Global vs Local

P&G’s Sustainability Strategy

Marina FrankeGlobal Sustainability

Corporate ExternalRelations

20-Feb-2007

2

What is Sustainability?

Improving the quality of life,

now and for generations to

come.

• Environmental Protection

• Economic Development

• Social Responsibility

3

Global and European Governments’ Strategies “Sustainable Development”

UN Millennium Goals (poverty, water, health)

European Action Plan

Other Global Regions

4

P&G’s 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.

5

SustainableDevelopment

LinkingOpportunity

withResponsibili

ty

P&G Global Sustainability

Current Business Cases

7

The need for Clean Water

More than 1 billion people

lack access

to safe drinking water.

8

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.

9

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

10

Millstone Coffee – Fair TradeRainforest 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)

11

Ariel Cool Wash

12

Ariel Cool Wash

Ariel Cool Wash – Peer Reviewed

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

Online presence Up to 40% less energy

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

14

Consumer Behaviour

• Correct Dosing• Consumer Education

Less Materials • Compaction• Better Packaging

Less Resources• Low Temp Washing• Water Conservation

LaundrySustainability Drivers

15

Corporate Social Responsibility

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

Global Supply Chain Management

16

Corporate Social ResponsibilityOur Employees

• Pension program

• P&G stock ownership

• Employee training programs

• Flexible work hours

• Mentoring programs

• Health programs & standards

• Wellbeing – Fitness Center

17

Ongoing Environmental Responsibility

• Environmental Audit Programsince 1970

• Global Environmental Reports since 1993

• P&G Global Environmental Management System

18

In Touch - Transparency

Annual SustainabilityReports since 1999:

www.pg.com/sr

Reporting Responsibility

2005

2004

2006

19

Reporting ResponsibilityWinner 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)

20

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 employeesand in local communities (Live, Learn and Thrive)

21

Get the Outside InRelevance of Sustainability to External Stakeholders

• UN’s 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)

• NGO’s and consumers - request info on “Social and Environmental Responsibility” of companies

22

SustainableDevelopmen

t

LinkingOpportunity

withResponsibilit

y

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 opportunityfor business