Len Sauers at Opportunity Green 2009

Designed to MatterLen Sauers, PhD

Vice President, Global Sustainability

SocialResponsibility

Environmental Responsibility

Sustainability… better quality of life for

everyone, now and for generations to come

P&G Defines Sustainability Broadly…

2012 Strategies

Strategy 1:Products

Strategy 2:Operations

Strategy 3:Social

Responsibility

Strategy 4:Employees

Strategy 5:Stakeholders

Product Innovation

Product InnovationConsumer Insight

Sustainable Innovation Products

Products with a significantly reduced (>10%) environmental footprint versus previous or alternative products…and no trade-offs for the consumer.

Product InnovationScience Based Approach

ProductType

Mat

eria

ls

Packa

ging

Transp

ort Ext

ernal

Disposa

l Diaper

Feminine Pad

Bathroom Tissue

Paper Towel

Laundry

Liquid Dishwash

Liquid Fabric Softener

Shampoo

0.0E+00

5.0E+07

1.0E+08

1.5E+08

2.0E+08

2.5E+08

3.0E+08

3.5E+08

Energy (GJ)

Life CyclePhase Use

in th

e Hom

e

P&G Man

ufact

ure

Transp

ort In

tern

al

Diaper Bathroom Tissue Laundry Liquid Fabric Softener

Feminine Pad Paper Towel Liquid Dishwash Shampoo

P&G’s Energy Footprint

Product InnovationCold Water Washing

Environmental Benefits of Cold Water Washing

Great ImpactIf every U.S. household used cold water for laundry, the energy savings would be 70 to 90 billion kilowatt hours per year.

These savings would translate into 34 million tons of carbon dioxide per year not released into the environment, which is nearly eight percent of the Kyoto target for the U.S.

Changing Consumer Behavior….In the UK, 23% now wash in 30°C, up from 2%. Over 58,000 metric tons of carbon dioxide emissions prevented.

In the Netherlands, 52% now wash in 30oC, up from 7%.

Product InnovationDramatic Changes in Formulation

40-50%Less water to manufacture

30-40%Less energy to manufacture

20-50%Less energy by washing

in low temperatures

14-40%Less packaging

40-57%Less trucks to transport

A Dramatic Reduction in Overall Environmental Footprint

Innovation in Packaging

Partnered with WRAP in UK to deliver innovation that enables packaging reduction without compromising integrity.

Before BOWS38.7 grams

After BOWS33.2 grams

ThinnerThicker

1 %Less Plastic4

New Pantene execution in China

170 Metric Tons

of Packaging Saved =

2 Boeing 737 Jets

Educational outreach to millions of consumers with products, tools and information to enable simple household changes to save energy, save water and reduce waste.

Built on science, unique consumer knowledge and partnerships

Aimed at enabling meaningful, measurable impacts – without sacrificing value or performance

Launched in Western Europe in 2006; Canada in 2007; U.S. test pilot in Cedar Rapids, IA in 2009

OperationalImprovementsEnd-to-End Matters

End-to-End Strategy

Operational Improvements

Manufacturing

Waste Water Energy and CO2

Waste disposal decreased

86%AT BANGKOK’S BEAUTY CARE

PLANT

Since 2006,improvements made

company-wide resulted in

20%METRIC TONS OF

PACKAGING MATERIAL AVOIDANCE

Multiple projects in Western Europe each

resulted

24-28 m3

(cubic meters) of water savings per unit of

production

Manufacturing

77 Point Plan rates facility’s potential impact on C02, energy, waste, water and environmental quality

Used for new construction and to review existing facilities

•Urlati, Romania: Beauty Care Plant• Recovers heat used in manufacturing to

heat the building and water

•Euskirchen, Germany: Customization Center• First P&G building in world with operating

solar photovoltaic system

Conserving through Smart Eco-Design

Manufacturing

GARP: Global Asset Recovery Purchases•Turns waste and nonperforming inventory into something useful

China: Softer, younger-looking leather•Converts facial cream components for use in leather care

Budapest, Hungary: creative heating source•Scrap Always feminine protection pads are shredded and burned to provide heat for a cement factory

Giving Waste New Life through Re-use

Finished Product Logistics

By using river and ocean routes, CO2

emissions are reduced by at

least

60%4,000METRIC TONS BY

YEAR

Intermodal transportation shifts away from trucks and planes in favor of boats and trains, saving fuel and reducing C02 emissions.

Optimizing Outbound Transportation

Social ResponsibilityCommitment Matters

Improving life for millions of children in need every year

Leveraging the power of P&G brands

Social ResponsibilityPampers and UNICEF: Working Together for Healthy Babies

Goal: eliminate maternal and neonatal tetanus by 2012 by providing vaccines

Since 2006,

45.5 million

WOMEN AND THEIR BABIES PROTECTED AGAINST

MATERNAL AND NEONATAL TETANUS

Social ResponsibilitySafeguard: Building a Great Wall of Hygiene

Broadens health hygiene education and builds sanitation facilities in rural China to encourage handwashing.

Consumer purchases of Safeguard help fund theProgram.

Social ResponsibilityP&G and Shiksha - Increasing Access to Education in India

87,000Children reached in 5 years, translating to

85Villages free of child

labor

4,495Children immunized

2,623Children mainstreamed

into formal school

100Full enrollment villages

Employee EngagementResponsibility Matters

Employee EngagementEarth Day Events: A World of Progress

78 sites around the world held local events around four themes:

•Reducing travel•Reducing waste•Reducing energy use•Volunteering through Live, Learn & Thrive

Employee EngagementSome Highlights from the Week’s Activities:

14METRIC TONS OF

MATERIAL ARE NOW RECYCLED PER

QUARTER

70%BOTTLED WATER CONSUMPTION

REDUCED

Recycled cardboard volume has increased

3XTO 350 KILOGRAMS

FROM 100 KILOGRAMS

Employee EngagementOngoing Events: Maintaining Engagement Year-Round

Employees participate in ongoing programs to maintain engagement:

• Sustainability Ambassador Network• Idea Challenges• Sustainability Weeks• Employee Sustainability Challenges• Volunteer events

StakeholdersExternal Partnerships Matters

StakeholdersExternal Partnerships

Retailers

Regulators

NGOs

StakeholdersSolid Waste

P&G scientists publishedIntegrated Solid Waste Management: A Life Cycle Inventory.

Voiced support for practical solutions: - benefits of recycling and energy recovery - ways to implement curbside collection

A Partner in the Journey

Cooperation in Thailand with: •TIPMSE — Thailand Institute of Packaging Management for Sustainable Environment

•Ministry of Natural Resources and Environment

Introduced recyclable work banks in morethan 200 communities countrywide.

Solutions for the Developing World

StakeholdersSolid Waste