Contents•

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New Vision & Goals•

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2011 SUSTAINABILITY REPORT

Commitment to Everyday Life
www.pg.com/sustainability

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2 of 76Contents
Introduction
P&G Sustainability Strategies���������������������������������� 3
CEO Statement������������������������������������������������������ 4
Leadership Statement�������������������������������������������� 5
P&G Report Card: 2012 Sustainability Goals���������� 6
P&G Profile ��������������������������������������������������������8
Products ����������������������������������������������������������19
Sustainable Innovation Products�������������������������� 20
Operations��������������������������������������������������������31
Resource & Waste Summary�������������������������������� 37
Social Responsibility������������������������������������������43
Employees & Stakeholders��������������������������������52
Sustainability Vision and Goals ������������������������69
Awards and Recognition ����������������������������������70

About this publication
This is the thirteenth Sustainability Report for P&G’s worldwide
operations. Data in this report covers the period from July 1,
2010, through June 30, 2011. Financial information is given in
U.S. dollars. This report was prepared using the Global Reporting
Initiative’s (GRI) G3 Reporting Guidelines. The mission of the GRI
is to promote international harmonization in the reporting of
relevant and credible corporate economic, environmental andsocial performance information to enhance responsible decision
making. The GRI has not verified the contents of this report,
nor does it take a position on the reliability of information
reported herein.

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

For further information about the GRI, please visit
www.globalreporting.org.
For the latest P&G news, in-depth information
on P&G’s brands, and for shareholder and career
information, please visit www.pg.com.

GRI Index����������������������������������������������������������70

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Contents•

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P&G Profile•

Products

At P&G, we’re committed todelivering products and services
that make everyday life better for
people around the world.

•

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Our opportunity to touch and improve lives comes with a responsibility
to do so in a way that preserves the planet and improves thecommunities in which we live and work. We’re continuing to makeprogress in our focus areas of Products, Operations and Social
Responsibility, enabled by our employees and our stakeholders.
Our Focus Areas

Our Enablers

We have set specific strategies and goals to ensure weare delivering continuous improvement toward each of
our focus areas.

In order to deliver our environmental and social programs, wemust engage our employees and stakeholders. Our objective is
to equip all P&G employees to build sustainability thinking
and practices into their everyday work. We will also worktransparently with stakeholders to enable us continued freedom
to innovate in a responsible way.

Products:
Delight the consumer with sustainable innovations that improve theenvironmental profile of our products
Operations:Improve the environmental profile
of our own operations

Employees

Social Reponsibility:
Improve children’s lives through oursocial responsibility programs

Stakeholders

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CEO Statement
P&G’s Purpose is to touch and improve lives, now andfor generations to come. Our growth strategy, whichis inspired by our Purpose, is to touch and improve
more consumers’ lives, in more parts of the world,
more completely.
One critical way we are executing this strategy is to reach andserve five billion people with our products and services by the
midpoint of this decade, up from less than four billion just two
years ago. We’re confident we can improve these billions of
lives if we can reach people where they shop with products andservices they need and want. But we also know that we mustachieve our growth sustainably and responsibly. To do otherwise
would be inconsistent with our Purpose and what we stand for asa Company.
Last year, we announced a new long-term environmental sustainability vision to guide our efforts. This vision is challenging andfar-reaching: 100% renewable energy to power all our plants,
100% renewable or recycled materials for our products andpackages, zero consumer and manufacturing waste related to our
products going into landfills. We don’t yet have all the answers
necessary to achieve this vision, but we are committed to making
disciplined, step-by-step progress through a series of ten-year
goals. We’re confident that with P&G’s size and scale, and withour capabilities and partnerships, we can make the difference inthe world to which we’re committed.
To ensure line of sight between our business and our sustainability
goals, we created the P&G Sustainability Board, which includes
executive officers from Product Supply, Research & Development,
Marketing, External Relations, and our North America business.
Each of these leaders is responsible for the systemic integration of
our sustainability strategy across these functions.
I serve as the executive sponsor of Sustainability at P&G because
I feel it is a critical leadership role that only the CEO can play.
My sponsorship and the leadership of the Sustainability Board
help ensure that our Purpose and our sustainability vision are integrated into each business unit and each of our key functions.

We see this integration most clearly in P&G innovation. The best
way to solve sustainability challenges is to innovate, which is at
the heart of our Company’s business model. We are creating
new materials, new technologies, and new ideas consumers will
embrace. We want to provide consumers with the quality andvalue they deserve without having to make trade-offs to be moresustainable. Innovation is how we do this, with solutions that
require fewer materials, use less energy and water, and produce
less waste.
We are also leveraging the ongoing demand for increasing
productivity as an accelerator of sustainability progress. Sustainability often enables productivity. For example, we operate more
effectively and efficiently by increasing the eco-efficiency of ourplants — reducing water usage, greenhouse gas emissions andwaste. We are also advancing research in renewable materials todevelop alternatives to petroleum, which is the most important
thing we can do to reach our long-term vision of making 100%of our products and packaging with renewable or recycledmaterials. (In the Products section of this report, you will see
two new items that are replacing petroleum with renewablematerials.) To put it simply, what’s good for business can also
be good for the environment.

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

Touching and improving lives also gives us the responsibility tohelp the communities in which we operate to prosper. We do thisthrough disaster relief and through programs that help children
and families in need around the world to live, learn and thrive. All
these programs allow us to help those who need help when andwhere they need it most. As a result, we not only improve life but
also create positive relationships with people that ultimately build
our business and allow us to do even more good.
The opportunity to make a difference that lasts generations —whether through our brands and services, our operations, ourenvironmental sustainability efforts, or our philanthropy — is what
attracts people of remarkable character and caliber to P&G.
We are committed, together, to improving life every single day.
We’re proud of the progress we make year after year, and we areinspired by the challenge to do more.

www.pg.com/sustainability

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Leadership Statement
In 2007, P&G established a series of five-yearsustainability goals. In this annual report, we present
the progress we have made over the past year andour cumulative progress since this program began.
We are pleased to report that we have already achieved severalof our five-year goals and continue to make important progressagainst the others.

making significant progress towards the new goals. Highlightsof this work include research into the development of renewablematerials for our major material classes, including developmentof plastic bottles made from sugarcane that are now used for
Pantene Nature Fusion sold in Western Europe. We have also
expanded our renewable energy portfolio by building our firstwind turbine, which provides 17% of the power for our Iams
pet food plant in the Netherlands.

For our Products goal, we have delivered $40 billion in Sustainable Innovation Products, and we are well on our way to exceed
our 2012 goal of $50 billion in cumulative sales. These products
haveat least a 10% improvement in their environmental profile
compared to a previous or alternative version of that product.
The compaction of our powder laundry detergents in North
America and the packaging changes we made in our Gillette
Fusion ProGlide Razors in Western Europe are examples of ourprogress in this area.

Solid waste continues to be an important issue to address forour industry. Our comprehensive solid waste strategy includes:(1) creating less solid waste by designing waste out of our
packaging and products, (2) driving the waste generated at
our manufacturing facilities that goes to landfill to zero, and(3) working with governments and industry partners to catalyze
the development of waste management systems that divert solid
waste from landfills or dumps to recycling and incineration withenergy recovery systems.

In our Operations, we have achieved a reduction per unit ofproduction of 16% in energy, 57% in waste, 12% in CO2, and
22% in water usage. Our 2012 goal is a 20% reduction in eachof these areas, so we have already achieved this goal for ourwater and waste reductions and continue to work towardachieving it for our CO2 and energy reductions.

We could not reach our vision and goals without the help of
P&G employees. Their passion, dedication, and expertise isinspiring. They are the ones taking the small and large steps tomake our Company more sustainable. Whether they are working
directly on our strategies and goals, initiating grassroots efforts
to undertake important sustainability projects, or passionately
serving in their communities outside of work, their stories are
inspiring. I hope you, too, will be inspired as you read about a
few of them in this report.

Relative to our social investments, we have already surpassed
our goal of enabling 300 million children to live, learn and thrive,
reaching a total of 315 million by June 2011. We have delivered
2.9 billion liters of clean drinking water, and are well on our way
to reach our goal of 4 billion liters. Key to this progress was the
expansion of our P&G Children’s Safe Drinking Water program,which provides clean drinking water through use of our PUR
technology, into four new countries. We are now delivering
PUR packets in 65 countries, with the help of 119 partners.
In September 2010, P&G announced a new long-term environmental sustainability vision. We also announced a series ofadditional 2020 goals, focused on Products and Operations.
We have made important strides to integrate our new vision into
each business unit and across all of P&G’s operations, and we are

Len Sauers
Vice President, Global Sustainability

To learn more about our long-termsustainability vision and goals, pleasesee page 69 of this report.

www.pg.com/sustainability

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P&G Report Card2012 Sustainability Goals
We set five-year goals in 2007 across our focus areas of
Products, Operations and Social Responsibility. In year four,
we are continuing our efforts to achieve each of our goals,
and as shown on the next page, we have already achieved
three of them.
Our long-term environmental vision and 2020 goals can befound on page 69.

www.pg.com/sustainability

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Products

P&G Report Card2012 Sustainability Goals•

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

Products

Operations

Social Responsibility

GOAL

GOAL

GOAL

Develop and market at least $50 billion in cumulative
sales of “Sustainable Innovation Products,” which areproducts that have an improved environmental profile.(1)Deliver an additional 20% reduction (per unit ofproduction) in energy consumption, CO2 emissions,disposed waste, and water consumption from P&G
facilities, leading to a total reduction over the decadeof at least 50%.

Enable 300 million children to Live, Learn and Thrive.(1)Prevent 160 million days of disease from unclean waterand save 20,000 lives by delivering 4 billion liters ofclean water through our P&G Children’s Safe Drinking
Water program.(2)PROGRESS (in U.S. dollars)

PROGRESS (percent reduction per unit of production)

PROGRESS

Since July 2007

Cumulative sales of Sustainable
Innovation Products

40$billion

Since July 2007-16 -52%

Energy Usage-12 -53

GOAL
MET

Waste Disposal(1)

Water Usage(1) Sustainable Innovation Products are included if they have launched in market since
July 1, 2007, and have a >10% improvement compared to the previous or alternative
product in one or more of the following indicators without negatively impacting
the overall sustainability profile of the product: A. Energy, B. Water, C. Transportation,
D. Amount of material used in packaging or products, E. Substitution of nonrenewable energy or materials with renewable sources.

%%

CO2 Emissions

GOAL
MET

Since July 2002%

-57 -61%

Since July 2007

GOAL
MET

(1) Total waste disposed includes non-hazardous and hazardous solid waste,
air emissions, and strength of effluent measured as chemical oxygen demand.

millionNumber of Children Reached
P&G Children’s Safe
Drinking water program

Liters of Clean Water Delivered

2.9

billion115%-22% -58%

315

Live, Learn and Thrive

Days of Disease Prevented

Lives Saved

million>14,000(1) Live, Learn and Thrive (LLT) is P&G’s global cause that focuses our social
investments on efforts that improve the lives of children in need.
(2) Within Live, Learn and Thrive, our signature program is P&G Children’s Safe
Drinking Water. Methodology for calculating diarrheal days and mortality wasdeveloped with Population Services International and Aquaya Institute. Details areprovided on page 51 of this Report.

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P&G touches and improves the lives of about 4.4
billion people around the world with its portfolioof trusted, quality brands. The Company’s
leadership brands include Pampers®, Tide®, Ariel®,
Always®, Whisper®, Pantene®, Mach3®, Bounty®,
Dawn®, Fairy®, Gain®, Pringles®, Charmin®, Downy®,
Lenor®, Iams®, Crest®, Oral-B®, Duracell®, Olay®, Head
& Shoulders®, Wella®, Gillette®, Braun®, Fusion®, Ace®,
Febreze®, and Ambi Pur®.

P&G Profile

P&G’s world headquarters is located inCincinnati, Ohio, U.S.A. The P&G community
includes approximately 127,000 employees
working in about 80 countries worldwide. Our
products are sold in more than 180 countries
primarily through mass merchandisers, grocery
stores, membership club stores, drug stores,and “high frequency stores”, the neighborhood
stores which serve many consumers indeveloping markets. We continue to expand ourpresence in other channels including department
stores, perfumeries, pharmacies, salons, ande-commerce.
P&G is a publicly owned company. Its stock islisted and traded on the New York and Paris
exchanges.

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

50 Leadership Brands Worldwide

24 Billion-Dollar Brands

Innovation Leadership

Generating Sales and Profits

P&G’s 50 Leadership Brands are some of theworld’s most well known household names.

24 of these 50 brands each generate morethan one billion dollars in annual sales.

In the past 16 years, P&G has had 132
products on SymphonyIRI Group’s list ofeach year’s 25 most successful new
products, more than our six largest
competitors combined.*

These 50 brands represent 90% of P&G
sales and more than 90% of profits.

*Source: SymphonyIRI Group 2010 New Product Pacesetters™ report (non-food brands), March 22, 2011 (measured as
total year-one dollar sales across food, drug, and mass channels, excluding Walmart).

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P&G at a Glance
Financial Highlights (unaudited)

2011NetNetSales
Sales
2011

Amounts in millions, except per share amounts

Net Sales
Operating Income

2011

2010

2009

2008

2007

$82,559$78,938$76,694$79,257$72,441

15,81816,021

15,374

15,97914,485Net Earnings

11,797

12,736

13,436

12,075

10,340Net Earnings Margin from Continuing Operations

14.3%

13.9%

13.9%

14.2%

13.3%

Diluted Net Earnings per Common Share from Continuing Operations

$3.93

$3.53

$3.39

$3.40

$2.84

Diluted Net Earnings per Common Share

3.93

4.11

4.26

3.64

3.04

Dividends per Common Share

1.97

1.80

1.64

1.45

1.28

By business segment
19%

24%

Grooming

9%

Beauty% of
Net Sales*

24%

Grooming

9%

Health Care

14%

Snacks and Pet Care

4%30%

Fabric Care and Home Care

Baby Care and Family Care19%

% of Net
Earnings*

Categories

24% Cosmetics, Female Antiperspirant and Deodorant, Female
Personal Cleansing, Female Shave Care, Hair Care, Hair
Color, Hair Styling, Pharmacy Channel, Prestige Products,
Salon Professional, Skin Care
14% Electronic Hair Removal Devices, Home Small Appliances,
Male Blades and Razors, Male Personal Care
16% Feminine Care, Gastrointestinal, Incontinence, Rapid
Diagnostics, Respiratory, Toothbrush, Toothpaste, Water
Filtration, Other Oral Care
2% Pet Care, Snacks
27% Laundry Additives, Air Care, Batteries, Dish Care, FabricEnhancers, Laundry Detergents, Surface Care
17% Baby Wipes, Diapers, Paper Towels, Tissues, Toilet Paper

Billion Dollar Brands

Head & Shoulders, Olay,
Pantene, Wella

Health Care
Snacks & Pet Care

30%

14%
4%

Fabric Care & Home Care
Baby Care & Family Care

By geographic region

16%
Reportable Segment

BeautyNorth America
Western Europe

9%
41%
14%

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

20%

Braun, Fusion, Gillette,
Mach3
Always, Crest, Oral-B
Iams, Pringles
Ace, Ariel, Dawn,
Downy, Duracell, Gain,
Tide, Febreze
Bounty, Charmin,
Pampers

By market maturity
Developed
Developing

35%

65%

* Percent of net sales and net earnings from continuing operations for the year ended June 30, 2011 (excluding results held in Corporate).

For more financial details,
please see P&G’s 2011 Annual Report available at
http://annualreport.pg.com/annualreport2011/.
As part of P&G’s initiative to optimize resources to fit a growing global business and to accelerate innovation and growth, the Company operates its
business through Global Business Units (GBUs), as described under Organizational Structure on page 12. This organizational structure accounts for why
P&G does not provide employee data, sales, or profits by individual countries. Some countries may provide this data in reports other than this one.
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Social Responsibility

Major Acquisitions

Global Purchases

Acquisitions used $474 million of cash in 2011,
primarily for the acquisition of Ambi Pur, an
air freshener business. In 2010, acquisitions
used $425 million of cash, primarily for theacquisition of Natura, a leading producer anddistributor of branded premium natural pet
foods.

The rise in materials costs and the growth ofour brands increased our external spend to
approximately $46.3 billion dollars spent onmaterials and services to manufacture andmarket our products (vs. approximately $43.8
billion last year). In April 2010, we introduced
an upgraded version of our Supplier Environmental Sustainability Scorecard. The Scorecard
was developed with supplier and agency
input and is designed to track and encourage
improvement on key environmental sustainability measures in P&G’s supply chain. The
goals for the scorecard initiative include:

Proceeds from
Asset Sales
Proceeds from asset sales contributed $225
million to cash in 2011, mainly due to the saleof our Infasil brand in Western Europe and
Zest brand in North America. In 2010, proceedsfrom asset sales contributed $3.1 billion tocash, mainly due to the sale of our global
pharmaceuticals business.

• Enhancing collaboration with our externalbusiness partners• Improving key environmental indicators• Encouraging the sharing of ideas and capabilities to deliver more sustainable products
and services to our consumers
Importantly, we will now measure year-on-year
improvements in environmental sustainabilityof our external business partners and recognize
those who excel in this area.

•

Employees & Stakeholders•

New Vision & Goals

Economic
Development
Innovation is a fundamental driver of P&G’s
growth. We invest about $2 billion a year in
Research & Development — about 60% morethan our next closest competitor and morethan most of our closest competitors combined. This leadership level of investment ismultiplied by our global network of externalinnovation partners, which leads to an effective
investment in innovation that far exceeds thereported spending. Our External Business
Development group and the Connect &Develop organization manage thousands ofactive connections with other companies andinstitutions. These include a wide variety ofdeal structures, including licensing, sale,technology swap, joint ventures, and more.
P&G’s goal is to be the partner of choice inworking with others to improve the lives of
the world’s consumers.
For more information, please visit
www.pgconnectdevelop.com.

•

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Shareholders
As of June 30, 2011, there were approximately 2,259,000 common stock shareowners,
including shareholders of record, participantsin the P&G Shareholder Investment Program,participants in P&G stock ownership plans, andbeneficial owners with accounts at banks andbrokerage firms.

