance in areas
such as injury/illness, workers’ compensation, property loss andregulatory ﬁnes, and HS&E personnel productivity. In addition,
we are routinely involved in studies led by GEMI (Global
Environmental Management Initiative, with a membership ofmore than 41 multi-national companies) that survey several key
HS&E topics. As a result of this work, we have concluded that,compared to other leading companies, P&G has:
• Strong HS&E performance results.
– Injury/illness rate for employees – lowest 25 percent– Lost workday rate for employees – lowest 25 percent– Penalties paid (in dollars per billion dollars sales) – lowest
33 percent– Property loss (in dollars per billion dollars sales) – lowest
33 percent• “Best in class” HS&E operations costs (in dollars per billion
dollars sales) due to shift of more HS&E work to site
technicians than most other companies.
While P&G’s HS&E situation is quite positive, our long-term
challenge is to continue excellent benchmarking results.

P&G 2007 Global Sustainability Report

63

Site HS&E Leadership Training
A key indicator of Health, Safety & Environment (HS&E)
systems capability is the percentage of sites with trained andqualiﬁed leaders. Leadership candidates train on-site for an
extended period after attending a week-long seminar where
their knowledge and ability to handle speciﬁc situations areassessed. For full qualiﬁcation, the candidates must complete
a qualiﬁcation project at their own plant. Currently, more than81 percent of sites worldwide have HS&E leaders qualiﬁed
by Corporate/GBU staffs, and more than 69 percent havequaliﬁed ﬁre protection leaders. This training and qualiﬁcation
program applies to all sites, including Technical Centers
and acquisitions.
PERCENT OF SITES WITH
HS&E QUALIFIED LEADERS
82

05

89

06

81

07

PERCENT OF SITES WITH
FIRE PROTECTION QUALIFIED LEADERS
83

83
69

Fire Protection
P&G operates its ﬁre protection program on the basic principlethat each facility is unique and should 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 thefollowing key elements:• Protection Engineering• Maintenance and Inspections• Prevention Programs• Emergency Response• Qualiﬁed Personnel
Each facility has a ﬁre defense proﬁle that describes in detailthe program requirements.

05

06

07

HS&E Program Costs
There are two aspects of HS&E program costs:
1. Capital costs for new HS&E equipment.
2. People and operating costs for existing facilities.
HS&E capital costs for 2006-2007 were $43 million, a slightincrease from last year to ensure compliance in our facilities.
This included the purchase and construction of pollution
control equipment such as wastewater pretreatment and air
emission controls.
HS&E total costs for existing sites in 2006-2007 increased to$213 million. (This does not include the $36 million in revenue
gained from recycling activities.)

Strategies and Goals
Strategy 4

P&G 2007 Global Sustainability Report64• Offer medical plans that assist employees with HIV/AIDS
to get life-prolonging medication, and in some cases
supplement these plans with additional Company support.

HIV/AIDSWorldwide, 40 million people are infected with HIV/AIDS.
Statistics are frightening; it is estimated that someone becomes
infected every six seconds.
Infection rates in some African countries run as high as 40
percent of the population. AIDS has become the leading causeof death in sub-Saharan Africa, with more than 28 million
people infected. In addition to the many, 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 with
AIDS, are treated consistently with the Company’s Purpose,
Values and Principles by the Company, their managers and coworkers. Among other things, that means that each individualis treated with dignity and respect, and that we do notdiscriminate against any individual based on any difference notrelated to performance. We treat employees with HIV/AIDS thesame as we treat those with other serious illnesses.
Speciﬁcally, an employee who is HIV-infected or with AIDS:• has the same employment rights and responsibilities asother employees.
• has the same eligibility for employee beneﬁts and programs,
including medical care and disability coverage, as noninfected employees.
• is afforded privacy and conﬁdentiality protection consistent
with the Company’s handling of conﬁdential, medical orother sensitive information.
• is provided management support to remain productive.
With HIV/AIDS impacting sub-Saharan Africa more than any
other area in the world, P&G’s sub-Saharan organization isleading the Company’s HIV/AIDS effort. P&G’s effort, whichbegan in 1998, was revised in 2004 to coordinate with thelatest national and international developments and standards.
The effort’s objectives are to:• Use employee and family awareness and prevention
programs at our African locations to help prevent the spreadof HIV/AIDS.

The workplace portion of the effort consists of the following
elements:• Establishing baseline measurements, such as for knowledge,
attitude, perception and disease prevalence• Conducting risk analysis and impact assessment, considering
issues such as costs to P&G and impact on customers,
suppliers, health care facilities• Implementing prevention strategies, such as awarenesstraining, voluntary counseling and testing for HIV/AIDS andsexually transmitted disease• Implementing wellness programs to keep infected employees
as healthy as possible and providing post-exposure
prophylactics, anti-retroviral treatment, Nevirapine, vitamins
and nutritional supplements and home-based care
• Evaluating and monitoring the effectiveness of theseinterventions• Assessing and improving Company beneﬁts
Speciﬁc P&G Activities to Fight HIV/AIDS in Africa
The major accomplishment was that, with governmental
approval of the merger with Gillette, all of the HIV/AIDS
policies and medical beneﬁts have been extended to all
previous Gillette employees. Our focus in the next year will be
to expand our program into Kenya and Nigeria.
Awareness Training
We have continued the awareness training using a web-based
portal, weekly e-mailed curricula and special campaigns. The
campaigns focused on special events (e.g., World AIDS Day,
the Christmas season, Valentine’s Day and World TB Day).
Information includes:
HIV/AIDS the Facts• Beliefs that cause more harm than good
• Viral dynamics of HIV infection• HIV/AIDS transmission• Prevention and testing
Living with HIV• Vitamins and HIV/AIDS• AIDS-related cancer• Hepatitis B• Drug resistance• Helping someone who has lost a loved one• Living positively

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P&G 2007 Global Sustainability Report

65

HIV/AIDS
continued from previous page

Parents Center• Children getting infected• Your kids and HIV• Your teens and HIV
HIV/AIDS at work
• Workplace strategy
In addition to the educational campaigns above, we conductedManaging HIV/AIDS in the Workplace training (for managers),
with 80 percent of managers attending this training. We arealso planning to supplement this training with additional
training provided by our health insurance provider.
We had a Wellness Day where employees were encouraged to do
HIV/AIDS Anonymous Counseling and Testing as part of the KnowYour Status campaign. Forty employees volunteered for testing(out of 150). Other activities included health screenings (high bloodpressure, body mass index, etc.) and massages. Attendance:
90 percent of the organization.
We observed December 1 by having a candlelightmemorial session and wrapped all balconies with HIV/AIDS
wrap-around banners.
Knowledge, Attitude and Practices Survey
Previously we conducted a survey to:• Assess our employees’ HIV vulnerability by exploring theirknowledge, attitude and practices.
• Collect information to guide development of acomprehensive HIV/AIDS strategy.
• Obtain baseline information against which to measure andmonitor efﬁcacy and impact of the program over time.
The majority acknowledged the existence of HIV/AIDS and had
accurate perceptions of their personal risks. The majority knewof our workplace policy and were interested in our VoluntaryCounseling & Testing program. However, since that study wehave doubled the head count of our South African organization
with the merger with Gillette and thus we will be repeating the
Knowledge, Attitude and Practices Survey next year.

