Energy & Sustainability

June 19, 2008

Definition of Sustainability

Energy Conservation as part of Sustainability

Defining Sustainability

“Sustainable development is a very simple idea. It is

about ensuring a better quality of life for everyone, now and for generations

to come.”

Department of the Environment,

Transport and the Regions,

London, UK. ‘98

World Business Council for Sustainable Development, and others have similar

definitions

Synergy between:•Economic Growth•Social Responsibility•Environmental Protection Energy Conservation supports all three

Sustainability

History of Sustainability at P&GP&G pioneered environmental reporting (1970’s)

Environmental Quality Policy; EQ Reporting (1992)

One of the first companies to form a “corporate sustainability dept” and publish a sustainability report (1999)

External recognition for our work on sustainability:

• For the seventh consecutive year P&G has been ranked as sector leader in the Dow Jones Sustainability Index.

• 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

Renewed 2012 Sustainability goals:

Environmental profile of products

Environmental profile of operations

Improve lives through social responsibility

Engage employees in everyday Sustainability

Work with external stakeholders

Environmental profile of operations goal for 2012:

“Deliver an additional 10% reduction (per unit of production) in CO2 emissions, energy consumption, water consumption, and disposed waste from P&G plants, leading to a total reduction over the decade of at least 40%”

Energy Conservation examples:

-Heat recovery in plant water effluent (2002)-Energy efficient designs in new processes-Applying industry best practices (ongoing)

Energy auditsLightingMotorsVFD’sDrying optimizationCompressed air etc.

Wisconsin operations example:

-New Papermachine start up in 2007-Changed design to maximize energy efficiency-Saves over 20,000 metric tons/yr of CO2-19% more energy efficient than next most recent similar machine-Received Governor’s Award for Innovation in Pulp & Paper industry-New standard for our next Papermachine, and rebuilds

Lessons learned…..

-Excellent synergies in being energy efficient and eco-efficient

-The power of committed energy teams

-A supportive regulatory climate helps

-Challenges continue

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