Contact
For more information:• Website: www.pg.com/en_US/investors/
shareholder_services• E-mail: shareholders.im@pg.com• Personal assistance (M – F, 9a – 4p Eastern):
1-800-742-6253; 1-513-983-3034 (outside
U.S. and Canada)• Financial information request line (24 hours):
1-800-764-7483
Write to:
The Procter & Gamble Company
Shareholder Services Department
P.O. Box 5572
Cincinnati, Ohio, U.S.A. 45201-5572

For more information on our supplier sustainability guidelines, please see page 65.
For more information on our supplier environmental scorecard, please see page 35.
For more information on our supplier diversity efforts, please see page 66.
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Organizational
Structure
Our organizational structure iscomprised of two Global Business
Units (GBUs), Global Operations,Global Business Services (GBS), andCorporate Functions (CF).
Global Business Units

Global Business Services

Effective February 2011, our two GBUs are
Beauty & Grooming and Household Care. The
primary responsibility of the GBUs is to develop
the overall strategy for our brands. They
identify common consumer needs, develop
new product innovations and upgrades andbuild our brands through effective commercial
innovations and marketing plans.

GBS provides technology, processes, andstandard data tools to enable the GBUs andthe MDO to better understand the businessand better serve consumers and customers.
The GBS organization is responsible forproviding world-class solutions at a low cost
and with minimal capital investment.

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

MarketDevelopment
Organization

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

GlobalBusiness
Units

Beauty &Grooming

Household
Care

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

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P&G Profile

Manufacturingand Outsourcing
P&G has over 130 manufacturing facilities
in over 40 countries. These facilities
handle the majority of P&G’s production.
Our primary focus is delighting consumers. To
ensure that our products remain affordable,
our manufacturing facilities must provide thebest possible value for the Company. We
conduct regular reviews to ensure that ourfacilities are highly competitive, and thisprocess includes benchmarking versus
third-party manufacturers.
When it makes sense for the business and it is
the most competitive solution, we may decide
to use contract manufacturers. For example,
when entering a new market, introducing a
new product, or accessing a technology orprocess we don’t currently have, we may rely
on contract manufacturing so we candetermine production needs prior to investingin new capacity at a P&G facility.

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P&G Plants Locations
As of June 30, 2011
Sometimes we use contract manufacturers on
a longer-term basis for reasons of cost-effectiveness. In these instances, we are usually
manufacturing in the region, for the region as
almost all of our third-party manufacturers are
regional. In addition, many of our products
simply do not lend themselves to shipping long
distances. The exception to this would be
where unique manufacturing capability exists
in one region and we are able to economicallyship across regions.
The percentage of P&G production supplied bycontract manufacturers varies according to theneeds of the business and the ability of P&G
facilities to compete and win production basedon providing the best value. Currently, ourplants do this extremely well and we rely on
third-party manufacturers for only 10 to 15
percent of our total manufacturing volume.

COUNTRY

CITY

PLANT NAMEREPORTING SEGMENT

Argentina

Pilar

Pilar

Fabric & Home Care

Argentina

Villa Mercedes

Villa Mercedes

Baby & Family Care

Belgium

AarschotAarschot

Fabric & Home Care

Belgium

MechelenMechelen

Fabric & Home Care

BrazilSão Paulo

Anchieta

Fabric & Home Care

BrazilLouveira

Louveira

Health Care

BrazilManausManausGrooming

BrazilRio De Janeiro

Rio

BeautyCanadaBelleville

Belleville

Health Care

CanadaBrockville

Brockville

Fabric & Home Care

Chile

Santiago

Santiago

Baby & Family Care

China

Beijing

BeijingFabric & Home Care

China

ChengduChengduFabric & Home Care

China

DongguanDong Guan

Fabric & Home Care

China

Guangzhou

Huangpu

BeautyChina

Minhang

Minhang

Grooming

China

Shanghai

Shanghai

Grooming

China

Tianjin

Tianjin

BeautyChina

Tianjin

XiqingBeautyColombia

MedellÍn

MedellÍn

Fabric & Home Care

Czech Republic

Rakovnik

RakonaFabric & Home Care

Egypt

Cairo

Cairo

Fabric & Home CareFranceAmiensAmiensFabric & Home CareFrance

Blois

Blois

BeautyFrancePoissyPoissyBeautyFranceSarreguemines

Sarreguemines

BeautyGermany

BerlinBerlinGrooming

Germany

CologneCologneBeautyGermany

Crailsheim

Crailsheim

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COUNTRY

CITY

PLANT NAMEREPORTING SEGMENT

COUNTRY

CITY

PLANT NAMEREPORTING SEGMENT

Germany

Euskirchen

Euskirchen

Baby & Family Care

MexicoTepejiTepejiBaby & Family Care

Germany

Gross-Gerau

Gross-Gerau

Health Care

MexicoMexico City

VallejoFabric & Home Care

Germany

Hünfeld

Huenfeld

BeautyMoroccoCasablanca

Casablanca

Fabric & Home Care

Germany

Kronberg

Kronberg

Grooming

MoroccoMohammedia

Mohammedia

Fabric & Home Care

Germany

Marktheidenfeld

Marktheidenfeld

Health Care

Netherlands

Coevorden

Coevorden

Snacks & Pet Care

Germany

Rothenkirchen

Rothenkirchen

BeautyNigeria

IbadanIbadanFabric & Home Care

Germany

Walldürn

Wallduern

Grooming

Pakistan

KarachiHub

BeautyGermany

Worms

Worms

Fabric & Home Care

Pakistan

KarachiPort Qasim

Fabric & Home Care

GuatemalaEscuintla

Escuintla

Fabric & Home Care

Peru

Lima

Materiales

Fabric & Home Care

Hungary

CsömörBudapest

Health Care

Philippines

CabuyaoCabuyaoFabric & Home Care

India

District Solan

Baddi

Fabric & Home Care

PolandAleksandrow Lodzki

Aleksandrow

Beauty

India

Baddi

Baddi B&R

Grooming

PolandLodz

Grooming

India

BhiwadiBhiwadiGrooming

Lodz – LMC(Jozefow Street)

India

Ponda

Goa

Health Care

PolandLodz

Grooming

India

BhopalMandideep

Fabric & Home Care

Lodz – PLMC
(Wodna Street)

Ireland

NenaghNenaghBeautyPolandWarsaw

Targowek

Baby & Family Care

Ireland

Newbridge

Newbridge

Health Care

PortugalGuifões

Porto

Fabric & Home Care

Italy

Campochiaro

Campochiaro

Fabric & Home Care

Puerto Rico

Cayey

Cayey

BeautyItaly

Gattatico

Gattatico

Fabric & Home Care

RomaniaTimişoaraTimişoara

Fabric & Home Care

Italy

PescaraPescara

Health Care

Romania

Urlaţi

Urlaţi

Beauty

Italy

Rome

Pomezia

Fabric & Home Care

Russia Federation

Dzerzhinsk

CapellaBeautyJapan

AkashiAkashiBaby & Family Care

Russia Federation

Novomoskovsk

Novomoskovsk

Fabric & Home Care

Japan

Yasu

Shiga

BeautyRussia Federation

St. Petersburg

St. Petersburg

Grooming

Japan

TakasakiTakasaki

Fabric & Home Care

Saudi Arabia

DammamDammamFabric & Home Care

Malaysia

KuantanKuantanFabric & Home Care

Saudi Arabia

JeddahJeddahBaby & Family Care

MexicoNaucalpan

Alce Blanco

Health Care

Singapore

Singapore

Pioneer Perfume

Fabric & Home Care

MexicoApizacoApizacoBaby & Family Care

South Africa

Johannesburg

Johannesburg

Baby & Family Care

MexicoApaseo El Grande

Mariscala

BeautySouth Korea

ChʼonanChʼonanHealth Care

MexicoIrapuato

Milenio

Grooming

Spain

JijonaJijonaBaby & Family Care

MexicoNaucalpan

Naucalli

Grooming

Spain

Mataró

Mataró

Fabric & Home Care

MexicoNaucalpan

Naucalpan

Health Care

Spain

Mequinenza

Mequinenza

Baby & Family Care

MexicoMexico City

Talisman

BeautySpainMontornès del VallèsMontornès

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COUNTRY

CITY

PLANT NAMEREPORTING SEGMENT

COUNTRY

CITY

PLANT NAMEREPORTING SEGMENT

Thailand

Bangkok

Bangkok

BeautyUnited States

Lancaster

Lancaster

Fabric & Home Care

Turkey

Gebze

Gebze

Fabric & Home Care

United States

Leipsic

Leipsic

Snacks & Pet Care

Lima

Lima

Fabric & Home Care

UkraineBoryspilBoryspil

Health Care

United States

UkraineOrdzhonikidze

Ordzhonikidze

Fabric & Home Care

United States

Mehoopany

Mehoopany

Baby & Family Care

North Chicago

North Chicago

Fabric & Home Care

United Arab Emirates

Dubai

Dubai

Fabric & Home Care

United States

United Kingdom

LondonLondonFabric & Home Care

United States

OxnardOxnardBaby & Family Care

Phoenix

Phoenix

Health Care

United Kingdom

Manchester

Manchester

Baby & Family Care

United States

United Kingdom

Reading

Reading

BeautyUnited States

Russellville

RussellvilleSnacks & Pet Care

Sacramento

Sacramento

Fabric & Home CareSt. Louis

Fabric & Home Care

United Kingdom

Whitley Bay

Seaton Delaval

BeautyUnited States

United States

AlbanyAlbanyBaby & Family Care

United States

St. Louis

United States

Pineville

Alexandria

Fabric & Home Care

Venezuela

Barquisimeto

Barquisimeto

Fabric & Home Care

United States

AndoverAndover

BeautyVenezuela

GuatireGuatireBaby & Family Care

United States

AuburnAuburnHealth Care

VietnamTan Uyen District

Ben CatBaby & Family Care

United States

Augusta

Augusta

Fabric & Home Care

VietnamBinh Duong

Binh Duong

Fabric & Home Care

United States

AuroraAuroraSnacks & Pet Care

United States

AvenelAvenelFabric & Home Care

United States

BostonBostonGrooming

United States

Bear River City

Box Elder

Baby & Family Care

United States

JacksonCape Girardeau

Baby & Family Care

United States

Cincinnati

Cincinnati

Fabric & Home Care

United States

Cleveland

Cleveland

Fabric & Home Care

United States

Dover

Dover

Baby & Family Care

United States

Fremont

Fremont

Snacks & Pet Care

United States

Green Bay

Green Bay

Baby & Family Care

United States

Greensboro

Greensboro

Health Care

United States

Henderson

Henderson

Snacks & Pet Care

United States

Cockeysville

Hunt Valley

BeautyUnited States

Iowa City

Iowa City

BeautyUnited States

Iowa City

Iowa City (Oral Care)

Health Care

United States

JacksonJacksonSnacks & Pet Care

United States

Kansas City

Kansas City F&HC

Fabric & Home Care

United States

LaGrange

LaGrange

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Governance
The objective of our governance structure
is to maintain corporate governanceprinciples, policies, and practices that
support management and Board of
Directors accountability. These are in thebest interest of the Company and ourshareholders, and they are consistent
with the Company’s Purpose, Values andPrinciples. We believe that good governance practices contribute to better
results for shareholders. Everything we
do is done with our commitment to“doing the right thing” in mind.
Governance Structure
We believe that good governance practices
contribute to better results for shareholders.
Our objective is to maintain corporate
governance principles, policies, and practices
that support management and the Board of
Directors accountability. These are in the bestinterest of the Company and our shareholders,
and they are consistent with the Company’s
Purpose, Values and Principles.
Governance starts with the Board of Directors,
which has general oversight responsibility for
the Company’s affairs pursuant to Ohio’s
General Corporation Law, the Company’s
Amended Articles of Incorporation and Codeof Regulations, and the Board of Directors’
By-laws. In exercising its fiduciary duties, theBoard of Directors represents and acts onbehalf of the Company’s shareholders.
Although the Board of Directors does not have
responsibility for the day-to-day managementof the Company, it stays informed about theCompany’s business and provides guidance toCompany management through periodic
meetings, site visits and other interactions. The
Board is deeply involved in the Company’s
strategic planning process, leadershipdevelopment and succession planning. The
Board also takes an active approach to risk
management by overseeing the Company’s
strategic plans, the associated risks, and thesteps that senior management is taking tomanage and mitigate those risks.
Additionally, the Board has adopted guidelines
for determining the independence of its
members. As of June 30, 2011, 82 percent ofour directors qualified as being independent
from the Company.
The Company’s Worldwide Business Conduct
Manual is its code of conduct, which isapproved by the Board. This conduct manualapplies to all directors, officers, and employees
and is designed to help ensure compliance withall applicable laws and Company policies,
including those related to sustainable
development.
Shareholders may communicate with the Boardof Directors and submit shareholder proposals
as described in the Company’s proxystatement.
Additional detail on the role andstructure of the Board of Directors, ourArticles of Incorporation, the Code ofRegulations, Corporate Governance Guidelines,
Independence Guidelines, charters for all Board
committees, the Worldwide Business Conduct
Manual, and our Related Person Transaction
Policy are available at our website at www.
pg.com/en_US/company/global_structure_operations/governance/governance_policies.
shtml.

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

Communicating expectations toemployees — Every employee — from senior
management on down — receives mandatory
training on the Company’s Worldwide BusinessConduct Manual. Every employee is held
personally accountable for compliance with thestandards contained in the manual and isprovided several methods for reporting any
concerns about violations of the Worldwide
Business Conduct Manual.
The Worldwide Business Conduct
Manual is available on our website atwww.pg.com/en_US/company/global_structure_operations/governance/governance_policies.shtml.
Maintaining a strong internal control
environment — Our system of internal controls
includes written policies and procedures,segregation of duties, and the careful selection
and development of employees. The system isdesigned to provide reasonable assurance thattransactions are executed as authorized andappropriately recorded, that assets are
safeguarded, and that accounting records are
sufficiently reliable to permit the preparation offinancial statements conforming in all material
respects with accounting principles generally
accepted in the United States of America. We
monitor these internal controls through control
self-assessments conducted by business unit
management. In addition to performing
financial and compliance audits around theworld, including unannounced audits, our
Global Internal Audit organization provides
training and continuously improves internal
control processes. Appropriate actions aretaken by management to correct any identified
control deficiencies.

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Political Involvement
Executing financial stewardship — We
maintain specific programs and activities toensure that employees understand theirfiduciary responsibilities to shareholders. This
ongoing effort encompasses financial disciplinein our strategic and daily business decisions,and brings particular focus to maintaining
accurate financial reporting and effective
controls through process improvement, skill
development and oversight.
Exerting rigorous oversight of the business —We continuously review our business results
and strategic choices. Our Global LeadershipCouncil is actively involved — from understanding strategies to reviewing key initiatives,
financial performance, and control assessments. The intent is to ensure that we remain
objective, identify potential issues, continuously challenge each other, and ensure thatrecognition and rewards are appropriatelyaligned with results.
Engaging our Disclosure Committee —We maintain disclosure controls and procedures
designed to ensure that information required
to be disclosed is recorded, processed,
summarized, and reported accurately and in atimely fashion. Our Disclosure Committee is agroup of senior-level executives responsible for
evaluating disclosure implications of significant
business activities and events. The Committee
reports its findings to the CEO and CFO,
providing an effective process to evaluate ourexternal disclosure obligations.
Encouraging strong and effective corporate
governance from our Board of Directors —We have an active, capable and diligent Board
that meets the required standards forindependence, and we welcome the Board’s
oversight. Our Audit Committee comprises
independent financial directors with significant

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

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

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

Lobbying Activity
P&G’s Global Government Relations team
(P&G GGR) represents the Company’s pointof view in Washington, D.C., in U.S. state
capitals, and in key country capitals around theworld. Working with the businesses, P&G GGRfocuses on legislative and public policy issues
that impact the Company’s bottom line andlong-term business interests. Where permitted
by law, P&G GGR engages and educates policy
makers and key stakeholders on issues that
impact our business; facilitates the exchange
of information between key decision-makers
and public policy organizations in the U.S.
and abroad; and leads Company actions on
policy matters both unilaterally and in industry
coalitions and associations.

P&G complies with all U.S. federal and state
laws, including the Lobbying Disclosure Act
and Honest Leadership and Open Government
Act that require reporting on lobbying activities
and certification of compliance with
Congressional gift rules. P&G reported U.S.
lobbying expenditures of $4.13 million in thelobbying disclosure reports filed with the Clerkof the U.S. House of Representatives and theSecretary of the U.S. Senate for the 2010
calendar year. In fiscal year 2009–2010, P&G
reported lobbying activity in the range of€350,000 to €400,000 in the European Union
under voluntary guidelines issued by the EU
Commission.
In 2010, P&G paid roughly $8.3 million in dues
to U.S. trade and industry associations withannual dues of $25,000 or more, of which $1.5
million, roughly 18 percent, was identified by
50 associations as funds spent on lobbying andpolitical activities.
You can download a listing of P&G’s U.S.
associations and percentage of dues
attributable to political activities atwww.pg.com/en_US/company/global_structure_operations/governance/governance_political.shtml.

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

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P&G Profile

makes recommendations to the Global
External Relations Officer for approval, or for
further review and approval by the CEO andChairman as appropriate. As with all otheraspects of our political involvement, ourparticipation in such efforts is guided by our
Purpose, Values and Principles and by ourbusiness strategies, and is fully reported inaccordance with governing laws.
P&G has no plans to use corporate funds tosupport independent political expenditures toinfluence federal elections, nor to makecontributions to trade associations for that
purpose. Further, our policy is to not use
corporate funds to support 527 organizations
or candidates in states where it is legallypermissible to do so.
In 2010, P&G gave $150,000 in contributions
to ballot initiatives and other issue advocacy
campaigns that had a direct impact on
the business.
You can download a listing of these
initiatives at www.pg.com/en_US/
company/global_structure_operations/
governance/governance_political.shtml.

P&G Political Action Committee(P&G PAC)
The P&G PAC is a voluntary, nonpartisan
political action committee. Registered as the
P&G Good Government Committee with the
U.S. Federal Election Commission (FEC) andappropriate state offices, 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 to the business and thequality of life in the communities in which welive and work.

•

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Social Responsibility

P&G PAC operations are transparent andcompliant with all applicable laws. It isgoverned by a set of bylaws and supervised
by a diverse board of senior Company
managers, U.S. Government Relations
personnel, and Legal counsel.

