SuperTutor
$15/per page/Negotiable
2015 Sustainability Report
Executive Summary Environmental and social responsibility are part
of everyone’s job at P&G. They are integrated
into our daily work and business operations.
DAVID S. TAYLOR
President and Chief Executive Officer ABOUT OUR 17TH ANNUAL SUSTAINABILITY REPORT
The following pages highlight our sustainability work for FY 14/15 and the progress we’ve made toward our 2020 goals. We are sharing just a few examples
of work being done across the Company and around the world to make the lives of consumers better, while also making their — and our — environmental
footprint smaller. Our full report, with more stories and data, was prepared using the Global Reporting Initiative’s (GRI) G3 guidelines and can be found online
at: www.pg.com/sustainability. Leadership Statement At P&G, sustainability is integrated into
the way we do business, but we know
there is much more we can do.
In this report, we highlight how we are working against our specific
near-term goals on our way to our ambitious long-term vision
to power all our plants with 100% renewable energy, to use 100%
renewable or recycled material for all products and packaging, and
to have zero consumer and manufacturing waste go to landfills.
Put simply, our objective is to design products that delight consumers
while maximizing the preservation of resources. We want our brands
to help consumers make more sustainable choices.
We have been dedicated to driving change within our own Company
by partnering with others to drive industry standards and practices
that make a difference. We have a long track record of doing the right
thing, from pioneering industry breakthroughs such as compaction,
integrating recycled content into packaging and supply chain innovation.
This report captures our efforts over the past year and highlights
some of our biggest achievements. Our focus areas remain the same:
• Preservation of resources — We are focused on our energy usage,
including our need to help drive consumer behavior change
with initiatives such as our Cold Water washing campaign, reduced
packaging, reduced water usage and increased recycled content
in our packaging.
• Renewable resources — Our focus is to bring more renewable
energy into our plants, to find substitutes for petroleum-derived
raw materials, and to ensure responsible and sustainable sourcing
for renewable materials, including palm oil (PO), wood pulp and
paper packaging. • Worth from Waste — We continue our efforts toward eliminating
manufacturing waste to landfill and exploring partnerships with
multiple stakeholders to help us better understand how we can
recover greater value from post-consumer waste and ultimately
help eliminate solid waste to landfill.
• Social programs — As a good corporate citizen, we have a long history
of giving back to those in need. We do this through the P&G Children’s
Safe Drinking Water (CSDW) Program, our disaster relief efforts
and our brand programs such as Pampers’ partnership with UNICEF.
We are focused in these areas, and we know that protecting the earth
and giving back to those in need is a responsibility and a business
opportunity. We plan to accelerate our delivery of these objectives by
ensuring the full integration of sustainability initiatives within the
strategies and plans of our 10 core businesses. Progress versus our goals
is owned by our business leaders. We will also support each of our key
brands in making their sustainability vision and actions accessible to
consumers and other stakeholders. We look forward to sharing further
updates on the positive impact of these important efforts.
I want to thank our employees and external partners who have been
involved in this work for making the stories in this report possible. Your
efforts represent important progress that inspires us all to do more. MARTIN RIANT
Group President, Executive Sponsor for Sustainability Our Goals We’ve made important progress
in our efforts to address climate change.
The environmental focus of this year’s report is on impacting climate
change. We’ve made meaningful progress, but there is still much more
to do. P&G recognizes the scientific consensus linking greenhouse
gas (GHG) emissions and climate change. As a global citizen, we are
concerned about the negative consequences of climate change, and
we believe prudent and cost-effective action by governments, industry
and consumers to reduce emissions to the atmosphere is necessary.
We announced in September that we will reduce the absolute GHG
emissions of our operations by 30% by 2020. We plan to achieve
this by driving energy efficiencies in our own facilities and moving to
renewable fuel sources. In addition, we will help consumers reduce
their own GHG emissions when they use our products through product
and packaging innovations that enable more efficient product use
and energy consumption, as well as continued consumer education.
In order to be successful, we will also need to partner with external
stakeholders to reduce GHG emissions in our supply chain by ensuring
our sourcing of renewable commodities does not contribute to
deforestation and by developing renewable material replacements
for petroleum-derived raw materials.
