Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Stewardship
• Social Responsibility

Environmental Achievements

• Achieved a 34% improvement in lost workday safety incident rate compared with 2002.
• Recycled or converted into energy approximately 65% of the solid waste generated by manufacturing operations worldwide.
• Revised sustainable forestry policies and practices to improve suppliers’ performance and promote sustainable forestry globally.

Social Achievements

• Invested millions of dollars in employee training (over $4.7 million in Europe alone).
• Received recognition from various rating organizations worldwide as among the best employers to work for.

Governance Achievements

• Board of directors is accountable for ensuring ethical corporate governance, strong internal controls, and compliance with applicable laws.
• Many corporate governance practices were consistent with recent U.S. Securities and Exchange Commission and New York Stock Exchange rule changes.

Climate Goals & Targets

Environmental Challenges

• Developing appropriate environmental standards throughout the supply chain and for third-party manufacturers.
• Meeting growing customer and consumer demand for more environmentally friendly products.

Mitigation Strategies

• Strengthened suppliers’ commitment to sustainably managing forests (all suppliers must be certified to an internationally recognized forest certification system by year-end 2005).
• Developed and implemented a performance-oriented Environmental Management System (EMS) consistent with ISO 14001 standards.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Purchase order terms and conditions require suppliers to warrant that all services have been performed and goods shipped have been produced in compliance with all applicable laws, rules, regulations, standards, or codes, including the U.S. Fair Labor Standards Act.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Huggies Convertables diaper-pants, Huggies Supreme diapers, Huggies Natural Care baby wash, improved Andrex bathroom tissue, new Kotex pads, new Viva towels, improved surgical products.

Awards & Recognition

• Wal-Mart Supplier of the Year Award, Sam’s Club Supplier of Excellence Award, Employer of Choice Award (Minorities Corporate Counsel Association), various awards for best employer in Argentina, Asia, Czech Republic, Korea, UK, Taiwan, and Thailand.

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• Social Responsibility
• Governance

Environmental Achievements

• Reduced water use by 6 percent (16 million cubic meters) versus 2003.
• Recycled or converted into energy approximately 61 percent of manufacturing waste, generating net savings of more than $10 million.
• Required 100 percent of fiber suppliers to be certified by the end of 2005 by one of five internationally recognized forest certification systems; 69 percent achieved certification by the end of 2004.

Social Achievements

• Contributed more than $24 million in corporate and employee donations to charitable organizations.
• Donated millions of dollars worth of product for disaster relief.
• Established a new organization to accelerate growth in Developing and Emerging markets.

Governance Achievements

• No significant exceptions reported through the Code of Conduct survey in 2004.
• Deloitte & Touche expressed an unqualified opinion on the effectiveness of internal control over financial reporting.

Climate Goals & Targets

Environmental Challenges

• Monitoring commitment to no child labor and worker exploitation within third-party contract manufacturers in developing countries.
• Meeting internal corporate certification goals for minority-owned businesses while adhering to U.S. government reporting standards.
• Decreased spending on minority- and women-owned businesses due to supplier consolidation and SAP software implementation.

Mitigation Strategies

• Developing supplier and third-party manufacturing sourcing standards to address child labor and worker exploitation.
• Developing a process for prequalifying manufacturers based on environmental screening criteria.
• Challenging buyers to increase business with current diverse suppliers.

Supply Chain Management

Supplier Audits: Goal to audit top 90% of global fiber suppliers by year-end 2005

Responsible Procurement

• Purchase order terms and conditions requiring supplier compliance with all applicable laws and standards.
• Environmental screening criteria and prequalification process for manufacturers.
• Requirement for all fiber suppliers to be certified by one of five internationally recognized forest certification systems by end of 2005.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative’s Sustainability Reporting Guidelines

Sustainable Products & Innovation

• Scottfold towels
• Kleenex Anti-Viral tissue
• Kimberly-Clark child’s face mask
• Compostable, flushable, and biodegradable products and technologies.

Awards & Recognition

• Calvert Social Index
• FTSE4Good
• KLD Large Cap Social Index
• KLD Broad Market Social Index
• Domini 400 Social Index

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Stewardship
• Safety Performance
• Social Responsibility

Environmental Achievements

• Improved energy efficiency by 19 percent since 2000 (annual savings of approximately $70 million)
• Reduced water use efficiency by 29 percent since 2000 in tissue operations
• Reduced the percentage of waste landfilled by 30 percent through Vision 2005 program
• Approximately 88 percent of virgin wood pulp purchased was sourced from certified suppliers

Social Achievements

• Global corporate and employee donations to charitable organizations totaled approximately $28 million
• Product donations, primarily for disaster relief, totaled more than $2.5 million
• Workplace injuries decreased by 11 percent compared with 2004
• Rollout of Performance Management process to employees worldwide

Governance Achievements

• Introduced a new Code of Conduct Line for anonymous reporting of ethical concerns
• Strengthened commitment to ethical behavior companywide
• Received the highest corporate governance score in a survey of 3,200 global companies by Government Metrics International

Climate Goals & Targets

Environmental Challenges

• High prices of crude oil and natural gas impacting polymer purchasing and reclamation strategies
• Supply chain disruptions due to Hurricanes Katrina and Rita
• Concerns from NGOs regarding forestry practices