Web

For more information on P&G’s anti-HIV/AIDS work in
South Africa, please visit:www.pg.com/content/pdf/01_about_pg/corporate_
citizenship/sustainability/reports/pg_south_africa_
2004_hiv_aids_report.pdf

Prevalence Survey
Our previous survey of HIV incidence, in which 70 percent of
employees participated, including 97 percent of the high-risk(i.e., younger) employees, showed that our infection rate is far
lower than national averages. This information was used toensure we had adequate resources (e.g., beneﬁts, recruitment,
and training) and focus them effectively. However, we will be
repeating the survey because of the merger with Gillette.
PUR and HIV/AIDS
The global response to HIV/AIDS needs to include provisionof safe drinking water, and P&G is helping to build
awareness of this need as well as provide safe drinking
water to people with HIV/AIDS. In sub-Saharan Africa, where
HIV/AIDS rates are very high, we are working with a numberof partners 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. P&G’s PUR Puriﬁerof Water effectively removes all of these from contaminatedwater and has become a critical health tool for many people
with HIV/AIDS.
P&G is working with the Safe Water and AIDS Program(SWAP) in Kenya, the Kenyan Red Cross, village AIDS clinics,
Population Services International and the YWCA in Kenya
to provide safe drinking water to people living with AIDS.
In addition, P&G committed at the 2007 Clinton Global
Initiative to provide a minimum of $1 million in additional
funds to provide safe drinking water to people living with
AIDS. P&G is interested in working with groups that havecapacity for provision of safe drinking water to people livingwith HIV/AIDS in areas where drinking water sources are
turbid and contaminated.
P&G participates in HIV/AIDS programs in other parts of theworld as well. For example:• P&G Mexico joined with other large corporations to forma business coalition called Consejo Nacional Empresarial
sobre SIDA (National Business Council on AIDS). This
coalition was launched on World AIDS Day 2004, withmembers committed to “eradicate HIV/AIDS discriminationin their workplaces.”• P&G China provides HIV/AIDS awareness and healtheducation by broad e-mail communication, a website andbrochures to all employees. We have implemented anawareness program on the annual HIV/AIDS day at our
General Ofﬁce and our plants. HIV/AIDS education is now
part of the on-boarding effort for all new employees.

Strategies and Goals
Strategy 5

Strategy 5

P&G 2007 Global Sustainability Report

Improve through Stakeholders

5

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

66

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P&G 2007 Global Sustainability Report

67

Strategy 5

P&G contributes to the economic and social well-being of a range ofstakeholders, including employees, shareholders, communities in which we operate, andmore widely, to regional, national and international development.

P&G’s External Stakeholders
Consumers,
Consumer Organizations

Consumers

Shareholders
News Media

NGOs

Governments

Shareholders

Business Partners

Industry Associations

Stakeholders
A stakeholder is anyone who has an interest in or interaction
with P&G. Stakeholders can be internal, such as the Company’s
138,000 employees and its Board of Directors, or external.

Business Partners
Retailers, Wholesalers,
Distributors, Vendors,
Contractors, Suppliers,
Advertisers, Trade Unions
Industry Associations,
Professional Organizations,
Scientific/Medical
Communities

Governments
Local, Regional, National
Agencies (such as Health Ministries,
Regulatory Boards)
Pan-National Commissions(such as EU)
Embassies, Diplomatic Missions
NGOs
Health, Social Service, Education,
Environment
News Media

External stakeholders include P&G’s consumers who use our
products 3 billion times a day, our customers and supplierswith whom we do business, our shareholders, and thecommunities in which P&G people live and work.

Strategies and Goals
Strategy 5

Stakeholder Engagement
P&G works hard to be a good corporate neighbor and to
improve lives in the communities where we live and work.

Communities
Each P&G production facility has site-speciﬁc activities tobuild constructive relationships with local authorities, local
industry associations, residential and business neighbors, local
action groups, thought leaders and news media. Depending
on individual communities’ cultures and interests, this canrange from regular ofﬁcial meetings during which new
information is shared or questions are answered, to more
informal meetings. This could be, for example, a reception
for the immediate neighbors, where information on the past
year and plans for the new year are discussed. P&G ensurescontinuity in community interaction by meeting regularly
with local authorities to update them on plant news. In theneighborhoods 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 oflife in our local communities, and we 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 and energy 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 andhealth, with special emphasis on youth. It also leads us to build
alliances with strategic partners to achieve a better result thanwe could alone. We look to our people in the area to workwith their local communities and government ofﬁcials to learn
where we can make the biggest difference.

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68

P&G Canada Supports theChildren’s Aid Foundation
Together with the Children’s Aid Foundation, P&G Canada is
helping children who have been abused and neglected andalso those who have recently immigrated. The Foundation
offers prevention, enrichment and education programs forthese children.
Every December, the Foundation throws a Holiday Season
Celebration for a thousand children who have been abused
and neglected. They attend with their foster families. The party
provides an opportunity for the children to experience holiday
spirit and build holiday memories. For several years, P&G has
donated toys and sponsored Santa Land, where the children
get their pictures taken with Santa Claus.
This year, P&G Canada also gave the Children’s Aid Foundationa generous gift for its New Horizons: Healing & Hope program.
This program helps the increasing numbers of immigrant andrefugee children coming to live in Canada, many of whom
have been traumatized by war and migration. This is a joint
project with the Children and Youth Affected by War andMigration Coalition.
New Horizons offers an after-school, community-based
program for this unique population. The program helps thechildren heal, gives them hope and prevents the need formore intensive mental health and other services. For example,
it offers group counseling that involves age-appropriate play
and art therapy for traumatized children ages 5 through 13.
This therapy enables them to explore the losses they haveexperienced, focus on the present and plan for the future.
The program helps them understand that Canada is a safe
place where people of diverse backgrounds work together, notagainst each other.

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Stakeholder Engagement
continued from previous page

Mission S.O.F.T.
For the past two years, P&G Professional, in partnership withhotel associations, has supported U.S. homeless shelters with
soft, clean linens in a program called Mission S.O.F.T. (Start Out
Fresh Today).
P&G Professional seeks donations of gently used linens fromhotels, then launders them with products from the P&G Pro
Line™ On-Premise Laundry program (Tide detergent, Downyfabric softener and Clorox bleach). The linens are given to local
shelters so displaced people can experience something themore fortunate take for granted – the feel of soft, clean sheets.
To date, the program has collected, laundered and donatedalmost 27,000 soft and clean linens to homeless shelters in
23 cities across the United States.

