Water is Critical for Procter & Gamble s Business. Scott D. Dyer, Ph.D. Principal Scientist The Procter & Gamble Company dyer.sd@pg.

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1 Water is Critical for Procter & Gamble s Business Scott D. Dyer, Ph.D. Principal Scientist The Procter & Gamble Company dyer.sd@pg.com

2 Outline P&G s Sustainability Goals History of Environmental Stewardship Environmental Safety istreem Drinking Water Analysis Tool Current Activities for Evaluating Water Risks WBCSD, GEMI, WWF Q&A

istreem Drinking Water Analysis Tool Current

Sustainable Management Products Operations Using 100% renewable materials or recyclate for all our products and packaging Designing products that delight consumers while maximizing the

3 Sustainable Management Products Operations Using 100% renewable materials or recyclate for all our products and packaging Designing products that delight consumers while maximizing the conservation of resources Having zero consumer or manufacturing waste go to landfills Powering our plants with 100% renewable energy No contribution to water scarcity; encourage water conservation

conservation of resources Having zero consumer or manufacturing waste go to landfills Powering

4 Relevance of Water for P&G 1. Suppliers need water for the production of the ingredients of our products (more renewables = more water needs) 2. Our plants require water for making our products 3. Consumers need water while using our products : a) Detergents, cleaning products, soap, shampoo, etc 4. Product ingredients are environmentally safe 5. We want to be AND be seen as managing water responsibly

water needs) 2. Our plants require water for making our products 3.

5 P&G Water Position 1. Recognition of water issues & relevance for business 2. Part of the solution through : a) Water efficiency efforts in our operations b) Innovative water efficient product technologies c) Consumer awareness raising to use our products with less water d) Safe drinking water product for children in need 3. P&G Water Council a) Integrates all businesses and functions

efficient product technologies c) Consumer awareness raising to use our products with less water

6 Circa 1954 and 1956 (Alkylbenzenesulfonate (ABS) = Workhorse Surfactant Replaced by Linearalkylbenzene sulfonate

Thousands Metric Tons North American Consumption Volumes 450 400 Linear Alcohol Ethoxylates More rapidly biodegradable

7 Thousands Metric Tons North American Consumption Volumes Linear Alcohol Ethoxylates More rapidly biodegradable AE (incl. to make AES) LAS Chemical Economics Handbook, 2009 Year

8 Environmental Safety FATE Monitor Specified & Other Chemicals Monitoring Specific Chemicals Cont. Act. Sludge Tests w/ New Chemicals Screening, Die-Away Tests w/ New Chemicals Eco-epidemiology EFFECTS Field Biology Exposed to Specific & Other Chemicals Experimental Stream with Specific Chemicals Chronic Toxicity Tests with New Chemicals QSAR & Acute Toxicity Tests w/ New Chemicals

Sludge Tests w/ New Chemicals Screening, Die-Away Tests w/ New Chemicals Eco-epidemiology

9 Factors Affecting Biotic Integrity Solubilities Alk/Hardness Land Use Velocity ph D.O. Temp. Organics Chemical Variables Nutrients Metals Turbidity Disease Hi/Low Extremes Reproduction Flow Regime Channelization PPT & Runoff Ground Water 1 o & 2 o Production Seasons Sunlight Energy Source Nutrients Biotic Integrity Predation Feeding Organic Matter Competition Riparian Vegetation Habitat Structure Sinuosity Bank Stability Siltation Canopy Substrate Modified from Karr et al., 1986; Yoder & Rankin, 1993

Runoff Ground Water 1 o & 2 o Production Seasons Sunlight Energy Source Nutrients Biotic Integrity Predation Feeding Organic

10 Chemicals vs. Habitat vs. Other Stressors Kapo, K., Burton, G.A., de Zwart, D., Posthuma, L. and Dyer, S Quantitative Lines of Evidence for Screening-Level Diagnostic Assessment of Regional Fish Community Impacts: A Comparison of Spatial Database Evaluation Methods Environ. Sci. Technol., 2008, 42 (24),