Mitigation Strategies

• Developed a strategy to convert waste into polymer pellets for reuse
• Joined the U.S. EPA’s SmartWay Transport Partnership to improve environmental performance of freight delivery
• Revised forestry policies and enhanced transparency to address NGO concerns
• Required all suppliers of virgin pulp to be certified to an internationally recognized forest certification system

Supply Chain Management

Supplier Audits: 15 forestry field audits in 2005

Responsible Procurement

• Stringent policies and management mechanisms to monitor virgin pulp suppliers
• Requirement for all suppliers to be certified to an internationally recognized forest certification system

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes Katrina and Rita

Transition Risks

• Not disclosed

Opportunities

• Energy-efficiency improvements

Reporting Standards

Frameworks Used: Global Reporting Initiative’s 2002 Sustainability Reporting Guidelines

Certifications: ISO 14001 (19 facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Scott Extra Soft tissue
• Cottonelle Triple Roll bathroom tissue
• Kleenex Big Box facial tissue
• Shmurat Teva tissue

Awards & Recognition

• No. 1 among personal care companies in the 2006 Dow Jones Sustainability World Index
• Numerous other awards and recognitions listed in the report

Environmental Metrics

ESG Focus Areas

• Vision 2010 – continual improvement in environmental and safety management
• Ethical sourcing of raw materials
• Responsible business reorganization
• Building trust through good governance
• Operating responsibly in developing countries

Environmental Achievements

• Improved energy efficiency by more than 19 percent since 2000
• Reduced greenhouse gas emissions from manufacturing by 2.3 percent
• Reduced manufacturing waste per unit of output by 6.5 percent

Social Achievements

• Ranked No. 1 among Personal Products companies in the Dow Jones Sustainability World Indexes for the second consecutive year
• Received the U.S. Chamber of Commerce Business Civic Leadership Center International Community Service Award
• Won the United Way Summit Award for Corporate Community Investment
• Launched a new employee website to aid onboarding and integration
• Implemented redesigned global Performance Management and Compensation systems for salaried employees

Governance Achievements

• Amended company by-laws to implement a majority voting standard for the election of directors
• Proposed to stockholders to eliminate the company’s classified board structure

Climate Goals & Targets

Environmental Challenges

• Business reorganization leading to workforce reduction
• Limited availability of Forest Stewardship Council (FSC) certified fiber
• Increasing cost and decreasing availability of global disposal options

Mitigation Strategies

• Responsible and values-aligned approach to workforce reductions, including severance pay and extended benefits
• Commissioned an independent study on increasing FSC-certified fiber use
• Implemented programs to recycle manufacturing wastes and reduce waste generation

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Updated corporate fiber procurement policy; supplier guidelines developed in 2006 (rolled out in 2007); risk assessment process for contract manufacturers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Increased energy efficiency, use of renewable energy sources

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001 (22 facilities), OHSAS 18001 (9 mills)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Pull-Ups with Cool Alert, Kleenguard Purple Nitrile gloves, Sterling nitrile gloves, Cottonelle for Kids

Awards & Recognition

• Dow Jones Sustainability World Indexes (No. 1 in Personal Products sector), U.S. Chamber of Commerce Business Civic Leadership Center International Community Service Award, United Way Summit Award, FTSE4Good index, GolinHarris Corporate Citizenship Index, others

Environmental Metrics

ESG Focus Areas

• Energy and greenhouse gases
• Fiber procurement
• Life-cycle thinking
• Operating in developing and emerging markets
• Water use

Environmental Achievements

• Reduced greenhouse gas emissions per dollar of sales by almost 13 percent since 2005
• Reduced total water use by over 800,000 cubic meters compared with 2006
• 42 percent of facilities met their Vision 2010 energy efficiency targets in 2007 (compared with 25 percent in 2006)
• 97 percent of virgin fiber purchased came from certified suppliers
• Kleenex brand facial tissues in the U.K. became the first branded tissue product to carry the FSC label

Social Achievements

• Increased U.S. spending by 40 percent with minority-owned suppliers and by 17 percent with women-owned suppliers
• K-C and its employees donated a total of $21.6 million in cash and product to causes worldwide
• Yuhan-Kimberly co-hosted campaigns with the government and key customers in Korea to support people in need

Governance Achievements

• Received 31 reports via our 24-hour telephone hotline or intranet site; all were investigated
• K-C’s Board of Directors has 11 independent members

Climate Goals & Targets

Environmental Challenges

• Maintaining sustainable fiber sourcing while meeting product demand
• Balancing environmental improvements with economic considerations
• Managing operations in diverse developing and emerging markets

Mitigation Strategies

• Implementing a new, combined environmental, health and safety management system
• Conducting life-cycle assessments to inform decisions
• Developing detailed sustainability strategies for products and operations
• Collaborating with suppliers and stakeholders to promote sustainable practices

Supply Chain Management

Supplier Audits: Every three to four years

Responsible Procurement

• Sustainable fiber sourcing policy
• Sustainability at K-C: Guide for Suppliers
• Risk assessment questionnaire for contract manufacturers

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Kleenex Naturals facial tissue
• Scott Naturals bathroom tissue and paper towels

