Australian Packaging Covenant Revised Action Plan

February 2014-December 2015

Kimberly-Clark Australia Pty Ltd 52 Alfred St, Milsons Point, NSW 2061 ACN 000 032 333

1 CONTENTS

GLOSSARY ...... 2 1. KIMBERLY-CLARK PROFILE ...... 3 2. VICE PRESIDENT AND MD FOREWORD...... 5 3. ACTION PLAN OVERVIEW ...... 6 4. PRODUCTS MADE IN AUSTRALIA ...... 7 5. IMPORTED PRODUCTS ...... 7 6. APC ACTION PLAN ...... 8 7. MANAGEMENT ENDORSEMENT ...... 12

GLOSSARY

KCA Kimberly-Clark Australia Pty Ltd

KCP KCA Professional Division, i.e., away from home products

APC Australian Packaging Covenant

SPG Sustainable Packaging Guidelines (form part of APC)

TT Toilet Tissue

SKUs or skus Stock Keeping Units

RSC Regular Slotted Container (conventional corrugated box style)

PE Polyethylene

2 1. KCA PROFILE

GENERAL REQUIREMENTS DETAIL Kimberly-Clark Australia Pty Ltd Company name & subsidiaries: 52 Alfred St, Milsons Point 2061, ph 135228, ACN 000 032 333

Nature of organization: Australian subsidiary of major USA-based, multinational company

What it does: Makes pulp, paper, non-woven textiles, health care and personal hygiene products & garments Brands: KCA has many key consumer brands (Retail Consumer Goods) including:

Kleenex ®, Viva®, Huggies®, Snugglers®, Poise®, Poise®, Depend®, Kotex®, and U by Kotex®, Brands

KCA also has Business to Business (Professional and Health Care) brands.

As the new APC only covers retail consumer goods this report does not cover packaging optimization initiatives for those products.

$719 m consumer product sales in Australia. Size/turnover: Excludes ‘B2B’ (KCP/HC), export and hard roll/pulp sales

Head office Sydney, 2 Mills in NSW, 1 Mill in South Australia and distribution & sales centres in capital cities. Location: Some products imported from Kimberly-Clark global suppliers. Some products sourced from local contract packers. KCA uses packaging from packaging companies Place in packaging chain: to package its retail and wholesale packs of products Action Plan contact officer details: Frank Bova, Packaging Manager,

3 GENERAL REQUIREMENTS DETAIL ph; 02-9963 8804, email; [email protected]

Back up Contact Ryan Kane, Sustainability & CSR Advisor ph; 02-9963 8768, email: [email protected] Time period: 2014 to 2015 plan updated February 2014

2. FOREWORD FROM THE VICE PRESIDENT AND MANAGING DIRECTOR, KIMBERLY-CLARK AUSTRALIA AND NEW ZEALAND

At Kimberly-Clark, we're 100% committed to reducing the impact of our environmental footprint.

As an Australian manufacturer and marketer of the leading Kleenex®, Viva®, Kleenex® Cottonelle®, Huggies®, U by Kotex®, Poise® and Depend® Brands, as well as business-to-business Kimberly-Clark Professional and Health Care divisions, we pride ourselves on being an industry leader in sustainability.

Our vision is to lead the world in the essentials for a better life and a key pillar of that vision is to create a better future. Aligned with that, Kimberly-Clark's sustainable business practices are woven into the fabric of our business plans with clearly articulated, ambitious metrics for all business units.

In Australia, our local sustainability strategy, Our Essential World, is aligned to our Global Sustainability 2015 focus areas – people, planet and products - yet tailored to our local market. We have set ourselves some bold sustainability targets to achieve by 2015 and we’re pleased that we have already exceeded some of them and are well on our way to achieving others.

In 2013, Kimberly-Clark Australia was acknowledged for our leadership in sustainability, winning three of Australia’s most prestigious sustainability awards:

FSC® Excellence Award for Supplier of the Year For our strong leadership in the procurement and supply of FSC® Certified products and using the power of our well-known brands in partnership with FSC, WWF and the Love Your Forests Program to promote responsible forest management.

Banksia Foundation Award - Leading in ‘Sustainability for Large Organizations’ For being an industry leader with the Our Essential World sustainability strategy.

The Australian Business Award for Environmental Sustainability For our commitment to driving environmental and social sustainability practices and initiatives throughout the entire business value chain.

Kimberly-Clark Australia is committed to the Australian Packaging Covenant with these same underpinning business principles. Kimberly-Clark Australia was one of the first NPC and APC signatories and has demonstrated packaging and distribution system optimization year on year since 1999. This will continue to be a key part of our sustainability objectives for 2014-2015 and beyond.

Robbert Rietbroek VP and Managing Director Kimberly-Clark Australia and New Zealand

3. ACTION PLAN OVERVIEW

This action plan update has adjusted the layout of KCA’s APC plan to align directly with each goal and KPI of the APC. This will facilitate more efficient reporting against the goals and KPIs.

