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PT AAL Supply Chain Suspensions

P&G has never purchased materials directly from PT Astra Agro Lestari (PT AAL). However, materials have, in the past, entered our supply chain indirectly. Across 2022-2023 we implemented a suspension of the five PT AAL subsidiaries linked to on-going stakeholder concerns: PT Mamuang, PT Lestari Tani Telada (PT LTT), PT Agro Nusa Abadi (PT ANA), PT Pasangkayu and PT Letawa. In December 2024, due to renewed issues, we took the decision to extend this suspension to cover all palm oils supply (direct and indirect) from all PT AAL entities. This requirement was shared in December 2024 with our suppliers, stakeholders and publicly via our P&G Palm Oils Grievance Tracker. We are now working with our direct suppliers to execute the relevant suspension plans across 2025. We will continue to work closely with them and to monitor the effectiveness of the suspension on-going.

Commitment to Human Rights and Grievance Investigation

At P&G respect for human rights is a core part of our Purpose, Values and Principles and is fundamental to how we manage our business. Our approaches are aligned with the expectations set out in the U.N. Guiding Principles on Business and Human Rights (UNGPs). We communicate these expectation via our P&G Human Rights Policy Statement and further to our suppliers through our P&G Responsible Sourcing Expectations for External Business Partners and P&G Forest Commodities Policy…

We first became aware and received a grievance linked to three PT AAL subsidiaries - PT Mamuang, PT Lestari Tani Telada (PT LTT) and PT Agro Nusa Abadi (PT ANA) - in Fall 2020. At this time, we sought to use our leverage with supply chain partners to encourage appropriate engagement and resolution of the issues. This included commissioning an independent Field Verification Study which engaged local communities, NGO’s, our direct suppliers and PT AAL. We were disappointed that a meaningful action plan from PT AAL was not immediately forthcoming. Consequently, in 2022 we took steps to suspend three PT AAL subsidiaries linked directly to the concerns raised - PT Mamuang, PT Lestari Tani Telada (PT LTT) and PT Agro Nusa Abadi (PT ANA). This was followed by a further suspension in 2023 of PT Pasangkayu and PT Letawa.

In Summer 2024, we became aware of new concerns, largely linked to the five PT AAL subsidiaries already suspended from our supply chain. We conducted a further engagement with both NGO’s, our suppliers and PT AAL, which followed a previous stakeholder dialogue session including affected communities in 2023. Given the serious and on- going nature of the issues raised we took the decision to require our direct suppliers to immediately commence a suspension of supply effective from December 2024 onwards. We recognise that due to the complexity of some supply chains, completion of implementation does require some time to fully execute. Our suppliers have been directed to implement this with all due speed and attention and we have a continuous and on-going engagement with them supported by our Palm Oils Responsible Sourcing Team…