1. What is "Sustainability," and what does this mean to P&G?
P&G embraces the UK government definition of sustainability, which says: "Sustainable Development is a very simple idea. It is about ensuring a better quality of life for everyone, now and for generations to come." This definition speaks to a better quality of life for everyone, both in the developed and the developing world. It also is aspirational and aligns very well with our Statement of Purpose.

Sustainability integrates economic development, environmental protection and social responsibility. For P&G, sustainability provides us with a holistic approach to address the moral and ethical values of our consumers and other key stakeholders, along with their simultaneous desire for a higher and more rewarding quality of life. Sustainability provides an opportunity to build our business by bringing P&G technologies and innovation to address the values, concerns and frustrations that consumers face in their everyday lives. . .nutrition, litter, water-borne diseases, sanitation, health care, time available to spend with family, etc.

2. What is P&G's position on Sustainable Development?
P&G believes that improving the lives of the world's consumers encompasses the three pillars of Sustainability: Economic Development, Environmental Protection and Social Responsibility. We contribute to improving quality of life for people around the world both through what we do (providing goods and services to improve lives) and how we do it (through Corporate Social Responsibility).

There are two key focus areas that are integral to the success of P&G's business:

1. Corporate Social Responsibility
   
2. Sustainable production and consumption of products

To support these areas, the Company upholds the following basic principles:

1. Conducting business with integrity and a core value to "do the right thing"
   
2. A global free market, governed by the rule of law
   
3. A climate of innovation
   
4. Decisions based on sound science
   
5. Freedom of consumer choice

3. How is P&G organized to meet Sustainability requirements?
P&G Global Sustainability was formed in July 1999 as a global organization. The Global Sustainability department focuses on defining P&G’s overall Sustainability policy, identifying emerging Sustainability issues, managing Corporate Sustainability Reporting, building external relation and assisting the business units to incorporate Sustainable Development into their businesses.

4. What is the vision of P&G Global Sustainability?
Our vision is to help P&G become a Sustainable Corporation by delivering unique solutions to improve lives, protect the environment and build shareholder value with the support of our consumers, employees, communities, shareholders, governments and thought leaders.

5. How is this concept being used in P&G's business?
We decided to focus on areas where we can make a positive difference. We chose two key themes, significant to a variety of P&G's businesses. They are (1) water and (2) health and hygiene. These focus areas support our ongoing work to understand issues concerning water availability, quality and quantity, and health, hygiene and nutritional issues.

6. Does P&G report on Sustainability topics?
Yes, we produce an annual Internet-based global Sustainability Report. P&G prepared its first Sustainability Report in October, 1999. Previously, we had been producing separate reports on environmental, economic and social performance for several years, but we now have linked these issues together in a Sustainable Development report. We are using a report format developed by the Global Reporting Initiative (GRI). Copies of our Sustainability Reports are available at http://www.pg.com/sr.

7. What is the Global Reporting Initiative (GRI)? Why is P&G following their guidelines?
The GRI provides a common format for Sustainability Reporting that assists both the organization providing the report and those using the report as a key source of data. The GRI consists of multinational corporations, Non-Governmental Organizations (NGOs), international associations, universities and other stakeholders from around the world. More information can be found at their Web site at: http://www.globalreporting.org.

P&G decided to pilot the GRI guidelines for its first Sustainability Report because it offered a consistent format for gathering economic, social and environmental performance trend data and reporting this information on a global basis.

8. Has P&G been rated by the Dow Jones Sustainability Group Index (DJSI)?
For 2007, P&G is ranked as the leading company in the consumer, non-cyclical market sector of the Dow Jones Sustainability Group Index. This is the seventh year in a row that P&G has been ranked first.

BACK TO TOP

1. Why is the Sustainability Report so thin on financial information?
We have provided only top-line financial information in the Sustainability Report, as detailed financial information is available in P&G's Annual Report available at http://www.pg.com/investors. As we gather our own and GRI's experience in reporting on Sustainability, we will reassess the general need for greater economic data reporting and analysis in future Sustainability Reports.

2. Isn't making money, by definition, in contrast with improving environmental performance?
We aim to develop products that will improve lives, make a valuable economic contribution to communities, earn a profit and, through innovation, lower environmental impact. In short, we believe that social and economic drivers are fundamental for improving environmental performance, and are striving for a win-win-win solution.

3. Is P&G meeting Sustainability targets in terms of profit growth?
Previous announcements about P&G's restructuring program, O-2005, have addressed our targets for profit, volume and shareholder value. Our focus on Sustainability is consistent with the new business structure.

