Environmental Sustainability

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ENVIRONMENTAL SUSTAINABILITY

At P&G, environmental sustainability is embedded in how we dobusiness. We have a responsibility to make the world better — throughthe products we create and the positive impact our brands andCompany can have in communities worldwide. We’ve establishedambitious goals to minimize our environmental footprint, to innovatewith the best and safest ingredients from both science and nature,and to create products that make responsible consumption irresistible
for people everywhere.

VIEW HIGHLIGHTS

VIEW MORE STORIESENVIRONMENTAL SUSTAINABILITYHIGHLIGHT

Ambition 2030
2019 marks the one-year anniversary of theannouncement of our Ambition 2030 sustainability
goals. These goals leverage our scale to enable andinspire positive impact on the environment and thefive billion people our brands touch each day aroundthe world. With these goals, we are focused on where
we can make biggest positive difference — our brands,
our supply chain, society and our employees.
People know us through our brands, and we will use
the power of our innovation and our brands to delight
consumers and drive positive impact. In our supply
chain, we will reduce our footprint and strive for circularsolutions. We can impact society by creating powerfulpartnerships that enable people, the planet and ourbusiness to thrive. This includes finding solutions sothat none of our packaging finds its way to the ocean.
And finally, we will tap into our greatest resource, ouremployees, so that they are engaged and equipped
to build sustainability into their daily work andcommunities.

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ENVIRONMENTAL SUSTAINABILITYHIGHLIGHT

Brands Take On Responsible
Consumption
Our leadership brands are working on innovative
programs to create products, solutions and services
that make sustainable lifestyles seamless, while
continuing to offer the value and superior performance
consumers expect from our brands.
The Brand 2030 framework is our next step towardmeeting our Ambition 2030 goal of “100% of ourleadership brands will enable and inspire responsible
consumption.” Our new Brand 2030 criteria areembedded in the Company’s brand growth model andaimed at driving positive impact while creating value
for consumers and our Company.
Ariel
Ariel Europe is striving to make all its packaging
recyclable by 2022 and to reduce plastic packaging
by 30% by 2025. The first step was to convert their
SUD tubs to light-weight bags, starting in the UK as ofJuly 2019, saving 75% plastic. Additionally, the brandannounced in September 2019 to increase its PCR in
Ariel bottles from 25% to 50% across Europe starting in
the first quarter of 2020.
Pampers
Pampers keeps innovating toward more sustainablediapering solutions in an effort to use 30% less1
diapering materials per baby over their diapering
time. Using innovation and more effective materials,
the brand has already reduced the average weightof its diapers by 18%2 in the past three years, with thesame trusted dryness. Additionally, Pampers is leading
cutting-edge recycling efforts for all brands of diapers
and wipes, not just Pampers, with a commitment tolaunch recycling operations in three cities by 2021. 3

1 Vs. a typical disposable diaper
2 Comparison of Pampers diapers sold in Western Europe 2019 vs. 2016
3 The recycling technology was invented by Fater, a JV of P&G and Angelini(which makes Pampers in Italy).

ENVIRONMENTAL SUSTAINABILITYHIGHLIGHT

Reduce, Reuse, Recycle
Our goal is to have 100% recyclable or reusable
packaging by 2030. In April 2019, we elevated thatcommitment to reduce global use of virgin petroleum
plastic in our packaging by 50% by 2030.
This is an ambitious goal we will achieve via lightweighting, increasing our use of recycled plastic,
driving conversion to more concentrated productforms, and when it makes sense, using alternative
materials. We estimate this will avoid the use of morethan 300,000 tons of virgin plastic.

100%
of our packaging
will be recyclable
or reusable by 2030.

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ENVIRONMENTAL SUSTAINABILITYHIGHLIGHT

Testing Reusable Packaging
Loop, a partnership with TerraCycle, is a global circular
shopping platform designed to eliminate waste. Using
the age-old “milkman” concept, participants purchasea variety of household products — including Tide, Ariel,
Cascade, Febreze and Pantene — in durable, refillable
packaging conveniently delivered straight to theirdoorstep. Once empty, Loop collects and cleans the
packaging to be put back into circulation for reuse.

P&G was the first consumer
products company to partnerwith international recycling leader
TerraCycle in the Loop program.

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ENVIRONMENTAL SUSTAINABILITYHIGHLIGHT

Joining Forces to End
Plastic Waste
In 2019, we joined forces with more than 40 companies
that make plastic, use plastic in their products andpackaging, and those who recycle and manage plastic
waste to form The Alliance to End Plastic Waste.
P&G CEO David Taylor took the lead to serve as thefirst Chairman of the new Alliance, a not-for-profit
organization that plans to invest $1.5 billion
over the next five years to help end plastic waste in
the environment.
Research shows that nearly 80% of the plastic in
oceans begins as litter on land, the vast majority ofwhich travels to the sea down one of ten major rivers
around the world. Many of these rivers run throughdensely populated areas that lack suitable waste
collection and recycling infrastructure. The Alliance issupporting an array of projects and partnerships that
focus on solutions in four core areas: infrastructure,
innovation, education and cleanup, with particularemphasis where the need is most urgent inSoutheast Asia.

The Alliance is the foremost CEO-driven
international organization focused on bringing
together industry, government, communities
and civil society in the fight to end plastic waste.

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ENVIRONMENTAL SUSTAINABILITYHIGHLIGHT

Protecting Water for People
and Nature
Pressure on water resources is increasing in many
regions across the globe. Urban populations are
growing, demand is outpacing the water supply, andwater quality is a recurring issue. We recognize thisis a complex issue that requires collaboration acrossprivate, public and civil society to solve.
The 50 Liter Home Concept, spearheaded by P&G,
brings together companies, policy makers, influencers
and communities to develop and scale innovations
for the home that help solve the urban water crisis
and, at the same time, address household energy
consumption and associated GHG emissions.

Major cities around theworld face the prospectof a water crisis.

ENVIRONMENTAL SUSTAINABILITYHIGHLIGHT

Impacting Climate Change
P&G achieved a significant 2020 sustainability goal
ahead of schedule. We are proud to share that weare purchasing 100% renewable electricity in the U.S.,
Canada and Western Europe. These three markets areamong our largest and represent more than 70% of ourpurchased electricity, signifying a strong start to P&G’s
Ambition 2030 goal of purchasing 100% renewableelectricity globally by 2030.

We are now
purchasing100%
renewable electricity in the U.S.,
Canada and Western Europe.

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ENVIRONMENTAL SUSTAINABILITY

Environmental Sustainability
Message from Virginie Helias

Water-Efficient Products

2020 Environmental Goals Progress

Trust and Transparency at the Core

Protecting Water for People
and Nature
Reinventing Water for Urban Living

Environmental Progress versus
2010 Baseline

BRANDSSUPPLY CHAINEMPLOYEESSupply Chain
Employees
ClimateBrand 2030

Tracking Our Progress
Responsible Forestry

Ambitious Packaging Goals

Awards and Recognitions
Palm Oil

New Packaging that
Changes the Game
Reclaiming Plastic andGiving it a New Life
Loop Tests Refillable,
Reusable Packaging

Water
Waste

SOCIETY
Creating Circular Economies

Closing in on Our
2020 Packaging Goals
Responsible Consumption
for Energy Savings

Keeping Plastic Waste outof the Environment
Responsible Consumption

Environmental Resourceand Waste Summary
Global Measurement andAdditional Operational Data

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ENVIRONMENTAL SUSTAINABILITY

Message from
Virginie Helias
Chief Sustainability Officer“At P&G, sustainability is embedded in how we do business —and has been for a very long time. In fact, 2019 marks the20th anniversary of our environmental sustainability report.
While the report’s name and design has changed over theyears, one element has always remained the same — ourcommitment to make the world better through the products
we create and the positive impact our brands can have incommunities worldwide.
2019 also marks the one-year anniversary of our Ambition 2030
sustainability goals announcement. When we designed thesebold commitments, our intent was to leverage our scale toenable and inspire positive impact on the environment andthe five billion people our brands touch each day around theworld. Although there is much to do, I’m proud to say we are
already making great progress.
We are progressing with the development of innovations
and products that make responsible consumption a reality
for people everywhere. We are reducing our footprint andstriving for circular solutions. We’re actively engaging industry,
governments, civil society groups and academics to forge
new paths and create breakthrough solutions that drive
the greater good. Our employees are staying focused andbuilding sustainability into their work each and every day
to have a positive impact on the environment and thecommunities we serve.
All of this work together will have a tremendous impact toadvance solutions against some of the world’s most complex
and challenging issues. I believe that we can truly be a force
for good and a force for growth. I am inspired by our ongoing
efforts and optimistic for a bright future.”

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ENVIRONMENTAL SUSTAINABILITY

2020 Environmental Goals Progress
As we approach 2020, we have made significant progress against the goals we set in 2010 around climate, water
and waste. As we are well on our way to achieving these goals and closing out 2020, we are raising the bar witheven bolder commitments called Ambition 2030.

Reduce energy use at P&G facilities by 20%
per unit of production by 2020

CLIMATE

Achieved — 21% reduction per unit ofproduction

Reduce absolute GHG emissions by 30% by 2020

We have reduced absolute
GHG emissions by 25%

Ensure 70% of machine loads are low-energy cycles

Achieved — 70% of loads are low-energy

Have 100% of the virgin wood fibers used in our tissue/
towel and absorbent hygiene products be third-party
certified by 2015

Achieved — 100% third-party certified

Reduce truck transportation kilometers by 20% per unitof production
Achieved — reduced kilometers
by more than 25%

Ensure plants are powered by 30% renewable energy

13% of energy is from renewable sources
Note: New renewable electric purchases
beginning July 2019 will be included in next
year’s report, helping exceed this goal.

Implement palm oil commitments
We continue to advance progress in our three-pillar
strategy: supplier management, smallholder programand industry influence

Create technologies by 2020 to substitute top
petroleum-derived raw materials with renewablematerials as cost and scale permit
We have developed the ability to substituteour top petroleum-derived raw materials(resins, cleaning agents and acrylates) withrenewable materials

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ENVIRONMENTAL SUSTAINABILITY

2020 Environmental Goals Progress
Provide 1 billion people with accessto water-efficient products

WATER
Achieved — 1 billion people with access towater-efficient products

100% zero manufacturing waste to landfill by 2020

WASTE

92% of our manufacturing sites are ZMWTLReduce packaging by 20% per consumer use

We have reduced packaging
by approximately 14% per consumer use

Ensure 90% of product packaging is either
recyclable or programs are in place to create the ability
to recycle it
We have achieved 88% and have strong,ongoing effort to further increase recyclability

Reduce water use in manufacturing facilities by 20% perunit of production with conservation focused on waterstressed regions
Achieved — 27% reduction per unitof production

Have 100% of our paper packaging contain either
recycled or third-party-certified virgin content by 2020
99% of the volume reported
by our suppliers was either recycled or thirdparty-certified virgin content

Double use of recycled resin in plastic packaging
We used approximately 45,100 metrictons of post consumer resin (PCR) in ourplastic packaging, getting us 73% of theway to our goal

Conduct pilot studies in both the developed anddeveloping world to understand how to eliminate
landfilled/dumped solid waste
We continue to make progress
implementing a variety of pilot projects withexternal partners

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ENVIRONMENTAL SUSTAINABILITY

Environmental Progressversus 2010 Baseline
With our operations, we strive to grow responsibly, constantly improving our efficiency
while reducing our global footprint. Global production has increased since 2010,however wehave successfully decoupled that growth from our environmental footprint, achieving bothabsolute and production-adjusted reductions in waste, water, energy and GHG emissions.

GHG

Energy

Waste

Water

Renewable
Energy

25%

21%

92%

27%

13%

25% absolute reductionof green house gas
emissions

21% reduction perunit of production

92% of our
production sites are
zero manufacturing
waste to landfill

27% reduction per unitof production

13% of energy is fromrenewable sources

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ENVIRONMENTAL SUSTAINABILITY

BrandsUse the power of innovation and our brands todelight consumers and drive positive impact.
• 100% of our leadership brands will enable and inspire
responsible consumption.
• 100% of our packaging will be recyclable or reusable.
• We will reduce global use of virgin petroleum plastic in our
packaging by 50%• We will build even greater trust through transparency,
ingredient innovation and sharing our safety science.

ENVIRONMENTALSUSTAINABILITYINTRODUCTIONETHICS & CORPORATE RESPONSIBILITYCOMMUNITY IMPACT

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BRANDS

Brand 2030
Brands Enable Responsible
Consumption
Most consumers are not willing to compromise
performance for sustainable lifestyles and expect
brands to take action in solving some of the mostcomplex challenges facing the world. In fact, 9 out
of 10 consumers feel better about purchasing a brandthat supports a social or environmental cause andmore than half of those consumers expect it. P&G
and its brands have the opportunity to not only
create products that offer superior performance, but
promote conversations, influence attitudes, change
behaviors and drive positive impact on society andthe environment.
Brand 2030 is the Company’s next step toward“Consumers today expect brands
to take meaningful action insolving some of the most complex
challenges facing the world. This is
why P&G is focused on reinventing
brands to be a force for good anda force for growth. We want ourbrands to be growing and creating
value while having a measurable,
long-term, positive impact on society
and the environment.”

meeting its Ambition 2030 goal of “100 percent of ourleadership brands will enable and inspire responsible
consumption.” Our new Brand 2030 criteria areembedded in the Company’s brand growth model andaimed at driving positive impact while creating value
for consumers and our Company.
To do that, we have asked each brand to implement
four Brand Fundamentals and one brandspecific Ambition, ensuring a thorough long-term
integration of meaningful and measurable social andenvironmental impacts brand strategy and experience
versus only an initiative.
In FY18/19, we trained all leadership brands on therequirements and in FY19/20, we will finalize our
tracking and reporting process. As our journey will takeus through 2030, our intent is to regularly review thesecriteria and update them as science, stakeholder views,
and our own experience evolves.

MARC PRITCHARD,
Chief Brand Officer

The Brand 2030 framework
is our next step towardmeeting our Ambition 2030 goalof “100 percent of our leadershipbrands will enable and inspire
responsible consumption.”

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ENVIRONMENTAL SUSTAINABILITY

BRANDS

Brand 2030 — The Fundamentals
1) Product and Packaging Innovation• Ariel Europe is striving to make all its packaging

Brands will need to innovate to enable
responsible consumption:by 30% by 2025. The first step was to convert their• A meaningful impact in the brand’s key
environmental impact area (e.g. water,
raw materials)• 100% of packaging will be recyclable
or reusable• A meaningful increase in responsibly
sourced bio-based or recycled or moreresource-efficient materials

recyclable by 2022 and to reduce plastic packaging
single-use dosage (SUD) tubs to lightweight bags.
This started in the UK and as of July 2019, has saved
75% of plastic. Additionally, the brand announced
in September 2019 plans to increase its PCR in Ariel
bottles from 25% to 50% across Europe starting in thefirst quarter of 2020.
PRESS RELEASE: PL ASTIC REDUCTIONPRESS RELEASE: PCR INCREASE• Pampers keeps innovating toward more sustainablediapering solutions in an effort to use 30% less1
diapering materials per baby over their diapering
time. Using innovation and more effective materials,
the brand has already reduced the average weightof its diapers by 18% in the past three years, with2

the same trusted dryness. Additionally, Pampers is
leading cutting-edge recycling efforts for all brandsof diapers and wipes, not just Pampers, with a2) Brand Communication
Brands leverage their voice in communication
and advertising production to promote socialand environmental sustainability•A riel is using its voice to help shape a future ofequals through campaigns like “Partage des Taches”
in France and “Share the Load” in India, which
support the idea of men and women equally sharing
housekeeping tasks. In addition, it is promoting towashing in low temperatures in its recent WWF Earth
Hour pledge in the UK.

