Giving the World Reasons to Smile Colgate Sustainability Report Giving the World Reasons to Smile

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Giving the World Reasons to Smile Colgate Sustainability Report Giving the World Reasons to Smile Colgate Sustainability Report 2011 Giving the World Reasons to Smile Colgate Sustainability Report Giving the World Reasons to Smile About This Report Unless otherwise indicated, this report includes environmental, occupa- tional health and safety data from Colgate-Palmolive-owned manufac- turing and technology centers around the world, representing approxi- mately 95 percent of global production and 100 percent of research and development facilities under ownership. Colgate has chosen not to publish a printed version of this report in order to preserve resources and to ensure accurate and timely reporting of information. Financial information is global and is given in U.S. dollars. For feedback, questions and comments related to Colgate’s 2010 Sustainability Report, please contact [email protected]. For all other inqui- ries, please visit Colgate’s Consumer Affairs site at www.colgate.com. Contents: Message from Ian Cook 3 Company Profile 4 2011 to 2015 Sustainability Strategy 6 Recent Highlights 7 Awards and Recognition 8 n People 9 n Performance 21 n Planet 30 Spotlight on... Emerging Markets 41 Spotlight on... Suppliers 44 Spotlight on... Partnerships 49 Key Performance Indicators (KPI) 51 Global Reporting Initiative (GRI) Index 52 Message from CEO n Profile n Strategy n Highlights n Awards n People n Performance n Planet n Emerging Markets n Suppliers n Partnerships n KPI n GRI Index Message from Ian Cook t 3 of 57 u Long before many businesses began talking about sustainability and social responsi- bility, Colgate recognized that how we do business is just as important as what we do. At Colgate, sustainability is not just a project or initiative — it’s built into business decisions every day. We recognize that a broad approach to sustainability, encompassing our long com- mitment to environmental quality, but also extending to the long-term well-being of the people and communities we serve, is the truest expression of our Company values: Caring, Global Teamwork and Continuous Improve- ment. With Colgate’s core businesses of oral, personal and home care and pet nutrition, this approach is consistent with our business goals for making people’s lives healthier and more enjoyable. Since our business success depends upon being sharply focused on our key priorities, we determined that we must bring this same sharp focus to sustainability, determining where and how we can make the greatest difference. So in 2010, we developed a plan that will guide our sustainability initiatives for the next five years, with key goals in all three of our sustainability focus areas: People, Performance and Planet. This sharpened focus and these new goals are reflected in this Sustainability Report. We know that integrating sustainability into our everyday operations will help us make better business decisions and improve people’s lives in the over 200 countries and territories where we do business. We believe that our sustainability strategy will continue to increase consumer loyalty, provide a competitive advantage and help ensure long-term shareholder value. We hope you will be pleased to see the progress we are making. Thank you, Ian Cook Chairman, President & Chief Executive Officer Message from CEO n Profile n Strategy n Highlights n Awards n People n Performance n Planet n Emerging Markets n Suppliers n Partnerships n KPI n GRI Index Company Profile t 4 of 57 u Founded in 1806, Colgate-Palmolive is a $15.6 billion consumer products company that serves people around the world with well-known brands that make their lives healthier and more enjoyable. Truly global in scope, Colgate sells its products in over 200 countries and territories. Colgate Brands Colgate provides oral care, personal care, home care and pet nutrition products under trusted brands such as: Colgate, Palmolive, Mennen, Softsoap® brand, Irish Spring, Protex, Sorriso, Kolynos, Elmex, Tom’s of Maine, Ajax, Axion, Soupline, Suavitel, Hill’s Science Diet and Hill’s Prescription Diet. ® Operations Colgate operates in over 75 countries and sells products in over 200 countries and ter- ritories. Approximately 75 percent of sales come from operations outside of the United States. 39,000 Colgate employees drive the Company’s success. Headquartered in New York City, Colgate operates through five divisions around the world: Five Divisions North America Latin America Europe/South Pacific Greater Asia/Africa Hill’s Pet Nutrition The Company has over 60 manufacturing and research facilities globally. The vast major- ity of Colgate products are manufactured in Colgate-owned facilities. Message from CEO n Profile n Strategy n Highlights n Awards n People n Performance n Planet n Emerging Markets n Suppliers n Partnerships n KPI n GRI Index t 5 of 57 u Business Strength Colgate Values Net Sales ($ millions) Colgate’s success is linked to the Company’s values of 2006 $12,238 Caring, Global Teamwork and Continuous Improvement. 