P&G defines sustainability broadly as ensuring a better quality of life for all now and in the future through both environmental and social responsibility. Sustainability is integrated into P&G's business strategy and operations, and they have a long history of sustainability initiatives. P&G is launching two new supplier sustainability programs - a third-party social sustainability audit program and an environmental sustainability scorecard to measure suppliers' performance in key sustainability areas.

1. Sustainability Scorecard Training Module 1 Sustainability Overview Audience: P&G SRO & Supplier

2. P&G Defines Sustainability Broadly… Social Responsibility Environment al Responsibility Sustainability … better quality of life for everyone, now and for generations to come At P&G, we define sustainability broadly. It is about ensuring a better quality of life for everyone now and for generations to come. For us that broad definition encompasses both environmental and social responsibility. It’s not just about “green” products tied to a current consumer movement, but a systemic approach covering our total supply chain, from raw materials to manufacturing processes to the Consumer. We believe this more substantive approach is best. Sustainability is at the heart of P&G’s purpose and is explicit in our commitment to touch and improve lives now and for generations to come. And, importantly, sustainability efforts must be tied to the bottom line.

6. Leadership Commitment “ Sustainability is at the heart of P&G’s business model. We design our strategies and plans to ensure that the work we do makes a meaningful difference by bringing the power and scale of our brands to solve real problems facing the world.” Bob McDonald Chief Executive Officer

7. 2012 Strategies Strategy 1: Products Strategy 2: Operations Strategy 3: Social Responsibility Strategy 4: Employees Strategy 5: Stakeholders In 2007, P&G established five strategies for sustainability and set goals to be achieved by 2012. Please refer to www.pg.com/sustainability for more information on each strategy. Delight the consumer with sustainable innovations that improve the environmental profile of our products. Improve the environmental profile of P&G’s own operations. Improve children’s lives through P&G’s social responsibility programs. Engage and equip all P&Gers to build Sustainability thinking and practices into their everyday work. Shape the future by working transparently with our stakeholders to enable continued freedom to innovate in a responsible way.

8. Why does Supplier Sustainability Matter? P&G’s network of partners and suppliers is critical to our long-term success and in our purpose-inspired growth strategy to touch and improve more consumers’ lives, in more parts of the world, more completely. Consumers around the world rely on P&G brands for their superior performance and value. For that reason, we want agencies, suppliers and other business partners to participate with us in open innovation, and to help us improve competitive advantage and maintain standards of excellence for both companies. At P&G, successful partnerships require a respect for the environment and sustainability, and we seek those values in our agencies, suppliers and other business partners. In the area of social sustainability, we expect suppliers to comply with our Sustainability Guidelines for Supplier Relations (see http://www.pgsupplier.com/sustainability-guidelines for more details). High-risk suppliers (defined by country of operation or potential hazard) are audited periodically to ensure compliance. On the environmental front, we collaborate closely with suppliers across the entire supply chain. Suppliers are P&G’s key source of materials, packaging, systems, services and ideas for sustainable innovation products. We view suppliers as critical partners in improving the environmental sustainability of our end-to-end supply chain. We also learn from each other’s best practices as we navigate the emerging field of environmental sustainability together.