Authorities: Local – Regional – Global
P&G communicates with local, regional and global authorities
directly, as an individual company, as well as through industry
associations. Scientists and legal experts in the P&G External
Relations organization review existing and proposed legislationthat is relevant to the Company and work with authorities toensure that policies take the needs and experience of business
into account. This is done via meetings with the authorities
and comments on their position papers and industry position
papers. Activities like these can be very important to ensure
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 with nongovernmentalorganizations (NGOs) to understand their concerns and cares.
In order to work constructively with stakeholders, it is essential
to have their conﬁdence and to be seen as a reliable and open
discussion partner. By building an open relationship we canapproach our NGO partners when issues arise. There is a wide
range of NGOs varying by area of interest (environmental,
consumer, animal welfare, etc.), by attitude (from extreme tomoderate) and by their geographic links (from local to global).
Depending on their characteristics, a number of NGOs can beseen as the vocal spokespeople for the general public.
Consumer organizations exist in many countries. These
organizations contact companies to compare products
and voice comments they receive from their members.
P&G continuously provides consumer organizations withinformation on new initiatives and cooperates with them inanswering consumer questions.

27,000 soft andclean linens tohomeless sheltersin 23 cities
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Stakeholder Engagement
continued from previous pageP&G France Celebrates 15 Yearsof Seashore Preservation
This year is the 15th anniversary of P&G’s long-term
commitment to the French government’s seashore protection
agency Conservatoire du Littoral and its scientiﬁc programs
and communication.
In 1992, P&G France created the P&G Foundation for
Seashore Protection in a unique private company/publicagency partnership with the Conservatoire du Littoral. The
Foundation has had two key missions: funding and developing
environmental research and helping the Conservatoire
communicate its accomplishments, thus enhancing theorganization’s scientiﬁc credibility. The Foundation has given
P&G France stronger visibility in the environmental sphere,
especially with government agencies. As a result, P&G France
was appointed to the commission preparing The French
Environmental Charter, which became part of the French
constitution in 2005.
The Foundation is marking the anniversary by engaging
stakeholders in debate to raise awareness of environmental
philanthropy, which is being developed in France. The Foundationis renewing its programs for another ﬁve-year period, focusing on
the new research theme Protecting Biodiversity.
The Foundation is also embarking on a new mission, in linewith P&G’s global Live, Learn and Thrive corporate cause– to make seashores accessible to disabled children. While
protected coastal areas are natural sites and rarely accessible tohandicapped children, P&G and the Conservatoire believe thatthe seashore should be open to all. To make this possible, theP&G France Foundation is funding day trips to the seashore,in partnership with the Conservatoire du Littoral and the
Association des Paralysés de France (French Association for
the Disabled). In 2008, the P&G France Foundation plans to
help families with disabled children to take vacations at theseashore by paying for supplementary costs incurred becauseof the handicap.

The Foundation is marking
the anniversary by engaging
stakeholders in debate
to raise awareness ofenvironmental philanthropy
and is renewing its programs
for another ﬁve-year period.

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Stakeholder Engagement
continued from previous page

Heaven Scent

Sowing the Seeds of Passion

Forty UK employees from Egham’s R&D labs left their
computers, donned wet weather clothing and rolled up theirsleeves to do some gardening. They created a “sensory garden”
for The Children’s Trust, a national charity working with children
who have multiple disabilities and complex health needs.

P&G employees in Poland are sharing their skills and passions
with local children via the Targówek Children’s Club – Seeds
of Passion. They’ve worked since 2005 with the children of
Targówek, a neighborhood near the P&G ofﬁce in Warsaw.

Five teams worked through a showery day to create a raisedbed garden for the ﬁve senses. It incorporated the Trust’s
butterﬂy logo, paths and a family rest area. They named thegarden Heaven Scent. P&G provided all the tools, plants,
tables, seating and building materials, totalling about £10,000(US$20,000).
P&G’s director of Health & Beauty Professional, Safety &Regulatory Services in the UK said the employees appreciated theopportunity to improve children’s lives. “The joy on the faces of
the children who were able to attend was plain to see. I’m reallyproud of what we’ve achieved in a tight, one-day schedule.”
Oonagh Goodman, corporate relations manager at The Children’s
Trust, said, “We are delighted with the results, which will makesuch a tremendous difference to the children and their families.
Indeed, none of this would have been possible if P&G had notbeen so generous with not only their funding of the project
but also their employees’ time. They have been amazing.”

Web

For more information on The Children’s Trust, please
visit www.thechildrenstrust.org.uk

The Children’s Club was established in cooperation with thelocal primary school. Its objective is to provide children with
opportunities to gain skills and realize their full potential.
Normally, the children of Targówek spend much of their timein the streets and backyards of their houses, with limited
opportunities to develop their talents.
In after-school classes, Poland’s P&Gers share their passion
for photography, ﬁlm, IT, English, model making, drama anddance. P&Gers also organize trips to places such as a TV station
and ballet school. The children have acted in short ﬁlms with
Moma Film and visited the P&G ofﬁces and plant.
In 2006, The P&G Fund granted additional money to
the Children’s Club. With this funding, the local schoolgained a new basketball court, and the school’s rooms
were redecorated. Eighty P&Gers provided labor for theredecoration. P&G also donates money and materials to
Blyskawica, the local children’s soccer club.
Plans call for opening a site speciﬁcally for the Children’s Club.
It will include professional model-making workshops, reﬂecting
particular interest in the model making team led by a P&G
plant employee. Children in the modeling workshops won
prizes in a national balloon competition.

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Stakeholder Engagement
continued from previous page

Consumer Relations
At P&G we ﬁrmly believe that “The Consumer is Boss.” We
are committed to meeting the needs of our consumers andproviding products and services that improve their lives.
We embrace and promote this mindset throughout thedevelopment and marketing of our products.
We set out to delight consumers by bringing to market only
new products and product improvements that genuinely meettheir needs. Before establishing a project for a new product or
product improvement, P&G technologists research consumer
needs in-depth to identify and understand those needs that are
not adequately met today.

These consumer insights are so valuable to us that we have
implemented smart technology solutions to “connect” ourbusiness teams with their consumers. We provide a variety of
regular reports, share selected edits from actual consumer calls
as well as run Consumer Relations “road shows” in a variety of
P&G sites.
In Global Consumer Relations, we recognize that we are lucky
enough to have not one, but two bosses – our consumers,
whom we continually strive to delight, and also our internalbusiness customers, who anxiously await the valuable insightsthat our consumers provide.

Following thorough screening of these products to ensure
safety and compliance with all relevant legal requirements,
P&G market researchers appoint panels of consumers to try out
the products and answer the key question: Are these products
noticeably better – in real life? Based on what consumers tell
us in these early trials, the test product may be rejected or
adapted and improved.

