1. P&G’s Sustainability Strategy Marina Franke Global Sustainability Corporate External Relations 20-Feb-2007

2. 2 What is Sustainability? Improving the quality of life, now and for generations to come. Environmental Protection Economic Development Social Responsibility

3. 3 Global and European Governments’ Strategies “Sustainable Development”  UN Millennium Goals (poverty, water, health)  European Action Plan  Other Global Regions

4. 4 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.” 3 rd World Summit of Nobel Peace Laureates, 2002 P&G contributes to United Nations Millennium Development Goals of providing safe drinking water in developing regions.

5. 5 Sustainable Development Linking Opportunity with Responsibility

6. P&G Global Sustainability Current Business Cases

7. 7 The need for Clean Water More than 1 billion people lack access to safe drinking water.

8. 8 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.

9. 9 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

10. 10 Millstone Coffee – Fair Trade Rainforest 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)

11. 11 Ariel Cool Wash

12. 12 Ariel Cool Wash

13. 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

14. 14 Consumer Behaviour Correct Dosing Consumer Education Less Materials Compaction Better Packaging Less Resources Low Temp Washing Water Conservation Laundry Sustainability Drivers

15. 15 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

16. 16 Corporate Social Responsibility Our Employees Pension program P&G stock ownership Employee training programs Flexible work hours Mentoring programs Health programs & standards Wellbeing – Fitness Center

17. 17 Ongoing Environmental Responsibility Environmental Audit Program since 1970 Global Environmental Reports since 1993 P&G Global Environmental Management System

18. 18 In Touch - Transparency Annual Sustainability Reports since 1999: www.pg.com/sr Reporting Responsibility 2005 2004 2006

19. 19 Reporting Responsibility Winner 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)

20. 20 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 employees and in local communities (Live, Learn and Thrive)

21. 21 Get the Outside In Relevance 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

22. 22 Sustainable Development Linking Opportunity with Responsibility 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 opportunity for business