SHARE THE LOADPARTAGE DES TACHES• In partnership with UNICEF, Pampers hashelped eliminate maternal and neonatal
tetanus in 24 countries. In March 2019, one morecountry — Chad — now eliminated this disease.
These efforts have resulted in an estimated 880,000

commitment to launch recycling operations in three

newborn lives4 saved since 2006.

cities by 2021. 3•S everal of our leadership brands are using their voice•B rands like Tide, Ariel, Cascade, Febreze andto raise awareness for the ocean plastic challenge.

Pantene are participating in Loop, a global circular
shopping platform designed to eliminate waste bytransforming the products and packaging of everyday
items from single-use to durable, multi-use, featurepacked designs.

Fairy and H&S have produced more than four million
bottles made of ocean plastic.
1 Versus a typical disposable diaper
2 Comparison of Pampers diapers sold in Western Europe 2019 versus 2016
3 The recycling technology was invented by Fater, a JV of P&G and Angelini(which makes Pampers in Italy).
4 Based on WHO and UNICEF estimated figures as of Feb 2019

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ENVIRONMENTAL SUSTAINABILITY

BRANDS

Brand 2030 — The Fundamentals
3) Transparency

4) Supply Chain Impacts

Brands are transparent about ingredientsand share the their safety science.

Brands reduce supply chain impacts,
including responsible sourcing of priority
materials. Manufacturing sites are on
track to meet the Company’s Ambition
2030 goals.

•H erbal Essences is leading the way in sharing
comprehensive information about its ingredients,
transparently explaining their four-step safety process
and being recognized by PETA as a cruelty-free brand.
Herbal Essences bio:renew is the first global hair carebrand to have its botanicals endorsed by the Royal
Botanic Gardens at Kew, a world-leading authority
on plants.
INGREDIENT TRANSPARENCY

EWG VERIFIED

FOUR-STEP SAFET Y PROCESSPETA CRUELT Y FREE BRAND

KEW•A s of 2019, SK-II is produced with 100% purchased
renewable electricity, dramatically reducing
manufacturing CO2 emissions. SK-II also recirculates
more than 20% of the Pitera wash water back into
the process by treating it to drinking water quality.
In addition, the latest production facilities for SK-II
were LEED Silver certified under the new LEED v4
standard, the first manufacturing site in Japan toachieve this honor.
•B ounty and Charmin are committed to responsible
sourcing, ensuring 100% of the virgin wood pulp
we purchase is third-party certified by one of our
accepted forest certification systems. In addition,
the our manufacturing sites for these brands
have reduced their energy use by 25% and water
consumption by 29% since our 2010 baseline,

To learn more about our product safety standards, see:
TRUST AND TRANSPARENCY

helping reduce not only our footprint but thatof our consumers as well.

Herbal Essences bio:renew
is the first global hair carebrand to have its botanicals
endorsed by the Royal
Botanic Gardens at Kew,a world-leading authority
on plants.

ENVIRONMENTAL SUSTAINABILITY

BRANDS

RECLAIM

When P&G announced our Ambition 2030 sustainability goals in April 2018, we included
several goals for packaging, including 100% recyclable or reusable packaging by 2030.

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RECYCLE50%In April 2019, we’re making an additional company commitment: P&G will reduce global
use of virgin petroleum plastic in our packaging by 50% by 2030. This is an ambitious
goal we will achieve via light weighting, increasing recycled content, driving conversion tomore concentrated product forms (eg. Tide Pods), and when it makes sense, using
alternative materials. We estimate this will avoid the use of over 300,000 tons of virginplastic used every year.

Ambitious Packaging Goals
Our Ambition 2030 Goals• Achieve 100% recyclable or reusable

COLLECT

Reduction in global
use of virgin petroleum
plastic packaging
by 2030.

Our brands are making our packages with a next life in mind and continuously
innovating with recycled plastic (PCR) to reduce our environmental footprint.

packaging by 2030
• Reduce our use of virgin petroleum plastic

P&G Fabric Care Brands (Europe):

P&G Fabric Care Brands (North America):in packaging by 50% by 2030
We’ll achieve this via light weighting, increasing

50% PCR

recycled content, driving conversion to more

50% PCR

25% PCR+99%

100%
RECYCLABLE
by 2023

Recyclable by 2023

concentrated product forms and, when it makes sense,using alternative materials. We estimate this will avoid
the use of more than 300,000 tons of virgin plastic.

Ariel
Bottles

Lenor Bottles(Core Business)

Unstopables
Bottles

Fairy Dishwashing Liquid (Europe):

Single Unit Dose
Packaging (Tide and Gain)

P&G Hair Care Brands (Europe):

25% PCR

25% PCR

Clear Bottles

Head & Shoulders

P&G Home Care Brands (North America):

35% PCR

Dawn Clear Bottles

All North America
Fabric Care Packaging

25% PCR

Mr. Clean

Fairy Ocean Plastic Bottles:

3.2MM
Over 3 million bottles in the UK, Germany, Spain, Belgium, Turkey

25% PCR

Pantene

25% PCR

AussieP&G Home Care Brands (Europe):

70% PCR

Mr. Proper
and Viakal

20% PCR

Today

2020

Head & Shoulders Beach Plastic Bottles:

1MM
Over 1 million bottles produced around the world since 2017

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ENVIRONMENTAL SUSTAINABILITY

BRANDS

New Packaging that
Changes the Game
There are many pilot projects underway to develop and test new products and new
packaging solutions that will accelerate our progress and bring us closer to our global goalof reducing plastic waste.
Tide Eco-Box

Olay Strip It

Tide introduced this e-commerce solution in 2018 to

To reduce plastic, four young engineers in our Bangkok

reduce weight and the amount of plastic used in the

Plant came up with #OlayStripIt, carton perforations

package. Its re-engineered formula gives consumers

framing the Olay logo that would clearly show if

more cleaning per drop than Tide Original liquidanyone had tried to open the package prior to sale.

detergent in a shipping-safe package made with

It’s estimated this simple innovation will eliminate

60% less plastic.

8,000kg of plastic.

Olay Refillable Pod
Olay is the first mass retailskincare brand in the U.S.
to test refillable packaging,offering its best selling Olay
Regenerist Whip moisturizer
with a recyclable refill pod
that fits right in the jar. The
online test kicked off in North
America in October 2019.

ENVIRONMENTALSUSTAINABILITYINTRODUCTIONETHICS & CORPORATE RESPONSIBILITYCOMMUNITY IMPACT

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Reclaiming Plastic andGiving It a New Life
Each year, upwards of eight million tonsof plastic waste end up in rivers, lakes
and oceans. For several years, we have
has teamed up with an innovative waste
management company, TerraCycle, to create
recyclable shampoo, conditioner and dishwashing bottles made of plastic removed
from beaches and waterways. Organizing
beach cleanups and partnering with retailers
around the world to feature the bottles helps
bring awareness to the issue of plastic waste
and encourages people to reduce, reuse
and recycle.

• In the UK, Head & Shoulders and ASDA created instore awareness of the Head & Shoulders shampoo
bottles that now contain up to 25% post-consumer
recyclate plastic. Because milk bottles are one of
ASDA’s highest-selling products, Head & Shoulders
launched its bestselling formula with new artworkwith the simple message—“part of me was a recycled
milk bottle” to communicate the real difference
shoppers and brands can make by taking action
on recycling.
• In partnership with the Tokyo 2020 Organizing
Committee and the International Olympic
Committee (IOC), we kicked off the Podium Projectin June 2019. The Olympic Games winners’ podiums
will be created from recycled materials — andconsumers can directly contribute. Retail partner

Giving Packages and Products a New Life

AEON WELCIA Group will encourage shoppers tobring their used plastic back to the store in collection• In the U.S. in February 2019, Gillette and TerraCycle

bins. The goal is to collect 1.5 million pieces ofannounced for the first time in the U.S. that all brands

plastic packaging consisting of polyethylene andof disposable razors, replaceable-blade cartridge

polypropylene from Japanese consumers tounits and razor plastic packaging are recyclable on a

produce recycled plastic resin.

national scale. Through the partnership, consumers
are invited to recycle their razors in three ways: theat-home recycling program, local recycling drop-offs
and the Gillette On Demand recycling program.

• We will unveil the podiums at the Tokyo 2020

packaging and educational materials to explain andofficially launched the “Plastic-Free Campaign” withand the overall importance of sustainability.

stores, collecting plastic to upcycle into meaningfulproducts such as traffic safety reflectors for children.

COLLECTto recycle the podiums once again to create newpromote the Olympic and Paralympic movements

them to install plastic collection boxes at Emart

RECLAIM

Olympic Games. After the games conclude, we plan

• In April 2019, P&G Korea, led by Febreze and Oral-B,
local retailer Emart and TerraCycle. We worked with

MAKE

RECYCLE21

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ENVIRONMENTAL SUSTAINABILITY

BRANDS

Reclaiming Plastic andGiving It New Life
Bottles Made from Discarded Plastic

Beach Clean-Ups

Fairy Ocean Bottle• In the UK, we joined with Tesco and Keep Britain Tidy

Fairy debuted an Ocean Bottle across Europe

to rally UK shoppers to help clean up beaches acrossproducing more than 3 million ocean bottles madethe country after the summer season. “The Big Beachwith 100% recycled plastic — 10% of it collected from

Clean” invited shoppers to take action and nominate

beaches and oceans.

their favorite beaches to be one of 10 clean ups

Head & Shoulders Surpasses One Million
Beach Bottles
Since its introduction in 2017, Head & Shoulders has
produced more than 1 million bottles made withrecycled beach plastic in more than 10 countries in
Europe and Latin America.
Japan’s Joy Introduces Ocean Plastic Bottle
P&G Japan’s iconic dish care brand, Joy, introduced
a limited edition hand dish wash detergent bottle
made with 25% ocean plastic sourced, recycled andmanufactured entirely in Japan.

across the country. Alongside this, in support of thecampaign, a combined team of employees from P&G
and Tesco went to the UK countryside to clean up
discarded plastic. With one team combing the beachat Landguard Point and one riverside at the River
Colne, the teams collected dozens of bags of litter.
• In Spain, we partnered with CARREFOUR and Paisaje
Limpio to clean local beaches and organized aroundtable discussion with reps from the Company,
CARREFOUR and Influencer Calleja to discuss thejourney behind this effort and the importance ofdriving responsible consumption.

Herbal Essences
To celebrate World Water Day in March, Herbal
Essences teamed up with TerraCycle to launch threelimited-edition collections in their bio:renew lineup:Sea the Change, Love the Shore and Waves of Change.
The recyclable shampoo and conditioner bottles weremade of 25% beach plastic and available at selectTarget stores through June 2019.

Volunteers
help clean local
beaches in Spain.

ENVIRONMENTALSUSTAINABILITYINTRODUCTIONETHICS & CORPORATE RESPONSIBILITYCOMMUNITY IMPACT

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BRANDS

Loop Tests Refillable,
Reusable Packaging“Loop aims to not just eliminate theidea of packaging waste but greatly
improve the product experience andthe convenience in how we shop.”Through Loop, consumers order household products
online such as Tide and Febreze, foods like HaagenDazs and Tropicana juice, or beauty icons Pantene
and Herbal Essences, all of which arrive in new, durable,
refillable containers in a reusable shipping totethat eliminates the need for cardboard boxes. Once
consumers are done with their products, they simply

TOM SZAKY
CEO, TerraCycle
Residents in New York and Paris can now get theirfavorite home and personal care products in durable,
refillable and reusable containers collected andreturned to their doorstep. Announced in January
2019, we were the first consumer products company topartner with international recycling leader TerraCycle
in the Loop program. Some of our brands participatingin the Loop test markets in Paris and New York include
Tide, Ariel, Cascade, Crest, Pantene, Herbal Essences,
Pampers, Always, Oral-B, Gillette, Venus and Febreze.

put the empty containers back into the tote and use
a dedicated website to request a pick up directly fromtheir home. The durable containers are then cleaned,refilled and reused.

“Loop gives us the opportunity totest and learn what a refill andreturn business model must deliverin order to make it a truly scalable,
sustainable proposition. We are alsousing this test to see how ‘collectand recycle’ operations for usedrazor blades, diapers and toothbrushheads can be optimized.”
VIRGINIE HELIAS
Chief Sustainability Officer

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ENVIRONMENTAL SUSTAINABILITY

BRANDS

Closing in on Our 2020
Packaging Goals
Doubling Our Use of PCR
Our goal was to double the use of PCR versus ourbaseline level of 26,000 metric tons. This year, weused approximately 45,100 metric tons of PCR in ourplastic packaging, which represents an increase of
approximately 73% versus baseline and puts us on
track to hit our goal.

materials. One example is our leadership in the Material
Recovery for the Future (MRFF) initiative to recoverand recycle films via curbside collection. MRFF is being
demonstrated at scale in the J.P. Mascaro & Sons Total
Recycle material recovery facility in Pennsylvania. With
this program in place, we will exceed our goal of 90% of
our packaging being recyclable.
As we have now declared our Ambition 2030 goal of

Ensure That 90% of Our ProductPackaging is Recyclable or That
Programs are in Place to Create theAbility to Recycle Themgetting to 100% recyclable or reusable packaging,

For purposes of tracking progress against our goal,is different than the scope of our current 2020 goal,a package is considered recyclable when there isresults reported next year may differ from current

an in-market, at scale recycling system in place forresults. The largest factor will be that our 2030 goalthat material type. This includes collection, sortation,

focuses on consumer packaging, as this is what

processing for end use and an established end

we believe is most meaningful to drive the change

market for collected material. Using this definition,necessary in our industry. Packaging that ships to ourapproximately 88% of our packaging would becustomers, which is primarily corrugated boxes thatconsidered recyclable today. This relatively high value

are readily recyclable and recycled, will no longer be inreflects the fact that the vast majority of our current

scope of our tracking such that we expect our reported

packaging is made from materials and forms that arerecyclable or reusable values to be lower next year.

readily recyclable (e.g., corrugated boxes, cartons, highdensity polyethylene [HDPE] bottles and polyethylene
terephthalate [PET] bottles).
Difficult-to-recycle materials including films, resins
not readily collected by curbside programs andmixed material packaging continue to be our biggest
opportunity. We partner with other organizations in
the recycling value chain to find solutions for thesethis will be the last year we report separate progressagainst our 90% target. Going forward, we will simply
report against our 2030 objective of 100% recyclable
or reusable packaging. As the scope of our 2030 goal

Our use of PCR has
increased 73% versus
our 2010 baseline.

25

ENVIRONMENTAL SUSTAINABILITY

BRANDS

Closing in on Our 2020
Packaging Goals
Reduce Packaging by 20% per
Consumer Use by 2020

Summary of Resin Usage in Plastic
Packaging

Our goal is to reduce packaging by 20% per consumer

In FY18/19, we used approximately 714,000 metricuse by 2020 versus our 2010 baseline. In FY18/19, wetons of plastic packaging. Of this, 45,100 metric tons

achieved a 14% reduction per consumer use, whichwere post-consumer resin. Resin types and packaging

is off our glide path for our 2020 goal. We continue toformats are summarized below.

experience market-driven headwinds that are impeding
progress against our goal. In some key markets,
customer requests for smaller case counts increased
the amount of corrugate usage per consumer use of
product. We also shifted some products to smaller sizes
to better meet consumer needs, which increased theamount of packaging per consumer use.
However, through our ongoing focus on packaging
efficiency and several packaging design breakthroughs,
we were able to offset these headwinds and deliver a

Resin Type

Percent

PE

44%

PET

31%

PP

13%

Other

22%

14 % reduction versus our 2010 baseline. While wewill continue our efforts, we do not expect to makemuch further progress in the next year and do not
anticipate hitting this goal in 2020, we are excited that
we reduced the amount of packaging that we would
have used annually by more than 250,000 metric tons.
We also recognize that increased use of corrugate,while impeding progress against our goal, represents
a material and packaging type that is recycled atvery high rates, has a very high recycle content andis renewable.

