Sustainability

P&G Safety of our products is a prerequisite for responsible business (P&G website)

ECONOMIC PERSPECTIVE Increase likelihood that products will be chosen by consumers. http://www.jstor.org/stable/25074153

CPSC (CONSUMER PRODUCT SAFETY COMMISSION)

Protecting consumers and families from products that pose a fire, electrical, chemical, or mechanical hazard. http://www.cpsc.gov/about/about.html

Why product safety is important?

What is a “hazardous product”?

The CPSC (consumer product safety commission) defines three degrees of product hazard:

1.unreasonable risk;

2.substantial product hazard;

3.Immediate: a hazardous consumer product.

Retrieved from http://www.jstor.org/stable/1251067

P&G in product safety1.Safety heritage:“if you cannot make pure goods and full weight, go to something else that is honest, even if it is breaking stone” (co-founder, James Gamble).

2.Fulfilling our Commitments:

700 in-house experts globally.

Promoting, researching and enhancing product safety.

3.Using a Science-based Approach to Evaluate Safety

http://www.pg.com/en_US/sustainability/index.shtml

P&G policy on product safety1.Safe products and packages

2.Safe operations

3.Meet/exceed all applicable legislative/regulatory requirements

4.Provide interested parties with relevant/appropriate factual information

P&G product safety assurance key elements1.Company-wide/global product safety policies applied consistently.

2.Pre-Market, science-based assessment of product safety.

3.Rigorous control of production

4.Post market surveillance and rapid response.

http://www.pg.com/en_US/sustainability/index.shtml

http://www.pg.com/en_US/sustainability/index.shtml

http://www.pg.com/en_US/sustainability/index.shtml

PanteneCommitted to Renewable Materials

Pantene is piloting the use of plant-based plastic in its packaging. Innovative material made from sugarcane — a first for the mass hair care industry — debuted in the Pantene Pro-V Nature Fusion collection last April in Western Europe, and is expanding to North America in Fall 2011.

Product safety in action:

http://www.pg.com/en_US/sustainability/index.shtml

The sugarcane is converted into ethanol and eventually into plastic utilizing a by-product from the rest of the plant to provide some of the energy needed to fuel this process.

http://www.pg.com/en_US/sustainability/index.shtml

New packaging launched in W.Europe:

57% reduction in plastic compared to originally launched Fusion.

20% reduction in gross weight compared to original Fusion launch package.

To minimize plastic, use of fibre material made

from bamboo, sugarcane, and bulrush.

GilletteCommitted to Packaging Reduction

http://www.pg.com/en_US/sustainability/index.shtml

Product safety in action:

How to promote product safety?

Recommendation given by CPSC:Act promptly;Improve quality control;Establish voluntary standard;Consumer education program;Experts involvement.

Retrieved from A Review and Critical Evaluation of the Consumer Product Safety Commission: Marketing Management Implications

The U.S. Consumer Product Safety Commission has launched an investigation into Pampers diapers with Dry Max after some parents complained that the new Procter & Gamble Co diapers appear to be the cause of rashes and chemical burns on their children. http://www.reuters.com/article/2010/05/05/us-procter-pampers-idUSTRE6444RW20100505

Employees & Stakeholders

Employees & Stakeholders are critical enablers of our sustainability programs.

P&G Show Respect for All Individuals:

• All individuals can/want to contribute to their fullest potential.• Value differences.• Inspire/enable people toachieve high expectations, standardsand challenging goals.• Honesty in performance with people.

Retrieved from http://www.pg.com/en_US/sustainability/product_safety.shtml

1.equip ALL P&G employees to be sustainable in everyday thinking/work practices.

2.transparency with stakeholders. Allows P&G continued freedom to innovate in a responsible way.

Our Enablers

Delivering the environmental and social programs

http://www.pg.com/en_US/sustainability/index.shtml

Employee contirbutions to sustainability

• responsibility for energy, water, waste reductions Lighting that will save 245,000 KWh (or enough power for 16 average homes for a year) upgrades at the P&G

Mexico

• Managed Print Services : Today we can print anywhere in the P&G print world, scan to email, print two-sided, eliminate the cover

pages, and use smart color. In just one year, P&G has printed 11 million fewer pages, and that number is expected to grow considerably.