Environmental Metrics

ESG Focus Areas

• Health, hygiene and well-being
• Responsible fiber use
• Design for Environment
• Climate and energy
• Community investment
• Employee well-being
• Environmental responsibility
• Responsible employment practices

Environmental Achievements

• Improved energy efficiency by 4.5% to 14.8 million Btu per ton of production
• Reduced greenhouse gas emissions from manufacturing by 7% since 2005
• 98% of virgin fiber purchased from certified suppliers
• More than three-quarters of solid waste kept out of landfill
• Reduced freshwater use by over 1 million cubic meters despite a 3% increase in production
• Installation of combined heat and power systems in two facilities
• Use of landfill gas to partially meet energy needs at two facilities

Social Achievements

• Donated $22.7 million in cash and product to communities
• Launched a campaign to help medical professionals avoid healthcare-associated infections
• Improved employee safety, achieving Vision 2010 goal of 0.5 Total Reportable Incident Rate
• Increased percentage of women in managerial jobs in the U.S. for the fourth consecutive year
• All Latin American companies recognized by the Great Places to Work Institute

Governance Achievements

• Ranked first in the personal products category of the Dow Jones Sustainability World Index for the fourth successive year
• Ranked in the top one percent of GovernanceMetrics International’s ranking of nearly 4,200 companies on corporate governance standards
• Updated Human Rights in Employment Policy

Climate Goals & Targets

Environmental Challenges

• Increased waste generation due to new tissue machine and de-inking operation
• Water scarcity in some regions
• Global financial conditions increasing the need for efficiency and cost effectiveness
• Climate change and energy issues

Mitigation Strategies

• Implementing Environmental Vision 2010 program to reduce waste and freshwater use
• Setting water efficiency targets for different regions
• Improving energy efficiency and installing combined heat and power systems
• Using renewable energy sources like landfill gas
• Developing a global climate change management strategy

Supply Chain Management

Supplier Audits: 18 suppliers assessed

Responsible Procurement

• Fiber procurement policy emphasizing certified suppliers and sustainable forestry

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Huggies Gold Nature Made diapers using biodegradable materials
• HUGGIES Pure and Natural diapers using organic cotton and recycled plastic

Awards & Recognition

• Ranked first in personal products category of DJSI World for four consecutive years

Environmental Metrics

ESG Focus Areas

• Fiber Procurement
• Climate Change
• Water
• Waste
• Energy
• Supplier Relationships
• Community
• Employee Involvement
• Occupational Safety and Hygiene
• Economic Impacts
• Public Policy
• Product Quality and Safety
• Packaging
• Preventing Infection
• Animal Welfare
• Diversity and Inclusion

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Two Tomorrows (North America) Inc

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Products
• Trees
• Water
• Post-consumer waste
• Access to essentials

Environmental Achievements

• Completed Vision 2010, meeting many energy and water management goals; mills in Rouen, France, and Niederbipp, Switzerland further reduced fresh water use; overall fresh water use efficiency improved by 3%; absolute fresh water consumption improved by 11%; nearly all manufacturing facilities met wastewater discharge limits; GHG emissions from manufacturing decreased by more than 5%; Intermodal utilization increased by 86%, reducing diesel fuel consumption and CO2 emissions; launched Scott Naturals™ Tube-Free bathroom tissue, potentially keeping millions of pounds of paper waste out of landfills; introduced Scott Naturals Smart Flush™ bag, saving one liter of water per flush.

Social Achievements

• Huggies® Every Little Bottom program donated 22.5 million diapers to needy families; engaged with stakeholders including UN Global Compact, WWF, and Greenpeace; received numerous awards and recognition for social responsibility efforts in various countries; 95% employee response rate in global engagement survey indicating a positive work environment; implemented numerous local solutions to improve employee engagement based on survey results; launched global Talent Initiative to strengthen leadership and build a diverse talent pipeline; implemented LIVEWELL health promotion programs; achieved 100% rating on the 2011 Corporate Equality Index.

Governance Achievements

• Appointed Jan Spencer as senior vice president of Continuous Improvement, Procurement and Sustainability; established Sustainability Advisory Board; implemented new training and communication tools to improve Code of Conduct awareness and compliance; earned GovernanceMetrics International’s highest rating (10).

Climate Goals & Targets

Environmental Challenges

• Diminishing returns in environmental improvements after 15 years of efforts; overall increase in manufacturing waste to landfill, mainly due to increased recycled fiber processing in Latin America and disruptions in recycling vendor relationships; challenges in meeting Vision 2010 goals in some areas; limited availability of high-quality post-consumer waste paper in North America and Europe; lack of FSC-certified primary fiber in the marketplace.

Mitigation Strategies

• Launched Sustainability 2015 with ambitious goals; identified landfill-free opportunities for recycled fiber sludge; formed partnerships with waste-to-energy plants and recycling companies; invested in de-inking capacity and increased use of waste paper; partnered with suppliers to identify technical breakthroughs for greener alternatives; engaged with major packaging suppliers to find ways to reach packaging-reduction objectives; engaged with fiber suppliers to strive toward the goal of using 100% certified fiber.

Supply Chain Management

Supplier Audits: Initiated regional pilot social compliance audits in 2010; partnered with SGS to begin larger-scale piloting.

