P&G and Responsible Forestry

Our shareholders have asked us to issue a report assessing how we can increase the scale, pace, and rigor of our efforts to eliminate deforestation and the degradation of intact forests. We look forward to sharing this information on www.pg.com. For many years, we have disclosed our forestry policies and progress in our annual P&G Citizenship Report and provided supplemental information based on consumer interest.

Responsible sourcing is essential for our business and, more importantly, for the environment and people who depend on it. We agree on the critical importance of ensuring no deforestation or forest degradation in our supply chains. It's why we've accelerated commitments to protect forests and continue to be transparent on our practices. Ahead of the report, we would like to share information about our current approach. Our sourcing ensures:

1. Maintaining Forests: We prohibit deforestation.

• Since 2015, we require that 100% of the wood pulp we source is certified by a leading 3rd party certification system (Forest Stewardship Council, Sustainable Forestry Initiative, and Programme for the Endorsement of Forest Certification) who ensure forests are responsibly managed. For every tree we use, at least one is regrown.
  
• Our palm oil sourcing policy requires suppliers to ensure no deforestation and no development on peatlands. Palm oil is the world's most widely used vegetable oil and has the advantage of being 100% natural and renewable. P&G purchases small amounts of total global palm production (less than 1%). 100% of the palm oil used in P&G brands is RSPO certified, and by 2022 we plan to have 100% of the palm kernel oil used in P&G brands RSPO certified. Also, we are using satellite imagery to monitor compliance with our palm oil policy.
  
  

2. Respecting People: We respect the rights of workers and indigenous peoples.

• These forest certification systems used by 100% of our wood pulp suppliers require respecting indigenous peoples' rights as outlined in the United Nations Declarations on the Rights of Indigenous Peoples.
  
• Through the Roundtable on Sustainable Palm Oil, we are committed to sourcing our palm and palm derivatives in a manner that respects workers and indigenous peoples' rights.

3. Protecting Habitat: We ensure wildlife are protected.
   • Our certification systems (FSCs, SFI, PEFC, and RSPO) ensure our suppliers protect, conserve, and enhance the habitats for wildlife and endangered species that call forests their home.

Forestry is an important part, but only one part of P&G's broad environmental agenda, spanning climate change, water, energy, and waste. Beyond forestry, we remain committed to a comprehensive set of sustainability activities that provide critical climate leadership, including:

• reducing greenhouse gas emissions by 50%
• purchasing 100% renewable electricity by 2030
• advancing natural climate solutions that will make our manufacturing operations climate-neutral for the decade
• ensuring 100% of packaging is recyclable or reusable

We are focused on ensuring we do the right things in the right ways – innovating using science and nature – for the long-term. We see it as our responsibility to ensure no one has to choose between the products they use today and the world they want for tomorrow.

Virginie Helias
Chief Sustainability Officer

We invite you to learn more here. Click on the following links to expand:

• Forestry reporting
• Pulp and palm policies and practices
• Pulp commitments

"Bottom line, we agree on the importance of taking steps today to preserve a strong tomorrow. We are doing just that. I want you and all P&G shareholders to know this is a topic of great importance and one that has our continued focus and commitment."

-David Taylor, P&G, Chairman of the Board, President and Chief Executive Officer

A responsibly managed forest from which P&G sources

Smallholder training on palm plantation from which P&G sources

P&G and one of our suppliers recruiting landowners to become FSC certified

Close up on recruitment meeting with landowners