Package Type

Percent

Rigids (e.g., bottles, caps, tubs,
thermoform, injection molded

55%

parts)
Flexibles (e.g. pouches, bags,
wraps, sachets)
Others (tubes, jars)

43%
2%

Our ongoing focus onpackaging efficiency andseveral packaging design
breakthroughs helped us
deliver a 14% reduction
in packaging versus our2010 baseline.

26

ENVIRONMENTAL SUSTAINABILITY

BRANDS

Responsible Consumption
for Energy Savings
The energy used during the machine
washing of laundry is one of the biggest
impacts on our corporate greenhouse gas(GHG) emissions footprint and, as such,
we have focused on innovating to enableconsumers to get clean clothes using lessenergy. In 2010, we set a goal to turn 70%
of all washing machine loads into energyefficient cycles by 2020. We are thrilled
to report that this year, we reached ourgoal — one year ahead of schedule.

Ariel UK and World Wildlife
Fund Pledge to “Turn to 30⁰”
Ariel has been at the forefront of driving consumer
behavior change when it comes to washing at cold
temperatures with our long-running “Turn to 30⁰”
campaign. Ariel once again partnered with WWF UK
to encourage people to take simple, everyday actions
to protect the planet, one of which was “turn washingtemperatures down to 30⁰.” For every pledge madewith #VoiceForThePlanet, Ariel donated £1 to WWF
UK. During March and April, WWF UK saw a large
number of pledges made across the country.

We define low-energy washing as 0.4 kWh or
below per cycle. This accounts for cold waterand low-temperature cycles as well as most highefficiency (HE) machine cycles. We knew we couldn’t
achieve this alone; machines are more efficient andWe aim to reinvent a clean that
redefines green, saving 50% of ourresources, including the energy
used for doing the laundry.

Even after reaching our sustainability goal of 70% of

Ariel’s “Turn to 30⁰” in the
UK donated £1 to WWF UK
for each of pledges made.

wash loads occurring in energy-efficient wash cycles,
we will continue to enable energy efficiency whilewashing. As part of our Ariel 2030 Brand Ambition,
we aim to reinvent a clean that redefines green,

consumers are savvier than ever about their watersaving 50% of our resources, including the energy

and energy use. We continue to partner with top

used for doing the laundry. We want to continue towashing machine manufacturers globally to help

educate and enable more energy-efficient washingeducate consumers about the benefits of quick

Tide #QuickColdPledge

cycles by lowering the average temperature ofmore than six million informational packets globally

Tide has been urging people to take theto new machine purchasers.

#QuickColdPledge and turn their washing machine

environment but also help consumers save on theirand cold-water washing cycles and have distributed

to the quick and cold cycles to lighten our impact on
the environment. About 80% of a washing machine’s
energy consumption comes from heating the water.
By delivering a superior performance in quick and cold
cycles, Tide helps people get the clean they need whilesaving time, money and energy.

household washing globally. This will not only help theenergy bills and better protect their clothes, giving
clothes a longer life and keeping garments out of
the landfill.

27

ENVIRONMENTAL SUSTAINABILITY

BRANDS

Water-Efficient Products
We Provided More Than One
Billion People with Access to
Water-Efficient Productsin the laundry washing process. Each household cansave more than 4,000 liters per year by utilizing the
Tide Plus technology on laundry day. Three hundredand seventy million people in India have access to the

Helping consumers save water in their home has beenwater saving potential of Tide Plus, which could help

a key focus of our 2020 water goals. Over the last foursave water equivalent to 6 billion showers per year.*

years, we’ve worked to qualify a suite of products aswater-efficient products based on the technology they

TIDE INDIA

utilize and the habits they inspire. Thanks to the hard
work of our researchers, formulators, sustainability
team and brand leaders, we have achieved this 2020
goal and provided more than one billion people withPantene Foam Conditioners
Pantene’s suite of foam conditioners help women

access to water-efficient products one year ahead of

reduce the amount of time they spend rinsing

schedule. But our work is not finished here. Our brands

conditioner from their hair. Foam conditioners rinse

will continue to look for opportunities to reduce in-out of hair 50% faster than normal cream conditioners.

home water use and to educate consumers on

Each week, users of quick rinse foam conditioners cansave up to four gallons of water versus traditional creamthe topic.

conditioner, all while getting their hair silky smooth 60

We achieved our 2020 goal ofproviding one billion people withaccess to water-efficient products.

million people have access to foam conditioners across
China, Spain/Portugal, U.S., Germany, UK, Russia andEastern Europe.
*Calculated on 35 liters average amount of water per 10

Tide Plus in India
In many parts of the world, handwashing laundry ispart of a household’s daily routine. A large volumeof the household’s weekly water usage goes towardgetting their clothes clean. The challenge is evenbigger when water is scarce, as it is in many states ofIndia. Tide Plus detergent helps Indian homes savemore than 10% of the water in every wash (versus
previous Tide Plus technology) by eliminating a rinse

min shower

28

ENVIRONMENTAL SUSTAINABILITY

BRANDS

Trust and Transparency at the Core
Nothing is more important to us thanensuring our products are safe for
consumers and the environment. Providing
people with the information they need tomake informed choices while continually
improving our product portfolio with the
product performance and ingredientpreferences they seek remains a core focus
for the Company. Last year, we committed
to sharing more information about oursafety science and ingredient choices. We
looked across all our product offerings
and innovations to develop our Ingredient
Citizenship principles. These guide how
we evaluate and share the ingredients wechoose for our products.
Throughout our history, we have stood for productsof superior value and performance, which requires
the best and safest ingredients available — whether
sourced from science or nature. Innovation withingredients is an ever-evolving area where we invest in
developing new options and continually consider what
is possible. This is evident in several of our productlaunches, which integrate new ingredients for a
superior consumer experience.

For example:
Tide purclean integrates plant-based surfactants
to achieve outstanding cleaning. Tide purclean is a

Relentlessly pursue the best andsafest ingredients from both scienceand nature

USDA-certified bio-based detergent with four times
the cleaning power of the leading natural detergent.
Tide purclean continues to grow ahead of the naturals
laundry category and recently has been ranked theLead by sharing the what, where
and how of our ingredients#1 natural laundry detergent by a leading consumer
publication.
Tampax Pure offers a 100% cotton core and a 90%

Collaborate to solve big ingredientand materials challenges

plant-derived applicator for comfort and protection.
Pampers Pure diapers and wipes were created withresponsibly sourced plant-based materials (such as
cellulose, cotton and plant-based fibers derived fromsugar cane) and other thoughtfully selected materials
and made with 100% purchased renewable electricity.
Pampers Pure became the #1 diaper in the naturaldiaper category in the U.S. in tracked channels.

INGREDIENT CITIZENSHIP PRINCIPLES29

ENVIRONMENTAL SUSTAINABILITY

BRANDS

Trust and Transparency at the Core
Not only are we innovating with product ingredients•A s more consumers ask for transparency about

and sourcing choices, we are also sharing more about

ingredients used in beauty products, they also

those choices with greater ingredient transparency.

ask for their products to use ingredients they trust

Our Brand websites and PG.com offer moreas safe. Herbal Essences heard this call and brought

information than ever before about our ingredients,

to market two new sulfate-free shampoos formulated

as well as the safety process we follow to ensure ourto meet the Environmental Working Group’s (EWG)

products are safe to use as directed. You can see thisVERIFIEDTM stamp of approval. This means Herbal

come to life through a few examples here:•T he naturals category is growing at an accelerated
speed across the industry, yet it is an area withlittle regulation, lots of variation and potential forirresponsible sourcing. P&G Beauty entered a longterm partnership with The Royal Botanic Gardens
at Kew to change how we innovate with naturalingredients, learning from their deep expertisein plants, their usefulness and conservation. Kew
Gardens has more than 260 years of expertise inbotanical science, 300 research scientists, and is
the most biodiverse place in the world. Our firstcollaborative effort under this innovation partnershipcan be found in Herbal Essences’ bio:renew lineup
around the globe. Customers can rest easy knowing
the botanicals in Herbal Essences bio:renew havebeen verified by the plant experts at Kew.

Herbal Essences is the firstmass hair care brand in massretailer stores to earn the
EWG VERIFIEDTM stamp of
approval.

Essences meets the rigorous criteria and provides
additional information on the product label in aneffort to drive greater ingredient transparency
and informed choices. With this credential, Herbal
Essences is the first mass hair care brand in massretailer stores to meet the strict clean beauty
standards set by EWG — creators of the Skin
Deep® Healthy Living® app — making clean
beauty options both affordable and accessible.
HERBAL ESSENCES

30

ENVIRONMENTAL SUSTAINABILITY

Supply Chain
Reduce our footprint and strive for circular solutions.
• We will protect and enhance the forests we depend upon.
• We will improve livelihoods of palm smallholders by increasing
yields from existing lands.
• 100% renewable electricity and cut GHG emissions in half at P&G sites.
• P&G sites will deliver a 35% increase in water efficiency and source at least
five billion liters of water from circular sources.
• Advance at least 10 significant supply chain partnerships to drive circularity
on climate, water or waste.

31

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Supply Chain
Reducing our Footprint at Every Stage
Across our global operations, we are making

We have established specific targets that we
intend to achieve by 2030:

intentional choices to reduce the footprint of our
suppliers, buyers and manufacturing sites, sourcing
sustainable materials and exploring new businessmodels to drive circular solutions. We are combining

100% renewable electricity and cut
GHG emissions in half at our sites

resources, reach and knowledge with strategic global
partners to drive the scale and speed needed to makea real difference.

Striving for Circular Solutions

 ur sites will deliver a 35% increaseOin water efficiency and source atleast five billion liters of water fromcircular sources

Circularity has always been a part of our ongoingconservation and environmental footprint reduction
efforts within water, waste and renewable energy.
However, as we look toward the next decade, weare committed to being both a force for good and dvance at least 20 significant
A
supply chain partnerships to drive
circularity on climate, water or waste

a force for growth. As part of that vision, we haveembraced the need to create a more circular end-

To learn new methods, find creative partners andto-end supply chain. To achieve this, we will needto accelerate our circular journey, we joined theto start thinking differently about the incoming

Ellen MacArthur Foundation’s Circular Economy

materials, manufacturing work process, distribution

100 working group. The Circular Economy 100 is aand transport of our products. Circularity is not onlypre-competitive innovation program enables

the right thing to do, it also helps make our operationsorganizations to develop new opportunities andmore efficient and resilient.

realize their circular economy ambitions faster. It
brings together corporations, governments, cities,
academic institutions, emerging innovators andaffiliates in a unique multi-stakeholder platform.

CE-100 MEMBERS GROUP

As we look toward the next
decade, we are committed tobeing both a force for good
and a force for growth.

32

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

ClimateAs a global citizen, we’re concerned about
the negative consequences of climatechange and are committed to doing our partto reduce greenhouse gas emissions. We
focus our efforts on reducing the intensityof greenhouse gas emissions (GHG) fromour own operations, helping consumers
reduce their own GHG emissions throughthe use of our products, and finally, building
partnerships with our suppliers and retailers
to optimize transportation of our products,
such as reducing the number of trucks on
the roads.
For additional perspective on climate change

Reducing GHG Emission
Scope 1 and 2

We have retained Lloyd’s Register Quality Assurance

We’re on track to deliver our science-based target to(LRQA) to provide independent verification of

reduce absolute greenhouse gas emissions by 30% in

our GHG program to ensure it meets the intent of2020 versus 2010. We have reduced absolute scope 1 &the GHG Protocol Corporate Accounting and

2 greenhouse gas emissions by 25%. The Science Based

Reporting Standard.

Targets Initiative recently updated their guidance andvalidated our target as “well below 2’C.”
We have two key strategies to reduce greenhousegas emissions by 2020:• Improve operating efficiency by 20%. We haveexceeded that target delivery: a 21% improvement thisyear versus 2010.
• Moving to low-carbon energy sources with a goal ofutilizing 30% renewable energy by next year.

implications that could be relevant for the Company

In 2018, we made another significant step on

and the steps we are taking to address them, please

our journey to reducing greenhouse gas (GHG)

download our climate change perspective document.

emissions with the announcement of Ambition
2030. We committed to:

CLIMATE AND ENERGY POLICY
CLIMATE CHANGE PERSPECTIVELLOYD’S REGISTER QUALIT Y ASSURANCE• Reducing our Scope 1 & 2 greenhouse gas emissions
by 50% on an absolute basis by 2030 (versus 2010
baseline). This is our second science-based target andcomplements our initial science-based target of a 30%
reduction in Scope 1 & 2 emissions by 2020.
• Purchasing 100% renewable electricity in North
America by 2020 and globally by 2030. These targets
will further advance our efforts to increase our use ofrenewable energy.

We’re on track to deliver
our science-based target to
reduce absolute greenhousegas emissions by 30% in 2020
versus 2010.

33

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

ClimateReduction in Energy Consumption
Percent reduction versus FY09/10 ,production adjusted

FY18/19

Energy Consumption by GBU
Millions of gigajoules-21%

FY18/19

61

FY18/19

FY17/18-18%

61

FY17/18

FY16/17-17%60

FY16/17

Total Greenhouse Gas Emissions (Scope 1 & Scope 2)
Percent reduction versus FY09/10, absolute

Baby, Feminine & Family Care

BeautyFabric & Home Care

Grooming

Health Care

Other

Total Greenhouse Gas Emissions (Scope 1 & Scope 2)
Millions of metric tons

FY18/19 -25%

4.1

FY18/19

FY17/18 -25%

4.1

FY17/18

FY16/17-16%

4.6

FY16/17Baby, Feminine & Family Care

BeautyFabric & Home Care

Grooming

Health Care

Other

34

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

ClimateRenewable Energy
We achieved a significant 2020 sustainability goal
ahead of schedule. We are proud to share that weare purchasing 100% renewable electricity in the U.S.
and Canada, and most of Europe except Russia andthe Ukraine, which currently have not establishedrenewable energy markets and tracking systems.
These three markets are among our largest andrepresent more than 70% of our purchased electricity,
signifying a strong start to our Ambition 2030 goalof purchasing 100% renewable electricity globallyby 2030.

Achieving this goal was a meaningful step on oursustainability journey, but the work doesn’t stop there.
We know we can’t solve the world’s most pressing
environmental challenges alone. Continued progress
requires collaboration, and we are focused on creating
partnerships that will enable people, the planet andthe business to thrive.

Reducing Our Carbon Footprint at
Manufacturing and Distribution Sites
A great example of how our climate actions are coming

We are proud to share that weare purchasing 100% renewableelectricity in the U.S. and Canada,
and most of Europe.

to life is through our efforts in Taicang, China where

Our largest individual contributors are our wind farm

we produce Head and Shoulders, Pantene, Rejoice andpartnership in Tyler Bluff, Texas which offsets 100%

Vidal Sassoon. Designing in sustainability from dayof the electricity needed for our Fabric and Home

one, Taicang was built around the concept of a Chinese

Care facilities in the U.S. and Canada and our onsite

water garden and is one of our most sustainable sites

Similar to Taicang above, our Milenio Gillette Blades

combined heat and power biomass facility in Albany,

globally. They have achieved LEED silver certification,& Razors Plant in Irapuato, Mexico continues to be aGeorgia, which provides 100% of the Bounty andutilize 100% renewable electricity from wind, areleading example of sustainable manufacturing within

Charmin steam requirements at this plant.

qualified as zero manufacturing waste to landfill, andtheir region. The plant is LEED Silver certified, sends

have demonstrated breakthrough water/wastewaterzero manufacturing waste to landfill, reuses treatedrecycling. Since their startup in 2012, the plant has

wastewater and gets most of their electricity from ancontinued focus on reducing their footprint, using

offsite wind energy partnership. Recognizing theirlean operational strategies to deliver an additional

ongoing efforts to reduce energy (such as major

27% reduction in energy per unit of production.

compressed air and cooling upgrades) the plant

In addition to these large-scale projects, we are
reducing emissions in our global operations through adiverse portfolio of renewable energy projects focusedon wind, solar, geothermal, hydro and the use ofrenewable energy certificates, all of which helped us
meet our 2020 renewable electricity goal. Our intent is

Our Boston plant produces Gillette Razors and is alsothat by executing new projects, while also continuing

the home of Gillette’s World Shaving Headquarters

to purchase electricity from renewable sources, we canand R&D center. Over the last five years, this site has

spur further innovation, investment and a transition to

reduced their absolute energy consumption over 10%

renewable energy for the regional utilities that provide

by partnering with their local utility to improve energy

energy to our nearly 150 sites globally.

efficiency of their operations.

has won the Energy Efficiency State Award for 4
consecutive years.

