Description
The analyses the sustainability report of Procter and Gamble.
ANALYSIS OF SUSTAINABILITY REPORT OF PROCTER & GAMBLE
Presented by Group 8 Vishal Gupta(E016) Mayur Mehrotra(E035) Nikita Singla (E055) Himkar Thakur (E057)
ABOUT P&G
•Fortune 500 American MNC •Wide range of Consumer goods •Founded in 1837; headquartered at Ohio •Revenue : US$ 78.938 billion (FY 2010) •Employees : 127,000 •5th in Fortune?s Most Admired Companies 2011 •U.S. Global Leadership Coalition •1993, Procter & Gamble Home Products (India) made 100% subsidiary of P & G, USA
What Sustainability means to the company?
Sustainability : Responsibility and Opportunity to make lives better Purpose Values Principles 5 Strategies : ? Products ? Operations ? Social Responsibility ? Employees ? Stakeholders
SUSTAINABILITY -PRODUCTS
•Product Safety & Regulatory Affairs (PS&RA)products and packages are safe for consumers, safe for the environment •Key Features- Product Design, Packaging and Raw Materials •Product Design-Life Cycle Assessment •Helps in reduction of raw material used, maintains product quality and ensures safe disposal of at the end of the life cycle •Innovation in design leading to reduction in energy demand- example Tide Cold Water
SUSTAINABILITY-PACKAGING
• Polyvinyl Chloride (PVC) has been a widely used packaging material • PVC is non bio degradable and is considered hazardous for environmental and human health
• Use of alternative material feed stocks, such as renewable and sustainable sugarcane-derived plastic,
• Reduction in use of PVC to less than 1.5% in plastic packing
SUSTAINABILITY- OPERATIONS
P&G holistic approach to Operations ? Facility Construction, Manufacturing, Logistics and Supplier Engagement ? P&G?s 77-Point Plan for Eco-smart design- waste, water, energy, optimize, conserve. ? Use of renewable sources of energy? Solar- Germany, Italy and US ? Wind- Netherlands ? Biomass- US
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SUSTAINABILITY- OPERATIONS
“Control Tower”- logistics optimization program ? Reduction in in-efficiencies ? Delivering maximum truck fill for every kilometer ? P&G?s Supplier Environmental Sustainability Scorecard ? Helps P&G to improve supply chain collaboration around environmental issues ? Measures energy use, water use, waste disposal, GHG emission on year-on year basis
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SUSTAINABILITY- EMPLOYEES
Privacy Policy- protect the data of an employee ?Harassment- Zero level tolerance of harassment of anyone by anyone ?Wages- competitive wages, as bench marked against other leading companies ?Employee benefits- to protect the financial security of the employee ?Diversity & Inclusion-Everyone Valued, Everyone Included,Everyone Performing at Their Peak
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Animal Research - investing more than $270 million and developing or adapting more than 50 alternative methods. Sustainable Forest Management – Wood Pulp Procurement Policy 2010 United Nations General Assembly resolution which recognizes the right to safe and clean drinking water and sanitation as a human right. The total air emissions decreased from last year to 15 thousand metric tons.
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Haiti Earthquake ? 6 million PUR + $1.2 million with cash more than $2 million ? donated product from brands like Pampers, Duracell, Oral B and Pantene Chile Earthquake ? 225,000 packets of PUR + $700,000 U.S. Dollars ? Provided 2 billion liters of safe drinking water ? Employees played with local people
? Tide Loads of Hope - American Red Cross
Hope School ? Partnered with China Youth Development Foundation to complete 200 Hope Schools. Organised Music, Sports and Stars Campaign Safeguarding Children’s Health Through Hand Washing ? hand washing education in the last six years, with a goal of reaching 15 million by 2015. Children's Safe Drinking Water Program ? For every product sold, 10 litres of clean drinking water will be donated to help save lives. Pampers and UNICEF ? to help eliminate maternal & neonatal tetanus (MNT) 1 Pack = 1 Vaccine 100 million women and their babies from MNT
Shiksha Program ? Padega India, Badhega India ? 20 „Shiksha schools? with plans to build another 20 schools in 2012. Project Drishti ? Tied up with National Association for the Blind ? Restored eyesight to 250 blind girls through corneal transplant operations ? Expected Sales – 50 lakhs ? 1 Whisper = Rs. 1
P&G?s Corporate Governance is characterized by ? Strong internal control environment ? Independence of the Board of Directors ? High quality financial reporting ? Personal accountability for compliance to the Code of Conduct ? Fair Executive Compensation system ? Strong and effective corporate governance from the Board of Directors ? Engagement of the Disclosure Committee ? Rigorous oversight of the business by P&G?s Global Leadership Council.