KCA sets annual packaging development objectives which are tracked via monthly development meetings with each Australian packaging supplier. These meetings also have a primary goal of continually identifying and implementing new sustainability optimisation initiatives. All new local and imported products and packaging are required to have a documented SPG template assessment with reference in KCA’s formal product development steps and gates approval documentation.

KCA’s packaging development approach is one where improvement initiatives have to maintain or improve packaging material and format functionality, measureable properties and overall performance and efficiency in the total supply chain. At the same time these initiatives need to drive cost savings and work towards KCA sustainability goals of 10% weight reduction and 20% recycled content for flexible packaging by 2015 vs 2010.

Whilst carton board and corrugated board packaging has been optimized to the edge of functional limits, evaluation of alternative styles, product size/count and new technologies is ongoing. KCA has developed a shipper and palletising design guideline and uses optimization software to ensure safe design and optimized shipper material weight and palletizing.

In 2014, KCA has taken further steps to enhance on pack information regarding packaging recyclability. Our partnering with the Red Group continues to build and we are taking the opportunity to include the Red Group logo and the website link for flexible film packaging collection points at participating store locations

Frank Bova Packaging Manager. Kimberly-Clark Australia and New Zealand

6 4. PRODUCTS PACKAGED IN AUSTRALIA

 Nappy Products; Polybags, Litho-laminated Corrugated boxes and standard Corrugated boxes  Facial Tissues; Cartons and standard Corrugated boxes  Toilet Tissue; Poly label Rewind (PE film) and Poly bundle film (PE bundle film)  Kitchen Towel; Poly label Rewind (PE film) and Poly bundle film (PE bundle film)  Cleaning Wipes; Laminate film, labels, molded plastic lids, cartons, Shelf Ready shippers- litho laminated and standard perforated corrugated RSC styles.

5. IMPORTED PRODUCTS

 Feminine Care Pads; Polybags and standard Corrugated boxes ( currently developing Shelf Ready shippers)  Feminine Care Liners; Polybags and standard Corrugated boxes ( currently developing Shelf Ready shippers)  Tampons; Cartons and standard Corrugated boxes ( currently developing Shelf Ready shippers)  Adult Care Briefs, Underpants Cartons and standard Corrugated boxes

7 6. APC ACTION PLAN

KPIs Action Responsibility Baseline Performance goal timing Goal 1 Design Optimise Packaging for resource efficiency and reduced environmental impact without compromising product quality and safety. Demonstrate implementation of the SPGs for design and selection of packaging.

KPI 1 1.1 Add SPG Packaging All shippers and 1.1.1 All KCA For all Projects Integrate SPGs template Manager palletisation to be packaging assessed before Project into the KCA requirement to designed and against the SPGs. commercialization product the BFX (formal specified to KCA approval stage. development product design guidelines process. development which specify 1.1.2 All steps and gates) stacking safety new/updated Continually documentation parameters. packaging to be review all and approval assessed against the packaging for process Flexible SPG template. light weighting, packaging already reuse, recycled optimized for content and weight at recycling beginning of APC compatibility. II.

1.2 Review Nat Distribution Current 1.2.1 Confirm 2014 stretch wrap Manager specifications current specifications specification grade is optimized for material thickness and performance. 1.3 Review Packaging Current 1.3.1 Ensure pallet 2014 Ingleburn board Manager specifications stacking safety grades to see if maintain safe factors comply with a one grade pallet stacking. KCA palletizing reduction can be design guideline. achieved for some codes. 1.4 Evaluate use Packaging Current Prepress 1.4.1 Retail box 2014 of common Manager Specifications. supplier to evaluate print colours- and advise cost plates for retail savings and box variants associated ink and waste savings metrics in their plant. 1.5 Evaluate Packaging Current 1.5.1 Maintain line 2014 opportunity for Manager measurable efficiency, carton further board properties for functionality and weight carton-board and presentation. reduction for carton creasing Line efficiency facial cartons measure is OEE metric (overall equipment effectiveness). Carton must not damage during trials and through supply chain.

8 KPIs Action Responsibility Baseline Performance goal timing 1.6 Evaluate Packaging Current 1.6.1 Maintain line 2015 further film Manager measurable efficiency weight properties for (measured by reductions via flexible packaging OEE). Packaging new resin materials. must not damage technologies for during production all flexible and transport trials. packaging

1.7 Evaluate Packaging Current 1.7.1 Improve 2014 options for Manager FC palletisation. pallet area Improved Toilet Division utilisation from Tissue pallet 80% to 95%. utilisation Goal 2 Recycling Implement and continuously improve on site packaging waste management for diversion to recycling and specify recycled content packaging where functional and feasible.

KPI 3. 3.1 Formal Sustainability Current on site 3.1.1 Maintain or Annually On site system in place Department packaging waste drive to 100% Packaging at all mills. recycling rates: recycling. waste recycling Millicent Mill 100%; Albury Mill 100%; Ingleburn Mill 85%.

