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Sustainability Strategy Marina Franke Global Sustainability Corporate External Relations 20-Feb-2007

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Page 1: Global vs Local

P&G’s Sustainability Strategy

Marina FrankeGlobal Sustainability

Corporate ExternalRelations

20-Feb-2007

Page 2: Global vs Local

2

What is Sustainability?

Improving the quality of life,

now and for generations to

come.

• Environmental Protection

• Economic Development

• Social Responsibility

Page 3: Global vs Local

3

Global and European Governments’ Strategies “Sustainable Development”

UN Millennium Goals (poverty, water, health)

European Action Plan

Other Global Regions

Page 4: Global vs Local

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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.

Page 5: Global vs Local

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SustainableDevelopment

LinkingOpportunity

withResponsibili

ty

Page 6: Global vs Local

P&G Global Sustainability

Current Business Cases

Page 7: Global vs Local

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The need for Clean Water

More than 1 billion people

lack access

to safe drinking water.

Page 8: Global vs Local

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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.

Page 9: Global vs Local

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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

Page 10: Global vs Local

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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)

Page 11: Global vs Local

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Ariel Cool Wash

Page 12: Global vs Local

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Ariel Cool Wash

Page 13: Global vs Local

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

Page 14: Global vs Local

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Consumer Behaviour

• Correct Dosing• Consumer Education

Less Materials • Compaction• Better Packaging

Less Resources• Low Temp Washing• Water Conservation

LaundrySustainability Drivers

Page 15: Global vs Local

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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

Page 16: Global vs Local

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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

Page 17: Global vs Local

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Ongoing Environmental Responsibility

• Environmental Audit Programsince 1970

• Global Environmental Reports since 1993

• P&G Global Environmental Management System

Page 18: Global vs Local

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In Touch - Transparency

Annual SustainabilityReports since 1999:

www.pg.com/sr

Reporting Responsibility

2005

2004

2006

Page 19: Global vs Local

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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)

Page 20: Global vs Local

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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)

Page 21: Global vs Local

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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

Page 22: Global vs Local

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SustainableDevelopmen

t

LinkingOpportunity

withResponsibilit

y

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