•

Employees & Stakeholders•

New Vision & Goals

Policies andManagement
Systems for
Reporting
Performance

Support of candidates is based on theirsupport of P&G issues and sustained constituent relationships. The PAC generally does notcontribute to Presidential candidates, national
political parties, trade and industry associationor leadership PACs, or multiple candidates
running in the same race. In 2010, the P&G PAC
made 224 contributions to political candidates
or committees totaling $224,380. The averagecontribution was about $1,000.

Policies

P&G PAC activity is available on the FEC
and state elections websites. You canaccess a listing of all 2010 PAC contributions at
www.pg.com/en_US/company/global_structure_operations/governance/governance_political.shtml.

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

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

Management Systems

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

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Acquisitions
Acquisitions have been included in the metrics
presented herein. Acquisitions differ inperformance expectations in that we allow a
six-year glide path to meet the audit performance score of 8.0 out of a ten-point scale. A
midpoint expectation of 6.5 is expected to beachieved within three years. Typically,acquisitions exceed those expectations.

Process for Data Collection
P&G’s data collection systems have been inplace for many years. They are designed to be
simple enough so that the people closest to thework can use the tools, regardless of theirlocation. This simplicity enables the Company
to collect data and update systems annually ata relatively low cost. Each business unit is
responsible for the accuracy and consistency ofits data.
All data is reported on a global basis. In orderto achieve consistency and to ensure acommon understanding throughout theorganization, employees are trained in how toreport and document data. Data is presented
in metric units and published in English, withlocal translation performed where necessary.
To ensure the standard collection of data, theCompany established the following processes:• Key terms are defined.
• The data to be collected are identified.
• Flow sheets are agreed upon regarding whocollects data and on what systems.
• Technically sound methods are used byfacilities to estimate data and validate
year-to-year results.
• Personnel are trained on the work process, as
appropriate.

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We are committed to improving people’s
everyday lives by making products thatare better for the environment.
To understand how we can make aproduct more environmentally sustainable,
we analyze its footprint throughout its
entire life cycle — from the creation of raw
materials, to manufacturing, to consumeruse, to disposal. This helps us focus where
we can make the most significant impact.

Commitment throughOur Products

For example, by rethinking the raw
materials phase of some of our products
and how the products are designed andformulated, we’ve been able to reduce theamount of materials we use, the energy
it takes to produce them and the waste
at the end of consumer use. We’ve also
begun to replace petroleum-based raw
materials in some of our products withsustainably sourced renewable materials.

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Sustainable Innovation Products (SIPs) 2010 – 2011
These products have a significantly reduced (>10%) environmental footprint versus a previous or alternative version of the product without negatively
impacting the overall sustainability profile of the product. These SIPs were identified in Fiscal 10/11.

Product

RegionInnovation

Swiffer Sweep-n-Vac
North America
		

Optimization of packaging design delivered a significant 		
reduction in overall packaging.

Powder Laundry Detergents
North America(Cheer, Dreft, Era, Gain, 		
Ivory Snow, Tide)

Compaction of powder detergents delivered savings in packaging
and energy.

Pantene Nature Fusion
Western Europe		

The introduction of plant-based materials reduced the use of 		
non-renewable resources.

Gillette Fusion ProGlide Razors
Western Europe				

The introduction of plant-based materials reduced the use of
non-renewable resources, and changes to the package structure
achieved an overall reduction in packaging.

Pampers Cruisers
North America
		

Changes to packaging increased the number of units that could beplaced on a truck, delivering an overall reduction in transportation.

Pampers Baby Dry, Swaddlers, New
North America, Western Europe,
Baby, Active Fit, Active Baby, Juegos
Latin America
and Sueños, Cruisers with Dry Max		

Changes to product formulation and package design delivered
reductions in material usage.

Pampers Wipes Sensitive

North America, Western Europe

Changes to product design delivered a reduction in material usage.

Always & Naturella

Latin America, Asia, CEEMEA*,
Western Europe

Significant reduction of the polyethylene bag delivered an overall. 		
reduction in packaging.

AlwaysWestern Europe		

Shelf-ready box with open front and back panels significantly 		
reduced overall packaging usage.

Braun – Oral-B New Generation Charger

Changes to product design delivered a reduction in material usage.

Western Europe, CEEMEA*The CEEMEA region includes Central and Eastern Europe, Middle East, and Africa

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Committed to Renewable Materials
A bottle that balances nature. Pantene is piloting the use of plant-based plastic in its
packaging. This innovative material made from sugarcane — a first for the mass hair careindustry — debuted in the Pantene Pro-V Nature Fusion collection last April in Western Europe,and is expanding to North America in Fall 2011.
Sourced from our supplier Braskem® in Brazil, the sugarcane is converted into ethanol andeventually into plastic utilizing a by-product from the rest of the plant to provide some of theenergy needed to fuel this process.

Sugarcane
Sugarcane is harvested
and taken to a mill.

EnergyThe energy needed
to run the fermentation
plant comes from burning bagasse, a fibrousmaterial remaining after
extraction of the sugar
juice from the cane.

Energy Grid
The excess energy
is sold to the electricalenergy grid, some ofwhich is used for thepolymerization process.

Fermentation
The sugarcane ismechanically crushed,
releasing sugar juicethat is converted
to ethanol throughfermentation
with yeast.

Polymerization
The ethanol ischemically converted toethylene, which is then
combined tomake polyethylene.

Bio-PE
Bio-Polyethylene(Bio-PE) is plastic thatis chemically identicalto polyethylene plastic
made from petroleum.

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Committed to Renewable Materials(continued)

T O M F E D E R L E , Research Fellow , P&G Environmental Stewardship Organization“We felt that a highly productive plant like sugarcane could be a sustainable feedstock for producing next-generation renewable plastic containers. Due diligence dictated that we understandthe specific agricultural practices being used and potential environmental impacts associatedwith the entire life cycle of this new plastic. Given World Wildlife Fund’s expertise in sugarcane
and its sourcing, we sought their guidance as we took this first step in a longer journey toward
more sustainable packaging materials. Furthermore, we conducted a number of comprehensive
studies, including a life cycle assessment and a food impact analysis. Then we went to Brazil,
not only to talk to the manufacturer, but to visit fields to see how farmers grow and harvest thecrop and to visit the mills to see how it’s processed. In that way, we could observe first-hand
how potential environmental impacts were avoided or minimized. As a result of these efforts,
we were able to confirm that the sugarcane being used is definitely sustainably sourced and theplastic itself provides tangible sustainability benefits.”••

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Plant-based plastic is a significant environmental innovation.
When compared to traditional petroleum-based (HDPE) plastic, it:

170

%

70

%

Reduces greenhouse gas (GHG)
emissions by more than 170%
because (1) as sugarcane grows, it
absorbs CO2 that is stored in plastic
when it is recycled or landfilled,and (2) a large portion of theenergy used to produce Bio-PE isfrom renewable biomass, whichemits less GHG.
Consumes over 70% less fossil
fuels than petroleum-based plastic
Can be recycled in traditional
facilities that recycle petroleumbased plastic

In 2011, Dr. Tom Federle was presented the prestigious Samuel Rosen Memorial Awardby the American Oil Chemists’ Society (AOCS) in recognition of his accomplishments insurfactant chemistry.

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Committed to Packaging Reduction
Rethinking packaging from source to shelf. P&G partnered with Be Green® Packaging,a molded fiber supplier, to develop a breakthrough package for Fusion ProGlide, Gillette’s
newest high-performance razor. The new package launched in Western Europe with a 57%
reduction in plastic compared to the originally launched Fusion outer pack and razor tray and a
20% reduction in gross weight compared to the Fusion launch package. To minimize plastic, thedesign uses fiber material made from bamboo, sugarcane, and bulrush. The innovation stretches
the boundaries of what moldable pulp can do, delivering a breakthrough package out of fiber
material. Its structure stays strong under compression, sealing and opening forces, and distribution and transportation stresses, while also maintaining a strong visual presence on the shelf.
And, like the Fusion packaging in Western Europe, this new ProGlide packaging is 100% free of
Polyvinyl Chloride (PVC). P&G plans to begin introducing this package in North America in 2012.
M I K E M A R C I N K O W S K I , Principal Engineer, Gillette“To deliver this materials-reduction project, about a dozen of us literally locked ourselves ina room and worked on it until the design was complete. We focused where we could makethe biggest impact on materials by looking at alternatives to plastics — fiber-based materials
such as bamboo, sugarcane, and bulrush. Be Green was an instrumental partner, and together we were able to deliver a 57% reduction in the amount of plastic. We feel like we’releading our industry with this approach.”

The new design significantly
reduces materials byminimizing the internal tray
and simplifying the design.
Old

57%
Reduction in plastic** vs. Fusion launch outer pack and razor tray** vs. Fusion launch package

New

100%

PVC free20%
Reduction in gross weight**

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Committed to Compaction
Creating a triple win for customers, retailers and the planet. Building on previous years’
success in liquid laundry compaction and advances in powder compaction in Western Europe,
this past winter we compacted our entire portfolio of U.S. and Canadian carton powder
laundry detergents by 33%. Compaction provides meaningful benefits for the consumer, theretailer, and the environment.
The compacted powder formulas of Tide, Gain, Cheer, Dreft, and Ivory Snow use a higher
proportion of dense active cleaning agents, resulting in the same great performance using lessproduct. The environment benefits from a smaller carton size that produces less waste. The
retailer benefits because fewer trucks, fewer pallets, and less inventory space allow fora more efficient supply chain.
N I C O L E B O S L E Y, Marketing Manager, P&G Fabric Care

“Consumers today know that compaction means a smaller-sized package. So we focused ourbrand marketing on the improved cleaning power of Tide and the enhanced freshness of
Gain. We utilized coupons and informational inserts placed in pre-compacted and compacted
formulas to educate consumers on the product upgrades behind Tide and Gain and thesmaller packaging. We also leveraged P&G’s Future Friendly platform to communicate theenvironmental benefits of powder compaction. Consumers have reacted positively to the
product being lighter to carry and easier to store. These changes are just a few of the waysthat sustainability can create more benefits for the consumer.”

New

Old

Up to 6% fewer trucks*

Up to 28% less corrugate*

Up to 5–8% less fuel*(5,900 Trucks)(6.3 Million Square Meters)(3,360,000 Diesel Liters)*Based on recommended dosage.

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As demonstrated on the previous pages,
we are committed to improving people’s
everyday lives by making products that are
better for the environment. Our employees
bring this commitment to life — inspiredby our Purpose and guided by the policies,
procedures, and organizations on thefollowing pages.

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Environmental
Quality Policy
We will provide products and services ofsuperior quality and value that improve
the lives of the world’s consumers. As partof this process, P&G continually strives
to improve the environmental quality of
its products, packaging, and operations
around the world. To carry out its
Environmental Quality Policy, P&G:

• Meets or exceeds the requirements of allenvironmental laws and regulations. We use
environmentally sound practices, even in
the absence of governmental standards. We
cooperate with governments in analyzing
environmental issues and developing costeffective, scientifically based solutions andstandards.

• E nsures that our products, packaging, andoperations are safe for our employees,
consumers, and the environment.

• Continually assesses our environmental technology and programs and monitors progress
toward environmental goals. We develop anduse state-of-the-art science and product life
cycle assessment, from raw materials throughdisposal, to assess environmental quality.

•R educes or prevents the environmental
impact of our products and packaging in theirdesign, manufacture, distribution, use, anddisposal whenever possible. We take aleading role in developing innovative,
practical solutions to environmental issues
related to our products, packaging, andprocesses. We support the sustainable use ofresources and actively encourage reuse, recycling, and composting. We share experiencesand expertise and offer assistance to others
who may contribute to progress in achieving
environmental goals.

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

• Provides our consumers, customers, employees, communities, public interest groups, andothers 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, andstrive to be responsive to concerns.

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Product Safety
P&G is committed to improving lives withhigh quality products while ensuring thesafety of both the people who use themand the world where we live. Household
consumer products use a variety ofingredients to improve our everyday lives,with cleaner homes & clothing as well as
improved health and well-being, enablingan overall better quality of life.
Throughout its history, P&G has believed thatthe safety of our products is a prerequisite forresponsible business. Our cofounder, James
Gamble, stated in the mid-1800s that “if you
cannot make pure goods and full weight, go
to something else that is honest, even if it
is breaking stone.” Today, this philosophy isreflected in our Statement of Purpose: “Wewill provide branded products and services ofsuperior quality and value that improve the livesof the world’s consumers, now and for generations to come.” Safety is an intrinsic part of our
products’ quality and value, and the reputationof every P&G product depends upon the trustof consumers that they are safe.
Our commitment to safety is reflected in
the more than 700 in-house experts devoted
globally to ensuring the environmental andhuman safety of all our ingredients and products before they go to market, as well as ensuring that they comply with laws and regulations
in each of the markets where they are sold.
Our approach to safety is based on the samepractices and science-based methods that areused by numerous regulatory agencies aroundthe world.
• We first evaluate the intrinsic potential for an
ingredient to cause harm using published andaccepted scientific methods. We also consider

the potential effects across the entire population, including children. This information isused to determine what levels of an ingredient are safe for humans and the environment.
• We then evaluate how much of the productor ingredient people use under normal andexaggerated use, and how much is released
to the environment based on our understanding of how our products are actually used.
• Only products that result in uses that are
well within safe levels make it through ourevaluation process.
• Our efforts go beyond safety and include
product life cycle issues such as energy andresource use, and waste management.
Some believe that it might be better to basedecisions about an ingredient’s safety solely on
its potential to cause harm, even if that harm
would never occur when the ingredient is used
in a consumer product. This has been coupledwith calls for the far-reaching use of the“precautionary principle,” whereby substancesthat are classified in certain “hazard” categories
would be broadly restricted or banned outright,
with little further evaluation of whether they
are currently being used safely. We recognize
the attraction of such a “black and white” approach. However, we believe that it could cause
chemicals being used safely to be unjustifiably
removed from the market, potentially limiting
the use of innovative new ingredients that are
more effective, utilize fewer natural resources
and are safer. Furthermore, experience has
shown that even chemicals that could beconsidered “non-hazardous” (e.g., salt) cancause harm under certain circumstances, while
potentially “hazardous” chemicals can be safely
used (e.g., ethanol).

Thus, there is no simple shortcut to deciding
whether an ingredient is safe or harmful.
This type of decision should only be madeafter application of the robust science-based
approach that we, and regulatory agencies,
use every day.

Product Safety Organization
Product Safety & Regulatory Affairs (PS&RA)
is responsible for ensuring that products andpackages are safe for consumers, safe for theenvironment, and in compliance with laws andregulations where they are sold. We have over
700 professionals worldwide dedicated to thistask. PS&RA also addresses other environmental
aspects of products and packages, such as theircompatibility with waste management systems
and natural resource use. To accomplish thismission, the PS&RA organizations in each business unit work closely with product development teams in the selection and formulationof product ingredients and mixtures withacceptable safety profiles.
A primary role of PS&RA is advancing thescience used to evaluate the human and environmental safety of our products. This includes
developing new methods from the latest advancements in science and technology. We arehelped in this process by an External Advisory
Board of distinguished academic scientists.

PS&RA experts participate in scientific,
professional and industry association activities
related to safety as well as key national andinternational initiatives (e.g., United Nations,
Organization for Economic Cooperation andDevelopment) directed toward supporting
the sound management of chemicals aroundthe world. We also share our safety research
information and establish principles for promoting the safe and responsible use of chemicals
through our more than 1,000 publications inleading scientific journals.
For further details on the science andsafety of P&G products, we encourage
you to visit these websites:
P&G Product Safety:
www.pg.com/en_US/sustainability/product_safety.shtml.
Science in-the-Box:
www.scienceinthebox.com.
P&G Beauty and Grooming:
www.pgbeautygroomingscience.com/safety.
html.

We conduct studies in human and environmental toxicology with an in-depth understandingof how people actually use our products
and dispose of them across the globe. Thisknowledge allows us to develop robust humanand environmental safety evaluations for every
product worldwide before they go to market,
and also guides in the development of newtechnologies.

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Eliminating Research
Involving Animals
Our Progress
P&G is committed to improving lives with highquality products while ensuring the safety ofboth the people who use them and the world
where we live. At the same time, we firmly
believe that ending animal research is the rightthing to do. To that end, we’ve invested morethan $285 million in developing alternative
methods to replace animal research. Today, we
complete more than 99% of all safety evaluations without testing on animals. The remaining
tiny percentage comes from studies requiredby law or the rare cases where there are noalternatives available.
We are passionate about continuing our progress in alternatives to research involving animals,so that animal testing can be eliminated. Highlights of our progress include:• We are a leader in alternatives to animal testing, helping to develop more than 50 alternative methods which we use today.

•W e actively share our discoveries so that
others can benefit from our progress; ourwork has appeared in more than 1,000
scientific publications.
•O ur focus on developing non-animal test
methods has led to even more predictive
approaches using human cell lines, genomics,
and the latest in computer modelingand informatics.
•W e collaborate with universities, scientists
from other companies, and governments todevelop and promote acceptance of alternative test methods and change regulations thatstill require testing with animals.
For details of our policy and practices,
please go to: www.pg.com/en_US/
sustainability/point_of_view/animal_welfare.
shtml.
Or visit: www.pgbeautygroomingscience.com/
animal-testing-alternatives.html.

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

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

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

Forest Certification

Forest Conversion

We give preference to pulp from Forest Stewardship Council (FSC) certified forests when it
is available and meets product performancerequirements and competitive market conditions. We will utilize FSC-controlled wood in a
stepwise approach to progressively increase theamount of pulp from FSC-certified sources. P&G
is a member of the FSC and actively participatesin ongoing discussions concerning FSC standards. As a minimum standard, P&G requiresthat any wood pulp supplier ensures that theirforest certification systems are consistent withthe following generally accepted criteria forsustainable forest management:

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

• 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.
• Participation of interested and affectedstakeholders.
• Continuous improvement in forestry practices.
• Compliance with legislation, agreements,
and accords.
• Support of universal human rights and respect
for ownership and use rights of local communities and indigenous people.
• Avoidance of unwanted wood sources.
• Multi-stakeholder governance and transparency in decision making and reporting.
• Independent third-party verification of forestry
practices and chain of custody for wood fiber.