35

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

ClimateScope 3 GHG Emissions

Scope 3 Categories

More than 99% of our Scope 3 emissions come fromPurchased goods andjust four categories — purchased goods and services,

services — upstream transport

downstream transportation and distribution, use of& distribution

sold product, and end of life treatment of sold product.
Of these, the “use phase” of our products, especiallythose that use hot water during consumer use, is oursingle greatest opportunity for Scope 3 emissions.
Given these four categories account for more than
99% of Scope 3 emissions, we focused this year’s data
update on those categories and derived new estimates
for them using life cycle assessment (LCA) data andcalendar year 2018 production volumes. Findings wereconsistent with prior years, indicating consumer useof our products remains our greatest opportunity area.

247,0002

Fuel & energy activities

495,0003

Waste generated in operations

151,0424

Employee commuting

117,0002

Upstream leased assets

Not material

Downstream transport &distribution

employees that were managed by our primary outside
travel agencies. Travel arranged by other agencies is

Processing of sold productUse of sold productnot covered in the calculation and would therefore

End of life treatment of soldexclude the following markets — Singapore (Prior to

product

March, 2019), China, Taiwan, Indonesia, and Russia. We
expect to include those countries in next year’s report.

9.0003Business travelin purchased good and services which and we also
travel estimate includes commercial airline travel by

16,421,0001

Capital goods

Updated data on packaging materials were included
updated our business travel emissions. The business

Tons CO2e5,394,0001
Not material

199,133,0001
13,251,0001

Downstream leased assets

Not material

Franchises

Not material

Investments

Not material

1 Calendar year 2018 estimate from LCA data
2 Fiscal year 16/17 estimate
3 scope limited to material sent to landfill
4 Covers period June 1, 2018 – May 31, 2019

Consumer useof our products
remains our greatest
opportunity area.

36

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Responsible Forestry

We remain committed tosourcing certified wood pulp
and to leading international
forest certification standards.

Although we do not own or manage
commercial forests, many of our products
and packages are dependent on raw
materials from forest-based supply chains.
Therefore, we play a key role, through our
procurement and manufacturing practices,to ensure the sustainability of the world’s
forest resources.
Forests are critical to earth’s ecosystemand to the plant, animals and humancommunities that depend of them. The
world’s forests hold the potential to mitigate
some of the most important threats we facesuch as climate change, but they remain
under pressure from population increases
and economic demands. One of the easiest
ways to counteract threats to forests is bylooking for and purchasing wood products
which are sourced from responsibly
managed forests and tree plantations.

We remain committed to sourcing wood pulp certified
to leading international forest certification standards.
We have been working diligently to define Ambition
2030 plans,which go beyond our prior efforts toenhance and protect the world’s forests and which
help advance our commitments to:· Increase the area of certified forests globally, whileworking to strengthen leading certification systems.
· Play a leadership role in developing a collaborative
science-based forest-positive approach that supports
sustaining and expanding working forests that weand others depend on.
Wood pulp for tissue/towel and absorbent hygiene
products, wood fibers used in paper packaging andpalm oil for our laundry and beauty products are
strategic commodities where our sourcing practices
have the greatest impacts on ensuring responsible
use of the world’s forest resources. Each of thesematerials has a different supply chain, and their uniquecomplexities led us to develop individual programs as
described in the following sections.

37

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Responsible Forestry
Wood Pulp Supply Chains
Procurement Policy
As part of our procurement practices, we require that
all wood used for pulp supplied has undergone a risk
assessment in accordance with the Forest StewardshipCouncil® (FSC®) Controlled Wood standard. The
FSC Controlled Wood risk assessments ensure thatunwanted wood sources are avoided, and that wood
harvesting is done legally per our procurement policy.
Our preference for FSC makes use of both FSC· Ensure that trees are not harvested from highconservation value forests unless they are credibly
certified to the most rigorous forest management
standards. We supports multi-stakeholder efforts todevelop information sources and tools that will help
suppliers identify these areas on their own forestlands
and in their procurement of wood raw materials fromthird parties.

HCV RESOURCE NETWORK

Chain of Custody (FSC COC) and Controlled Wood
(FSC CW) inputs.
We require that the forest certification systems utilized· Ensure that there is no sourcing from geneticallymodified trees in pulp delivered to us.

by our wood pulp suppliers adhere to the following· Ensure that their own and their supplier practices

criteria for responsible forest management:

reflect our social values and support of universal· Ensure the safety of forestry and manufacturing
operations for employees and the environment.
· Ensure that unwanted wood sources are avoided,
and that wood is legally harvested, and that all legal
requirements are met. We will not knowingly use
illegally sourced materials in our products.
· Ensure that their supply chain incorporates thehuman rights through work with local governments
and communities to improve the educational, cultural,
economic and social wellbeing of those communities.
· Ensure that their supply chain used to produce
our pulp does not contain fiber from conflicttimber (timber that was traded in a way thatdrives violent armed conflict or threatens nationalor regional stability).

principles of responsible forest management andcontinuous improvement in their own operations,and that they are verified by independent forestand chain-of-custody certification.

WOOD PULP POLICIES & PRACTICES

We require that the forest
certification systems utilizedby our wood pulp suppliers
adhere to responsible
forest management.

38

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Responsible Forestry
Third-Party Certification

FSC Group Certificate Support

100% of the virgin wood pulp we purchase for use in

Pulp For Our Tissue/Towel
and Absorbent Hygiene Products

our tissue/towel and absorbent hygiene products is

Pulp Sources

Owners Association (FSTOA), led by Domtar, to discuss

third-party certified by one of our accepted forest

In FY18/19, we purchased 1.3 million metric tons of

expanding the amount of timberland that is undercertification systems.

air-dried pulp for use in our tissue/towel, diaper andforest management certification.

We give preference to FSC certified pulp when it
is available and meets product performance andbusiness requirements. FSC certification protects
water, wildlife and local people by ensuring forests are
responsibly managed. FSC standards are recognized

In 2016, we met with the Four States Timberland

absorbent hygiene products. The pulp was sourced
from the following countries and used the following

FOUR STATES TIMBERL AND
OWNERS ASSOCIATION

third-party certified fiber:Country of Origin% of Total

Together, we are committed to lowering the technicalArgentina< 1%

international environmental NGOs.

Brazil35%

Based on the market availability of certified pulp, ourCanada35%

Our participation supported the growth in certified

forestry certification systems, such as:

United States

28%

and expansion of the association. The FSTOA is now· Programme for the Endorsement of Forest

Swedenworldwide as the most trusted forest management
certification scheme and are supported by leading

supply chain will also source from other third-party

Certification (PEFC)· Sustainable Forestry Initiative® (SFI)· Brazilian Forest Certification Programme (CERFLOR)· Canadian Standards Association (CSA) Group
Sustainable Forest Management System (SFM)

Total
Certification System

1%% of Total

39%

FSC CW

4%

PEFC

22%

SFI

35%

Total

100%

FSC CW — Controlled Woodin family-owned forests through Domtar’s FSTOA FSC
group certificate.

lands, and we continue to support the operation
working towards having 600,000 acres of timberland
under FSC group certification.

100%

FSC COCFSC COC — FSC Chain of Custodyand financial hurdles to increasing forest certification

We give preference to FSC
certified pulp because thecertification ensures forests
are responsibly managed.

Our Charmin toilet tissue
and Puffs facial tissue
products are FSC certified byRainforest Alliance.

39

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Responsible Forestry
Advancing Global Certification

New Forestry Commitments

Strengthening Forest Certification

Today, all our Family Care products are made with 100%

In early 2019, the PEFC Council made a call for

certified pulp, sourced from responsibly managed

volunteers to participate in a new permanent

forests. Charmin and Puffs are also Forest Stewardship

Sustainable Forest Management Working Group.

Council© (FSC©) and Rainforest Alliance certified.

• Use 100% recycled fiber in our fiber-based packaging

We were nominated to join the working group and

For every tree we use, at least one is regrown. And

by 2025. Fiber-based packaging is the best way toselected as a participant, representing customers

we will go even further to increase acres of certified

reuse fiber while creating a productand consumers. The working group will continue

forests, strengthen certification globally and acceleratethat people prefer.

development of PEFC’s sustainable forest management

research into alternative fiber approaches.

approach and provide guidance on the implementationand interpretation of PEFC’s benchmark standards forAmong its new commitments, P&G Family Care will:

forest management certification. Our participation• Work with experts to increase the number ofin this working group will help advance our Ambition

forest acres that are FSC-certified in the U.S. and2030 commitment to strengthen the world’s leading

Canada. FSC is a widely respected certification. We

forest certifications systems.

are committed to nearly doubling our use of FSC-

• Help the Arbor Day Foundation plant two million
trees via their California Wildfire Restoration project.
Our support will help to restore forests that havebeen devastated by wildfires.

• These commitments will help ensure the preservationof forests now and in the future. For more details,
check out a recently published blog post from FSC or
our Charmin website and blog post:
FSC BLOG POST

certified fiber to 75% across all P&G Family Care

Continuing Collaboration

brands in the next five years.

Arbor Day Foundation Tree Planting• Partner with FSC Canada to protect caribou

We worked with Arbor Day Foundation (ADF) andadditional collaborators to help ReLeaf Michigan
plant trees in Detroit’s Corktown neighborhood
Muliett Park in June 2019. The trees were planted byvolunteers, and the new trees will help Detroit meetas outlined in the new FSC Canadian Forest
Management Standard. This standard has beenrecognized by many NGOs for protecting caribou tothe highest level available, as noted by the Natural
Resources Defense Council (NRDC) in 2019 and theits goal of providing all residents with a park within aWorld Wildlife Fund (WWF) in 2018 and 2019.

ten-minute walk. The trees beautify the park and will

• Invest a total of $20 million dollars by 2025 togrow to provide shade for the park’s amenities. The twoorganizations previously collaborated in a similar treeplanting event in Detroit in 2017.

CHARMIN BLOG POST

accelerate research into non-wood fiber alternatives
and FSC certified fast-growing fibers. Our goal
is to develop fibers that are consumer-preferred,sustainably sourced and can be produced at scale.
We will work with external experts to strengthen
these efforts and find disruptive solutions. We aspire
to include greater than 50% of these environmentally
preferred fibers in our products.

All of our Family Care products are
made with 100% certified pulp sourced
from responsibly managed forests.

40

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Responsible Forestry
We continually strive to optimize the design of ourThis data, which was self-reported by our suppliers, ispackaging, aiming to use the least amount of materialsummarized in the following table:

while ensuring adequate protection, delivery and safeuse of our products. As part of our ongoing efforts, we
continue to identify source reduction opportunities
to decrease overall material usage and to use
recycled paper when it offers the best option to meet
performance and business requirements.
Our paper-based packaging is derived from woodfiber, and we have a responsibility through our
procurement practices to ensure that the wood fiber

Total volume in metric tons: ~740,000% Recycled85%% Virgin15%% of virgin fiberthat was third-party-certified

in our packaging has been responsibly sourced. We% of total recycled orhave made a specific commitment that by 2020, 100%

third-party-certified virgin

93%
99%

of our paper packaging will contain either recycled or
third-party-certified virgin content. Over the last year,
we have expanded our efforts to collect data froman increased number of suppliers to assess progressagainst this goal. This year, we have received data from
more than 100 suppliers that represent more than 95%
of our global paper packaging spend.

This year, 99% of the volume reported by our suppliers
was either recycled or third-party-certified virgin
content. That means less than 1% of the total reported
volume was virgin material that was not third-party
certified. Over the course of the next year, we
will work to close the remaining gap versus
our goal.

99%of the volume
reported by our suppliers waseither recycled or third-partycertified virgin content.

41

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Palm Oil
Palm Oil (PO) is an important, versatile andhighly efficient vegetable oil that is used asa raw material by both food and non-foodindustries. In some regions of the world,
the rapid expansion of PO production has
threatened environmentally sensitive areasof tropical forests and peat lands and has
resulted in incidents where the rights of
independent smallholder farmers andindigenous peoples have been infringed.
We are committed to the responsible sourcing of• No burning to clear land for new development or
replanting• Compliance with P&G’s existing Sustainability
Guidelines for External Business Partners• Respect for human and labor rights• Respect for land tenure rights, including rights ofindigenous and local communities to give or withhold
their free, prior and informed consent for developmentof land they own legally, communally or by custom

OUR RESPONSIBLE SOURCING POLICY

palm that does not contribute to deforestation andrespects the rights of workers and indigenous peoples.
We are members of the Roundtable on Sustainable
Palm Oil (RSPO) and support their standards to drive
responsible palm practices across the industry. In
addition, we have established a robust approach toensuring the responsible sourcing of palm derived
materials which includes supplier management,
improving lives of smallholders and industry influence.

All of our suppliers have submitted their relevant
policies and procedures to demonstrate how they wewill meet our requirements. Our expectation is that our
suppliers apply these policies to all of their operations,
not just those supplying P&G. If we find a supplier isviolating any of the above requirements, and if that
supplier does not acknowledge and take action toresolve the concern, P&G will suspend or eliminate
palm oil purchases from that supplier. A supplier

We are committed to the responsible
sourcing of palm that does notcontribute to deforestation andrespects the rights of workers andindigenous peoples.

Palm Oil Responsible Sourcing Policy
P&G is committed to ensuring our suppliers meet
RSPO Principles and Criteria (P&C) 2018 and have thenecessary policies and procedures in place to ensure:• No development of high-conservation-value (HCV)
areas and high-carbon-stock* (HCS) forests• No new development of peat lands regardlessof depth

would need to have a documented action plan anddemonstrate meaningful progress to be considered forreinstating supply agreements.
*The High Carbon Stock Approach (HCSA) Toolkit was incorporated into the2018 RSPO P&C and should be applied to identify and conserve HCS forests,
and verify our commitments.

42

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Palm Oil
Progress
During FY18/19 key milestones included:• Greatly increased transparency of our supply chain
by publishing both palm oil supplier names and adetailed list of the Palm Oil Mills in our supply chain.
We have traced >98% of our supply chain to Palm
Oil Mills.
• Maintained 100% RSPO certification for palm oil/palm oil derivatives and have switched all our PO
purchases to RSPO Certified SG and we remain on
track to purchase 100% of our palm oil derivatives as
RSPO SG by the end of 2020. Our target is to move theremaining palm purchases (PKO and PKOD) used in
P&G brands to RSPO Certified (or equivalent) by theend of CY 2022.
• Announced a 3rd party collaboration with FGV, our
key PKO supplier and JV Partner in Malaysia, to invest
in and accelerate FGV’s human rights remediation
efforts. Details of this effort can be found here:
FGV REMEDIATION EFFORTS• Dr. Kuanchun Lee, a P&G Principle Scientist, waselected to the RSPO Board of Governors representing
the Consumer Good Forum’s manufacturing
companies and played a key role in the Principles
and Criteria (P&C) 2018 task force which gained
RSPO approval at its RT 16 in Kota Kinabalu in
November 2018.
• Moved our Smallholders Program in Malaysia from aseries of pilots to a full-fledged program through thecreation of the P&G Center for Sustainable Smallowners (P&G-CSS) to drive livelihood improvement

and supply chain verification to P&G Responsible
Sourcing Policy.

