SUSTAINABILITY AT P&G

P&G A Company of Leading Brands

P&G Sustainability Objective Before You Start Contents Strategy Overview Our Programs Implementing a Program Corporate Contributions Grant Competition Visual Identity Resources and Key Contacts 5 of 35 P&G Sustainability Objective Create long-term value for our consumers and shareholders by growing our brands and operations responsibly to conserve resources and improve life in the communities we impact across the world.

Environmental Sustainability Responsibility Protect the business by ensuring product safety, regulatory compliance, and responsible growth Opportunity Build the business via product innovation and operational eco-efficiency. 5

Opportunity via Product Innovation

Consumer Insights Drive Product Innovation Consumer Types Niche ~15% Highly engaged, will accept trade-offs in cost and performance Sustainable Mainstream ~75% Eco-aware, but will not accept trade-offs in cost and performance Basic 10% Indifferent to sustainability, value conscience P&G’s approach is to drive meaningful improvements in sustainability by targeting mainstream consumers Data have been stable over time and consistent worldwide (US, Canada, Brazil, Europe, Japan, Indonesia, etc.). 7

Science-Based Approach Packaging Distribution Manufacturing Life Cycle Assessment Usage Materials Disposal 8

P&G’s Energy Footprint Energy use by consumers in the home is one of P&G’s biggest sustainability opportunities. 700 600 500 400 300 200 100 Billions of MJ Laundry Fabric softener Hand dish Auto dish Sweeper pads Diapers FemPads Toilet tissue Paper towels Shampoo Snacks Alkaline Razors Distribution Raw Materials Manufacturing Packaging Consumer Use End of Life

Designing Products that Conserve Resources Energy Innovation - Developing products that wash better in cold water Consumer Education – Changing behavior to wash in cold If everyone in the US switched to cold water for machine laundry, the energy savings would be 33 million megawatt-hours, which is equivalent to the energy use of 4.4 million US households (~4%).

Optimizing Transportation Packaging Materials Reduction Designing Products that Conserve Resources Leads to marked sustainability improvements across the entire lifecycle. New Product Design Rigid to Flexible Optimizing Transportation Packaging Compaction New Forms 13

Opportunity via Operational Improvements

Operational Improvements Absolute reductions (2007 – 2012) 5% 7% 14% 68% reduction in CO2 reduction in energy reduction in water reduction in waste

Repurposing Manufacturing Waste Transforming hair care waste into bricks. Blending beauty care waste into leather care products. Many of P&G’s global operation sites are now zero waste to landfill. Using detergent waste to wash cars. 16

Long-term Vision Reduce our environmental footprint. Enable consumers to be more sustainable. Using 100% renewable materials or recyclate for all our products and packaging Powering our plants with 100% renewable energy Designing products that delight consumers while maximizing the conservation of resources Having zero consumer or manufacturing waste go to landfills 17

2020 Goals for Products Packaging Consumer solid waste Renewable Materials Replace 25% petroleum-based materials with sustainably-sourced renewable materials Confirm all palm oil purchases are sustainably sourced by 2015 100% third party certification for virgin wood fiber in tissue towel and absorbent hygiene products by 2015 40% FSC certification for virgin wood fiber in tissue/ towel products by 2015 All paper packaging will contain either recycled or third party certified virgin content by 2020 Cold Water Washing 70% of total washing machine loads Packaging Reduce by 20% (per consumer use)* Consumer solid waste Pilot studies in both developed and developing markets to understand how to eliminate landfilled/dumped consumer solid waste

2020 Goals for Operations Renewable Energy Increase use to 30% in our plants Reduce energy consumption and CO2 emissions (scope 1 + 2) by 20% per unit of production Manufacturing Waste Reduce manufacturing waste to landfill to < 0.5% of input material Transportation Reduce truck transportation by 20% per unit of production * vs. 2010 baseline

Renewable Materials Five U.S. brands collaborating on plant-based PET Coca-Cola, Ford, Heinz, Nike and P&G have joined forces to accelerate the development and use of 100% plant-based PET materials in their products… Plastics Today – June 5, 2012

Renewable Energy • Roughly 7% of our energy today comes from renewable sources. • We are focused on creating innovative solutions by partnering with experts. 2020 Goal: 30% renewable energy

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