2015 Sustainability Report Executive Summary
2015 Sustainability Report Executive Summary
2015 Sustainability Report Executive Summary
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
The environmental focus of this year’s report is on impacting climate • No-deforestation plan — We have reviewed the initial no-deforestation
change. We’ve made meaningful progress, but there is still much more plans from our palm suppliers and are working together to ensure
to do. P&G recognizes the scientific consensus linking greenhouse robust, time-bound policies and systems are in place to meet our
gas (GHG) emissions and climate change. As a global citizen, we are requirements. We are also partnering with industry experts to develop
concerned about the negative consequences of climate change, and new approaches to help the many thousands of smallholders in our
we believe prudent and cost-effective action by governments, industry supply chain comply with our no-deforestation objectives.
and consumers to reduce emissions to the atmosphere is necessary.
• Certification — Currently 100% of our PO and PO derivatives are either
Roundtable on Sustainable Palm Oil (RSPO) mass-balance certified
We announced in September that we will reduce the absolute GHG
or covered by Green Palm certificates. We have reviewed the initial
emissions of our operations by 30% by 2020. We plan to achieve
no-deforestation plans from our palm suppliers and are working
this by driving energy efficiencies in our own facilities and moving to
together to ensure that robust, time-bound policies and systems are
renewable fuel sources. In addition, we will help consumers reduce
in place to meet our requirements.
their own GHG emissions when they use our products through product
and packaging innovations that enable more efficient product use
Furthermore, we achieved our goal of having 100% of the virgin wood
and energy consumption, as well as continued consumer education.
fiber used in our tissue/towel and absorbent hygiene products third-
party certified. We also maintained our focus on Forest Stewardship
In order to be successful, we will also need to partner with external
Council® (FSC) certification and achieved 51% FSC®-certified material
stakeholders to reduce GHG emissions in our supply chain by ensuring
in our tissue/towel products.
our sourcing of renewable commodities does not contribute to
deforestation and by developing renewable material replacements
I have every confidence we will meet our long- and short-term
for petroleum-derived raw materials.
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
Ensuring that palm is grown and harvested without the further clearing
of the program and those continuing the efforts. It has been an
and burning of natural forests, which can impact GHG emissions,
unbelievably fulfilling experience.
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:
LEN SAUERS
• Traceability — At the end of FY 14/15, 89% of our PO and PKO was
Vice President, Global Sustainability
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.
We became a member of We joined RE100 to engage,
Climate Savers, a program to support and showcase
help leadership companies influential companies
accelerate their efforts toward who’ve committed to using
addressing climate change. 100% renewable power.
The Albany biomass plant and the have achieved zero generated in value
manufacturing waste to landfill
Tylers Bluff wind farm will nearly double
our global use of renewable energy.
PACKAGING
Packaging Improvement
RENEWABLE ENERGY
In most parts of Western Europe, Pampers eliminated boxes for some
Wind Farm of our large packs and started using bags only. This change resulted
We announced we are going to partner with EDF RE to build a wind in more than an 80% reduction in packaging material in weight per
farm that will produce enough wind power electricity to manufacture diaper. This saved more than 6,000 tons of packaging (the equivalent
100% our Fabric and Home Care products such as Tide, Downy, of 4,000 mid-sized cars). We also used nearly 10% less plastic, which
Febreze and Cascade in the U.S. and Canada by the end of 2016. saved 900 tons of plastic. Because of this packaging improvement,
To accomplish this, the wind farm in Texas will bring 100 megawatts we were able to ship more diapers on each pallet using about
of renewable power online. This is the equivalent of eliminating 14,000 fewer pallets, resulting in more than 400 fewer trucks on
200,000 metric tons of GHG emissions per year, demonstrating P&G’s the road. This also saved more than 160 tons of CO2 emissions.
commitment to support new sources of renewable energy and Consumers also told us they like the new bags because they are
reduce GHG emissions. easier to transport and store.
P&G is committed to
ZERO
deforestation in our
palm supply chain.
No Prewash Needed multi-national companies to form the Closed Loop Fund (CLF), a social
impact investment fund providing cities with access to the capital
In the U.S., Cascade Platinum Action Pacs clean stuck-on food in just required to build comprehensive recycling programs. This year, CLF
one wash, with no prewash needed. This enables P&G to help announced its first three investments totaling $7.8 million in capital,
consumers reduce their water use with every pot, plate or pan they which in turn unlocked an additional $17 million from other public and
put in the dishwasher. In fact, for each person who skips the prewash, private co-investors. P&G has also joined The Recycling Partnership
up to 2,600 gallons of water can be saved in a household per year (TRP), a national recycling non-profit organization with a focus on
(based on an average of 12.5 gallons of prewashing water used and supporting public-private partnerships that serve to improve residential
an average of four loads per week). This innovative technology is recycling in the U.S. Innovative partnerships such as these will play
getting us closer to our goal of providing 1 billion people around the a key part in increasing the availability of recycled materials and
world with access to water-efficient products by 2020. ultimately help move us closer to our vision of zero waste to landfill.