Efficient Use of Resources
P&G is committed to reducing demand on theworld’s forests and other resources. P&G
believes that we should invest our resources
where we can make the greatest sustainability
improvements and will continue to:• Focus on source reduction in the long termor use of less fiber through development ofinnovative 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 of sustainable
management.
• Explore and implement energy and water
conservation opportunities in our papermaking operations.
• Use recovered fiber when it has no negative
impact on product performance, manufacturing efficiency, resource and energy usage, andwaste generation. We will continue to invest
in research to identify the technical breakthroughs needed to allow us to use recovered
fiber in our premium products without animpact on product performance, manufacturing efficiency, resource and energy usage, andwaste generation.

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Wood Pulp Procurement Policy(continued)
P&G bought a total of 1.62 million ADMT (airdried metric tons) of pulp in 2010–2011 for use
in our tissue/towel products, diapers, and feminine hygiene products. The pulp was sourced
from the following regions:
United States

32.7%

Canada33.3%

Brazil34.0%

All of our pulp suppliers who own their own
forests have certified their forestry operations
f or sustainable forest management under
one of the following certifications schemes:
SFI, CERFLOR, PEFC, or CSA. P&G has a goalof increasing FSC certified fiber as acceptablesources are available that meet our product andprocess requirements. P&G is actively working
with suppliers to obtain credibly certified
material via a stepwise approach. At the end of
Fiscal Year 2010/2011, 81% of our pulp supply
was FSC Controlled Wood Certified. This
represents an increase from the 68% wereported last year.

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Definition of Key Terms in Wood Pulp Procurement Policy
TermDefinition

Unwanted Source

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

High Conservation
Value Forests

High Conservation Value (HVC) areas are critical areas in a landscape which need to be appropriately managed in orderto maintain or enhance high conservation values. There are six main types of HCV areas:• HCV1. Forest areas containing globally, regionally, or nationally significant concentrations of biodiversity values (e.g.,
endemism, endangered species).
• HCV2. Forest areas containing globally, regionally or nationally significant large landscape level forests, contained
within, or containing the management unit, where viable populations of most if not all naturally occurring species exist
in natural patterns of distribution and abundance.
• HCV3. Forest areas that are in or contain rare, threatened, or endangered ecosystems.
• HCV4. Forest areas that provide basic services of nature in critical situations (e.g., watershed protection, erosion control).
• HCV5. Forest areas fundamental to meeting basic needs of local communities (e.g., subsistence, health).
• HCV6. Forest areas critical to local communities’ traditional cultural identity (areas of cultural, ecological, economic, or
religious significance identified in cooperation with such local communities).

Illegal Sourced Wood

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

Conflict Timber

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

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Palm OilP&G is committed to the sustainablesourcing of palm oil. By 2015, we intend
to purchase and use palm oil that we canconfirm to have originated from responsible and sustainable sources. We willseek to accomplish this goal through thefollowing key steps:
Supplier and Partner Coaching
We will continue to share and reinforce our
expectations related to sustainability, andencourage and reward sustainable behavior
on behalf of our partners and suppliers. This
will include visits to our suppliers and audits of
their on-the-ground operations to ensure that
their practices will meet or exceed our sustainability expectations, including their selection,purchase, and responsible use of land for theplanting of palm plantations. We recognize thecriteria and certification of the Roundtable for
Sustainable Palm Oil (RSPO) as evidence ofsustainable palm oil sourcing. We will continue
to partner with both known suppliers withwhom we have long-standing relationships andtrust, as well as with emerging suppliers whoembrace and support our corporate
sustainability principles and expectations.

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

Industry Influence
We will continue to support industry efforts
to eliminate irresponsible and/or illegal deforestation of land for use in the planting and harvesting of palm plantations, as well as efforts
to help ensure the appropriate selection anddesignation of land for such uses. This year,
P&G joined the Roundtable for Sustainable
Palm Oil (RSPO).
To learn more about RSPO, please go to:www.rspo.org

Results
3.4% of our total 2010 annual consumptionof palm oil and palm kernel oil was certified
palm oil on a mass basis. Our first site will be
RSPO supply chain certified in 2011 and we areon track to meet our 2015 commitment.

Consumer Goods Forum Commitment
on Deforestation
As a member of the Consumer Goods
Forum, P&G joined other member companies in a pledge to mobilize resources within
their respective businesses to help achieve
zero net deforestation by 2020.
Members companies will achieve thisboth by individual company initiatives
and by working collectively in partnershipwith governments and NGOs. Together
they will develop specific, time bound andcost effective action plans for the different
challenges in sourcing commodities likepalm oil, soya, beef, paper, and board in asustainable fashion.
Member companies will also work withother stakeholders – NGOs, Development
Banks, Governments etc – to create funding
mechanisms and other practical schemesthat will incentivize and assist forested
countries to conserve their natural assets
and enable them to achieve the goal ofzero net deforestation, whilst at the sametime meeting their goals for economic
development.
To learn more about the Consumer
Goods Forum’s efforts, please go towww.ciesnet.com.

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Our commitment to improving everyday
lives begins with our own day-today operations. And we’re making
progress — reducing energy usage andwater consumption, and reducing theamount of manufacturing waste going tolandfills. We’ve expanded this focus onefficient and environmentally responsible
operations across our end-to-end supply
chain. We’re collaborating with supplierson the front end and our finished productlogistics on the back end to make steady,lasting improvements in our operations.

Commitment throughOur Operations

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Progress at-a-glance
Energy Usage

CO2 Emissions(Per Unit of Production)-16

Reduction
since
July 2007

07 070707

08 0808
08(Per Unit of Production)%

09 090909

10 1010
10

Reduction
since
July 2007			

11 1111
11 07 0707
07

%)(20
%)%
%))
Goal
Goal
Goal
(20
Goal
(20
(20

08 080808

09 090909-12%

10 101010

11 1111
11

%)(20
%)%
%))
Goal
Goal
Goal
(20
Goal
(20
(20

% -11%%% -14-14% -14%%% -16-16
% -16
%%
%
-16
-6%-6%-6-6%-11-11-11%-14% -10-10% -10%%% -11-11% -11%%% -12-12% -12%%%-8%-8%
-8
-8%
-10
-11
-12

We are making excellent progress towards theenergy footprint reduction goal. Energy usages
are derived from purchased energy, purchased
fuels, and alternative and renewable energy.
Key elements to delivering the goal are ourefforts to conserve energy and reapply best-inclass approaches.

While P&G is not an energy intensive company,
we still have a role in controlling greenhousegas emissions, and we are making progress.
Our focus has been on direct CO2, which isderived from usage of fuels. In addition, we
continue to make progress on Total CO2 (direct+ indirect) reductions by making changes infuel selection.

Waste Disposed

Water Usage(Per Unit of Production)(Per Unit of Production)

Reduction
since
July 2007			

07 070707

08 0808
08-57

Reduction
since
July 2007

10 101010

07 070707%

09 0909
09

11 1111
11

%)(20
%)%
%))
Goal
Goal
Goal
(20
Goal
(20
(20

% -21
%
% -30-30%-30%%% -50-50%-50%%% -57-57%-57%%%-21-21
-21%
-30
-50
-57

Total waste disposed includes non-hazardousand hazardous solid waste, air emissions, andstrength of effluent measured as chemical
oxygen demand. Results have been delivered
through beneficial reuse of materials bothinternally and externally.

-22%
08 080808

09 090909

10 101010

11 1111
11

%)(20
%)%
%))
Goal
Goal
Goal
(20
Goal
(20
(20

% -13-13% -13%%% -16-16% -16%%% -22-22%-22%%%-7%-7%
-7
-7%
-13
-16
-22

Water consumption reductions have been
driven by a rigorous conservation program andreapplication of best-in-class processes acrossour businesses. While this work is focused on
all sites, we put special focus on our large sites
and those in water scarce areas.

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Committed to Reducing
Manufacturing Waste
Transforming waste into alternative products. To reduce waste at our manufacturing plants

and distribution centers, P&G employs a dedicated global team of experts. The GARP team(Global Asset Recovery Purchases) has expertise in creating value from waste.
When a P&G facility has something it cannot recycle, GARP steps in to help. Thanks to them,
many materials that were once destined for a landfill or incineration are being put to gooduse — or sold for re-use, reducing the virgin materials that other companies require.
To date, 16 P&G plants and distribution centers have achieved zero manufacturing waste
sent to landfill. This means that 100% of their manufacturing waste is beneficially re-used
and diverted from landfills. Shown at right are some of the creative ways the GARP team has
found a new life for waste.
F O R B E S M c D O U G A L L , Technical Leader, P&G GARP Team“We start by simply focusing on optimizing the recycling of conventional materials such as
cardboard, plastics, and metals. While this seems easy, we must make sure we create processes that enable our employees to sort everything efficiently and avoid contamination ofthese different materials. Then we bring in our Alternative Use team to help identify solutions
for other scrap materials that have value in specific niche markets, such as wastewater andsludges. In some countries we use sludges as an ingredient in the manufacture of bricks andin others we use them as soil enhancers. I know that the work we are doing within the GARP
team is delivering significant environmental benefits to all of our sites and the communities inwhich they operate.”•

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Scrap Dental Floss
Industrial Spill Pillows
Excess floss is repurposed in Mexico as thefilling in pillows that are used to clean
up industrial spills.

Excess Feminine Pads
Shoes
In India, scrap pads are recycled into plastic
soles to make low-cost shoes.

Hair Care Manufacturing Waste
Construction Bricks
In Thailand and China, the waste left
over from the manufacturing process is
combined with clay and coal ash, thenheated to make bricks.

16

Sites have reached zero
manufacturing waste sent
to landfill

After
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Committed to Renewable Energy
Harnessing the wind, saving costs. P&G is expanding its portfolio of renewable energy

sources. With each new investment, these new methods are making us more efficient andself-sufficient, decreasing our dependency on conventional petroleum-based energy sources.
In 2011, we installed a wind turbine at P&G’s pet care plant in Coevorden, Netherlands. Our
first investment in wind energy, this turbine will supply approximately 17% of the pet care
plant’s annual energy needs, producing approximately 5,500 megawatt hours of energy per
year, which is enough energy to power up to 1,500 houses in the Netherlands.

5,500

17%

Megawatt hours of energy
produced per year.

The turbine powers 17% of theplant’s annual energy needs.

V I N C E N T S T R U Z K A , Plant Finance Manger, Iams Plant, P&G Netherlands“When I came to the plant, I had one focus: to reduce costs. To me, waste is a cost.
Energy is a cost. And when I was looking at how to solve these challenges, I wanted
to explore all of the possibilities. I was surrounded by people thinking green, and wedetermined that wind energy was the most appropriate solution for our region, our
specific site and our culture. The community response has been wonderful. People
who live here are very proud to have the first wind turbine in the province. And thisinitiative was also very energizing to all of us at P&G.”

Vincent Struzka on top of the
100-meter wind turbine.

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Committed to Supplier
Environmental Performance
Expanding the Supplier Scorecard. In 2010, P&G issued its first environmental sustainability

supplier scorecard. The scorecard was designed to track and encourage our suppliers’
own improvements in environmental metrics such as energy, water, waste, greenhouse gas
emissions, and innovation. This tool was also intended to build better collaboration acrossthe supply chain and accelerate sustainable innovation.
Year-one results showed that the scorecard was relevant across the wide range of industries
our suppliers represent. Most suppliers were able to report on the majority of metrics we requested. The scorecard also proved to be an effective way to generate sustainable innovation
ideas from our suppliers, 38% of whom submitted ideas in the first year.
In 2011 we issued a revised scorecard, incorporating supplier feedback from the prior year’s
process. Unlike the first year, when the scorecard was not mandatory to complete, the 2011
scorecard factors into a supplier’s rating and will affect its ability to do more business with
P&G. Details on this open-source tool can be found at www.pgsupplier.com.

•

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Scorecards Submitted
by Industry
29% Packaging & Hygiene
14% Chemicals
10% Natural Commodities & Ingredients
9%

Capital9%Global Brand Building

8%

Durables/Devices

7%

External Manufacturing

7%

Global Business Services

7%

Logistics

38%
of suppliers included
sustainable innovation ideas
in their year-one scorecards.

N E I L M c F A R L A N E , Director of Sustainability, Firmenich“Sustainability is at the heart of our values and integral to our strategy at Firmenich, and weare pleased to be a member of P&G’s supplier sustainability board. The group is a valuablenetwork for P&G suppliers to talk and discuss innovative ways of improving in the area ofenvironmental sustainability. P&G’s leadership led to the development of an open-source
scorecard, which is an important tool to standardize the scoring process across all industries.
When we filled out the supplier scorecard, seeing the P&G-only numbers helped us identify
opportunities and make improvements along our Supply Chain. We also get inspiration from
P&G’s ambition in this area — a good example being P&G targets on renewable energy use —which we have built into our own 2015 objectives.”

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Committed to Sustainable Design
Taking our building efficiency global. To ensure ongoing excellence in the sustainable designof our operations, P&G has committed to LEED® certify all new construction of manufacturing plants, distribution centers, and office buildings.
LEED (Leadership in Energy and Environmental Design) is an internationally recognized green
building certification system. Developed by the U.S. Green Building Council (USGBC), LEED
provides building owners and operators with a framework for identifying and implementing
practical and measurable green building design, construction, operations, and maintenancesolutions. As the global industry standard for sustainable design, LEED evaluates a facility’s
potential impact in several areas, including CO2 emissions, energy, waste, water, andenvironmental quality.

The Taicang, China, plantis one of P&G’s first sites topursue LEED certification.

Credit: U.S. Green Building Council

P&G’s initial sites to pursue LEED certification include plants in Taicang, China; Box Elder, UT,
USA; and the Singapore Innovation Center.
S A R W A R S H A R E E F, Associate Director, P&G Global Facilities Engineering“LEED’s primary focus is commercial buildings, so large-scale manufacturing facilities likeours bring added complexity in areas like energy performance and water efficiency. But weare adapting the LEED process globally — whether the project is in China or Brazil or Utah,
you see a highly consistent level of rigor and performance. That takes a lot of education anddiligence among project teams, but we continue to move toward our certification goals.
It’s a process that’s becoming part of our everyday work.”

Credit:U.S. Green Building Council

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GRI Index

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

2011 Global Business Unit Detail (1) (absolute units x 1,000)
Fabric Careand Home
Care

Baby Careand Family
CareTechnical
Centers

Distribution
Centers

2011

2010

2009

BeautyGrooming

Health Care

Snacks and
Pet Care23,291

24,21322,936

2,045

730

1,084

1,224

13,377

4,832

0

0

593

784

1,080

129

50

47

10

203

154

0

0

Generated Waste

1,025

1,048

911

141

25

109

52

316

346

15

21

Percent Recycled / Reused Waste

69%

63%

63%

60%

88%

80%

42%

53%

89%

32%

75%

Production (metric tons)
Product Shipped
Raw Materials from Recycled Sources
Waste ( metric tons )Disposed Waste (metric tons)
Solid Waste — Non-Hazardous

250

287

270

51

2

18

29

113

24

9

4

Solid Waste — Hazardous

23

28 (2)

27

2

1

1

0

18

0

1

1

Effluents (excluding water)

27

34

24

4

0

2

1

14

5

1

1

Air Emissions (3)

15

15

19

1

0

1

1

4

9

0

0

73,99871,84270,646

4,014

2,509

3,105

2,908

17,09541,404

2,475

488

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

(5)

(4)

2,906

2,795

2,625

120

59

57

106

533

1,956

63

13

79,99980,91478,556

6,711

833

1,954

1,873

16,74745,893

5,989

0

2.57

1.83

1.91

0.05

0.00

0.23

0.00

2.22

0.07

0.00

0.00

1 metric ton = 1,000 kg = 2,205 lbs.
(1) Beauty includes Hair Care and Personal Beauty Care. Grooming includes Blades and Razors, and Devices. Health Care includes Personal Health Care, Feminine Care, and Oral Care.
			 Snacks and Pet Care includes Snacks and Pet Care. Fabric Care and Home Care includes Fabric Care, Home Care, and Batteries. Baby Care and Family Care includes Baby Care and 							 Family Care. Technical Centers includes each of the technical and research centers that support the business units. Distribution Centers includes facilities that distribute finished product.			
			 2011 numbers come from P&G manufacturing sites only; they do not include production from contract manufacturing operations.
(2) Reflects corrected information listed in the 2010 report.
(3) Air emissions include particulates, SO2, NOx, CO and VOC.
(4) Greenhouse gas emissions resulting from fuel combustion sources.
(5) Releases defined in the U.S. Superfund Amendments and Reauthorization Act (SARA) by the U.S. Environmental Protection Agency.

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Social Responsibility

Product Supply
Overall Approach
We have a strong history of reducing
the environmental footprints of ouroperations. Our production-adjusted
footprints, including Energy Usage, Direct
CO2 Emissions, Waste Disposed, andWater Usage, have been dramaticallyreduced during the last nine years. During
2011, we continued to have outstanding
production-adjusted reductions that haveallowed us to meet a 50% reduction forthe decade spanning 2002 – 2012 on allenvironmental footprints. Importantly,
these sustainability reductions are alsodelivering significant cost savings.

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EnergyEnergy Consumption
To deliver these outstanding results, ouroperating site personnel along with staff
resources from the GBUs, MDOs, Corporate
Engineering, Purchases, and Finance havecombined forces working against a common
Product Supply Sustainability approach. This
comprehensive approach will allow us to more
systematically reapply the successful current
operations strategies used over the past eight
years. It not only addresses efforts to deliver
our current operations goal, but it looks at
strategies to:• Expand our efforts to include the entire
supply chain via partnerships with MDOs
and suppliers.
• Continue efforts on our future operations
beyond 2012 via partnerships with R&D todeliver breakthrough sustainable innovation.

4-year Results (2007 – 2011)

The Energy Consumption graph (in gigajoules,
GJ) shows the addition of Technical Centers
and Gillette for all three years. Distribution
Centers have been added over the last two
years. Energy consumption over the last three
years has been 70.6 million GJ, 71.9 million GJ,
and 74.0 million GJ in 2009, 2010, and 2011,
respectively. Since 2002, we have reduced
energy consumption by 52% on a production
adjusted basis.
ENERGY CONSUMPTION BY GBU(Millions of gigajoules)

70.6
71.9
74.0

09
10
11

Absolute

Production-Adjusted

Energy Usage

-16%

-5%

-52%

Direct CO2 Emissions

-12%

-1%

-53%

Waste Disposal

-57%

-52%

-61%

Water Usage

-22%

-12%

-58%

Operations has made excellent progress toward
delivering our 2012 goal of a 20% energy
footprint reduction. Across businesses, teams
have embraced the targets and integrated
sustainability into their daily work. A keyelement to delivering the goal is our energy
conservation efforts. The three strategies are:
1. E liminating losses and encouraging
sustainability behavior and culture
2. E xecuting specific footprint reduction
projects

Distribution Centers
GBS Facilities
Household Care
Beauty3. E nsuring that new initiatives andcapacity projects are developed in a smart,sustainable way

Since July 2002

Production-Adjusted

As part of our ongoing efforts to minimize
losses, the Company does a loss analysis at theplant level. Losses are defined as anything notshipped out the door as product, including
energy used. When energy is identified as amajor loss at a plant, it receives intense focus
for loss reduction.

