How to use this document This interactive PDF features navigation and links to further content. For the best experience view in Adobe Acrobat. Click the arrow to get started… About This Report Contents We are proud to present our 13th A message from Tom Falk 03 Sustainability Report, which provides an annual update on the progress we have An update from Lisa Morden 04 made toward our overarching sustainability strategy and introduces our new seven- 2015 Highlights 05 year sustainability goals for 2022. About our 2022 Strategy 06 This year, our reporting is comprised of two documents: First, this report Social Impact 07 highlights stories from our teams and Making lives better by improving partners around the world, demonstrating social and physical wellbeing in the impact we are making on the future communities around the world of our planet and our communities; the second document here summarizes key Forests & Fiber 12 data and metrics in accordance with Harnessing innovations to reduce the Global Reporting Initiative (GRI) our impact on natural forests G4 “Core” level. Waste & Recycling 15 For questions regarding the content Setting our sights on zero waste of this report, please contact us at [email protected]. Energy & Climate 18 Committing to increase our energy efficiency and use of alternate energy sources each year Supply Chain 21 Building powerful partnerships to create a leading sustainable and responsible supply chain 2 Kimberly-Clark 2015 Sustainability Report A message from our CEO Thinking ahead for a better tomorrow Sustainability has been central to Kimberly-Clark since we began operation more than 140 years ago. Throughout our history, we’ve continuously improved how we operate and embed sustainable practices into our business. We have set and achieved formal, long- range goals for the last 20 years, and will continue to set the bar high, so our consumers, customers and other stakeholders are aware of our efforts to make a positive impact around the world. Ultimately, we strive to deliver on our value of caring for the communities where we live and work – so the environment around us and the people we serve will have a brighter future. Tom Falk Chairman of the Board and Chief Executive Officer 3 Kimberly-Clark 2015 Sustainability Report Challenged to be our very best When we first set out to achieve our 2015 sustainability program in 2010, we knew it marked a shift in our thinking. We pushed ourselves to look beyond the responsibility of our operational footprint into other areas throughout the value chain. We’ve forged stronger partnerships across our own teams and with customers, suppliers, business partners and nongovernmental organizations to achieve our goals. Integrating sustainability – in its multiple facets – into the business is about realizing where the intersection of the world’s social and environmental challenges meet K-C’s business imperatives. Our long-term business success depends on it. As we embark on another transformative shift with our Sustainability 2022 strategy, we will be relentless in our efforts to drive value and innovation, backed by the commitment of our teams around the world. LISA MORDEN senior director, global sustainability 4 Kimberly-Clark 2015 Sustainability Report Socially-focused total global donations and Highlights programs exist in community investments: of all our $29 million 97% communities accounting for 2.9% of our net income to OVERALL 10 year 7% more 75% Performance partnership in 2006 than in 2015 with the Forest Stewardship Council® We’ve increased the amount of Exceeded (FSC®) to end deforestation and FSC®-certified virgin fiber in our safeguard forest ecosystems tissue products from 7% in 2006 to more than 75% in 2015 $18.5 Recovered packaging Diverted materials are billion of manufacturing converted into quality in Net Sales waste from recycled-plastic 95.6% landfill products for schools in 2015 and/or communities as of December 2015 around the world Awarded EPA Climate Reduced absolute Leadership award GHG emissions by for excellence in 7.2% greenhouse gas exceeding 5% target management Exceeded the 25% water Zero fatalities and use reduction goal total Reportable reduced Incident by with a 27% Rate (TRIR) reduction rate from 2010-2015 50% 5 Kimberly-Clark 2015 Sustainability Report In 2022, Kimberly-Clark will have With the commitment of our been in business for 150 years – and 43,000-strong team and global About our as we pave the way for another partnerships, together we will 150 years, sustainability must be at make these goals a reality. 2022 strategy the heart of our business strategy. O O O Sy Ps 2022 G Improve the million people well-being of25 IN NEED ValUE COM­ITmENt Innovate our tissue products We strive to create Our priorities to reduce their natural both social and and goals are forest footprint by 50% financial value informed by WHO we serve, WHAT we do & HOW we do it extend waste OUR zero MINDSET 20% Reduction INOVATn in greenhouse We work together to foster innovative gases ideas and pursue long-term change UPHOLD our CM­ITmENt TO HUMAN RIGTS, WOrKER sAFeTY, ANTI-CORUPN & enviromENtal proecTiOn OUR visIon to lead the world in esNtalS for a betr lif 6 Kimberly-Clark 2015 Sustainability Report improving social and physical well-being in communities around the world. 