Responsible Procurement

• Supplier Social Compliance Standards (SSCS); requirements for letters of compliance from finished product contractors; encouragement of business with Minority-Owned Business Enterprises (MBEs) and Women-Owned Business Enterprises (WBEs).

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Changing regulatory environment surrounding GHGs; rising energy costs; volatile market prices of virgin fiber.

Opportunities

• Development of energy-efficient products; increased use of renewable energy; reduction of GHG emissions.

Reporting Standards

Frameworks Used: GRI G3 Reporting Guidelines (self-declared Application Level B+), Greenhouse Gas Protocol

Certifications: ISO 14001 (43 mills certified)

Third-party Assurance: Two Tomorrows (North America) Inc.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Scott Naturals™ Tube-Free bathroom tissue; Scott Naturals Smart Flush™ bag; Neve Naturali Compacto Bath Tissue; Huggies Nature Made Gold; new generation WypAll® Wipers; KIMGUARD* Sterile Wrap with reduced weight and increased recycled content; Microcool* surgical gown fabric.

Awards & Recognition

• FTSE4Good Index; ENERGY STAR Partner of the Year; Corporate Responsibility Magazine’s Best Corporate Citizens; numerous awards and recognition for social responsibility and workplace excellence in various countries; LEED certification for Professional Headquarters building.

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Products

Environmental Achievements

• Reached 100% certification of fiber suppliers through third-party forest management certification systems
• Reduced total global water use by 17.3% from 2011
• Yielded $56 million in revenue globally through sales of scrap and secondary materials, offsetting waste disposal costs
• Realized over $1.5 million in energy savings at El Salvador facility

Social Achievements

• Engaged over 13,000 employees in Small Steps for Sustainability program
• More than 12,000 employees collaborated in a global One K-C Culture Jam
• Introduced safe water initiatives in El Salvador and Colombia
• Donated $19 million in cash and $14 million in product donations

Governance Achievements

• Updated Supplier Social Compliance Standards (SSCS) program
• Held first ever Compliance and Ethics Week
• Improved employee awareness of Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Fell short of zero manufacturing waste to landfill goal
• Many products are single-use, requiring more work on recycling and composting
• Adjusting to new global economic realities and restructuring in North American and European operations

Mitigation Strategies

• Finding creative solutions to reduce environmental footprint and encourage supplier sustainable practices
• Focusing on sourcing environmentally preferred alternative materials
• Finding ways to enhance the benefits of philanthropic activities

Supply Chain Management

Supplier Audits: 38 audits conducted in 2012

Responsible Procurement

• Updated Supplier Social Compliance Standards (SSCS); Sustainability Guide for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: ISO 50001 (Koblenz Mill)

Third-party Assurance: Two Tomorrows (North America) Inc.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Andrex Eco bath tissue (bamboo and recycled fiber); Kleenex and Scott brand products (wheat straw and bamboo)

Awards & Recognition

• FTSE4Good Index Series, Ethisphere's World's Most Ethical Companies, CR Magazine's 100 Best Corporate Citizens, Corporate Equality Index, Great Places to Work Institute, WWF Environmental Paper Award, Newsweek's Green Rankings, DiversityInc's 25 Noteworthy Companies, Gartner's Top 25 Supply Chains

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Products

Environmental Achievements

• Reduced GHG emissions by 6.4% from 2010 baseline, achieving 2015 goal two years early.
• Achieved water use reduction objective ahead of schedule with a 26.4% reduction from 2010 baseline.
• 81.5% of K-C manufacturing waste diverted from landfill.
• Reduced diaper material by more than 10% (approx. 32 million pounds) and packaging by almost 2 million pounds.

Social Achievements

• Achieved a 13% reduction in reportable injuries & illnesses, delivering the lowest incident rate in history (0.27 incidents per 200,000 hours worked).
• Achieved 2015 reportable incident rate target of 0.30 ahead of schedule.
• 64% of K-C’s key suppliers participated in the Corporate Social Compliance program.
• Contributed more than $35.0 million in cash and product donations.

Governance Achievements

• Established REAL global safety strategy.
• Conducted a sustainability materiality assessment.

Climate Goals & Targets

Environmental Challenges

• Fell short of zero manufacturing waste to landfill goal.
• Packaging goal remained flat despite increased sales volume.
• Need to better integrate sustainability into team mindsets and capabilities.

Mitigation Strategies

• Amending 2015 packaging metric to accommodate alternative improvement methods.
• Focusing on establishing robust sustainability goals through collaboration with regional leaders and Sustainability Advisory Board.