4. How does Sustainability contribute to building the business?
Our Sustainability journey is only just beginning. While we are still learning how Sustainable Development becomes integral to our business, the first several years have seen meaningful milestones on this journey. In the fall of 1999, we test marketed NutriDelight, a new drink product that was developed jointly with The United Nations Children's Fund (UNICEF). It has the potential to significantly address the problem of micronutrient deficiency in vitamin A, iron and iodine in school-age children. In 1999, we acquired the ® water filtration business, which holds great potential for the availability of clean drinking water worldwide. Finally, in 2000, we received regulatory approval in both Europe and the U.S. for Actonel®, a prescription drug for the treatment and prevention of postmenopausal osteoporosis.

BACK TO TOP

1. How does P&G demonstrate its Social Responsibility?
P&G has always conducted its business with integrity and a strong P&G core value of "doing the right thing." We have long been leaders in human resource management, employee compensation and benefits, workplace safety, environmental management of our operations, ethical business practices and involvement in the communities where we have operations.

2. What is Corporate Social Responsibility (CSR)?
We have embraced the World Business Council on Sustainable Development (WBCSD) definition of Corporate Social Responsibility, which is the "continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families, as well as of the local community and society at large." The WBCSD has identified five priority CSR areas:

1. Human rights
   
2. Employee rights
   
3. Environmental protection
   
4. Community involvement
   
5. Supplier relations

3. Do you have a code of conduct?
For several years, P&G has had a Worldwide Business Conduct Manual, which provides specific guidance to P&G employees on the Company's expectations of their behavior. We also publish a booklet, "Our Values and Code of Conduct," for anyone interested in P&G's policies as they apply to Sustainable Development and Corporate Social Responsibility. A copy of "Our Values and Code of Conduct," and our expectations of suppliers, is available at: http://www.pg.com/sr.

4. What is P&G's position on child and forced labor?
P&G does not use child or forced labor in any of our global operations or facilities. We do not tolerate unacceptable worker treatment, such as exploitation of children, physical punishment or abuse or involuntary servitude. We expect our suppliers and contractors with whom we do business to uphold the same standards. Should a pattern of violation of these principles become known to the Company and not be corrected, we will discontinue the business relationship.

5. In early 2001, P&G announced layoffs estimated to affect 15,000 employees. How is this Socially Responsible?
P&G, like every other successful company, must change its work processes in line with advances in technology, infrastructure, organizational and other developments to remain competitive, and this can involve a surplus of people in some locations. When this happens, P&G is guided by its long-standing principles of fairness, respect for individuals and working together with the people involved on the basis of trust.

6. Are you an endorser of the Global Sullivan Principles?
P&G is an original charter supporter of the Global Sullivan Principles of Corporate Social Responsibility. We have internal policies and procedures in place, consistent with the Global Sullivan Principles, that govern the Company in the areas of worker and human rights; health, safety, and environment; bribery and corruption; employee and consumer privacy; and our relationship with suppliers. These policies and procedures are grounded in our P&G Statement of Purpose, Values and Principles, and are implemented and enforced through internal control systems. Today, more than 130 companies are supporters of the Global Sullivan Principles.

BACK TO TOP

1. What is P&G's commitment to the environment?
P&G has a long-standing commitment to improve the environmental quality of our products, packaging and operations around the world. To carry out this commitment, it is P&G's policy to:

• Ensure our products, packaging and operations are safe for our employees, consumers and the environment.
• Reduce, or prevent, the environmental impact of our products and packaging in their design, manufacture, distribution, use and disposal whenever possible.
• Meet or exceed the requirements of all environmental laws and regulations.
• Continually assess our environmental technology and programs, and monitor progress toward environmental goals.
• Provide our consumers, customers, employees, communities, public interest groups and others with relevant and appropriate factual information about the environmental quality of P&G products, packaging and operations.
• Ensure every employee understands and is responsible and accountable for incorporating environmental considerations in daily business activities.
• Have operating policies, programs and resources in place to implement our environmental quality policy.

2. What is P&G doing to combat climate change?
P&G is concerned about the potentially negative consequences of climate change, and believes that the growing scientific evidence substantiating links of greenhouse gases to global climate change, warrants prudent and cost-effective action. We support efforts to deal with the issue under the U.N. Framework Convention on Climate Change (UNFCCC) and encourage all nations involved to search for consensus under the UNFCCC. Relative to other businesses, P&G is not an energy-intensive company. However, we accept responsibility to understand the potential contributions of greenhouse gases from our business and to take prudent and cost-effective actions. The Company will continue its implementation of energy conservation and efficiency.