REDUCTION IN ENERGY CONSUMPTION(Percent reduction versus 2002 level, per unit of production)

09
10
11

48%
50%
52%

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Greenhouse Gas
Every company in every sector of the economy
has a role in controlling greenhouse gas
emissions. While P&G is not an energy-intensive company, we are stepping up to do ourpart. P&G is committed to energy-efficient
programs and we participate in voluntary
programs. Our focus has been on direct CO2
emissions (i.e., Scope 1) and emissions data forthe last three years has been 2.6 million metrictons, 2.8 million metric tons, and 2.9 million
metric tons in 2009, 2010, and 2011, respectively. Since 2002, we have reduced direct CO2
emissions by 53% on a production-adjusted
basis. While we have already achieved our goalof a 50% reduction in direct CO2 emissions forthe period of 2002–2012, hitting our goal of a
20% reduction for the period of 2007–2012
will be challenging. We will be focused on thisissue during FY 11/12 and are implementing
plans to achieve further reductions.
We continue to monitor and report our indirect
CO2 emissions (i.e., Scope 2), which decreasedslightly in 2011. Since 2002, we have reduced
indirect CO2 emissions by 49% on a production-adjusted basis.

(Million metric tons)

2.6
2.8
2.9

10
11

Employees & Stakeholders•

New Vision & Goals

Distribution Centers
GBS Facilities
Household Care
BeautyP&G recognizes the scientific consensus
linking greenhouse gas emissions and climatechange. P&G is not an energy-intensive
company, but as a global citizen we areconcerned about the negative consequencesof climate change and believe that prudent andcost-effective action by governments, industry,
and consumers to reduce emissions to theatmosphere are necessary.
We will focus our efforts in two main areas:

SCOPE 1 GREENHOUSE GAS EMISSIONS*(Percent reduction versus 2002 level, per unit of production)

52%
53%
53%

09
10
11

•

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Climate Change
PolicySCOPE 1 GREENHOUSE GAS EMISSIONS*

09•* CO2 from fuel combustion sources• Reducing the intensity of greenhouse gas
emissions (GHG) from our own operations
through:• Helping consumers to reduce their own GHG
emissions through the use of our products via:– Product and packaging innovations thatenable more efficient consumer productuse and energy consumption– Consumer education
We will continue to publicly disclose ourgreenhouse gas and energy usage data
through the Company Sustainability Report
and the Carbon Disclosure Project.

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

SCOPE 2 GREENHOUSE GAS EMISSIONS(Million metric tons)

1.4
1.4
1.3

09
10
11

– Setting goals to drive continued improvement in our GHG emissions

Distribution Centers
GBS Facilities
Household Care
BeautySCOPE 2 GREENHOUSE GAS EMISSIONS(Percent reduction versus 2002 level, per unit of production)

09
10
11

39%
42%
49%

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Waste Disposed

Waste Recycled

Total Waste for Disposal

The total percentage of waste recycledincreased to 69% versus last year.

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

WASTE RECYCLED(Percentage)

63%
63%
69%

09
10
11

Non-Hazardous Solid Waste Disposed

TOTAL WASTE DISPOSED

09(Thousand metric tons)

10

Overall, the non-hazardous solid waste
disposed to landfill decreased from last year to
250 thousand metric tons. P&G continues tofind innovative recycling methods.
NON-HAZARDOUS SOLID WASTE DISPOSED(Thousand metric tons)

340
363
315

11

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Hazardous Solid Waste Disposed
Hazardous wastes are defined by regional
policies and local rules, so they vary fromregion to region. To further reduce our risks,
the number of approved hazardous waste
disposal sites that all plants use has remained
limited. We remain focused on trying tominimize hazardous waste disposal.
(Thousand metric tons)

27
28

09
10

23

11

Distribution Centers
GBS Facilities
Household Care
Beauty

270
287
250

11

10

•

Employees & Stakeholders

HAZARDOUS SOLID WASTE DISPOSEDThe past three years, results have beenencouraging on a production-related basis.
Total waste disposed for the last three years
has been 340 thousand metric tons, 363
thousand metric tons, and 315 thousand metrictons in 2009, 2010, and 2011, respectively.
Since 2002, we have reduced waste disposedby 61% on a production-adjusted basis.

09•

Distribution Centers
GBS Facilities
Household Care
BeautyDistribution Centers
GBS Facilities
Household Care
BeautyREDUCTION IN WASTE DISPOSED(Percent reduction versus 2002 level, per unit of production)

09
10
11

53%
55%
61%

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Water

Effluents to Water

Water Policy

Water Consumption

Wastewater COD (Chemical Oxygen Demand)
disposed has decreased vs. last year.

At P&G, water is of crucial importance for boththe production and use of our products. Thus
our approach to water aims at responsible use
by both our Company and the consumers who
use our products. The Company respects the2010 United Nations General Assembly
resolution which recognizes the right to safe
and clean drinking water and sanitation as ahuman right that is essential for the fullenjoyment of life and all human rights. In all
countries in which we operate, we will help
ensure the sustainable use of water by abiding
by the policy as outlined below:

The Household Care business unit is our largest
water user. Within Household Care, our Family
Care operations have the greatest need forwater. Water consumption over the past three
years has been 79 million m3, 81 million m3,
and 80 million m3 in 2009, 2010, and 2011,
respectively. Since 2002, we have reduced
consumption by 58% on a productionadjusted basis.
WATER CONSUMPTION BY GBU(Million cubic meters)

79
81
80

09
10
11

GBS Facilities
Household Care
BeautyREDUCTION IN WATER CONSUMPTION(Percent reduction versus 2002 level per unit of production)

09
10
11

52%
55%
58%

WASTEWATER COD DISPOSED BY GBU(Thousand metric tons COD)

30

09

40

10

34

11

GBS Facilities
Household Care
Beauty1. Q
 uality—The Company will continually
improve our operations to preserve thequality of water in the communities in which
we operate. The Company is also committed
to a long-term, not-for-profit social andemergency relief effort to provide safe
drinking water in the developing world
aimed at reducing illness and death,particularly in children.
2. Availibility—The Company is committed tosustainable water management by both ouroperations and consumer use of our
products. This commitment includes water
reductions goals, use of new technologies,
product innovation using a life cycle
approach, and siting decisions using awatershed approach.

•

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3. A
 ffordability—The Company understands
that water use may affect affordability. Thus
we are committed to water efficiency andsustainable use of water by our operations.
We will also seek innovative ways to reducewater use by our consumers as well educate
them about the opportunity to save water.
This will positively impact the cost of water
to the Company, our consumers and thecommunities in which we operate
4. Information—The Company will makeavailable relevant and appropriate factual
information about our water use. The
Company is also committed to raising theawareness of water-related issues with ourconsumers, stakeholders, and business
partners with t he aim of sustainable wateruse. We support external efforts to better
understand key water-related issues withexternal partners, NGOs, associations, andcommunities as well support stewardshipinitiatives, standardization, and measurements/reporting tools.
5. L egal Compliance—The Company will meetor exceed all applicable legislative andregulatory requirements with respect towater quality and consumption.

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Air Emissions
Each site monitors total suspended particulates, volatile organic compounds (VOCs),
carbon monoxide (CO), nitrogen oxides (NOx )and sulfur oxides (SOx ). Overall, the total air
emissions stayed flat versus last year at 15
thousand metric tons.
AIR EMISSIONS(Thousand metric tons)

19

09

15
15

10
11

Household Care
Beauty•Products•

Operations•

Social Responsibility

Compliancewith Laws andRegulations
There are numerous health, safety, andenvironmental requirements worldwide.
Plants are subject to safety rules and emission
limits with operating requirements that may
be embodied in sources such as statutes,
regulations, laws and permits. It is P&G’s
intent to comply with both the letter and thespirit of statutes, regulations, laws, andpermit requirements. Identified complianceissues are treated seriously, and allnoncompliance matters are resolved as
expeditiously as possible.

•

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Notice of Violations(NOVs)

Fines

2011

2010

2009

36

46

34

$53,259$112,340$15,285

The following is a more detailed breakdown ofglobal Notices of Violation (NOVs) for fiscal year
2011 and includes U.S. Occupational Safety and
Health Administration (OSHA) interventions.
NumberFines

Water-Based9$6,040(United States only)

Air-Based4$2,500

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

Solid Waste-Based6$6,300

Paperwork5$11,000

Transportation-Based3$5,100

Other

4$1,054

Worker Safety5$21,265

Total

36

$ 53,259

SARA 313 Releases

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Business Continuity

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

Number

•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 and sites of our key suppliers andservice providers that could significantlyinterrupt business operations, and the business
impact of such events. Site and business unit
leaders then develop contingency plans tominimize business interruption if a disabling
event should occur. Crisis Management teamstructures are defined to manage businessrecovery using the predefined contingency
plans. Tests are conducted annually to ensurethat the contingency plans are sufficientand up-to-date.
Business Continuity Plans are audited regularly,
and a report of the Business Continuity
Program’s status is made each January to the
Audit Committee.

The amount of SARA 313 releases increased
versus last year. The increase was driven by
two sites and corrective measures have been
put in place.
SARA 313 U.S.
(Total metric tons released or transferred)

09
10
11

1,910
1,826
2,570

SARA is reported one year behind; 2011 entry reflects
2010 data.

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We believe that profit responsibility andsocial responsibility must go hand-in-hand.
That’s why touching and improving lives
is at the heart of our business model, andit’s what motivates us to make a differencein communities around the world.
Through our global Live, Learn and Thrive
Social Responsibility programs, we’redemonstrating that doing well and doing
good can flow from the same Purpose.

Commitment toSocial Responsibility

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Commitment to Social Responsibility

LIVE, LEARN AND THRIVE

Since 2007

P&G CHILDREN’S SAFEDRINKING WATER PROGRAM

2.9

315

GOAL
MET

millionNumber of Children Reached

60 M

135 M

210 M

Liters of Clean Water Delivered

billion

115

315 M

Days of Disease Prevented

Goal(300 Million (M) cumulative)

Since 2007

million>14,000
Lives Saved
07

08

09

10

lives

11

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Committed to Disaster Relief
Responding in moments of crisis. Over the past year, natural disasters had a devastating
impact on people in many parts of the world. With compassion and careful planning, we haveworked with relief partners to provide P&G products and services that help people feel more
like themselves — and help a temporary shelter feel more like home. Through these services
that are directly connected to our brands, and through donations of products and cash, we’vebeen able to help people in Japan, Pakistan, Australia, New Zealand, Haiti, and the U.S.
rebuild their lives.
I K U K O I M A M U R A , Team Leader, Fundraising Team, Marketing Department, World Vision Japan“After the tsunami hit, P&G provided shampoo and conditioner, which World Vision Japan
included in 10,000 sanitary kits that were distributed to evacuee centers across the affected
region. As we were assembling the kits, an evacuee center requested the family-size bottles ofshampoo, instead of the smaller, travel-size bottles. P&G provided the bottles for World Vision
to distribute. People were used to seeing the larger bottles in their own homes, and in a small
way, having them gave reassurance that they would someday go back to their normal lives.”

Responding to the Japan Earthquake and Tsunami In response to the Japan earthquake andtsunami in March 2011, P&G sent shipments of Pampers diapers and wipes, Whisper feminine
hygiene products, shampoo and conditioner into the hardest-hit areas.
Duracell Power Relief During the past year’s storms that struck many parts of the U.S.,
Duracell Power Relief trucks were present with flashlights, batteries, and recharging stations formobile devices.
Tide Loads of Hope Tide Loads of Hope sent its mobile laundromat to areas across the U.S., withmore than 32 energy-efficient washers and dryers that can clean over 300 loads of laundry per day.
P&G Children’s Safe Drinking Water Program In July and August of 2010, we mounted ourlargest-ever disaster relief response to provide clean water to people in Pakistan affected by flooding.

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Committed to Child Development
Partnering to expand the United Way. In Latin America, P&G has helped start up new United
Way organizations across Venezuela, Mexico, Brazil, Chile, Colombia, Argentina, Peru, Costa
Rica, Guatemala, and Panama. P&G people play active roles in these organizations. Many of our
executives serve as board members. Employees from all levels of the Company contribute their
passion and expertise on various committees and activities, and also make financial donations.

P&G and the United Way have championed a flagship program called Nacer Aprendiendo(Early Learning). The program promotes broad public awareness of early learning, and has
developed a variety of tools, materials and interventions ranging from Ludotecas (Learn & Play
Centers) in rural areas, to qualifying “Community Mothers” who take care of children while
their mothers are at work.
P&G Latin America and its employees have collected and invested millions of dollars for Nacer
Aprendiendo, helping vulnerable communities across Latin America and benefiting more than
300,000 children in need.
M A R I A D E L R O S A R I O S I N T E S , Regional Vice President, Latin America, United Way Worldwide“From P&G, we’ve gained strategic insight and direction that have changed the way we think
about our programs. We had a meeting with P&G where we had all of the Latin American
United Way organizations together. It was an important moment because we started thinking
beyond our individual, local programs, and more about a coordinated approach to regional
programs. The Nacer Aprendiendo program was the result, and we’re now using it to develop
a model that other organizations can follow.”
Helping more than

300,000
children in need.

Venezuela, Mexico, Brazil,
Chile, Colombia, Argentina,
Peru, Costa Rica, Guatemala,and Panama

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Committed to Employee Volunteering
Strengthening our community involvement. This year, P&G announced a renewed emphasison connecting our employees to the Company’s Social Responsibility programs as one more
way all of us can experience and participate in our Purpose more deeply.

We have a long heritage of volunteerism in our Company. P&G people continue to give
selflessly of their time to make our communities stronger and more vital places to live andwork. This has always been part of P&G’s DNA everywhere we do business.
Volunteering deepens our understanding and appreciation of those we serve and seek toserve. Whether we volunteer close to home or thousands of miles away, we see how others
live. We learn about their challenges and their joys. We uncover insights. These insights leadto innovations that can help us better meet their most fundamental needs. In this way, we’re
helping to improve lives, not just in the moment, but for generations to come.
K I R K P E R R Y, President, Family Care

“I have been with P&G for 21 years. I have worked and lived in three countries, and have traveled the world. But I have never had the opportunity to develop the depth of relationship as I
did with the people with whom we lived and worked in Mexico. We spent time in their current
homes. We grew to understand their living conditions, how they got by, what they aspired to,what they wanted. As we built their new homes, we took our in-home visits to a whole newlevel. The team walked away with a deeper commitment to deliver to our lower income
consumers in a way we never have before (regardless of where we were from). We truly saw
how we, and our brands, can touch and improve consumers’ lives. No focus group, 1:1
interview or in-home visit could have given us this depth.”
P&G volunteers perform skits on dental hygienewith migrant Chinese children.

We introduced three volunteering programs and encouraged all employees to take part.

Individual Volunteering

Team Building

Global Service Trips

Opportunities in our local
communities that employees
participate in on their own
or with their families.

Opportunities for colleagues
to improve life together,in communities where they
live and work.

A new program for
employees to assist oneof three Live, Learn andThrive programs in Mexico,
China, or Malawi.

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Products•

Operations•

Social Responsibility •Employees & Stakeholders

Committed to
Employee
Volunteering(continued)

This renewed emphasis on committing
employee time to gathering consumer andmarket insights, while helping address some of
the world’s most important social challenges,
is just one step on our journey to serve andimprove the lives of more people, in moreparts of the world, more completely. This istrue in the communities where our employees
live and work, but it was especially evident for
employees who participated in the first roundof Global Service Trips in April and May 2011.

MEXICOMARCOS A. SALAS

P&G Venezuela, R&D
Global Service Trip
to MexicoCHINA

J U R A J S LOTA

P&G Czech Republic,
Business Analyst
Global Service Trip
to China

M A LAW I

H E AT H E R J A R R E TT

P&G United States, Sales
Global Service Trip
to Malawi•

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Creating Homes“Our team of 20 P&Gers had never met before, but we shared a common desire tohelp improve life for the three families we served. Before our visit, each family slept
in shared beds…in cramped rooms…in houses with holes and asbestos in the roof.
Yet they held to dreams of new homes and better opportunities for their children.
As we worked side-by-side with the families, we learned the importance ofcommunity and identified opportunities for P&G innovations that could be sharedby multiple families to help keep them and their children safe and healthy. What a
blessing that our P&G team from around the world could help provide shelter tothe hard-working families we served while committing to making a difference inthe future as well.”Teaching Hygiene“Teaching migrant children in the outskirts of Shanghai was, for lack of abetter word, amazing. Our Global Service Team of 16 P&Gers witnessed firsthandthe challenging conditions in which these migrant families live — tiny apartments
without clean water, parents with only one day off each month, children without
the right to free education outside their home town. We were able to impact
the children’s lives in a number of ways, but the insights we gained related tothe children’s health and hygiene in the schools were the most powerful.
We were able to use P&G’s expertise in oral care and handwashing to makea difference for the children that will continue for years (and, hopefully,
generations) to come.”

Providing Clean Drinking Water“Beyond the birth of my own children, being a part of P&G’s Global Service Trip to
Malawi was the most life-changing experience of my life. In our week in Africa,
our team of 11 incredible employees helped provide clean water to dozens ofvillages and thousands of people. Not surprisingly, one of our greatest insights
was the importance of access to water. While P&G’s PUR technology can makecontaminated water sources safe to drink, having limited access to water caninhibit the health and vibrancy of a community…imagine not being able to easily
wash your hair or brush your teeth because the nearest water source is miles
away. This understanding may lead to innovations that can help P&G improve theeveryday lives of those we served in Malawi and around the world.”

