2020 Citizenship Report

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MESSAGE FROM THE CEO

Dear Stakeholders,

Last fiscal year, we stepped up our efforts to be a force for good and a force for growth by doing our part to help people and communities overcome the challenges of the COVID-19 pandemic, address longstanding issues of inequality and tackle climate change. We activated every element of our Citizenship platform — Community Impact, Equality & Inclusion and Environmental Sustainability, with a foundation of Ethics & Corporate Responsibility guiding everything we do.

As healthcare workers and first responders fought the pandemic, P&G people worked tirelessly to supply people and their families with much needed health, hygiene and cleaning products.

Our ability to continue to supply consumers during this extraordinary time was dependent on the trust in our Company that we had built with governments and other stakeholders. Our track record as a responsible company that works to do the right thing enabled us to quickly and credibly work with governments around the world to ensure we could continue to operate, with important safety protocols in place, to maximize the availability of our products for people who count on our brands and the benefits they provide.

At the same time, we ramped up our Community Impact efforts on a global scale like never before, expanding our existing disaster relief operations to donate tens of millions of dollars worth of products, cash and in-kind support, including personal protective equipment, to families and communities in need through more than 200 relief organizations worldwide.

Crises like COVID-19 often reveal the inequalities in our society, and this crisis showed just how much more there is to be done to create an equal world. We accelerated our efforts in Equality & Inclusion with deliberate, sustained action, inside and outside of P&G.

We started internally by reviewing our policies and practices to make sure they are not only inclusive but deliberately advance and enable equality and inclusion. For example, flexibility at work, intentional career planning and paid parental leave are proven accelerators of equality, and even during the pandemic we remained focused on each of these. We also made progress on our aspiration to reach 50/50 women and men at every level of our Company, including P&G’s Board of Directors. We’re now sharing our representation data and progress transparently on our website at pg.com/equalityandinclusion.

Externally, over the past few years, we’ve taken a stand and used our voice on important issues, ranging from pay equality to equal representation to racial inequality, through films and campaigns such as “The Look,” “The Talk,” “The Words Matter,” and “We See Equal,” among others. In recent months, we continued this work with films and campaigns like “Choose Equal,” “The Pause,” “The Choice,” “Talk About Bias” and more.

To specifically address the systemic racism and inequality that have been institutionalized in our society, especially against Black Americans, we established the P&G Take On Race fund to help fuel organizations that fight for justice, advance economic opportunity, enable greater access to education and health care and make our communities more equitable.

We are committed to be part of the solution in the fight against inequality.

At the same time, we remain steadfast in our environmental sustainability commitments because the next decade represents a critical window to address climate change. This summer we announced our plan to be carbon neutral for the decade by 2030. We’ll do this by increasing energy efficiency, purchasing 100% renewable electricity globally and advancing a series of natural climate solutions. Importantly, while climate change impacts everyone, all too often the people and communities most impacted are those who are most vulnerable. By accelerating our progress and investing in natural climate solutions, we can help protect ecosystems and communities around the world.

We’ve also accelerated our commitments to protect forests. Responsible sourcing is essential for not just our business, but more importantly, for the environment and people who depend on it. Our shareholders have asked us to issue a report assessing how we can further increase the scale, pace and rigor of our efforts on responsible forestry. We are engaging with and learning from shareholders and stakeholders who supported this resolution, and we will provide that report in mid-2021. We also publish detailed information about our forestry practices in the Environmental Sustainability section of this report.

The past year is proof that Citizenship cannot be something done on the side; it has to be built into how we do business every day. Not only does it build trust and equity with consumers and the broader set of stakeholders we serve, when done with the right intentions and with meaningful actions, it drives growth and value creation, which allows us to be a force for good and a force for growth in our world that needs us all to work together.

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DAVID S. TAYLOR

Chairman of the Board,
President and Chief Executive Officer