Sustainability & Innovation

Improving quality of life, now and for generations to come

At P&G, sustainability is embedded into both our business strategy and our holistic view of innovation. By incorporating sustainability into the rhythm of our work, we delight consumers who want to make sustainable choices but do not want to make trade-offs in performance or value. We believe this is where P&G innovation can make the most meaningful difference.

By viewing innovation systemically through the lens of sustainability:

We define innovation broadly, looking for sustainability opportunities at every touch-point along the path of our products.

This definition encompasses raw materials, formulation, manufacturing, customization, logistics, customers, and consumers. In fact, we find that a big innovation in one part of the path often sparks innovations in other areas. For example, when we moved our line of liquid laundry detergents in North America to a 2x concentration, we delivered significant environmental improvements in water, energy, and CO₂ usage as a result of the product/packaging changes and a significant reduction in distribution miles. In addition, we innovated in our customer interface to reduce solid waste.

We invest in innovation to improve the environmental profile of our operations and products.

In addition to investing in product development of more sustainable products, we have systematized the process of sustainably designing and building new facilities. In Box Elder, Utah, we recently broke ground on a state-of-the-art manufacturing facility that will deliver improvements in energy, water, solid waste and indoor environmental quality.

We manage innovation with discipline, using science-based, rigorous tools such as life cycle assessment (LCA).

These tools aid in identifying sustainability opportunities for our products, from discovery through disposal to potential reuse. LCA shows that consumers use a vast amount of energy to heat water for laundry. We optimized Ariel laundry detergent to have excellent cleaning performance in cold water. We then partnered with several external thought leaders to educate consumers to “Turn to 30°C” to save energy, and we are making a measurable difference. In the UK, for example, this has helped move from 2% of consumers who washed in cold in 2002, to 17% today. In packaging, software has been developed that optimizes material use, leading to decreases in the amount of plastic used. This innovation has been shared externally and supported by WRAP (The Waste & Resources Action Programme) in the UK.

We deliver innovation with a balance of sustainable improvements, seen and unseen.

Some improvements, like reducing waste with a smaller Bounty paper towel for smaller spills, are obvious product changes to the consumer. Others, such as innovations in our manufacturing operations, are not visible — yet they can deliver substantial sustainability improvements. For example, changes in our manufacturing processes over the last five years on Bounty and Charmin have reduced energy, CO₂ and water usage.

We lead innovation by inspiring our employees to take more personal responsibility in delivering the Company’s sustainability goals.

This past Earth Day, we launched an employee engagement program called “Take the R for Tomorrow.” This program is already delivering results by increasing employee recycling and video collaboration instead of travel. Our people, along with our external partners, are also establishing innovative solutions to help improve the lives of millions of children in need through our P&G Live, Learn and Thrive™ programs. In China recently, our employees proudly marked the opening of our 140th P&G Hope School to help educate children in rural areas.

While P&G has a long track record of sustainability leadership and results, we recognize our impact as a global company and accept our responsibility for continual improvement. This is embedded in who we are and what we do. And, we will remain committed to helping solve the world’s sustainability challenges because we are designed to innovate, now and for generations to come.

We invite you to learn more. Please visit www.pg.com/sustainability.