Consumers contact us with a range of questions, not just about
our products, but also important topics such as animal testing,waste management and others. There are more details about
P&G’s efforts in these key areas elsewhere in this report.

Our commitment to our consumers does not stop there.
When our products reach the market, we want to hear
about consumers’ experiences with them – good and bad!
We encourage consumers to contact our Global Consumer
Relations team via phone, letter or e-mail, whichever is themost convenient method for them. On average, we engage
with over 7 million consumers every year who contact P&G
looking for help and advice across our wide range of products.
Consumers contact P&G, from all over the world, withquestions, problems and sometimes just to tell us that they
love one of our brands. Whatever the question, our highly
trained advisors will listen, seek to understand the question or
problem, and help the consumer to resolve this – usually withinjust a single call.

We set out
to delight
consumers.

Whilst our immediate priority is the consumer – answering
their question or solving their problem quickly andprofessionally, this interaction also provides a super opportunity
for us to listen to and learn from our consumers. Consumers
who take the time to contact a company for advice or asking
for help to resolve a problem provide valuable insights on our
products, which can really help us to develop our business byimproving our brands.

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continued from previous page

Advertising Policy and Sustainable Development
If sustainable development is about ensuring a better qualityof life for everyone, now and for generations to come,then advertising plays a key role. Advertising helps informconsumers about products and services and facilitates
consumer choice. After all, it is consumers themselves who are
best placed to choose how best to improve their own qualityof life.
We believe advertising contributes to sustainable development
in a variety of general and speciﬁc ways. Achieving
sustainability in the marketplace requires effective competition
to drive innovation and increased efﬁciency. Competition
thrives on advertising, and advertising thrives on competition.
Innovation leads to better products and services, and morevariety and choice for consumers.
There are also many speciﬁc business-building opportunities inwhich advertising contributes to sustainable development byimproving lives around the world. Advertising:• Often involves health education and awareness raising indeveloping countries, such as in P&G’s Healthy Smiles dental
health campaign in China.
• Provides social or environmental messages as part of public
service or corporate campaigns. P&G’s Open Minds campaign
in India, for example, raised public awareness of the plight ofIndia’s working street children while collecting money to fundtheir education.
• Promotes innovative products that have environmental orsocial beneﬁts.
• Promotes more sustainable use of existing products tomaximize environmental or social beneﬁts. For example,
the WashRight campaign, run in Europe by P&G and othermembers of the European Detergents Association, promotes
correct usage of laundry products and efﬁcient use of waterand energy.
• Communicates the sustainability attributes and performanceof companies and other organizations offering products
and services as the public increasingly wants to know more
about them.

Spreading awareness of how other people live is one of theinevitable consequences of the global media revolution. We
do not accept that people in developing countries should bedenied a better quality of life. The ﬁrst priority of sustainableconsumption must be to provide access to adequate
consumption opportunities for everyone. Nearly half theworld’s population lives on less than $2 per day. They needaccess to adequate products and services that can improvetheir daily lives.
In developed countries, the idea that advertising fuels overconsumption overplays the importance of advertising, since
it cannot make people buy things they do not want or need.
Advertising can inform and inﬂuence and help consumers
make more informed decisions, but it is consumers whochoose how best to improve the quality of their own lives.
Advertisers alone are unable to regulate the overall demand forgoods and services.
However, there are clear responsibilities, as well as
opportunities, for advertisers such as P&G. There is a
responsibility to ensure truth in advertising and to ensure thatmessages are legal, decent and honest. We also assume our
responsibility to ensure the sensitive portrayal of all groups insociety, including women, children, the elderly and minorities.
For this reason, P&G actively supports truth-in-advertisingmechanisms and conforms to relevant national codes andguidelines wherever we operate.

Despite contributions to sustainable development, advertising’srole and effects have been questioned. Advertising has been
blamed for spreading Western lifestyles around the world andfor promoting excessive consumption in developed countries.

continued on next pageStrategies and Goals
Strategy 5

P&G 2007 Global Sustainability Report74

Stakeholder Engagement
continued from previous page

Cordial Help Goes to the HeartP&G Russia ran its ﬁrst cause-related marketing project thisyear. The cause was children needing heart surgery.
Every year, more than 10,000 Russian children needcomplicated and expensive heart surgery. Although staffedwith highly professional doctors, most Russian hospitals do
not have vitally important equipment such as pacemakers andoccluders. The average cost of such items is about US$5,000.
Many children suffer because they do not receive timely
medical help.
In August and September 2006, P&G teamed with the Russiancharity organization Life Line and many celebrities for theCordial Help program. Nine P&G brands – Ariel, Tide, Myth,
Lenor, Tix, Ace, Fairy, Comet and Mr. Proper – donated moneyfor every package sold during this period. Cordial Help received
US$170,000, enabling 39 children from six regions in Russia toreceive life-changing surgery.

Cordial Help brings
heart surgery to
Russian children.

Pampers Fights Tetanus
in Mothers and Babies
Pampers UK has run a joint campaign with UNICEF UK and
UNICEF Ireland to provide tetanus vaccinations to vulnerable
mothers and their babies in developing countries. The vaccine
protects against maternal and neonatal tetanus.
For every pack of Pampers diapers purchased during the
campaign in fall 2006, Pampers UK donated funding to UNICEF
equivalent to the cost of one tetanus vaccination. The campaign
resulted in a donation of almost 7.5 million vaccines. UNICEF
distributed the vaccinations through its immunization program.
Tetanus is still a major public health problem in developing
countries. There are an estimated half-million cases every year,
killing approximately 200,000 babies and 30,000 mothers.
The true extent of the tetanus death toll is unknown as the
populations at highest risk tend to live in rural areas andhave little access to health care and birth registration. Many
newborns and mothers die at home, and neither the birth nor
the death is reported. For this reason, tetanus is often called
the “silent killer.” Once a mother has been given the vaccine,
antibodies pass to the fetus through the placenta and provide
protection for both mother and baby.
P&G Japan completed a similar campaign, donating almost 21
million yen to UNICEF, generated by sales of Pampers diapers.
The money was used as operating funds for the Maternal andNeonatal Tetanus Elimination Project in Cambodia.

continued on next pageStrategies and Goals
Strategy 5

P&G 2007 Global Sustainability Report75

Stakeholder Engagement
continued from previous page

Suppliers
Sustainability Guidelines for Supplier Relations
The foundation of our Sustainability Guidelines for Supplier
Relations is our Statement of Purpose, Values and Principles.
We operate within the spirit and letter of the law and maintainhigh ethical standards wherever we conduct business. We will
actively seek business relationships with suppliers who share
our values and promote the application of these high standards
among those with whom they do business. The Sustainability
Guidelines for Suppliers can be downloaded at:Webwww.pg.com/content/pdf/01_about_pg/ 01_about_
pg_homepage/about_pg_toolbar/ download_report/
guidelines_for_supplier_relations.pdf