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Live, Learn and Thrive Locations
P&G is commited to improving life for children in need around the world.
North America• Canada• Puerto Rico
• United States

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

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

Central &Eastern Europe,
Middle East
& Africa• Azerbaijan• Bulgaria• Côte d’Ivoire• Czech Republic• Democratic
Republicof the Congo• Egypt• Estonia• Ethiopia• Hungary• Israel• Kazakhstan• Kenya• Latvia• Lebanon• Malawi• Morocco• Nigeria• Pakistan• Poland• Romania• Russia• Saudi Arabia• Slovakia• South Africa• Tanzania• Turkey• Uganda• Ukraine• Uzbekistan

Asia• Indonesia• Japan• Korea• Malaysia• New Zealand• Philippines• Australia• Singapore• China• Thailand• Vietnam• Hong Kong
• India

100 million

This year alone, P&G benefited more than
100 million children — that’s equivalent to
3 children every second of every day.
Learn and•Live,


Thrive locations

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Children’s Safe Drinking Water Emergency
Relief and Social Market Countries
Americas

Africa• Chile• Colombia• Dominican Republic• Guatemala• Guyana• Haiti• Honduras• Mexico• Nicaragua• Panama• Peru• St. Lucia• Venezuela• Angola• Botswana• Burkina Faso
• Cameroon• Chad• Côte d’Ivoire• Democratic
Republicof the Congo• Djibouti• Ethiopia• Ghana• Guinea Bissau• Kenya• Liberia• Malawi• Morocco• Mozambique• Namibia• Nigeria• Republic of theCongo• Rwanda• Senegal• Sierra Leone• Somalia• South Africa• Sudan• Tanzania• Uganda• Zambia• Zimbabwe

Asia/Europe• Afghanistan• Bangladesh• Cambodia• China• East Timor• India• Indonesia• Iran• Iraq• Laos• Maldives• Myanmar• Nepal• North Korea• Pakistan• Papua New Guinea• Philippines• Romania• Sri Lanka• Tajikistan• Thailand• Vietnam

and Social• ReliefMarket Countries

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

Health Intervention Trials
The U.S. Centers for Disease Control andJohns Hopkins University have conductedfive clinical trials of PUR and proven that it
significantly reduces diarrheal illness inchildren and the total population.
Diarrhea
Reduction

Location/Setting

Study Design

Rural
Guatemala2,982 people
52 weeks

24 – 29%

Rural
Guatemala3,401 people
13 weeks

40 – 72%

Rural Kenya —turbid water

6,615 people
20 weeks

17 – 42%

Pakistan —urban setting

12,090 people
39 weeks

59 – 64%

Liberia —refugee camp

2,191 people
12 weeks

87 – 95%

Diarrhea• 60% of PUR treated water is consumed
by children.
• The number of episodes of diarrhea per
child per year is:– 5 episodes in sub-Saharan Africa– 3.97 episodes in Latin America• 40% of PUR treated water is used by adults.
• The number of episodes of diarrhea per adult
per year is:– 0.49 episodes in sub-Saharan Africa– 0.56 episodes in Latin America• PUR use averts 50% of the diarrhea episodes.

Assumptions
General• Each PUR sachet treats 10 liters of water.
• An average of 1.5 liters of drinking water isused per child per day and 2 liters of drinking
water per adult per day.

• A diarrhea episode lasts an averageof 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
To learn more about the P&G
Children’s Safe Drinking Water program,please visit www.csdw.org.

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As highlighted throughout this report,
Employees & Stakeholders are criticalenablers of our sustainability program.
We also recognize our responsibilities
to our employees and stakeholders. Our
efforts to meet these responsibilities
are guided by our Purpose, Values, andPrinciples (PVP).

Commitment to
Employees & Stakeholders

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

Leadership• We are all leaders in our area of responsibility,with a deep commitment to deliver leadership results.

Our Purpose• We focus our resources to achieve leadershipobjectives and strategies.

We will provide branded products and servicesof superior quality and value that improve thelives of the world’s consumers, now and forgenerations to come.
As a result, consumers will reward us withleadership sales, profit and value creation,
allowing our people, our shareholders, and thecommunities in which we live and work
to prosper.

Our Values
P&G is its people and the values by which welive. We attract and recruit the finest people in
the world. We build our organization fromwithin, promoting and rewarding people
without regard to any difference unrelated toperformance. We act on the conviction thatthe men and women of Procter & Gamble will
always be our most important asset.
Integrity• We always try to do the right thing.
• We are honest and straightforwardwith each other.
• We operate within the letter and spiritof the law.
• We uphold the values and principles of P&G
in every action and decision.
• We are data-based and intellectuallyhonest in advocating proposals, including
recognizing risks.

• We have a clear vision of where weare going.
Consumers• We develop the capability to deliver
our strategies and eliminate organizational
barriers.

P&G Values

Ownership• We accept personal accountability to meet
the business needs, improve our systems, andhelp others improve their effectiveness.
• We all act like owners, treating the Company’s
assets as our own and behaving with theCompany’s long-term success in mind.
Passion for Winning• We are determined to be the best at doing
what matters most.
• We have a healthy dissatisfaction with thestatus quo.
• We have a compelling desire to improve andto win in the marketplace.

Integrity
Leadership
Ownership
Passion for Winning
Trust
P&G
BrandsP&G
PeopleP&G Brands and P&G People
are the foundation of P&G’s
success. P&G People bring thevalues to life as we focus on
improving the lives of theworld’s consumers.

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 foundation of trust.

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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 andwant to contribute to their fullest potential.

Innovation Is The Cornerstone of
Our Success“We incorporate
Sustainability into our
products, packaging,and operations.”• We value differences.

• We place great value on big, newconsumer innovations.

• We inspire and enable people toachieve high expectations, standards
and challenging goals.

•W e challenge convention and reinvent theway we do business to better win in themarketplace.

• We are honest with people about theirperformance.

We Are Externally Focused

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

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

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

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

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

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

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

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

•W e learn from both our successes andour failures.

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

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Products•

Operations•

Social Responsibility

Human Rights at P&G
Over the last six years, P&G has
consulted on or been actively involved in
the development of several social
responsibility initiatives. These include:
1. International Standard Organization (ISO)
26000 standard on social responsibility
2. UN Report on the issue of human rights
obligations related to access to safe
drinking water and sanitation by Catarina
de Albuquerque, United Nations
Independent Expert
3. UN report on Business and Human Rights by
Harvard Professor John Ruggie, SecretaryGeneral’s Special Representative for Businessand Human Rights
4. Update to the Organisation for Economic
Co-Operation and Development (OECD)
guidelines for multinational enterprises
5. Submission to the U.S. State Department by
the Investment Subcommittee of theAdvisory Committee on International
Economic Policy (ACIEP) on the implementation of the OECD guidelines• Employees & Stakeholders •New Vision & Goals•

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Human Resources
In the realm of human rights, the mostsignificant development was the UN Protect,
Respect and Remedy Framework and the
Guiding Principles for Business and Human
Rights. The Guiding Principles is the firstauthoritative global standard for preventing
and addressing the risk of adverse humanrights impacts linked to business activity andforms the basis for the human rights chapter of
the OECD guidelines.

Human Resources ensures that P&G
has the employees, organizational
design, and work culture to deliver
business productivity and to continually
improve consumer, employee, andshareholder value. They provide recruiting, training, development, diversity,
benefits, and compensation coordination for the Company.

Respect for human rights is implemented
through our policies, practices and due
diligence systems (e.g., employee rights;
employee benefits; health, safety, andenvironment; water; health services; HIV/AIDS:
product safety; worldwide business conduct
manual; sustainable guidelines for suppliers
relations; and Live, Learn and Thrive cause).
During the next year we will use the Guiding
Principles to identify and address any gaps inour human rights policies and programs.

• Career discussions, performanceappraisals, assignment plans, transfer andpromotion plans

It is the Company’s intent to develop all
employees to their full potential. To achieve
this goal, the following support systems
are in place:• Informal network support groups• Mentoring to provide informal support andguidance, in addition to coaching and training
provided by each employee’s direct manager

Employee Privacy
Procter and Gamble is committed to maintaining the principles of integrity and trust withrespect to our employees’ privacy. We will
only collect personal information about ouremployees where it is necessary to carry out
legitimate business objectives and to provide
employee services. Access to Employee
data will be limited to only those that have alegitimate business need or to fulfill alegal requirement.

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

Wages
P&G supports paying employees a competitive
wage, as benchmarked against other leading
companies. Consistent with our principle ofvaluing personal contribution and mastery, we
provide employees the opportunity to develop
their skills and capabilities to enhance theirability to succeed in their career, consistent
with the needs of the business.

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

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Diversity & Inclusion
Diversity & Inclusion is deeply rooted in
our Company’s Purpose, Values andPrinciples. It is who we are, and aspire
to be, as a Company.
When P&Gers come together, we create a richtapestry. Each of us is truly unique. Beyond thevisible differences, we come from diverse
traditions, with a wide array of personal
experiences and points of view.
Diversity at P&G brings together individuals
from different backgrounds, cultures, andworking and thinking styles, providing
remarkably different talents, perspectives andlife and career experiences. We are respectfulof all employees irrespective of race, gender,color, religion, national origin, age, sexual
orientation, gender identity and expression,
disability, or any other non-job-related
personal characteristic.
Inclusion at P&G inspires a culture where weleverage and celebrate the diversity that makes
each of us unique—skills, passions, points ofview, and experiences.
P&G’s Diversity & Inclusion is one of ourgreatest strengths and we are committed toensure it remains part of our Company’s DNA.
To do this we have established a Diversity &Inclusion Vision and Mission that is simple,
inspirational and aspirational:
Vision:Be, and to be recognized as the Global Leader
in Diversity & Inclusion.
Mission:Everyone Valued,
Everyone Included,
Everyone Performing at Their Peak™

Diversity & Inclusion comes to life througheveryday experiences and interactions thatinspire P&Gers to unleash their potential andperform at their peak. This peak performanceis directly related to our ability to improve thelives of the world’s consumers. P&G iscommitted to creating a winning culture wherecolleagues and managers of others demonstrate sincere care for each other, extending apersonal touch to each individual andgenuinely getting to know each other.

Diversity & Inclusion Starts with
P&G’s Purpose
P&G brands touch the lives of people aroundthe world. P&G people work to make sure
those brands live up to P&G’s Purpose to touchand improve the lives of the world’s consumers, now and for generations to come. Thisrequires P&G to be more inclusive and leverage
more aspects of diversity to reach and serve
diverse consumers and markets, making
Diversity & Inclusion a sustained competitive
advantage for the continued growth of P&G.
•D
 iversity & Inclusion is a critical enabler for
P&G to be the “Employer of Choice” that
hires, develops, engages, and retains the besttalent from around the world, reflecting themarkets and consumers we serve.
•D iversity & Inclusion is implicit in the
Company’s Purpose, Values and Principles.
It is also explicit in the Company’s businessstrategy for success.
 e are able to connect and develop diverse•Wknowledge, skills, and experiences that drive
new ideas, innovation, products, andservices, improving people’s lives in ways
we’ve not yet foreseen.

• Diversity & Inclusion is at the core ofbeing in touch so that we are able tocommunicate the purpose and benefits ofour brands in ways that resonate withindividual consumers.

Leadership Focus and Accountability
Bob McDonald, Chief Executive Officer, holds
himself accountable for leading Diversity &Inclusion and monitoring progress in every partof our Company. He expects top leadership toembed Diversity & Inclusion into their businessstrategies, establish clear expectations, anddemonstrate personal accountability.
Top executives conduct in-depth diversity
reviews annually with organization heads
across the business units to assess progressand reinforce leadership accountability forcorrective actions. The top officers in the
Company have diversity results tied to theirstock options awards, and strong diversity
performance influences top ratings. Diversity& Inclusion action plans are developed in eachregion of the world to reflect the greatest
opportunity for the advancement of local
diversity strategies and promote a culture ofrespect for every individual.
The driver of our Diversity & Inclusion focus
areas is Leadership Accountability. At P&G,
everyone is responsible for bringing diversity
and inclusion to life and that responsibility
starts at the very top of our organization to
make P&G a more inclusive place to work andan increasingly diverse organization. This is
critical to our continued success. We can’t fulfill
our Purpose if we fail to inclusively leverageand continually strengthen the diversity of
our organization.

Bob McDonald has established an Inclusion
and Diversity Council. He chairs this team ofsenior level business and organization leaders.
Its sole purpose is to provide insights,alignment, and support to P&G’s Diversity &Inclusion efforts, to measure results against ourgoals, and to drive accountability throughout
the organization.
The P&G leadership team is the most experienced and diverse leadership team in the
Company’s history, leading diverse and inspired
P&G people around the world. The majority ofthese executives have experience leadingbusinesses in both developed and developing
countries. P&G leaders at the Vice President
level and above come from 35 different
countries, with more than half of themoriginating from outside the United States.
Bob McDonald expects P&G to be a global
leader in diversity and inclusion. Peak diversity
performance requires goals and strategies thatdemand it, an inclusive culture that values it, atracking system that measures it, and leadership behaviors that inspire it. He expects
everyone’s engagement and daily support toensure that diversity and inclusion delivers ourintentional outcome, “Everyone Valued,
Everyone Included, Everyone Performing at
Their Peak™” for P&G in every part of ourbusiness and ensures that we achieve ourvision to “Be and be recognized as the Global
Leader in Diversity & Inclusion.”

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Diversity & Inclusion(continued)

Talent Support and Development
P&G strives to be the Employer of Choice bybuilding a diverse and fully engaged organization. We attract the best talent from aroundthe globe, leveraging each individual througheffective assignment and promotion planning
processes, and executing with excellence thecritical systems that affect, as well as support,
retention of each employee.
We focus on establishing long-term relationships with educational institutions that havediverse populations of highly qualified
students. To broaden our candidate baseworldwide, we utilize Taleo, our fully global,
Web-based candidate management system.
We supplement our base recruiting efforts by
utilizing intern programs, participating in
recruiting conferences, and conducting
outreach to high school students. We executespecial programs such as our Careers in
Business Initiative (CIBI) and P&G Marketing,
R&D, IDS and Finance Summer/Winter Camps
to introduce students to P&G’s successcompetencies. Additional teams help withefforts to recruit women around the globe,
and minority, military and disabled candidates,
among others, in the United States.
Our foundation systems for retaining employees include effective first-year on-boarding/join-up programs, providing a good matchwith the first manager, developing coaching/mentoring/advocacy relationships, high-quality
challenging work/career plans, training (virtual,classroom and external), and supportive work/
life policies and practices. Employee support
groups and network teams exist throughout
the organization and contribute to effective
recruiting, join-up and development efforts.

P&G has three global Corporate Affinity
Groups — for women, People with Disabilities,
and Gay/Bisexual/Lesbian — and four U.S.
Affinity Groups — African-American, Asian/Pacific-American, Hispanic, and Native
American.

Diversity Metrics
P&G continues to focus on diversity as a
global strategy and expects its work force tobecome increasingly diverse, enabling us toserve more of the world’s consumers. Global
data on enrollment by gender is shown in thefollowing table:
GLOBAL ENROLLMENT

2011

2010

2009

% FEMALE
Management
All Other Employees

(1)

42.3

41.6

41.2

37.2

38.5

38.8

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

2011

2010

2009

% MINORITIESManagement

P&G Recognition
In 2011, P&G’s solid progress in diversity andinclusion was recognized in many global and
U.S. surveys:
FORTUNE•W
 orld’s Most Admired Companies(#5 overall; #1 in our industry)•G lobal Most Admired Company(2011—# 5 / #1 in Industry)• T op Companies for Leaders (2010—#2)• Most Powerful Women—Melanie Healey(#13), Gina Drosos (#39), Deb Henretta(#20 – International)

National Association of Female
Executives (NAFE)• Top 10 Companies for Executive
Women (2011)
Human Rights Campaign• Rated a “100” on Corporate Equality Index
ABILITY Magazine• 2010 Best Practices Award• Top Companies for Diversity (2011 #25)
• Top Global Diversity Companies (2011 #8)

Women Corporate Directors• 2011 Visionary Award for Leadership inGovernance – Bob McDonald• Top 10 Companies for People with Disabilities(2011 #6)

Society of Hispanic Professional Engineers• 2010 Company of the Year Award• Top 10 Companies for Latinos (2011 #5)• Top 10 Companies for Asian Americans(2011 #9)

22.6

18.7

18.8

19.3

• Top 10 Companies for Recruitment &Retention (2011 #9)

Management

41.4

41.0

40.7

• Top 10 Companies for Executive Women(2011 #5)

All Other Employees(1)

37.8

38.2

38.8

% FEMALE• Best Companies for Multicultural Females(2011 – Top 5)

Disability Matters• 2011 Disability Matters Workforce Award

23.1

All Other Employees• 100 Best Companies (2010 – Top 50)

Diversity Inc.
• Top Company for Cultural Competence (2010)

23.7
(1)

Working Mother• “Working Mother Hall of Fame, 2005”(1) Administrative, Technical, and Plant Technicianswww.pg.com/sustainability

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Global Medical
We touch and improve the lives of ouremployees with focused delivery of our
five Global Medical Priorities.

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

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

1. S ave a Life (Protect Our People)

During the past year, Global Medical deliveredin times of regional crisis, assisting our
employees and local health providers withmedical guidance, supplies, and support in the
Middle East (Egypt’s civil unrest), Asia (Japan’searthquake/tsunami/radiation crisis), and Latin
America (Chile’s earthquake).

2. O bey the Law (Protect Company Reputation)
3. P
 rotect Key Technologies(Protect Brand Integrity)
4. Enhance Speed to Market(Support Emerging Technologies and
New Business Development)
5. Inspire Health and Wellness (Vibrant
Living, Travel Medicine Support, Global
EAP Programs)
All medical standards of performanceand standard operating procedures flow
directly from specific P&G Principles, Values,
compelling business needs, and the Global
Medical Priorities.

P&G Vibrant Living
In 2011, we continued the global rolloutof the P&G Vibrant Living initiative with
the intent to bring all Health & Wellness
programs together to better serve our
employees and their families. Our vision
is to become the Healthiest, Most
Engaged People in the World. P&G Vibrant
Living will focus in three areas:
Culture of Health — through emphasis on
nutrition, fitness, easy access to our healthinformation, and an environment thatencourages healthy choices and personal
management of health risks.
Health Education and Training —through programs like Corporate Athlete
and EAP/WorkLife Solutions.
Employee Engaged Health Care —provides greater understanding of local
health care resources and enables informed
individual health choices.