Ensuring that palm is grown and harvested without the further clearing
and burning of natural forests, which can impact GHG emissions,
climate change and biodiversity, is a priority for the industry. While we
are not a big user of PO, we do use ingredients derived from palm
kernel oil (PKO) in some of our products, and we are committed to
sourcing it sustainably. We have made progress in this area through:
• Traceability — At the end of FY 14/15, 89% of our PO and PKO was
tracked to the PO mill and PKO mill level. We are on track to reach
our 100% PO and PKO traceability goal by the end of 2015. • No-deforestation plan — We have reviewed the initial no-deforestation
plans from our palm suppliers and are working together to ensure
robust, time-bound policies and systems are in place to meet our
requirements. We are also partnering with industry experts to develop
new approaches to help the many thousands of smallholders in our
supply chain comply with our no-deforestation objectives.
• Certification — Currently 100% of our PO and PO derivatives are either
Roundtable on Sustainable Palm Oil (RSPO) mass-balance certified
or covered by Green Palm certificates. We have reviewed the initial
no-deforestation plans from our palm suppliers and are working
together to ensure that robust, time-bound policies and systems are
in place to meet our requirements.
Furthermore, we achieved our goal of having 100% of the virgin wood
fiber used in our tissue/towel and absorbent hygiene products thirdparty certified. We also maintained our focus on Forest Stewardship
Council® (FSC) certification and achieved 51% FSC®-certified material
in our tissue/towel products.
I have every confidence we will meet our long- and short-term
goals outlined in this report, and as I reminisce on how far we’ve
come, I am inspired by the many people who have been part
of the program and those continuing the efforts. It has been an
unbelievably fulfilling experience. LEN SAUERS
Vice President, Global Sustainability We became a member of
Climate Savers, a program to
help leadership companies
accelerate their efforts toward
addressing climate change. We joined RE100 to engage,
support and showcase
influential companies
who’ve committed to using
100% renewable power. At P&G, we’re committed to reducing
greenhouse gas emissions impacting climate
change. We’ve taken several steps to increase
our commitment to renewable energy.
We joined the Corporate
Renewable Energy Buyers’
Principles in collaboration
with peers to deliver more
affordable, clean energy
today and in the future. We signed the American
Business Act on Climate Change
to reinforce our commitments
and encourage others to take
action on climate. Environmental Sustainability We want people who choose P&G brands to know that our
products are created with a commitment to sustainability.
From formulation to manufacturing to package design and
shipment, our products are made responsibly and without
trade-offs in performance or value.
RENEWABLE ENERGY WASTE Biomass Plant Zero Waste to Landfill To advance progress against our 100% renewable energy vision,
we announced in February that we are partnering with Constellation
to build a 50-megawatt biomass plant at our Albany, Ga., plant, one
of P&G’s largest U.S. facilities where we make Charmin and Bounty
products. This facility will produce 100% of the steam and up to
70% of the total energy for the site from renewable sources and,
along with the Tylers Bluff wind farm in Texas (see story below), will
nearly double our global use of renewable energy. Constellation will
build, own and operate the $200 million cogeneration plant that is
expected to begin commercial operations in June 2017. P&G and
Constellation also proactively developed fuel-procurement standards
to ensure the incoming scrap wood used at the plant is responsibly
and sustainably sourced. Currently, 68 sites have achieved zero manufacturing waste to landfill
(ZMWTL), which is nearly half of our global sites. In addition, we now
have four countries where 100% of the manufacturing sites within the
country have achieved ZMWTL — Germany, Japan, Poland and Vietnam.
As a result of these actions, we have generated more than $1.6 billion
in value for the Company through savings and revenue creation. The Albany biomass plant and the
Tylers Bluff wind farm will nearly double
our global use of renewable energy. This important progress is a direct result of the internal and external
partnerships being led by our Global Asset Recovery & Purchases
(GARP) team, our manufacturing plants, our distribution centers and
our recycling vendors. 68 sites $ 1.6 billion have achieved zero
manufacturing waste to landfill generated in value PACKAGING Packaging Improvement
RENEWABLE ENERGY Wind Farm
We announced we are going to partner with EDF RE to build a wind
farm that will produce enough wind power electricity to manufacture
100% our Fabric and Home Care products such as Tide, Downy,
Febreze and Cascade in the U.S. and Canada by the end of 2016.