Summary of our supplier guidelines:
1. We expect our suppliers to comply with all applicable lawsof their country, including laws 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 to criminal
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 a bribe or personal
payment by P&G employees is strictly prohibited. Even inlocations where such activity may not, technically speaking,be illegal, it is absolutely prohibited by Company policy.
3. P&G supports universal human rights, particularly those of
our employees; the communities within which we operate;
and the parties with whom we do business. In our businessaward decisions, we will continue to place substantial value
upon incumbent and potential suppliers who consistently
respect basic human rights.
4. P&G utilizes fair employment practices, as well as strives toprovide a safe, healthy and productive work environment
for its employees. The Company respects employees’ rightto freedom of association, third-party consultation andcollective bargaining where allowed by law. The Company
expects suppliers to uphold the same standards. Speciﬁcally:• We will not conduct business with suppliers employing
child, prison, indentured or bonded labor, or using
corporal punishment or other forms of mental and physicalcoercion as a form of discipline.

• We expect suppliers to conduct their business without
unacceptable worker treatment such as harassment,
discrimination, physical or mental punishment, or otherforms of abuse.
• At a minimum, we expect our suppliers to comply with allapplicable wage and hour laws, and rules and regulations,
including minimum wage, overtime and maximum 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 theenvironment. At a minimum, suppliers must meet all
current, applicable environmental rules, regulations andlaws in their countries.
The management system is owned by the Global Vice President– Purchasing and has three components:
1. Communicate – All purchasing personnel who interface
with suppliers are trained on the supplier guidelines andhow to conduct supplier assessments. We communicate
the guidelines to our suppliers once a year and reinforce our
expectations in our contracts. This makes compliance with theguidelines a condition of business and therefore grounds fordisqualiﬁcation for all new and ongoing supply agreements.
2. Check – Ongoing periodic performance assessments aredone as part of regular commercial and technical suppliervisits. Emphasis is placed on suppliers that are high-risk
because of country of operation or potential hazard. In
addition to these internal assessments, we have third-party
assessments to identify areas for improvements. This year wecompleted a set of third-party assessments in Asia, Eastern
Europe and Latin America. The main area for improvement
was providing better examples of potential outages as part ofour ongoing training of internal purchasing personnel.
3. Correct non-compliance – When potential non-complianceissues are identiﬁed, they are communicated to the supplieras part of the closing meeting. Corrective actions including
formal notiﬁcation and a remediation action plan are thenimplemented. In some cases we require immediate action
to achieve compliance, or we halt business. These include
child or forced labor and egregious health and safety
violations presenting immediate danger to human health.
If a compliance issue is not resolved in a timely manner, thebusiness relationship is terminated.
continued on next pageStrategies and Goals
Strategy 5

P&G 2007 Global Sustainability Report76

Stakeholder Engagement
continued from previous page

Supplier Diversity Program
In 1972, P&G established a program to identify and work withminority-owned businesses in the United States. Today, theSupplier Diversity Initiative is a fundamental business strategy
which identiﬁes and works with minority- and women-owned
businesses. The Global Vice President – Purchasing serves as
Executive Sponsor.
Minorities continue to become a more substantial part ofAmerica’s population, and women continue to be P&G’s key
consumer base. As such, P&G is committed to remain at aleadership level because it is good for our business and goodfor the health of the U.S. economy.
In 2006-2007, spending with minority- and women-owned
suppliers exceeded $1.8 billion. This spending accounted forabout 8.5 percent of P&G’s total U.S. spending. This is the thirdyear in a row P&G has exceeded $1 billion in spending. P&G
achievements are recognized by the Company’s inclusion in theBillion Dollar Roundtable, a forum of 14 top corporations thatspend more than $1 billion annually with diverse suppliers.

Awards and Recognitions
P&G annually receives recognition for its work, its character, its
brands and its community contributions. We are highlighting
a few.
P&G ranks on several Fortune magazine lists including:• Best Companies to Work For• America’s Most Admired Companies
Web• Top Companies for Leaders
P&G also continues to maintain its listing among leading
indexes like FTSE4Good and the Dow Jones Sustainability Index.

FTSE4Good
Dow Jones
Sustainability Index
Member 2007/08

Strategies and Goals
Strategy 5

Principal Industry and Business Associations
P&G holds membership in many industry, business andenvironmental associations whose activities are related to
the Company’s.
Europe, Middle East and Africa
Advertising Associations: WFA – World Federation of Advertising
Chemical Industry Associations: CEFIC – European Chemicals
Industry Association; DUCC – Coalition of Downstream Users
Cosmetics Industry Associations: COLIPA – Cosmetics & Fragrances
Industry
Detergent Industry Associations: AISE – Association Internationale
de la Savonnerie de la Detergence et des Produites d’Entretien
Employer Associations: UNICE – Union of Industrial & Employers’
Confederation of Europe
Environmental Associations: ECETOC – European Center for
Ecotox and Toxicology of Chemicals; EUROPEN – The European
Organization for Packaging and the Environment
Euro/American Business Associations: AECA – American European
Community Associations; EU Committee of AmCham
Food Associations: CIAA – European Food Industry Association;
CIES – Food Business Forum
Grocery/Brand Associations: AIM – European Brands Association
Multistakeholder Associations: EPE – European Partners for theEnvironment
Paper Associations: EDANA – European Industry of Non-Woven
Products; HAPCO – European Industry of Hygiene Paper
Products
Pet Food Industry Associations: PFMA – Pet Food Manufacturers
Association
Pharmaceutical Associations: AESGP / OTC Manufacturers
Association; FPIA – Pharmaceutical Industry Association
North America
American Chemical Society
American Industrial Health Council
American Legislative Exchange Council
Association of National Advertisers
Business for Social Responsibility
Business Roundtable
Canada’s Research-Based Pharmaceutical Companies (Rx&D)
Canadian Chamber of Commerce
Canadian Chemical Producers Association
Canadian Manufacturers and Exporters
Canadian Consumer Specialty Products Association
Canadian Cosmetic, Toiletry and Fragrance Association
Consumer Specialty Products Association
Consumer Health Products Association
Cosmetic, Toiletry and Fragrance Association
CSR Canada – Corporations Support Recycling
Food and Consumer Products Manufacturers of Canada
Global Environment Management Initiative

