2013 Sustainability Report
Executive Summary

About This Publication
This is the 15th year that P&G has reported on its sustainability efforts. This publication provides an executive
summary of the progress we’ve made toward our 2020 goals. Data in this report covers the period from July 1, 2012
through June 30, 2013. Financial information is given in U.S. dollars. To view our full online report, which
was prepared using the Global Reporting Initiative’s (GRI) G3 Guidelines, please visit www.pg.com/sustainability.

P&G SUSTAINABILITY PROGRAM

At P&G, we are focused on making every day better for people and the planet
through how we innovate and how we act. This concept is embedded in theway we operate — ensuring our products are safe, paying competitive wages,
complying with all laws, and treating all individuals with respect. We’ve also found
we have an opportunity to leverage our size and scale to address the environmental
and social issues that affect our business. The chart below outlines the core focus
areas for our environmental and social efforts.

+
Conservation of Resources
Renewable Resources
Worth from Waste

Comforts of Home
Health and Hygiene

A.G. Lafley

CEO Statement

P&G is a company of brands. We earn consumers’ trust withthe promise each of our brands makes to improve people’s lives
and product usage experiences that live up to those promises.
Our success depends on our ability to understand the consumer —who is our boss. It is through deep understanding of consumers
that we gain insights into what they need and want. Sustainability
is an area where we have learned much. People have told usthat they want sustainable products with no tradeoffs. They wantproducts that don’t ask them to pay more or expect less.
We’ve embraced this challenge. P&G brands help people throughout
the world live more sustainably by continually improving productperformance and benefits through innovation and by continually
increasing the levels of conservation and resource efficiency of our
products. For years, Tide Coldwater and Downy Single Rinse havebeen products that deliver outstanding product performance while
also enabling consumers to conserve energy and water.
At a company level, P&G’s environmental efforts are focused onconserving resources, using renewable resources, and finding
innovative ways to recycle or reuse waste from our products andoperations. Our long-term sustainability vision is demanding.
Reaching our vision of 100% renewable energy and zero waste
going to landfill is not going to happen overnight, but we have set
short-term and intermediate goals to ensure we make steadyprogress, which we are doing. For example, more than 50 of ourmanufacturing sites around the world now send zero manufacturing
waste to landfill; we’ve done this, in large part, by partnering with
suppliers to recycle material or convert waste to energy. In addition

Chairman of the Board,
President andChief Executive Officer

to having a positive environmental impact, these efforts havecreated over $1 billion in value for P&G in sales and cost savings.
At a social responsibility level, P&G’s efforts focus on sharing the
comforts of home and improving health and hygiene for people
in need. These are areas where P&G can offer unique value with
our products, our expertise, and our partnerships. P&G’s Children’s
Safe Drinking Water program is a cornerstone of these efforts.
It leverages P&G’s innovative technology to make dirty, dangerous
water clean enough to drink in only thirty minutes. We recently
celebrated six billion liters of water shared around the world, saving
an estimated 33,000 lives.
Due to the ever-increasing importance of sustainability to P&G andto the people we serve, I have named Martin Riant, Group Presidentof Global Baby, Feminine & Family Care, as executive sponsor ofsustainability. He will ensure that the Company’s senior executive
leadership is fully engaged in delivering P&G’s sustainability visionand goals.
Sustainability will continue to be an important componentof P&G’s ability to improve consumers’ lives and to create value
for shareholders.

A.G. Lafley
Chairman of the Board, President and Chief Executive Officer

FINDING THE WORTH IN WASTE

EXEMPLIFYING OUR VISION

By changing the way we see waste — from something thrownaway to something with value — we have achieved zero
manufacturing waste to landfill at 50 P&G sites worldwide.
At these sites, all manufacturing waste is recycled, repurposedor converted into energy. Waste from our Charmin plant in
Mexico is now used to make roof tiles for the local community,
while scraps from a U.S. Pampers site are converted into
upholstery filling. In the U.K., waste from Gillette shaving foam
is composted and used to grow grass for commercial use.
Over the past five years, our work to find worth in waste hascreated over $1 billion in value for the Company. For more
information on how we define zero manufacturing waste tolandfill, please visit www.pg.com/sustainability.

This year, P&G opened our most sustainable site to date —the Taicang Plant and Distribution Center in Jiangsu, China.
Taicang is the first P&G plant in the world to achieve LEEDGold certifications for administration buildings and Silver
for manufacturing sites. Taicang was designed as a “factory
inspired by a garden,” so the plant models many aspects of
our long-term environmental vision. The site runs on 100%
renewable wind electricity, sends zero manufacturing waste tolandfill, and is designed to use significantly less water thansimilar P&G Hair Care production lines in the region. Sustainability
was not only part of the design, but has become part of theplant’s overall operating culture.

