Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility•

Employees & Stakeholders•

2020 Goals Chart•GRI Index

2012

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Sustainability
ReportContents•

Introduction•

P&G Profile•

Products•

Introduction
P&G Sustainability Strategies�������������������������������������3
CEO Statement���������������������������������������������������������4
Our Vision and Goals �����������������������������������������������5
Leadership Statement�����������������������������������������������6
P&G Report Card: 2012 Sustainability Goals�������������7
P&G Profile ���������������������������������������������������������� 8
Products ������������������������������������������������������������ 20
Sustainable Innovation Products�����������������������������21
Operations���������������������������������������������������������� 37
Resource and Waste Summary�������������������������������46
Social Responsibility�������������������������������������������� 51
Employees & Stakeholders���������������������������������� 60
2020 Goals Chart������������������������������������������������ 76
Awards and Recognition ������������������������������������ 77
GRI Index������������������������������������������������������������ 77

Operations•

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

About This Publication
This is the 14th Sustainability Report for P&G’s worldwide
operations. Data in this report covers the period from July 1,
2011, through June 30, 2012. 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 harmonizationin the reporting of relevant and credible corporate economic,
environmental, and social performance information toenhance responsible decision-making. The GRI has notverified the contents of this report, nor does it take aposition on the reliability of information reported herein.
For further information about the GRI, please visit
www.globalreporting.org.
For the latest P&G news, in-depth information
on P&G’s brands, and for shareholder and career
information, please visit www.pg.com.
www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility

At P&G, we are committed to delivering products
and services that make everyday life better for
people around the world. Our opportunity totouch and improve lives comes with a responsibility
to do so in a way that preserves the planet andimproves the communities in which we live
and work. We focus our sustainability efforts on
improvements that matter, to make the mostmeaningful impact we can. We’re continuing to
make progress in our focus areas of Products,
Operations, and Social Responsibility, enabled byour employees and stakeholder partnerships.

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Our Focus Areas

Our Enablers

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

In order to deliver our environmental andsocial programs, we must 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 the environmental
profile of our products.

Employees

Operations:Improve the environmental profile ofour own operations.

Stakeholders

Social Responsibility:
Improve children’s lives through our social
responsibility programs.

www.pg.com/sustainability

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We believe most of the sustainability
challenges the world faces can be solved
with innovation, and that this innovation
can have a positive business impact.

CEO Statement
We’re celebrating P&G’s 175th anniversary this year, a milestonethat very few companies have achieved. From our Company’s
founding by William Procter and James Gamble, we have invested
in the communities where we sell our products, and we haveembraced the responsibility of ethical and sustainable operations.
To grow and thrive for another 175 years requires us to accelerate our sustainable innovation and resource efficiency so that wehave less environmental impact and, at the same time, continue
to invest in our communities to help create the conditions for
future growth.
In 2010, we declared our long-term sustainability vision that inspires
how we innovate our products. It includes powering our plants
with 100 percent renewable energy, using 100 percent renewablematerials or recyclate for all products and packaging, having zerowaste go to landfills, and delighting consumers with products thatmeet their needs while enabling them to conserve resources.
This vision is being brought to life through our innovation andproductivity programs. We believe most of the sustainability
challenges the world faces can be solved with innovation, andthat this innovation can have a positive business impact. We areproud to have exceeded our sales goal of sustainable innovation
products, which you will read more about later on in this report.
We are renewing our commitment to discontinuous innovation —innovation that obsoletes current products and creates new categories and new brands that have environmental improvements.

Tide PODS is a great example. The innovative, three-chamber,pre-measured packet can simply be dropped into the wash — no
measuring, no worrying — and it dissolves in cold water. PODS
save consumers both valuable personal time and money on energy
costs, since there is no need to heat the water used in the laundry
process. This is a sustainable innovation that enables the conservation of resources with no trade-off in product performance. P&G
sales and Tide’s market share have grown as a result.

Saved nearly$1 billion
through sustainable
operations

We’re also finding ways to be more productive and use ourresources and materials more efficiently, delivering cost savings
that fuel our growth. In February, we announced a $10 billion
productivity program — $6 billion of which comes from the cost to
manufacture and ship our products. Our sustainability efforts are
an important way we will deliver these cost savings. For example,
in the past 10 years, we have delivered nearly $1 billion fromsustainability efforts in our operations. This is significant, and we
see even more opportunities to improve.
Finally, we are investing in our communities in ways our brands
can uniquely contribute. Our disaster relief efforts provide ourtrusted brands to families when they have lost everything. Pampers,
which focuses on babies’ happy, healthy development, is working
to end neonatal tetanus. We are using P&G’s proprietary watercleaning technology to bring clean water to millions of people inthe developing world. In December 2011, we celebrated providing
four billion liters of clean drinking water. This has saved over
20,000 lives, and our goal is to be able to save one life every hourby 2020. These programs address everyday health issues to build
stronger, more stable communities. This is a positive thing to dofor our society, and it is a positive thing to do for our Company.
It creates goodwill and brand recognition we can build on in theyears to come.
Everyone at P&G is proud of what we have achieved so far. We
know there is much more to be done, and we look forward todelivering our sustainability vision and continuing to support thecommunities where we live and work for another 175 years.

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

www.pg.com/sustainability

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Our Vision and Goals
Today, P&G is the largest consumer packaged
goods company in the world. Our size presents us
with the responsibility to operate sustainably,and it also offers the opportunity to create
scalable and sustainable innovations that growour business. Our program is inspired by ourlong-term environmental vision.

This vision includes:

Powering ourplants with
100 percent
renewable energy

Using 100 percent
renewable orrecycled materials
in all products
and packaging

Having zeroconsumer andmanufacturing
waste goingto landfills

Designing productsthat delight
consumers while
maximizing theconservation of
resources

In this report, we share progress toward
each of our 2012 and 2020 goals listed below.
2007–2012 Goals

2020 Goals· Develop and market at least $50 billion in cumulative sales of· Replace 25 percent of petroleum-based materials with sustainably sourced“Sustainable Innovation Products,” which are products that havean improved environmental profile.

renewable materials.*

Products· Conduct pilot studies in both developed and developing markets to understandhow to eliminate landfilled/dumped consumer solid waste.

· Have 70 percent of all washing machine loads use cold water.
· Reduce packaging by 20 percent per consumer use.*· Deliver an additional 20 percent reduction (per unit of production) in energy· Increase use of renewable energy in our plants to 30 percent.

consumption, CO2 emissions, disposed waste, and water consumption from
P&G facilities, leading to a total reduction over the decade of at least 50 percent.

· Reduce manufacturing waste to landfill to less than 0.5 percent of input materials.

· Enable 300 million children to Live, Learn and Thrive.

· Save one life every hour by delivering two billion liters of clean water every year.

Operations· Reduce truck transportation by 20 percent per unit of production.

· Prevent 160 million days of disease from unclean water and save 20,000 lives by

Social Responsibility

delivering four billion liters of clean water through our P&G Children’s Safe
Drinking Water program.

*vs. 2010 baseline
www.pg.com/sustainability

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These operations results have led tonearly $1 billion in cost savings,
representing an important contribution
to our bottom line.

Leadership Statement
2012 is an important year for P&G relative to sustainability, as itmarks the completion of our first sustainability goals, which we
set five years ago. We are very proud of what we have achieved
during this time.
With regard to products, we surpassed our goal of $50 billion in
cumulative sales of Sustainable Innovation Products by $2 billion,
for a total of $52 billion. We accomplished this by focusing on
making meaningful sustainability improvements on our biggest
brands, such as Tide, Ariel, Pampers, Pantene, and Gillette. These
improvements were made without asking consumers to accept
trade-offs in either cost or performance.
This approach was critical to our strategy of meeting the needs ofthe vast majority of consumers, who — our research has shown —are not willing to accept trade-offs in order to purchase sustainableproducts. This approach also leveraged our scale and innovation
capabilities and drove top-line sales, which is an importantcomponent of ensuring environmental improvements are deliveredin an economically sustainable way.
We have also made very strong progress over the past five years
in improving the environmental profile of our operations. Our
efforts have delivered absolute reductions in each one of our four
footprints: 68 percent reduction in waste disposed, 14 percent
reduction in water usage, 7 percent reduction in energy usage,
and 5 percent reduction in direct CO2 emissions. We have alsoachieved significant reductions on a production-adjusted basis(i.e., reduction per unit of production) in each of our footprints:
71 percent in waste, 22 percent in water, 16 percent in energy,
and 14 percent in direct CO2 emissions. Over the ten-year periodof 2002–2012, we halved our environmental footprint on a
production-adjusted basis, achieving a 74 percent reduction in
waste, 58 percent in water, 52 percent in energy, and 54 percent
in direct CO2 emissions (Scope 1). All these operations results have
led to nearly $1 billion in cost savings, representing an important
contribution to our bottom line.
Our progress over the past five years in reducing CO2 emissions
would have been greater, but we made deliberate investments
in a number of new cogeneration (“cogen”) systems at our sites,
which allow us to capture and reuse heat from on-site power
generation. This has helped us achieve an 18 percent reduction in
total CO2 emissions since 2007 (i.e., Scope 1 + Scope 2). Although
improving the environmental profile of our plants, these systems
have also resulted in a net increase in the amount of fuel weconsume on-site. This increased on-site fuel consumption was theprimary reason we were only able to reduce Scope 1 emissions
by 14 percent vs. our goal of 20 percent.
We remain committed to driving further reductions and, as shown
later in this report (page 45), we have established new energy andCO2 goals for our facilities.

Our social responsibility efforts continue to grow. We surpassed
our goal of reaching 300 million children in need by 100 million,
for a total of over 400 million children. We have also exceeded
our goal of delivering four billion liters of clean water, due to therapid expansion of partners and countries where P&G purification
packets can be distributed.
As our 2007–2012 goals come to term, we look forward tocontinuing progress toward the goals we set for 2020. These goals
are intended to put us on a path toward achieving our long-term
environmental sustainability vision, which we announced in
September 2010. Progress toward these goals — which are primarily
focused on renewable materials, waste reduction, renewable energy,
and packaging reduction — can be found throughout this report.
We cannot solve these challenges on our own. Addressing
the issues we all face requires collaboration and collective responsibility. At P&G, we are committed to partnering with NGOs,
governments, trade associations, academics, suppliers, and our
retail partners to ensure we share expertise and focus on creating
solutions. We believe that by working together, we can innovate
to solve our sustainability challenges.

Len Sauers
Vice President, Global Sustainability

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

Our Final Results:
2007–2012
Sustainability Goals•

Products•

Operations•

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Employees & Stakeholders•

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Products
GoalThis report card outlines our
final results for the five-year
goals we set in 2007. Our
progress demonstrates how wehave embedded our sustainability
objectives into our businessin order to reach our goals.
Additional details of how wedelivered these goals arefound on the first page of the
Products (p. 21), Operations(p. 38), and Social Responsibility(p. 52) sections of this report.

•

Develop and market at least$50 billion in cumulative salesof “Sustainable Innovation
Products,” which are productsthat have an improved
environmental profile.(1)Progress (in U.S. dollars)

Since July 2007

Cumulative sales of Sustainable Innovation Products$52 billion

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.
(1) Sustainable Innovation Products are included if they have launched in market since July 1, 2007, and have a >10% improvementcompared to a previous or alternative version of the 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 inpackaging or products, E. Substitution of non-renewable energy or materials with renewable sources

Operations
Goal
Deliver an additional 20 percent
reduction (per unit of production)in energy consumption, CO2 emissions, disposed waste, and water
consumption from P&G facilities,
leading to a total reduction overthe decade of at least 50 percent.

Since
July 2007

Since
July 2002

Energy Usage

-16%

-52%

CO2 Emissions

-14%

-54%

Waste Disposal

-71%

-74%

Water Usage

-22%

-58%

Progress (percent reduction per unit of production)

Social Responsibility
Goal

Progress

Since July 2002

Enable 300 million children
to Live, Learn and Thrive.(2)Prevent 160 million days of
disease from unclean water andsave 20,000 lives by delivering
4 billion liters of clean water
through our P&G Children’s Safe
Drinking Water Program.(3)Live, Learn and Thrive
Number of Children Reached

400 million

P&G Children’s Safe Drinking Water PRogram
Liters of Clean Water Delivered

4.22 billion

Days of Disease Prevented>170 million

Lives Saved>22,000(2) Live, Learn and Thrive (LLT) is P&G’s global cause that focuses our social investments on efforts that improve the lives ofchildren in need.
(3) Within Live, Learn and Thrive, our signature program is P&G Children’s Safe Drinking Water. Methodology for calculating
diarrheal days and mortality was developed with Population Services International and Aquaya Institute. Details are provided in
the 2011 Sustainability Report found at www.pg.com/sustainability.

www.pg.com/sustainability

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P&G serves approximately 4.6 billion people
around the world with its brands. The Company
has one of the strongest portfolios of trusted,
quality, leadership brands, including Pampers®,
Tide®, Ariel®, Always®, Whisper®, Pantene®, Mach3®,
Bounty®, Dawn®, Fairy®, Gain®, Charmin®, Downy®,
Lenor®, Iams®, Crest®, Oral-B®, Duracell®, Olay®, Head
& Shoulders®, Wella®, Gillette®, Braun®, Fusion®, Ace®,
Febreze®, Ambi Pur®, SK-II®, and Vicks®.

P&G Profile

P&G’s world headquarters is located in Cincinnati,
Ohio, U.S.A. The P&G community includes approximately 126,000 employees working in about
75 countries worldwide. Our products are sold in
more than 180 countries, primarily through massmerchandisers, grocery stores, membership club
stores, drug stores, department stores, salons andin high-frequency stores. We continue to expand
our presence in other channels, including department stores, perfumeries, pharmacies, salonsand e-commerce.
P&G is a publicly traded company. Its stock is listed
and traded on the New York Stock Exchange
and NYSE Euronext–Paris under the symbol “PG.”

Please visit www.pg.com for the latest news andin-depth information about P&G and its brands.
www.pg.com/sustainability

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Leadership Brands
Brands with strong equities in the minds of consumers.
Brands that retailers want in their stores.
Brands that are platforms for innovation.

50

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

90%

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

25

25 of these 50 brands
are our Billion-Dollar
Brands, each generating
more than $1 billion in
annual sales.

www.pg.com/sustainability

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P&G at a Glance
Financial Highlights (unaudited)2012 Net Sales

Amounts in millions, except per share amounts

2012

2011

2010

2009

2008

Net Sales$83,680$81,104$77,567$75,295$77,714

Operating Income

13,292

15,495

15,732

15,18815,743Net Earnings attributable to Procter & Gamble

10,756

11,797

12,736

13,436

12,075Net Earnings Margin from Continuing Operations

11.1%

14.4%

14.0%

14.1%

14.4%

$  3.12$  3.85$  3.47$  3.35$  3.36

Diluted Net Earnings per Common Share

3.66

3.93

4.11

4.26

3.64

Dividends per Common Share

2.14

1.97

1.80

1.64

1.45

Diluted Net Earnings per Common Share from Continuing Operations (1)By Business Segment
19%

24%
10%

32%

BeautyGrooming
Health Care
Fabric Care and Home Care
Baby Care and Family Care

15%(1) Diluted net earnings per share are calculated on net earnings attributable to Procter & Gamble.

By Geographic Region
18%
Reportable Segment

Beauty% of
Net Sales*

24%% of Net
Earnings*

22%

Categories

Billion Dollar Brands

Antiperspirant and Deodorant, Cosmetics, Hair Care,
Hair Color, Personal Cleansing, Prestige Products, Salon
Professional, Skin Care

Head & Shoulders, Olay,
Pantene, SK-II, Wella

39%

10%
14%

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

19%

Grooming

10%16%

Blades and Razors, Electronic Hair Removal Devices,
Hair Care Appliances, Pre and Post Shave Products

Braun, Fusion, Gillette,
Mach3

Health Care

15%

17%

Feminine Care, Gastrointestinal, Incontinence, Rapid
Diagnostics, Respiratory, Toothbrush, Toothpaste, Other
Oral Care, Other Personal Health Care, Vitamins/
Minerals/Supplements

Always, Crest, Oral-B,
Vicks

Fabric Care and Home Care

32%

26%

Bleach and Laundry Additives, Air Care, Batteries, Dish
Care, Fabric Enhancers, Laundry Detergents, Pet Care,
Professional, Surface Care

Ace, Ariel, Dawn, Downy,
Duracell, Febreze, Gain,Iams, Tide

Baby Care and Family Care

19%

19%

Baby Wipes, Diapers and Pants, Paper Towels, Tissues,
Toilet Paper

Bounty, Charmin, Pampers

By Geographic Region
Developed
Developing

38%

62%

* Percent of net sales and net earnings from continuing operations for the year ended June 30, 2012 (excluding results held in Corporate).

For more financial details, please see
P&G’s 2012 Annual Report available at
http://annualreport.pg.com/annualreport2012/.
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.
www.pg.com/sustainability

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Products•

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Social Responsibility

Major Acquisitions

Global Purchases

Acquisitions used $134 million of cash in2012, primarily for the acquisition of New
Chapter, a vitamins supplements business.
In 2011, acquisitions used $474 million of cash,
primarily for the acquisition of Ambi Pur,an air freshener business.

Continued price increases in materials andservices around the globe resulted in Company
external spend of approximately $54 billion (compared to approximately $46 billion last year).

Proceeds from
Asset Sales
Proceeds from asset sales contributed $2.9 billion
to cash in 2012, mainly due to the sale of oursnacks business. In 2011, proceeds from asset
sales contributed $225 million to cash, mainly
due to the sales of our Infasil brand in Western
Europe and Zest brand in North America.

We continue to engage our external business
partners (suppliers, agencies, and trading
partners) to help accelerate total supply chain
sustainability improvements. We improved theeffectiveness of our External Business Partner(EBP) Sustainability Scorecard by adding ananalysis tool — enabling improved data analysis
capability. We also made completing theassessment easier and more user-friendly.
In 2011, we noted that:• Seventeen (17) of our scored partners earned
the highest score possible and received publicrecognition from P&G.
• We are able to turn innovative ideas from the
EBP Sustainability Assessment into tangible
benefits. Acting on ideas submitted in the2010 assessment, we reduced supply network
costs by over $5 million.
• Our new analysis capability is enabling us to
identify key trends that will drive improvement
in a more targeted and effective manner.