Supply Chain Management

Supplier Audits: 140+ K-C owned and contracted suppliers audited by external auditing firms in 2013

Responsible Procurement

• Supplier Social Compliance Standards (SSCS)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Third-party Assurance: DNV Certification Inc. (DNV GL)

Sustainable Products & Innovation

• Huggies Snug & Dry diapers with reduced material
• Viva paper towels with bamboo fiber

Awards & Recognition

• FSC® Excellence Award for Supplier of the Year
• Banksia Foundation Award
• Australian Business Award for Environmental Sustainability
• Champion for Change Award from Practice Greenhealth
• FTSE4Good Index Series
• Ethisphere’s World’s Most Ethical Companies Ranking
• CDP Sector Leader for Improving Deforestation Risk
• 2013 U.S. EPA SmartWay Environmental Excellence Award
• Dow Jones Sustainability North America Index member
• UN Global Compact 100
• National Premier Healthcare Alliance Award For Operational Excellence
• Environmental Sustainability prize at the Australian Business Awards 2013
• CSC Award 2013 for 2012 Sustainability Report
• Investors in People Health and Wellbeing Award (UK)
• League of American Bicyclists Gold Award
• American Heart Association Gold Award
• Corporate Equality Index 2013

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Products

Environmental Achievements

• Achieved a 6.9% reduction in absolute greenhouse gas emissions (exceeded 5% Sustainability 2015 goal)
• Diverted over 88% of manufacturing waste from landfills (83.9% in Sustainability 2015 goal)
• 52% of net sales from environmentally innovative products (exceeded 25% Sustainability 2015 goal)

Social Achievements

• Increased key suppliers participating in Supplier Social Compliance Standards (SSCS) to 87% of in-scope suppliers
• Active social programs in 97% of all Kimberly-Clark communities
• 2014 was Kimberly-Clark’s safest year ever, with a 19% reduction in reportable incidents and zero fatalities

Governance Achievements

• Continued progress on Supplier Social Compliance Standards (SSCS) including oversight of conflict minerals and anti-corruption compliance

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied, not explicitly stated)
• Water scarcity in regions like São Paulo, Brazil
• Deforestation concerns related to fiber sourcing

Mitigation Strategies

• Risk-based approach to predicting and preventing potential business disruptions in the supply chain
• Innovative water conservation methods at Mogi das Cruzes mill in Brazil (e.g., recycled water, recirculation)
• Investing in the development of alternative sources of fiber (e.g., non-wood fiber)
• Sourcing 100% of virgin fiber from certified sources

Supply Chain Management

Supplier Audits: 122 audits/year

Responsible Procurement

• Supplier Social Compliance Standards (SSCS), Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: Null

Third-party Assurance: DNV GL

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Products incorporating domestically sourced non-wood fiber

Awards & Recognition

• Catalyst Award, EPA’s SmartWay Excellence Award (five times)

Environmental Metrics

ESG Focus Areas

• Social Impact
• Forests & Fiber
• Waste & Recycling
• Energy & Climate
• Supply Chain

Environmental Achievements

• Reduced use of fiber from natural forest landscapes by 26% over the 2011 base year
• 89% of the fiber used in tissue products was from environmentally-preferred sources
• Diverted 95% of manufacturing waste from landfill
• Reduced absolute GHG emissions by 16.8% from a 2005 baseline

Social Achievements

• Exceeded target of positively impacting 2 million lives in 2016, reaching 2,052,000
• Completed 205 social compliance audits in 148 key facilities
• Global Total Reportable Incident Rate of 0.23

Governance Achievements

• 100% on the Human Rights Campaign (HRC) Foundations 2017 Corporate Equality Index (CEI)

Climate Goals & Targets

Environmental Challenges

• Sustaining and scaling up targeted programs to meet post-consumer waste targets
• Maintaining supplier compliance with social compliance standards
• Addressing inconsistent safety leadership and practices

Mitigation Strategies

• Expanded waste program to include boiler ash, de-inking trasher rejects, and construction and demolition debris
• Improved supplier awareness of social compliance requirements and corrective actions
• Introduced six key imperatives for the next phase of REAL safety strategy and transformation

Supply Chain Management

Supplier Audits: 205 audits in 2016

Responsible Procurement

• Human Rights in Employment Policy
• Code of Conduct
• Corporate Social Compliance program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: WSP

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 6
• Goal 7
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15

The five priorities of our sustainability 2022 strategy reflect our commitment to addressing our material issues.

Awards & Recognition

• 2016 FSC Leadership Award
• Top 40 on “100 Best Corporate Citizens” Survey by CR Magazine
• U.S. EPA SmartWay® Excellence Award
• Best companies to work for in Asia by HR Asia Magazine – K-C Hong Kong
• Forbes’ The Just 100: America’s Best Corporate Citizens in 2016
• Pulp & Paper International 2016 Water Efficiency Award
• PR Week Awards Asia 2016 – Silver Award
• American Chamber of Commerce in Singapore (AmCham) – K-C APAC
• Kimberly-Clark UK ranked one of the Best Employers – Statistica Survey
• APAC Effie Award finalist for Depend ‘Holding Hands’ campaign – YK Korea
• Kimberly-Clark HsinYin Mill recognized for Tainan Award
• Excellence in CSR Award by CommonWealth Magazine – K-C Taiwan
• South Australian Premier’s Award for Corporate Social Responsibility – Millicent Mill
• Best Suppliers award, Advantage Report – K-C Puerto Rico
• Best Suppliers award, Advantage Report – K-C Argentina
• Fundación Manpower Group – El Salvador
• Monitor Empresarial de Reputación Corporativa (MERCO) – CSR Reputation (Peru, Bolivia, Argentina)
• Eikon Award – K-C Argentina

Environmental Metrics

ESG Focus Areas

• Social Impact
• Forests & Fiber
• Waste & Recycling
• Energy & Climate
• Supply Chain

