Sustainable P&G

Transcription

1 Sustainable P&G Prof. Dr. Marina Franke Manager Global Sustainability Procter & Gamble Service GmbH Franke.m@pg.com OECD Conference Sustainable Manufacturing and Competitiveness DK Copenhagen June 21-22,

2 Sustainable Development at P&G 2 Sustainability Definition: Ensuring improved quality of life now and for generations to come Consistent with P&G Statement of Purpose to improve the lives of the world s consumers. The synergy between economic development, social equity, and the environment. Sustainability is important to P&G to leverage the power of innovation. Economic Social Environmental Environmental

3 3 Leadership Support The men and women of P&G share a deeply felt purpose : to improve the lives of consumers in every part of the world. One important way in which we fulfil this purpose is through sustainable development, or sustainability, which we believe is integral to both P&G s future business success and to a truly better quality of life for all the worlds consumers now and for generations to come. Chairman of the Board, President, and Chief Executive

4 Sustainability Focus 4 Environmental pollution and resource management Labor Practices (e.g. Child Labor & Wages) Supply Chain Expectations Stakeholder Interface (e.g. NGO s) Transparency in Reporting Human Rights & Bribery Only About Reducing Negatives?

5 5 Define Sustainability Broadly Value Added 0 Non -Value + Opportunity Time Responsibility 0 + Reputation

6 P&G Sustainability Matrix Social/Economic Environmental 6 Sustainable Innovation Doing the right thing Responsibility Opportunity

7 P&G Sustainability Matrix Social/Economic Environmental Opportunity Responsibility Environmental Quality policy & management system Product Safety Policy Product Safety assessment tools (Risk Assessment, LCA, PSAT, etc) Science-in-the-Box, P&G Perspectives, Science of Beauty Sustainable Forestry

8 Ongoing Environmental Responsibility 8 P&G pioneered Environmental Reporting 1970 s Global Environmental Reports since 1993 P&G Global Environmental Management System

9 Product P&G employees globally in Product Safety & Regulatory Affairs and Health, Safety & Environment departments assess safety of P&G ingredients, finished products, manufacturing operations throughout their life-cycle. for workers in laboratories and plants for communities around plants for consumers for professional users for environment around plants and after product use

10 Science in the Box 10

11 Transparency

12 Sustainable Forestry Certification P&G requires certification of supplier forestry operations Use multiple schemes due to diverse pulp supply Programme for the Endorsement of Forestry Certification CSA International Forest Stewardship Council (FSC) Sustainable Forestry Initiative (SFI)

13 P&G Sustainability Matrix Social/Economic Environmental Opportunity Eco-efficiency cost savings Responsibility Environmental Quality policy & management system Product Safety Policy Product Safety assessment tools (Risk Assessment, LCA, PSAT, etc) Science-in-the-Box, P&G Perspectives, Science of Beauty Sustainable Forestry

14 Eco-efficiency

15 P&G Sustainability Matrix Social/Economic Environmental Opportunity Eco-efficiency cost savings Responsibility PVP Values and Policies Worldwide Business Conduct Manual Supplier sustainability guidelines & compliance Live Learn and Thrive, Community programs Disaster Relief & Preparedness Environmental Quality policy & management system Product Safety Policy Product Safety assessment tools (Risk Assessment, LCA, PSAT, etc) Science-in-the-Box, P&G Perspectives, Science of Beauty Sustainable Forestry

16 Corporate Social Responsibility Global Supply Chain Management 16 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

17 Corporate Social Responsibility Our Employees 17 Pension program P&G stock ownership Employee training programs Flexible work hours Mentoring programs Health programs & standards Wellbeing Fitness Center

18 18 P&G s Global Corporate Cause - philantrophy program Development of Children in Need (ages 0-13) Live Keep children healthy - prevent disease Learn Thrive Places, tools and/or programs that enhance the ability to learn Access to programs that help develop self-esteem and skills for life

19 10 year anniversary of Project Hope in China

20 P&G Sustainability Matrix Social/Economic Environmental Opportunity Products for lower income consumers Older population products PUR Program Child Development Eco-efficiency cost savings Responsibility Values and Policies Worldwide Business Conduct Manual Worker Health & Safety PVP Supplier sustainability guidelines & compliance Environmental Quality policy & management system Product Safety Policy Product Safety assessment tools (Risk Assessment, LCA, PSAT, etc) Science-in-the-Box, P&G Perspectives, Science of Beauty Live Learn and Thrive, Community programs Disaster Relief & Preparedness Sustainable Forestry

21 PUR in home water purification Reverse engineered water treatment - in a sachet Developed by P&G R&D in cooperation with the US CDC Removes bacteria, viruses, cysts, heavy metals, etc Low cost ($ 0.1 per sachet = 10 l safe water)

22 The need for Clean Water 22 More than 1 billion people lack access to safe drinking water. More than 4,000 children die every day from diseases caused by drinking unsafe water.