•

Employees & Stakeholders•

2020 Goals Chart

Economic
Development
Innovation is a fundamental driver of P&G’s
growth. We invest about $2 billion a year in
Research & Development. This level of investment
is multiplied 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 + DevelopSM
organization manage thousands of active
connections with other companies andinstitutions. These include a wide variety of deal
structures, including licensing, sale, technology
swap, joint ventures, and more. P&G’s goal is tobe the partner of choice in working with others
to improve the lives of the world’s consumers.
For more information, please visit
www.pgconnectdevelop.com.

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Shareholders
As of June 30, 2012, there were approximately
2,367,000 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 (Mon – Fri,
9am – 4pm Eastern): 1-800-742-6253;
1-513-983-3034 (outside U.S. and Canada)• Financial information request line (24 hours):
1-800-764-7483

2 billion$

invested in
Research & Development

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

Our Global Purchases Organization continues toplay a critical role in advancing progress against
our 2020 Sustainability Goals. This includes
efforts to develop and commercialize newrenewable materials, procure renewable energy,
and ensure sustainable sourcing of pulp, palmoil, and paper packaging.

www.pg.com/sustainability

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P&G Profile

Organizational
Structure
Our organizational structure is comprisedof two Global Business Units (GBUs),
Global Operations, Global Business Services(GBS), and Corporate Functions (CF).

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

Global Business Units
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 productinnovations and upgrades, and build our brands
through effective commercial innovations andmarketing plans.

MarketDevelopment
Organization

Global Operations
Global Operations is comprised of our Market
Development Organization (MDO), which is
responsible for developing go-to-market plans at
the local level. The MDO includes dedicated retailcustomer, trade channel, and country-specificteams. It is organized along five geographic units:• North America• Western Europe• Central & Eastern Europe/Middle East/
Africa (CEEMEA)

Corporate Functions
Corporate Functions provides Company-levelstrategy and portfolio analysis, corporate
accounting, treasury, external relations,
governance, human resources, and legal as wellas 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 aggregateof CEEMEA, Latin America, AAIK, and Greater
China. Developed markets are comprised ofNorth America, Western Europe, and Japan.

www.pg.com/sustainability

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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, ourmanufacturing facilities must provide the best
possible value for the Company. We conduct
regular reviews to ensure that our facilities arehighly competitive, and this process includes
benchmarking versus third-party manufacturers.
When it makes sense for the business and it is
the most competitive solution, we may decide
to use contract manufacturers. For example,
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 can determine production needs prior to investing in
new capacity at a P&G facility.

To ensure that our
products remain affordable,
our manufacturing
facilities must provide
the best possible value
for the Company.

•

Products•

Operations•

Social Responsibility

Sometimes we use contract manufacturers
on a longer-term basis for reasons of costeffectiveness. In these instances, we are usually
manufacturing in the region and 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 suppliedby contract manufacturers varies according
to the needs of the business and the ability of
P&G facilities to compete and win production
based on providing the best value. Currently,
our plants do this extremely well and we relyon third-party manufacturers for only 10 to
15 percent of our total manufacturing volume.

•

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P&G Plants Locations
As of June 30, 2011
COUNTRY

CITY

PLANT NAMEREPORTING SEGMENT

Argentina

Pilar

Pilar

Fabric & Home Care

Argentina

Villa Mercedes

Villa Mercedes

Baby & Family Care

Belgium

AarschotAarschot

Personal Power

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

Personal Power

China

Guangzhou

Huangpu

BeautyChina

Minhang

Minhang

Grooming

China

Shanghai

Shanghai

Grooming

China

Taicang City

Taicang

BeautyChina

Tianjin

Tianjin

BeautyChina

Tianjin

XiqingBeautyColombia

MedellínMedellín

Fabric & Home Care

Czech Republic

Rakovnik

RakonaFabric & Home Care

Egypt

Cairo

Cairo

Fabric & Home CareFranceAmiensAmiensFabric & Home CareFrance

Blois

Blois

BeautyFrancePoissyPoissyBeautyFranceSarreguemines

Sarreguemines

BeautyGermany

BerlinBerlinGrooming

Germany

CologneCologneBeautywww.pg.com/sustainability

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Products•

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COUNTRY

CITY

PLANT NAMEREPORTING SEGMENT

COUNTRY

CITY

PLANT NAMEREPORTING SEGMENT

Germany

Crailsheim

Crailsheim

Health Care

MexicoTepejiTepejiBaby & Family Care

Germany

Euskirchen

Euskirchen

Baby & Family Care

MexicoMexico City

VallejoFabric & Home Care

Germany

Gross-Gerau

Gross-Gerau

Health Care

MoroccoCasablanca

Casablanca

Fabric & Home Care

Germany

Hünfeld

Huenfeld

BeautyMoroccoMohammedia

Mohammedia

Fabric & Home Care

Germany

Kronberg

Kronberg

Grooming

Netherlands

Coevorden

Coevorden

Fabric & Home Care

Germany

Marktheidenfeld

Marktheidenfeld

Health Care

Nigeria

IbadanIbadanFabric & Home Care

Germany

Rothenkirchen

Rothenkirchen

BeautyPakistan

KarachiHub

BeautyGermany

Walldürn

Wallduern

Grooming

Pakistan

KarachiPort Qasim

Fabric & Home Care

Germany

Worms

Worms

Fabric & Home Care

Peru

Lima

Materiales

Fabric & Home Care

GuatemalaEscuintla

Escuintla

Fabric & Home Care

Philippines

CabuyaoCabuyaoFabric & Home Care

Hungary

CsÖmÖrBudapest

Health Care

PolandAleksandrow Lodzki

Aleksandrow

BeautyIndia

District Solan

Baddi

Fabric & Home Care

PolandLodz

Grooming

India

Baddi

Baddi B&R

Grooming

Lodz–LMC(Jozefow Street)India

BhiwadiBhiwadiGrooming

PolandLodz

Grooming

India

Ponda

Goa

Health CareLodz–PLMC(Wodna Street)India

BhopalMandideep

Fabric & Home Care

PolandWarsaw

Targowek

Baby & Family Care

Ireland

NenaghNenaghBeautyPortugalGuifões

Porto

Fabric & Home Care

Puerto Rico

Cayey

Cayey

BeautyRomaniaTimişoaraTimişoara

Fabric & Home Care

RomaniaUrlaţiUrlaţi

BeautyRussia Federation

Dzerzhinsk

CapellaBeautyRussia Federation

Novomoskovsk

Novomoskovsk

Fabric & Home Care

Russia Federation

St. Petersburg

St. Petersburg

Grooming

Saudi Arabia

DammamDammamFabric & Home Care

Saudi Arabia

JeddahJeddahBaby & Family Care

Singapore

Singapore

Pioneer Perfume

Fabric & Home Care

South Africa

Johannesburg

Johannesburg

Baby & Family Care

South Korea

Ch’onanCh’onanHealth Care

Spain

JijonaJijonaBaby & Family Care

Spain

Mataró

Mataró

Fabric & Home Care

Spain

Mequinenza

Mequinenza

Baby & Family Care

Spain

Montornès del VallèsMontornès

Health Care

Spain

Santa Perpetua De
MogodaSantiga Ambi-Pur

Fabric & Home Care

Ireland

Newbridge

Newbridge

Health Care

Italy

Campochiaro

Campochiaro

Fabric & Home Care

Italy

Gattatico

Gattatico

Fabric & Home Care

Italy

PescaraPescara

Health Care

Italy

Rome

Pomezia

Fabric & Home CareJapan

AkashiAkashiBaby & Family Care

Japan

Yasu

Shiga

BeautyJapan

TakasakiTakasaki

Fabric & Home Care

Malaysia

KuantanKuantanFabric & Home Care

MexicoNaucalpan

Alce Blanco

Health Care

MexicoApizacoApizacoBaby & Family Care

MexicoApaseo El Grande

Mariscala

BeautyMexicoIrapuato

Milenio

Grooming

MexicoNaucalpan

Naucalli

Grooming

MexicoNaucalpan

Naucalpan

Health Care

MexicoMexico City

Talisman

Beautywww.pg.com/sustainability

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Products•

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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

Fabric & Home Care

UkraineBoryspilBoryspil

Health Care

United States

Lima

Lima

Fabric & Home Care

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

Russellville

Fabric & Home Care

Sacramento

Sacramento

Fabric & Home Care

United Kingdom

Whitley Bay

Seaton Delaval

BeautyUnited States

United States

AlbanyAlbanyBaby & Family Care

United States

St. Louis

St. Louis

Fabric & Home Care

Barquisimeto

Barquisimeto

Fabric & Home Care

United States

Pineville

Alexandria

Fabric & Home Care

Venezuela

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

AuroraAuroraFabric & Home 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

Fabric & Home Care

United States

Green Bay

Green Bay

Baby & Family Care

United States

Greensboro

Greensboro

Health Care

United States

Henderson

Henderson

Fabric & Home Care

United States

Cockeysville

Hunt Valley

BeautyUnited States

Iowa City

Iowa City

BeautyUnited States

Iowa City

Iowa City (Oral Care)

Health Care

United States

JacksonJacksonFabric & Home Care

United States

Kansas City

Kansas City F&HC

Fabric & Home Care

United States

LaGrange

LaGrange

Fabric & Home Care

P&G Plant,
Crailsheim, Germany

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

GovernanceEverything we do is done with ourcommitment 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 governanceprinciples, policies, and practices that support management and the Board of Directors
accountability. These are in the best interest of
the Company and our shareholders, and they
are consistent with the Company’s Purpose,
Values and Principles.
Governance starts with the Board of Directors,
which has general oversight responsibility for
the Company’s affairs pursuant to Ohio’s General Corporation Law, the Company’s Amended
Articles of Incorporation and Code of Regulations, and the Board of Directors’ By-laws.
In exercising its fiduciary duties, the Board of
Directors represents and acts on behalf of theCompany’s shareholders.
Although the Board of Directors does not have
responsibility for the day-to-day management of
the Company, it stays informed about theCompany’s business and provides guidance toCompany management through periodic
meetings, site visits and other interactions. The
Board is deeply involved in the Company’s
strategic planning process, leadership development and succession planning. The Board also
takes an active approach to risk management•

Products•

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Social Responsibility

by overseeing the Company’s strategic plans,
the associated risks and the steps that senior
management is taking to manage and mitigate
those risks.
Additionally, the Board has adopted guidelines
for determining the independence of its
members. As of June 30, 2012, ten of oureleven directors qualified as being independent
from the Company.
The Company’s Worldwide Business Conduct
Manual is its code of conduct, which is approvedby the Board. This conduct manual applies
to all directors, officers and employees and isdesigned to help ensure compliance with allapplicable 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 proxy statement.
Additional detail on the role and structureof the Board of Directors, our Articles
of Incorporation, the Code of Regulations,
Corporate Governance Guidelines, Independence
Guidelines, charters for all Board committees, theWorldwide Business Conduct Manual and ourRelated Person Transaction Policy are available atour website at www.pg.com/en_US/company/
global_structure_operations/governance/
governance_policies.shtml.

•

Employees & Stakeholders•

2020 Goals Chart

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
made our 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
get at what drives our Company’s success,the place to look is at our people. Our people
are deeply committed to our Purpose, Values
and Principles. It is this commitment to doing
what’s right that unites us.
This commitment to doing what’s right isembodied in our financial reporting. High-quality
financial reporting is characterized by accuracy,
objectivity, and transparency. Management is
responsible for maintaining an effective system
of internal controls over financial 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:•

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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
is designed to provide reasonable assurance
that transactions are executed as authorized
and appropriately recorded, that assets are
safeguarded, and that accounting records are
sufficiently reliable to permit the preparation 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 the world,
including unannounced audits, our Global
Internal Audit organization provides training andcontinuously improves internal control processes.
Appropriate actions are taken by management
to correct any identified control deficiencies.

Communicating expectations to employees —Every employee — from senior management on
down — receives mandatory training on the
Company’s Worldwide Business Conduct Manual.
Every employee is held personally accountable forcompliance with the standards contained in the
manual and is provided several methods forreporting any concerns about violations of theWorldwide Business Conduct Manual.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

Executing financial stewardship —We maintain specific programs and activities toensure that employees understand their fiduciary
responsibilities to shareholders. This ongoing
effort encompasses financial discipline in 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 andstrategic choices. Our Global Leadership Council
is actively involved — from understanding strategies to reviewing key initiatives, financial performance, and control assessments. The intent
is to ensure that we remain objective, identify
potential issues, continuously challenge eachother, and ensure that recognition and rewards
are appropriately aligned with results.
Engaging our Disclosure Committee —We maintain disclosure controls and procedures
designed to ensure that information required tobe disclosed is recorded, processed, summarized, and reported accurately and in a timely
fashion. Our Disclosure Committee is a group ofsenior-level executives responsible for evaluating
disclosure implications of significant businessactivities and events. The Committee reports
its findings to the CEO and CFO, providing aneffective process to evaluate our external disclosure obligations.
Encouraging strong and effective corporate
governance from our Board of Directors —We have an active, capable, and diligent Board
that meets the required standards for independence, and we welcome the Board’s oversight.
Our Audit Committee comprises independent
financial directors with significant knowledge•

Products•

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Social Responsibility

and experience. We review significant accounting policies, financial reporting and internal
control matters with them 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• Pay for performance• Pay competitively
These overall principles have served the Company well and enabled us to deliver strong
shareholder value over time. The Committee
and the Board of Directors are charged with theconsistent and fair application of these principles. Over time, we believe this has helped todevelop and retain talented employees who arecommitted to the Company’s success.
Additionally, we expect executives to uphold thefundamental 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 development ofeach individual, developing a diverse organization, and continually improving the environmental
quality of the Company’s products and operations. In upholding these principles, executives
not only contribute to their own success but also
help ensure the prosperity of P&G’s business,
employees, shareholders, and the communities inwhich the Company operates.

•

Employees & Stakeholders•

2020 Goals Chart

Political Involvement
P&G’s political involvement is an important
way to bring P&G’s Purpose to life throughpublic policy.
Guided by our Purpose, Values and Principles,P&G participates in the political process to help
shape public policy and legislation that helps us
touch more lives, in more parts of the world,
more completely. This engagement ensures thatthe interests of our employees, consumers, andshareholders are fairly represented at all levelsof government around the world. We are committed to being transparent about our politicalinvolvement globally.
P&G’s public policy and legislative priorities
are reviewed regularly with senior businessleaders and annually with the Governance andPublic Responsibility Committee of the Boardof Directors.

Lobbying Activity
P&G’s Global Government Relations & Public Policy team (P&G GGRPP) represents theCompany’s point of view in Washington, D.C.,
in U.S. state capitals and in key country capitals
around the world. Working with the businesses,
P&G GGRPP focuses on legislative and public
policy issues that impact the Company’s bottom
line and long-term business interests. Where
permitted by law, P&G GGRPP engages andeducates policy makers and key stakeholders on
issues that impact our business; facilitates theexchange of information between key decisionmakers 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.

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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. For the 2011 calendar year,
P&G reported U.S. lobbying expenditures of$4.04 million in the lobbying disclosure reports
filed with the Clerk of the U.S. House of Representatives and the Secretary of the U.S. Senate,
and a total of $362,362 in lobbying expenditures in U.S. states. In fiscal year 2010–2011,
P&G reported lobbying activity in the range of€400,000 in the European Union under voluntary guidelines issued by the EU Commission.
In FY 2010–2011, P&G paid roughly $8.3 million
in dues to U.S. trade and industry associations
with annual dues of $25,000 or more, of which$1.5 million, roughly 18 percent, was identified
by 50 associations as funds spent on lobbying
and political activities.
You can download a listing of P&G’s
U.S. associations and amount of dues
attributable to political activities via:
www.pg.com/en_US/company/global_
structure_operations/governance/governance_
political.shtml.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

U.S. Corporate Political Activity
P&G engages in the political process by providing financial support to selected state ballot
initiatives and issue advocacy campaigns thathave a direct impact on our ability to touch andimprove consumers’ lives. P&G’s involvement inthese campaigns is overseen by P&G’s Public Policy Team, a multifunctional team comprised ofrepresentatives from Global Government Relations & Public Policy, Legal, Human Resources,
Corporate Communications, and other functions
related to the specific issue under consideration.
The team makes recommendations to theChief Legal Officer for approval, and for further
review and approval by the Chairman and CEO
as appropriate. As with all other aspects of ourpolitical involvement, our participation in such
efforts is guided by our Purpose, Values andPrinciples and by our business strategies,
and is fully reported in accordance withgoverning laws.
P&G’s policy is to not use corporate funds tosupport “Super PACs,” “527” organizations or
candidates in states where it is legally permissible to do so. Further, P&G has no plans to use
corporate funds to support other independent
political expenditures to influence federal
elections, nor do we plan to make contributions
to trade associations for that purpose. Beginningin 2012, we will notify our key associations
on an annual basis that our annual dues cannot
be used for electioneering or independent
political expenditures.
In 2011, P&G made $60,000 in contributions to ballot initiatives and other issue
advocacy campaigns that had a direct impact on
the business or our employees. A listing of these
initiatives can be found via: www.pg.com/
en_US/company/global_structure_operations/
governance/governance_political.shtml.

•

Products•

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Social Responsibility

The P&G Good Government Fund
(P&G GGF)
The P&G GGF is P&G’s political action committee. As with all other aspects of P&G’s business,
the P&G GGF is guided by our Purpose, Values
and Principles (PVPs). The P&G GGF 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 the quality of lifein the communities in which P&G employees live
and work.
The P&G GGF supports candidates at all levelsof government. Support of candidates isgenerally based on any or all of the following
criteria: support of P&G business issues (federal
voting records can be found via www.pg.com/
en_US/company/global_structure_operations/
governance/governance_political.shtml);
sustained constituent relationships with
P&G facilities or employees; and positions inleadership or on Committees of particularimportance to the Company. We also consider
whether a candidate’s public positions andstatements are congruent with our Purpose,
Values and Principles.

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While this can be hard to quantify, we rely on adiverse group of Company managers, government relations personnel, and legal counsel,
which make up the P&G GGF Board, to evaluate
candidates and make recommendations thatwill best support our purpose of touching andimproving lives.
All P&G GGF activity is available on theFederal Elections Commission and stateelections websites, and a full listing of 2011
P&G GGF contributions can be found via:
www.pg.com/en_US/company/global_
structure_operations/governance/governance_
political.shtml.