3 Pillar Framework
We continue to advance progress against our 3-pillar• We have participated in the RSPO Independent

framework. You can read more about the detailed

Smallholder Standard (RISS) development and will

progress in each of our three pillar areas by clicking

guide independent smallholders in the Smallholders

on the links below:

Program into the RISS certification process• We have participated in the RSPO Jurisdictional

PILL AR I: SUPPLIER MANAGEMENT

Working Group to develop the framework andcertification structure to enable broader compliance to

PILL AR II: PROGRESSRSPO standards and our Responsible Sourcing Policy.
PILL AR III: INDUSTRY INFLUENCE43

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Palm Oil
Pillar I: Supplier Management
Palm Oil

Palm Kernel Oil

We use ingredients derived from palm oil and palm

We use ingredients derived from Palm Kernel Oil andoil derivatives in Skin & Personal Cleansing and FabricPalm Kernel Oil Derivatives in Fabric Care, Home Care,

Care products.
We are proud of our progress on Palm Oil and achieved
100% RSPO Segregated (SG) Palm Oil purchases atHair Care and Skin & Personal Cleansing products. Our
major PKO and PKOD suppliers are FGV, Wilmar, ICOF,
KLK, GAR and AAA.

the end of 2018. We’re also advancing plans to moveThanks to a unique partnership with the Malaysia

our Palm Oil Derivatives to RSPO Segregated (SG) by

Institute for Supply Chain Innovation and FGV, ourthe end of 2020. Until that time, we will maintain our

single largest PKO supplier, we have gained significant

Palm Oil/Palm

Palm Oil

Oil Fractions

Derivatives

2

Metric Tons1

63,802

62,667

RSPO
Certified (%)

100%

100%

%MB

24%

100%

%SG

76%

0%

Palm Oil derivatives to be RSPO Mass Balance (MB)visibility to the sourcing plantations and regions of

1 This represents the total volume of PO and PO derivatives purchased by P&G.

Certified. Our ability to achieve that may be influenced

FGV’s PKO supply chain. In fact, we now know that

Approximately 95% of this is used internally by P&G brands. The remaining 5%by broader market dynamics and supply availability,

about 96% of our palm kernel oil was sourced from a

2 We achieved 100% RSPO SG Palm Oil, Palm Oil Fractions at the end of 2018.

but we have already engaged with our suppliers on

known subset of FGV’s palm oil mills. FGV are currently

plans to achieve this goal. This is consistent with ouron a glidepath to re-certify their mills which voluntarily

belief that it is the demand for palm oil that is driving

withdrew their RSPO certification in 2016. As FGV

forest conversion and peat land pressures and theprogresses their recertification efforts, our percentage

greatest impacts can be achieved by industry placing aof RSPO MB certified PKO will increase. We aredisproportionate focus on driving sustainable palm oiltargeting to reach 100% RSPO MB PKO and PKOD

production practices across all categories and regions

for ingredients used in P&G products by the end

that use palm oil.

of 2022.

Learn more about why we are moving to RSPO SG PO.
RSPO SG PO

is sold to external parties through our P&G Chemicals division
The data in this table reflect totals over FY18/19 (July 1, 2018–June 30, 2019)
which is why not listed as 100% RSPO SG

Palm

Palm Kernel Oil

Kernel Oil

Derivatives

Metric Tons*

288,694

85,322

RSPO
Certified (%)

16

16

RSPO MB
Certified (%)

00*This represents the total volume of PKO and PKO derivatives purchased by
P&G. Approximately 65% of this is used internally by P&G brands. The remaining
35% is sold to external parties through our P&G Chemicals division

44

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Palm Oil
Suppliers’ Traceability

2020 and Beyond

The map below shows the Palm Oil Mill location from

While we are proud of the progress we have madeour traceability exercise which cover over 98% of ourfor the oil we procure, we recognize that challenges

palm purchases. The key direct suppliers are Wilmar,

remain in the broader palm oil industry. As a result, we

ICOF, AAA, GAR and Kalmart.

will be expanding the focus of our efforts to include
elements which can help drive broader systemicchange within the industry. This includes the following:Enterprise-wide Monitoring of Supplier Operations
We believe an industry wide monitoring system
based on use of aerial/satellite imagery, concession

identify where we can make a positive difference
by investing in conservation of sensitive areas. OverFY19/20 we will work with external partners to define
specific areas and investments we can make that will
help protect sensitive areas.
Focus Areas for FY19/20• Advance supply chain efforts to reach 100% RSPO SG
for POD by Dec 2020.

maps, and knowledge of HCV/HCS areas would be a• Implement PKO and PKOD RSPO Certification

powerful tool to help ensure consistent enforcement

glidepath towards 100% by Dec 2022.

of palm oil sourcing policies. The technology needed
for such a system exists today but broad collaboration
across the value chain will be required to maximize the
P&G TRACEABILIT Y TO MILLS

Conserve and Protect Sensitive Areas
We will go beyond our current sourcing efforts andimpact such a system could have. We are committed
to working with our peers in the CPG industry andour suppliers to evaluate how such a system could be
implemented and maintained and will make this afocus of our efforts in FY19/20.
Jurisdictional Approaches:
We believe that jurisdictional approaches offer an
opportunity to help reward positive efforts of regions/states to establish robust responsible sourcing basins.
As a first step to understand what we can do to help
support regions seeking to advance responsible
practices, we have joined the Tropical Forest Allianceto learn more about emerging efforts in our key
sourcing regions of Indonesia and Malaysia. As we go
forward, we will look to support jurisdictional efforts bypreferentially sourcing oil from these efforts when it isfeasible to do so.

• Strengthen the supply chain risk assessment todetermine the landscapes around P&G supplying
mills where there is a large coverage of ecologicallysensitive areas. Use this data to inform work withthe relevant stakeholders to establish/participate inconservation programs.
• Advance work to develop Supplier Enterprise-wide
Monitoring System. This will include evaluationand selection of existing monitoring systems andparticipating in multi stakeholder efforts to develop a
process for grievance alerts and ensuring appropriate
follow up actions

45

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Palm Oil
Pillar II: Smallholders

FY18/19 Key Highlights

The P&G Smallholders Program is focused on theCollection Centres On-boarded

independent smallholders within our oleo-chemicals

15

supply chain in Malaysia. Its two main objectives are:

Smallholder Farms Traced

4500

1. Develop the capability and enable the capacity

mT PKO Traceable to Smallholders

4000

Smallholders Engaged1263

of independent smallholders to be sustainablesuppliers in compliance with P&G Palm Responsible
Sourcing Policy
2. I mprove independent smallholders’ livelihood

Learning Farms Developed

12

through yield increase
P&G Center for Sustainable Small-owners (P&G-CSS)

a. Traceability & Sustainability Compliance

FY18/19 was a major milestone year where we

P&G-CSS has signed on-boarding agreement with 15

strategically partnered with the Malaysia Institute forCollection centers in Johor, Malaysia

Supply Chain Innovation (MISI), a member of the MIT
Global SCALE Network to establish P&G-CSS.
As the main delivery partner for the P&G Smallholders
Program, the mission of P&G-CSS is to safeguard
the interest of the smallholders and improve theirlivelihood while ensuring ethical and responsible
sourcing for oil palm with commitments to no• These Collection Centers (CC) are critical Fresh Fruit
Bunches (FFB) aggregation points representing a
network of 4,500 smallholders
b. Ambition 2030 — Livelihood Improvement
Completed foliar, soil and vegetative samplings for the
12 Learning Farms

deforestation, no new plantation on peatlands and no• Implemented Fertilizer Plan for improved nutrient

exploitation in the supply chain.

management for Learning Farms• Created supply chain financing mechanism for
fertilizer procurement to support independent
smallholders

46

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Palm Oilc. RSPO Partnership for Smallholders

FY19/20 Objectives

P&G sits in the RSPO Smallholder Standing Committee

Prepare and guide first 250 independent smallholders

to oversee the execution of the RSPO Smallholder

in our program towards RISS eligibility phase audit

Strategy etc.

• Continue development of 30 Learning Farms and• P&G with MISI become impact partners for the RSPO

train 100 smallholders on good agricultural practices

Smallholder Academy

through Field Days

• 4 P&G-CSS staff have qualified as Master Trainers for• Expand our Program to on-board seven new CC on

the RSPO Smallholder Trainer Academy

top of current 15 CC• P&G-CSS contributed to and partnered with RSPO• Create certification and sustainability awarenessto assess feasibility and auditability of the RSPO

among smallholders through regular engagements,

Independent Smallholder Standard (RISS).

awareness campaigns and training modules

d. Oil Palm Data Warehouse (OPDW)• Further enhance the digital capability of OPDWOur technology partner, MIMOS - Malaysia’s Nationaland P&G’s traceability to mills analysis to strengthen

R&D Centre has completed the first phase of OPDW

our transparency

with track and trace capability from our oleo-chemicals
operations to independent smallholders in the P&G
Smallholders Program• OPDW is embedded with big-data analytics andblock-chain technologies to optimize data collection
and digitalization• To-date, 1210 independent smallholders’ profile
with 1224 farm assessments have been uploaded
into OPDW, analyzed and reported through P&G
Palm Responsible Sourcing Policy for Smallholders
Scorecard• Its traceability capability has enabled us to trace
about 98% of our palm sourcing to mills

As leaders in their fields, MISI andMIMOS are strategic partners to
the P&G Smallholders Program.

47

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Palm Oil
Pillar III: Industry Influence
Continuing to develop and drive harmonizationof industry approaches and standards is criticallyimportant not only for P&G, but also the industry as awhole to deliver the P&G Palm Responsible Sourcing
Policy and industry common goal and support social
aspirations of the palm community. P&G has been
member of the High Carbon Stock Approach SteeringGroup (HCSA SG), RSPO’s No Deforestation Taskforce(NDTF), No Deforestation Joint Steering Group (NDJSG),
Smallholder Interim Group (SHIG), Smallholder
Standing Committee (SHSC), Jurisdictional Working
Group (JWG), to enable implementation of the
P&C 2018, and development of RSPO Independent
Smallholder Standard (RISS), and the Jurisdictional
approach and certification process. As a member ofthe RSPO Board of Governors, we are contributing
to strengthen RSPO’s impact in continuouslytransforming the industry and expanding sustainablepalm oil to a norm. Key highlight of the collaboration
areas and progress are outlined below:

RSPO Independent

the RSPO Smallholder Standing Committee which will

Smallholder Standard

oversee the successful implementation of the RSPO(RISS) and Inclusion

Smallholder Strategy and Standard.

Implementing the RSPO
Smallholder Strategy
is key to improve thelivelihood, drive inclusionand participation of more
smallholders in the RSPO system.
The new RSPO Independent Smallholder Standard is
the means to realize the strategy. As member of the
Smallholder Interim Group, we have been contributing
to develop the RSPO Independent Smallholder
Standard (RISS) — a more simplified, inclusive process,with stepwise approach to support continuous
improvement of practice and productivity of this key
supply chain sector into the RSPO system, and key
eligibility requirements to enable market support tothe smallholders to advance the milestones toward
100% RSPO compliance. We are supporting the RSPORSPO Jurisdictional Approach
The RSPO Jurisdictional Approach is aiming toengage and ensure the RSPO and non-RSPO
member producers in a jurisdiction are meeting the
P&C and be certified eventually. P&G is member of
the Jurisdictional Working Group to develop theprocess and certification system that will incorporate
HCS-HCV mapping at large scale for protection andland-use planning, step-wise approach for continuous
improvements, and strong governance structure
under the jurisdictional entity. The JA is an importantsystem in advancing RSPO’s outreach to the broad
independent supply chain with support from themulti-stakeholder community. We are looking forward
to refining and finalizing the system by 2020 incollaboration with the JWG members.

Smallholder Academy and aiming to developing

Consumer Goods Forum Palm Oilreadiness of the P&G Smallholders Program to become

Working Group (CGF POWG)

Implementing No Deforestation, Peat and

RISS certified and are looking forward to the approval

P&G is member of the CGF POWG to mobilize

Exploitation (NDPE) Policy with RSPO P&C

of RISS in November 2019. Four of our field officers inresources in driving industry progress on NDPE

The 2018 P&C was approved by the RSPO members

our Program were trained to the Academy’s Master

policy and goals, as well as enabling alignment andin November 2018, achieved a key milestone

Trainer and will be supporting the P&G Program as welldevelopment of standards and methodologies. We

incorporating NDPE into the RSPO standard andas the smallholder strategy implementation. For theare supporting the priorities to increase transparency

enabling a key means to verify NDPE compliance forfourth consecutive year, P&G sponsored the Linking

by developing sector-wide deforestation monitoring

the industry. P&G as member of HCSA SG, RSPO NDTF

and Learning program at the RSPO Roundtablesystem and implement the Forced Labor Priority

and NDJSG are contributing to the transition into

16 meeting in Kota Kinabalu, Sabah, bringing

Industry Principles to strengthen social responsibility
in palm oil supply chain.

integrated HCS and HCV process for No Deforestation,

smallholders to share their experiences on RSPO, anddevelopment of High Forest Cover (HFC) landscape/to be updated on the RSPO strategy and programs tocountries procedure into the RSPO P&C. These aresupport them. We are committed to continuing thecritically important in enabling effective and credible

support to the smallholders who produces 40% of theimplementation of the P&C.

palm oil globally and have been nominated to sit in

48

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Water
Water is essential for the daily operationof our facilities and production of many ofour products. Creating a culture of water
efficiency at our sites continues to be a focus
with the launch of our Ambition 2030 goals.
Thanks to the work of many employees
across our global portfolio, we’ve been able
to reduce our manufacturing water usage
by 27% per unit of production since 2010.
Water Efficiency at Our
Manufacturing Sites
Our Mexico Hair Care plant is in an area which has
been experiencing water stress. The employees arecommitted to reducing their use of fresh water and areleveraging innovative data analytics to drive actionable

Our Feminine Care plant in Hungary developed
innovative solutions to expand their business without
increasing their demand on the local water supply. The
plant’s water recycling process consists of industriallyproven water treatment technologies. This plant
can recycle a remarkable 98% of the Always Infinity
manufacturing area’s daily water demand. This is equal
to more than 230 million liters of recycled water per
year. Waste produced from this recycling operation

Reduction in Water Consumption
Percent reduction versus FY09/10,
per unit of production

FY18/19-27%

FY17/18
FY16/17-25%-26%

is repurposed, allowing the plant to maintain its Zero
Manufacturing Waste to Landfill status.
Our newest manufacturing plant in West Virginia is

Water Consumption by GBU
Millions of cubic metersrecycling more than 230 million liters of water per year,or the average annual water consumption of 550 West
Virginia households. Rejected water from the plant’s
water purification process is treated and reused inplant utility systems and product formulations. This
recycled water offsets fresh water supplied to the plant.

63

FY17/18
FY18/1962
64

FY16/17
FY17/18

63
62

FY15/16
FY16/17

insights from water meters installed throughout thesite. The analysis of this data provides the plant witha daily understanding of water consumption so they
can act immediately to eliminate losses. The plant canalso benchmark their water efficiency performancewith other sites. In the first month of operation, thesite identified five projects that can improve theirproduction adjusted water efficiency by 10%.

Water 2020 Goals
Reduce water use in manufacturing facilities by 20%
per unit of production with conservation focused onwater-stressed regions

Baby, Feminine & Family Care

BeautyFabric & Home Care

Grooming

Health Care

Other

Wastewater COD* Disposed by GBU

Achieved — 27% reduction per unitof production

Thousands of metric tons

16

FY18/1921

FY17/18

19

FY16/17*Chemical Oxygen Demand

Baby, Feminine & Family Care

BeautyFabric & Home Care

Grooming

49

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Water
Water Risk Assessments

Water Risk Assessment Framework

In combination with our efficiency work, we’ve
continued to make progress in our commitment tofocus our efforts in areas exposed to high water risk.
We developed a Water Risk Assessment frameworkin partnership with the World Resources Institute1

Water Risk Screening (Completed)
Identify risk level of sites based on:• Baseline water stress score — World Resources Institute• Gross national income per capita — World Bank

(WRI), World Wildlife Fund (WWF) and Environmental• Company site water use per year — P&G

Resources Management (ERM) in order to guide our• Access to water — WHO/UNICEF

efforts to the highest priority areas.

