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1 Dear External Business Partner, You have been selected to participate in P&G’s 2016 Supply Chain Environmental Sustainability Scorecard (SCESS) via Ecodesk. The SCESS initiative has been running since 2010 to measure and help identify areas for improvement in the environmental sustainability of our key external business partners. In 2014, we moved to simplify and digitize this scorecard via the Ecodesk platform, making data entry and management more efficient and actionable: we hope it made the process easier for you. We want to continue leveraging this tool to drive progress in our end-to-end supply chain, and have made a few changes this year to help us go beyond the data and begin to share more ideas and act together. To begin, please Login or Register for free on Ecodesk to view and complete P&G’s request. The deadline for submission of your response via Ecodesk is May 27th. Thank you in advance for your participation in this important initiative. Anne-Cecile Remont Global Purchases Sustainability Leader, Procter & Gamble

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Dear External Business Partner,

You have been selected to participate in P&G’s 2016 Supply Chain Environmental Sustainability Scorecard (SCESS) via Ecodesk. The SCESS initiative has been running since 2010 to measure and help identify areas for improvement in the environmental sustainability of our key external business partners. In 2014, we moved to simplify and digitize this scorecard via the Ecodesk platform, making data entry and management more efficient and actionable: we hope it made the process easier for you. We want to continue leveraging this tool to drive progress in our end-to-end supply chain, and have made a few changes this year to help us go beyond the data and begin to share more ideas and act together.

To begin, please Login or Register for free on Ecodesk to view and complete P&G’s request.

The deadline for submission of your response via Ecodesk is May 27th.

Thank you in advance for your participation in this important initiative.

Anne-Cecile Remont

Global Purchases Sustainability Leader, Procter & Gamble

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Contents

About

Background 3

Supplier Sustainability 3

Supply Chain Environmental Sustainability Scorecard 3

How to complete the request 4

What’s new? 5

Guidance on gathering and collecting data 5

Collecting your environmental data 5

Calculating GHG emissions 6

Ecodesk Response Guide

Getting started: Registering and connecting to P&G 8

Register on Ecodesk 8

Viewing P&G’s request 8

Step 1: Complete profile basics 9

Setup 9

Normalising Data 10

Profile Summary 10

Step 2: Complete requested fields for 2014 and 2015 11

Energy 11

GHG Emissions 12

Water 13

Waste 13

EMS 14

Fines 15

Step 3: Complete client-specific details for P&G 15

Factor 15

Completing additional requested information survey 16

Marking the request as complete 17

Viewing your scorecard 18

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About Background

At P&G, sustainability means making every day better for people and the planet through how we innovate and

how we act. It is about delighting consumers with innovative products and services that are better for the

environment. It’s about operating responsibly in our supply chain and treating our employees fairly. It’s about

providing health and hygiene education to children around the world and responding to natural disasters. As

the world’s largest consumer products company, we have both a responsibility and an opportunity to do the

right thing and create change. We believe that innovation is the path to enabling those everyday changes,

which can lead to significant impact. For more on P&G’s sustainability approach and programs please

visit http://www.pg.com/sustainability.

Supplier Sustainability

P&G’s network of external business partners is critical to our mission to touch and improve lives around the

world. This is especially true regarding our commitments in environmental and social responsibility.

Consumers around the world rely on P&G brands for their superior performance and value. For that reason, we want external business partners to participate with us in open innovation, and to help us improve competitive advantage and maintain standards of excellence for both companies. At P&G, successful partnerships require a respect for the environment and sustainability, and we seek those values in all of our partners. As such, we expect all of our external business partners to comply with our Sustainability Guidelines for Suppliers, and promote the application of these standards among those with whom they do business

In the area of environmental sustainability, we collaborate closely with our external business partners because

they are P&G’s key source of materials, packaging, systems and services. Product life cycle studies show that

our supply chain is a significant contributor to the overall environmental footprints of many P&G products.

Therefore, external business partners are critical for improving the environmental sustainability of our end-to-

end supply chain as well as an important resource for developing P&G’s sustainable innovation products. We

also learn from each other’s best practices as we navigate the emerging field of environmental sustainability

for products and operations together.

Supply Chain Environmental Sustainability Scorecard

In May 2010, P&G launched the Supply Chain Environmental Sustainability Scorecard and rating process to

measure and improve the environmental sustainability of our key external business partners. The scorecard is

the result of several years of close collaboration with our Supplier Sustainability Board, which includes more

than 20 leading external business partners from our global supply chain as well as experts from P&G. We

partnered with Ecodesk in 2013 to integrate the Excel-based scorecard into Ecodesk’s sustainability data

platform.