To accomplish this, the wind farm in Texas will bring 100 megawatts
of renewable power online. This is the equivalent of eliminating
200,000 metric tons of GHG emissions per year, demonstrating P&G’s
commitment to support new sources of renewable energy and
reduce GHG emissions. In most parts of Western Europe, Pampers eliminated boxes for some
of our large packs and started using bags only. This change resulted
in more than an 80% reduction in packaging material in weight per
diaper. This saved more than 6,000 tons of packaging (the equivalent
of 4,000 mid-sized cars). We also used nearly 10% less plastic, which
saved 900 tons of plastic. Because of this packaging improvement,
we were able to ship more diapers on each pallet using about
14,000 fewer pallets, resulting in more than 400 fewer trucks on
the road. This also saved more than 160 tons of CO2 emissions.
Consumers also told us they like the new bags because they are
easier to transport and store. P&G is committed to ZERO deforestation in our
palm supply chain. RESPONSIBLE SOURCING TRANSPORTATION Palm Oil Optimizing Distribution At P&G, we are unequivocally committed to achieving zero deforestation
in our palm supply chain and using our innovation strength to drive
positive change in the industry. We have been driving progress via
a three-pillar approach. First, we are working with suppliers to ensure
they meet our traceability and no-deforestation requirements.
Second, our small-farmers program is working to improve practices
and livelihoods for smallholders in the PKO supply chain. Finally,
we are working with the industry and nongovernmental organizations
(NGOs) to set standards and methodologies. We continue to connect
and collaborate with multiple stakeholders to drive harmonized
industry standards and approaches to advance P&G and industrywide PO efforts. In 2013, P&G made a stretching commitment to move 20% of our
North America truck transportation to cleaner-burning natural gas
within two years. The intent was to spur innovation and additional
infrastructure that would benefit both P&G and other natural-gas
users. We have more than tripled our amount of active compressed
natural-gas (CNG) lanes since last year and have realized several million
dollars in fuel savings. This year, we have logged more than 14 million
miles and have contracts in place that will enable us to move 25%
of our North America truck transportation to natural gas by next year. PRODUCT FORMULATION No Prewash Needed
In the U.S., Cascade Platinum Action Pacs clean stuck-on food in just
one wash, with no prewash needed. This enables P&G to help
consumers reduce their water use with every pot, plate or pan they
put in the dishwasher. In fact, for each person who skips the prewash,
up to 2,600 gallons of water can be saved in a household per year
(based on an average of 12.5 gallons of prewashing water used and
an average of four loads per week). This innovative technology is
getting us closer to our goal of providing 1 billion people around the
world with access to water-efficient products by 2020. 2,600 gallons
of water can be saved when
prewash is skipped PACKAGING Driving Progress on Recycling
Last year, we announced that P&G joined forces with several large,
multi-national companies to form the Closed Loop Fund (CLF), a social
impact investment fund providing cities with access to the capital
required to build comprehensive recycling programs. This year, CLF
announced its first three investments totaling $7.8 million in capital,
which in turn unlocked an additional $17 million from other public and
private co-investors. P&G has also joined The Recycling Partnership
(TRP), a national recycling non-profit organization with a focus on
supporting public-private partnerships that serve to improve residential
recycling in the U.S. Innovative partnerships such as these will play
a key part in increasing the availability of recycled materials and
ultimately help move us closer to our vision of zero waste to landfill. Social Sustainability For more than 175 years, doing the right thing has
been at the core of P&G’s purpose, values and principles.
This includes investing in the communities where we
live, work and serve. P&G Children’s Safe Drinking Water Disaster Relief This year, the P&G CSDW Program celebrated its 10th anniversary of
sharing the power of clean water with families who need it most. With
more than 175 years of experience developing cleaning technologies,
P&G scientists invented P&G Purifier of Water, which was based on
research behind our laundry detergents. This packet puts the power of
clean water into a small sachet the size of a tea bag. Working with
more than 150 partners, the CSDW Program has shared 8.9 billion liters
of clean water in more than 75 countries, helping to save lives and
prevent illness to keep people healthy, enable access to education
and create economic opportunities that help families to thrive. The P&G Disaster Relief program is committed to helping rebuild
lives after widespread disasters by providing the comforts of home
that people need. In FY 14/15, P&G responded by providing in-kind
product and monetary donations to more than 25 disasters globally.