ALL SITES SCREENED~70% of sites inlower-risk regions

After completing steps 1 and 2 of the Water Risk
Assessment framework, 24 manufacturing sites wereidentified as being exposed to high water risk. These
24 sites moved on to Tier 3 of our assessment process.

2
3

Tailored Site Questionnaire (Completed)
Prioritize sites based on outcome of responses.
• The Company questionnaire was built upon thefacility questionnaire in WWF’s Water Risk Filter

PRIORIT Y SITES FROM 1~30% of sites have entered
the Tier 2 process

In-Depth Site Water Analysis (Current Phase)
Prioritize risks for mitigation and develop site water
stewardship plans.
• Alliance for Water Stewardship (AWS) International
Water Stewardship Standard 1.0 steps 1-3.

PRIORIT Y SITES FROM 2~15% of sites will complete
the Tier 3 process

50

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Water
The Alliance for Water Stewardship

Tier 3 Facilities

As part of a two-year program, each of the 24 Tier 3
facilities will create site water stewardship plans. In
the past year, half of these facilities followed steps 1,
2 and 3 of the Alliance for Water Stewardship (AWS)International Water Stewardship Standard 1.0. This
standard provides a globally applicable framework for
major water users to understand their water use andimpacts and to work collaboratively and transparently
for sustainable water management within a basin
context.
By using the AWS Standard, each of the facilities
created site-specific water stewardship action plans,learned more about the shared challenges in theirlocal water basins and identified key stakeholders
for potential future partnerships. These facilities willcontinue their focus on improving water efficiency
within the facility as they execute their water
stewardship action plans. The remaining sites willcomplete their assessments this year.

ALLIANCE FOR WATER STEWARDSHIP

Sites that have completed
AWS steps 1, 2 and 3 andcreated site-specific water
stewardship action plans
Sites who will complete
this year

51

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Waste
We have a vision that one day zero consumer
and manufacturing waste will go to landfill.
To help lead the way and demonstrate what
is possible, our production facilities acrossthe world are on a mission to get to zero
manufacturing waste to landfill by 2020.
We started our Zero Manufacturing Waste to

Waste Disposed
Percent reduction versus FY09/10
per unit of production

FY18/19

Solid Waste Non-Hazardous by GBU
Thousands of metric tons

30

-86%

FY17/18-81%

FY16/17-79%

FY18/1940

FY17/18
46

FY16/173

FY18/19

Landfill (ZMWTL) journey in 2008, and what we once
considered an impossible dream is close to becominga reality. Our “Waste to Worth” program has helped
us transform our processes and the way we operate
across our 100+ manufactturing site, that effectively
became waste champions. Working closely with
our Global Asset Recovery Purchases (GARP) team,

Solid Waste Hazardous by GBU
Thousands of metric tons

Disposed Waste by GBU
Water Consumption by GBU
Thousands of metric tons
Millions of cubic meters

we found beneficial use for our waste, helping the56

Company save more than $2 billion while diverting
more than five million tons of would-be waste from72

landfill. In the past year, the team has continued tomake phenomenal progress.
•O ur Pantene and Head & Shoulders manufacturing

63

FY18/19
FY17/1862

FY17/18
FY16/1777
63

FY16/17
FY15/162

FY17/18
3site in Thailand received a “Responsible Care Award”
in the first year of enrollment to the Responsible CareManagement System® and for their performancein health, safety and environmental protection. The
award recognizes companies with outstanding
compliance within (1) Community Awareness& Emergency Response, (2) Process Safety, (3)Employee Health & Safety, (4) Pollution Prevention, (5)Distribution and (6) Product Stewardship. Building
off this work, the site also partnered with the Plastic
Institute of Thailand and Chulalongkorn University
to conduct a local material flow analyses to better
understand consumer habits and waste consumption
across Thailand.

Baby, Feminine & Family Care

BeautyBaby, Feminine & Family Care

BeautyFabric & Home Care

Grooming

Fabric & Home Care

Grooming

Health Care

Other

Health CareOther

FY16/17

52

ENVIRONMENTAL SUSTAINABILITY

SUPPLY CHAIN

Waste
•O
 ur Global Asset Recovery Purchases (GARP) program

names at both the Marktheidenfeld plant and Altfeld

continues to be a great enabler in our waste efforts as

distribution center during Earth Week. Reusable coffee

we find innovative ways to reduce waste and disposal

cups were also distributed at the Walldurn plant.

costs. Here are some of the innovative solutions GARP
has implemented this year:

Zero Manufacturing Waste to Landfill
Sites qualified by FY

6•T his year, our UK office in Weybridge eliminated 95% of

FY18/19

single-use plastic on-site in our employee restaurant• In our Manchester plant (Baby Care) in the Unitedand coffee shop, installing a bring-your-own culture

Kingdom, we have diverted from landfill about

for reusable coffee cups and water bottles. Our sites

1600 tons of scrap diapers/year, which are now

in Cobalt, Harrogate and our Newcastle Innovation

recycled and repurposed as absorbent materials

Center are on the path to do the same.

16
22
18

for animal litter.

11• In the USA, we send water sludge from ourmultiple Fabric Care and Chemical plants to Bio
Digestion to create Bio-methane from waste,
generation

with an external partner to take line scrap soap
products and re-purpose it to be used to clean rail•A
 fter accomplishing ZMWTL for five consecutive
years, our Akashi plant is now “All in to CLEAN.” It is
located in an industrial zone along with many otherJapanese manufacturing sites. With trucks coming inand out all day, this industrial zone has filled with litter.
In response, the Akashi plant established a volunteer
network for cleanup activities. Employees take turns toclean the industrial zone with their peers to ensure thisis not just a one-time event, but an ongoing effort.

FY12/1316• Our Edwardsville Mixing Center designed a process

Countries that are ZMWTL
BelgiumIndonesia

Singapore

BrazilIreland

South Africa

Canada

Italy

South Korea

Chile

Japan

Spain

China

MexicoThailand

Colombia

MoroccoTurkeyCzech
Republic

Nigeria

UkraineEgypt

Pakistan
Philippines

UnitedKingdom•M arktheidenfeld and Altfeld converted employee coffee

Francemachines from plastic cups to stainless steel cups. The

Germany

training team at the Mrktheidenfeld plant labeledHungary

and distributed stainless steel cups with employees’

India

PolandRomania
RussianFederation

Vietnam

FY15/16

FY13/14

11

offsetting the use of fossil fuels for energy

FY16/17

FY14/15
14

Energy companies where it is used for Anaerobiccars in their operations.

FY17/18

FY11/122

FY10/112

FY9/10

1

FY8/9

1

FY7/8

53

ENVIRONMENTAL SUSTAINABILITY

Society
Create transformative partnerships that enablepeople, the planet and our business to thrive.
• We will find solutions so no P&G packaging will find its way to the ocean.
• We will protect water for people and nature in priority basins.
• We will advance recycling solutions for absorbent hygiene products.

54

ENVIRONMENTAL SUSTAINABILITY

SOCIET Y

Creating Circular Economies
As part of our Ambition 2030, we are aiming to enable

Another example of collaboration is our Taicang plantand inspire a positive impact and have set goals thatin China. Taicang was the first site to adopt the Green

we believe will be good for consumers, good for the

Supply Chain Index (GSCI) and Blue Map APPA toplanet and good for business. We’re committed to

manage suppliers’ environmental performance. The

making an impact on society by forming the rightteam spearheaded a pilot of an end-to-end green

partnerships that enable larger, more systemic

supply chain effort in partnership with the China

solutions that one company working alone could

Institute of Public Environment Affairs (IPE), andnever achieve. From climate and energy solutions

later conducted a green supply chain workshop in

like the Renewable Energy Buyers Alliance (REBA),

April 2019 to share best practices with more than 60

to water stewardship efforts like the California Water

representatives from suppliers, customers, our plants

Action Collaborative (CWAC) to tackling plastic waste

and local businesses. These best-in-class sustainableacross the value chain with the Alliance to End Plastic

practices were published on the IPE website.

Waste, our efforts to join many stakeholders in precompetitive arrangements is a critical part of how
we will innovate and accelerate progress, and make abigger overall impact.
A great example is joining the Ellen MacArthur
Foundation’s Circular Economy 100, a precompetitive innovation program established toenable organizations to realize their circular economy
ambitions faster. It brings together corporations,
governments and cities, academic institutions,emerging innovators and affiliates in a uniquemulti-stakeholder platform.

We’re committed to making an
impact on society by forming
the right partnerships thatenable larger, more systemic
solutions.

55

ENVIRONMENTAL SUSTAINABILITY

SOCIET Y

Keeping Plastic Waste
Out of the Environment“Addressing plastic in our oceans,rivers and land is everyone’s
responsibility — including thecompanies that use much of theplastic in the world today. It’s acomplex issue with no one-sizefits-all solution, and will requirepartnership with many stakeholders
to make progress on long-term
systemic changes.”

Investing in Recycling Infrastructure

DAVID TAYLOR,
Chairman of the Board, President
and Chief Executive Officer

Research shows that nearly 80% of the plastic in

Solving the plastic waste issue requires unprecedented

are in Africa. Many of these rivers run through densely

levels of investment, novel partnerships andpopulated areas that lack suitable waste collection andaccelerated innovation — the kind that harness freerecycling infrastructure. The alliance supports an arraymarket forces and scalable solutions as powerfulof projects and partnerships that focus on solutions inengines of growth. That’s why we’ve been working

four core areas: infrastructure, innovation, education

alongside many others in the industry to take action

and clean up, with particular emphasis where the needacross the entire ecosystem — from package design

is most urgent in Southeast Asia. Coming together into collection and sorting to recycling innovation toan unprecedented alliance, member companies andfostering end markets. Only by working together willorganizations span the globe. In addition to providing

we unleash the circular economy of plastics.

financial support, member companies are contributing

In 2019 we joined more than 40 companies that makeplastic, use plastic in their products and packaging,and those who recycle and manage plastic waste toform The Alliance to End Plastic Waste. Our CEO
David Taylor took the lead to serve as the first board
chair of the new alliance, helping form the not-forprofit organization that plans to invest $1.5 billion
over the next five years to help end plastic waste in
the environment.

oceans begins as litter on land, the vast majority ofwhich travels to the sea down one of ten major rivers
around the world — eight are located in Asia, and twologistics capabilities, expertise in recapturing andrecycling used plastics and the ability to jointly create
end markets that will help bring plastic further into thecircular economy.

The Alliance to end plastic waste
is the foremost CEO-driven
international organization focusedon bringing together industry,
government, communities andcivil society in the fight toend plastic waste.

56

ENVIRONMENTAL SUSTAINABILITY

SOCIET Y

Keeping Plastic Waste
Out of the Environment
Investing in Recycling Infrastructure
We are one of the leading corporations to commit
funding to Circulate Capital, an investment
management firm launched in 2018 dedicated toincubating and financing companies and infrastructurethat prevent ocean plastic in South and Southeast
Asia. In May 2019, Circulate Capital announced ablended finance partnership with the U.S. Agency forInternational Development (USAID) to combat ocean
plastic pollution. Through this new agreement, USAID
will provide a $35 million, 50% loan-portfolio guarantee
through the Development Credit Authority (DCA)
to incentivize private capital investment and new
business development in the recycling value chain inSouth and Southeast Asia. The public sector support

In 2017, our sustainable packaging expert Gian

Sustainability Awards 2019 trophy along with honors

deBelder kicked off a coalition of companies tofor the Driving the Circular Economy category.

pioneer the Holy Grail project under the Ellen
MacArthur Foundation’s New Plastics Economy

Project Holy Grail won the Overall
Sustainability Awards 2019
Packaging Europe SustainabilityAwards in 2019.

Pioneering Projects mantle. The Holy Grail of recycling
is a collaborative effort designed to solve one of thelargest obstacles facing plastic recycling: ineffective
sorting at recycling facilities. The project investigated
how tagging of packaging can have a drastic impact
on more accurate sorting and high-quality recycling

THE HOLY GRAIL PROJECT

via tracers and digital watermarks embedded in theplastic. Improved sorting can improve both the quality
and quantity of recycled material on the market, which
would mean more plastics go back to the marketplaceand bring value instead of becoming waste.

In partnership with the Department of Education
and NGO World Vision, P&G Philippines has launchedPag-asa sa Basura, (Hope in Waste), a school-based
waste collection and recycling program to drivefrom the USAID partnership enhances the private

Over the past three years, we and our coalition

sachet and plastic collection for upcycling in schools

sector support that Circulate Capital has received

partners have invested expertise and resources inin Metro Manila. The program aims to organize andto combat ocean plastic, which is more than $100

the Holy Grail project to devise a more consistent

strengthen the solid waste management committees

million committed by the world’s leading corporations,and scalable tagging system across all packages.

of these schools and operationalize sustainable plastic

including the Company, PepsiCo, Dow, Danone,

Project Holy Grail proved the value of tracer andcollection systems. By the end of its first year, we hope

Unilever and The Coca-Cola Company. At least 50% of

digital watermark technologies, a crucial step into collect one million sachets.

the total investments covered by the USAID guarantee

determining the best direction for establishing awill be used for loans in Indonesia, Philippines,

universal method for faster processing and better

Vietnam and Sri Lanka where USAID’s Municipal Waste

results. By working with dozens of companies across

Recycling Program supports local partners in reducing

the whole value chain, including machine vendors,

ocean plastic pollution.

technology providers, material producers, packaging
manufacturers, brands, retailers and recyclers, the

CIRCUL ATE CAPITAL

Holy Grail project was able to use the technologies
in tests, making progress toward the entire industry
establishing and adhering to a standardized method.
In the Packaging Europe Sustainability Awards in
September, Project Holy Grail won both the OverallIn India, we have put in place a system to recover andrecycle packaging waste in several communities near
our operations. We are working with various waste
management companies and the industry to collect,segregate and recycle plastic packaging waste. We
have already started in Maharashtra, Madhya Pradesh
and Gujarat and will expand to eight more states
within 2019.

57

ENVIRONMENTAL SUSTAINABILITY

SOCIET Y

Keeping Plastic Waste
Out of the Environment
Reclaiming Material
and Fostering End Markets
PureCycle
While looking for more ways to incorporate additional
recycled content (PCR) into our products andpackages, we found the availability of high-quality
recycled polypropylene (rPP) was limited. Company
scientist Dr. John Layman invented a breakthroughtechnology that uses a solvent and extraction process
to remove color, odor and contaminants from usedpolypropylene to restore it to ultra-pure recycled resin.

low participation rates. Meanwhile, residential recycling

MRFF started with 8,000 households in September

programs experience high levels of contamination

2019 and will gradually scale up to reach 200,000

and increased mechanical processing costs whenhouseholds by early 2020. The households must

consumers incorrectly attempt to recycle film in theirbe equipped with covered rolling carts to keep the

curbside bins. Much of this material is currently sent

lightweight flexible material dry and stop it fromto landfills due to lack of consumer education, lackblowing away, so we and others have worked withof collection and processing infrastructure, and lack

The Recycling Partnership to offer grants to local PAof established end markets. We have joined several

communities to purchase covered carts. The local

collaborative efforts to identify and test a range ofrecycling facility, JP Mascaro, has upgraded theirsolutions that can then be scaled up to accelerate

equipment to enable efficient sorting and baling

flexible packaging into a true circular economy.

of the material.