P&G 2007 Global Sustainability Report

77

Grocery Manufacturers of America
Keep America Beautiful
National Conference of State Legislatures
National Environmental Development Association
National Food Processors Association
Non-Prescription Drug Manufacturers Association of Canada
Pharmaceutical Researchers and Manufacturers of America
Soap & Detergent Association
Soap & Detergent Association of Canada
The Council of State Governments
U.S. Council for International Business
Water Environment Research Foundation
Latin America
ABIPLA – Brazilian Association of Household Cleaning Products
ANALJA – Colombian Soaps and Detergent Manufacturers
Association
Argentinian National Industry Association
ASOQUIM – Venezuelan Association of the Chemical Industry
CANIPEC – Mexican Association of the Cosmetics and Perfumes
Industry
Cámara Nacional de la Industria de Aceites, Grasas, Jabones y
Detergentes, Mexico
Cámara Nacional de las Industrias de la Celulosa y del Papel
Confederación Patronal de la República Mexicana
CONCAMIN – Confederación de Cámaras Industriales
Asociación Nacional de la Industria Química, Mexico
AMECE – Asociación Mexicana de Estandares para el ComercioElectronico
Asociación Mexicana de Fabricantes de Pañal Desechable y
Similares, A.C. (AMPADE)CONAR – Consejo de Autorregulación y Etica Publicitaria, Mexico
COMCE – Consejo Mexicano de Comercio Exterior
CONMEXICO – Consejo Mexicano de la Industria de Productosde Consumo
CAVEME – Venezuelan Pharmaceutical Products Association
CEVEDES – Venezuelan Business Council for Sustainable
Development
ANDA – Venezuelan Association of Advertisers
CONINDUSTRIA – Industrial Confederation of Venezuela
CONAR – Chilean Advertising Self–Regulation and Ethics Council
SOFOFA – Manufacturers Industry Association
Chamber of the Cosmetic Industry of Chile
AmCham – Chilean American Chamber of Commerce
Chilean–Brazilian Chamber of Commerce
ANDA – National Advertisers Association Chile
Latin America Federation of Waste Management
Peru – Sociedad Nacional de Industrias

continued on next pageStrategies and Goals
Strategy 5

P&G 2007 Global Sustainability Report78

Principal Industry and Business Associations
continued from previous page

Asia
State Committee of Cosmetic Industry
Asia/Paciﬁc Economic Cooperation
Australian Consumer & Specialty Products Association
China – AmCham
China – CC of Foreign Invested Enterprises GZ
China – Academy of Environment Science
China – Association of Enterprises with Foreign Investment
China – Association of Fragrance, Flavor and Cosmetic Industry
China – Daily Use Groceries Association
China – Detergent Products Industry Association
China – Environmental Health Safety Roundtable
China – Association of Surfactant, Soap and Detergent Industries
China – Hygiene Supervision Magazine
China – Hygienic Material & Technology Association
China – National Household Paper Industry Association
China – Standardization Association
China – Standardize Technological Consulting Service Center
China – China Toothpaste Industry Association
China – GD Associated Net for Anti-Counterfeit & High-Quality
Protection
China – GD Fragrance Flavor Cosmetic Branch of GD Light Industry
Association
China – Guangdong Quality Magazine
China – Guangdong Quality Management Association
China – Guangzhou Municipal Foreign Trade Investment Law
Association
China – Guangzhou Municipal Lawyers’ Association
China – Guangzhou Quality Inspection Association
China – Guangzhou Trademark Association
China – GZ “Three” Associations of Economic & Technological
Development District
China – GZ Association of Enterprises with Foreign Investment
China – GZ Education Fund Association
China – GZ Industry & Commerce Administration Management
Institute Branch of Foreign Investment
China – Living Use Paper Specialized Committee of China Paper
Making Institute
China – National Bar Code Association
China – National Environment Hygiene Standard Specialized
Committee (MOH)
China – Perfume / Fragrance Magazine
China – Quality Management Association
China – State Committee of Cosmetics Industry Standardization(SBQTS)
China – State Technical Committee of Paper Making Industry
Standardization
China – State Technology Committee of Food Industry
Standardization
China – Tianjin Association of Enterprises with Foreign Investment

Hong Kong – The Cosmetic and Perfumery Association of Hong
Kong
Hong Kong – The Hong Kong Association of the PharmaceuticalIndustry
India – Associated Chambers of Commerce and Industry of India
India – Confederation of Indian Industry
India – Federation of Indian Chambers of Commerce and Industry
India – Feminine & Infant Hygiene Association
India – Indian Soap & Toiletries Makers’ Association
Indonesia – Indonesian Cosmetics Association
Indonesia – Indonesian Food & Beverage Industry Association
Indonesia – Indonesian Moslem Scholar Association
Indonesia – Indonesian Pulp & Paper Association
Indonesia – Indonesian Tissue Paper Association
Indonesia – National Standardization Body
Indonesia – Pharmaceutical Industry Association
Japan – Japan Cosmetic Industry Association
Japan – Japan Health and Nutrition Food Association
Japan – Japan Hygiene Product Industry Association
Japan – Japan Soap and Detergent Association
Japan – Pharmaceutical Association of Japan
Korea – American Chamber of Commerce
Korea – Association for Fair Trade of Tissue & Hygiene Products
Korea – EU Chamber of Commerce
Korea – Korea Chemical Management Association
Korea – Korea Cosmetics Industry Association
Korea – Korea Food Industry Association
Korea – Korea Food Traders Association
Korea – Korea Hygiene Paper Product Association
Korea – Korea Paper Manufacturers’ Association
Korea – Korea Pharmaceutical Trade Association
Malaysia – American Malaysian Chamber of Commerce(AmCham)
Malaysia – Federation of Malaysian Manufacturers – FMM Food
Manufacturer
Malaysia – Malaysian International Chamber of Commerce andIndustry – MICCIMalaysia – The Cosmetic, Toiletry & Fragrance Association of
Malaysia – CTFA
Philippines – Soap & Detergent Association of the Philippines
Philippines – Cosmetic, Toiletry & Fragrance Association of thePhilippines
Singapore – The Cosmetic, Toiletry & Fragrance Association of
SIngapore – CTFAS
Taiwan – Taiwan Cosmetic Industry Association
Taiwan – Taiwan Paper Industry Association
Taiwan – Taiwan Soap & Detergent Industry Association
Thailand – Federation of Thai Industries
Thailand – Thailand Soap & Detergent Association
continued on next pageStrategies and Goals
Strategy 5

Principal Industry and Business Associations
continued from previous page

Worldwide
Conference Board
International Chamber of Commerce
Society of Environmental Toxicology and Chemistry
World Business Council for Sustainable Development

P&G 2007 Global Sustainability Report

79

Personal Information Privacy
Advances in computer technology have made it possible fordetailed information to be compiled and shared more easily
and cheaply than ever, around the globe. That can be goodnews for society as a whole and for individual consumers.
At the same time, as personal information becomes moreaccessible, each of us – companies, associations, government
agencies, consumers – must take precautions against
misuse of that information. Several countries already havelaws protecting consumers from misuse of their personal
information, and many others are following suit.
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 trustof consumers and all others who do business with us,
including employees, shareholders, retail customers andrecruitment candidates.
P&G’s robust privacy program is managed by a Global Privacy
Council. Our ﬁrst objective is to protect an individual’s
personally identiﬁable information as if it were our own. All
outside companies handling data on our behalf are required
to abide by our privacy principles. Third-party companies canaccess our privacy and security guidelines on pgsupplier.com.
Externally, P&G has been a strong advocate of work within theindustry to protect the privacy of consumers. For example, P&G
has been a leader in the effort to make privacy notices moreconsumer friendly and has recently made our online marketingstatement available in 39 languages.