Consistent with our Company’s Values andPrinciples, the P&G GGF shows respect for all
individuals including our employees, consumers,
business partners, and shareholders. We also
value differences of opinion. Therefore, we
realize that there will be diverse, divergent, andoften strongly held views on candidates the P&G
GGF should support, and what issues should
determine that support. Further, we realize that
individual candidates and elected officials may
be supportive on some issues and opposed onothers. That is why we use a data-driven
approach that looks holistically at the implications a donation may have on the business.
www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

Policies andManagement Systems for
Reporting Performance
Policies
While P&G competes hard to achieve leadershipand business success, the Company is concerned
not only with results but also with how thoseresults are achieved. We will never condone or
tolerate efforts or activities to achieve results
through illegal or unethical dealings, anywherein the world.

•

Products•

Operations•

Social Responsibility•

Employees & Stakeholders•

2020 Goals Chart

Performance

Process for Data Collection

P&G measures operational performance in orderto drive continuous improvement. A companywide system of measuring performance has
been developed. This approach enables theCompany to report data on a wide range of
operational categories. Our actions are not justprofit-driven but also progress-driven, to ensure
a better quality of life for everybody, now and forgenerations to come. Our extensive consumer
research related to our brands also helps us identify ways we can best address sustainability.

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
the work can use the tools, regardless of theirlocation. This simplicity enables the Company
to collect data and update systems annuallyat a relatively low cost. Each business unit is
responsible for the accuracy and consistency ofits data.

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

•

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All data is reported on a global basis. In orderto achieve consistency and to ensure a common
understanding throughout the organization,
employees are trained in how to report anddocument data. Data is presented in metricunits and published in English, with local
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.

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

• Technically sound methods are used byfacilities to estimate data and validate year-toyear results.
• Personnel are trained on the work process,as appropriate.

www.pg.com/sustainability

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P&G Profile

Products•

Products•

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At P&G, we combine a deep understanding of
consumer habits and preferences with a sciencebased approach to deliver environmental
improvements in our products. We know thata majority of consumers are unwilling to accept
trade-offs in price or performance to be moresustainable. We combine this insight with a second
factor called life-cycle thinking — an approachthat examines the environmental impacts of our
products from raw materials through manufacturing,consumer use, and disposal. This analysis helps
us identify steps in the cycle where a sustainableimprovement can have the most significant impact.

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2012 Goals Results
In 2007, we set a goal to develop $50 billion in Sustainable Innovation
Products (SIPs), which are products that have a significantly reduced(>10%) environmental footprint compared to a previous or alternative
version of the product, yet still deliver great product performance.
We are proud to report that we have developed and marketed over
$52 billion in cumulative sales of SIPs. We have focused on ourbiggest brands, which deliver significant environmental improvements
due to their size and global reach — brands like Pampers, Tide, andAriel. Most importantly, the focus of Sustainable Innovation Products
is to achieve all this without any trade-offs for the consumer.
The products featured here are a few of the Sustainable Innovation
Products that P&G has launched over the past five years.

Streamlining Whitestrips
Since their introduction in 2001, Crest Whitestrips have become the best-selling tooth-whitening
product in the U.S. Their upper and lower strips initially came in separate foil pouches. But in 2007,
we combined them into a single pouch, reducing the amount of material used by 190 tons per year.
This change also made the assembly line more efficient and increased consumer satisfaction.

Innovating to Use Less
Over the past two decades, Pampers has consistently focused on developing materials and designs
that use fewer resources while delivering a high-performing product. In 2009, P&G developed a new
innovation called Airfelt-free, which allowed all fluff pulp to be removed from the core of the Cruisers/
ActiveFit diaper. In 2010, changes to the packaging of this product led to more efficient distribution,
allowing us to take hundreds of trucks off the road.

Putting Compaction to WorkIn 2007, P&G introduced compacted liquid versions of our North America laundry brands — Tide,
Gain, Cheer, ERA, and Dreft. This innovation has been the largest contributor to the Company’s $50
billion commitment to SIPs. Due to improvements in the manufacturing of these compact detergents,
sustainability benefits per unit of production include a 20 percent reduction in CO2 emissions,
15 percent less solid waste production, 20 percent reduction in energy consumption, and 15 percent
reduction in water consumption.

52
billion$www.pg.com/sustainability

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Renewable Materials
OUR VISION 100 Percent Renewable or Recycled Materials in All Products and Packaging
2020 GOAL PROGRESS

When we established our Renewable Materials goal, we knew thatdeveloping renewable materials would require significant research
to ensure that our solutions were technically, environmentally, andeconomically viable. Since announcing our goal, we have conducted adetailed analysis of our petroleum-derived raw materials and identified
the material classes that best deliver our goal. For most of thesematerials, we’ve established a clear development pipeline, and we are
now moving toward pilot scale production of several key materials.
We have already incorporated plant-based plastic in some shampoo
bottles, but we anticipate the bulk of our new renewable material
replacements will be commercialized between 2015 and 2020.

2020 GOAL
Replace 25% of petroleumbased materials with sustainably
sourced renewable materials

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Renewable Materials (cont.)
Expanding the Reach of Pantene’s Bio Bottle

Partnering for Renewable Plastics

The Pantene brand has continued to increase its use of renewable materials by further
expanding its Nature Fusion bio-resin bottle — constructed of up to 45 percent plant-basedmaterials, excluding the cap. Having first launched the bio-resin bottle in Western Europe and theUnited States in 2011, Pantene recently launched it in Russia, Turkey, and Poland. Nature Fusion has
grown to be the third-largest Pantene collection among these countries. Pantene plans to expand
its bottle with bio-resin to the Middle East, North Africa, and Pakistan in late 2012.

P&G is a proud member of the Plant PET Technology Collaborative (PTC). Established in April
2012, the Collaborative is a strategic working group focused on the research and development ofplastic polymers made entirely from plant-sourced materials. The five-member Collaborative consistingof The Coca-Cola Company, Ford Motor Company, H.J. Heinz Company, NIKE, Inc., and P&G was
created with the intent of increasing sustainable production of plant-based polyethylene terephthalate (PET). This lightweight and durable plastic is used by all PTC companies in a variety of products
and packaging — representing a significant opportunity to reduce environmental impacts by developing PET that is derived from renewable materials.

Bottle made of
up to

%
45
plant-basedmaterials

www.pg.com/sustainability

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Waste
OUR VISION Zero Consumer Waste Going to Landfill
2020 GOAL PROGRESS

We continue to evaluate waste reduction pilot opportunities in bothdeveloped and developing regions. On the following page, we highlight
one pilot program already under way, and we plan to continue to explore
additional pilot opportunities between now and 2020. Importantly, we
anticipate that many of these pilots will be multi-stakeholder efforts, with
P&G as a key contributor. This is consistent with our belief that successful,scalable solutions require the collaboration of multiple stakeholders.

2020 GOAL
Conduct pilot studies in bothdeveloped and developing
markets to understand how toeliminate landfilled/dumped
consumer solid waste

www.pg.com/sustainability

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Waste (cont.)
From Waste to WorthP&G created the Waste to Worth (W2W) team, which was tasked with designing a solution towaste infrastructure in the developing world. The team conducted a comprehensive study in thePhilippines, with the cooperation of government stakeholders, to understand the tonnage and composition of the waste stream, including the percent that is biodegradable, recyclable and residual. Allof this data led to the design of an integrated, profitable, and replicable waste management businessmodel that extracts value from the waste stream — materials that would otherwise be thrown away.
We are partnering with the Asian Development Bank with the goal of piloting this business model in
Antipolo, Philippines, and we have just offered the project to a company that will own and operate
the facility under the business model created. Anticipated start of operations begins in 2013 with thecreation of the Material Recovery Facility.

“We are grateful that P&G has chosen the Philippines to pilot
its Waste to Worth project. Its noble objectives coincidewith the Department of Environment and Natural Resources’(DENR) serious and relentless pursuit of our mandate on solid
waste management. We are committed to extending all thenecessary assistance to those helping us implement the solid
waste management systems that will reduce the volume
of waste that goes to landfill and promote reusing andrecycling of solid waste for valuable purposes. We hope thatthe successful implementation of this project will enable
the Philippines to become a premier green country in Asia.”

Ramon J.P. Paje,
Antipolo, Philippines

DENR Secretary,
Philippines

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Cold-Water Washing
OUR VISION Designing Products That Conserve Resources
2020 GOAL PROGRESS

We continue to make excellent progress in developing cold-water
laundry detergents that meet consumers’ expectations for performanceand value, and we have technologies in development that will extend
our performance in even colder wash temperatures. We’re continuing
our consumer education efforts around cold water and are seeing
positive trends, estimating that up to 40 percent of global machineloads are being washed in cold water today. While this is encouraging,
we know that in order to reach our target of 70 percent, we will need
to better scale and coordinate our efforts across multiple stakeholders.
This will be a key focus area during the coming year.

2020 GOAL
Have 70% of all washingmachine loads use cold waterwww.pg.com/sustainability

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Cold-Water Washing (cont.)
Achieving Efficiency Together

Designing for All Temperatures

Based on the insight that 90 percent of the energy used in a traditional washer goes toheating the water, Tide teamed up with Maytag to promote the launch of the new line of Bravos XL
Top Loading High Efficiency Washers, which feature a new cold wash cycle. When used with Tide
Coldwater HE, the system delivers a better clean than the normal warm cycle with the leading
competitor HE detergent. The system works by using a concentrated solution of surfactants and othercleaning agents found in Tide Coldwater HE during the cold wash cycle, which includes an “Active
Soaking Phase.” The combination of the Maytag cold wash cycle and Tide Coldwater HE not only
gives an amazing clean in cold water, but the cold wash cycle can also save consumers $2,000 inlifetime energy costs and uses 78 percent less energy when compared to a pre-2004 traditional
top-load washer, using a normal wash cycle, based on an 11-year average appliance life. This is agreat win for both consumers and the environment.

Tide PODS launched in North America in February 2012 as a breakthrough single-unit doseof laundry detergent. We wanted to ensure that the product worked effectively in cold water, as
nearly 40 percent of consumers wash in cold to save energy and money and to preserve their clothes.
We needed to overcome the challenge of chemistry working slower in colder temperatures, so we
optimized our highly concentrated formula for great performance in cold water, even when water
was nearly freezing. We also partnered with a leading film supplier to jointly develop a new
best-in-class film that was designed for strength and fast “dissolve-ability,” even in cold water.

Taking a Load Off the Energy Grid
Our U.S. Future Friendly program marked Earth Day 2012 with “Take a Load Off”— a campaign
designed to show consumers how using a product like Tide Coldwater can help take a load off theenergy grid, their wallets, and the environment. In just four weeks, the campaign generated significant
traditional and social media coverage, translating into strong consumer engagement and over
35,000 commitments to “go cold.”

High-performance
washing, even incold water

78% less energy used per household anda better clean than the leading competitor
HE detergent in warm water.

www.pg.com/sustainability

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Packaging Reductions
OUR VISION Zero Consumer Waste Going to Landfill
2020 GOAL PROGRESS

Our packaging reduction efforts have continued to deliver cost savings
from avoided material usage while still ensuring that our packaging
protects the product and meets consumers’ needs. While there arepractical limits to how far packaging can be reduced, innovations like
Tide PODS and our continued focus on design optimization make us
confident that we will achieve our 2020 goal.
Over the last year, we’ve focused on developing packaging reductionplans for key product categories and have improved our global measurement and tracking systems. We’re committed to maintaining our focus
on executing these product category packaging reduction plans andevaluating new technologies and materials that can move us closer toachieving our goal.

2020 GOAL
Reduce packaging by 20%
per consumer use

www.pg.com/sustainability

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Packaging Reductions (cont.)
Delighting Consumers and Helping the Planet

Our Blades and Razors category switched its high-volume North Americaclub packaging from plastic thermoform clamshells to a paperboard
primary carton — a reduction of 164,000 kg of packing material per year.
This new carton made the product more than 50 percent more efficient
to ship and resulted in over $1 million in annual cost savings. Consumers likeit better because it’s easier to open, and our retail partners like it because
it’s more visually appealing on the shelf.

External partnerships are a key part of our efforts to reduce material usage and increase
recycled content in our products.

“I lead P&G’s partnership efforts with the Association of
Postconsumer Plastic Recyclers (APR). APR has helped P&G
test new package designs prior to market entry to ensure they
are compatible with existing recycling infrastructure. Morerecently, P&G helped support an APR pilot project focused on
recovering grocery store plastic packaging which identified
more than 350 million pounds of plastic material that can beused by plastic recycling facilities across the country.”

Stephen Sikra,
Global Packaging
Development

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New 2020 Product Goals
Sustainably Sourced Renewable Materials

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.
We have already committed that by 2015 we will confirm that all palm
oil purchases originate from responsible and sustainable sources. We arealso establishing two new goals related to our use of wood fiber:• By 2015, 100 percent of the virgin wood fiber used in our tissue/towel
and absorbent hygiene products will be third-party certified; 40 percentof the virgin wood fiber used in our tissue/towel products will be Forest
Stewardship Council (FSC) certified.
• By 2020, 100 percent of our paper packaging will contain either
recycled or third-party certified virgin content.
Collectively, these three goals help demonstrate our commitment toworking toward zero net deforestation by 2020. For additional information on our efforts in these areas, please see page 34 of this report.
For additional information on the Consumer Goods Forum Pledge, please
go to www.theconsumergoodsforum.com.

Using Forest Resources Responsibly
Over the last five years, we’ve deepened our partnership with the World Wildlife Fund (WWF),the WWF-led Global Forest & Trade Network (GFTN), and the Forest Stewardship Council®
(FSC) in order to ensure we support critical programs that help us, and others, meet thechallenges of responsibly using forest resources.
One example of this is a project P&G is helping to finance through WWF Brazil to enable small
landowners in Brazil achieve FSC Certification of their wood supply. The complexity and cost ofachieving FSC certification for these landowners is a barrier to our primary suppliers’ ability to pursue
certification, but we are collaborating with WWF Brazil and FSC to help develop systems that willallow the landowners to ultimately achieve FSC certification. In addition, the project will also restore
fragmented Atlantic Forest present on the properties of these small landowners.
“P&G’s support of this project is fostering FSC certification among small landowners andincreasing the scale of WWF-Brazil’s efforts to restore Atlantic Forest fragments in theseproperties. These small landowners will benefit not only from ensuring a market for their
FSC certified eucalyptus, but also from other ecosystem services, such as water recharge
and carbon storage.”

Maria Cecilia Wey de Brito, WWF Brazil’s Chief Executive Officer

100%

third-party certified
pulp by 2015

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P&G Profile

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

•

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Environmental
Quality Policy
We will provide products and services of superior quality and value that improve the lives of
the world’s consumers. As part of this process,P&G continually strives to improve the environmental quality of its products, packaging, andoperations around the world. To carry out its
Environmental Quality Policy, P&G:
• Ensures that our products, packaging, andoperations are safe for our employees,
consumers, and the environment.
• Reduces or prevents the environmental
impact of our products and packaging intheir design, manufacture, distribution, use,and disposal whenever possible. We take aleading role in developing innovative, practical solutions to environmental issues related
to our products, packaging, and processes.
We support the sustainable use of resources
and actively encourage reuse, recycling, andcomposting. We share experiences and expertise and offer assistance to others who may
contribute to progress in achieving environmental goals.

•

Employees & Stakeholders•

2020 Goals Chart• 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.
• 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, and strive to be
responsive to concerns.

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• Ensures that every employee understands andis responsible and accountable for incorporating environmental quality considerations
in daily 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.

P&G continually strives toimprove the environmental
quality of its products,
packaging, and operations
around the world.

• 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
cost-effective, scientifically based solutions
and standards.

www.pg.com/sustainability

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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 of ingredients to improve our everyday lives, withcleaner homes and 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.

•

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Our commitment to safety is reflected in the
more than 700 in-house experts devoted globally to ensuring the environmental and humansafety of all our ingredients and products
before they go to market, as well as ensuringthat they comply with laws and regulations ineach 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.
•W e 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, including uses from multiple
sources, and how much is released to theenvironment based on our understandingof how consumers use products in their
daily routines.
• Only products that result in uses that are wellwithin safe levels make it through our evaluation process.

+700

in-house experts
devoted globally toensure safety• 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 ingredientis used in a consumer product. This has been
coupled with calls for the far-reaching use of the“precautionary principle,” whereby substances•

Employees & Stakeholders•

2020 Goals Chartthat 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, potentiallylimiting the use of innovative new ingredientsthat are more effective, utilize fewer natural
resources and are safer. Furthermore, experience has shown that even chemicals that could
be considered “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 made after
application of the robust science-based approachthat 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 formulation of
product ingredients and mixtures with acceptable safety profiles.

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A primary role of PS&RA is advancing the science
used to evaluate the human and environmental
safety of our products. This includes developing
new methods from the latest advancements inscience and technology. We are helped in thisprocess by an External Advisory Board of
distinguished academic scientists.
We conduct studies in human and environmental
toxicology with an in-depth understanding of
how people actually use our products and disposeof them across the globe. This knowledge allows
us to develop robust human and environmental
safety evaluations for every product worldwide
before they go to market, and also guides in thedevelopment of new technologies.
PS&RA experts participate in scientific, professional, and industry association activities related
to safety as well as key national and international initiatives (e.g., United Nations, Organization for Economic Cooperation and Development) directed toward supporting the soundmanagement of chemicals around the world.
We also share our safety research informationand establish principles for promoting the safeand responsible use of chemicals through ourmore than 1,000 publications in leading 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.pgbeautyscience.com/safety.php.

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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 $300 million in developing alternative
methods to replace animal research. Today, we
complete more than 99 percent of all safety
evaluations without testing on animals. The
remaining tiny percentage comes from studies
required by law or the rare cases where there
are no alternatives 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:•

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• We actively share our discoveries so that others can benefit from our progress; our work
has appeared in more than 1,000 scientificpublications.
• Our 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.
• We collaborate with universities, scientists fromother companies, and governments to develop
and promote acceptance of alternative test
methods and change regulations that stillrequire 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.pgbeautyscience.com/
animal-testing-alternatives.php.

