Investing in Sustainability Stephen W. Sikra, Corporate R&D, USA The Procter & Gamble Company

1. Investing in Sustainability Stephen W. Sikra, Corporate R&D, USA The Procter & Gamble Company

2. Today’s Program: • The Procter & Gamble Company • P&G’s Strategic Commitment to Sustainable Development • Our Stewardship Approach • The Closed Loop Fund

3. 177 Years in Business 177 Years Of Innovation

6. Why do we invest in sustainability? ….superior products and value…improve lives ..now and for generations to come ….consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper. Sustainability is at the heart of P&G’s purpose

9. P&G’s Long-Term Environmental Vision Reduce our environmental footprint. Enable consumers to be more sustainable. Using 100% renewable materials or recyclate for all our productsand packaging Designing products that delight consumers while maximizing the conservation of resources Powering our plants with 100% renewable energy Having zero consumeror manufacturing waste go to landfills

10. P&G Expanded Packaging Goals for 2020 • P&G has expanded our commitments on packaging sustainability. • In addition to: • A reduction in packaging by 20% per unit of production by 2020. • *NEW* We will double the use of recycled resin in plastic packaging, and • *NEW* Work to ensure 90% of packaging is either recyclable or that programs are in place to develop recycling.

11. 2020 Goal – Manufacturing Waste < 0.5% Input • The Issue – P&G was sending nearly 1.5% of input materials to landfills every year. • One Solution – Form partnerships with companies that find value in what we were throwing away. Blending toothpaste waste into a polish for jewelry. Blending beauty care waste into leather care products. Using detergent waste to wash cars. Our program to avoid manufacturing waste has created $1 billion in value in 5 years.

12. How will we deliver our vision? • Investing with a stewardship approach to sustainable innovation • using our Time, Talent, and Treasure • - to reduce our environmental footprint • - to enable consumers to be more sustainable • - to reach our goals.

13. Investment of Time Internally: Sustainability is part of each employee’s work plan. Externally: We commit our time to partner with industry experts. Duration: We are in it for the long haul; 25 yrs of PCR in NA We listen, we learn, we partner. Expanding Rigid Recycling DFR Guidelines Advancing non-clear PET markets Public-private partnership learning experience

14. Investment of Time

15. Investment of Talent • Holistic, LCA-based approach. • The ‘R’ strategies: Reduce, Re-use, Recycle, Renewable • How many R’s are there? • Form Partnerships for Sustainable Innovation

17. 2020 Goal – 70% of Laundry Loads in Cold Water • The Issue – Changing consumer behavior from doing laundry in hot/warm water to cold water. • One Solution – Try to stop the habit of washing clothes in hot/warm water from developing. Small Steps, Big Wins Campus Challenge Proves it's not impossible for one person to make big change.

20. Advancing the Science of Sustainability • The Issue – We don’t have all the answers. • One Solution – Form partnerships with those that can continue basic research. January 31, 2012 – P&G signs a five year Cooperative Research and Development Agreement (CRADA) with the US EPA National Risk Management Research Laboratory. June 4, 2013 - P&G and the Chinese Research Academy of Environmental Sciences (CRAES) sign a strategic collaboration agreement.

21. 2020 Goal – 25% Renewable Materials • The Issue – Plastic derived from renewable materials can cost more than that derived from fossil fuels. • One Solution – Partner with non-competitive companies to advance research and create scale. • Five U.S. Brands Collaborating on Plant-Based PET • Plastics Today – June 5, 2012 • Coca-Cola, Ford, Heinz, Nike and P&G have joined forces to accelerate the development and use of 100% plant-based PET materials in their products…

22. Investment of Treasure • Funding studies • Investing in Package designs, multi-layer for HDPE bottles • Building End markets, demand for PCR • Expanding Infrastructure, Loans External Organizations Fees Grants Studies Pilots Package Designs Multi-layer HDPE Bottles DFR guidelines Demand End markets for PCR Long-term contracts 25 yrs of HDPE PCR Non-clear PET, HDG scoops Looking for more quality rPP Infrastructure Expansion $10 Million P&G Commitment to Closed Loop Fund

23. Expanding the Recycling Infrastructure • The Issue – Municipal Infrastructures need expanded • One Solution – Closed Loop Fund, low interest loans via social impact fund, $ available Jan 2015 • - Aiming for $100MM loan fund • Broad participation from industry leaders • - The fund's founding investors include Walmart, Procter & Gamble, Coca-Cola, Pepsico, Unilever, Johnson & Johnson, Keurig Green Mountain Coffee. 

24. Time, Talent, and Treasure to meet 2020 goals Time: Commitment of resources Talent: Internal & External innovations/partnerships Treasure: Funds for recycling infrastructure Package Sustainability Goals 20% less packaging Double our tonnage of PCR in plastic packaging 90% of packaging is either recyclable or we are working programs to recycle it, $10 Million from P&G for Closed Loop Fund www.closedloopfund.com

35. Thank You! Stephen Sikra Email sikra.sw@pg.com

36. 1. Zero & Low interest loans for infrastructure (Closed Loop Fund). 2. Grants to support innovation, outreach and pilot programs. 3. Private Equity investment in infrastructure and innovation. 4. Traditional bank lending for infrastructure and innovation. 5. Venture Capital investment in innovation. 6. Public policy that supports municipal recycling programs.