2,600 gallons
of water can be saved when
prewash is skipped
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 is committed to playing its part to help end the global water
crisis. With the support of our leading brands and our partners,
20 million
we have committed to delivering 15 billion liters of clean drinking liters of clean drinking water
water through the CSDW Program by 2020. We will continue to in the aftermath of the Nepal
use our global marketing reach to raise awareness of the global earthquake
water crisis, engaging consumers to get involved and help save lives
through the power of clean water.
Always Pantene
For the last 30 years, Always, the leader in global feminine care, Pantene Beautiful Lengths provides free, real-hair wigs to women
has accompanied and empowered young girls through better who have lost their hair due to cancer treatments. Since 2006, more
understanding of their bodies and the complex, transformative time than 800,000 ponytails have been donated and 42,000 wigs have
of puberty. Always’ puberty education program reaches up to 20 million been created. The wigs are distributed through American Cancer
girls a year in 65 countries. In 2014, new Always research revealed that Society wig banks at no cost to cancer patients. Many of the women
girls experience a drop in confidence at the start of puberty with their helped say that putting on a wig makes them feel like themselves
first period. Stopping the drop in confidence became Always’ mission. again. In 2014, the Pantene Beautiful Lengths Fund was established
In June 2014, Always launched the #LikeAGirl campaign with a film that in partnership with the Greater Cincinnati Foundation, enabling people
shows how harmful words can contribute to lower self-confidence. who are unable to donate their hair to get involved in the program
The film has been viewed more than 90 million times across the and to help create more wigs than ever before.
globe, demonstrating the profound effect the phrase “like a girl” can
800,000 42,000
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” donated ponytails wigs created
before the campaign, 76% agree they no longer view the phrase as
an insult after watching the Always #LikeAGirl film.*
Secret
Safeguard 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
Safeguard knows that clean hands save lives and make families 55% of teens having witnessed bullying online. Secret’s “Gang
healthy and happy. It is clinically proven that washing hands with of Good” has generated over 2 million acts of nice by putting the
soap and water can prevent almost 4 million children per year power directly in girls’ hands. Last year, Mean Stinks held the Biggest
from dying before their 5th birthday. In FY 14/15, Safeguard reached Assembly Ever, viewed by 2,000 schools across the nation, where
over 6.8 million children through school education. Safeguard is the brand discussed the negative effects of bullying and how to end
committed to teaching school children good hygiene habits that will it. Secret also developed an anti-bullying curriculum with Cincinnati
keep them healthy and free from preventable illnesses such as diarrhea, Children’s Hospital (GirlsGuideToEndBullying.org) that has been
coughs and colds through school programs and an online hub with proven to decrease the experiences of being bullied through tips,
resource materials for moms and teachers alike. Safeguard’s superhero, activities and advice that girls can apply to their lives. In the upcoming
Commander Safeguard, teaches healthy hand-washing habits though year, Secret will partner with Teen Vogue to encourage girls to take
school visits, videos, animations, story books and games. a pledge and share how they will end bullying on social media.
• Using 100% renewable or recycled materials for all products • Designing products that delight consumers while maximizing
and packaging 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 • We have reduced water usage by about 21%, exceeding our goal.
conservation focused on water-stressed regions.*
• 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 • In FY 14/15, approximately 85% of our packaging was considered recyclable.
to create the ability to recycle it.
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 • The capability to substitute plastic resins has been demonstrated while work
with renewable materials, as cost and scale permit. on other key material classes continues.
• Ensure traceability of PO and PKO to our supplier mills by December 31, 2015, • We will achieve our 2015 traceability goal by December 31, 2015, and continue
and to plantations by 2020 to ensure zero deforestation in our PO supply chain, to make progress on our smallholder efforts.
with a commitment to working with small farmers.
• Have 100% of the virgin wood fiber used in our tissue/towel and absorbent • This year we met our goal of having 100% of the virgin wood fiber used in
hygiene products be third-party certified by 2015. our tissue/towel and absorbent hygiene products be third-party certified.
• Have 100% of our paper packaging contain either recycled or third-party-certified • Approximately 97% of materials surveyed this year were either recycled or
virgin content by 2020. third-party-certified virgin content.
• Continued progress on ZMWTL. • 68 sites, which accounts for nearly 50% of our manufacturing sites,
have reached zero manufacturing waste to landfill (ZMWTL).
Social Programs
• Improve the lives of 50 million people each year through our social • This year, we estimate P&G has benefited more than 50 million people
sustainability programs. through programs like P&G CSDW, Always #LikeAGirl, Pantene Beautiful Lengths,
Safeguard Hand Washing and Disaster Relief around the world.**
• Provide 15 billion liters of clean drinking water by 2020. • The P&G CSDW Program has delivered more than 9 billion liters of clean drinking
water and is on track to meeting the 2020 goal.
(1) Results exclude sales for several Beauty categories P&G plans to exit, as the Company announced on July 9, 2015. Please see www.pginvestor.com for the informational 8-K furnished on
September 8, 2015, and the revised Form 10-K for FY 14/15 furnished on October 26, 2015, which provide more details of the impacts to the Company’s financial results due to this change.
(2) These results exclude net sales in Corporate.