P&G’s Sustainability Strategy
Marina FrankeGlobal Sustainability
Corporate ExternalRelations
20-Feb-2007
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What is Sustainability?
Improving the quality of life,
now and for generations to
come.
• Environmental Protection
• Economic Development
• Social Responsibility
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Global and European Governments’ Strategies “Sustainable Development”
UN Millennium Goals (poverty, water, health)
European Action Plan
Other Global Regions
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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.
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SustainableDevelopment
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P&G Global Sustainability
Current Business Cases
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The need for Clean Water
More than 1 billion people
lack access
to safe drinking water.
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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.
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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
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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)
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Ariel Cool Wash
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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
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Consumer Behaviour
• Correct Dosing• Consumer Education
Less Materials • Compaction• Better Packaging
Less Resources• Low Temp Washing• Water Conservation
LaundrySustainability Drivers
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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
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Corporate Social ResponsibilityOur 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 Programsince 1970
• Global Environmental Reports since 1993
• P&G Global Environmental Management System
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In Touch - Transparency
Annual SustainabilityReports since 1999:
www.pg.com/sr
Reporting Responsibility
2005
2004
2006
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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)
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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 employeesand in local communities (Live, Learn and Thrive)
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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
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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