These included support for the Ebola outbreak in West Africa, families
displaced by conflict in Ukraine, earthquake relief in China, Panama
floods and the tropical cyclone in Vanuatu. The biggest response
this year was to help those affected by a devastating 7.8 magnitude
earthquake that struck Nepal in April 2015. In the days and weeks
that followed, a massive humanitarian aid effort was organized
to help respond to the critical need for food, water, shelter and other
necessities. In the immediate aftermath, P&G provided product
donations from brands such as Whisper and Vicks and monetary
donations to some of its long-standing emergency relief partner
organizations, including AmeriCares, CARE, International Medical
Corps, Save the Children and World Vision. Through the P&G CSDW
Program, we helped to distribute enough packets to provide 20 million
liters of clean drinking water in collaboration with our partners CARE,
DayOne Response, HOPE, IMC, PSI, Thai Red Cross, Vishal Group,
World Vision and World Wildlife Fund. Employees also generously
donated to a global P&G matching disaster relief fund for Nepal. This year P&G distributed more than 130 million P&G packets to
emergency relief and development programs around the world, and
CSDW expanded operations in 20 countries, including Argentina,
Indonesia and Kenya, where the recipient of the 8 billionth liter was
Boniface O. and his family, who live near Kisumu in western Kenya.
Through a community program with P&G partner CARE International,
Boniface learned how to purify water with P&G packets at his school.
In the past, he used to get sick and miss school from drinking dirty
water, but now he is healthy, strong and able to attend class. He and
his classmates share the packets and healthy hygiene habits with their
families, which has helped transform the health of the local community.
P&G is committed to playing its part to help end the global water
crisis. With the support of our leading brands and our partners,
we have committed to delivering 15 billion liters of clean drinking
water through the CSDW Program by 2020. We will continue to
use our global marketing reach to raise awareness of the global
water crisis, engaging consumers to get involved and help save lives
through the power of clean water. 20 million
liters of clean drinking water
in the aftermath of the Nepal
earthquake Always Pantene For the last 30 years, Always, the leader in global feminine care,
has accompanied and empowered young girls through better
understanding of their bodies and the complex, transformative time
of puberty. Always’ puberty education program reaches up to 20 million
girls a year in 65 countries. In 2014, new Always research revealed that
girls experience a drop in confidence at the start of puberty with their
first period. Stopping the drop in confidence became Always’ mission.
In June 2014, Always launched the #LikeAGirl campaign with a film that
shows how harmful words can contribute to lower self-confidence.
The film has been viewed more than 90 million times across the
globe, demonstrating the profound effect the phrase “like a girl” can
have on girls’ self-confidence. Millions of girls around the world have
rallied to change #LikeAGirl to mean amazing things. This massive
engagement has started to change public perception: while only
19% of girls had a positive association with the phrase “like a girl”
before the campaign, 76% agree they no longer view the phrase as
an insult after watching the Always #LikeAGirl film.* Pantene Beautiful Lengths provides free, real-hair wigs to women
who have lost their hair due to cancer treatments. Since 2006, more
than 800,000 ponytails have been donated and 42,000 wigs have
been created. The wigs are distributed through American Cancer
Society wig banks at no cost to cancer patients. Many of the women
helped say that putting on a wig makes them feel like themselves
again. In 2014, the Pantene Beautiful Lengths Fund was established
in partnership with the Greater Cincinnati Foundation, enabling people
who are unable to donate their hair to get involved in the program
and to help create more wigs than ever before. 800,000 42,000 donated ponytails wigs created Secret
Safeguard
Safeguard knows that clean hands save lives and make families
healthy and happy. It is clinically proven that washing hands with
soap and water can prevent almost 4 million children per year
from dying before their 5th birthday. In FY 14/15, Safeguard reached
over 6.8 million children through school education. Safeguard is
committed to teaching school children good hygiene habits that will
keep them healthy and free from preventable illnesses such as diarrhea,