Environmental Achievements

• Diverted 95% of facility waste from landfills
• Reduced absolute GHG emissions by 18% from a 2005 baseline
• Reduced use of fiber from natural forest landscapes by 29% over the 2011 base year
• Increased use of environmentally-preferred fibers to 89% in tissue products
• Announced commitment to purchase 1,000,000 megawatt hours of renewable wind energy annually

Social Achievements

• Improved the well-being of 4.3 million people in need through social programs
• Expanded buyer training program on social compliance in Latin America
• Completed 238 social compliance audits in key facilities

Governance Achievements

• Maintained A ranking in ESG Rating score (industry average A)
• Received a perfect score of 100% on the 2017 and 2018 Corporate Equality Index

Climate Goals & Targets

Environmental Challenges

• Challenges associated with post-consumer waste
• Competitive landscape within the pulp supply chain
• Water stress in 12 operations
• Climate change risks (regulatory changes, physical climate parameters)
• Social compliance gaps in the supply chain

Mitigation Strategies

• Adopting circular design principles
• Working with NGO and supplier partners to prevent deforestation
• Partnering with Deltares to develop a water risk dashboard (WaterLoupe)
• Investing in renewable energy projects
• Deploying and improving the social compliance program
• Expanding buyer training programs on social compliance

Supply Chain Management

Supplier Audits: 238 social compliance audits in 2017

Responsible Procurement

• Supplier Social Compliance Standard
• Environmentally driven fiber sourcing policy
• SupplierLINK Portal

Climate-Related Risks & Opportunities

Physical Risks

• Extreme temperatures impacting electricity availability and cost (El Salvador)

Transition Risks

• Carbon taxes, climate emissions legislation

Opportunities

• Renewable energy, energy efficiency improvements

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: WSP

UN Sustainable Development Goals

• 3, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 17

Report maps Sustainability 2022 goals to relevant SDGs

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards listed in the report (see section '2017 Awards')

Environmental Metrics

ESG Focus Areas

• Deforestation
• Single-use plastics
• Climate change
• Water scarcity
• Ingredients and transparency
• Child and forced labor
• Occupational health & safety

Environmental Achievements

• 40% absolute reduction of Scope 1 & 2 GHG emissions by 2022 (2005 baseline) achieved 34.7%
• 96% of manufacturing waste diverted from landfill to beneficial uses by 2022
• 26,317 MT of product & packaging waste diverted to value-adding alternatives by 2022
• 31% reduction in natural forest fiber use (by 2025)
• 84% of tissue fiber sourced from environmentally preferred fiber supply (by 2025)

Social Achievements

• Improved the lives of 17 million people by 2022 (target 25 million)
• Named to Forbes Best Employers for Diversity, Forbes Best Employers for Women, Forbes Best Employers for New Grads, and Forbes World’s Best Employers

Governance Achievements

• Maintained Prime status from ISS Corporate Solutions - QualityScore (Oekom)

Climate Goals & Targets

Environmental Challenges

• Water scarcity in regions where tissue mills are located
• Climate change impacts on supply chain and energy costs
• Deforestation in fiber sourcing
• Managing the environmental impact of packaging

Mitigation Strategies

• Achieved sustainable water use at 4 of 12 tissue mills in water-stressed areas by 2022
• Installation of a new natural gas boiler at Enstra facility to reduce GHG emissions and carbon tax costs
• Installation of a combined heat and power (CHP) plant at Papeles del Cauca mill in Colombia
• Exploring global investment opportunities to drive carbon footprint improvement
• Continuously improving Kimberly-Clark’s reputation through product brand strategies and communications
• Mitigating risks associated with extreme weather events and water shortages
• Developing a more formalized detailed TCFD strategy

Supply Chain Management

Supplier Audits: 544 in-scope suppliers, 223 facilities audited in 2019

Responsible Procurement

• SupplierLINK portal with standards and requirements
• Social compliance audits
• Due diligence process including environmental factors
• Risk assessments for existing suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water shortages

Transition Risks

• Government regulations (carbon tax)
• Energy price spikes

Opportunities

• Investment opportunities to improve carbon footprint
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14064-3

Third-party Assurance: WSP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• American Chamber of Commerce (AMCHAM) of Costa Rica Social Responsibility in Action Award
• Commonwealth Magazine Excellence in Corporate Social Responsibility Award
• Corporate Responsibility Magazine 100 Best Corporate Citizens
• ECPI Indices Constituent
• EPA SmartWay Excellence Award
• Ethibel Sustainability Index Excellence Global
• Ethical Corporation 2019 Responsible Business Awards
• Ethisphere World’s Most Ethical Companies
• Forbes Best Employers for Diversity
• Forbes Best Employers for Women
• Forbes Best Employers for New Grads
• Forbes World’s Best Employers
• Forbes and Just Capital America’s Most JUST Companies
• Forest 500
• Fortune World’s Most Admired Companies
• FTSE4Good
• Hermes Creative Awards
• HR Asia Hong Kong’s Best Companies to Work for in Asia
• HR Asia Best Companies to Work for China
• Mejores Empresas en Reputación Corporativa y Ética de América Central
• National Association For Female Executives (NAFE) Top 70 Companies for Executive Women
• Newsweek America’s Most Responsible Companies
• Reputation Institute/Forbes World’s Most Reputable Companies
• Vida y Éxito Sustainability Leader Award
• Working Mother Magazine 100 Best Companies
• WWF 3 Trees on the Timber Scorecard