Quantitative Lines of Evidence for Screening-Level Diagnostic Assessment of

Exposure of Consumer Product Chemicals GIS-ROUT exposure model developed by Procter & Gamble Recently licensed to the American Cleaning Institute and rebranded as istreem (model is available online)

11 Exposure of Consumer Product Chemicals GIS-ROUT exposure model developed by Procter & Gamble Recently licensed to the American Cleaning Institute and rebranded as istreem (model is available online) Estimates ingredient concentrations resulting from municipal wastewater treatment plant discharges and cumulative percent effluent (surrogate for non-estimated chemicals) Provide estimated concentration per sampling point Sources to segment WWTP Upstream input Tributary input Industrial Loads WWTP (Per capita usage, population, removal) Tributary Losses to segment DWI Biodegradation Downstream Transport DWI

cumulative percent effluent (surrogate for non-estimated chemicals) Provide estimated concentration per sampling point Sources to segment WWTP Upstream

12 istreem web address:

13 Drinking Water Study: P&G with University of Cincinnati 90% Community water systems regulated by federal (USEPA) and state agencies Sources: groundwater, springs, rivers, lakes/reservoirs Contamination: land erosion, pipe corrosion, disinfection, microorganisms, organic and inorganics Quality is generally good, but can be variable across geographies P&G/UC studied ~60% of highly populated metropolitan statistical areas ( ) Obtained Consumer Confidence Reports per utility and expressed selected contaminants as a percentile of all utilities

lakes/reservoirs Contamination: land erosion, pipe corrosion, disinfection, microorganisms, organic and inorganics Quality is generally good, but can

18 Drinking Water Study Summary Water quality throughout the USA met USEPA Drinking Water Criteria Quality below these criteria were variable Many important factors not routinely reported: ph, alkalinity, hardness Some water quality variables are important for P&G product performance E.g., Hair colorants, detergent efficacy

not routinely reported: ph, alkalinity, hardness Some water quality variables

19 Evaluating Water Risks Manufacturing Operations water efficiency Global Water Strategy : Reduce the water footprint of P&G s operations Water Conservation Goal ( 07-12): 20% per unit production Newly proposed Operations Goal ( 10-20): 20% FRESH WATER per unit production Conduct a WATER RISK ASSESSMENT for all sites

Goal ( 07-12): 20% per unit production Newly proposed Operations Goal (

20 Aspects of WATER RISKS Physical (Accessibility, Quantity & Quality) Local Reputational/Responsible Use (NGO/Community) Local Regulations and Management water allocation, standards, pricing Regional/local Close relationship with Energy (Water-Energy Nexus) Electricity = requires water for its generation Obtaining and treating water = requires energy Local

allocation, standards, pricing Regional/local Close relationship with Energy

21 Water Risk Triggers Local drought situations limiting access Water scarcity is a key item for business continuity planning Climate Change Models provide an opportunity to forecast water risks Regulatory measures (e.g. allocation of water) Community/NGO actions, e.g. boycotts True cost of water is often not realized, but needs to be considered for futures planning

22 Water Risk Tools World Business Council for Sustainable Development (WBCSD) Global Water Tool Global Environment Management Initiative (GEMI) tool World Resources Institute (WRI) Aqueduct Program Water Footprint Network : assessing how to include impact into volume measurement (Pfister method) World Wildlife Fund (WWF) Examples

23 WWF Water Risk Filter: Fictitious Example (Ross, Ohio)

24 WWF Water Risk Filter Quick View Water Test (Ross, Ohio Manufacturing)

25 Overall Company Risk Includes all evaluated sites.

26 Site Specific Risk

27 Mitigation Matrix

28 Thank You

How To Plan A Buffer Zone

How To Plan A Buffer Zone Backyard Buffers Protecting Habitat and Water Quality What is a buffer? A buffer (also called a riparian buffer area or zone) is the strip of natural vegetation along the bank of a stream, lake or other