• We are a leader in alternatives to animal
testing, helping to develop more than
50 alternative methods, which we use today.

We are passionate about
continuing our progressin alternatives to research
involving animals, sothat animal testing canbe eliminated.

www.pg.com/sustainability

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Sustainable Forestry
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. To act on this commitment, P&G
has developed goals for wood pulp, palm oil,and paper packaging:• By 2015, 100 percent of pulp used in tissue/
towel and absorbent hygiene products will bethird-party certified and 40 percent of pulp intissue/towel will be FSC certified.
• By 2015, 100 percent of palm oil purchases
will be confirmed to originate from responsible and sustainable sources.
• By 2020, 100 percent of paper packaging willcontain either recycled or third-party certified
virgin content.
The following sections provide additional detailon the efforts.

Wood Pulp
P&G purchases wood pulp for tissue andabsorbent hygiene products. Though we do not
own or manage forests, we have a responsibility through our procurement practices to ensuresustainability of the world’s forest resources. As
such, we are committed to understanding thesources of our pulp fiber, transparency in sourcing, ensuring that sustainable forest management
practices are used, avoiding unwanted sources ofwood, and working with stakeholders on stepwise increases in preferred certification schemes.
Independent third-party verification systems are•

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used to ensure sustainable forest management
and wood traceability, while we work with global
multi-stakeholder organizations to develop tools
and scientific methods to protect values andservices that forests provide such as biodiversity,
watershed protection, and climate moderation.
For transparency, P&G tracks and reports annually the amount of wood pulp it purchases andrelevant information on certification status.

Core Principles for Sustainable
Forest Management
P&G purchases wood pulp from suppliers that:• Ensure the safety of forestry and manufacturing
operations for employees and the environment.
• 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.
• Do 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).
• Do not obtain the wood from geneticallymodified tree sources.

•

Employees & Stakeholders•

2020 Goals Chart• Reflect 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.
• Do not source wood from conflict timber(timber that was traded in a way that drives
violent armed conflict or threatens national orregional stability).
We ensure compliance with this policy throughsite visits, comprehensive surveys and research,required documentation, and independent
third-party certification of sustainable forest
management practices. P&G requires pulp suppliers to independently certify their operations
for sustainable forest management. P&G also
requires suppliers to provide auditable assurance
that wood from sources not directly owned andmanaged by them is legally sourced and thatharvest is conducted via sustainable practices.

Forest Certification
P&G requires pulp suppliers to certify theirforest operations, or fiber procurement activities,
for sustainable forest management. By 2015,
100 percent of the virgin wood fiber in our tissue/towel and absorbent hygiene products willbe third-party certified.

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• Canada's National Standard for Sustainable
Forest Management (CSA-SFM)
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 have set a target of 40 percent FSC
certified virgin fiber for our tissue-towel products
by 2015. We will also utilize FSC-controlledwood as part of a stepwise approach toprogressively increase the amount of pulp from
FSC-certified sources. We also require that all
pulp come from sources that have undergone
an FSC Controlled Wood Risk Assessment. For
more information on FSC Controlled Wood
Assessments and their role in sustainable
forestry, visit www.fsc.org.

Pulp Sources
In fiscal year 2011–2012, P&G bought ~1.6
million air dried metric tons of pulp for use in
our tissue/towel, diaper, and feminine hygiene
products. The pulp was sourced from thefollowing regions:
Country

Volume (%)

Brazil31%

Canada32%

United States

36%

For these goals, we recognize the following
third-party certification systems:• Forest Stewardship Council (FSC)• Sustainable Forestry Initiative (SFI)• Programme for the Endorsement of Forest
Certification (PEFC)• Brazilian National Forestry Certification
Scheme (CERFLOR)

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Supporting Forest
Stewardship Council andCertification (FSC)
The Forest Stewardship Council (FSC) is anindependent, nonprofit, nongovernmentalorganization that was established to promote
the responsible use of the world’s forests. Ourpolicy explicitly states that we have a preference
for fiber from forest certified under FSC’s
certification system. P&G has been a memberof FSC since 2009 and actively participates in
the FSC standard setting process.
The path to full FSC certification can requiresignificant resource and time commitments fromour suppliers. One of the intermediate steps alongthat path is for suppliers to conduct an “FSC
controlled wood risk assessment.” Controlled
Wood certification allows our suppliers todemonstrate that their sources of wood meetbasic requirements for legality and avoid
unwanted sources described in our policy. Since
becoming members of FSC, 100% of the fiber forour tissue and towel products has been assessedas FSC controlled wood.
FSC is currently conducting a U.S. National
Controlled Wood Risk Assessment. P&G isproviding monetary support for this effort,
and when complete, the Assessment will
provide a chamber-balanced and data-driven
foundation of our claims associated with
Controlled Wood.
“Procter & Gamble’s support of theForest Stewardship Council’s US National
Controlled Wood Risk Assessment demonstrates their commitment to the missionof the FSC. Through this support for FSC,
along with a strong procurement policy
and specific goals for FSC certified fiber,
Procter & Gamble is making significant
strides to ensure the health of theworld’s forests for future generations.”•

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Efficient Use of Resources
Through Innovation
P&G believes that we should invest our resources
where we can make the greatest sustainability
improvements and has made a number ofcommitments:• Focus on technology innovations that allow
us to use fiber efficiently, allowing consumers
to accomplish tasks with less.
• Evaluate the use of non-forest-derived
sources of fiber, recognizing that thesealternatives must also meet principles ofenvironmental sustainability.
• Use recycled fiber when it has no negative
impact on product performance, manufacturing efficiency, energy usage, and waste
generation.
• Continuously explore and implement energy
and water conservation opportunities in ourpapermaking operations. We will also makea meaningful contribution to the Company’s
goals for renewable energy usage.

•

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2020 Goals Chart

Palm OilP&G is committed to the sustainablesourcing of palm oil. By 2015, we will
confirm that all palm oil purchases
have originated from responsible andsustainable sources. We will seek
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 theiron-the-ground operations to ensure that theirpractices will meet or exceed our sustainability
expectations, including their selection, purchase,and responsible use of land for the plantingof palm plantations. We are members of theRoundtable for Sustainable Palm Oil (RSPO) andrecognize their criteria and certification as evidence of sustainable palm oil sourcing. We willcontinue to partner with both known supplierswith whom we have long-standing relationships
and trust, as well as with emerging suppliers
who embrace and support our corporate sustainability principles and expectations.

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

Industry Influence
We will continue to support industry efforts toeliminate irresponsible and/or illegal deforestation of land for use in the planting andharvesting of palm plantations, as well as efforts
to help ensure the appropriate selection anddesignation of land for such uses.
To learn more about RSPO, please go to:www.rspo.org.

Results
Nine percent of our total 2011 annual consumption of palm oil and palm kernel oil was certified
palm oil on a mass-balance basis. Our sites at
Mechelen, Belgium (Pringles Production prior todivestiture), and Kuantan, Malaysia, achieved
RSPO supply chain certification in 2011 and weare on track to meet our 2015 commitment.

– Corey Brinkema, President,
Forest Stewardship Council U.S.

To learn more about FSC,
please go to www.fsc.org.
www.pg.com/sustainability

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P&G Profile

Paper Packaging
P&G continually strives to optimize the designof our packaging to use the minimum amountand type of material that will ensure adequate
protection, delivery, and safe use of our products. Our paper-based packaging is derived
from wood fiber and, as a result, we have a
responsibility through our procurement practices
to ensure the wood fiber in our packaging has
been responsibly sourced.
Therefore, for our paper-based packaging,
we will:• Identify source reduction opportunities todecrease material usage.
• Use recycled paper when it offers the best
option to meet performance requirements
and competitive market conditions.
• Avoid packaging derived from unwanted
sources of wood and work collaboratively
with suppliers of virgin paper to progressively
increase the percentage from certified
sources. We give preference to FSC-certified
materials and post-consumer recycled content
when they are available and meet productperformance requirements and competitivemarket conditions.

•

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This year, we established a new goal of having
100 percent of paper packaging be either
recycled or third-party certified virgin content by
2020. The third-party certifications recognized
for this goal include Forest Stewardship Council(FSC), Sustainable Forestry Initiative (SFI),
Programme for the Endorsement of Forest
Certification (PEFC), Brazilian National Forestry
Certification Scheme (CERFLOR) and Canada's
National Standard for Sustainable Forest
Management (CSA-SFM). Over the course ofthis year, we will be working with suppliers tocollect baseline data and begin to define plansto close any gaps. Given the complexity of the
packaging supply chain, we do not anticipate thisbeing an easy journey, but we will be reporting
our progress in future sustainability reports.

This year, we establisheda new goal of having
100% of paper packaging
be either recycled or
third-party certified virgin
content by 2020.

• Expect our suppliers to be in compliance withall applicable laws.

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Our operations sustainability improvements take aholistic view of the supply chain, including our
suppliers, our own manufacturing processes, andfinished product logistics. Our conservation efforts
within our manufacturing facilities are targeted on
three specific strategies, consistent with how weapproach our overall operational efficiency: getting
our equipment back to optimal condition, reapplying
best-in-class processes across our business units,
and implementing breakthrough technologies.

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2012 Goals Results
We are pleased to have made significant absolute reductions in our
Energy, Waste, Water, and CO2 footprints by delivering 7 percent,
68 percent, 14 percent, and 5 percent reductions, respectively, since2007. We also delivered production-adjusted improvements for all four
footprints. We achieved our goal of a 50 percent reduction (per unit ofproduction) for Energy, CO2, Waste, and Water since 2002. We alsoachieved our goal of a 20 percent reduction (per unit of production) for
Water and Waste since 2007, but we fell short of our 20 percent
reduction goal for CO2 and Energy. We remain committed to driving
future reductions and provide additional details on the following pages.

-5%

-14%
-54%

-22%
-58%

-68%

-71%

-74%
Production Adjusted
Since 2002

CO2

-14%

Water

-7%

Waste

-52%

-16%

EnergyEnergyOver the past five years we have reduced energy usage by 7 percent on an absolutebasis, and we achieved our ten-year goal of at least a 50 percent reduction per unitof production. Since 2007, we reduced energy use by 16 percent on a productionadjusted basis, but we did not reach our five-year goal of a 20 percent reduction.

Waste
We have delivered very strong results in waste reduction over the past five years,
reducing our waste by 68 percent on an absolute basis and 71 percent on a productionadjusted basis — more than tripling our goal of 20 percent. Particularly impressive results
came from two of our Mexican plants which increased their recycling to 99 percent and95 percent. The Apizaco plant identified three separate outlets to recycle/reuse theirreject paper fibers while the Vallejo plant installed new equipment that allows wastewater to be donated for irrigating parks and green spaces.

Water
We have delivered strong results in reducing water consumption over the past five
years, reducing water consumption by 14 percent on an absolute basis and 22 percent
on a production-adjusted basis, exceeding our goal of a 20 percent reduction.

CO2
Production Adjusted
Since 2007

Absolute Since 2007

Since 2007, we have reduced our CO2 emissions by 5 percent on an absolute basis andby 14 percent on a production-adjusted basis. We did not reach our goal of a 20 percent reduction (production-adjusted), primarily due to deliberate investments we madein cogeneration technology. These investments lowered our combined emissions fromScope 1 and Scope 2 (from purchased electricity) by 18 percent and delivered significant savings to the business, but did not enable us to reach our Scope 1 emissions goal.

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Renewable Energy
OUR VISION 100 Percent Renewable Energy Powering Our Plants
2020 GOAL PROGRESS

Today, roughly 7 percent of our energy comes from renewable sources.
We have a renewable energy team dedicated to implementing a plan
to profitably power our plants with 30 percent renewable energy by
2020. This team is building strong partnerships with leading companies
and university experts and is in the process of prioritizing technologies
and projects that are both economically and environmentally sustainable.
We anticipate having a diverse mix of renewable energy sources, bothon-site and off-site, across all aspects of our operations. Overall, we’reconfident that we have the correct strategies in place to achieve our2020 goal.

2020 GOAL
Increase use ofrenewable energy in ourplants to 30%

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Renewable Energy (cont.)
Supporting Local, Renewable Energy Sources
Our biomass boiler in Albany, Georgia, produces steam to power our plant by using renewable
resources. The boiler uses locally purchased wood, supporting local jobs and decreasing the net
CO2 production that would have resulted from burning fossil fuels. Wood is delivered to the boiler,
where combustion takes place on vibrating grates. A Wet Electrostatic Precipitator then scrubs
particulate emissions from the boiler and its leftover ash is beneficially reused to enhance farmlands.

Innovating Solutions with Experts
In July of 2011, we invited sustainability experts from outside P&G to help us develop
renewable energy solutions for three of our most energy-consuming plants in the U.S., Mexico,and Malaysia. The partners brought innovative ideas that helped us see the issues in new ways, while
P&G’s own experts brought a wealth of experience that would help us turn those ideas into concreteplans. Following the ideation session, we have continued to foster the relationships we formed withthese experts, and we have entered into formal working relationships with several individuals. They are
helping us understand how to evaluate and prioritize projects and how to develop investment andaction plans while also helping us conduct scenario-planning sessions to evaluate our project portfolio.

We invited sustainability experts from outside
P&G to help us develop renewable energy solutions
for three of our most energy-consuming plants.
Biomass Boiler
Albany, Georgia

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Manufacturing Waste
OUR VISION Zero Manufacturing Waste Going to Landfill
2020 GOAL PROGRESS

We continue to make excellent progress towards our manufacturing
waste reduction goals. Over the past year, more than 99.2 percent of allmaterials entering our plants were beneficially used in our products andthrough recycling, reuse, and conversion of waste to energy. This result isonly 0.3 percent away from our 2020 goal. Additionally, over 10 percent
of our sites have achieved zero manufacturing waste to landfill. These
results have been delivered primarily by a strong partnership between
our Global Asset Recovery & Purchases team (GARP), our manufacturing
plants, our distribution centers, and our recycling vendors, who
all continue to find new, innovative and cost-effective
solutions for our manufacturing waste.

2020 GOAL
Reduce manufacturing waste
to landfill to less than
0.5% of input materials

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Waste (cont.)
Making Zero Manufacturing Waste a Reality
In an effort to motivate employees to reduce waste, the team at our plant in Cape Girardeau,
Missouri, created an internal rallying cry: “The Power of Zero.” The program focused on deliveringzero defects and zero losses with the goal of “starving landfills.” Using innovative solutions, they
recaptured 100 percent of all manufacturing materials, recovering enough paper each year to cover
the earth ten times. Employees recycled aerosol cans, batteries and light bulbs and even used liquid
waste as an alternative fuel. By looking at waste as Company loss and finding opportunities to makesustainable changes, Cape Girardeau now sends zero manufacturing waste to landfills.

P&G’s Crailsheim plant in Germany is another example of our commitment to zero manufacturing
waste to landfill across the Company.

“We needed to change our culture to reach zero manufac­turing
waste to landfill, so we created an interactive tool to educate
employees about the proper disposal methods for every typeof waste. Then we created a center that collects specified
materials at designated times, which enabled 45 different
materials to be recycled. Today, we ship 13,000 tons of wastefrom the plant to be recycled, reused, or converted to energy,
and we send zero manufacturing waste to landfills!”

Michael Hagemeyer
Crailsheim Plant Waste
Business Leader

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Transportation
2020 GOAL PROGRESS

We have continued to optimize our distribution networks, which hasbrought significant efficiency gains and cost savings. We have plans inplace for each region that will help us achieve our truck transportation
goal by 2020. The plans include optimizing transportation modes androutes as well as operational excellence.

2020 GOAL
Reduce truck transportation by
20% per unit of productionwww.pg.com/sustainability

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Transportation (cont.)
Improving Lead Times, Inventory, and Environmental Impact
We reinvented P&G’s distribution center in Colón, Panama, collapsing smaller productcategories into common shipments and combining inventories of two or more countries.
This approach not only achieved 40 percent lower lead times and lowered inventory by 11 percent,but it also resulted in 580 fewer containers in transit. Removing these containers decreased thecenter’s shipping by 5 million kilometers and reduced CO2 emissions by 5,906 metric tons. The program
was such a success that the distribution center is continuing its efforts to increase efficiency andsustainability for 2013 and beyond.

We design our supply chains to eliminate inefficiencies, improve customer satisfaction, better
utilize assets, and also be environmentally responsible.

“In our CEEMEA region [Central and Eastern Europe, Middle East
and Africa], we wanted to reduce our CO2 emissions fromtransportation, so we put our focus on improving equipment
fill rates, reducing empty miles, and extending usage ofintermodal. We also realized that because so much of our
supply chain is owned or operated by other companies, we
couldn’t do it alone. So we teamed up with our carriers,
suppliers, and customers to combine shipment contents atevery leg of the product supply and delivery journey. Thanks
to all of those efforts, we eliminated excessive truck trips
and reduced CO2 emissions by 3,500 metric tons.”

Ania Polczynska,
Central and Eastern
Europe Transportationwww.pg.com/sustainability

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New 2020 Operations Goals
REDUCING OUR FOOTPRINT

We continue to focus on sustainability in our operations by announcing
new 2020 goals to help achieve our long-term vision of powering
our plants with 100 percent renewable energy by delivering footprint
reductions of 20 percent per unit of production in Energy Usage andTotal CO2 Emissions (Scope 1 and Scope 2).
Our footprint sub-team that is focused on energy and CO2 will identify a glidepath to reach ourgoals. We will continue to focus on our conservation efforts which are fully embedded in our overall
operations business strategy, with an approach called “Back to Base.” This approach focuses on
restoring the operation of our equipment to its optimal state, identifying energy losses and fixing
them to their most efficient condition. Secondly, we benchmark and reapply energy best practices
by identifying which sites have the best results and reapplying these practices across sites with similar
technology. The last strategy requires the collaboration of multifunctional teams to deliver the“breakthrough” technology of the future.

20%

Reduction in
CO2 and energy

With respect to our CO2 goal, we are expanding the scope of emissions on which we measure ourselves.
While our 2007–2012 CO2 goal was only for Scope 1 emissions, we are now measuring ourselves
on a combined Scope 1 and Scope 2 emissions goal. We believe this gives a fuller picture of the total
emissions from our operations.
While we don’t yet have all the answers necessary to achieve our goals, we are committed tomaking disciplined, step-by-step progress through the conservation and breakthrough work that isalready under way.

