Sustainability ContextDefinition:Information on performance should be placed in context. The underlying question of sustainability reporting is how an organization contributes, or aims to contribute in the future, to the improvement or deterioration of economic, environmental and social conditions, developments and trends at the local, regional or global level. Reporting only on trends in individual performance (or the efficiency of the organization) fails to respond to this underlying question. Reports should therefore seek to present performance in relation to broader concepts of sustainability. This involves discussing the performance of the organization in the context of the limits and demands placed on environmental or social resources at the sector, local, regional, or global level. Furthermore performance [should be expressed] in relation to information about economic, environmental, and social conditions in relevant locations.This concept is often most clearly articulated in the environmental arena in terms of global limits on resource use and pollution levels. However, it may also be relevant with respect to social and economic objectives such as national or international socio-economic and sustainable development goals.The relationship between sustainability and organizational strategy should be made clear, as should the context within which performance is reported.

Evaluating P&Gs Report on Sustainability Context:Principle of Sustainability Context encourage companies to present information relating to local, regional and global standards so that the companys overall sustainability performance can be assessed in comparison with some benchmark.Some evidence of compliance of Procter & Gamble in Principle of Sustainable Context found in their Sustainability Report are:

P&G took time to present in its Sustainability Report information concerning the performance/activity of the GBU (General Business Unit) which can be used to compare and evaluate the performance of the company such as:

Energy and Water Consumption and Carbon Dioxide Emission

Waste Disposal

P&G also publish their company goals in accord with sustainability which is useful for the entity and other stakeholders in monitoring the progress of companys performance in obtaining sustainability

Cold Water WashingGetting consumers to wash their clothes in cold water represents a significant opportunity to reduce energy consumption and associated greenhouse gas emissions. This is why we have established a goal that by 2020, we want to have 70% of all machine wash loads use cold water. Packaging ReductionWhile we are currently on track to meet our 20% reduction goal for 2020, the work will become more difficult as we achieve optimized packaging design on more and more of our items. Energy and CO2Overall we have achieved an 8% reduction since 2010 and are on track to achieve our 2020 goal of 20% reduction. Truck TransportationOur 2020 goal for transportation is to reduce truck transportation kilometers by 20% per unit of production versus our 2010 baseline. Renewable EnergyTo ensure we are making progress towards our long term goal of powering our plants with 100% renewable energy, we set a 2020 goal to obtain 30% of our energy from renewable sources. Today we are making progress towards meeting that goal with approximately 7.5% of our energy being supplied from renewable sources.

Sustainable ForestryAs a member of the Consumer Goods Forum, P&G joined other member companies in a pledge to mobilize resources within their respective businesses to help achieve ZeroNet Deforestation by 2020. To act on this commitment, P&G has developed goals for wood pulp, palm oil, and paper packaging: By 2015, 100% of the virgin wood fiber used in our tissue/towel and absorbent hygiene products will be third-party certified; 40% of the virgin wood fiber used in our tissue/towel products will be Forest Stewardship Council (FSC) certified. By 2015, 100% of palm oil purchases will be confirmed to originate from responsible and sustainable sources. By 2020, 100% of our paper packaging will contain either recycled or third-party certified virgin content.

Paper PackagingLast year we established a new goal of having 100% of paper packaging be either recycled or third-party certified virgin content by 2020.

Manufacturing WasteWe continue to make excellent progress towards our manufacturing waste reduction goals. Our 2020 goal is to ensure manufacturing waste to landfill is less than 0.5% of input materials. In FY12/13, we reduced manufacturing waste to 0.65% of input materials, meaning 99.35% of all input materials were beneficially used in products or via recycling, reuse, or energy conversion of waste materials.

Recommendation:We can see that P&G is evidently representing enough the sustainability context principle yet we can still see something lacking to fully comply with this principle so we try to suggest some of our opinion for them to consider such as: The company has present a graph for comparison of their performance and other business units in terms concerning sustainability but most of the information that they put up are in an international perspective or specific only in particular country (US) which make it hard for the report reader on the other country, where they also operate, to evaluate the sustainability report and their compliance to a country-specific laws and benchmarks.

Human rights and other compliance statements of the company are too broad and too vague so we suggest to be a bit more precise and specific on the compliance report presented to make it easier for the reader to assess and evaluate the performance than by the company.