Environmental Metrics

ESG Focus Areas

• Climate Change
• Forests
• Water
• Plastics
• Social Impact
• Inclusion & Diversity
• Human Rights
• Ethical Practices

Environmental Achievements

• Reduced GHG emissions by 32.1% versus 2015 baseline
• Decreased water usage in water-stressed regions by 32.5%
• Reduced natural forest fiber footprint by 19% from a 2011 base year
• Sourced 84% of tissue fiber from Environmentally Preferred Fiber (EPF) sources

Social Achievements

• Advanced the well-being of 25.7 million people through various programs
• Launched initiatives to support communities affected by COVID-19 and social unrest
• Implemented Inclusion & Diversity initiatives, including Global Inclusion Week and She Can Connect

Governance Achievements

• Named one of the "World's Most Ethical Companies" by the Ethisphere Institute

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and supply chains
• Social unrest highlighting systemic inequities
• Complex challenges associated with plastic pollution
• Water stress in various regions
• Balancing responsible fiber sourcing with increased demand

Mitigation Strategies

• Implemented rigorous COVID-19 safety protocols
• Launched initiatives to address social inequities and promote inclusion
• Collaborated with partners to reduce plastic footprint and promote circular economy
• Implemented sustainable water use programs in water-stressed regions
• Used technology to map and analyze risks in fiber supply chain

Supply Chain Management

Supplier Audits: 164 audits conducted out of 215 originally scheduled for 2020

Responsible Procurement

• Social Compliance Standards aligned with international principles
• Risk-based approach to supplier audits
• Corrective action plans for non-compliant suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacts on fiber supply chain

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and processes
• Investment in renewable energy

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards “Core” level

Certifications: ISO 9001, ISO 13485, FSC®

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 13: Climate Action
• Goal 15: Life on Land

Initiatives contributing to improved health, gender equality, water access, climate action, and forest conservation

Sustainable Products & Innovation

• Kleenex ECO toilet paper (100% FSC®-certified bamboo)
• Huggies Pure Biodegradable wipes

Awards & Recognition

• World's Most Ethical Companies
• Top Companies for Executive Women
• Diversity Best Practices Inclusion Index

Environmental Metrics

ESG Focus Areas

• Climate Change
• Inclusion & Diversity
• Environment, Health and Safety
• Product Quality & Safety
• Plastics Footprint
• Forest Footprint
• Water Footprint
• Social Impact

Environmental Achievements

• Reduced operational emissions (Scope 1 and 2) by nearly 41% versus the 2015 base year.
• Achieved 87% environmentally preferred fiber use globally.
• Doubled the percentage of recycled content in plastic packaging.
• Renewables accounted for 30% of electricity purchased at manufacturing and distribution sites (a 12% improvement from 2020).

Social Achievements

• Advanced the well-being of 15.7 million people in vulnerable and underserved communities in 2021.
• Huggies donated over 20 million diapers to struggling families in the U.S. in 2021.
• Kotex and the Kimberly-Clark Foundation contributed $625,000 to bring menstrual health education to girls in Guatemala and Peru.
• Launched Kotex Hygiene Talk program in Nigeria, distributing samples to over 338,000 girls.

Governance Achievements

• Completed Kimberly-Clark’s first climate risk assessment and communicated the findings in line with the Task Force on Climate-related Financial Disclosures (TCFD) framework.
• Released a new Culture Compass defining how teams bring the company's purpose to life through values.
• More than 70% of team leaders participated in the Activating Inclusive Leadership Lab.

Climate Goals & Targets

Environmental Challenges

• Growth in Personal Care business and challenges with supply and affordability of sustainable solutions created headwinds to plastic footprint reduction goals.
• Reducing the overall use of natural forest fibers to meet the 50% reduction target by 2025 proved challenging.

Mitigation Strategies

• Continuing to partner with stakeholders to drive innovation and action in sustainable materials and processes.
• Seeking cost-effective and sustainable solutions for waste streams going to landfill.
• Working to unlock further reductions in natural forest fiber use through innovative materials and technological solutions.

Supply Chain Management

Responsible Procurement

• Responsible fiber sourcing practices
• Partnerships to drive innovation in sustainable materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards “Core” level, TCFD

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 5 (Gender Equality)
• SDG 6 (Clean Water and Sanitation)
• SDG 13 (Climate Action)

Sustainable Products & Innovation

• Recycled fiber paper towels
• Exploration of marine- and soil-biodegradable biopolymer solutions

Environmental Metrics

ESG Focus Areas

• Better Products
• Better Planet
• Better Workplace
• Better Society
• Integrity & Accountability

Environmental Achievements

• Surpassed 2030 water footprint target
• Bolstered utilization of alternative energy sources (wind and solar power)
• Completed a nature footprint pilot project aligned with the TNFD framework
• Achieved a 40.9% absolute reduction in operational (Scope 1 and 2) GHG emissions versus 2015 baseline
• Achieved a 10.4% energy efficiency improvement versus 2015 baseline
• Reduced Natural Forest Fiber footprint by 39% compared to 2011