Web

For more information on P&G’s global privacy
principles, please visit:www.pg.com/company/our_commitment/privacy_
policy/privacy_policy.jhtml
P&G adheres to U.S./European Union Safe Harbor
principles. For more information, visit:www.export.gov/safeharbor/

In the United States, P&G is an active participant in the Better
Business Bureau Reliability and Privacy Seal Program.

P&G 2007 Global Sustainability Report

80

Index
This is the ninth Sustainability Report for P&G’s worldwide
operations. Data in this report covers the period from July 1,
2006, through June 30, 2007. 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 topromote international 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 ofthis report, nor does it take a position on the reliability of
information reported herein.

Web

For further information about the GRI,
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

IndexP&G 2007 Global Sustainability Report81

ProfileDescription

1.1
1.2
2.1
2.1
2.2
2.3
2.4
2.5

Statement from the most senior decision-maker of the organization.
2
Description of key impacts, risks, and opportunities.
3, 20-79
Name of the organization.
5
Awards received in the reporting period.
76
Primary brands, products, and/or services.
6-7
Operational structure of the organization.
12-16
Location of organization’s headquarters.
5
Number of countries where the organization operates, and names of countries with either major operationsor that are specifically relevant to the sustainability issues covered in the report.
5, 14-15
Nature of ownership and legal form.
5Markets served.
5
Scale of the reporting organization.
5-8
Significant changes during the reporting period regarding size, structure, or ownership.
9
Reporting period.
5
Explanation of the effect of any re-statements of information provided in earlier reports.
21, 33Significant changes from previous reporting periods in the scope, boundary, or measurement methods appliedin the report.
21, 33
Table identifying the location of the Standard Disclosures in the report.
1, 80- 84
Policy and current practice with regard to seeking external assurance for the report.
80
Date of most recent previous report (if any).
Financial Year 2005/06
Reporting cycle (annual, biennial, etc.).
AnnualContact point for questions regarding the report or its contents.
85
Process for defining report content.
3
Boundary of the report.
21, 33
State any specific limitations on the scope or boundary of the report.
21, 33Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities
that can significantly affect comparability from period to period and/or between organizations.
33
Data measurement techniques and the bases of calculations.
21
Governance structure of the organization.
17-19
Processes for evaluating the highest governance body’s own performance.
18
Explanation of whether and how the precautionary approach or principle is addressed by the organization.
24-26
Externally developed economic, environmental, and social charters, principles, or other initiatives
to which the organization subscribes or endorses.
36, 55
Memberships in associations.
77-79
List of stakeholder groups engaged by the organization.
77-79
Basis for identification and selection of stakeholders with whom to engage.
66-76
Approaches to stakeholder engagement.
66-76
Key topics and concerns that have been raised through stakeholder engagement.
66-76
Indicate whether the Chair of the highest governance body is also an executive officer.
2
For organizations that have a unitary board structure, state the number of members of the highest
governance body that are independent and/or non-executive members. State how the organization
defines ‘independent’ and ‘non-executive.’
18
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. 18
Linkage between compensation for members of the highest governance body, senior managers, andexecutives (including departure arrangements), and the organization’s performance.
18
Processes in place for the highest governance body to ensure conflicts of interest are avoided.
18
Process for determining the qualifications and expertise of the members of the highest governance bodyfor guiding the organization’s strategy on economic, environmental, and social topics.
18
Internally developed statements of mission or values, codes of conduct, and principles relevant
to economic, environmental, and social performance and the status of their implementation.
2, 3, 10-11
Procedures of the highest governance body for overseeing the organization’s identification andmanagement of economic, environmental, and social performance.
18

2.6
2.7
2.8
2.9
3.1
3.1
3.11
3.12
3.13
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
4.1
4.1
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.2
4.3

4.4
4.5
4.6
4.7
4.8
4.9

Page(s)IndexP&G 2007 Global Sustainability Report82

Indicator

Description

EC1

Economic value generated and distributed, including revenues, operating costs, employee compensation,
donations and other community investments, retained earnings, and payments to capital providers
and governments. (Core)
8
Financial implications and other risks and opportunities for the organization’s activities
due to climate change. (Core)29, 36
Coverage of the organization’s deﬁned beneﬁt plan obligations. (Core)56
See ﬁnancial report www.pg.com/investors/annualreports.jhtml
Signiﬁcant ﬁnancial assistance received from government. (Core)See ﬁnancial report www.pg.com/investors/annualreports.jhtml
Range of ratios of standard entry level wage compared to local minimum wage at signiﬁcant locationsof operation. (Additional)
56
Note: P&G supports paying employees a competitive wage, as benchmarked against other leading companies.
Policy, practices, and proportion of spending on locally-based suppliers at signiﬁcant locations of operation. (Core)
9
Procedures for local hiring and proportion of senior management hired from the local community
at signiﬁcant locations of operation. (Core)
58-60
Development and impact of infrastructure investments and services provided primarily for public beneﬁt
through commercial, in-kind, or pro bono engagement. (Core)
42-53
Understanding and describing signiﬁcant indirect economic impacts, including the extent of impacts. (Additional) NA
Materials used by weight or volume. (Core)
33
Percentage of materials used that are recycled input materials. (Core)
33
Direct energy consumption by primary energy source. (Core)
33
Indirect energy consumption by primary source. (Core)
33
Energy saved due to conservation and efﬁciency improvements. (Additional)
34
Initiatives to provide energy-efﬁcient or renewable energy based products and services, and reductions
in energy requirements as a result of these initiatives. (Additional)
22, 29Initiatives to reduce indirect energy consumption and reductions achieved. (Additional)
29
Total water withdrawal by source. (Core)
33
Water sources signiﬁcantly affected by withdrawal of water. (Additional)
NA
Percentage and total volume of water recycled and reused. (Additional)
33, 35
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areasof high biodiversity value outside protected areas. (Core)NA
Description of signiﬁcant impacts of activities, products, and services on biodiversity in protected areas
and areas of high biodiversity value outside protected areas. (Core)
23-26, 28
Habitats protected or restored. (Additional)
70
Strategies, current actions, and future plans for managing impacts on biodiversity. (Additional)
23-26, 28
Number of IUCN Red List species and national conservation list species with habitats in areas affectedby operations, by level of extinction risk. (Additional)
NA
Total direct and indirect greenhouse gas emissions by weight. (Core)
33-36
Other relevant indirect greenhouse gas emissions by weight. (Core)
33-36
Initiatives to reduce greenhouse gas emissions and reductions achieved. (Additional)
34, 36, 40
Emissions of ozone-depleting substances by weight. (Core)33, 35NOx, SOx, and other signiﬁcant air emissions by type and weight. (Core)33, 35
Total water discharge by quality and destination. (Core)33, 38
Total weight of waste by type and disposal method. (Core)33, 37-38
Total number and volume of signiﬁcant spills. (Core)
39
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel
Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. (Additional)
33, 37
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)
NA
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. (Core) 34, 40
Percentage of products sold and their packaging materials that are reclaimed by category. (Core)33, 37
Monetary value of signiﬁcant ﬁnes and total number of non-monetary sanctions for non-compliancewith environmental laws and regulations. (Core)
39