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Resource and Waste Summary
The table below reports environmental statistics for Manufacturing Operations in the Global Business Units, Technical Centers andDistribution Centers. It reflects divestiture of Coffee and Pharmaceutical Businesses.
Totals (absolute units x 1,000)
2012

2011

2012 Global Business Unit Detail (1) (absolute units x 1,000)
2010

BeautyGrooming

HealthCare

Fabric Careand Home Care

Baby Careand Family Care

Technical
Centers

Distribution
Centers

Production (metric tons)
Product Shipped

25,61826,021 (6)24,213

2,154

660

1,076

16,682

5,046

0

0

646

593

784

137

51

49

250

159

0

0

Generated Waste

985

1,025

1,048

135

29

97

353

325

20

26

Percent Recycled / Reused Waste

79%

69%

63%

73%

95%

88%

69%

89%

31%

79%

Raw Materials from Recycled Sources
Waste ( metric tons )Disposed Waste (metric tons)
Waste Disposed

212

315

363

36

1

12

110

34

14

5

Solid Waste — Non-Hazardous

157

250

287

31

1

10

77

23

11

4

Solid Waste — Hazardous

20

23

28(2)

1

0

1

16

0

0

2

Effluents (excluding water)

22

27

34

3

0

0

12

4

3

0

Air Emissions (3)

13

15

15

1

0

1

4

7

0

0

2,509

2,895

19,12340,743

2,378

554

Other
Energy Consumption (gigajoules )72,30673,99871,842

4,104(metric tons) (4)

2,799

2,906

2,795

122

64

44

607

1,888

58

16

Total Greenhouse Gas Emissions (metric tons) (7)

5,827

6,123

6,200

434

228

273

1,562

3,008

266

55

Water Consumption (cubic meters )78,564

79,99980,914

7,248

867

1,888

17,84343,738

6,980

0

1.65

2.57

1.83

0.03

0.00

0.00

1.56

0.06

0.00

0.00

Direct Greenhouse Gas Emissions

SARA Releases (metric tons) (5)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. FabricCare and Home Care includes Fabric Care, Home Care, Batteries, Snacks and Pet Care. 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. Numbers 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.
(6) Reflects corrected information listed in the 2011 report.
(7) Greenhouse gases resulting from fuel combustion sources and purchased electricity.

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Social Responsibility

Operational Efforts

EnergyAs demonstrated previously, we want to be
and be recognized as the leading global
supply chain organization for end-to-end
sustainability — from raw material suppliers
through finished product logistics. We arefocused on driving continuous progress
toward the operational elements of ourlong-term sustainability vision:

The Energy Consumption graph (in gigajoules,
GJ) shows the addition of Technical Centers andGillette for all three years. Energy consumption
over the last three years has been 71.9 million
GJ, 74.0 million GJ, and 72.3 million GJ in 2010,2011, and 2012, respectively.

• 100 percent renewable energy powering
our plants• Zero manufacturing waste sent to landfills• Releasing effluent water quality thatis greater than or equal to influent
water quality, with no contribution towater scarcity
While it will take many years to achieve thisvision, stating our intentions enables us todevelop long-range plans for realizing our vision,and establishing short-term goals allows us tomeasure progress along the way. The following
content contains additional details on ouroperational efforts.

As noted earlier in this report, we achieved a
7 percent absolute reduction in energy consumption vs. 2007; we exceeded our 10-year goal toreduce half of the energy consumption for theperiod of 2002–2012 by delivering a 52 percent
reduction in energy consumption on a production-adjusted basis; but we fell short of the 2012
goal of a 20 percent energy footprint reduction.
The primary driver was the introduction of anumber of new cogeneration (“cogen”) systems
at our sites. The introduction of co-gen systems
has been key to helping us achieve a significant
reduction in total CO2 (Scope 1 + Scope 2); it has
also resulted in a net increase in the amount offuel we consume on-site. This increased on-site
fuel consumption was the primary reason we fell
short of our Energy Consumption goal. We
remain committed to reducing energy consumption and have established a new goal to reduceenergy consumption by 20 percent by 2020.

•

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2020 Goals Chart•GRI Index

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What is Cogen?
ENERGY CONSUMPTION BY GBU(Millions of gigajoules)

71.9

10
11

74.0

12

72.3
Technical Centers
Health Care
Grooming
Fabric and Home Care

Distribution Centers
BeautyBaby Care and Family Care

REDUCTION IN ENERGY CONSUMPTION(Percent reduction versus 2002 level, per unit of production)
10

50%

11

52%

12

52%

Cogen, also referred to as combined heat andpower (CHP), is an efficient and clean approachto generating electrical power and thermalenergy from a single fuel source. Instead ofpurchasing electricity from the local utility andburning fuel in an on-site boiler to produce steam
or hot water, CHP can provide both energy
services in one energy-efficient step. CHP recovers
thermal energy from electricity production thatwould otherwise be wasted to produce usefulthermal energy; as such, CHP can provide
significant energy efficiency and environmental
advantages over separate heat and powersystems. The increase in fuel use efficiency of
CHP combined with the use of lower carbon
fuels such as natural gas generally translates
into reductions in GHG and criteria emissions
compared to separate heat and power. CHP canalso provide lower energy costs for the user by
displacing higher-priced purchased electricity
and boiler fuel with lower-cost self-generated
power and recovered thermal energy.
Adapted from: U.S. EPA and U.S. Department ofEnergy August 2012 Report, “Combined Heat &Power: A Clean Energy Solution.” For additional
information on Combined Heat & Power please
see the full publication available at www1.eere.
energy.gov/manufacturing/distributedenergy/.

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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 our part.
Our operational focus has been on direct CO2
emissions (i.e., Scope 1), and emissions data forthe last three years has been 2.8 million metrictons, 2.9 million metric tons, and 2.8 million
metric tons in 2010, 2011, and 2012, respectively.
We achieved a 5 percent absolute reduction in
direct CO2 emissions since 2007; we exceededour 10-year goal to reduce half of the direct CO2
emissions for the period of 2002–2012 bydelivering a 54 percent reduction in CO2emissions on a production-adjusted basis; but wefell short of the 2012 goal of a 20 percent
reduction in direct CO2 emissions. Consistent
with our energy consumption results, theprimary driver was the introduction of a numberof new cogeneration (“cogen”) systems at oursites. As described on the prior page, cogen has
several benefits and has been key to helping us
achieve a significant reduction in total CO2
emissions (Scope 1 + Scope 2). However, it has
also resulted in a net increase in the amount offuel we consume on-site. This increased on-site
fuel consumption was the primary reason we fell
short of our direct CO2 emissions goal. We
remain committed to reducing energy consumption and total CO2 emissions and have established new goals for 2020 to drive additional
reductions in both CO2 and Energy. Importantly,
our new 2020 goal is based on total CO2
emissions as we feel this will better reflect ourcomprehensive efforts to reduce energy
consumption and CO2 emissions while also transitioning to less carbon intensive energy sources.

•

Products•

Operations•

Social Responsibility(Million metric tons)

2.8

10

2.9

11

2.8

12

Distribution Centers
BeautyBaby Care and Family Care

SCOPE 1 GREENHOUSE GAS EMISSIONS*(Percent reduction versus 2002 level, per unit of production)
10

53%

11

53%

12

54%

* CO2 from fuel combustion sources.

(Million metric tons)

3.4

10

3.2
3.0

12

Technical Centers
Health Care
Grooming
Fabric and Home Care12•

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P&G recognizes the scientific consensus linking
greenhouse gas emissions and climate change.
P&G is not an energy-intensive company, but asa global citizen we are concerned about thenegative consequences of climate change andbelieve that prudent and cost-effective action by
governments, industry, and consumers to reduce
emissions to the atmosphere are necessary.
We will focus our efforts in two main areas:• Reducing the intensity of greenhouse gas emissions (GHG) from our own operations through:–– Continued energy efficiency measuresthroughout our facilities–– Continuing to drive more energy-efficientmodes of transporting finished products toour customers• Helping consumers to reduce their own GHG
emissions through the use of our products via:

(Percent reduction versus 2002 level, per unit of production)

112020 Goals Chart–– Setting goals to drive continued improvement in our GHG emissions

Distribution Centers
BeautyBaby Care and Family Care

SCOPE 2 GREENHOUSE GAS EMISSIONS

10•–– Continuing to transition fuel sources
towards cleaner alternatives

SCOPE 2 GREENHOUSE GAS EMISSIONS

11

Employees & Stakeholders

Climate Change Policy

SCOPE 1 GREENHOUSE GAS EMISSIONS*Technical Centers
Health Care
Grooming
Fabric and Home Care

•

42%
49%
51%

–– 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 throughthe Company Sustainability Report and theCarbon Disclosure Project.

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Waste Disposed
Total waste for disposal is our key management
measure to keep waste under control. Total waste
disposed comprises the sum of non-hazardousand hazardous solid waste, plus the strength ofeffluent measured as Chemical Oxygen Demand(COD) and air emissions. It excludes recycling orreused waste. It also excludes CO2 emissions.
The past three years, results have been encouraging on a production-related basis. Total waste
disposed for the last three years has been
363 thousand metric tons, 315 thousand metrictons, and 212 thousand metric tons in 2010,2011, and 2012, respectively.
TOTAL WASTE DISPOSED(Thousand metric tons)

363

10

315

11

212
Technical Centers
Health Care
Grooming
Fabric and Home Care

Products•

Operations•

Social Responsibility

Non-Hazardous Solid Waste Disposed

Total Waste for Disposal

12•

Distribution Centers
BeautyBaby Care and Family Care

Overall, the non-hazardous solid waste disposedto landfill decreased from last year to 157 thousand metric tons. P&G continues to find innovative
recycling methods.

••

Employees & Stakeholders

2020 Goals Chart

Water

The total percentage of waste recycledincreased to 79 percent.

Water Consumption(Percentage)
10

287

12

250

11

Technical Centers
Health Care
Grooming
Fabric and Home Care

63%
69%
79%

WATER CONSUMPTION BY GBU(Million cubic meters)

157

12

11

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Baby and Family Care and Fabric and Home Caresegments are our largest water users. Water
consumption over the past three years has been
81 million m3, 80 million m3, and 78.6 million m3
in 2010, 2011, and 2012, respectively.

(Thousand metric tons)
10

GRI Index

Waste Recycled

WASTE RECYCLED
NON-HAZARDOUS SOLID WASTE DISPOSED•Distribution Centers
BeautyBaby Care and Family Care

10

81.0

11

80.0

12

78.6

Hazardous Solid Waste Disposed
Hazardous wastes are defined by regional policies and local rules, so they vary from region toregion. To further reduce our risks, the number
of approved hazardous waste disposal sites thatall plants use has remained limited. Hazardous
solid waste disposed decreased to 20 thousand
metric tons. We remain focused on trying tominimize hazardous waste disposal.

Technical Centers
Health Care
Grooming
Fabric and Home Care

Distribution Centers
BeautyBaby Care and Family Care

REDUCTION IN WATER CONSUMPTION(Percent reduction versus 2002 level, per unit of production)
10

55%

11

58%

12

58%

HAZARDOUS SOLID WASTE DISPOSED(Thousand metric tons)

REDUCTION IN WASTE DISPOSED

10(Percent reduction versus 2002 level, per unit of production)

11

28
23
20

12
10
11
12

55%
61%
74%

Technical Centers
Health Care
Grooming
Fabric and Home Care

Distribution Centers
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Effluents to Water

SARA 313 Releases

Wastewater COD (Chemical Oxygen Demand)
disposed has decreased versus last year to
22 thousand metric tons.

(United States only)

WASTEWATER COD DISPOSED BY GBU(Thousand metric tons COD)

34

10

27

11

22

12

Technical Centers
Health Care
Grooming
Fabric and Home Care

Distribution Centers
BeautyBaby Care and Family CareAIR EMISSIONS(Thousand metric tons)

15

10

15

11

13

12

Technical Centers
Health Care
Grooming
Fabric and Home Care

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

SARA 313 U.S.

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 decreased versus last year to
13 thousand metric tons.

Distribution Centers
BeautyBaby Care and Family Care

(Total metric tons released or transferred)
10

1,826
2,570

11
12

•

Employees & Stakeholders

2020 Goals Chart

Notices of Violation(NOVs)

The amount of SARA 313 releases decreased
versus last year. The decrease reflects efforts at
key sites to reduce releases.

Air Emissions

•

1,653

SARA is reported one year behind; 2012 entry reflects 2011 data.

Compliance with Laws
and Regulations

Fines

2012

2011

2010

34

36

46

$93,760

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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•$53,259 $112,340

The following is a more detailed breakdownof global Notices of Violation (NOVs) for fiscal
year 2012.
NumberFines

Water-Based10$41,584

Air-Based

5$2,267

Solid Waste–Based

3$12Paperwork

0$0Transportation–Based5$17,125

Other

0

$0

Worker Safety

11$32,772

Total

34$93,760

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 sitesof our key suppliers and service providers that
could significantly interrupt business operations,and the business impact of such events. Site andbusiness unit leaders then develop contingency
plans to minimize business interruption if a disabling event should occur. Crisis Management
team structures are defined to manage businessrecovery using the predefined contingency
plans. Tests are conducted annually to ensurethat the contingency plans are sufficient andup-to-date.
Business Continuity Plans are audited regularly,
and a report of the Business Continuity
Program’s status is made each January to the
Audit Committee.

There are numerous health, safety, and environmental 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 withboth the letter and the spirit of statutes,
regulations, laws, and permit requirements.
Identified compliance issues are treatedseriously, and all noncompliance matters areresolved as expeditiously as possible.

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Introduction•

P&G Profile•

Products•

Operations

Social Responsibility•

Social Responsibility •Employees & Stakeholders•

2020 Goals Chart•GRI Index

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We focus our social responsibility efforts in waysthat enable our Company, our brands, and ourpeople to make a unique and lasting impact on thepeople we serve. Our programs operate where wecurrently reach consumers and in communities
where we hope to someday serve consumers. We
see our social responsibility efforts as an expressionof the good that our brands can do in the world
today, as well as an investment in the future.

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Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility •Employees & Stakeholders•

2020 Goals Chart•GRI Index

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2012 Goals Results
In 2007, P&G announced two ambitious social responsibility goals toaccomplish by 2012. The first was to help 300 million children aroundthe world with programs that enable them to live, learn and thrive.
The second was to deliver 4 billion liters of clean water to prevent
160 million days of disease and save 20,000 lives.
We are pleased to report that we have exceeded both of these goals.
Between 2007 and 2012, we helped over 400 million children around theworld, and we delivered 4.22 billion liters of clean water, which prevented
more than 170 million days of disease and saved over 22,000 lives.

LIVE, LEARN AND THRIVE

Number of Children Reached

P&G CHILDREN’S SAFEDRINKING WATER PROGRAM

4.2 billion
400
million
Liters of Clean Water Delivered

Number of Lives Saved

22,000Days of Disease Prevented

170million

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Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility •Employees & Stakeholders•

2020 Goals Chart•GRI Index

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Live, Learn and Thrive Locations
Asia• Australia• Bangladesh• Cambodia• China• East Timor• Hong Kong
• India• Indonesia• Japan• Laos• Maldives• Malaysia• Myanmar• Nepal• New Zealand• North Korea• Papua New Guinea• Philippines• Singapore• South Korea• Sri Lanka• Taiwan• Thailand• Vietnam

Central & Eastern
Europe, Middle East
& Africa• Afghanistan• Angola• Algeria• Azerbaijan• Botswana• Bulgaria• Burkina Faso
• Cameroon• Chad• Côte d’Ivoire• Croatia• Czech Republic• Democratic Republicof the Congo• Djibouti• Egypt• Estonia• Ethiopia• Gabon• Georgia• Ghana• Guinea-Bissau• Hungary• Iceland• Iran• Iraq• Israel• Jordan• Kazakhstan• Kenya• Kyrgyzstan• Latvia• Lebanon• Liberia• Lithuania• Madagascar• Malawi• Mali• Mauritania• Mongolia• Morocco• Mozambique• Namibia• Niger• Nigeria• Pakistan• Poland• Romania• Russia• Rwanda• Saudi Arabia• Senegal• Sierra Leone• Slovenia• Slovakia• Somalia• South Africa• South Sudan• Syria• Tajikstan• Tanzania• Turkey• Turkmenistan• Uganda• Ukraine• Uzbekistan• Zambia• Zimbabwe

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

North America• Canada• Puerto Rico
• United States

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

Our programs can be found in over
120 countries and in every region in theworld. The number of countries where
we have programs has grown 100 percent
since we began our Live, Learn andThrive program in 2005.
Live, Learn and Thrive Locations

Includes data on the P&G Children’s Safe Drinking Water Program.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility •Employees & Stakeholders•

2020 Goals Chart•GRI Index

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Improving Babies’ Lives in Africa
As part of a global commitment to healthy baby development, Pampers provides assistanceto new mothers and babies in sub-Saharan Africa through a variety of programs. For instance,
the brand’s “One Pack = One Vaccine” partnership with UNICEF has been providing vaccines against
Maternal and Newborn (Neonatal) Tetanus (MNT) for more than five years. With help from Pampers,
six African countries have been validated by the World Health Organization as having eliminated
MNT — Burkina Faso, Ghana, Guinea-Bissau, Liberia, Senegal, and Uganda.
Pampers is also committed to healthy baby development in other ways. For example, through its
Point of Market Entry (POME) programs, Pampers has enabled more than 8 million mothers to receive
free health advice at immunization clinics and hospitals across Nigeria. In South Africa, a Pampers
partnership with the Department of Home Affairs has helped register 450,000 newborns, giving thembetter access to social benefits like healthcare and education.

Reaching a Milestone with Children’s Safe Drinking Water
The P&G Children’s Safe Drinking Water Program (CSDW) reached a major milestone in late2011 when it provided its 4 billionth liter of clean drinking water since its inception in 2006.
This occurred during a relief effort in Thailand, where flooding took the lives of 500 people anddisplaced millions more. Dr. Greg Allgood, Director of the P&G CSDW Program, visited families
affected by the flooding and demonstrated the use of P&G Purifier of Water.

