P&G is committed to having safe and healthy operations around the world. The goals are to protect the lives and health of its employees and the communities surrounding its operations, as well as to protect its assets, ensure business continuity, and engender public trust.

To accomplish this, P&G will:
• Operate facilities safely and ensure that processes are safe and healthy for our employees and residents of the surrounding communities. We will accomplish this by following uniform corporate safety-standards around the world. Safe operations have been a longstanding part of Company culture, reflecting the belief that our employees are our most important asset.

• Construct our facilities so as not to compromise on the safety and health features designed into them.

• Monitor progress toward our objective of preventing injuries, illnesses, and incidents. We will continually assess and improve our safety and health technologies and programs.

• Have every employee understand and be responsible for incorporating safe behavior in daily business activities. Every employee is trained to work in a safe and healthy manner.

• Have operating standards, practices, systems, and resources in place to implement this policy.

Worldwide Health, Safety & Environment Organization

Health, Safety & Environment (HS&E) is a global community of resources responsible for ensuring that all sites worldwide — including Innovation Centers, Distribution Centers, acquisitions, and established plants — are operated safely and legally; that process hazards are minimized or eliminated; that health risks are identified and managed or eliminated; and that waste from sites is reduced as much as possible. Several thousand

employees spend all or a portion of their time on HS&E management. This year, 1,776 full-time equivalents were involved in HS&E activities. This is down 4% from 1,783 FTEs last year and reflects the reorganization of P&G HS&E systems into a more focused support structure.

HS&E total costs for existing sites, which includes costs for personnel, operations, and contractor expenses for HS&E activities

in 2012–2013, were $161.9 million, which is up 12% versus last year’s $146.7 million. Efforts to reduce the amount of waste disposed have increased our overall quantity of recycling, and revenue generated from these recycling activities was $59 million,

up 6.5% from last year. There are three major components to a site’s HS&E organization:
Environmental, Technical Safety, and Industrial Hygiene & Safety leaders; Fire Protection Systems leaders; and an overall HS&E leader. The HS&E site organization also closely partners with the site Health Service, or Medical leader. P&G uses a phased, detailed Risk Assessment process to evaluate the safety of processes and initiatives being introduced at its own manufacturing operations as well as at contractor manufacturing operations. The Risk Assessment process is designed to enable high-speed innovation. P&G has verified that the HS&E program at all its manufacturing facilities meets the intent of the environmental management standard ISO 14001. In 2006, we extended verification to the Global Health and Safety Management standard OSHAS 18001. This verification was conducted by Environmental Resources Management (ERM), a highly respected international consulting firm in the field of environment, health, safety, and sustainability.

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