The scorecard assesses environmental footprint and encourages continued improvement by measuring energy

use, water use, waste disposal and greenhouse gas emissions on a year-to-year basis. The overall goal is to

encourage year-on-year improvement—regardless of size or existing capability.

P&G Relationship Owners (ROs) use the scorecard to determine their external business partner’s sustainability

rating in P&G’s performance development process. ROs/Buyers also use the scorecard to gather comparable

sustainability results for use in best total value business award decisions.

Since we implemented this program in 2010, we have been able to collect invaluable data to help us

understand our supply chain’s overall impact to the environment. We have also been able to actively engage

our key suppliers to improve our supply chain sustainability.

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The scorecard digitization through the Ecodesk platform made data collection and management easier. We want to continue leveraging this tool to drive progress, and continue making improvements to help us go beyond the data, share more ideas and act together!

What’s new?

Since the previous SCESS in 2014, we have made a couple of additions to address raising concerns like water

risks or Social Sustainability, and facilitate the dialogue with your Relationship Owner with qualitative

elements.

We have reintegrated three metrics that used to be present in the Excel scorecard:

Renewable Energy where an increase is registered as improvement;

Transportation Fuel Efficiency (suppliers should respond ‘N/A’ where this is not applicable) where a

decrease is registered as improvement; and

Recycled Waste (aggregation of Hazardous Recycled and Non-Hazardous Recycled) where an

increase is registered as improvement.

We have added the following question in the profile questions: water risk assessment (not scored).

We have also added an Additional Information survey which comprises two parts:

Sustainability Initiatives & Ideas reviewed by SROs as part of the ratings process. This is meant to

facilitate the dialogue with P&G Relationship owners, and start tracking the improvements we drive

together

Additional information about reporting processes and own supplier engagement. This is for P&G’s

information only, for example to evaluate standardization opportunities, and is not included in the

ratings process.

Because our Performance Development Process is now biennial, we are requesting data for both 2014 and

2015 this year.

How to complete the request

Step 1 – Login or Register for free with Ecodesk

Search for your organisation if you are unsure if you are registered on Ecodesk. If you require

assistance please email [email protected].

Once registered, login to view the P&G request on your Clients page. In case P&G does not appear

automatically, please add P&G as a client or contact Ecodesk for support.

Step 2 – Follow the steps on the P&G request to complete:

1. Set up your profile name, reporting scope* and normalising unit**

2. Enter data for 2014 and 2015:

GHG Scope 1 and Scope 2 emissions

Transportation Fuel Efficiency (if applicable)

Protocol used in calculating GHG emissions

Electricity, Fuel and Renewable energy

Water Input, Water Output and Water Risk Assessment

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Hazardous and Non-Hazardous Waste

The number and value of any environmental Fines and sanctions incurred

Whether an externally verified Environmental Management System (EMS) is in place

Normalising data** (Output, Employees or Revenue)

3. Indicate the proportion of values that relate to P&G via Factor

4. Once you have completed all required fields, please select ‘Submit as Complete’ and permit P&G

access to your profile data.

* P&G-specific data is preferable but you can also report at the corporate, divisional or site level. If you would

like to report for multiple sites, please contact Ecodesk to set this up.

** You can elect to provide normalising data as total Output, number of FTE Employees or total Revenue as

reflects your reporting scope. This data is used to calculate intensity or absolute figures for the environmental

data you provide.

Where you cannot provide a response for a requested field, please mark that field as Not Applicable, Not

Available or Will Not Report. You will be prompted to provide further explanation.

Notes can be added throughout Ecodesk should you wish to provide additional information.

Step 3 – Complete the additional requested information survey

Click on the ‘P&G Additional Requested Information’ survey link on the P&G request. You can also

locate the survey under the Survey tab.

You can save your responses and return at a later date to submit.

Please select the ‘Submit’ button at the bottom of your survey once you are ready to submit your

responses.

Guidance on gathering and collecting data

We recommend that GHG emissions are calculated according to the GHG Protocol Corporate Standard. If you

need help in calculating your GHG emissions, please read the information below. Ecodesk will be happy to

support further. For questions contact Ecodesk by emailing [email protected] or by calling 0044 8455 442

072.

Collecting your environmental data

Electricity

You can find your annual electricity consumption on your electricity bill. Most utility companies provide an

end-of-year statement indicating your annual usage in kWh (or equivalent unit). If this has not been provided

to you, please contact your electricity provider.

