Marketing Climate Change to Consumers?

Peter White

P&G Global Sustainability

P&G Climate Strategy

• Reducing the footprint of our own operations

• Helping Consumers reduce their footprint

• Sustainable Innovation

• Improving the environmental profile of our own operations.

2007 – 2012 Goal: Additional 20% reduction (per unit production) in:• CO2 emissions, • Energy• Water • Disposed waste

Reducing our own footprint

Reducing our own footprint

Amiens Distribution Centre

• Solar panels

• Wind turbine

• Natural light /energy efficient lighting

• Energy saving vehicles

Intermodal Transport in Western Europe

• Redesigning supply network• Increasing rail transport from 10% to 30% in Western Europe by 2015

Reducing our own footprint

•Progress so far

– Reductions since 2007• Energy -11%• CO2 -

10%

– Reductions since 2002• Energy -48%• CO2 -

52%

Reducing our own footprint

Company Product Energy Usage from Life Cycle Perspective

ProductType

Mat

eria

ls

Packa

ging

Transp

ort Ext

erna

l

Disposa

l Diaper

Feminine Pad

Bathroom Tissue

Paper Towel

Laundry

Liquid Dishwash

Liquid Fabric Softener

Shampoo

0.0E+00

5.0E+07

1.0E+08

1.5E+08

2.0E+08

2.5E+08

3.0E+08

3.5E+08

Energy (GJ)

Life CyclePhase Use

in th

e Hom

e

P&G Man

ufact

ure

Transp

ort In

tern

al

Diaper Bathroom Tissue Laundry Liquid Fabric Softener

Feminine Pad Paper Towel Liquid Dishwash Shampoo

Helping Consumers Reduce their Emissions

• Develop energy saving products

• Consumer education programs

• Set goal for Sustainable Innovation– $50 bill in sales of Sustainable Innovation

products by 2012

• Ariel CoolClean and Tide Coldwater

• If U.S. washed clothes in cold water– Saves 3% domestic energy consumption

– 6% US Kyoto commitment

• Ariel Turn to 30 campaign– Up to 40% energy saved per wash

Low Temperature Washing

Marked sustainability improvements

– 30-40% less energy and 50-60% less water during manufacturing

– Packaging reduced 14-45% versus previously available alternatives

– Half the number of trucks needed to transport

– Brilliant cleaning at 15C

Product Innovation – Ariel Excel Gel

Global solutions for Global problems

Getting consumers to change

Four Key Principles

IT MUST BE REAL

Four Key Principles

Life Cycle Assessment

IT MUST BE REAL

NO TRADE-OFFS

Four Key Principles

In-depth Consumer Understanding

Benefit Led Sustainability

Brilliant Cleaning at low temperature … AND Energy Savings …

EXPLAIN IT CLEARLY

IT MUST BE REAL

NO TRADE-OFFS

Four Key Principles

NOT JUST YOU SAYING IT

EXPLAIN IT CLEARLY

IT MUST BE REAL

NO TRADE-OFFS

Four Key Principles

30° and lower

40° and higher

Ariel 28% 72%

Others 13% 87%

Are people turning to 30°?

Sustainable Innovation Products

• Goal for Sustainable Innovation– Develop and market $50 bill in sales of

Sustainable Innovation products by 2012

• Progress so far:– $ Bill 13.1 from 2007 - 9

Future Friendly

• Future Friendly is a partnership initiative between P&G brands and leading sustainability experts to help educate, inspire and enable consumers to do their bit for a more sustainable future.

• Focus on energy, water and packaging reduction.

Future Friendly, Launched in 2007

Recognises individuals…

…. and Communities

3rd Future Friendly Awards – Launched November 2009

Uncertainty in Carbon Footprints: P&G detergent example

Carbon Footprint of P&G detergents

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

110.00%

120.00%

Tablets 40C UK Compact Powder40C UK

Liquitabs 40C UK Compact Liquid 40CUK

Compact Liquid 30CUK

Compact Liquid 40CFrance

Nor

mal

ized

Car

bon

Foo

tprin

t (%

)

40°C -> 30°C

UK -> France