EC2
EC3
EC4
EC5

EC6
EC7
EC8
EC9
EN1
EN2
EN3
EN4
EN5
EN6
EN7
EN8
EN9
EN10
EN11
EN12
EN13
EN14
EN15
EN16
EN17
EN18
EN19
EN20
EN21
EN22
EN23
EN24
EN25
EN26
EN27
EN28

N/A = Not applicable. P&G only reports on data that is relevant to the business. It does not collect data that is used solely for the sustainability report.

Page(s)IndexP&G 2007 Global Sustainability Report

83

Indicator

Description

EN29

Signiﬁcant environmental impacts of transporting products and other goods and materials used
for the organization’s operations, and transporting members of the workforce. (Additional)
NA
Total environmental protection expenditures and investments by type. (Additional)
39
Total workforce by employment type, employment contract, and region. (Core)
60
Total number and rate of employee turnover by age group, gender, and region. (Core)
NA
Note: We do not track this information globally.
Beneﬁts provided to full-time employees that are not provided to temporary or part-time employees,
by major operations. (Additional)
NA
Percentage of employees covered by collective bargaining agreements. (Core)
55
Also see http://www.pg.com/images/company/who_we_are/pdf/values_and_policies907.pdf
Minimum notice period(s) regarding signiﬁcant operational changes, including whether it is speciﬁed
in collective agreements. (Core)
NA
Note: We abide by local legislation and our PVPs.
Percentage of total workforce represented in formal joint management-worker health and safety committees
that help monitor and advise on occupational health and safety programs. (Additional)
61
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities
by region. (Core)
61
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members,
their families, or community members regarding serious diseases. (Core)57, 64-65
Health and safety topics covered in formal agreements with trade unions. (Additional)
61
Also see http://www.pg.com/images/company/who_we_are/pdf/values_and_policies907.pdf
Average hours of training per year per employee by employee category. (Core)
59-60, 63
Programs for skills management and lifelong learning that support the continued employability of employees
and assist them in managing career endings. (Additional)
59-60
Percentage of employees receiving regular performance and career development reviews. (Additional)
59-60
Composition of governance bodies and breakdown of employees per category according to gender,
age group, minority group membership, and other indicators of diversity. (Core)
60
Also see Proxy Statement http://www.pg.com/investors/annualreports.jhtml
Ratio of basic salary of men to women by employee category. (Core)10, 56Percentage and total number of signiﬁcant investment agreements that include human rights clausesor that have undergone human rights screening. (Core)
75
Percentage of signiﬁcant suppliers and contractors that have undergone screening on human rights
and actions taken. (Core)75
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)
NA
Total number of incidents of discrimination and actions taken. (Core)
56
Operations identiﬁed in which the right to exercise freedom of association and collective bargaining may beat signiﬁcant risk, and actions taken to support these rights. (Core)56, 75
Also see http://www.pg.com/images/company/who_we_are/pdf/values_and_policies907.pdf
Operations identiﬁed as having signiﬁcant risk for incidents of child labor, and measures taken to contributeto the elimination of child labor. (Core)56, 75
Operations identiﬁed as having signiﬁcant risk for incidents of forced or compulsory labor, and measures
to contribute to the elimination of forced or compulsory labor. (Core)56, 75Percentage of security personnel trained in the organization’s policies or procedures concerning aspectsof human rights that are relevant to operations. (Additional)
NA
Total number of incidents of violations involving rights of indigenous people and actions taken. (Additional)
NA
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)
61
Percentage and total number of business units analyzed for risks related to corruption. (Core)
17
Also see Worldwide Business Conduct Manual www.pg.com/company
Percentage of employees trained in organization’s anti-corruption policies and procedures. (Core)
17
Also see Worldwide Business Conduct Manual www.pg.com/company

EN30
LA1
LA2
LA3
LA4
LA5

LA6
LA7
LA8
LA9
LA10
LA11
LA12
LA13

LA14
HR1
HR2
HR3
HR4
HR5

HR6
HR7
HR8
HR9
SO1
SO2
SO3

N/A = Not applicable. P&G only reports on data that is relevant to the business. It does not collect data that is used solely for the sustainability report.

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84

Indicator

Description

SO4

Actions taken in response to incidents of corruption. (Core)
17
Also see Worldwide Business Conduct Manual www.pg.com/company
Public policy positions and participation in public policy development and lobbying. (Core)
19
Total value of ﬁnancial and in-kind contributions to political parties, politicians, and related institutions
by country. (Additional)
19
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices andtheir outcomes. (Additional)NA
Monetary value of signiﬁcant ﬁnes and total number of non-monetary sanctions for non-compliance with laws
and regulations. (Core)
39
Life cycle stages in which health and safety impacts of products and services are assessed for improvement,
and percentage of signiﬁcant products and services categories subject to such procedures. (Core)
24
Total number of incidents of non-compliance with regulations and voluntary codes concerning healthand safety impacts of products and services during their life cycle, by type of outcomes. (Additional)
NA
Type of product and service information required by procedures, and percentage of signiﬁcant products
and services subject to such information requirements. (Core)
6
Total number of incidents of non-compliance with regulations and voluntary codes concerning productand service information and labeling, by type of outcomes. (Additional)
NA
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. (Additional) 72
Programs for adherence to laws, standards, and voluntary codes related to marketing communications,
including advertising, promotion, and sponsorship. (Core)73
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing
communications, including advertising, promotion, and sponsorship by type of outcomes. (Additional)
NA
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer
data. (Additional)NA
Monetary value of signiﬁcant ﬁnes for non-compliance with laws and regulations concerning the provisionand use of products and services. (Core).
NA
Note: We do not track this information globally.

SO5
SO6
SO7
SO8
PR1
PR2
PR3
PR4
PR5
PR6
PR7
PR8
PR9

N/A = Not applicable. P&G only reports on data that is relevant to the business. It does not collect data that is used solely for the sustainability report.

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Copy Editor: Jan Sherbin

Design: RDG

P&G 2007 Global Sustainability Report

Contact
E-mail sustainrep.im@pg.com
Visit www.pg.com/sr for the full report.
© 2007 Procter & Gamble