Fuel

To obtain the total amount of fuel consumed, first identify the types of fuel your company uses. This includes

fuels used for vehicles owned by the company and miles/kilometres driven for the company, the gas

consumption used to heat your buildings, and any additional fuels used in your production processes, such as

burning oil or coal. Should your diesel, natural gas or petrol figures be in litres or gallons, you can use our

online fuel converter to convert this into kWh, GJ or MJ. In case you use fuels not mentioned here, the

conversion to kWh, GJ or MJ can be readily found online.

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Renewable Energy

Please report any renewable energy used directly from source and not via the national grid.

Water Input & Water Output

Water Input (withdrawals) and Water Output (discharge) data can be found on your water bills.

Hazardous & Non-Hazardous Waste

Your waste generation data should be available from your waste contractors.

Calculating GHG emissions

Every company consumes energy and, with this consumption, greenhouse gases are released into the

atmosphere. As agreed by the large majority of scientists and governments around the world, these

greenhouse gases are major drivers of global warming. Carbon dioxide (CO2) is a primary greenhouse gas

(GHG).

CO2-e (Carbon Dioxide Equivalent) emissions resulting from the burning of fossil fuels are calculated from fuel

and electricity use. Emissions break down as Scope 1 (direct), Scope 2 (indirect) and Scope 3 (other indirect).

GHG Scope 1 emissions

Your Scope 1 carbon emissions are calculated from your fuel usage data, using carbon conversion factors to

convert your fuel usage (kWh or equivalent) to kg CO2-e (kilograms of Carbon Dioxide Equivalent).

Click here to access an example of a support document for conversion factors from the Carbon Trust.

These conversion factors were last updated on 06/04/2016 and are subject to change throughout the year.

These figures have been provided for the use of the worked examples below and you are advised to

check Defra’s website for the most up to date conversion factors.

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To calculate scope 1 emissions for TPKJ Ltd., multiply the total consumption in kWh of each fuel (e.g. 22,200

kWh for diesel) with the conversion factor (0.25154 kg CO2-e / kWh of diesel). This gives 5,584.188 kg CO2-e.

Complete this for each fuel used. To get your total Scope 1 carbon emissions, simply add individual fuel

emissions together.

GHG emissions are reported on Ecodesk in Mt (metric tons) CO2-e. One last step is to divide the total kg CO2-e

by 1000 (1 Mt is 1000 kg) and round to the nearest whole number. The total Scope 1 carbon emissions for TPKJ

Ltd. are (9,819.1055/1000) 10 Mt CO2-e.

GHG Scope 2 emissions

To calculate your scope 2 emissions, multiply your total electricity consumption in kWh with a conversion

factor applicable to your country and divide by 1,000 to get your Scope 2 carbon emissions in metric tons (Mt).

Scope 2 emissions also include emissions from purchased heating, cooling or steam.

Suppose TPKJ Ltd. is located in the UK and consumed 11,000 kWh of electricity in 2015. The UK conversion

factor for 2015 is 0.46219 kg CO2-e / kWh electricity*. TPKJ Ltd.’s Scope 2 carbon emissions are (11,000 *

0.46219) 5,084.09 kg CO2-e, or 5 Mt CO2-e.

*This UK conversion factor was last updated on 02/03/2016 and is subject to change throughout the year.

Conversion factors differ across years. Please check Defra’s website for the most up to date figure.

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Ecodesk Response Guide

Getting started: Registering and connecting to P&G

To begin your response to P&G’s request, please refer to the initial email you received from

[email protected].

Register on Ecodesk

Please Sign In or Register your company with Ecodesk. If you already have an Ecodesk profile, please sign in

directly to view and complete the request. You can request a password reminder using the Forgotten

Password link.

If you are unsure whether your organisation is registered with Ecodesk please search for it using the Search

Organisations function. Mandated field entries and conflicts are highlighted in red to help prevent duplicate

profile creation. If you have further questions or require additional support please

email [email protected].

Viewing P&G’s request

Once logged in, P&G’s request should appear on the Clients page. If P&G does not appear automatically as a

client, please connect using the Add Client button. If you are newly registered, the request will appear as in

the image below. A red cross indicates the fields which are incomplete. As you complete each field of the

request, you will see the red crosses are replaced with green ticks. If you already have a profile, some of these

fields may already be ticked.

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These fields are shortcuts to where you enter information in your Sustainability Profile. Use the progress

report to navigate Ecodesk and track your responses. You can navigate back to this page via Clients or Home at

any time.

On each input page, fields requested by P&G are indicated with a red flag. Metrics included in scoring are

indicated by a red percentage sign.