2015 Achievement 2022 Goal Improve the well-being of 97% 25 million people Socially-focused Through social and programs exist community investments that increase access to in 97% of K-C sanitation, help children thrive and empower communities women and girls. 7 Kimberly-Clark 2015 Sustainability Report Did you know that one in three people around the world don’t have access to safe, clean sanitation facilities? Toilets Besides the health implications, the issue of sanitation is also a social one. Many women and girls are forced to wait until dark, when it may be unsafe, just to have privacy. And many girls stop going to school once they Change reach puberty due to the lack of adequate facilities. Through our Toilets Change Lives program, our bath tissue brands – Andrex, Scott and Cottonelle – in partnership with non-profit organizations are connecting with consumers, customers and employees lives to help improve sanitation conditions for people around the world. Our brands are drawing attention to the important social issue of sanitation. In the U.S., our Cottonelle brand launched a new campaign with Water For People to raise funds and awareness around the lack of basic sanitation for families worldwide. And we’re partnering with Charities Aid Foundation in India to fund sanitation programs in schools and early child development centers. Our Scott brand partnered with Water for People in Bolivia For a third year in the U.K., to bring sanitation services our Andrex brand is partnering to the communities it serves. with UNICEF and retailer Sainsbury’s to empower communities in Angola to build their own toilets. 8 Kimberly-Clark 2015 Sustainability Report Photo: © UNICEF/UNI106376/Pirozzi Key material issue – Access to sanitation infrastructure Huggies has donated more than 160 million diapers since 2010 Closing the This is equal to 1 month of assistance to 3.2 million diaper divide children or a year of Our Huggies brand helps get diapers assistance to more than to babies and families in need. 265,000 children. In 2010, our Huggies brand brought the issue to the Huggies helped found NDBN in response to this need. “ In the United States, many families forefront through the Every Little Bottom study, which The nationwide non-profit helps ensure that every struggle to provide the essentials revealed that one in three parents were struggling to child in the U.S. has enough diapers to be clean, their babies need, like diapers.” provide fresh, clean diapers for their babies. dry and healthy. Huggies announced in 2016 it would donate “The choice between diapers and other necessities such 22 million diapers through the National Diaper as healthy food and shelter is a difficult decision that no Bank Network (NDBN). family should be forced to make,” said Joanne Goldblum, Executive Director National Diaper Bank Network. “We want every baby to grow up healthy and feel “Kimberly-Clark’s partnership is making it possible for comfortable, safe and secure,” said Giusy Buonfantino, us to help more families provide a basic need to care Baby and Childcare President for North America. for their children.” “Anyone who has had a child knows that diapers contribute to babies’ wellbeing, but they can also be a big cost. So we knew we had to do something to help.” Giusy Buonfantino Baby & Childcare President for North America 9 Kimberly-Clark 2015 Sustainability Report Key material issue – Customer Satisfaction Mothers 13 Million Kenyans exposed Against to mothers against malaria Malaria campaign messages We’re partnering with Malaria No More and mothers in Kenya to help babies to thrive. Photo: Malaria No More We know that millions of parents throughout Africa We also reached mothers through in-store promotions “ Inspired by our vision to lead the trust our Huggies brand of diapers to keep their where we gave away treated mosquito nets and world in essentials for a better life, babies dry and clean, which also means happy and educational materials about malaria prevention to healthy. But mosquito-borne diseases like malaria people shopping for diapers. Working together with we’re motivated to help babies thrive threaten their safety. local partners and, most importantly, mothers, we’ve been able to help babies thrive. in communities around the world.” Since 2014, we’ve been working with Malaria No More, a global organization determined to end deaths “With Kimberly-Clark’s support, Mothers Against from malaria, starting with mothers and babies in Malaria has given mothers in Kenya the information Kenya where more than three-quarters of people are and resources they need to protect their families,” at risk.