Len Sauers
Vice President,
Global Sustainability

When we announced our long-term environmental vision three
years ago, we set goals for 2020 to ensure we were making
measurable progress. Our results to date can be found on thefollowing page. While we are proud of the progress we haveachieved, we know there is still much work to be done.
Some of the highlights from the past year include:• Our Huangpu, China plant partnered with a local utility
supplier to install solar panels on the plant’s rooftop.
This installation will eliminate 600 metric tons of CO2
emissions annually from the local community.
• We’ve continued the global expansion of Tide PODS,
which is one of the most concentrated detergents in themarket and reduces plastic use by 50% per consumer.
• Over 50 of our sites around the world now send zero
manufacturing waste to landfill, including every single oneof our sites in Germany.
• We have helped increase the number of washing machineloads washed in cold water from 38% to 50% since FY10 / 11.
• Our Gillette Venus packaging was redesigned for Venus & Olay
to be recyclable and is manufactured using 26% less plastic.

Leadership Statement• At our Oxnard, California site, we reduced water use bynearly 25%, resulting in a cost savings of over $900,000
on an annualized basis.
• Through our social programs, we have reached our goalof improving the lives of over 50 million people this year.
Many of the challenges that we face in advancing sustainability
are impossible to achieve on our own. Much of this work will
require us to partner with companies, governments, consumers,
NGOs, and academia on common issues and work toward
integrated solutions. We know that long-term, quality partnerships
are critical — specifically in areas where it will take cross-industry
effort to advance goals like 100% renewable energy and zeronet deforestation.
Fortunately, many of the partnerships we’ve forged are alreadyproving powerful. For example, earlier this year, we declared acommitment to work with our suppliers to convert 20% of our
for-hire North American truck loads to natural gas, delivering
cost savings and reducing greenhouse gas emissions by nearly
5,000 metric tons a year — equivalent to 1,000 passenger vehicles.
In the area of renewable resources, we’ve partnered with industry
leaders Coke, Ford, Nike and H.J. Heinz Company to make plastic
polymers and fibers from plants.
Partnerships are also a critical part of our work to make everyday
life better for people around the world. Knowing that thefrequency and intensity of natural disasters is increasing, we have

PARTNERSHIPS FOR EMPOWERMENTTHE PACKAGE THAT HAS IT ALL

P&G hair care brands are partnering with charitableorganizations to improve the everyday lives of people aroundthe world. WELLA Professionals and UNICEF created
Making Waves, which teaches life skills and hairdressing tovulnerable young people in emerging countries. Since 2010,
more than 7,000 young people in Brazil and Romania havebenefited from the program.

We’ve redesigned the Gillette Venus razor packaging for
Venus & Olay to be both cost-effective and better for theenvironment. Made from plastic (PET), recycled plastic (rPET),
and paperboard, it is recyclable and uses 26% less plastic in
the manufacturing process. Packages are now packed more
densely in distribution, generating significant cost savings anddecreasing carbon emissions from transportation. This new
package meets consumer needs, while cutting costs andhelping us make progress toward our sustainability goals.

Pantene Beautiful Lengths is a program that uses hair
donations to produce real hair wigs for women with cancer.
Since 2006, the campaign has received more than 480,000 hair
donations and partnered with the American Cancer Society
to deliver more than 28,000 free wigs. In 2012, the program
was expanded to Australia and New Zealand.

6 billion liters

3,000 employees

5,000 metric tons

50 sitesof clean drinking waterprovided to keep children
and their families healthy

will volunteer this year to build
homes in 12 countriesof greenhouse gas will be
avoided each year by converting
for-hire trucks to natural gas

around the world atzero manufacturing
waste to landfill

partnered to improve the lives of millions of people through ourdisaster relief efforts. When a disaster strikes our communities, ouremployees and our brands are committed to meeting the needs ofthose affected by providing the products we know people havePartnerships are a
critical part of ourwork to make everyday
life better for people
around the world.

come to count on in the everyday moments of their lives. Whether
it’s sharing power for a flashlight and the comfort of clean clothes
after a tornado or sharing life-saving clean drinking water after atyphoon, our brands help ensure families can focus on each otherand on rebuilding their lives. Our partnership with the Red Cross
enables us to respond quickly in areas where the need is greatest.

the world. We know that 100 million people around the world arehomeless and 1.6 million more live in substandard housing, so P&G
employees and brands are aiming to make a small but meaningful
impact in the lives of some of these families in Singapore, theUnited States, Malaysia, South Africa, Poland, Costa Rica, and inmany other countries. In fact, nearly 3,000 employees will
volunteer their time to benefit families in 12 countries around theworld this year.
All of these efforts mark significant progress through partnerships
toward helping people live every day better — and more sustainably.
We look forward to deepening our existing partnerships andforging new ones as we work toward our goals and the futureof 7 billion people.

