SUSTAINABILITY AT P&G

P&G A Company of Leading Brands

P&G Sustainability ObjectiveCreate long-term value for our consumers and shareholders by growing our brands and operations responsibly to conserve resources and improve life in the communities we impact across the world.

5 of 35 Contents Strategy Overview

Our Programs

Implementing a Program

Corporate Contributions Grant Competition

Visual Identity

Resources and Key Contacts

Before You Start

ResponsibilityProtect the business by ensuring product safety,

regulatory compliance, and responsible growth

OpportunityBuild the business via product innovation and operational

eco-efficiency.

Environmental Sustainability

Opportunity via Product Innovation

Consumer Insights Drive Product Innovation

Consumer Types

Data have been stable over time and consistent worldwide (US, Canada, Brazil, Europe, Japan, Indonesia, etc.).

Sustainable Mainstream

~75% Eco-aware, but will

not accept trade-offs in cost and performance

Basic 10%

Indifferent to sustainability, value

conscience

P&G’s approach is to drive meaningful improvements

in sustainability by targeting mainstream

consumers

Niche ~15%

Highly engaged, will accept trade-offs

in cost and performance

Science-Based Approach

Packaging Distribution

Usage

Materials

Manufacturing Life CycleAssessment

Disposal

Raw Materials

Manufacturing

Packaging

Distribution

Consumer Use

End of Life

P&G’s Energy Footprint

Energy use by consumers in the home is one of P&G’s biggest sustainability opportunities.

DistributionRaw Materials Manufacturing Packaging Consumer Use End of Life

Bill

ion

s o

f M

J

700

600

500

400

300

200

100

0

Laundry

Fabric softener

Hand dish

Auto dish

Sweeper pads

Diapers

FemPads

Toilet tissue

Paper towels

Shampoo

Alkaline

RazorsSnacks

If everyone in the US switched to cold water for machine laundry, the energy savings would be 33 million megawatt-hours, which is equivalent to the energy use of 4.4 million US households (~4%).

Designing Products that Conserve ResourcesEnergy

• Innovation - Developing products that wash better in cold water

• Consumer Education – Changing behavior to wash in cold

Materials Reduction

Compaction

New Product Design

Optimizing Transportation

Packaging

New Forms

Rigid to Flexible

Designing Products that Conserve ResourcesLeads to marked sustainability improvements across the entire lifecycle.

Opportunity via Operational Improvements

Operational ImprovementsAbsolute reductions (2007 – 2012)

5%reduction

in CO2

68%reduction in

waste

14%reduction in water

7%reduction in energy

Transforming hair care waste into bricks.

Repurposing Manufacturing Waste

Blending beauty care waste into leather care products.

Using detergent waste to wash cars.

Many of P&G’s global operation sites are now zero waste to landfill.

Powering our plants with 100% renewable energy

Designing products that

delight consumers while maximizing the conservation

of resources

Using 100% renewable materials

or recyclate for all our productsand packaging

Having zero consumer

or manufacturing waste go to landfills

Long-term VisionReduce our environmental footprint.Enable consumers to be more sustainable.

2020 Goals for ProductsRenewable Materials

• Replace 25% petroleum-based materials with sustainably-sourced renewable materials

• Confirm all palm oil purchases are sustainably sourced by 2015

• 100% third party certification for virgin wood fiber in tissue towel and absorbent hygiene products by 2015

• 40% FSC certification for virgin wood fiber in tissue/ towel products by 2015

• All paper packaging will contain either recycled or third party certified virgin content by 2020

Cold Water Washing

70% of total washing machine loads

Packaging Reduce by 20% (per consumer use)*

Consumer solid waste

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

2020 Goals for Operations

Renewable Energy • Increase use to 30% in our plants• Reduce energy consumption and CO2 emissions

(scope 1 + 2) by 20% per unit of production

Manufacturing Waste •Reduce manufacturing waste to landfill to < 0.5% of input material

Transportation • Reduce truck transportation by 20% per unit of production

* vs. 2010 baseline

Renewable Materials

Five U.S. brands collaborating on plant-based PET

Coca-Cola, Ford, Heinz, Nike and P&G have joined forces to accelerate the development and use of 100% plant-based PET materials in their products…

Plastics Today – June 5, 2012

2020 Goal:

30% renewable energy

Renewable Energy

• Roughly 7% of our energy today comes from renewable sources.

• We are focused on creating innovative solutions by partnering with experts.

Thank you!