6

African Countries
have eliminatedMaternal andNewborn Tetanus

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Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility •Employees & Stakeholders•

2020 Goals Chart•GRI Index

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Supporting the Education of India's Children

Promoting Hand Washing in Mexico

Close to half of India’s children lack access to primary school. We’re helping address this througha multi-brand cause-related marketing program known as Shiksha (meaning “Education”)
established in 2005. Through the Shiksha program, P&G has built and supported more than 200
primary schools, which has helped give 385,000 underprivileged children access to education since
its inception. We know that access to education can improve the future for children, and we arepleased to report such encouraging results.

Since 2009, the Escudo brand (also known as “Safeguard” in many parts of the world) has
worked hard in Mexico to promote a culture of hand washing, which is among the most effective ways to prevent diarrheal diseases and pneumonia. Escudo’s support of UNICEF’s Global Hand
Washing Day has enabled the education of nearly 1 million children about proper hand washingpractices to prevent disease.

Along with Shiksha initiatives, P&G is committed to improving life in additional ways throughout India.
For example, Whisper’s Parivartan program (meaning “Transformation”) has empowered 2.5 million
girls by delivering timely menstrual hygiene education — helping to keep them from missing an averageof 50 days of school a year due to inadequate feminine protection.

In 2012, Escudo teamed up with Save the Children to develop workshops in schools across Mexico. The
preliminary outcomes collected by Save the Children have been extraordinary. After the interventionof more than 13,000 children in southeastern states of Mexico, the data showed that diarrhea-relateddiseases decreased by 50 percent and disease-related school absences were down 11 percent.

“If I had known how easy and simple it is to wash myhands, I wouldn’t have had stomachaches. Now I know
I can prevent diseases.”

Aranza13 years old

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Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility •Employees & Stakeholders•

2020 Goals Chart•GRI Index

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Donating Products to Those in Need

Preventing Pneumonia in Bangladesh

We believe our products play an integral part in serving people in need. Just this year, P&G
donated more than 2,000 pallets of product to In Kind Direct, a charity established by H.R.H. The
Prince of Wales to redistribute donations across the UK. One such recipient — Darnall Community
Nursery — is helping 130 families every month with support from P&G and In Kind Direct. According
to Nursery Manager Claire Ward, “You only have to look around the nursery, from the kitchens andbathroom to the main play areas, to see the range of Procter & Gamble products we get.” The uniqueproduct benefits we offer are important in providing the everyday basics people need for themselves,
their families, and their homes. Brands like Pampers, Gillette, Duracell, Pantene, Ariel, and Oral-B are
important to helping improve health and confidence for people in need.

In early 2012, the Vicks brand in Spain launched the first Vicks Breathe for Life program tobenefit Save the Children’s pneumonia project in Bangladesh. The program allowed consumers
to “donate a breath to a child who needs it.” By purchasing Vicks products or participating in an online
campaign, consumers helped Vicks donate critical funding for education, supplies, and medications
that helped treat Bangladeshi children and protect them from pneumonia. The donations from theVicks Spain program have already enabled more than 7,000 children in Bangladesh to get treatment
for pneumonia, helping them breathe a little easier.

7,000
children in Bangladesh
received treatment
for pneumonia

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P&G Profile•

Products•

Operations•

Social Responsibility •Employees & Stakeholders•

2020 Goals Chart•GRI Index

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Clean Drinking Water
2020 GOAL PROGRESS

In order to reach our 2020 goal of saving one life every hour, we will
provide 2 billion liters of clean drinking water every year. We’ll accomplish
this by providing 200 million P&G water purification packets every year in
the developing world where 4,000 children die every day from uncleanwater. Each packet quickly turns ten liters of potentially deadly water
into clean, drinkable water. The packets will be produced at a dedicatedmanufacturing facility we will open in Singapore in November 2012.
As a sign of our commitment to the P&G Children’s Safe Drinking Water Program, we literally put our
Company name on the packets. This coincided with the sale of our PUR water filtration business in
December 2011, and we changed the name from “PUR Purifier of Water” to “P&G Purifier of Water.”This was the first time the Company logo has appeared prominently on a product since P&G Naphtha
Soap launched in 1904. It’s been over 100 years, and we felt that now was the right time and thiswas the right product to make this statement of the Company’s support.

2020 GOAL
Save one life every hour by
delivering 2 billion liters ofclean water every year

P&G Purifier of Water Facts:· Removes more than 99.99999 percent of common waterborne bacteria (including those that causecholera), 99.99 percent of common waterborne viruses (including those that cause hepatitis A) and99.9 percent of protozoa.
· Proven to reduce diarrheal disease incidence in the developing world by up to 90 percent.

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P&G Profile•

Products•

Operations•

Social Responsibility •Employees & Stakeholders•

2020 Goals Chart•GRI Index

58 of 83Children’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

Asia/Europe• Kenya• Liberia• Malawi• Mali• Mauritania• Morocco• Mozambique• Namibia• Nigeria• Republic of
the Congo• Rwanda• Senegal• Sierra Leone• Somalia• South Africa• Sudan• Tanzania• Uganda• Zambia• Zimbabwe• 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

Relief and Social Market Countries

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Contents•

Introduction•

P&G Profile

P&G Children’s Safe
Drinking Water Program
Methodology
Working with Population Services Internationaland Aquaya Institute, we have developed thefollowing methodology to estimate the days of
disease and lives saved as a direct result of P&G
Purifier of Water (formerly PUR) usage.
The number of P&G water purification packets
that are provided are tracked on a monthly basis
by country.
From this, we calculate the liters of clean drinking water provided and estimate the impact on
reduction in days of diarrhea and estimated lives
saved. The illness and fatality rates by region
are derived from the World Health Organization
Global Burden of Disease 2002 estimates. SubSaharan estimates are used for product provided
for emergency relief efforts since diarrhea rates
are typically high during these situations.
The reduction in diarrheal illness from theuse of the P&G packets 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 the peerreviewed literature.

•

Products•

Operations•

Social Responsibility •Employees & Stakeholders

Health Intervention Trials

Assumptions

The U.S. Centers for Disease Control and Johns
Hopkins University have conducted five clinical
trials of P&G Purifier of Water and proven that it
significantly reduces diarrheal illness in children
and the total population.

GeneralLocation/Setting

Study Design

Diarrhea
Reduction•2020 Goals Chart•GRI Index

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• Each P&G Purifier of Water packet treats
10 liters of water.
• An average of one and a half liters of drinking
water is used per child per day and two litersof drinking water per adult per day.

Diarrhea

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%–– 5 episodes in sub-Saharan Africa

Liberia–refugee camp

2,191 people
12 weeks

87–95%–– 2.2 episodes in Latin America• 60 percent of water treated with P&G packets
is consumed by children.
• The number of episodes of diarrhea per childper year is:• 40 percent of water treated with P&G packets
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• P&G Purifier of Water use averts 50 percentof the diarrhea episodes.
• A diarrhea episode lasts an average of 7.3 days.
To learn more about the P&G Children’s
Safe Drinking Water program, please visit
www.csdw.org.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Employees &Stakeholders

Products•

Operations•

Social Responsibility• Employees & Stakeholders •2020 Goals Chart•GRI Index

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

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

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

Our Purpose
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 with leadership sales, profit, and value creation, allowing
our people, our shareholders, and the communities 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.

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Integrity

Passion for Winning

Trust• We always try to do the right thing.

• We are determined to be the best at doing
what matters most.

• We respect our P&G colleagues, customers,
and consumers, and treat them as we want
to be treated.

• We are honest and straightforward witheach other.
• We operate within the letter and spirit of
the law.
• We uphold the values and principles of P&G
in every action and decision.

• We have a healthy dissatisfaction with thestatus quo.
• We have a compelling desire to improve andto win in the marketplace.

• We have confidence in each other’s capabilities and intentions.
• We believe that people work best when there
is a foundation of trust.

• We are data-based and intellectuallyhonest in advocating proposals, including
recognizing risks.

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

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

P&G Values• We develop the capability to deliver our strategies and eliminate organizational barriers.

Integrity
Leadership
Ownership
Passion for Winning
Trust

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

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

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Contents•

Introduction•

P&G Profile

Our Principles•

Products•

Operations•

Social Responsibility

Innovation Is The Cornerstone of
Our Success

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

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

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

• We believe that all individuals can and wantto contribute to their fullest potential.
• We value differences.
• We inspire and enable people to achieve highexpectations, standards and challenging goals.
• We are honest with people about theirperformance.

We incorporate
Sustainability into our
products, packaging,and operations.
We Are Externally Focused• Employees & Stakeholders •2020 Goals Chart• We encourage and expect outstanding
technical mastery and executional excellence.

We Seek to Be The Best• We strive to be the best in all areas ofstrategic importance to the Company.
• We benchmark our performance rigorously
versus the very best internally and externally.
• We learn from both our successes andour failures.

Mutual Interdependency Is a
Way of Life

• 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 create and deliver products, packaging,and concepts that build winning brand equities.

• We work together with confidence and trust
across business units, functions, categories,
and geographies.

• We develop close, mutually productive
relationships with our customers and our
suppliers.

• We take pride in results from reapplying
others’ ideas.

We Are Strategically Focused in
Our Work• We operate against clearly articulated andaligned objectives and strategies.

• We incorporate sustainability into our
products, packaging, and operations.

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• We believe it is the responsibility of all
individuals to continually develop themselves
and others.

• We develop superior understanding of
consumers and their needs.

• We are good corporate citizens.

GRI Index

We Value Personal Mastery

The Interests of The Company and
The Individual Are Inseparable• We encourage stock ownership and ownership behavior.

•• We build superior relationships with all
the parties who contribute to fulfilling our
Corporate Purpose, including our customers,
suppliers, universities, and governments.
To learn more about our Purpose, Values
and Principles, please go to: www.pg.com/
en_US/company/purpose_people/index.shtml.
• We only do work and only ask for work that
adds value to the business.
• We simplify, standardize and streamline ourcurrent work whenever possible.

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Contents•

Introduction•

P&G Profile

Human Rights
Respect for human rights is implemented
through our existing policies, practices,and due diligence systems (e.g., employee
rights; employee benefits; health, safety,
and environment; water; health services;
HIV/AIDS; product safety; worldwide
business conduct manual; Sustainability
Guidelines for Suppliers’ Relations; andLive, Learn and Thrive cause).
During the last year, P&G has continued its
involvement in a number of human rights andother related social responsibility initiatives:
1. Continued to monitor the work of the UN
Working Group on Business and Human
Rights including meeting Mr. Puvan
Selvanathan, the current Chair of theWorking Group.
2. Presented P&G’s Water Policy at the UN
Water Day Conference at Rio+20 in June.
3. Participated in several U.S. State Department
discussions on CSR and human rights.
4. Complied with the California Transparency Act
disclosing the Company’s effort to eradicate
human trafficking in the supply chain.

•

Products•

Operations•

Social Responsibility

5. Participated in the annual Human Rights
seminar sponsored by The Coca-Cola
Company. This year’s focus was on
human trafficking.
6. Led the Human Rights Work Stream effort
within AIM-Progress to build the capability ofmembers to conduct HR due diligence of
their supply chains focusing on assessing
actual and potential HR impacts.
We have also developed a draft human rights
policy statement and action plan based the UN
Guiding Principles for Business and Human
Rights. We have vetted the draft policy withboth internal and external stakeholders and plan
to issue a final policy during Fiscal Year 12/13.

“Respect for humanrights is implemented
through our existing
policies, practices, anddue diligence systems”• Employees & Stakeholders •2020 Goals Chart

Human Resources
Human Resources ensures that P&G has
the employees, organizational design, andwork culture to deliver business productivity and to continually improve consumer,
employee, and shareholder value. They
provide recruiting, training, development,
diversity, benefits, and compensation
coordination for the Company.
It is the Company’s intent to develop all employees to their full potential. To achieve this goal,
the following support systems are in place:• Career discussions, performance appraisals,
assignment plans, transfer and promotion plans• Informal network support groups• Mentoring to provide informal support 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 with respect
to our employees’ privacy. We will only collectpersonal information about our employees
where it is necessary to carry out legitimate
business objectives and to provide employee services. Access to employee data will be limited toonly those that have a legitimate business needor to fulfill a legal requirement.

•

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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 but
also from a business perspective. It enables ourdiverse work force to contribute to their highest potential. We will not tolerate harassmentof anyone by anyone — including employees,
suppliers, customers, contractors, and agencies.
Every employee is expected to be proactive inensuring that the work environment is free fromharassment of any kind. Managers of others are
responsible for setting clear expectations for
acceptable behavior 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 been developed
to help protect the financial security of
employees. These benefits include comprehensive coverage for health care, vacation andholiday time, and other work/family balance
benefits, including flextime, child care leave, andless-than full-time schedules.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility• Employees & Stakeholders •Diversity & Inclusion

Business Case for Diversity& Inclusion

Attracting and Retaininga Diverse Workforce

We have an organizational strategy to touchand improve the lives of our employees. We
want to Be and Be recognized as the Global
Leader for Diversity and Inclusion.

Diversity & Inclusion at P&G brings together
individuals from different backgrounds, cultures,and working and thinking styles, providing
remarkably different talents, perspectives, andlife and career experiences. Diverse groups are
more innovative than homogenous groups ofpeople. And innovation is our lifeblood. It is
how we touch and improve lives.

Diverse Talent Throughout

Diversity & Inclusion is more than a strategy at
P&G. It is part of our DNA and all we do. We
see the power of diversity as a competitive
advantage and want to realize its full potential
by fully leveraging the unique strengths andtalents of our employees.
Inclusion is at the core of P&G’s strategy, thus
empowering employees to put their passion
behind it and bring it to life in meaningful ways.
Fostering a culture of inclusion ensures thatevery employee feels valued and included, andcan perform at their peak every single day.

Diverse Talent Throughout
Trusting, Open, and Inclusive Culture
Flexible Environment

Everyone Valued, Everyone Included, Everyone
Performing at Their Peak.™

Our Vision
Diversity & Inclusion is in P&G’s DNA — at theheart of our Purpose and critical to growth.

P&G is a build-from-within Company. Just as ourconsumers are global and diverse, so are our
employees. By design, we ensure that leadershiphas broad, global perspectives. We recruit top
talent from diverse backgrounds and cultures
around the world. Our employees need toreflect the diverse markets and consumers weserve. P&G employees represent more than
145 nationalities worldwide, and we have themost globally diverse and experienced leadershipteam in the Company’s history.

•

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Structurally, each group is sponsored by asenior leader in the Company and regularly
meets with executive leadership on key areas
and opportunities. Additionally, there are also
numerous grassroots employee resource groups
throughout the Company, representing a large
variety of diverse interests throughout our
entire employee population.
P&G’s affinity groups began in the early 1960s
and have continually evolved, formalizing in the
1990s, and continuing on a journey to help P&G
further foster a culture of high inclusivity.

Trusting, Open, and Inclusive Culture

Focus Areas

Our Mission

2020 Goals Chart

By design, Diversity & Inclusion is top of mind andembedded into our systems and processes, forsustained change. For example, our North America Affinity Groups are closely linked to internship programs and recruiting efforts, and our
global on-boarding program now has Diversity &Inclusion embedded in all phases. And our Ethnic
Marketing center of excellence can call upon our
ethnic Affinity Groups for consumer insights.

At the core of our strategy, we want to foster aculture of inclusion so that everyone is valued,
included, and performing at their peak.
To support our diverse and global workforce,
we have seven corporate affinity groups. P&G’s
affinity groups offer an internal forum for
employees to connect and build a strong senseof community as well have the opportunity to

We want to foster aculture of inclusion sothat everyone is valued,
included, and performingat their peak.
be in service to the Company to deliver betterbusiness results. Affinity groups also aim toensure we attract, develop, and maintain adiverse workforce.

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Contents•

Introduction•

P&G Profile

Embedded in Our Culture for
Lasting Change
Diversity & Inclusion capabilities aim to fosterand grow an open and inclusive culture througha blended learning approach (classroom, webinars, assessment tools, and employee interest
groups). Topics include flexibility, culture, affinity(People with Disabilities, Gender and Lesbian/
Gay/Bisexual/Transgender), generations, andunderstanding differences in working and thinking styles. Understanding differences enables
employees to build collaborative diverse relationships to successfully drive business growth.
Foundational Diversity & Inclusion capability
focuses on key concepts such as micro-inequities, unconscious bias, benefits in leveraging
diversity, and intent versus impact on others.
By understanding these types of differences, itenables our employees to be in touch and build
collaborative diverse relationships so that we
can all successfully grow our business together.

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Diversity Metrics

External Recognition

Human Rights Campaign

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

Working Mother• Rated “100” on Corporate Equality
Index (2011)

Global Enrollment

2012

2011

2010

% FemaleManagement

43.0

42.3

41.6

All Other Employees (1)

37.1

37.2

38.5

2012

2011

2010

Management

23.9

23.7

23.1

All Other Employees (1)

18.1

18.7

18.8

Management

41.7

41.4

41

All Other Employees (1)

38.3

37.8

38.2

% Minorities% Female(1) Administrative, Technical, and Plant Technicians• Top 5 Companies for Multicultural Females(2012 — Top 5)• Top 100 Companies for Working Mothers(2011 — 100 Best)

DiversityInc• Top Companies for Diversity (2012 #5)

The percentages of minority and female
employees in the United States are shown in
the following table:
U.S. Enrollment• NAFE Top 10 Companies for Executive
Women (2012 — Top 10)

Society of Hispanic Professional Engineers• 2010 Company of the Year AwardABILITY Magazine• 2010 Best Practices Award• Top Global Diversity Companies (2012 #3)

Disability Matters• Top 10 Companies for People with Disabilities(2012 #3)

• 2012 Disability Matters Workforce Award(second consecutive year)• Top 10 Companies for Latinos (2012 #2)• 2012 Disability Matters Disability Champion
Award — Miguel Garcia• Top 10 Companies for Asian Americans(2012 #1)

Women Corporate Directors• Top 10 Companies for Recruitment andRetention (2012 #2)• 2011 Visionary Award for Leadership inGovernance — Bob McDonald• Top 10 Companies for Executive Women(2012 #5)

Women’s Business Enterprise Hall of Fame

• Top Company for Cultural Competence(2010)

Recognized as a
top 10 company forexecutive women• 2011 Greater Cincinnati Corporate
Equality Award

Fortune• Most Powerful Women (Mel Healey #13;
Deb Henretta #20)

• Corporate Advocate Category —2011 InducteeDiversityBusiness.com• Top 50 Organizations for MulticulturalBusiness Opportunities (2012)

Nikkei Woman’s Best Place to Work
• P&G Japan #2

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

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

•

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Social Responsibility

Since P&G is a principles-driven company, thefollowing Global Medical Priorities drive all of
our health systems worldwide:
1. Save a Life (Protect Our People)
2. Obey the Law (Protect Company Reputation)

The simple four-word Vision of P&G’s Global
Medical organization is “Healthy People, Healthy
Business.” P&G works with employees toprotect and enhance their health and wellbeing. The Global Medical organization advises
and assists management and employees toassure a safe, healthy work environment. Global
Medical delivers preventive health services toall employees at all sites. It manages healthissues that may affect our people, technologies,
and brands. As a result, our people become
our most important asset.
During the past year, Global Medical delivered intimes of regional crisis, assisting our employees
and local health providers with medical guidance, supplies, and support.
Our P&G Health Services/Vibrant Living HealthCenters sites worldwide had over 336,000
visits by employees in the past fiscal year. Our
programs are making a difference. Employees
who utilized Health Services or on-site healthprograms reported better work-life effectiveness(flexibility, job demands, and energy) and personal well-being scores of 10 percentage points
or higher compared to those not using these
services and programs as measured by the 2012
P&G Employee Survey.