Len Sauers
Vice President, Global Sustainability

As part of our commitment to provide the comforts of home,
we announced a partnership with Habitat for Humanity to fundthe building, repair, and cleaning of homes for families around

COMING TOGETHER IN TIMES OF DISASTER
Natural disasters are occurring more frequently and having agreater impact on our people, operations, and consumers,
as well as the surrounding environment. When disaster strikes,
P&G brands and employees join together to provide theeveryday products people count on. Our brands help ensurethat families can focus on rebuilding their lives with dignity.
Here are some of the events we responded to this year:• October 2012: Hurricane Sandy was the most destructive
hurricane of the 2012 Atlantic season, hitting theNortheastern United States. P&G responded with oneof our longest deployments to date, sending the Duracell
Rapid Responder, Tide Loads of Hope, and donating

more than 20 truck loads of products like Charmin, Bounty,
Mr. Clean, Dawn and Pampers.
• October 2012: To respond to the Assam floods in India, P&G
donated products such as Whisper, Tide, Pantene, Head &Shoulders and Vicks through our partner Save the Children.
• November 2012: A 7.4 magnitude earthquake shook
Guatemala, causing major damage in several communities.
P&G donated $180,000 in feminine, baby and familycare products.
• December 2012: A typhoon hit the southern Philippines,
affecting over 6.2 million people. Partnering with World
Vision, P&G distributed 140,000 sachets of P&G Purifierof Water to make floodwaters clean enough to drink.

2020 Goals Progress
In 2010 we set ten year goals within our Environmental and Social programs.
This chart reflects our progress toward those goals.

Goal

ENVIRONMENTAL

Progress

Conservation of Resources•Reduce energy use at P&G facilities and total CO2(Scope 1 and Scope 2) by 20% per unit of production
by 2020.*•70% of all washing machine loads are washed incold water.
•Reduce truck transportation kilometers by 20%

per unit of production.*•Reduce packaging by 20% per consumer use.*•Since 2010, we have reduced our energy usage by 8%

and our total CO2 emissions (Scope 1 + 2) by 11% per unitof production.
•Since FY10/11, the percentage of global washing machineloads washed in cold water increased from 38% to 50%.
•Since 2010, we have reduced truck transportation kilometers

by approximately 12% per unit of production.
•Since 2010, we have reduced packaging by ~ 4.5% per

consumer use.
Renewable Resources•Plants are powered by 30% renewable energy.

•Our use of renewable energy is ~ 7.5%. We continue toevaluate and expand our portfolio of energy sources.
•Replace 25% of petroleum-based materials withsustainably sourced renewable materials.*•We have successfully commercialized bioplastic insome shampoo bottles and are moving toward pilot scale
operations for some other key material classes.

•Confirm that all palm oil purchases have originated•13% of our total FY12/13 annual consumption of palm oil, palm

from responsible and sustainable sources by 2015.

kernel oil, and derivatives was RSPO certified via a combinationof Mass Balance and Book and Claim methodology.

•Have 100% of the virgin wood fiber used in our tissue/

towel and absorbent hygiene products be third-party
certified by 2015.
•Have 40% of the virgin wood fiber used in our tissue/•Approximately 97% of our virgin wood fiber was third-

party certified.
•Approximately 9% of our virgin wood fiber was FSC certified.

towel products be FSC certified by 2015.
•Have 100% of our paper packaging contain either

recycled or third-party certified virgin content by 2020.

•We have trained our organization on our new policy

expectations and started outreach with key suppliers.
We will be refining data collection protocols for suppliers
over the next year.

Worth From Waste•Conduct pilot studies in both the developed anddeveloping world to understand how to eliminate
landfilled/dumped solid waste.
•Reduce manufacturing waste to landfill to lessthan 0.5% of input materials.

SOCIAL•Several locations are being evaluated to be the pilot siteof the Waste-2-Worth project in the Philippines.
•Since 2010, we have reduced manufacturing waste to 0.65%

of input materials.

Social Program Goals•Improve the lives of 50 million people each year.