To drive scale, we licensed the technology to PureCycle

Materials Recovery for the Future (MRFF)

Technologies, which completed construction of its

We joined MRFF as one of the early supporters who

feedstock evaluation unit in July 2019 and plans to

saw the potential to test in-market and scale the best

open its full-scale production plant in Ohio in 2021.

solutions to increase household recycling of flexible

The full-scale plant is expected to produce more thanpackaging for eventual sale as PCR. MRFF brings

105 million pounds of virgin-like polypropylene pertogether leading companies across the value chain

year, fostering a substantial increase in demand for

to fund and collaborate on a pilot to demonstrate

waste polypropylene and thus providing alternatives tothe economic and technical feasibility of adding

landfilling or exporting plastic waste. Many consumer

flexible plastic packaging to single-stream household

packaged goods companies have already committed

recycling. The pilot was launched in Pennsylvania in

to purchase the material starting in 2021. In fact, thethe summer of 2019 to demonstrate how to effectively,

demand is so great that PureCycle has sold out ofefficiently and profitably recycle flexible packaging by:

all plant one production for the next 20 years and isplanning to build a second plant in Europe.
Flexible packaging refers to any lightweight plastic• Reducing labor costs at MRFFs• Increasing the quality of paper bales

packaging that is able to flex or wrap, such as plastic• Creating a new source of revenue withpouches, overwraps and bags. Today, flexible plastic is

the “rFlex” baleused in a variety of packages for foods, personal careand household goods, but not widely collected forrecycling. Current consumer take-back programs forflexibles at retail storefronts in the U.S. and Europe see• Eliminating the need to dispose of flexible
packaging in landfills

We invented a breakthroughtechnology that restores usedpolypropylene to an ultra-purerecycled resin.

58

ENVIRONMENTAL SUSTAINABILITY

SOCIET Y

Keeping Plastic Waste
Out of the Environment
Reclaiming Material and Fostering
End Markets (continued)
The Recycling Partnership Film and Flexibles
Taskforce
The Recycling Partnership (recyclingpartnership.org)
is a national nonprofit organization that leverages
corporate partner funding to transform recycling instates, cities and communities all across America. It’s
the only organization in the country that engages
the full recycling supply chain from the corporations
that manufacture products and packaging to local
governments charged with recycling, to industry
end markets, haulers, material recovery facilities andconverters. We are one of five companies serving
as anchor funders and advisors for The Recycling
Partnership’s new Film and Flexible Taskforce
formed in 2019. The taskforce will employ a fourstep framework that includes data gathering andbenchmarking, goal setting, establishment of pilot

CEFLEX

metrics, best practices, accountability and more. WWF

CEFLEX is a collaborative effort underway acrosshopes to accelerate change at an even faster rate

Europe working to identify solutions. We continue toand identify new solutions to old problems facing

participate in CEFLEX (Circular Economy for Flexible

the planet.

Packaging) and have done since 2016. CEFLEX is ona Mission Circular: , the goal of which is to collect all
flexible packaging in Europe by 2025 and for 80% of it
to be recycled and be returned to the economy. The
CEFLEX project is a true cross-value chain collaboration
where more than 130 companies and organizations
have committed to implementing the actions torealize the circular economy for flexible packaging.
The big focus is on redesigning flexible packaging(enabled by the CEFLEX design guidelines) andcreating sustainable end markets, both in and outside
packaging applications. A short video providing morebackground is below.
CEFLEX MISSION CIRCUL AR

We are proud to be a founding signatory of the WRAPUK Plastics Pact, a bold and unique initiative thataims to transform the UK’s plastic system by 2025.
By bringing together the entire plastics value chain
behind a common set of ambitious, collective targets,it will move the UK toward a system that keeps plastic
in the economy and out of the environment. It willencompass innovation, research and new businessmodels to rethink and redesign what packaging we
as an industry put in the market and how we can all
encourage greater reuse of packaging. Launched on
April 26, 2018, the pact now has more than 100 UK
organisations from across the entire plastics value
chain signed up as members and supporters.

programs and determining the means for long-term
scalability. Initial data gathering will include capture

Aligning consistent metrics, common goals

rate studies, consumer insights research and analysis

When it comes to tackling plastic waste, we share theof end markets, among other areas. Goal setting andWorld Wildlife Fund’s No Plastic in Nature by 2030

pilot programs will include partnerships with cities andvision and agree that a clear roadmap with measurable,community recycling systems over a multi-year period,

concrete action steps is necessary to achieve our goals.

as well as piloting pathways of feedstock for potential

That’s why we are one of the six Principle Member

chemical recycling solutions.

companies to join ReSource: Plastic, WWF’s newest
global initiative bringing companies together to

RECYCLING PARTNERSHIP

help solve the plastic waste issue. Introduced in May
2019, Resource: Plastic maps out a systems approachin partnership with many stakeholders — common

We are a founding
signatory of the WRAPUK Plastics Pact, an
initiative that aims totransform the UK’s
plastic system by 2025.

59

ENVIRONMENTAL SUSTAINABILITY

SOCIET Y

Responsible Consumption
Accelerating the growth and developmentof renewable energy can happen if
industries join joins forces to scale progress.
That’s why we are actively engaged injoint initiatives to help advance broader,collaborative efforts on climate change.
We participated in the 2019 global Climate Change
Conference, held under the auspices of the UN
organization UNFCCC (United Nations Framework
Convention for Climate Change). The global summit,
called COP24 (24th Conference of the Parties), is thebiggest international forum to tackle the issue ofclimate change. We joined the round table discussion
on UN Sustainable Development Goal 12: ensuresustainable consumption and production patterns.
The objective of the session was to bring together
perspectives from government representatives,
cities, NGOs and businesses to initiate a debate on
the role of these actors to accelerating the climatechange agenda.

Diaper Recycling

generated by approximately one
million people. The technology iscreating secondary raw materials
that can be used in new products
and application, giving used diapers
a new life.
We are committed to rolling AHP
recycling out globally to maximize
the positive impact this technology
can have. For example, we started
a pilot program in the Netherlands
in partnership with the Municipalityof Amsterdam and others. We
placed 12 smart bins near day-care
centers and drug stores in two
neighborhoods of Amsterdam.
Parents registered to the program
via a new Pampers recycling app.
Since January 2019, more than 400
families have registered and joined
the program. In total, more than
20 tons of diaper waste — morethan 100,000 diapers — havebeen collected for recycling. It is

Pampers is the world’s first diaper brand to use newrecognized and funded by the EU

advanced technology to recycle diapers — all diaper

through the Bio-Based Industries

brands — to high-value applications and give used

(BBI) project called EMBRACED. And

diapers a new life. The unique technology was invented

we are exploring how to scale this even

by FaterSmart, a joint venture of the Company andfurther. We are committed to being

Angelini in Italy, and is leading the way in complete

operational in ten cities by 2030.

recycling systems for used absorbent hygiene
products (AHPs) such as baby diapers. The technology
is already proven and live in Italy, operating at industrial
scale and capable of recycling 10,000 tons of used AHP
per year. This corresponds to the amount of AHP waste

100,000

More thandiapers have been collected forrecycling through the Diaper
Recycling Pilot Program

60

ENVIRONMENTAL SUSTAINABILITY

SOCIET Y

Protecting Water for
People and Nature
Growing pressure on water resources inmany regions has the potential to impact
suppliers, manufacturing sites and thecommunities we serve. This inspired ourrenewed focus on water into the next decadeof our goals as we aim to protect water for
people and nature in priority basins.
Across the world, and even within countries, there

Country# Priority Basins

Priority Basin

3

Xuanhui He
Hai He Delta
Tuo Jiang

Mexico3

Moctezuma
Laja
Lerma/Salamanca

USA

5

Lower Bear/Malad, Great Salt Lake
Lower American, Lower Sacramento/Putah
Calleguas

India

3

SutlejYamuna 1
Musi/Aler

Saudi
Arabia2

Saudi Arabia West Coast 5
Persian Gulf Western Coast 2

Spain

1

SeguraTurkey1

KocaeliChina

is a diverse mix of landscapes, cultures, economies
and climates that make water issues complex andrequire solutions unique to each river basin. That
is why we embarked on a data-based water risk
assessment with expert partners at WRI, WWF andERM to identify the areas of the world we should focus
on for maximum positive impact. Using data from the
WRI Aqueduct Water Risk Atlas and other sources, 18
priority basins across seven countries were identified
by understanding where our consumers, suppliers
and facilities are most exposed to current and futurewater risks.

61

ENVIRONMENTAL SUSTAINABILITY

SOCIET Y

Protecting Water
for People and Nature
Progress
Now that we’ve identified where our consumers,
suppliers and facilities could be most impacted bycurrent and future water risks, it’s time to identify
shared water challenges, potential partners andviable solutions for each basin. We’ve already madeprogress toward understanding the situation in eachof these unique areas and will learn even more in 2020
after completing the Alliance for Water Stewardship(AWS) Standard 1.0 steps 1-3 at our Tier 3 facilities (seepage 12 of v.1.0 for more details). Based on what we’ve
learned so far, we’ve already moved forward with local
engagement in the U.S. and Mexico.

United States

MexicoFive of our 18 priority basins are in the western U.S., andThree of our 18 priority basins we are focusing on thisthe majority of those are in the state of California. There

next decade are in central Mexico, including the basin

is already a lot of great work going on within the statethat surrounds Mexico City. Over the past year, P&G has

to protect and enhance California’s water resources.

engaged with local experts at The Nature Conservancy

In order to contribute to these efforts, we joined ato learn more about the water issues and potential

platform of diverse stakeholders who came together

solutions in and around the city. As a first step towards

to pursue collective action projects that will improvebeing part of the solution, we joined the Mexico City

water security in California. The California Water

Water Fund: Agua Capital. Agua Capital was created

Action Collaborative (CWAC) was created in 2014 and isin 2018 as an innovative platform for collaboration

focused on building social capital for improved wateramong different sectors to contribute to the water

management, returning water to natural systems

security of Mexico City with emphasis on nature-based

and driving corporate water stewardship aligned withsolutions. P&G, along with the other board members,

state and global water stewardship goals. We hopeintend to address the overexploitation of the aquifers,

that being a part of this multi-sector organization will

inefficiencies in infrastructure and operations, flood

enable us to make a meaningful impact in our priority

management and improvement of wastewaterbasins in California.

treatment and reuse.

THE CALIFORNIA WATERACTION COLL ABORATIVE

We’ve come a long way already in our water
stewardship journey, and will go even further working
in collaboration with others to solve the challenges
facing our priority basins. We look forward topartnering with others to work toward our goal toprotect water for people and nature in priority basins
and sharing our progress along the way.

AGUA CAPITAL

62

ENVIRONMENTAL SUSTAINABILITY

SOCIET Y

Reinventing Waterfor Urban Living
It is predicted that by 2030, there will be a 40% gap

The 50 Liter Home Concept, spearheaded by thein global water supply and demand. Pressure on

Company, is bringing together companies, policy-

water resources is growing, and some cities, like Cape

makers and communities to develop and scale

Town, South Africa have already experienced Day

innovations for the home that help solve the urban

Zero: a day when the city nearly ran out of water andwater crisis. It is an ambitious undertaking thatthe government required all four million residents torequires cross-sector collaboration to harness diverse

reduce their water use at home to 50L per person.

expertise and resources, like home fixtures andNot only is water essential for the daily operation of

appliance makers, city governments, utilities, tech

our facilities and production, it is also an integral part

partners, NGOs, real estate developers, engineering,of many of our products in the home. Whether it’shome design and more.

bathing, laundry, cooking or dishes, homes use 10%of the global water supply, reinforcing the need forrethinking the future of water consumption.
Most homes in the U.S. use up to 500 liters of water
per day, per person — a rate that is not sustainable.
Several years ago, we started exploring innovations inwaterless and water-efficient products, purification
systems and experience platforms. During the World
Economic Forum Davos in January 2019, we led a multifaceted discussion to explore whether homes could
run at 50 liters and still feel like 500 liters, unlocking
solutions for sustainable, affordable living.

Most homes in the U.S. use up to

500 litersof water per day, per person —a rate that is not sustainable.

WWW. 50LHOME.COM

Major cities aroundthe world face the prospectsof a water crisis, and 14 of
the world’s 20 largest cities
are already experiencing
water scarcity.

63

ENVIRONMENTAL SUSTAINABILITY

Employees
Engage and equip P&G employees tobuild sustainability thinking and practices
into their work and their communities.

64

ENVIRONMENTAL SUSTAINABILITYEMPLOYEES

Employees
Ambition 2030 Leadership Award
Leadership accountability is critical to our Ambition
2030 goals, as it is only by making sustainability an

We want to ensure thatsustainability is built in,
not bolted on.

integral part of how we deliver business results that
we’ll be able to achieve our goals. We want to ensurethat sustainability is built in, not bolted on. To recognize
this effort, we created a new Ambition 2030 LeadershipAward which acknowledges the leadership andcommitment required to deliver meaningful resultsin the area of sustainability. The award will recognize
business leaders at our Band 5 or 6 level who havecontributed to the significant advancement of our
Ambition 2030 goals in one or more of our four
core focus areas: brands, employees, supply chain
and society.

Earth Week Inspires Action
Across the world, we organized a range of Earth Week
2019 volunteer activities designed to raise awarenessand take action to reduce our environmental footprint
and bring about a healthy planet. Here are somehighlights:•O ur Taicang plant successfully engaged employees
via three days of sitewide activities. Employees
participated in group discussions to identify newideas for meeting site sustainability goals, a “green
corner” photo sharing program where employees
could upload their nature photos to WeChat, and afishing outing in the site’s natural clean pond. In thisprogram, employees participated in sustainability
activities for energy, water and waste savings in thesite’s daily operation.

•A ll our sites across Northern Europe participatedin a variety of activities to remind employees of oursustainability efforts and reinforce the idea that
small changes can make a world of difference under
the theme of Sustainability at Scale. This year, ourNorthern Europe Head Office in Weybridge UK
partnered with Do Nation, a start-up company with a
mission to make people live a little bit greener everyday. Together we ran a three-month program—from
February to April —that saw employees pledge tomake their daily routines more sustainable. As resultof employees’ collective commitments, we saved
more than 38,900 tons of carbon.

65

ENVIRONMENTAL SUSTAINABILITYEMPLOYEES

Employees
Gardens Spring Up at Hair Care Plants

Positive Employee Survey Results

Inspired by our recent Kew Gardens partnership andCommunity Volunteers Educate andInspire Action

in line with the Ambition 2030 Corporate goal to

Our North Africa and Levant region have partnered

they are contributing to the Company’s sustainability“engage, equip and reward employees for building

with Youth Think Green (YTG) NGO to take action in theefforts in our annual employee survey. This percentage

sustainability thinking and practices into theircommunity, working with young people on a range ofincreased more than five points compared to 2018.

everyday work,” we are leveraging our scale by creating

environmental activities:

Many employees provided perspective that theygardens in all our manufacturing sites. These gardens
support sustainability-related challenges like enabling
pollination, protection of native species, and water•P reparing small pots of green herbs and flowers thatkids could take home for their gardens.

conservation. We are leveraging the current efforts of•R aising awareness around ways to prevent ocean

gardening, landscaping and maintenance to create aplastic waste with an upcycling activity, like taking

positive sustainable impact for our people, brands andused plastic bottles and making them into toys, pencil

nature while beautifying our sites.

cases, napkin boxes and mobile hangers.

Among our accomplishments this year:•E mbracing the culture of renewable energy by•P lanting 16,000 square meters of beautiful gardens inall our Hair Care plants that are sustainably built withreused materials and recycled water.
•A ctively tackling pollination issues, protection ofnative plants and water conservation.

of sorting waste and making neighborhoods cleaner
are the objectives of Clean Earth. This new program
local help educate students on these topics. They
joined with students and teachers to collect and sort•G rowing native plants even at our sites located inwater-stressed regions like Dammam in Saudi Arabia,
Mariscala in Mexico and Port Qasim in Pakistan.

corporate partnerships.

Helping young people understand the importancepeople and brands.

ingredients used in our products).

the greatest difference: our brand innovations andcharger.

beautification that drives a positive impact in ouras pollination around a brand context (e.g, planting

the chance to put more effort into where we makesystem and make-your-own solar-powered mobile

launched in Poland and enabled employees to visit

biodiversity, native plants and elevating topics suchvalue the Company’s work in the space and welcome

reviewing how to calculate a base for a solar panel•C reating a win-win model of sustainability and•B ringing our people closer to the themes of

In March 2019, more than 80% of employees declared

litter from local parks, playgrounds and streets. Morecleaning days are planned as well as expansion into the
Czech Republic and Hungary.