23 PUR purifying process

24 PUR Purifier of Water countries: Pakistan, Morocco, Kenya, Haiti, Romania etc. Cooperation with UNICEF,USAID, Internat`l Red Cross, PSI etc.

25 Reducing Water Consumption Downy one Rinse 25 An innovative product in Latin America that is saving water in households that rinse laundry manually. Reduces water needed to wash laundry by 2/3 Women / girls gain time for family, school or business

26 Safeguard Hand Wash Education Program

27 Safeguard Hand Wash Education Program First grade students in 35,000 schools In collaboration with CDC, WHO China- 24 million grade since 1999 Pakistan million kids since 2003 Philippines- Just underway Tools to drive memorability of hygiene education Results of joint study with CDC - Episodes of absence reduced 40% - Days of absence reduced 54% China Philippines Pakistan

28 P&G Sustainability Matrix Social/Economic Environmental Opportunity Products for lower income consumers PUR Program Child Development Sustainable Innovation Opportunity Older population products Eco-efficiency cost savings Responsibility Values and Policies Worldwide Business Conduct Manual Worker Health & Safety PVP Supplier sustainability guidelines & compliance Environmental Quality policy & management system Product Safety Policy Product Safety assessment tools (Risk Assessment, LCA, PSAT, etc) Science-in-the-Box, P&G Perspectives, Science of Beauty Live Learn and Thrive, Community programs Disaster Relief & Preparedness Sustainable Forestry

29 P&G Sustainability Matrix Social/Economic Environmental Opportunity Products for lower income consumers Older population products PUR Program Child Development New Opportunity Retailer Sustainability Commercial Products Ariel Cool clean Tide HE Eco-efficiency cost savings Responsibility Values and Policies Worldwide Business Conduct Manual Worker Health & Safety PVP Supplier sustainability guidelines & compliance Live Learn and Thrive, Community programs Disaster Relief & Preparedness Environmental Quality policy & management system Product Safety Policy Product Safety assessment tools (Risk Assessment, LCA, PSAT, etc) Science-in-the-Box, P&G Perspectives, Science of Beauty Sustainable Forestry

30 Ariel Cool Wash 30

31 Ariel Cool Wash Peer Reviewed Online presence Up to 40% less energy

32 32 Laundry Sustainability Drivers Less Materials Compaction Better Packaging Consumer Behaviour Correct Dosing Consumer Education Less Resources Low Temp Washing Water Conservation

33 Millstone Coffee Fair Trade Rainforest Alliance Certified - TransFair USA 33 introduces social and environmental standards education of farmers, schools for children cooperation of small farmers, better investments 10 years alliance with TechnoServe (NGO)

34 P&G Sustainability Matrix Opportunity Responsibility Products for lower income consumers Social/Economic Older population products Values and Policies Worldwide Business Conduct Manual Worker Health & Safety PVP PUR Program Child Development Supplier sustainability guidelines & compliance Live Learn and Thrive, Community programs Disaster Relief & Preparedness Environmental New Opportunity Retailer Sustainability Sustainable Innovation Commercial Products Doing the right thing 34 Ariel Cool clean Tide HE Eco-efficiency cost savings Environmental Quality policy & management system Product Safety Policy Product Safety assessment tools (Risk Assessment, LCA, PSAT, etc) Science-in-the-Box, P&G Perspectives, Science of Beauty Sustainable Forestry

35 In Touch - Transparency Reporting Responsibility 35 Annual Sustainability Reports since 1999:

36 Reporting Responsibility External Recognition 36 Winner in Dow Jones Sustainability Index For the 7th straight year, P&G named #1 in DJSI for Consumer Goods Company Group (2,000 largest Dow Jones Companies) Have been on the FTSE4Good ever since the index was devised Fortune Magazine ranked P&G as the #1 among household and personal product companies (02/06)

37 DJSI - Recognition for our Sustainable Management Principles and Systems 37 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)

38 In Conclusion 38 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 Sustainable Development Linking Opportunity with Responsibility Sustainability is an opportunity for business