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 WorkLife
Solutions/EAP Programs)
All medical standards of performance and standard operating procedures flow directly fromP&G Principles, Values, business needs, and the
Global Medical Priorities.
GLOBAL MEDICAL SYSTEMS

Save aLife

Obey
the Law

Protect
Key
Tech­nologies

Enhance
Speed toMarket• Employees & Stakeholders •2020 Goals Chart•GRI Index

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P&G Vibrant Living

Highlights of our progress include:

In 2012, we continued the global rollout of the
P&G Vibrant Living initiative with the intent tobring all Health & Wellness programs together
to better serve our employees and their families.
Our vision is to become the Healthiest, Most
Engaged People in the World. P&G’s Vibrant Living strategy reflects these three focus areas:• Vibrant Living branded programs have beenrolled out to 168 P&G sites in 46 countries(see map below for Vibrant Living program
countries in ORANGE).

Culture of Health — through emphasis on
nutrition, fitness, easy access to our healthinformation, and an environment that encourages healthy choices and personal managementof health risks.
Health Education and Training — throughprograms like Corporate Athlete and WorkLife
Solutions/EAP Programs.

• Over 152 Vibrant Living Health Coaches(nurse specialists) have been trained acrossfour regions (North America, Latin America,
CEEMEA, and Asia).
• The Vibrant Living Site Certification Program
was developed and deployed globally toensure that our Culture of Health goals are
met. Eleven sites have attained Vibrant Living
Certification, and many more applications are
currently under review.

Employee Engaged Health Care — provides
greater understanding of local health careresources and enables informed individual
health choices.

InspireHealth andWellness

Vibrant Living Health Centers

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

Worldwide Health,
Safety, and Environment
Systems
Health and Safety Policy
P&G is committed to having safe and healthy
operations around the world. The goals are toprotect the lives and health of its employees andthe communities surrounding its operations,as well as to protect its assets, ensure business
continuity, and engender public trust.
To accomplish this, P&G will:• Operate facilities safely and ensure that processes are safe and healthy for our employees
and residents of the surrounding communities. We will accomplish this by following
uniform corporate safety standards aroundthe world. Safe operations have been a longstanding part of Company culture, reflecting
the belief that our employees are our mostimportant asset.
• Construct our facilities so as not to compromise on the safety and health featuresdesigned into them.
• Monitor progress toward our objective of preventing injuries, illnesses, and incidents. We
will continually assess and improve our safety
and health technologies and programs.

•

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Social Responsibility

Worldwide Health, Safety &Environment Organization
Health, Safety & Environment (HS&E) is a global
community of resources responsible for ensuringthat all sites worldwide — including Innovation
Centers, Distribution Centers, acquisitions, andestablished plants — are operated safely andlegally; that process hazards are minimized oreliminated; that health risks are identified andmanaged or eliminated; and that waste fromsites is reduced as much as possible. Several
thousand employees spend all or a portion of
their time on HS&E management. This year,
1,783 full-time equivalents were involved in
HS&E activities. This is up from 1,688 FTEs lastyear and reflects the start-up of P&G HS&E
systems into new operations.
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 enable highspeed innovation.

• Employees & Stakeholders •2020 Goals Chart

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 conductedby Environmental Resources Management(ERM), a highly respected international consulting firm in the field of environment, 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.

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The TIR target for sites is to be below 0.5 cases
per year, per 100 employees. To achieve suchrates, programs to address employee safety,
such as safe behaviors, ergonomics, and confined space entry have been implemented. No
target has been set for LWDC. Instead, incidents
that potentially could lead to lost workdays
are managed. The following data is based on
criteria established by P&G for use at all sites
including acquisitions, plants, and technicalcenters. This year’s TIR was lower, at 0.36 versus
0.38 incidents per 100 employees, while the lost
workday rate was also lower at 0.19 versus 0.21
cases per 100 employees. Both are lower thanindustry averages.

• Safety can be managed.

TOTAL INCIDENT RATE

• Every illness and injury could and shouldhave been prevented.

10(Injury and illness per 100 employees)

0.41
0.38

11

• Safety and health are everyone’s responsibility.
The Company tracks and reports two metrics forworker safety: total incident rate (TIR) and total
lost workday case rate (LWDC). TIR includes
all cases that result in loss of consciousness,
lost workdays, restriction of work or motion,
medical transfer to another job, or medical
treatment beyond first aid. LWDC includes allcases that involve days away from work or daysof restricted activity beyond the day of injury or
onset of illness.

0.36

12

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

0.22

10

0.21

11
12

0.19

• Have every employee understand and be
responsible for incorporating safe behavior
in daily 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.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

Audit Programs
P&G’s HS&E audit programs are designed toensure compliance with national, state, andlocal regulatory requirements as well as corporate environmental standards and procedures.
Audit findings are reported promptly to thebusiness management teams, who must addressand correct all issues in a timely manner.

•

Products•

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Social Responsibility

In addition, we also included a number of recent
acquisition sites this year. As is typical with manyacquisitions, it takes time for them to reach an
HS&E audit score > 8.0 and several sites arestill short of that target. Both of these factors
contributed to the decrease in the percentage ofsites with HS&E audit scores > 8.0 (66 percent
vs. 77 percent from last year).

P&G’s audit programs apply to all plants,
innovation centers, and distribution centers,
worldwide. The fundamental philosophy is to use
standards worldwide, implemented by trained
professionals at facilities and audited each year
using a consistent, comprehensive approach. The
metrics used are consistent with that philosophy.

SITES WITH HS&E AUDIT SCORES > 8.0

Audits measure performance against a mandatory set of standards and standard operatingprocedures. The target performance is 8.0 or
better on a 10-point scale. The percentage ofsites audited this year was 97 percent.

Fire Protection

SITES CONDUCTING ANNUAL AUDITS(Percentage)
10

96%

11

96%

12

97%

HS&E Audit Scores
P&G HS&E resources have been working
through a rigorous calibration exercise across all
geographies to ensure an appropriate calibration and focus on potential high-risk areas. Thiscalibration exercise is helping to ensure we areholding ourselves to the highest standards andhas resulted in a decrease in the number of sites
with scores > 8.0.

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to conducting these assessments. This processchange resulted in a decrease in the number ofsites with scores > 8.0.

SITES WITH FIRE PROTECTIONQUALIFIED LEADERS

This year, 52 percent of sites had Fire Protection
audit scores over 8.0. This is slightly up versus
last year. Sites are working against action plans
to improve scores based on the new audit
program implemented in 2010–11.

10

86%

11

87%

12

87%

(Percentage)

HS&E Program Costs
92%

77%

11

2020 Goals Chart

SITES WITH FIRE PROTECTION
AUDIT SCORES > 8.0(Percentage)
10• Employees & Stakeholders •66%

P&G operates its fire protection program on thebasic principle that each facility is unique andshould have a program designed to meet its
specific requirements. Working with the Insurance
Division, HS&E has developed a checklist-based
assessment process that evaluates the fire
protection equipment, maintenance andinspection, and emergency response capabilityof a site versus the appropriate level of fire
protection required at that site. Each plant,innovation center, and major distribution centeris assessed annually. The target performance is
8.0 or better on a 10-point scale.

Fire Protection Audit Scores
The fire protection assessment program waschanged significantly this past year even though
we continue to have a historically low numberof fire losses and no regulatory issues. The newaudit process is designed to be much clearer andcalibrated relative to our internal fire protection
standards. These process changes resulted in amore rigorous and globally calibrated approach(Percentage)

93%

10
11

51%

12

52%

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.

Site HS&E Leadership Training

There are two aspects of HS&E program costs:

A key indicator of HS&E systems capability is thepercentage of sites with trained and qualified
leaders. Leadership candidates train on-site foran extended period after attending a week-longseminar where their knowledge and ability tohandle specific situations are assessed. For full
qualification, the candidates must complete a
qualification project at their own plant. Currently,
92 percent of sites worldwide have HS&E leaders
qualified by Corporate/GBU staffs, and 87 percent
have qualified fire-protection leaders. This training
and qualification program applies to all sites,
including Technical Centers and acquisitions.

1. Capital costs for new HS&E equipment

SITES WITH HS&E QUALIFIED LEADERS(Percentage)
10

88%

11

91%

12

92%

2. People and operating costs for existing facilities
HS&E capital costs for 2011–2012 were approximately $76.4 million, which is up 58 percent
versus last year’s $48.4 million. HS&E capitalcosts 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 2011–2012, were$146.7 million, which is up 8.6 percent versus
last year’s $135.1 million. Efforts to reduce theamount of waste disposed have increased ouroverall quantity of recycling, and revenue generated from these recycling activities was $58
million, up 11 percent from last year.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

HIV/AIDS
All employees, including those who are HIVinfected or have AIDS, are treated consistent
with the Company’s Purpose, Values andPrinciples by the Company, their managers, andco-workers. Among other things, that meansthat each individual is treated with dignity andrespect, and that we do not discriminate against
any individual based on any difference notrelated to performance.
We treat employees with HIV/AIDS the sameas we treat those with other serious illnesses.
Specifically, an employee who is HIV-infected or
has AIDS:• Has the same employment rights and responsibilities as other employees.
• Has the same eligibility for employee benefits
and programs, including medical care anddisability coverage, as noninfected employees.
• Is afforded privacy and confidentiality protection consistent with the Company’s handlingof confidential, medical, or other sensitive
information.
• Is provided management support toremain productive.

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P&G Purifier of Water and HIV/AIDS
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. In
sub-Saharan Africa, where HIV/AIDS rates arevery high, we are working with a number ofpartners to provide safe drinking water to help
people live positively with HIV/AIDS. People whohave HIV/AIDS are more susceptible to waterborne diseases, including parasites, viruses andpathogenic bacteria. The P&G Children’s Safe
Drinking Water program provides the P&G Purifier of Water product, which effectively removes
all of these elements from contaminated water,
making it a critical health tool for many people
with HIV/AIDS.
As discussed earlier in this report, P&G has
exceeded its goal of providing 4 billion litersof clean drinking water by 2012 and is now
focused on its commitment to save one life
every hour by 2020 by providing 2 billion litersof clean drinking water each year. People livingwith HIV/AIDS are a major focus of our work
to deliver this increased impact, and we are
currently working at a large scale in Democratic
Republic of Congo, Ethiopia, Kenya, Malawi,
Nigeria, Tanzania and Uganda to help people
living with HIV/ AIDS.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

Stakeholder
Engagement
P&G works hard to be a good corporateneighbor and to improve lives in thecommunities where we live and work.

Communities
Each P&G production facility has site-specificactivities to build constructive relationships withlocal authorities, industry associations, residential
and business neighbors, action groups, thought
leaders, and news media. Depending on thecultures and interests of individual communities,
this can range from regular official meetings,
during which new information is shared orquestions are answered, to more informal
meetings. These could include, for example, a
reception for immediate neighbors, where
information about the past year and plans forthe new year are discussed. P&G ensurescontinuity in community interaction by meeting
regularly with local authorities to update themon plant news. In the neighborhoods of many
P&G operations, the Company cooperates withand sponsors local events, so the whole area
benefits from the presence of a P&G site.
P&G recognizes the importance of improving
the quality of life in our local communities,
and we support local initiatives and encourage
employee involvement. The most valuable community support we provide usually involves not
only writing a check but also taking advantageof the intellectual capabilities and energy of P&G
people. We look for areas where we can makea significant, long-term, systemic difference.
This leads us to focus heavily on educationand health, with special emphasis on youth. It•

Products•

Operations•

Social Responsibility

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 towork with their local communities and government officials to learn where we can make thebiggest difference.

Authorities:
Local — Regional — Global
P&G communicates with local, regional, andglobal authorities directly, both as an individualcompany and through industry associations.
P&G scientists and legal experts review existingand proposed regulations that are relevant to
the Company and work with authorities toensure that policies take the needs and experience of business into account. This is done via
meetings with the authorities and commentson their position papers and industry position
papers. Activities like these can be very important to ensure that the Company’s needs areunderstood and considered when decisions arebeing made that can influence P&G’s business.

NGOs: Local — Regional — Global
P&G frequently enters into dialogue withnongovernmental organizations (NGOs) to understand their concerns and cares. In order to work
constructively with stakeholders, it is essential tohave their confidence and be seen as a reliable
and open discussion partner. By building an open
relationship, we can approach 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 (fromextreme to moderate), and by their geographic
links (from local to global). Depending on their• Employees & Stakeholders •2020 Goals Chartcharacteristics, a number of NGOs can be seen as
the vocal spokespeople for the general public.
Consumer organizations exist in many countries.
These organizations contact companies tocompare products and voice comments theyreceive from their members. P&G continuously
provides consumer organizations with information on new initiatives and cooperates with themin answering consumer questions.

Consumers
At P&G, we are committed to providing products
and services that can help improve the lives ofour consumers, all over the world. In developing and marketing our products we adopt a“Consumer is Boss” approach, to ensure that wedelight consumers by launching only new products and product improvements that genuinely
meet their needs. Before establishing a project
for a new product or product improvement,
P&G researchers strive to understand consumer
needs, in detail, in order to identify those needs
that are not fully met today.
Once a product is launched, our commitment
to our consumers does not stop there. For
P&G, every individual consumer’s experience inchoosing, buying or using one of our products
can provide vital insights to help us further
improve our products and services. So we
actively encourage consumers to contact our
Global Consumer Relations team. We want tohear about our consumers’ experiences with our
products — both good and bad.

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we are also very aware that consumers’ lives arechanging (we are consumers too!). Over the last
two years we have invested extensively to enable
our consumers to engage with us through social
media, in addition to our established Carelines.
Many of the people in our Global Consumer
Relations team are now responsible for establishing online communities in which consumers can
ask questions about our Company and our products. This has been a huge success, and has
actually enabled us to interact with even more of
P&G’s consumers in the last fiscal year — which
ultimately provided more insights for our
Product Development and Marketing teams tohelp further improve our products and services.
We are also innovating in how we ensure thatthese important insights from our consumers
get to our business teams. Consumers who takethe time to contact a company for advice or ask
for help to resolve a problem provide valuable
insights into our products, which can reallyhelp us to improve our brands. So we need tomake sure 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 business teams 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 feel very privilegedthat consumers care enough about our products
to contact us.

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 — to consumers, but

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

Advertising andPromoting to Consumers
Appropriately
The Company does not permit its
advertising or promotions for its products
to be false or misleading.
P&G’s Worldwide Business Conduct
Standards for Responsible Sales and Marketing
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 truthful statements about our Company and its products
and services. All marketing claims must be
substantiated and live up to their promises.
For additional information, please see
P&G’s Worldwide Business Conduct
Manual available via: www.pg.com/en_US/
company/global_structure_operations/
governance/governance_policies.shtml.

•

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Principles forDeveloping
Environmental
Sustainability Claims
All claims are required to pass through a formal
claims approval process. In addition to thisformal approval process, we have developed
principles to help guide the development ofenvironmental sustainability claims. These principles have been deployed to relevant functions
and include:
1. All 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. Claims must be truthful, data-based anddefensible.

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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. Claims should not exploit environmental
requirements needed for regulatory or legal
compliance.
10. Environmental benefits may be translated
into other indicators that are more telling for
consumers, as long as the translation is basedon factual equivalents and does not exaggerate the benefit the product actually provides.
11. Environmental claims must not be worded ina way that denigrates products not carrying
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.

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 understandingof the claim.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

Sustainability Guidelines
for Supplier Relations
The foundation of our Sustainability
Guidelines for Supplier Relations is ourStatement 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. We expect our suppliers to comply with allapplicable laws of their country, includinglaws relating to employment, discrimination,
environment, and health and safety. Suppliers who knowingly violate laws or haverepeated problems conforming to them will
not receive our business.
2. Commercial bribery is illegal and subject tocriminal penalties in many countries, including
the United States. Any personal payment or
bribe to individuals employed by P&G’s
customers or suppliers — or receipt of a bribeor personal payment by P&G employees —is strictly prohibited. Even in locations wheresuch activity may not, technically speaking,be illegal, it is absolutely prohibited byCompany policy.

•

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Social Responsibility

3. P&G supports universal human rights, particularly those of our employees, the communities within which we operate, and theparties with whom we do business. In ourbusiness award decisions, we will continue
to place substantial value upon incumbent
and potential suppliers who consistently
respect basic human rights.
4. P&G utilizes fair employment practices, striving to provide a safe, healthy and productive
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 the same standards. Specifically:• We will not conduct business with suppliers employing child, prison, indentured,or bonded labor, or using corporal punishment or other forms of mental and physicalcoercion as a form of discipline.
• We expect suppliers to conduct their business without unacceptable worker treatment such as harassment, discrimination,
physical or mental punishment, or otherforms of abuse.
• At a minimum, we expect our suppliers
to comply with all applicable wage andhour laws, and rules and regulations,
including minimum wage, overtime andmaximum hours.
• We expect suppliers to provide a safe work
environment, to prevent accidents and injury,
and to minimize exposure to health risks.

