2014 Sustainability Report 2 of 68
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1 of 68 2014 Sustainability Report 2 of 68 At P&G, sustainability is part of NOTE TO PDF USER This PDF utilizes interactive elements. Click on contents and hyperlinks everything we do. for easy navigation. - A.G. Lafley, P&G President, CEO and Chairman of the Board ABOUT THIS PUBLICATION This is the 16th Sustainability Report for Procter & Gamble’s worldwide operations. Data in this report cover the period from July 1, 2013, through June 30, 2014. Financial information is given in U.S. dollars. This report was prepared using the Global Reporting Initiative’s (GRI) G3 Reporting Guidelines. The mission of the GRI is to promote international harmonization in the reporting of relevant and credible corporate economic, environmental and social performance information to enhance responsible decision making. The GRI has not verified the contents of this report, nor does it take a position on the reliability of information reported herein. For further information about the GRI, For the latest P&G news, in-depth information please visit: www.globalreporting.org on P&G’s brands and shareholder and career information, please visit: www.pg.com Contents 3 of 68 Contents . 3 Environmental Sustainability . 26 Social Responsibility . 43 Conservation of Resources ..............27 Social Responsibility Programs ...........44 Introduction . 4 Cold-Water Washing ................27 Comforts of Home .................44 Leadership Statement ................4 Packaging Reduction ................28 Health and Hygiene .................45 Our Goals .........................5 Energy and CO Social Responsibility Policies and Practices ..46 2020 Goals Progress ................11 2. 29 Water ...........................31 Human Rights .....................47 P&G Profile . 12 Renewable Resources ..................33 Human Resources ..................47 Our Purpose, Values and Principles .....13 Renewable Energy ..................33 Diversity & Inclusion ................48 P&G – A Company of Leading Brands ....15 Renewable Materials ................34 Global Medical ....................50 P&G at a Glance ...................16 Sustainable Forestry ................35 Worldwide Health, Safety Acquisitions. 17 Responsible Forest Management and Environment Systems ............52 Proceeds from Asset Sales ............17 in Our Wood Pulp Supply Chains .......36 Compliance with Laws and Regulations ..55 Global Purchases ...................17 Pulp for our Tissue/Towel Notices of Violation (NOVs) ...........55 Economic Development. 17 and Absorbent Hygiene Products ......36 Air Emissions ......................55 Organizational Structure .............18 Paper Packaging ...................37 SARA 313 Releases .................55 Manufacturing and Outsourcing .......19 Palm Oil .........................38 Stakeholder Engagement ............56 P&G Plant Locations ................20 Worth from Waste ....................39 Advertising and Promoting Governance .......................23 Manufacturing Waste ...............39 to Consumers Appropriately ..........57 Political Involvement ................24 Zero Manufacturing Waste to Landfill ...40 Eliminating Research Involving Animals ..57 Business Continuity .................24 Consumer Waste ...................41 Sustainability Guidelines Product Safety .....................25 Resource and Waste Summary Table .......42 for External Business Partners .........58 Supplier Diversity ...................59 Personal Information Privacy ..........59 Policies & Management Systems . 60 GRI Index . 61 4 of 68 Introduction Leadership Statement At P&G, our sustainability objective • Cold-water washing that conserves energy We have stretching goals before us for 2020. • We Pioneer. We use our innovation is to create industry-leading value and reduces CO2 emissions; With clear business unit ownership and full capability to create products that not only employee engagement at all levels and across work well every day, but also aim to preserve • The P&G Children’s Safe Drinking Water with brands and products that the entire Company, we know we can get natural resources throughout their life cycle. Program, which has delivered more than consumers prefer, while at the there. Toward that end, we are introducing We find new and more effective ways to 7 billion liters of clean drinking water and a three-pillar approach to our sustainability embed sustainability improvements into our same time conserving resources, helped save an estimated 42,000 lives; protecting the environment and efforts – aiming to ensure clarity, consistency business practices, systems and culture. • Brand programs that provide essential and engagement across the Company: With this focus and the full integration of improving social conditions for products to help thousands of people in our sustainability efforts into our business and those who need it most. need when disaster strikes around the world. • We Preserve. Every day, we look to design products and operations with less water, innovation plans, I am confident we will further These types of efforts have helped us meet energy and material waste to preserve accelerate progress over the coming year. We see success as creating value for consumers consumer needs and make a positive environ- resources. Through our brands, we focus and shareowners and leading the consumer mental and social impact. To continue making on preserving the health and comfort of products industry with effective and lasting progress over time, we need to ensure that what those in most need. solutions to environmental and social is good for sustainability also is good for business. sustainability challenges. • We Partner. We can make the biggest This belief is at the heart of my personal impact when we build partnerships with Martin Riant We believe in actions speaking louder than commitment as P&G’s new Global Sustainability experts in industry, government, NGOs Executive Sponsor, Global Sustainability words – ”Promises made, Promises kept” – which Executive Sponsor. I see major opportunities to and academic communities. The challenges Group President, Global Baby, Feminine & Family Care is why we consistently deliver products and incorporate sustainability more deeply into are complex and require collaboration programs that demonstrate progress on business strategy and planning, innovation, to develop effective and lasting solutions. environmental and social sustainability. For operations and communication. We improve the way we communicate example, we are innovating in: When sustainability goals and progress are led sustainability through our brands to help • Compacted laundry detergents, less bulky from within operating business units, and when consumers make more educated choices diapers, and products that reduce business leaders see sustainability as a choice for in how they choose and use products. materials, energy usage and waste; growth and profitability, investment and • Operations with zero manufacturing waste breakthrough innovation will follow. to landfills and less energy and water usage; 5 of 68 Our Goals At P&G, when we set a goal, P&G Packaging Goals Palm Oil Goals sustainable palm oil sourcing for the long term. We will continue to issue updates on this work employees will work their hardest Packaging sustainability is another key priority Our commitment to zero deforestation in at pg.com/sustainability. not just to meet it, but to exceed it. for P&G. We are on track to reduce packaging our palm oil supply chain is unequivocal. by 20% per consumer use by 2020. Given this We believe that meaningful progress toward In April, we reinforced this commitment with progress, P&G is raising the bar to: demanding sustainability goals is right for the That is why we established P&G’s Global an announcement of goals calling for traceability planet and right for P&G’s business. We’re Sustainability Vision four years ago, backed • Double the use of recycled resin in of palm oil and palm kernel oil to our supplier committed to doing the right thing, in the right by a set of 14 goals driving work across all plastic packaging mills by December 31, 2015, and to plantations way, for those who use our products, live in our areas of our business. The goals are detailed by 2020. • Ensure 90% of product packaging is communities and work in our Company. We on page 11, along with results achieved so far. recyclable or that programs are in place To support these goals, we began the intensive thank you for your partnership on the journey. Looking ahead toward next fiscal year, in to create the ability to recycle it work of tracing our complete supply chain by October 2014 we added four new goals, with partnering with the Malaysia Institute for emphasis on water conservation and product Supply Chain Innovation (MISI), part of the Increase use of On track to reduce packaging. I wanted to share these so that Massachusetts Institute of Technology. MISI recycled resin by packaging by you can see where we are headed. is conducting two six-month in-field studies to understand the highly segmented supply Water Conservation Goals Len Sauers % % chain and the challenges facing farmers so Vice President, Global Sustainability Water conservation has been a long-standing 100 20 we can help them continue working while P&G priority. Our expanded commitment calls for: also protecting the environment. We also communicated our new goals and the • Reducing water use in our manufacturing Revised Renewable Materials Goal expectation that our supply chain will not facilities