Social Achievements

• Estimated impact of brand programs and partnerships on 101 million individuals worldwide
• Strengthened human rights due diligence and supplier engagement processes
• Launched Global Inclusion Week, Power Days, and Employee Resource Groups (ERGs)

Governance Achievements

• Refreshed materiality assessment in 2023
• Board of Directors established framework for sustainability-related policies and procedures
• Established cross-functional teams for risk management and sustainability oversight

Climate Goals & Targets

Environmental Challenges

• Affordability, supply, and functional performance of alternative solutions for plastics reduction
• Limited industry collaboration and innovation for plastics reduction
• Inadequate waste management infrastructure
• Regulatory complexity and lack of incentives for plastics reduction
• Water scarcity in some regions
• Climate-related risks impacting supply chain and operations

Mitigation Strategies

• Investing in alternative fibers, polymers, and product solutions
• Improving waste-handling systems and innovating sustainable alternatives
• Implementing Lean Water Program in APAC
• Conducting updated risk assessment of direct operational facilities
• Engaging suppliers to discuss GHG emissions reduction and sustainable forestry practices
• Reducing reliance on fossil fuel-based plastics
• Increasing use of alternative, environmentally preferred non-wood and recycled fibers

Supply Chain Management

Supplier Audits: Approximately 200 facilities audited annually

Responsible Procurement

• Supplier Code of Conduct
• Supplier Social Compliance Standards
• 90-day supplier challenge for sustainable alternative materials

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Storms
• Wildfires
• Droughts

Transition Risks

• Increased carbon pricing
• Regulations on raw materials and production methods
• Increased cost of raw materials
• Shift in customer and consumer values

Opportunities

• Developing more sustainable products
• Investing in renewable energy
• Improving energy efficiency

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001, RSPO

UN Sustainable Development Goals

• Good Health & Well-being
• Gender Equality
• Clean Water & Sanitation
• Climate Action
• Life Below Water
• Life on Land
• Responsible Consumption & Production

Kimberly-Clark's initiatives contribute to these SDGs through product access for underserved communities, water conservation, emissions reduction, responsible sourcing, and community engagement.

Sustainable Products & Innovation

• Kotex feminine hygiene paper pouch
• Plastic-free baby wipes
• Reusable menstrual and incontinence solutions
• Plastic-free wipes in Korea

Awards & Recognition

• Barron's 100 Most Sustainable Companies
• Clean200
• Forbes: World's Best Employers 2024
• Fortune's Most Innovative Companies
• Human Rights Campaign Foundation's Corporate Equality Index: Equality 100 Leader
• Newsweek: America's Greatest Workplaces for Diversity
• Newsweek: America's Most Responsible Companies
• U.S. News & World Report: Best Companies to Work For
• Ethisphere: World's Most Ethical Companies
• Disabled American Veterans Large Employer of the Year
• Global ERG Network Top 10 Enterprise-Wide Employee Resource Groups
• Global ERG Network Top 25 Employee Resource Groups
• Military Times Best for Vets: Employers
• Seramount: Best Companies for Multicultural Women

Environmental Metrics

ESG Focus Areas

• Consumer health & safety
• Consumer satisfaction
• Ethics & transparent management
• Socially responsible activities
• Social impact of products
• Work-life balance, family-friendly culture
• Business strategies
• Environmental management
• Creation of shared values for solving social problems
• Climate change
• Economic performance
• Smart work

Environmental Achievements

• Reduced GHG emissions by 15.3% (36,407tCO2e) compared to the 2015 emission trading scheme permits.
• Water recycling rate of 37.1%
• Waste recycling rate of 98.4%
• 34 products with eco-friendly certifications

Social Achievements

• Launched an integrated consumer care system, resulting in a 4.3% year-on-year reduction in consumer complaints in 2015.
• Acquired family-friendly company certification for nine consecutive years.
• Created 211 jobs for seniors.
• Donated 1.5 million feminine sanitary napkins to low-income adolescents.

Governance Achievements

• CEO participated in the CEO Ethical Management Declaration for 13 consecutive years.
• Established a legal and compliance division directly under the CEO.
• Developed a whistleblower protection program.

Climate Goals & Targets

Environmental Challenges

• Slowdown in advanced economies and sluggish growth in emerging markets.
• Diversified consumption patterns, aging population, and growth of micro-sized households.
• Climate change and its impact on GHG emissions.

Mitigation Strategies

• Diversification of business structure and expansion of online market.
• GHG reduction programs and low-carbon vision.
• Collaboration with related sectors to exceed emission targets.
• Implementation of site-specific reduction programs.

Supply Chain Management

Responsible Procurement

• Green procurement (KRW 113 billion in eco-friendly forest certified pulp)
• Usage of recycled raw materials (33.4% recycled paper at Kimcheon facilities)
• Fair Trade and Shared Growth Pact with 75 partners

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Third-party Assurance: Korea Management Association Registration Inc.

Sustainable Products & Innovation

• Kleenex® Mask
• Kleenex Dry Cell Hand Towel
• Depend Style Underwear
• Huggies Nature Made diapers

Awards & Recognition

• Most admired company in Korea for 13 consecutive years
• Top in Korean Sustainability Index for 7 consecutive years
• Grand prize in CSR Awards