coughs and colds through school programs and an online hub with
resource materials for moms and teachers alike. Safeguard’s superhero,
Commander Safeguard, teaches healthy hand-washing habits though
school visits, videos, animations, story books and games. *Always Puberty & Confidence Wave II Study, 2015 Secret’s Mean Stinks program exists to encourage girls to put an
end to girl-to-girl bullying. Bullying in social media is increasing, with
55% of teens having witnessed bullying online. Secret’s “Gang
of Good” has generated over 2 million acts of nice by putting the
power directly in girls’ hands. Last year, Mean Stinks held the Biggest
Assembly Ever, viewed by 2,000 schools across the nation, where
the brand discussed the negative effects of bullying and how to end
it. Secret also developed an anti-bullying curriculum with Cincinnati
Children’s Hospital (GirlsGuideToEndBullying.org) that has been
proven to decrease the experiences of being bullied through tips,
activities and advice that girls can apply to their lives. In the upcoming
year, Secret will partner with Teen Vogue to encourage girls to take
a pledge and share how they will end bullying on social media. 2020 Goals Progress
We are working toward our long-term vision of:
• Powering all our plants with 100% renewable energy • Having zero consumer and manufacturing waste go to landfills • Using 100% renewable or recycled materials for all products
and packaging • Designing products that delight consumers while maximizing
the conservation of resources We have established specific goals to demonstrate we are making progress against our long-term vision. The table
below updates progress against our goals.
GOAL RESULT Conservation of Resources
• Reduce energy use at P&G facilities by 20% per unit of production by 2020.* • Since 2010, we have reduced our energy usage by about 15%. • Reduce absolute GHG emissions by 30% by 2020*. • Since 2010, we have reduced our absolute GHG emissions by 4%. • Ensure 70% of all washing machine loads are washed in cold water. • Our data indicates the percentage of global washing machine loads washed
in cold water increased from 38% to 56%. • Reduce truck transportation kilometers by 20% per unit of production.* • We reduced our truck transportation by approximately 25% per unit of
production, exceeding our goal. • Reduce water use in manufacturing facilities by 20% per unit of production with
conservation focused on water-stressed regions.* • We have reduced water usage by about 21%, exceeding our goal. • Provide 1 billion people access to water-efficient products. • In FY 14/15, we estimate that approximately 140 million consumers had access
to water-efficient products. • Reduce packaging by 20% per consumer use.* • Since 2010, we have reduced packaging by approximately 10% per consumer use. • Double use of recycled resin in plastic packaging.* • This year, we used approximately 29,200 tons of post-consumer resin (PCR) in our
plastic packaging, which represents an increase of approximately 12% vs. baseline. • Ensure 90% of product packaging is either recyclable or programs are in place
to create the ability to recycle it. • In FY 14/15, approximately 85% of our packaging was considered recyclable. Renewable Resources
• Ensure plants are powered by 30% renewable energy. •O
ur use of renewable energy is approximately 9%. We continue to evaluate and
expand our portfolio of energy sources. • Create technologies by 2020 to substitute top petroleum-derived raw materials
with renewable materials, as cost and scale permit. • The capability to substitute plastic resins has been demonstrated while work
on other key material classes continues. • Ensure traceability of PO and PKO to our supplier mills by December 31, 2015,
and to plantations by 2020 to ensure zero deforestation in our PO supply chain,
with a commitment to working with small farmers. • We will achieve our 2015 traceability goal by December 31, 2015, and continue
to make progress on our smallholder efforts. • Have 100% of the virgin wood fiber used in our tissue/towel and absorbent
hygiene products be third-party certified by 2015. • This year we met our goal of having 100% of the virgin wood fiber used in
our tissue/towel and absorbent hygiene products be third-party certified. • Have 100% of our paper packaging contain either recycled or third-party-certified
virgin content by 2020. • Approximately 97% of materials surveyed this year were either recycled or
third-party-certified virgin content. Worth from Waste
• Conduct pilot studies in both the developed and developing world to understand
how to eliminate landfilled/dumped solid waste. • We are involve...