Not all sections of your Sustainability Profile are requested by P&G, but facilitate the collection of a range of

sustainability data as required by other clients. Completing any additional sections outside the P&G request is

entirely optional and will not affect your scorecard.

Step 1: Complete profile basics

Setup

If you click on Setup, you are taken to the Setup > Units page under Sustainability Profile. This is a master

control to set the units you will report in. You can change these individually as you enter your data, but it will

save time to set these here.

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You should set your Default Normalising Unit on this page. Select from Employees, Output or Revenue. To

provide more information on the selected normalising unit, please select the Revenue, Employees or Output

tab as applicable.

Normalising Data

For example, if you wish to report your data per metric ton of output, select Output as your default

normalising unit, save, and navigate to the Output tab. Select New Entry, ensure the correct reporting year

and unit (in this example, metric tons) are selected, and enter the total output in that year for your

organisation, or otherwise as relates to the scope of your profile (i.e. if your profile relates to a specific

business unit, location or product).

Entering your total output (or revenue/employees as per your default normalising unit) enables Ecodesk to

calculate your absolute values and report back aggregated supply chain figures to P&G. Note that P&G prefers

that you provide either absolute values, or intensity values that can be calculated back to absolute values.

Profile Summary

Select Profile Scope to navigate to Profile > Overview, where you provide key information about the

operations that your profile represents. This is important to enable P&G to appropriately interpret your

responses for scoring.

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Please indicate the scope of your profile as Company, Site, Product, Parent Company or Division. By default,

Company is selected for new profiles. If you wish to report data only for a specific site or product as relates to

P&G, please select Site or Product and provide additional information as necessary. If you wish to report data

that relates solely to P&G, you can enter this directly via Client Specific Data on the Clients page.

If you wish to maintain multiple profiles across different business sites or regions, we advise that you rename

the Profile Name as appropriate for clarity, for example, ‘Green Recycle: US Operations’.

Please select your Industry Sector and Country to ensure your profile is correctly mapped on the Ecodesk

network. Once you have completed this page, please click Save.

Step 2: Complete requested fields for 2014 and 2015

Energy

Click on Electricity or Fuel Total to navigate from P&G’s request on the Clients page to the Energy Use page.

To enter your energy data, select New Entry.

Ensure the correct reporting year and unit are selected (tick Intensity if you are reporting intensity values) and

enter your values for Electric and Total Fuel. If you directly consume any renewable energy (and not via the

national grid), please enter your consumption under Renewable.

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You can input figures for your Diesel, Natural Gas and Gasoline usage separately, which aggregate to the Total

Fuel field. If you are gathering this data for the first time, you may find the Fuel Converter tool useful to

convert your usage of each fuel type in litres or gallons into your selected energy unit (Giga Joules, Kilowatt

Hours or Mega Joules).

Once you have completed your energy information for 2014 and 2015, click Save. Click on Return to Clients at

the bottom left of the page to review your completeness of P&G’s request.

GHG Emissions

Click on GHG Scope 1 or GHG Scope 2 to navigate from the Clients page to the GHG Emissions page. To enter

your emissions data, select New Entry.

Please enter the Protocol used in calculating your emissions.

Ensure that the correct reporting year and unit are selected (tick Intensity if you are reporting intensity values)

and enter your Scope 1 and Scope 2 emissions. Please also report your Transportation Fuel Efficiency. If this is

not applicable to you, please mark this field as Not Applicable. Please note you will be asked to provide a

reason where you respond Not Applicable, Not Available or Will Not Report to a requested field.

P&G are not requesting Scope 3 data or the breakdown of scopes; however you may enter this information

should you wish. Use the Notes section to add any supporting comments.

Once you have completed your GHG emissions information for 2014 and 2015, click Save. Click on Return to

Clients at the bottom left of the page to review your completeness of P&G’s request.

Water

Click on Water Input, Water Output or Water Risk Assessment to navigate from P&G’s request to the Water

Use page. To enter your water data, select New Entry.

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Ensure the correct reporting year and unit are selected (tick Intensity if you are reporting intensity values) and

enter your values for Water Input and Water Output. Please also indicate whether you have assessed your

water risk at your facility locations and/or within your supply chain.

Once you have completed your water information for 2014 and 2015, click Save. Click on Return to Clients at

the bottom left of the page to review your completeness of P&G’s request.

Waste

Click on Hazardous Waste or Non Hazardous Waste to navigate from P&G’s request on the Clients page to

the Waste Disposal page.