•P&G exceeded this goal for FY12/13, with a focus on providing

the comforts of home and improving health and hygiene forpeople in need.
•Save one life every hour by 2020.

•P&G Children’s Safe Drinking Water program delivered over

1.2 billion liters of clean water this year, and is on track
to meet our goal of “Saving One Life Every Hour” by 2020.
*vs. 2010 baseline

ABOUT P&G
P&G serves approximately 4.8 billion people around the world with its brands. The Company has one of the strongest portfolios oftrusted, quality, leadership brands, including Ace,® Always,® Ambi Pur,® Ariel,® Bounty,® Charmin,® Crest,® Dawn,® Downy,® Duracell,® Fairy,®
Febreze,® Fusion,® Gain,® Gillette,® Head & Shoulders,® Iams,® Lenor,® Mach3,® Olay,® Oral-B,® Pampers,® Pantene,® Prestobarba,® SK-II,® Tide,®
Vicks,® Wella,® and Whisper.® The P&G community includes operations in approximately 70 countries worldwide, and the Company’s
products are sold in more than 180 countries and territories. 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.
2013 NET SALES: $84.2 BILLION
BY BUSINESS SEGMENT (1)

20%

24%

9%
32%

15%

BY GEOGRAPHIC REGION

BeautyGrooming
Health Care Fabric Care andHome Care Baby Care andFamily Care

15%
10%

39%

18%
18%

BY MARKET MATURITY

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

Developed
Developing
39%

61%

(1) These results exclude net sales in Corporate.

RESOURCE AND WASTE SUMMARY
The table below reports environmental statistics for Manufacturing Operations in the Global Business Units, Technical Centers andDistribution Centers.
Totals (absolute units x 1,000)

2013 Global Business Unit Detail (1) (absolute units x 1,000)

2012

2011

Baby Care andFamily Care

BeautyDistribution
Centers

Fabric andHome Care

Grooming

Health Care

Technical
Centers

26,570 25,618

26,021

4,145

2,120

0

18,762

777

766

0

2013

Production (metric tons)
Product Shipped (2)Raw Materials from Recycled Sources (3)

592

618

594

Waste (metric tons)
Generated Waste

949

981

1,013

289

144

28

344

30

98

16

Percent Recycled / Reused Waste

81%

78%

69%

91%

35%

7%

90%

10%

31%

3%

Waste Disposed

180

215

309

28

43

7

85

1

10

7

Solid Waste — Non-Hazardous

133

158

247

18

39

6

57

1

7

5

Solid Waste — Hazardous

19

21

24

0

0

1

14

0

2

2

Effluents (excluding water) (4)

16

23

24

2

3

0

9

0

1

1

Air Emissions (5)

12

13

15

7

1

0

4

0

0

0

Energy Consumption (gigajoules )72,307 72,790

74,38542,2494,183

607

17,340

2,475

2,878

2,575

Direct Greenhouse Gas Emissions (metric tons) (6)

2,767

2,817

3,080

1,915

123

18

534

63

44

71

Total Greenhouse Gas Emissions (metric tons) (7)

5,738

5,808

6,188

3,124

436

56

1,401

232

252

237

Water Consumption (cubic meters )74,320 78,741

80,19043,1457,232

016,892

839

1,798

4,413

2.57

0.003

0.032

0.000

2.453

0.000

0.002

0.000

Disposed Waste (metric tons)

Other

SARA Releases (thousand metric tons) (8)

2.49

2.23

Numbers listed in italics have been updated since the 2012 report was issued. Updates were generally minor corrections based on updated totals. For reference, the data that was
originally reported in 2012 can be accessed via our 2012 sustainability report which is available at www.pg.com/sustainability.
1 metric ton = 1,000 kg = 2,205 lbs.
(1) B eauty includes Hair Care and Personal Beauty Care. Grooming includes Blades and Razors, and Devices. Health Care includes Personal Health Care, Feminine Care andOral Care. Fabric Care and Home Care includes Fabric Care, Home Care, Batteries, 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) Estimated from shipment figures(3) Data is tracked at a corporate level(4) Wastewater chemical oxygen demand (COD)(5) Air emissions include particulates, SO2, NO x , CO, and VOC.
(6) Greenhouse gas emissions resulting from fuel combustion sources.
(7) Greenhouse gases resulting from fuel combustion sources and purchased energy.
(8) Releases defined in the U.S. Superfund Amendments and Reauthorization Act (SARA) by the U.S. Environmental Protection Agency.

©2013 Procter & Gamble