PERFORMANCE INDICATORS
•Member of the FTSE4Good and Dow Jones Sustainability (DJSI) Indexes •FTSE4Good – Measures the performance of companies that meet globally recognised corporate responsibility standards •Dow Jones Sustainability Indexes - Provide reliable and objective benchmarks to manage sustainability portfolios •Sustainability scorecard - To measure the environmental performance of the key suppliers •P&G also follows GRI guidelines to measure its sustainability performance
FUTURE GOALS
•10 year sustainability goals: •Develop and market at least $50 billion in cumulative sales of sustainable innovation products •Enable 300 million children to Live, Learn and Thrive •Prevent 160 million days of disease and save 20,000 lives by delivering 4 billion litres of clean water •Replace Petroleum-Based Materials with Sustainably Sourced Renewable Materials by 25% •Reduce the Packaging by 20% per customer use
MEDIA REPORTS
•Diaper Rash Burns Procter & Gamble •Tax evasion through unethical practices •Issues with distributors and retailers on low price strategy •Price fixing cartel in Europe along with Unilever •Attempted to preserve its market share by denigrating Boniva •Does not permit paid holiday for weddings or funerals
CONCLUSION
•Included sustainability in all aspects of the company •Brought various innovations for sustainability •All CSR policies are efficient marketing strategies •Successfully achieved goals in the past and also made strategies for the future •Difference between media reports and claims made in the report •Shows positive commitment towards sustainability with strategies and results
doc_733191745.ppt
The analyses the sustainability report of Procter and Gamble.
ANALYSIS OF SUSTAINABILITY REPORT OF PROCTER & GAMBLE
Presented by Group 8 Vishal Gupta(E016) Mayur Mehrotra(E035) Nikita Singla (E055) Himkar Thakur (E057)
ABOUT P&G
•Fortune 500 American MNC •Wide range of Consumer goods •Founded in 1837; headquartered at Ohio •Revenue : US$ 78.938 billion (FY 2010) •Employees : 127,000 •5th in Fortune?s Most Admired Companies 2011 •U.S. Global Leadership Coalition •1993, Procter & Gamble Home Products (India) made 100% subsidiary of P & G, USA
What Sustainability means to the company?
Sustainability : Responsibility and Opportunity to make lives better Purpose Values Principles 5 Strategies : ? Products ? Operations ? Social Responsibility ? Employees ? Stakeholders
SUSTAINABILITY -PRODUCTS
•Product Safety & Regulatory Affairs (PS&RA)products and packages are safe for consumers, safe for the environment •Key Features- Product Design, Packaging and Raw Materials •Product Design-Life Cycle Assessment •Helps in reduction of raw material used, maintains product quality and ensures safe disposal of at the end of the life cycle •Innovation in design leading to reduction in energy demand- example Tide Cold Water
SUSTAINABILITY-PACKAGING
• Polyvinyl Chloride (PVC) has been a widely used packaging material • PVC is non bio degradable and is considered hazardous for environmental and human health
• Use of alternative material feed stocks, such as renewable and sustainable sugarcane-derived plastic,
• Reduction in use of PVC to less than 1.5% in plastic packing
SUSTAINABILITY- OPERATIONS
P&G holistic approach to Operations ? Facility Construction, Manufacturing, Logistics and Supplier Engagement ? P&G?s 77-Point Plan for Eco-smart design- waste, water, energy, optimize, conserve. ? Use of renewable sources of energy? Solar- Germany, Italy and US ? Wind- Netherlands ? Biomass- US
?