80%

More thanof employees declared
they are contributing
to the Company’ssustainability efforts.

66

ENVIRONMENTAL SUSTAINABILITY

Tracking Our Progress
Health and Safety
The health and safety of our employees and our

Total Incident Rate
(Injury and illness per 100 employees)

contractor partners is a foundational to the Company
and directly linked to our core values.
• Nothing we do is worth getting hurt

0.25

2019

0.24

2018

• Safety can be managed• Every injury and illness can and should be prevented

0.23

2017

• Safety is everyone’s responsibility
The Company tracks our total injury rate (TIR) and lostwork day case rate (LWDC). TIR includes any injury that
requires medical treatment beyond first aid, including

Total Lost Work Day Case Rate
(Lost and restricted work day cases per 100 employees)

work restrictions. LWDC is a subset of all injuries that
0.14

were serious enough to result in the individual missing
the next assigned work shift. Our TIR target for both
employees and contractors is 0.35 injuries per 200,000
hrs. No targets are set for LWDC rates. To achieve theseresults, we have implemented an integrated Health,
Safety and Environmental program. This program sets
expectations that enable evaluation of each site’s
leadership involvement, behavior and culture,equipment design and maintenance standards, andtraining and procedures. We specifically focus onlife-safety critical systems such as electrical safety,
confined space entry, fall prevention/protection,material handling and isolation of hazardous energy.
The TIR and LWDC rate results are summarized in thecharts to the right.

0.13
0.12

2019
2018
2017

The health and safety of
our employees and ourcontractor partners is afoundational to the Company
and directly linked to ourcore values.

67

ENVIRONMENTAL SUSTAINABILITY

Tracking our Progress
We have more than 43 manufacturing plants
and technical centers that are celebrating
more than one million safe work hours
without a lost workday injury.
Audit Programs
Our internal HSE audit program is designed toensure sites are complying with both local regulatory
requirements as well as corporate polices, standards
and procedures. These audits are completed at allplants, innovation centers and distribution centersworldwide. Recently, we modified the audit program
to eliminate numerical scores and move to identifying

Top 5 Sites with the Highest Number of Employee Safe Working Hours
Manufacturing Site

Safe Hours*

GBU

RegionIbadan12,000,000

Fabric and Home Care

IMEA

Takasaki

7,400,000

Fabric and Home Care

Asia

Dammam7,100,000

BeautyIMEA

Boryspil

7,000,000

Baby, Feminine and Family Care

EuropeXiqing6,300,000

BeautyAsia*Rounded down to the nearest 100,000

specific findings and classifying those findings as critical,
major or minor. All findings are tracked to closure by
the corporate HSE. The fundamental philosophy is to
use the standards worldwide, implemented by trained
HSE leaders and audited each year using a consistent,
comprehensive approach. Audits measure performanceagainst mandatory standards and operating procedures.
The target is to have no critical findings and continually
reduce the number of major or minor findings. This year,
96% of the sites were assessed.
Sites Conducting Annual Audits(Percentage)

96%
99%
97%

2019
2018
2017

Technical Center

Safe Hours*

GBU

RegionBrussels Innovation Center

7,200,000

Technical Center

EuropeSingapore Innovation Center

3,000,000

Technical Center

Asia

Kronberg Innovation Center

2,500,000

Technical Center

EuropeLondon Innovation Center

2,400,000

Technical Center

EuropeNewcastle Innovation Center

2,100,000

Technical Center

Europe

68

ENVIRONMENTAL SUSTAINABILITY

Tracking Our ProgressCompliance with Laws
and Regulations

Notices of Violation

There are numerous health, safety and environmental

charts below summarize data from the last three years

requirements worldwide. Plants are subject to safety

and provide perspective on notices of violation (NOVs)

rules and emission limits with operating requirements

received during FY18/19. Note, several fines are stillthat may be embodied in sources such as statutes,

under review but are included in the total numbers.

regulations, laws and permits. It is our intent tocomply with both the letter and the spirit of statutes,
regulations, laws and permit requirements. Identifiedcompliance issues are treated seriously, and allnoncompliance matters are resolved as expeditiously
as possible.

We continually strive for zero notices or penalties. The

A breakdown of NOVs is provided below:

Year

Number2019

40$62,0602018

17$249,4302017

24$102,804

Violation

Numberof NOVs

Fines

Fines

Water-Based9$11,064

Air-Based

8$3,466

Solid-Waste-Based

4$2,700Paperwork

0$0Transportation-Based

4

$0

Other

4

$0

Worker Safety11$44,830Total

40$62,060

ENVIRONMENTAL SUSTAINABILITY

.14
.14

FY17/18
FY17/18.18.18

FY16/17
FY16/17

Particulate Matter
Matter (PM)(PM)
Particulate

Tracking our Progress
Air Emissions
Each site assesses total suspended particulates,
volatile organic compounds (VOCs), carbon
monoxide (CO), nitrogen oxides (NOX) and sulfur

1.0
1.0

Global Air Emissions
Global Air Emissions
Thousands of metric tons
Thousands of metric tons

the last three years.

1.8
1.8

FY17/18
FY17/181.8
1.8

FY16/17
FY16/17

Nitrogen Oxides
Oxides (NOx)(NOx)
Nitrogen

Volatile Organic Compounds
Volatile Organic Compounds

oxides (SOX). The chart below summarizes data from

FY18/19
FY18/19

2.4
2.4

FY18/19
FY18/19

1.6
1.6

FY18/19
FY18/19

1.6
1.6

FY17/18
FY17/18

2.5 FY17/18
FY17/18
2.5

1.7 FY16/17
1.7 FY16/17

2.5 FY16/17
FY16/17
2.5
Carbon Monoxide
Monoxide (CO)(CO)
CarbonSulfur Oxide (SOx)Sulfur Oxide (SOx)

2.0
2.0

FY18/19
FY18/19.15.15

FY18/19
FY18/19.14.14

FY17/18
FY17/18

2.2
2.2

FY17/18
FY17/18.18.18

FY16/17
FY16/172.2
2.2

FY16/17
FY16/17

Particulate Matter (PM)Particulate Matter (PM)

1.0
1.0

FY18/19
FY18/191.8
1.8

FY17/18
FY17/181.8
1.8

FY16/17
FY16/17

Nitrogen Oxides (NOx)
Nitrogen Oxides (NOx)

2.4
2.4

FY18/19
FY18/19

2.5 FY17/18
2.5 FY17/18
2.5 FY16/17
2.5 FY16/17
Carbon Monoxide (CO)

69

70

ENVIRONMENTAL SUSTAINABILITY

Awards and Recognitions
LEED

Location

We are committed to designing sustainability into ourSome recent projects include our Amiens distribution

facilities, including pursuing LEED certification for all

facility (first P&G LEED facility in France), Albany

new facilities. We now have 36 projects sites with LEED

Georgia (applying sustainable design principles as they

Silver or Gold certification.

rebuild from a tornado), and our new greenfield site inTabler Station West Virginie which received multiple
LEED Silver certifications. We are also very proud of
our SK-II production site in Shiga, Japan which wasawarded LEED Silver under the new LEEDv4 standard,
the first manufacturing site (from P&G or any othercompany) in Japan to achieve this honor.

AmiensBox ElderCincinnati
AlbanyGyongyos

Tabler Station
Greensboro

Taicang
Guangzhou

Hyderabad
Lagos

Ben CatCruz

Albany, GA, U.S.

1*

Amiens, France

1

Ben Cat, Vietnam

2

Box Elder, UT, U.S.

2*

Cabuyao, Philippines

1

Cincinnati, OH, U.S.

2

Cruz, Brazil

1

Greensboro, NC, U.S.

1

Budapest / Gyongyos, Hungary

3

Guangzhou, China

11Hyderabad, India

1

2

Jakarta, Indonesia

4

Lagos, Nigeria

2Singapore1

Tabler Station, WV, U.S.

2

Cabuyao
Singapore

Jakarta

Gold Silver

Taicang, China

1

3

Total

4

32

*Represents a LEED v4 Certification at this location.

71

ENVIRONMENTAL SUSTAINABILITY

Environmental Resource and Waste Summary
The table below reports environmental statistics for Manufacturing Operations in our Global Business Units, Technical Centers and Distribution Centers.
Totals (absolute units x 1,000)

2019 Global Business Unit Detail1 (absolute units x 1,000)

2019

2018

2017

Baby, Feminineand Family Care

BeautyFabric andHome Care

Grooming

Health CareOther

15,175

15,144

14,640

2,822

1,812

9,880

174

487

N/A

674

633

676

Solid Waste Generated

655

624

632

254

71

233

34

35

27

% Recycled/Reused Waste

95.8%

94%

92.6%

94.1%

97.6%

96%

100%

100%

94%

% Disposed — Hazardous

0.4%

0.4%

0.5%

0.0%

0.3%

0.8%

0.0%

0.0%

2.1%

% Disposed — Non-Hazardous

3.8%

5.6%

6.9%

5.9%

2.1%

3.2%

0.0%

0.0%

3.9%

Effluents (excluding water)4

16

21

19

4.26

3.06

7.42

0.25

0.82

0.06

Air Emissions

7

8

8

4.82

0.22

1.83

0.04

0.10

0.18

8

19

7

3.17

0

5.04

0.09

0.05

0.14

61,17660,89160,42339,307

3,495

11,192

2,424

1,834

2,924

4,050

4,053

4,559

2,539

266

664

198

156

227

2,210

2,143

2,122

1,614

91

321

65

43

76

1,840

1,910

2,437

925

175

343

133

113

151

57

68

89

63,12563,666

61,826

38,634

5,525

14,267

1,149

1,601

1,949

Production (metric tons)
Finished Products Manufactured2
Raw Materials from Recycled Sources

3

Manufacturing Waste (metric tons)

Other Waste (metric tons)

5Construction & Demolition Waste
Energy and Greenhouse Gas (GHG)
Energy Consumption (gigajoules)
Total GHG Emissions (metric tons)

6

Scope 1 — Direct GHG Emissions (metric tons)
Scope 2 — Indirect GHG Emissions (metric tons)

7

Biogenic GHG Emissions (metric tons)
Water (cubic meters)
Water Consumption

1 Baby, Feminine and Family Care includes Baby Care, Feminine Care and Family Care. Beauty includes Beauty Care andPersonal Beauty Care. Fabric and Home Care includes Fabric Care, Home Care and Chemicals. Grooming includes Blades
and Razors and Devices. Health Care includes Personal Health Care and Oral Care. Other includes major stand-alone
offices/technical centers that support the business units and our largest distribution facilities. Numbers do not include
production from contract manufacturing operations.
2E stimated from FY18/19 finished product production volumes. Updated to exclude intermediate products that are used as
raw materials in other P&G categories.

3 Data is tracked at a corporate level.
4 Wastewater chemical oxygen demand (COD).
5 Air emissions include particulates, SO2, NOX, CO and VOC.
6 Total GHG emissions = Scope 1 + Scope 2. Scope 2 emissions calculated using a market-based method.
7 Market-based Scope 2 GHG emissions. Note: Location-based Scope 2 emissions 2019 were 2,544,082 metric tons.

72

ENVIRONMENTAL SUSTAINABILITY

Global Measurement andAdditional Operational Data
2020 Goal Measurement Systems
We go to great lengths to ensure rigor, accuracy
and transparency in our reporting. Below, we shareadditional information on some of our 2020 Goal
Measurement Systems to help ensure clarity andtransparency on the data we are reporting.
Greenhouse Gas Emissions

Low-Energy Cycle Machine Washing Loads
Each year, we carefully review habits and practices
data to help us assess progress against our low-energy
washing goal. The objective of this goal is to get
consumers to use low-energy cycles, and we can playa significant role in that by providing detergents withoutstanding performance in low-energy cycles.
Our benchmark for qualifying low-energy cycles

For the purposes of monitoring progress against ourhas been 0.4 kWh per wash cycle. Cycles included

goal and listing emissions levels in charts and graphs,

in our tracking are cold cycles in traditional top load

we utilize market-based Scope 2 GHG emissions. The

machines and cold and warm cycles in all HE machines

WRI/WBCSD GHG accounting protocol provides(top & front loading).

additional perspective on market-based versus
location-based GHG emissions.
GHG PROTOCOLS

Packaging Reduction
The average packaging reduction is calculated using
products that represent the top 70% (by volume) of thecategories that have the largest impact on packaging
use (Fabric Care, Home Care, Baby Care, Feminine Care,Our GHG emissions data has been verified by

Family Care, Oral Care, Personal Cleansing Care, Shavean external third party, Lloyd’s Register Quality

Prep, Hair Color and Hair Care). While a subset of overall

Assurance (LRQA).

data, we believe it is representative of overall corporate
data and focuses resources on the biggest SKUs and

LLOYD’S REGISTER QUALIT Y ASSURANCE

categories with the biggest impact on packaging.

We go to great lengths
to ensure rigor, accuracy
and transparency in
our reporting.

73

ENVIRONMENTAL SUSTAINABILITY

Global Measurement andAdditional Operational Data
2020 Goal Measurement Systems
Recyclability of Packaging
For purposes of tracking progress against our goal, apackage is considered recyclable when there is an

Renewable Energy

Baseline Restatement

When calculating the renewable energy powering ourThis year, we adjusted our GHG emissions baseline inplants, we include the renewable energy level of theaccordance with the principles in the WRI and WBCSD

local electrical grid that provides power to the plant.

Corporate Standard for Greenhouse Gas Accounting.

in-market, at-scale recycling system in place for that

Water Conservationmaterial type (e.g., collection, sortation, processing

Our goal to reduce water use in manufacturing

for end use and established end-market for collectedfacilities by 20% per unit of production applies tomaterial). While we require large-scale systems tofreshwater consumption, which means freshwater

be in place in at least one location, we do not require

intake from the following sources:a minimum percent access or recovery rate per
package in every country or market for the package
to be considered recyclable for purposes of tracking
progress versus our goal.
Paper Packaging

Changes included adjustments for acquisitions anddivestitures as well as other minor modifications andcorrections to historic data. Our original baseline was5,466,601 metric tons. Our revised baseline, which wewill use for calculating progress versus GHG emissions
reduction goals, is now 5,407,790 metric tons. As• Tap water: water supplied by municipalities or third-

part of this work, we also updated our baselines forparty companies via piping systems or trucks, at anyenergy, water and waste. Original energy baseline wasquality they deliver• Ground water from site wells

67,904,220 gigajoules. It is now 63,755,819 gigajoules.
Original water baseline was 77,049,114 cubic meters.
It is now 75,029,004 cubic meters. Original waste

Data for calculating progress versus our paper• Surface water: non-brackish as rivers, lakes, creeks,

disposed was 354,563 metric tons. It is now 335,488

packaging goal was self-reported by our suppliers.

etc., at any quality they deliver

metric tons. The baseline year remains the same: they

The data collected this year covered materials
procured directly by the Company as well as contractor
manufacturers and covered more than 95% of ourglobal spend.

Venezuela
Due to current conditions in Venezuela and consistent
with how we have approached other corporate
reporting, we have excluded our three facilities in
Venezuela from the manufacturing data included inthis report. For transparency, the estimated combined
data from these three sites within our 2010 baseline
was energy (353,752 gigajoules), water (233,188 cubic
meters), and GHG emissions (20,589 metric tons),
which represents less than 0.5% of the respective
global footprints. These changes have already been
incorporated into the baseline restatement.

Company’s FY09/10.

BACK TO START

Data in this report covers the period of July 1, 2018 to June 30, 2019. Financial information is given in U.S. dollars.
Questions related to this report can be directed to mediateam.im@pg.com. This report references
GRI 102: General Disclosures 2016. A GRI Content Index for this report can be found here.