KPI 4. 4.1 Buy Procurement Current 4.1.1 Review Policy Formal Recycled specifications. policy with implemented Documented Packaging procurement 2012 and Policy for where annually. reviewed buying recycled technically and All corrugated annually. economically boxes are 100% feasible. recycled content. Facial cartons are now kraft due to Amcor Petrie mill closure. Recycled content increase in facial tissue cartons from other sources to be evaluated.

Goal 3 Product Stewardship Manage the impact of packaging on the wider community and environment throughout the products lifecycle.

KPI 6. 6.1 Implement Packaging Current packaging 6.1.1 Continuously Monthly Formal Process monthly Manager specifications evaluate to work development Procurement opportunities for collaboratively meetings with recycled content on packaging each Australian addition to flexible design and /or Packaging packaging at recycling supplier to monthly packaging continually development develop and meetings which are implement held with each packaging packaging supplier. Annually optimisation outcomes. 6.1.2 Annually set 9 KPIs Action Responsibility Baseline Performance goal timing packaging development objectives to drive to KCC global objectives of 10% overall packaging weight reduction and 20% recycled content for all flexible packaging. Continue to optimize fibre packaging.

KPI 7 7.1 Evaluate Packaging No recycled 7.1.1 2015 Demonstrate recycled content Manager content currently 20% recycled other Product options for Procurement in flexible film content in flexible Stewardship flexible packaging. packaging by end Outcomes packaging. 2015.

7.2 Set annual Sustainability PEOPLE 7.2.1 Annually sustainability Department •Volunteering: 30% of employees targets under the Mills Over 20% engaged in our three pillars of employee volunteering Sustainability- participation. program. People, • Giving: Planet and Currently 7.2.2 Products. reviewing 10% of employees program to engaged in our measure ourselves giving program. against this target. Donated significant sums to charities via our giving and partnership 7.2.3 programs. Achieve a goal of • Safety: On track .8 or less – Achieved our recordable injuries best ANZ result per 200,000 hours yet with a 50% worked with a reduction in target of zero recorded injuries. recordable injuries

Sustainability PLANET 7.2.4 Achieve by 2015 - Department • Ethical Sourcing 100% fibre from Report Annually. Mills – Achieved goal Forest Stewardship of 100% fibre Council (FSC®) from Forest certified or Stewardship controlled sources. Council (FSC®) certified or 7.2.5 controlled Achieve a 30% sources. absolute reduction • Emissions - in carbon dioxide Achieved a 24% emissions from

10 KPIs Action Responsibility Baseline Performance goal timing absolute reduction FY11 levels. in carbon dioxide emissions from 7.2.6 FY11 levels. Zero manufacturing • Manufacturing waste to landfill by Waste – Diverted 2015. 95% of manufacturing waste from 7.2.7 landfill Improving water •Water Quality - quality of discharge water quality was from our Millicent tested and the Mill. clarifier to see if could be considered drinkable and passed all tests to meet The Australian Drinking Water Guidelines (ADWG) except for the detection of E.Coli. Packaging PRODUCT 7.2.8 Annually Sustainability Post-Consumer Reduce post- Departments Waste: consumer consumer products Mills product divisions impact on the have a program in environment by place. ensuring each division has an initiative in place.

7.2.9 Achieve 20% recycled or renewable content in all our plastic packaging and 10% reduction in the overall weight of flexible packaging.

Sustainability Office Waste 7.2.10 Annually Department While reducing By 2015 achieve Mills manufacturing reduction in our waste is our key paper usage from focus for waste, 2011 levels by we’re also 15%; and committed to reducing office 7.2.11 waste at our Implement head office in capability to Sydney, along measure office with our state paper waste sales offices reduction (via new across Australia printers). and New Zealand.

Sustainability Electronic waste 7.2.12 Annually Department recycling from increase electronic Mills current 120 waste recycling by

11 KPIs Action Responsibility Baseline Performance goal timing mobile phones and 10%. related accessories through a new partnership with Mobile Muster.

KPI 8. 8.1 Continue Sustainability Annual reports 8.1.1 Annually Reduce annual Department from Red Group Following the first Packaging in the subscription to detailing KCA year of litter stream the Red Group packaging participation in the recycling plastic collected and REDcycle packaging via recycled. Program, we are supermarket reviewing overall collection program data and points. are in the process of establishing a Annual review KCA specific meetings with performance red group. baseline and goals.

8.2 Include Packaging Packaging 8.2.1 Upgrade Annually RedCycle logo Manager disposal statement current on pack and clear is printed on all packaging disposal Packaging packaging information layout Disposal and include information on RedCycle logo and all packaging collection points website link. Increase kg of KCA flexible film collected and recycled by Red Group.

7. MANAGEMENT ENDORSEMENT

KCA’s APC Plan has been endorsed by Robbert Rietbroek, VP and Managing Director Kimberly- Clark Australia and New Zealand

APC Plan compiled by Frank Bova, Packaging Manager Kimberly-Clark Australia and New Zealand