Highlights of our progress include:• Vibrant Living branded programs
have been rolled out to 126 P&G sites
in 63 countries.
• Over 90 Vibrant Living Health Coaches(nurse specialists) have been trained
across three regions (North America,
Latin America, and Asia).
• The Vibrant Living Site Certification
Program was developed and deployedglobally to ensure that our Culture of
Health goals are met. Two sites haveattained Vibrant Living Certification,and 20 more applications are currently
under review.
• Over 170 P&G Health Services in 50
countries are being transformed toVibrant Living Health Centers.

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GRI Index

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

Worldwide Health, Safety &Environment Organization
Health, Safety & Environment (HS&E) is a global
community of resources responsible for
ensuring that all sites worldwide — including
Innovation Centers, Distribution Centers,
acquisitions and established plants — areoperated safely and legally; that process
hazards are minimized or eliminated; that
health risks are identified, managed, or
eliminated; and that waste from sites isreduced as much as possible. Several thousand
employees spend all or a portion of their timeon HS&E management. This year, 1,688
full-time equivalents were involved in HS&E
activities. This is slightly up from 1,605 FTEs
last year and reflects the complete integrationof recent acquisitions into P&G HS&E systems.
There are three major components to a site’s
HS&E organization: Environmental, Technical
Safety, and Industrial Hygiene & Safety leaders;Fire Protection Systems leaders; and an overall
HS&E leader. The HS&E site organization also
closely partners with the site Health Service, orMedical leader. P&G uses a phased, detailed
Risk Assessment process to evaluate the safetyof processes and initiatives being introduced at
its own manufacturing operations as well as at
contractor manufacturing operations. The Risk
Assessment process is designed to enablehigh-speed innovation.
P&G has verified that the HS&E program at allits manufacturing facilities meets the intent of
the environmental management standard ISO

14001. In 2006, we extended verification to
the Global Health and Safety Management
standard OSHAS 18001. This verification was
conducted by Environmental Resources
Management (ERM), a highly respectedinternational consulting firm in the field ofenvironment, health, safety, and sustainability.

Industrial Health and Safety
The health and safety of P&G employees areparamount in the principles of the Company:• Nothing we do is worth getting hurt.

No target has been set for LWDC. Instead,incidents that potentially could lead to lost
workdays are managed. The following data isbased on criteria established by P&G for use at
all sites including acquisitions, plants, andtechnical centers. This year’s TIR was lower, at
0.38 versus 0.41 incidents per 100 employees,
while the lost workday rate was also lower at
0.21 versus 0.22 cases per 100 employees.
Both are lower than industry averages.
TOTAL INCIDENT RATE
(Injury and illness per 100 employees)• Safety can be managed.
• Every illness and injury could and shouldhave been prevented.
• Safety and health are everyone’s
responsibility.
The Company tracks and reports two metrics
for worker safety: total incident rate (TIR) andtotal lost workday case rate (LWDC). TIR
includes all cases that result in loss of
consciousness, lost workdays, restriction ofwork or motion, medical transfer to anotherjob, or medical treatment beyond first aid.

0.36

09

0.41
0.38

10
11

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

09
10
11

0.15
0.22
0.21

LWDC includes all cases that involve days awayfrom work or days of restricted activity beyond
the day of injury or onset of illness.
The TIR target for sites is to be below 1.5 cases
per year, per 100 employees. To achieve suchrates, programs to address employee safety,
such as safe behaviors, ergonomics, andconfined space entry have been implemented.

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Worldwide Health,
Safety andEnvironment Systems(continued)

HS&E Audit ScoresFire Protection

Audit Programs

P&G HS&E resources conducted a rigorous
calibration exercise across all geographies thisyear to ensure an appropriate calibration andfocus on potential high-risk areas. Thiscalibration exercise helped to ensure we areholding ourselves to the highest standards andresulted in a decrease in the number of sites
with scores >8.0.

P&G operates its fire protection program on
the basic principle that each facility is uniqueand should have a program designed to meetits specific requirements. Working with theInsurance Division, HS&E has developed achecklist-based assessment process that
evaluates the fire protection equipment,
maintenance & inspection, and emergency
response capability of a site versus theappropriate level of fire protection required atthat site. Each plant, innovation center andmajor distribution center is assessed annually.
The target performance is 8 or better on a
10-point scale.

P&G’s HS&E audit programs are designed
to ensure compliance with national, state,
and local regulatory requirements as well as
corporate environmental standards andprocedures. Audit findings are reported
promptly to the business management teams,
who must address and correct all issues ina timely manner.
P&G’s audit programs apply to all plants,
innovation centers, and distribution centers,
worldwide. The fundamental philosophy is touse standards worldwide, implemented bytrained professionals at facilities and audited
each year using a consistent, comprehensive
approach. The metrics used are consistent withthat philosophy.
Audits measure performance against a
mandatory set of standards and standard
operating procedures. The target performanceis 8 or better on a 10-point scale. The
percentage of sites audited this year was 96%.
SITES CONDUCTING ANNUAL AUDITS(Percentage)

09
10
11

87%
96%
96%

SITES WITH HS&E AUDIT SCORES >8.0
(Percentage)

09

86%
92%

10
11

77%

Fire Protection Audits Score
The fire protection assessment program waschanged significantly this past year eventhough we continue to have a historically low
number of fire losses and no regulatory issues.
The new audit process is designed to be muchclearer and calibrated relative to our internalfire protection standards. These processchanges resulted in a more rigorous andglobally calibrated approach to conducting
these assessments. This process change
resulted in a decrease in the number of sites
with scores >8.0.
SITES WITH FIRE PROTECTION
AUDIT SCORES >8.0
(Percentage)

92%
93%

09
10
11

51%

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Worldwide Health,
Safety andEnvironment Systems

Site HS&E Leadership Training
A key indicator of 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 theirown plant. Currently, more than 91% of sites
worldwide have HS&E leaders qualified by
Corporate/GBU staffs, and more than 87%
have qualified fire protection leaders. This
training and qualification program applies to allsites, including Technical Centers andacquisitions.
SITES WITH HS&E QUALIFIED LEADERS(Percentage)

78%

09

88%
91%

10
11

SITES WITH FIRE PROTECTIONQUALIFIED LEADERS

10
11

•

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Worldwide, approximately 33.3 million
people live with HIV/AIDS. It is estimatedthat someone becomes infected every
six seconds.
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 forexisting facilities
HS&E capital costs for 2010 – 2011 wereapproximately $48.4 million, which is up versus
last year’s $47.5 million. HS&E capital costs
include the purchase and construction ofpollution control equipment such as wastewater pretreatment and air emission controls.
HS&E total costs for existing sites, which
includes costs for personnel, operations,and contractor expenses for HS&E activities
in 2010 – 2011, were $135.1 million, which isdown versus last year’s $159.4 million. Efforts
to reduce the amount of waste disposed haveincreased our overall quantity of recycling, andrevenue generated from these recycling
activities was $52.2 million.

AIDS has become the leading cause of deathin sub-Saharan Africa, with more than 22.5
million people infected. In addition to the many
lives lost, there are an estimated 16.6 million
children orphaned by AIDS.

HIV/AIDS Policy
All employees, including those who are
HIV-infected or have AIDS, are treatedconsistent with the Company’s Purpose, Values
and Principles by the Company, their managers, and co-workers. Among other things,
that means that each individual is treated with
dignity and respect, and that we do notdiscriminate against any individual based onany difference not related to performance.
We treat employees with HIV/AIDS the same as
we treat those with other serious illnesses.
Specifically, an employee who is HIV-infectedor has AIDS:With HIV/AIDS impacting sub-Saharan Africa
more than any other area in the world, P&G’s
sub-Saharan organization is leading theCompany’s HIV/AIDS effort. P&G’s effort,
which began in 1998, was revised in 2004
to coordinate with the latest national andinternational developments and standards.
The effort’s objectives are to:• Use employee and family awareness andprevention programs at our African locations
to help prevent the spread of HIV/AIDS.
• Offer medical plans that assist employeeswith HIV/AIDS to get life-prolonging
medication, and in some cases supplement
these plans with additional Company
support.
The workplace portion of the effort consistsof the following elements:•H as the same employment rights andresponsibilities as other employees.

• Establishing baseline measurements, such as
for knowledge, attitude, perception, anddisease prevalence.

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

• Conducting risk analysis and impact
assessment, considering issues such as costs
to P&G and impact on customers, suppliers,and health care facilities.

• Is afforded privacy and confidentiality
protection consistent with the Company’s
handling of confidential, medical, or othersensitive information.

• Implementing prevention strategies, such asawareness training, voluntary counseling,
and testing for HIV/AIDS and sexuallytransmitted disease.

• Is provided management support toremain productive.

(Percentage)

09

New Vision & Goals

HIV/AIDS(continued)

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

• Employees & Stakeholders •

64%
86%
87%

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HIV/AIDS(continued)

PUR and HIV/AIDS• 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 homebased care.

The global response to HIV/AIDS needs toinclude the provision of safe drinking water,
and P&G is helping to build awareness of thisneed as well as providing safe drinking waterto people with HIV/AIDS through the P&G
Children’s Safe Drinking Water Program.

• Evaluating and monitoring the effectivenessof these interventions.

In sub-Saharan Africa, where HIV/AIDS rates
are very high, we are working with a numberof partners to provide safe drinking water tohelp people live positively with HIV/AIDS.
People who have HIV/AIDS are more susceptible to water-borne diseases, including
parasites, viruses, and pathogenic bacteria. The
P&G Children’s Safe Drinking Water programprovides the PUR Purifier of Water product,
which effectively removes all ofthese elements from contaminated water,
making it a critical health tool for many
people with HIV/AIDS.

• Assessing and improving Company benefits.

Specific P&G Activities to Fight HIV/AIDS in South Africa
We continue to provide employees access to a
P&G e-care website. By logging to the website,
employees can access a variety of healthrelated information. The site also has an online
interactive feature called “Ask the Doctor” thatenables employees to send health-related
questions to a medical professional. There arealso condom dispensers in each of the office
restrooms, which are refilled every week.

At the 2010 Clinton Global Initiative, P&G
committed to provide a cumulative of 4 billion
liters of clean water by 2012 and to scale up
the program to provide 2 billion liters of cleanwater every year by 2020 in order to save one
life every hour. Toward our overall goals, wehave provided more than 3.5 billion liters ofclean water, helping to avoid over 150 million
days of diarrheal illness and save an estimated
20,000 lives, mostly children. People living with
HIV/AIDS are a major focus of our work todeliver this increased impact, and we are
currently working at large scale in Democratic
Republic of Congo, Ethiopia, Kenya, Malawi,
Nigeria, Tanzania, and Uganda to help people
living with HIV/ AIDS. We estimate that wehave helped more than 1 million people livingwith HIV/AIDS by providing clean drinking
water in the past year.

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

better result than we could alone. We look to
our people in the area to work with their local
communities and government officials to learn
where we can make the biggest difference.

Authorities: Local — Regional — Global
P&G communicates with local, regional, andglobal authorities directly, both as anindividual company and through industry
associations. Scientists and legal experts in the
P&G External Relations organization review
existing and proposed regulations that are
relevant to the Company and work withauthorities to ensure that policies take theneeds and experience of business into
account. This is done via meetings with theauthorities and comments on their position
papers and industry position papers. Activities
like these can be very important to ensure that
the Company’s needs are understood andconsidered when decisions are being madethat can influence P&G’s business.

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

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

Consumers
At P&G, we are dedicated to meeting theneeds of our consumers by providing products
and services that can help improve theirlives. The concept of “Consumer is Boss” isfundamental throughout the development
and marketing of our products. We set out
to delight consumers by launching only
new products and product improvementsthat genuinely meet their 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 notadequately met today.
Once a product is launched, our commitment
to our consumers does not stop there. For
P&G, every consumer’s experience in choosing,buying, or using one of our products canprovide vital insights to help us further
improve our products and services. So we
encourage consumers to contact our Global
Consumer Relations team. We want to hear
about our consumers’ experiences with our
products — good and bad.
Last year we heard from over eight million
consumers who wanted to ask us something
about our products or our Company. We
proactively offer “traditional” contact
channels — phone, letter, e-mail — toconsumers, but we are also very awarethat consumers’ lives are changing (we areconsumers too!). Life is getting busier, and wewant to be able to access the right informationon our terms, which may be very early in themorning, or in the middle of the night. So wehave invested in technology, which has alreadybeen deployed for some of our major brands,
where consumers can access key information
on a 24/7 basis, i.e., on their terms. Of course,
we continue to offer the well-established
Careline Services where consumers can talkto or communicate with an experienced
advisor, but we also enable consumers tofind vital information on our brands usinge-mail and telephony technology “out ofhours.” This has been a huge success, andhas actually enabled us to interact with evenmore of P&G’s consumers in the last fiscal year,
which provided more insights for our ProductDevelopment and Marketing teams to help
further improve our products and services.
We are also innovating in how we ensure thatthese important insights from our consumers
get to our business teams. Consumers whotake the time to contact a company for advice
or ask for help to resolve a problem provide
valuable insights into our products, which
can really help us develop our business byimproving our brands. So we need to makesure that our consumer’s voice is heard in P&G.
We do this by using a range of different tools
and technologies that provide our businessteams with key learnings from consumer
comments. In Global Consumer Relations, werecognize that the world is changing and weare investing in innovative technology to better
serve our consumers. We are privileged that
consumers care enough about our products tocontact us.

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Social Responsibility

Advertisingand Promoting toConsumers
Appropriately

Principles forDeveloping
Environmental
Sustainability Claims

The Company does not permit its
advertising or promotions for its products
to be false or misleading.

All claims are required to pass througha formal claims approval process. In
addition to this formal approval process,we have developed principles to help
guide the development of environmental
sustainability claims. These principles
have been deployed to relevant functions
and include:

P&G’s Worldwide Business Conduct
Standards for Responsible Sales andMarketing Practice states:
We are expected to compete vigorously andeffectively, but never unlawfully. For thisreason, we are truthful in all of our sales andmarketing. We must make only truthfulstatements about our Company and its
products and services. All marketing claims
must be substantiated and live up to theirpromises.
For additional information, please see
P&G’s Worldwide Business Conduct
Manual at http://www.pg.com/en_US/
downloads/company/governance/Policy_
Worldwide_Business_Conduct_Manual.pdf.

1. A ll claims must comply with all applicableregulatory/legal requirements.
2. All environmental sustainability claims must
pass through formal claim approval systems
and obtain Legal review.
3. C laims must be truthful, data-based,
and defensible.
4. Claims should be specific statements of facts.
5. Claims should not exaggerate attributes
or benefits.
6. While the exact wording of a claim may
be defensible, the evaluation of claims
should also be based on consumer understanding of the claim.

• Employees & Stakeholders •New Vision & Goals•

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7. Claims should reflect life-cycle thinking andenvironmental trade-offs.
8. Any environmental benefit claimed for a
product must be meaningful for consumers,
customers, or external stakeholders.
9. C
 laims should not exploit environmental
requirements needed for regulatory or legal
compliance.
10. E nvironmental benefits may be translated
into other indicators that are more tellingfor consumers, as long as the translation isbased on factual equivalents and does not
exaggerate the benefit the product actuallyprovides.
11. E nvironmental claims must not be worded
in a way that denigrates products notcarrying the claim.
12. Claims based on the overall environmental
quality of a product must be supported by
an appropriate Life Cycle Analysis (“LCA”)
type tool or other technically sound data.

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Sustainability
Guidelines for
Supplier Relations
The foundation of our Sustainability
Guidelines for Supplier Relations is
our Statement of Purpose, Values andPrinciples. We operate within the spirit
and letter of the law and maintain highethical standards wherever we conductbusiness. We will actively seek business
relationships with suppliers who share ourvalues and promote the application ofthese high standards among those withwhom they do business.
Summary of Our Supplier Guidelines:
1. W
 e expect our suppliers to comply with allapplicable laws of their country, includinglaws relating to employment, discrimination,
environment, and health and safety.
Suppliers who knowingly violate laws or
have repeated problems conforming to themwill not receive our business.
2. C ommercial bribery is illegal and subject tocriminal penalties in many countries,
including the United States. Any personal
payment or bribe to individuals employed by
P&G’s customers or suppliers — or receipt ofa bribe or personal payment by P&G
employees — is strictly prohibited. Even inlocations where such activity may not,technically speaking, be illegal, it isabsolutely prohibited by Company policy.

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

 e expect suppliers to provide a safe•W
work environment, to prevent accidents
and injury, and to minimize exposure to
health risks.
•W e seek to do business with suppliers whoshare our concerns for and commitment topreserving the environment. At a minimum,
suppliers must meet all current applicable
environmental rules, regulations, and laws
in their countries.
The management system is owned by the
Global Vice President – Purchasing and has
three components:
Communicate: All purchasing personnel who
interface with suppliers are trained on the
supplier guidelines and our revised assessment
process. We communicate the guidelines toour suppliers once a year and reinforce our
expectations in our contracts. This makes
compliance with the guidelines a condition ofbusiness and therefore makes noncompliancegrounds for disqualification for all new andongoing supply agreements.
Check: During the year, we re-launched our
supplier assessment program. This effort
stemmed from our membership in a tradeassociation, AIM-PROGRESS, where 23
member companies are working together toincrease the efficiency of the supplier auditing
process. Half of the members, including P&G,
are using a common assessment and data
sharing platform hosted by the Supplier Ethical
Data Exchange (Sedex). Our high-risk suppliers
were notified of this change. This approachshould lower costs for our suppliers byallowing them to reapply others’ audits for
P&G and P&G audits for other customers
through a mutual recognition program enabled
by following an industry standardized
methodology.
During the year we identified our preferredthird-party audit firm and they have begun
to conduct assessment at some of ourhigh-risk suppliers. This change allows P&G tostrengthen compliance in a more efficient anddisciplined way through the eyes of professional auditors while refocusing P&G resourceson collaborating with suppliers on appropriate
corrective actions.
Correct noncompliance: When potential
noncompliance issues are identified, they arecommunicated to the supplier as part of theclosing meeting. Corrective actions, including
formal notification and a remediation action
plan, are then implemented. In some cases, we
require immediate action to achieve compliance, or we halt business. These include childlabor or forced labor, and egregious healthand safety violations presenting immediate
danger to human health. If a compliance issue
is not resolved in a timely manner, the business
relationship is terminated.
The Sustainability Guidelines for Suppliers
can be downloaded at: www.pgsupplier.
com/sustainability-guidelines.

