P&Gs Sustainability Strategy

Marina Franke Global Sustainability Corporate External Relations 20-Feb-2007

What is Sustainability?
Improving the quality of life, now and for generations to come.

Environmental Protection

Economic Development
Social Responsibility

Global and European Governments Strategies Sustainable Development

UN Millennium Goals (poverty, water, health)

European Action Plan

Other Global Regions

P&Gs Sustainability focus: Water, Health and Hygiene

Solving the global water crisis represents an important step toward achieving sustainable development. This will improve life and health conditions for millions of people.
3rd World Summit of Nobel Peace Laureates, 2002

P&G contributes to United Nations Millennium Development Goals of providing safe drinking water in developing regions.

Sustainable Development

Linking Opportunity with Responsibility

P&G Global Sustainability

Current Business Cases

The need for Clean Water

More than 1 billion people lack access to safe drinking water.

P&G Global Sustainability

PUR Purifier of Water kill viruses, bacteria typhoid / cholera reduce parasites, pesticides, heavy metals provides safe drinking water affordable costs (< 0,03 $ per 10 liters) 25 countries: Pakistan, Morocco, Kenya, Haiti, Romania etc.

Cooperation with UNICEF,USAID, Internat`l Red Cross, PSI etc.

P&G Global Sustainability

Nutristar mineral & vitamin drink
2 billion people with micronutrient deficiency

children go blind
11 minerals and vitamins (vitamin A, iron, iodine) cooperation with UNICEF focus: Bangla Desh, Tanzania, Philippines

Millstone Coffee Fair Trade

Rainforest Alliance Certified - TransFair USA introduces social and environmental standards education of farmers, schools for children cooperation of small farmers, better investments 10 years alliance with TechnoServe (NGO)

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Ariel Cool Wash

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Ariel Cool Wash

Ariel Cool Wash Peer Reviewed

http://www.oeko.de/oekodoc/289/2006-008-de.pdf

Online presence Up to 40% less energy

http://www.ariel-kalt-aktiv.de

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Laundry Sustainability Drivers

Less Materials
Compaction
Better Packaging

Correct Dosing Consumer Education

Consumer Behaviour

Less Resources

Low Temp Washing

Water Conservation

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Corporate Social Responsibility

Global Supply Chain Management
Introduce our P&G Values and Principles to our Suppliers Sustainability Guidelines for Supplier Relations Human Rights no Child Labor, no Forced Labor Health and Safety Standards Environmental Quality Data Privacy

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Corporate Social Responsibility

Our Employees
Pension program
P&G stock ownership Employee training programs Flexible work hours Mentoring programs Health programs & standards Wellbeing Fitness Center

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Ongoing Environmental Responsibility

Environmental Audit Program since 1970

Global Environmental Reports since 1993

P&G Global Environmental Management System

In Touch - Transparency
Reporting Responsibility Annual Sustainability Reports since 1999: www.pg.com/sr
2006
2005

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2004

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Reporting Responsibility
Winner in Dow Jones Sustainability Index
P&G named #1 in DJSI for Consumer Goods Company Group for the 7th straight year (2,000 largest Dow Jones Companies)

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DJSI - Recognition for our Sustainable Management Principles and Systems

Engagement in developing countries - esp. PUR, Nutristar Environmental and human safety of our plants worldwide Ethical business practices (no child labor, no forced labor) Social Responsibility for employees and in local communities (Live, Learn and Thrive)

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Get the Outside In

Relevance of Sustainability to External Stakeholders
UNs Sustainability Strategy and Program on Sustainable Production and Consumption EC - introduced Sustainable Development (SD) Strategy EU Member States - develop their SD strategy (Germany, UK, et al) NGOs and consumers - request info on Social and Environmental Responsibility of companies

In Conclusion
Turn attention from eliminating negatives to creating positives Move beyond eliminating non-value to creating new value Not just market-based solutions, but see the market itself as a solution Sustainability is not just removing the business risk Sustainability is an opportunity for business Sustainable Development

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Linking Opportunity with Responsibility