Ensure the correct reporting year and unit are selected (tick Intensity if you are reporting intensity values) and

enter your values for Hazardous and Non-Hazardous. If you have data for waste recycled (including reused and

recovered), please enter this broken down as Hazardous Recycled and Non Hazardous Recycled.

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You will see your data aggregated in the Total field. Please note that you need to complete both the Hazardous

and Non-Hazardous fields for your response to be registered; please do not input data in the Total field only.

Once you have completed your waste information for 2014 and 2015, click Save.

Click on Return to Clients at the bottom left of the page to review your completeness of P&G’s request.

EMS

Click on Environmental Mgmt System to navigate from P&G’s request on the Clients page to the EMS page.

Select New Entry to enter information on your environmental management system (EMS). Ensure the correct

Reporting Year is selected, select Yes, No, Partial (where less than 70% sites use the EMS) or Not Applicable

and, if applicable, indicate the externally verified system in place (e.g. ISO 14001).

Enter any supporting Notes as appropriate and select Save. Please complete an entry for both 2014 and 2015.

Fines

Click on Number of Fines or Value of Fines to navigate from P&G’s request on the Clients page to

the Fines page.

Select New Entry and ensure the correct Reporting Year and Unit is selected. Please report on the monetary

value of significant fines under Amount and the total number of non-monetary sanctions for non-compliance

with environmental laws and regulations under Number of fines/sanctions as defined in the G4 Guidelines

published by the Global Reporting Initiative (GRI).

Add any supporting comments in the Notes section and select Save. Please complete an entry for both 2014

and 2015.

Step 3: Complete client-specific details for P&G

Factor

Under P&G’s request on the Clients page, select Factor to enter information as to how your profile data

relates to P&G.

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Ensure that the correct year is selected (at the top right corner of the page) and provide your response.

Select ‘My profile sustainability figures apply to Procter & Gamble only’ if your profile relates to P&G only.

Select ‘A percentage of my profile sustainability figures relate to Procter & Gamble’ to indicate the proportion

of your profile that relates to P&G as a percentage. The majority of organizations calculate this figure based on

the client’s spend over the organization’s total revenue, or as output purchased by the client over total output

produced.

Select ‘I want to enter the exact sustainability figures for Procter & Gamble’ to enter P&G specific values for

GHG emissions, energy, water and waste. Please ensure the units are correct before you enter your data. Units

default to your settings as elected under Sustainability Profile > Setup > Units.

Note: If you provide P&G specific data via this third option, this P&G specific data point will be reported to

P&G and not your absolute or intensity figures as provided in your Sustainability Profile. This may be a good

option if you do not wish to override data that is present in a pre-existing profile.

Selecting ‘I don’t know what proportion of my profile sustainability figures relate to Procter & Gamble’ is the

least preferred response, as it does not allow P&G to include your figures in aggregated supply chain impacts.

Select Save to register your response. Please remember to provide your response for both 2014 and 2015.

Click on Return to List to return to the Clients page.

Completing additional requested information survey

To access the survey, select P&G Additional Information Survey in the final section of P&G’s request on

the Clients page.

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At the bottom of the survey, select Save & Return Later if you wish to revise your responses and submit at a

later date; to mark your survey as complete and submit responses to P&G, select Save & Submit. Please note

that once your survey is marked as complete, you will not be able to make further changes.

Marking the request as complete

Once you have completed a section, you should mark it as complete. Once both the profile request and survey

request sections are marked as complete, you have completed P&G’s request. Below is how the completion

status appears for each section before all required fields are complete:

Once the required fields have been completed, the option to ‘Set as Complete’ will become available.

Select Set as Complete once you are happy with your responses.

If you have not yet permitted P&G access to your profile, then you will be prompted to change your privacy

settings for P&G. Note that this does not affect your public privacy settings.

Once you have permitted P&G access, the Full Access icon will appear on the P&G request overview.

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Viewing your scorecard

You will receive an email after the deadline informing you that your scorecard is ready to view. To view the

scorecard, click on View Supplier Assessment at the right side of the P&G request on the Clients page.

The first two scores, Completeness and Improvement, are automatically calculated based on the information

you have submitted via your profile. The first Average Rating, Supplier Data, indicates your score for these

measures. The second Average Rating, Supplier Data with client feedback, indicates your final score.

To view a breakdown of your scores for Completeness and Improvement, select View Supplier Assessment

Calculations.

You can download your scorecard in PDF format (both data submitted and scores) by clicking the

Download button.

We then encourage you to engage with your Relationship Owner at P&G to review results, exchange ideas and

align on a few clear action steps going forward.