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Contents•

Introduction•

P&G Profile

Supplier Diversity
Supplier Diversity is a business strategy for P&G
that we have focused on since the mid-1970’s.
When we invest with diverse suppliers, we not
only strengthen our innovation and go-tomarket capabilities, but we also touch andimprove the lives of the women and men who
work in these companies — and through them,
their families and the communities in which
they live and work. This is an important way
we fulfill P&G’s Purpose.
P&G makes a significant and ongoing investment in supplier diversity, spending more than
$2 billion with minority- and women-owned
suppliers in 2010–2011. This is the fourthconsecutive year we have exceeded $2 billion
in supplier diversity spending. P&G is one ofjust 18 corporations on the Billion Dollar
Roundtable, an exclusive group of companies
that invest a billion dollars a year or morewith minority- and women-owned agencies,
suppliers or external businesses.

•

Products•

Operations•

Social Responsibility• Employees & Stakeholders •New Vision & Goals•

GRI Index

66 of 76

Personal
Information Privacy
Advances in computer technology havemade it possible for detailed information
to be compiled and shared more easily
and cheaply than ever around the globe.
That can be good news for society as awhole and for individual consumers.
At the same time, as personal information
becomes more accessible, each of us —companies, associations, government agencies,
consumers — must take precautions against
misuse of that information. Several countries
already have laws protecting consumers frommisuse of their personal information, and manyothers are following suit.
P&G places high priority on safeguarding
people’s personal information. Even in countries
without privacy legislation, we still adhere to
our privacy policy. We want to have the trust of
consumers and all others who do business withus, including employees, shareholders, retailcustomers, and recruitment candidates.
P&G’s robust privacy program is managed by a
Global Privacy Council. Our first objective is toprotect an individual’s personally identifiable
information as if it were our own. All outsidecompanies handling data on our behalf are
required to abide by our privacy principles.

Externally, P&G has been a strong advocate
of work within the industry to protect theprivacy of consumers. For example, P&G has
been a leader in the effort to make privacy
notices more consumer friendly and has madeour online marketing statement available in
39 languages.
For more information on P&G’s global
privacy principles, please visit:www.pg.com/en_US/sustainability/point_of_
view/privacy.shtml.
P&G adheres to U.S./European Union
Safe Harbor principles and participatesin the Better Business Bureau’s EU Safe Harbor
Program. For more information, visit: www.
bbb.org/us/european-union-dispute-resolution/.
In the United States, P&G is an active
participant in the Better Business
Bureau’s Accredited Business Program. For
more information, visit: www.bbb.org/us/
Business-Accreditation/.
Third-party companies can accessour privacy and security guidelines onwww.pgsupplier.com.

www.pg.com/sustainability

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Products•

Operations•

Social Responsibility• Employees & Stakeholders •New Vision & Goals•

GRI Index

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Principal Industry
and Business
Associations• National Environmental Development
Association• ANDA — Venezuelan Association ofAdvertisers• Pet Food Industry Associations: PFMA — Pet
Food Manufacturers Association• National Governors Association• CONINDUSTRIA — Industrial Confederationof Venezuela• U.S. Council for International Business• Chemical Industry Associations:
CEFIC — European Chemicals Industry
Association• Pharmaceutical Associations: AESP –Association of European Self-Medication
Industry; EFPIA — European PharmaceuticalIndustry Association

Latin America• SOFOFA — Manufacturers Industry
Association

North America• ABIPLA — Brazilian Association of Household
Cleaning Products• AmCham — Chilean American Chamberof Commerce• Cosmetics Industry Associations:
COLIPA — Cosmetics & Fragrances Industry• American Chemistry Council• ASOQUIM — Venezuelan Association of the
Chemical Industry• ANDA — National Advertisers Association
Chile• American Legislative Exchange Council• ABIHPEC — Brazilian Association of Personal
Hygiene, Perfumery and Cosmetics Industry• SNI — Sociedad Nacional de Industrias, Peru

• Association of National Advertisers• CEMPRE — Brazilian Recycling Association• Business Roundtable• CAPA — Argentine Chamber of Cosmetics& Perfume Industry

P&G holds membership in many industry,business, and environmental associations
whose activities are related to theCompany’s. These include:
Europe, Middle East and Africa• Advertising Associations: WFA — World
Federation of Advertisers• Detergent Industry Associations:
AISE — Association Internationale de la
Savonnerie de la Detergence et des Produites
d’Entretien• Employer Associations: Business-Europe• Environmental Associations:
ECETOC — European Center for Ecotox and
Toxicology of Chemicals; EUROPEN — The
European Organization for Packaging andthe Environment• Euro/American Business Associations:
AECA — American European Community
Associations; EU Committee of AmCham

HAPCO — European Industry of Hygiene
Paper Products• American Chemical Society• American Cleaning Institute• Canadian Consumer Specialty Products
Association• Canadian Cosmetic, Toiletry and Fragrance
Association• Canadian Health Products Association• Consumer Specialty Products Association• Consumer Health Products Association• The Council of State Governments• Food Associations: CIAA — European Food
Industry Association• CSR Canada — Corporations Support
Recycling• Grocery/Brand Associations: AIM — European
Brands Association• Food and Consumer Products of Canada• Paper Associations: EDANA — European
Industry of Non-Woven Products;• Grocery Manufacturers of America• Global Environment Management Initiative• National Conference of State Legislatures• Personal Care Products Council• Water Environment Research Foundation• CANIPEC — Mexican Association of the
Cosmetics and Personal Care Industry• CONAR — Chilean Advertising SelfRegulation and Ethics Council

Asia• Australia – ACCORD — Consumer, Cosmetic,
Hygiene & Specialty Products Association• China — AmCham• China — Academy of Environmental Science• Cámara Nacional de la Industria de Aceites,
Grasas, Jabones y Detergentes, Mexico• China — Association of Fragrance, Flavor andCosmetic Industry• CONCAMIN — Confederación de Cámaras
Industriales• China — Daily Use Groceries Association• AMECE — AsociaciÓn Mexicana deEstándares para el Comercio ElectrÓnico• CONAR — Consejo de AutorregulaciÓn y
Ética Publicitaria, Mexico• COMCE — Consejo Mexicano deComercio Exterior• CONMEXICO — Consejo Mexicano de la
Industria de Productos de Consumo• China — Industry Association for Baked
Products & Sugars• China — Environmental Health Safety
Roundtable• China — Association of Surfactant, Soap andDetergent Industries• China — Hygiene Supervision Association• China — National Household Paper Industry
Associationwww.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility• Employees & Stakeholders •New Vision & Goals•

GRI Index

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Principal Industry
and Business
Associations(continued)• China — China Oral Care Industry Association• Korea — Korea Food Industry Association

Worldwide• China — Guangdong Fragrance Flavor
Cosmetic and Laundry Industry Association• Korea — Korea Pharmaceutical Trade
Association• Conference Board• China — Guangdong Quality Inspection
Association• Malaysia — American Malaysian Chamber ofCommerce (AmCham)• International Chamber of Commerce• China — National Bar Code Association• Malaysia — MAFMAG — Federation of
Malaysian Manufacturers• Hong Kong — The Cosmetic and Perfumery
Association of Hong Kong
• India — Confederation of Indian Industry• Malaysia — MICCI — Malaysian International
Chamber of Commerce and Industry• India — Federation of Indian Chambers ofCommerce and Industry• Malaysia — CTFA — The Cosmetic, Toiletry &Fragrance Association of MalaysiaCTFA• India — Feminine & Infant Hygiene
Association• Philippines — Soap & Detergent Associationof the Philippines• India — Indian Soap & Toiletries Makers’
Association• Philippines — Cosmetic, Toiletry & Fragrance
Association of the Philippines• Indonesia — Indonesian Cosmetics
Association• Singapore — The Cosmetic, Toiletry &Fragrance Association of Singapore• Japan — Japan Cosmetic Industry Association• Taiwan — TWCIA — Taiwan Cosmetic
Industry Association• Japan — Japan Hygiene Product Industry
Association• Taiwan — Taiwan Soap & Detergent Industry
Association• Korea — American Chamber of Commerce• Thailand — F.T.I. — Federation of Thai
Industries• Korea — Korea Cosmetics Industry
Association• Society of Environmental Toxicology andChemistry• World Business Council for Sustainable
Development• Taiwan — Taiwan Paper Industry Association• Japan — Japan Soap and Detergent
Association• Korea — Korea Chemical Management
Association• Consumer Goods Forum• Thailand — Thailand Soap & Detergent
Associationwww.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility•

Employees & Stakeholders•

New Vision & Goals•

GRI Index

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Long-term Environmental Sustainability Vision and 2020 Goals
P&G is the largest consumer packaged goods company in theworld today. This very fact, coupled with our Purpose-inspired
Growth Strategy — improving the lives of more consumers, in moreparts of the world, more completely — requires us to continue togrow responsibly.

2 0 2 0 E N V I R O N M E N TA L S U S TA I N A B I L I T Y G O A L S

In September 2010, we announced a long-term environmental
sustainability vision for our Company that establishes future expectations
for our performance.
We won’t reach this vision overnight; in fact, it will take decades to achieve.
So, we have set goals for 2020 to hold ourselves accountable to making
progress toward our vision.

Products

Our Long-Term Environmental Sustainability Vision includes:• Using 100% renewable or recycled materials for all
products and packaging• Powering our plants with 100% renewable energy

Replace Petroleum-Based Materials
with Sustainably Sourced
Renewable Materials

25%*

Cold Water Washing

70% of total washing machine loads

Packaging Reduction

20% (per consumer use)*

Consumer Solid Waste	Pilot studies in both developed and developing
markets to understand how to eliminate
landfilled/dumped consumer solid waste• Having zero consumer or manufacturing waste
go to landfills• Designing products to delight consumers while
maximizing the conservation of resources
For more information on our long-term vision, go to www.pg.com/sustainability.

Operations

Renewable Energy
Powering Our Plants

30%

Manufacturing Waste to Landfill<0.5% (disposed)

Truck Transportation
Reduction

20% (km/unit of volume)**vs. 2010 baseline

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility•

Employees & Stakeholders

Awards &Recognition

Index

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

GRI
INDICATOR•

New Vision & Goals•

GRI Index

DESCRIPTION

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PAGE(S)

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

1.2

Description of key impacts, risks, and opportunities.

4
5 – 66

2. Organizational Profile
2.1

Name of the organization.

8

2.2

Primary brands, products, and/or services.

92.3

Operational structure of the organization.

10 – 15

2.4

Location of organization’s headquarters.

8

2.5

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

2.6

Nature of ownership and legal form.

8

2.7

Markets served.

8

2.8

Scale of the reporting organization.

2.9

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

2.10

Awards received in the reporting period.

8, 13 – 15

8 – 12
11
22, 57, 70

3. Report Parameters
Report Profile
3.1

Reporting period.

2

3.2

Date of most recent previous report (if any).

3.3

Reporting cycle (annual, biennial, etc.).

Annual

3.4

Contact point for questions regarding
the report or its contents.

sustainrep.im@pg.com

FY 09–10

www.pg.com/sustainability

Contents•

GRI
INDICATOR

Introduction•

P&G Profile•

Products•

Operations•

DESCRIPTION

Social Responsibility

PAGE(S)

Report Scope and Boundary
3.5

Process for defining report content.

3.6

Boundary of the report.

18, 37

3.7State any specific limitations on the scope or boundary of the report.

18, 37

3.8

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

18, 37

3.9

Data measurement techniques and the bases of calculations.

18

3.10

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

18, 37

3.11

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

Table identifying the location of the Standard Disclosuresin the report.

70 – 75

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

2

Governance
4.1

Governance structure of the organization.

4.2

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

4

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

16

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

11, 16 – 17

4.4•

GRI Index

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PAGE(S)

4.5

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

16 – 17

4.6

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

16 – 17

4.7

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

16 – 17

4.8

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

3 – 7, 53 – 54

4.9

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

16 – 17

4.10

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

16 – 17

4.11

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

4.12

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

4.13

Memberships in associations.

4. Governance, Commitments and Engagement

4.3

New Vision & Goals

Commitments to External Initiatives

Assurance
3.13•

DESCRIPTIONGRI Content Index
3.12

Employees & Stakeholders

GRI
INDICATOR

5

11

•

16 – 1826
28, 30, 36, 55

67 – 68

Stakeholder Engagement
4.14

List of stakeholder groups engaged by the organization.

63, 67 – 68

4.15

Basis for identification and selection of stakeholders withwhom to engage.

63

4.16

Approaches to stakeholder engagement.

63 – 68

www.pg.com/sustainability

Contents

GRI
INDICATOR

4.17•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility

DESCRIPTION

PAGE(S)

Key topics and concerns that have been raised throughstakeholder engagement.

63 – 68

Employees & Stakeholders

GRI
INDICATOR

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

10

EC2

Financial implications and other risks and opportunities for theorganization’s activities due to climate change. (Core)20, 21, 22,
24, 34, 35, 36

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

55

EC4

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

N/A

EC5

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

EC6

Policy, practices, and proportion of spending on locally-based
suppliers at significant locations of operation. (Core)11, 13EC7Procedures for local hiring and proportion of senior
management hired from the local community at significant
locations of operation. (Core)

56 – 57

55•

GRI Index

DESCRIPTION

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PAGE(S)

EN1

Materials used by weight or volume. (Core)

37

EN2

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

37

EnergyEN3

Direct energy consumption by primary energy source. (Core)

37 – 38

EN4

Indirect energy consumption by primary source. (Core)

37 – 38

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

33 – 38

EN6

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

4 – 5, 7,
20 – 24,
32 – 38

EN7

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

4 – 7, 20 – 24,
32 – 38, 69

Water
EN8

Total water withdrawal by source. (Core)32, 37, 41

EN9Water sources significantly affected by withdrawal of water.
(Additional)

N/A

EN10

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

41

EN11

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

N/A

EN12

Description of significant impacts of activities, products, and services
on biodiversity in protected areas and areas of high biodiversity
value outside protected areas. (Core)25, 28– 30

EN13Habitats protected or restored. (Additional)

EN14

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

Biodiversity

Indirect Economic Impacts

EC9

New Vision & Goals

6. Environmental

Market Presence

EC8•

Materials

5. Economic performance indicators

EC1•

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

43 – 51

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

43 – 51

N/A
25, 28– 30

www.pg.com/sustainability

Contents

GRI
INDICATOR

EN15•

Introduction•

P&G Profile•

Products•

Operations

DESCRIPTION

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

Social Responsibility

PAGE(S)

N/A

Emissions, Effluents and Waste
EN16

Total direct and indirect greenhouse gas emissions by weight. (Core)37, 39EN17

Other relevant indirect greenhouse gas emissions by weight. (Core)37, 39, 42

EN18

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

EN19

Emissions of ozone-depleting substances by weight. (Core)37, 42

EN20

NOx , SOx , and other significant air emissions by type
and weight. (Core)37, 42

EN21

Total water discharge by quality and destination. (Core)37, 41

EN22

Total weight of waste by type and disposal method. (Core)37, 40

EN23

Total number and volume of significant spills. (Core)

EN24

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)

EN25

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

EN26

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

EN27

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

EN28

Monetary value of significant fines and total numberof non-monetary sanctions for noncompliance withenvironmental laws and regulations. (Core)4 – 5, 21, 24,
33 – 36, 69

37, 40•

New Vision & Goals•

GRI Index

DESCRIPTION

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PAGE(S)

EN29

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

24

EN30

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

61

7. Labor practices and decent work
Employment
LA1

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

8

LA2

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

N/A

LA3

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

N/A

Labor / Management Relations
LA4

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

N/A

LA5

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

N/A

N/A

4 – 7, 19 – 30,
69

Employees & Stakeholders

GRI
INDICATOR

42
37, 40, 42•

Occupational Health and Safety
LA6

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

59 – 61

LA7

Rates of injury, occupational diseases, lost day’s, absenteeism andtotal number of work-related fatalities, by region. (Core)59

42

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Contents

GRI
INDICATOR

LA8

LA9

•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility

DESCRIPTION

PAGE(S)

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

61 – 62

Health and safety topics covered in formal agreementswith trade unions. (Additional)
Also see www.pg.com/en_US/downloads/company/governance/
PG_Values_Policies.pdf

58 – 61•

Employees & Stakeholders

GRI
INDICATOR

HR450, 58, 61

LA11Programs for skills management and lifelong learning that support
the continued employability of employees and assist them inmanaging career endings. (Additional)

55, 58, 61

LA12Percentage of employees receiving regular performance and careerdevelopment reviews. (Additional)

55

HR6

DESCRIPTION

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PAGE(S)

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

55

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

65

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

65

Forced and Compulsory Labor
HR7

LA14

GRI Index

Child Labor

Diversity and Equal Opportunity
LA13•

Freedom of Association and Collective Bargaining
HR5

Average hours of training per year per employee-by-employee
category. (Core)

New Vision & Goals

Non-discrimination

Training and Education
LA10•

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

57

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

55

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

65

Security Practices
HR8

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

8. Human Rights

Indigenous Rights

Investment and Procurement Practices

HR9

HR1

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

65

HR2

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

65

HR3

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

N/A

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

N/A

N/A

www.pg.com/sustainability

Contents•

GRI
INDICATOR

Introduction•

P&G Profile•

Products•

Operations•

DESCRIPTION

Social Responsibility

PAGE(S)•

Employees & Stakeholders

GRI
INDICATOR

10. Product responsibility

Community

Consumer Health and Safety
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)42, 63

Corruption
SO2

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

15 – 16

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

15 – 16

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

16 – 17

SO5

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

16 – 17

SO6

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

16 – 17

SO3

SO4

GRI Index

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

26 – 27

PR2

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

N/A

Product and Service Labeling
PR3

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

10

PR4

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

N/A

PR5

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

63

Marketing Communications

Anti-Competitive Behavior

PR6

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

64

PR7

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

N/A

Customer Privacy

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

N/A

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

42

Compliance
SO8

•

PR1

Public Policy

SO7

New Vision & Goals

DESCRIPTION

9. Society

SO1

•

PR8

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

N/A

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

N/A

CompliancePR9

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Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility•

Employees & Stakeholders•

New Vision & Goals•

GRI Index

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