2007 $13,790 2008 $15,330 n Caring 2009 $15,327 The Company cares about people: Colgate people, cus- 2010 $15,564 tomers, shareholders and business partners. Colgate is committed to act with compassion, integrity, honesty and Dividends Paid (per common share) high ethics in all situations, to listen with respect to others 2006 $1.25 and to value differences. The Company is also committed 2007 $1.40 to protect the global environment, to enhance the com- 2008 $1.56 munities where Colgate people live and work, and to be 2009 $1.72 compliant with government laws and regulations. 2010 $2.03 n Global Teamwork Operating Profit and Additional Information* ($ millions) All Colgate people are part of a global team, committed 2006 $2,218 $2,566* to working together across countries and throughout the 2007 $2,720 $2,959* world. Only by sharing ideas, technologies and talents 2008 $3,101 $3,265* can the Company achieve and sustain profitable growth. 2009 $3,615 2010 $3,489 $3,796* n * 2010 excludes a one-time charge related to the transition to hyperinflationary accounting in Continuous Improvement Venezuela and certain other 2010 items. Years 2006-2008 exclude restructuring and Colgate is committed to getting better every day in all it implementation-related charges related to the 2004 Restructuring Program and other items that pertain only to 2006 and 2007. A complete reconciliation between reported results (GAAP) and does, as individuals and as teams. By better understanding results excluding these items (Non-GAAP), including a description of such items, is available on Colgate’s web site. consumers’ and customers’ expectations and continuously working to innovate and improve products, services and Diluted Earnings Per Share and Additional Information* processes, Colgate will become the best. 2006 $2.46 $2.91* 2007 $3.20 $3.38* 2008 $3.66 $3.87* 2009 $4.37 2010 $4.31 $4.84* * 2010 excludes a one-time charge related to the transition to hyperinflationary accounting in Venezuela and certain other 2010 items. Years 2006-2008 exclude restructuring and implementation-related charges related to the 2004 Restructuring Program and other items that pertain only to 2006 and 2007. A complete reconciliation between reported results (GAAP) and results excluding these items (Non-GAAP), including a description of such items, is available on Colgate’s web site. Gross Profit Margin and Additional Information* (% of sales) 2006 54.8% 56.4%* 2007 56.2% 57.3%* 2008 56.3% 56.7%* 2009 58.8% 2010 59.1% * Excludes restructuring and implementation-related charges related to the 2004 Restructuring Program. A complete reconciliation between reported results (GAAP) and results excluding charges under the 2004 Restructuring Program and other items (Non-GAAP), including a description of such items, is available on Colgate’s web site. Message from CEO n Profile n Strategy n Highlights n Awards n People n Performance n Planet n Emerging Markets n Suppliers n Partnerships n KPI n GRI Index 2011 to 2015 Sustainability Strategy t 6 of 57 u Colgate’s 2011 to 2015 strategy maintains its emphasis on People, Performance and Planet, with focused, measurable goals that align with the Company’s business objectives. Promoting Contributing Delivering Making Reducing Healthier to the Products Every Drop Our Impact Lives Communities That Delight of Water on Climate Where We Live Consumers Count and the and Work and Respect Environment Our Planet We Will We Will We Will We Will We Will n Promote health n Commit over $300 n Increase the sustain- n Reduce the water n Reduce energy con- and wellness to reduce million to increase our ability profile1 in all new consumed2 in the manu- sumption2 and carbon employee health risks impact in the community products we produce facture of our products emissions2 associated by 15% n Partner with dental and in the balance of by 40% vs. 2005 con- with the manufacture3 n Achieve a 5% reduc- professionals to improve our portfolio sumption and distribution4 of our tion in health costs and community oral health n Ensure that ingredi- n Reduce the use of products by 20% an improvement in early care ents continue to meet water associated with n Reduce waste2 sent diagnosis of chronic and n Expand “Bright or exceed all recognized our products by 15% to landfills from our treatable disease Smiles, Bright Futures” standards for safety, n Work with local and operations by 15% n Continue to focus program externally to quality, and environ- global organizations to n Request that all key on safety to achieve the reach one billion chil- mental compliance and help promote access suppliers measure and
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