• Earth day The practice of “Turn over your trash can.” employees were challenged to not use their individual trash can

for a week to consider how they personally could reduce the waste they produce and recycle more. At many sites all over the world, teams implemented centralized waste stations, where employees gave up their trash can and disposed of waste, recycling, paper and compost at a centralized station on the floor.

Landscape watering system redesign collects rainwater or irrigation in Buenos Aires saving an estimated 340,000 liters of water a

year.

Employees: Human Rights at P&G

Respect for human rights implemented through policies, practices and due diligence systems (e.g., employee rights; employee benefits; health, safety, and environment; water; health services)

P& G INVOLVEMENT UN report on Business and Human Rights by Harvard Professor John Ruggie,

Secretary-General’s Special Representative for Business and Human Rights Update to the Organisation for Economic Co-Operation and Development (OECD)guidelines for multinational enterprises

Going forward. “….use of UN based Guiding Principles for Business and Human Rights” to identify and address any gaps in our human rights policies and programs.

Employees: Diversity & Inclusion

Diversity Metrics:

P&G continues to focus on diversity as aglobal strategy and expects its work force to become increasingly diverse, enabling P&G to serve more of the world’s consumers.

Retrieved from http://www.pg.com/en_US/sustainability/index.shtml

P&G Recognition

In 2011, P&G’s solid progress in diversity and inclusion was recognized in many global and U.S. surveys:

http://money.cnn.com/magazines/fortune/most-admired/2012/snapshots/334.html

FORTUNE• World’s Most Admired Companies(#5 overall; #1 in our industry)• Global Most Admired Company(2011—# 5 / #1 in Industry)• Top Companies for Leaders (2010—#2)• Most Powerful Women—Melanie Healey(#13), Gina Drosos (#39), Deb Henretta(#20 – International)Diversity Inc.• Top Company for Cultural Competence (2010)• Top Companies for Diversity (2011 #25)• Top Global Diversity Companies (2011 #8)• Top 10 Companies for People with Disabilities(2011 #6)• Top 10 Companies for Latinos (2011 #5)• Top 10 Companies for Asian Americans(2011 #9)• Top 10 Companies for Recruitment &Retention (2011 #9)• Top 10 Companies for Executive Women(2011 #5)

Employees: Diversity & Inclusion

Communities: build constructive relationships with local authorities, industry associations, residential and business neighbours, action groups, thought leaders, and news media.

Authorities:communicates with local, regional, and global authorities directly, both as an individual company and through industry associations.

Non-government organizations:enters into dialogue with nongovernmental organizations (NGOs) tounderstand their concerns and cares.

Consumers:meeting the needs of our consumers by providing products and services that can help improve their lives.

Sustainability Guidelines for Supplier Relations

• Expecting our suppliers to comply with all applicable laws of their country.

• Any personal payment or bribe to individuals employed by P&G’s customers or suppliers is strictly prohibited.

• Placing substantial value upon incumbent and potential suppliers who consistently respect basic human rights.

• Respecting employees’ right to freedom of association, where allowed by law.

http://www.pg.com/en_US/sustainability/index.shtml

On supplier level:

http://www.pgsupplier.com/en/current-suppliers/environmental-sustainability-scorecard.shtml

SC Environmental Sustainability Scorecard

Scope Scope Scope

(Electric) Energy Usage

(Fuel) Energy Usage

(Input / Withdrawal) Water Usage

(Output / Discharge) Water Usage

Hazardous Waste Disposal

Non-Hazardous Waste Disposal

Kyoto Greenhouse Gas Emissions Direct (Scope 1)

Kyoto Greenhouse Gas Emissions Indirect (Scope 2)

C C CP P PS S S

Company Name/Unit (below):Submit Date (Month DD, YYYY):

Unit of Measure(from dropdown menu)

Enter Scope Code (based on your capability to measure): P = P&G Product-specific materials and services (DESIRED) S = Site(s) (combined total) that create for P&G C = Corporate level NA = Measure does not apply to my industry/service (explain)

Core Measure

I S

tatu

s

Jan - Dec

Annual Volume/OutputNA

Jan - Dec Jan - Dec

2010 (Past Year)

Scope Code & Annual Data:

Data Data

(FILL IN ALL APPLICABLE SHADED CELLS; NON-SHADED ARE OPTIONAL)

yyyy

Data

2011 (Current Year)