• Employees & Stakeholders •2020 Goals Chart• We 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 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.
Last year, purchasing personnel who interface
with suppliers received forced labor/humantrafficking awareness training. This training
focused on definitions, why it is important tocombat these practices, and what our personnel can do to eradicate it.
• Check: Ongoing periodic performanceassessments are conducted using third-party
auditors. Emphasis is placed on suppliers thatare high risk because of the country of operation or potential hazard. This strengthens ourcompliance program by using professional
auditors while refocusing P&G resources oncollaborating with suppliers on appropriate
corrective actions.

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Our supplier assessment program stems fromour membership in a trade association, AIMPROGRESS, where 23 member companies areworking together to increase the efficiencyof the supplier auditing process. Half of themembers, including P&G, are using a common assessment and data sharing platform
hosted by the Supplier Ethical Data Exchange(Sedex). This approach should lower costs
for our suppliers by allowing them to reapply
others’ audits for P&G and P&G audits forother customers through a mutual recognition
program enabled by following an industry
standardized methodology.
In 2011/2012, our preferred third-party audit
firm continued to conduct assessments of ourhigh-risk suppliers. In addition, P&G conducted
quality assurance assessments of the auditor
company to be sure that they are adequately
trained and following our procedures.
• 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
child labor or forced labor, and egregious
health and safety violations presenting immediate danger to human health. If a complianceissue is not resolved in a timely manner, thebusiness relationship is terminated.
The Sustainability Guidelines for Suppliers
can be downloaded at: www.pgsupplier.
com/en/pg-values/sustainability.shtml.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

Supplier Diversity
Supplier Diversity is a business strategy for P&G
that we have focused on since the mid-1970’s.
When we invest with diverse suppliers, we not
only strengthen our innovation and go-to-market capabilities, but we also touch and improve
the lives of the women and men who work inthese companies — and through them, theirfamilies 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
2011–2012. This is the fifth consecutive year wehave exceeded $2 billion in supplier diversity
spending. P&G is one of just 18 corporations on
the Billion Dollar Roundtable, an exclusive groupof companies that invest a billion dollars a year
or more with minority- and women-owned
agencies, suppliers, or external businesses.

$2B

in spending withminority- and womenowned suppliers•

Products•

Operations•

Social Responsibility

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 misuseof that information. Several countries alreadyhave laws protecting consumers from misuse of
their personal information, and many others arefollowing 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.

• Employees & Stakeholders •2020 Goals Chart•GRI Index

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Externally, P&G has been a strong advocate ofwork within the industry to protect the privacyof consumers. For example, P&G has been aleader in the effort to make privacy notices moreconsumer-friendly and has made our online
marketing statement available in 42 languages.
For more information on P&G’s global
privacy principles, please visit thefollowing: www.pg.com/en_US/sustainability/
point_of_view/privacy.shtml.
P&G adheres to U.S./European Union
Safe Harbor principles and participates in
the Better Business Bureau’s EU Safe Harbor
Program. For more information, visit: www.bbb.
org/us/european-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/online/consumer/cks.
aspx?ID=292000103.
Third-party companies can access our
privacy and security guidelines onwww.pgsupplier.com.

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.

www.pg.com/sustainability

Contents•

Introduction•

P&G Profile

Principal Industry andBusiness Associations
P&G holds membership in many industry, business and environmental associations whose
activities are related to the Company’s. During
fiscal year 2011–2012, these included:

Europe, Middle East and Africa• CEFIC — European Chemicals Industry
Association• COLIPA — Cosmetics & Fragrances Industry• AISE — Association Internationale de la
Savonnerie de la Detergence et des Produites
d’Entretien• ECETOC — European Center for Ecotox and
Toxicology of Chemicals• EUROPEN — The European Organization for
Packaging and the Environment• EU Committee of AmCham• AIM — European Brands Association• EDANA — European Industry of Non-Woven
Products• HAPCO — European Industry of Hygiene
Paper Products•

Products•

Operations•

Social Responsibility• Employees & Stakeholders •2020 Goals Chart

North America

Latin America• American Chemistry Council• CAPA — Argentinean Chamber of Cosmetics& Perfume Industry• American Cleaning Institute• American Legislative Exchange Council• Association of National Advertisers• ALPHA — Argentinean Personal Cleaning
Products Chamber• Business Roundtable• ABIPLA — Brazilian Association of Household
Cleaning Products• Canadian Consumer Specialty Products
Association• ABIHPEC — Brazilian Association of Personal
Hygiene, Perfumery and Cosmetics Industry• Canadian Cosmetic, Toiletry and Fragrance
Association• ABA — Brazilian Association of Advertisers• Canadian Health Products Association• Consumer Specialty Products Association• Consumer Health Products Association• The Council of State Governments• SO — Stewardship Ontario• Food and Consumer Products of Canada• Global Environment Management Initiative• Grocery Manufacturers of America• National Environmental Development
Association• National Governors Association• PFMA — Pet Food Manufacturers Association• Personal Care Products Council• AESP — Association of European SelfMedication Industry• U.S. Council for International Business• CEMPRE — Brazilian Recycling Association• AmCham — Brazilian American Chamber ofCommerce• ANDI — Colombian Association of Industries
and Entrepreneurs•

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• CANIPEC — Mexican Association of the
Cosmetics and Personal Care Industry• AMECE — Mexican Association of Standards
for Electronic Commerce• COMCE — Mexican Council of International
Trade and Investment• CONMEXICO — Mexican Association ofConsumer Goods• AmCham — Mexican American Chamber ofCommerce• SNI — Peruvian Association of National
Industry• CAVEINCA — Venezuelan Association of
Cosmetics• ASOQUIM — Venezuelan Association of the
Chemical Industry• ANDA — Colombian National Advertisers
Association• ANDA — Venezuelan Association of Advertisers• AmCham — Colombian American Chamberof Commerce• CONINDUSTRIA — Industrial Confederation of
Venezuela• CONAR — Chilean Advertising Self-Regulationand Ethics Council

Asia• SOFOFA — Chilean Manufacturers Industry
Association• AmCham — Chilean American Chamber ofCommerce• ANDA — National Advertisers Association Chile• Australia — ACCORD — Consumer, Cosmetic,
Hygiene & Specialty Products Association• Australia — AFGC — Australia Food & Grocery
Council• Australia — APC — Australia Packaging
Covenant• Water Environment Research Foundationwww.pg.com/sustainability

Contents•

Introduction•

P&G Profile• China — AmCham• China — European Chamber of Commercein China• China — Academy of Environmental Science• China — Association of Fragrance, Flavor andCosmetic Industry• China — Daily Use Groceries Association• China — China Society of Toxicology• China — Environmental Health Safety
Roundtable• China — Association of Surfactant, Soap andDetergent Industries• China — Hygiene Supervision Association• China — National Household Paper Industry
Association• China — China Oral Care Industry Association• China — Guangdong Fragrance Flavor
Cosmetic and Laundry Industry Association• China — Guangdong Quality Inspection
Association• China — National Bar Code Association• Hong Kong — The Cosmetic and Perfumery
Association of Hong Kong
• Hong Kong — Hong Kong Suppliers Association• India — Confederation of Indian Industry•

Products•

Operations•

Social Responsibility• Employees & Stakeholders •2020 Goals Chart•GRI Index• India — Federation of Indian Chambers ofCommerce and Industry• Korea — Korea Chemical Management
Association (KCMA)• India — Feminine & Infant Hygiene Association• Korea — Korea Cosmetics Association (KCA)• India — Indian Soap & Toiletries Makers’
Association• Korea — Korea Pharmaceutical Trade
Association (KPTA)• Indonesia — Indonesian Cosmetics
Association (Perkosmi)• Korea — Korea Plastic Recycling Association(KPRA)• Indonesia — US-ASEAN Business Council(USABC) (Indonesia office)• Korea — Korea Battery Recycling Association(KBRA)• Indonesia — Indonesia Advertisers
Association (APPINA)• Malaysia — American Malaysian Chamber ofCommerce (AmCham)• Indonesia — American Chamber of Commerceand Industry (AMCHAM)• Malaysia — MAFMAG — Federation of
Malaysian Manufacturers• Indonesia — Indonesian Importers Association(GINSI)• Malaysia — MICCI — Malaysian International
Chamber of Commerce and Industry

Worldwide• Indonesia — Indonesian Anti-Counterfeit
Association (MIAP)• Malaysia — CTFA — The Cosmetic, Toiletry& Fragrance Association of Malaysia(CTFA-Malaysia)• Consumer Goods Forum• Japan — Japan Cosmetic Industry Association• Japan — Japan Hygiene Product Industry
Association• Japan — Japan Soap and Detergent Association• Japan — American Chamber of Commercein Japan• Korea — American Chamber of Commerce
Korea (AmCham)• Korea — EU Chamber of Commerce Korea(EUCham)• Philippines — Soap & Detergent Association of
the Philippines• Philippines — Cosmetic, Toiletry & Fragrance
Association of the Philippines (CTFAP)

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• Taiwan — Taiwan Paper Industry Association• Taiwan — Taiwan Soap & Detergent Industry
Association• Thailand — F.T.I. — Federation of Thai Industries• Thailand — Thailand Soap & Detergent
Association• Vietnam — Vietnam Cosmetics, Toiletry andFragrance Association• Vietnam — AmCham• Vietnam — Vietnam Chamber of Commerceand Industry• Vietnam — Vietnam Advertising Association• Conference Board• Society of Environmental Toxicology andChemistry• World Business Council for Sustainable
Development• Singapore — The Cosmetic, Toiletry &Fragrance Association of Singapore (CTFAS)• Singapore — US-ASEAN Business Council(USABC) (Singapore (regional) office)• Taiwan — TWCIA — Taiwan Cosmetic Industry
Associationwww.pg.com/sustainability

Contents•

Introduction•

P&G Profile•

Products••

Operations

Social Responsibility•

Employees & Stakeholders•

2020 Goals Chart•GRI Index

76 of 832020 Goals Chart
The following represents a summary ofour 2020 goals, some of which are newly
announced in this report. The products
and operations goals are inspired by ourlong-term environmental vision, which
can be found on page 5.

Products
Renewable Materials

Replace 25 percent of petroleum-based raw materials with sustainably sourced renewablematerials for our products and packaging.*
Confirm that all palm oil purchases have originated from responsible and sustainablesources by 2015.
NEW

Have 100 percent of the virgin wood fiber used in our tissue/towel and absorbent hygiene
products be third-party certified by 2015. Have 40 percent of the virgin wood fiber used in our
tissue/towel products be FSC certified.

NEW

Have 100 percent of our paper packaging contain either recycled or third-party certified virgin
content by 2020.

Waste

Conduct pilot studies in both developed and developing markets to understand how
to eliminate landfilled/dumped consumer solid waste.

Cold Water Washing

Have 70 percent of all washing machine loads use cold water.

Packaging Reductions

Reduce packaging by 20 percent per consumer use.*

Operations
Renewable Energy

Increase use of renewable energy in our plants to 30 percent.
Reduce energy use at P&G facilities and total CO2 (Scope 1 and Scope 2) by 20 percent perunit of production by 2020.*

Manufacturing Waste

Reduce manufacturing waste to landfill to less than 0.5 percent of input materials.

Transportation

Reduce truck transportation by 20 percent per unit of production.*

Social Responsibility
Save One Life Every Hour

Save one life every hour by delivering 2 billion liters of clean water every year.

* vs. 2010 baseline

www.pg.com/sustainability

Contents•

Introduction•

P&G ProfileAwards andRecognition
Recognition: P&G is consistently recognized
as a leading global company, earning a variety
of awards and recognition in areas such as
reputation, leadership, and innovation. Gartner
recognized P&G at #5 on its “Top 25” list of
global Supply Chain Leaders. Our commitment
to creating a diverse workplace has beenrecognized by DiversityInc, Working Mother andthe National Association for Female Executives,
which ranked P&G in its “Top 50 Companies for
Executive Women.”
Sustainability: For the fourteenth consecutive
year, P&G earned a spot on the Dow Jones
Sustainability Index. Corporate Knights ranked
us #66 on its “Global 100 Most Sustainable
Corporations in the World.”•

Products•

Operations•

Social Responsibility•

Employees & Stakeholders•

2020 Goals Chart•GRI Index

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Index
GRI
Indicator

Description

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 – 73

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
65, 77

3. Report Parameters
Report Profile
3.1

Reporting period.

3.2

Date of most recent previous report (if any).

3.3

Reporting cycle (annual, biennial, etc.).

3.4

Contact point for questions regarding the reportor its contents.

2
FY 10–11
Annualsustainrep.im@pg.com

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.

2, 19, 46

3.7

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

2, 19, 46

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.

19, 46

3.9

Data measurement techniques and the bases of calculations.

19

3.10

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

19, 46

3.11

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

GRI
Indicator

Table identifying the location of the Standard Disclosuresin the report.

77 – 82

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

2

4. Governance, Commitments and Engagement•

GRI Index

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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 conflictsof interest are avoided.

16 – 17

4.7

Process for determining the qualifications and expertise of
the members of the highest governance body for guiding theorganization’s strategy on economic, environmental, andsocial 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, 61 – 62,
72

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.

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

4.3

For organizations that have a unitary board structure, state thenumber 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

4.42020 Goals Chart

Commitments to External Initiatives

Assurance
3.13•

Page(s)GRI Content Index
3.12

Employees & Stakeholders

Description

5–6

11

•

16 – 1832
34 – 35, 67,
73, 74 – 75
74 – 75

Stakeholder Engagement
4.14

List of stakeholder groups engaged by the organization.

70, 74 – 75

4.15

Basis for identification and selection of stakeholders withwhom to engage.

70

4.16

Approaches to stakeholder engagement.

60 – 73,
54 – 56

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.

70 – 73

Economic Performance
Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and othercommunity investments, retained earnings, and payments to capitalproviders and governments. (Core)

Employees & Stakeholders

GRI
Indicator

10

EC2Financial implications and other risks and opportunities for theorganization’s activities due to climate change. (Core)

EC3

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

63

EC4

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

N/A

26 – 27, 30,
47 – 48

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

EC6

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

64 – 65

63•

GRI Index

Description

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Page(s)EN1

Materials used by weight or volume. (Core)

46

EN2

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

46

EnergyEN3

Direct energy consumption by primary energy source. (Core)

46 – 47

EN4

Indirect energy consumption by primary source. (Core)

46 – 47

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

38 – 47

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 – 7, 26 – 27,
38 – 47

EN7

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

4 – 7, 26 – 27,
38 – 47

Water
EN8Total water withdrawal by source. (Core)46, 49EN9Water sources significantly affected by withdrawal of water. (Additional)

N/A

EN10

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

N/A

EN11

Location and size of land owned, leased, managed in, or adjacentto, 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)

EN13

Habitats protected or restored. (Additional)

EN14

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

Biodiversity

Indirect Economic Impacts

EC92020 Goals Chart

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)

51 – 59

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

51 – 59

31, 34 – 35

N/A
31, 34 – 35

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/AEmissions, Effluents and Waste
EN16

Total direct and indirect greenhouse gas emissions by weight. (Core)46, 48

EN17

Other relevant indirect greenhouse gas emissions by weight. (Core)46, 48

EN18

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

EN19

Emissions of ozone-depleting substances by weight. (Core)46, 50EN20

NOx, SOx, and other significant air emissions by type and weight. (Core)46, 50

EN21

Total water discharge by quality and destination. (Core)46, 49EN22

Total weight of waste by type and disposal method. (Core)46, 49

EN23

Total number and volume of significant spills. (Core)

EN24

Weight of transported, imported, exported, or treated waste deemedhazardous under the terms of the Basel Convention Annex I, II, III,and VIII, and percentage of transported waste 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 and services,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 number of nonmonetary sanctions for noncompliance with environmental
laws and regulations. (Core)4 – 7, 26 – 27,
38 – 48

50•

Employees & Stakeholders

GRI
Indicator•

2020 Goals Chart•GRI Index

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Description

Page(s)EN29

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

43 – 44

EN30

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

68

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

46, 49Labor / 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, 20 – 28
46, 4950

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)

67 – 68

LA7

Rates of injury, occupational diseases, lost day’s, absenteeism andtotal number of work-related fatalities, by region. (Core)67

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Contents

GRI
Indicator

LA8

LA9

•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility•

Employees & Stakeholders

Description

Page(s)GRI
Indicator

Education, training, counseling, prevention and risk-control programsin place to assist workforce members, their families, or community
members regarding serious diseases. (Core)66, 69Non-discrimination

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

67 – 68

HR4

HR5

Average hours of training per year per employee-by-employee
category. (Core)66, 68LA11Programs for skills management and lifelong learning that support
the continued employability of employees and assist them in managing
career endings. (Additional)

63, 66LA12Percentage of employees receiving regular performance and careerdevelopment reviews. (Additional)

LA14

•

GRI Index

Description

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

63

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

72

Operations identified as having significant risk for incidents ofchild labor, and measures taken to contribute to the eliminationof child labor. (Core)72

Child Labor

63

HR6

Forced and Compulsory Labor
HR7

Diversity and Equal Opportunity
LA13

2020 Goals Chart

Freedom of Association and Collective Bargaining

Training and Education
LA10•

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

65

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

63

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)

72

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)63, 72HR2Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken. (Core)

72

HR3

Total hours of employee training on policies and procedures concerning
aspects of human rights that are relevant to operations, including thepercentage 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

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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)50, 70Corruption
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

16 – 17

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

16 – 17

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)

17 – 18

SO6

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

17 – 18

SO3

SO4

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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)

32

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

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 of surveys
measuring customer satisfaction. (Additional)

70

Marketing Communications
PR6

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

71

PR7

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

N/A

Customer Privacy
N/A

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
and services. (Core)
Note: We do not track this information Globally

N/A

Compliance

Compliance
SO8

GRI Index

Product and Service Labeling

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

PR1

Public Policy

SO72020 Goals Chart

Description

9. Society

SO1•

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

50

PR9

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Contents•

Introduction•

P&G Profile•

Products•

Operations•

Social Responsibility•

Employees & Stakeholders•

2020 Goals Chart•GRI Index

83 of 83

Contact:
E-mail us at sustainrep.im@pg.com
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