3. What is P&G's position on Ecolabels?
Based on P&G's experiences over the past 20 years, we believe that eco-seal programs have numerous problems, and that they neither encourage environmental progress nor empower consumers. P&G believes that sharing of factual information with consumers, based on their needs, can more effectively encourage environmental progress. "Truth in advertising" laws are needed to ensure that manufacturers are held accountable for the truthfulness and accuracy of such information. Thus, P&G supports the U.S. Federal Trade Commission's Environmental Marketing Guides and similar programs abroad that regulate environmental claims, as well as the recent ISO 14000 standards on ecolabeling.

4. Why does P&G not provide verified, site-specific data, as in the Environmental Management Assurance System (EMAS)?
P&G publishes emission data aggregated by region in its annual Sustainability Report. Site reports are provided to interested parties, or, as in the case of Europe, where it is necessary to meet the intent of EMAS. The sites report emission and energy data into a global company database as part of the company EMS. Internal reviews ensure the robustness of data reported by the sites. P&G's Environmental Management System (EMS) has been subject to an independent external review. The reviewer (ERM) has verified that P&G's system meets the intent of both ISO 14001 and EMAS standards. At this time, however, P&G believes that going beyond this to formal certification of the management system, including verification of site statements, does not add value to the existing system.

5. Does P&G have special environmental selection requirements for contractors?
P&G's EMS includes standards specifying the procedures to be followed for the selection and training of contractors working on our sites. We conduct annual audits for compliance against standards. We also appraise the environmental performance of each contractor and take into account the results when renewing the contract.

6. Does P&G do environmental audits of its suppliers?
P&G's success depends on building productive relationships with our customers and suppliers based on integrity, ethical behavior, and mutual trust. We expect suppliers to operate safely for their employees and the environment. Suppliers are expected to comply with the law and P&G would not continue dealing with a supplier that operated persistently out of compliance. Suppliers are required to produce according to agreed specifications with robust quality assurance systems (which are audited), to design resource-efficient processes, and to be aware of their stakeholders' concerns. These expectations are discussed in supplier meetings and on some occasions, P&G has conducted site visits for reassurance that suppliers are meeting expectations.

7. Why does P&G not report water usage at your factories?
Water usage is recorded at each of the sites and the annual aggregated amount in cubic meters is reported, broken down by Global Business Unit, in the Sustainability Report. The full report also includes an eco efficiency index for water usage. For more information about water usage, see the latest copy of our Sustainability Report, available at: http://www.pg.com/sr.

8. What is P&G doing to conserve natural resources?
One of the key ways resources can be conserved is to design high-performance and high-value products that use the least amount of materials possible — getting "more from less." Ultra-diapers and feminine protection products, concentrated laundry detergents and fabric softeners, high-performance/low-fiber paper towels and tissues are a few examples. P&G also works with our suppliers to ensure that natural resources like forests are responsibly managed to sustain them for future generations and to meet a wide range of societal needs, including wood products, biological diversity, recreation and natural beauty.

9. What is P&G's position regarding forestry practices?
The world's global forest resources must be responsibly managed to sustain them for future generations and to meet a wide range of societal needs, including wood products, biological diversity, recreation and natural beauty. Wood pulp derived from these forests should be produced by processes which minimize environmental impact.

• Ensures that pulp from suppliers comes from plantation-grown trees or sustainably managed forests. P&G does not own or manage any forests.
• does not purchase pulp derived from tropical rain forests or old-growth forests, unless they are being actively managed for sustainable yield and preservation or biodiversity.
• Requires that the forestry practices of suppliers meet or exceed local and regional laws. P&G requires suppliers to be engaged in local sustainable forest-management programs.
• Requires that the pulp we purchase is produced using Elemental Chlorine Free (ECF) or Totally Chlorine Free (TCF) purification processes. P&G does not use materials purified with chlorine gas.
• Requires that supplier pulp mills meet or exceed all legal requirements for their air and water emissions. P&G seeks suppliers that manage waste and by-products appropriately, and that minimize the potential environmental impacts of their operations.
• Ensures that suppliers meet the above requirements through mill visits and comprehensive written surveys.

10. Do P&G aerosol products contain chlorofluorocarbons (CFCs)?
None of P&G's products contain CFCs. P&G primarily uses hydrocarbons, hydrofluorocarbons, dimethylether and carbon dioxide propellants in our aerosol products.

11. Do P&G products contain volatile organic compounds (VOCs)?
Yes, some P&G products contain VOCs. The VOCs are used as propellants or to help dissolve ingredients. All P&G products comply with regulations that set limits on the level of VOCs that can be found in consumer products.

BACK TO TOP