Designed to Grow ''Sustainably

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Peter White Director Global Sustainability
Designed to Grow ..Sustainably
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PG defines sustainability broadly. It is about
ensuring a better quality of life for everyone,
now and for generations to come.
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History of Sustainability

• Code of Regulations (1915)
• PG first environmental report (1970)
• Environmental Quality Policy EQ Reporting (1992)
• Corporate Sustainable Development Dept (1999)
• First Sustainability report (1999)

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Leadership Support

• We are committed to helping solve the worlds
  sustainability challenges. We do this through
  product innovations, reducing the environmental
  footprint of our operations and through our
  contributions to help children live, learn and
  thrive. Companies like PG can be a force for
  good in the world. This is a responsibility and
  an opportunity that we embrace.

A. G. Lafley, Chairman of the Board and Chief
Executive
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New Purpose and Values - 2007

• PG Purpose
• We provide branded products and services of
  superior quality and value that improve the lives
  of the worlds consumers, now and for generations
  to come.
• Values
• We incorporate sustainability into our products,
  packaging and operations.

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Sustainability Commitment

• New Statement of Purpose and Values
• New PG Sustainability Strategy
• 5 year Sustainability goals
• Sustainability in Corporate Business Strategy

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PG Sustainability Strategies

• Improve the environmental profile of our
  products.
• Reduce the environmental footprint of our own
  operations.
• Improve lives through our social responsibility
  programs.
• Engage and equip all employees to build
  sustainability thinking and practices into their
  everyday work.
• 5. Shape the future by working transparently
  with stakeholders to enable continued freedom to
  innovate in a responsible way.

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Strategy 1

• Improve the environmental profile of our products
  through holistic innovation.

Goal Develop and market at least 20 billion in
cumulative sales of sustainable innovation
products.
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Focus on Meaningful Improvements
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Sustainable Innovation

• Ariel CoolClean and Tide Coldwater
• If U.S. washed clothes in cold water
• Saves 3 domestic energy consumption
• 6 US Kyoto commitment
• Ariel Turn to 30 campaign
• Up to 40 energy saved per wash

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Clear Business Strategy

• Our focus is on providing products and services
  that dont require consumers to make choices
  between Sustainability and their needs for
  performance and value.

Bringing Sustainability to the Mainstream
Consumer No Trade-offs!
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Strategy 2

• Improve the environmental profile of our own
  operations.

Goal Additional 10 reduction (per unit
production) in CO2 emissions, energy/water
consumption and disposed waste from PG plants,
leading to total reductions over the decade of at
least 40.
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Materials Flow 2006-07
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Strategy 3

• Improve lives through our social responsibility
  programs.

• Goals
• Enable 250 million children to Live, Learn and
  Thrive.
• Prevent 80 million days of disease, save 10,000
  lives by delivering 2 billion liters of clean
  water in our Childrens Safe Drinking Water
  program

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Strategy 4

• Engage and equip all employees to build
  sustainability thinking and practices into their
  everyday work.

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Strategy 4

• Engage and equip all employees to build
  sustainability thinking and practices into their
  everyday work.
• Goals
• 100 employee awareness
• Environmental programs at all sites
• Training for all relevant functions

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Strategy 5

• Shape the future by working transparently with
  stakeholders to enable continued freedom to
  innovate in a responsible way.

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Implementing Sustainability
Corporate Strategy
Bus. Unit Strategies
Bus. Unit Strategies
Bus. Unit Strategies
Functional Strategies
Global Sustainability
Regional Strategies
Sustainability Leadership Council
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Key Lessons

• Stay the course
• Environmental, Social and Economic
• Be Explicit use the S word
• Clear strategy know Where to play
• Build on core strengths
• Innovation, Brands, Consumer Understanding, Scale
• Make part of DNA
• Build into Values, Culture and Systems
• Top down and Bottom up