SUSTAINABILITY- OPERATIONS
“Control Tower”- logistics optimization program ? Reduction in in-efficiencies ? Delivering maximum truck fill for every kilometer ? P&G?s Supplier Environmental Sustainability Scorecard ? Helps P&G to improve supply chain collaboration around environmental issues ? Measures energy use, water use, waste disposal, GHG emission on year-on year basis
?
SUSTAINABILITY- EMPLOYEES
Privacy Policy- protect the data of an employee ?Harassment- Zero level tolerance of harassment of anyone by anyone ?Wages- competitive wages, as bench marked against other leading companies ?Employee benefits- to protect the financial security of the employee ?Diversity & Inclusion-Everyone Valued, Everyone Included,Everyone Performing at Their Peak
?
?
?
?
?
Animal Research - investing more than $270 million and developing or adapting more than 50 alternative methods. Sustainable Forest Management – Wood Pulp Procurement Policy 2010 United Nations General Assembly resolution which recognizes the right to safe and clean drinking water and sanitation as a human right. The total air emissions decreased from last year to 15 thousand metric tons.
?
?
Haiti Earthquake ? 6 million PUR + $1.2 million with cash more than $2 million ? donated product from brands like Pampers, Duracell, Oral B and Pantene Chile Earthquake ? 225,000 packets of PUR + $700,000 U.S. Dollars ? Provided 2 billion liters of safe drinking water ? Employees played with local people
? Tide Loads of Hope - American Red Cross
Hope School ? Partnered with China Youth Development Foundation to complete 200 Hope Schools. Organised Music, Sports and Stars Campaign Safeguarding Children’s Health Through Hand Washing ? hand washing education in the last six years, with a goal of reaching 15 million by 2015. Children's Safe Drinking Water Program ? For every product sold, 10 litres of clean drinking water will be donated to help save lives. Pampers and UNICEF ? to help eliminate maternal & neonatal tetanus (MNT) 1 Pack = 1 Vaccine 100 million women and their babies from MNT
Shiksha Program ? Padega India, Badhega India ? 20 „Shiksha schools? with plans to build another 20 schools in 2012. Project Drishti ? Tied up with National Association for the Blind ? Restored eyesight to 250 blind girls through corneal transplant operations ? Expected Sales – 50 lakhs ? 1 Whisper = Rs. 1
P&G?s Corporate Governance is characterized by ? Strong internal control environment ? Independence of the Board of Directors ? High quality financial reporting ? Personal accountability for compliance to the Code of Conduct ? Fair Executive Compensation system ? Strong and effective corporate governance from the Board of Directors ? Engagement of the Disclosure Committee ? Rigorous oversight of the business by P&G?s Global Leadership Council.
PERFORMANCE INDICATORS
•Member of the FTSE4Good and Dow Jones Sustainability (DJSI) Indexes •FTSE4Good – Measures the performance of companies that meet globally recognised corporate responsibility standards •Dow Jones Sustainability Indexes - Provide reliable and objective benchmarks to manage sustainability portfolios •Sustainability scorecard - To measure the environmental performance of the key suppliers •P&G also follows GRI guidelines to measure its sustainability performance
FUTURE GOALS
•10 year sustainability goals: •Develop and market at least $50 billion in cumulative sales of sustainable innovation products •Enable 300 million children to Live, Learn and Thrive •Prevent 160 million days of disease and save 20,000 lives by delivering 4 billion litres of clean water •Replace Petroleum-Based Materials with Sustainably Sourced Renewable Materials by 25% •Reduce the Packaging by 20% per customer use
MEDIA REPORTS
•Diaper Rash Burns Procter & Gamble •Tax evasion through unethical practices •Issues with distributors and retailers on low price strategy •Price fixing cartel in Europe along with Unilever •Attempted to preserve its market share by denigrating Boniva •Does not permit paid holiday for weddings or funerals
CONCLUSION
•Included sustainability in all aspects of the company •Brought various innovations for sustainability •All CSR policies are efficient marketing strategies •Successfully achieved goals in the past and also made strategies for the future •Difference between media reports and claims made in the report •Shows positive commitment towards sustainability with strategies and results
doc_733191745.ppt