Building on Our Vision for a Sustainable Future 2010 SUSTAINABILITY REPORT Table of Contents About This Report ..................................................................................4 Sustainability Overview: Evaluating Vision 2010..........15 Report Content.......................................................................................4 Measuring Our Success ....................................................................15 Report Boundary ..................................................................................4 Fresh Water Consumption ....................................................... ...17 Reporting Standards ..........................................................................4 Wastewater Quality ....................................................................... ...18 Internal Review .......................................................................................5 Energy Efficiency ............................................................................ ...18 Independent Assurance ..................................................................5 Carbon Emissions .......................................................................... ...18 Share Your Thoughts .........................................................................5 Solid Waste ......................................................................................... ...18 Forward-looking Information .......................................................5 Compliance with Environmental Regulations ....................19 Raising the Bar with Sustainability 2015 ..........................6 Understanding Our Governance and Ethics ....................22 Broadening Our Vision......................................................................6 Strengthening Our Sustainability Leadership ....................22 Involving Our Brands .........................................................................6 Sustainability Advisory Board ..................................................22 Message from Tom Falk, Chairman and Environmental Management Systems ...............................23 Chief Executive Officer ................................................................8 Upholding Our Code of Conduct ................................................24 A Legacy of Sustainability .............................................................8 Code of Conduct Survey .............................................................24 A Broader Sustainability Strategy ............................................8 The Code in Real Life .....................................................................26 Successes in 2010 ...............................................................................8 People ..................................................................................................................27 The Road Ahead ...................................................................................9 Essentials for a Better Life ...............................................................27 Message from Suhas Apte, Vice President, Engaging Our Employees .................................................................28 Global Sustainability ...................................................................10 Putting Input into Action ..............................................................28 Awards and Recognition ...............................................................11 A Powerful Process..........................................................................28 K-C Global Awards Map ..............................................................11 Investing in Our People ......................................................................32 Argentina......................................................................................... ...11 Unleashing the Power of Our People .................................32 Bolivia ................................................................................................ ...12 Attracting and Retaining Talent ...............................................33 Brazil .................................................................................................. ...12 Compensation ...............................................................................33 Central America ........................................................................ ...12 Benefits ...............................................................................................33 Chile .................................................................................................... ...12 Work-life Balance ........................................................................33 China .................................................................................................. ...12 Growing Professionally ..................................................................33 Colombia......................................................................................... ...12 Innovative Marketing Teams ..............................................33 Costa Rica ..................................................................................... ...12 Global Procurement Academy .........................................34 Ecuador ............................................................................................ ...12 Performance Management .................................................34 El Salvador .................................................................................... ...12 Recruiting Talent ................................................................................34 France ............................................................................................... ...13 Preparing Tomorrow’s Leaders ...............................................34 Guatemala ..................................................................................... ...13 Improving Employee Health and Wellness .....................35 Honduras ........................................................................................ ...13 Health Services ............................................................................35 Korea .................................................................................................. ...13 LIVEWELL .........................................................................................36 Latin America .............................................................................. ...13 Awards and Recognition .......................................................38 Panama ............................................................................................ ...14 Maintaining Employee Safety ........................................................39 South Africa .................................................................................. ...14 Implementing Our Safety Management System ........39 Spain .................................................................................................. ...14 Reviewing Vision 2010 Progress ............................................40 Thailand ........................................................................................... ...14 Our Zero-fatality Strategy ....................................................40 United States ............................................................................... ...14 Our 2015 Safety Goals ...........................................................41 1 Safety Compliance ....................................................................42 Communicating with Labor ........................................................68 Valuing Inclusion and Diversity .....................................................43 Protecting Children ..........................................................................68 Reaching Out to Diverse Groups ...........................................44 Collaborating with Our Suppliers on Sustainability.......69 Collaborating Internally .................................................................44 Strengthening Social Compliance ........................................69 Putting Our Brands to Work ...........................................................46 Welcoming Diverse Suppliers ..................................................70 Caring for Our Communities ...........................................................51 Managing Greenhouse Gas Emissions .............................70 Making an Impact Through Our Employees ..................51 Teaming for Sustainable Solutions .......................................71 Involving Employees in Sustainability ......................................52 Engaging Our Stakeholders ............................................................72 Biking for Life ........................................................................................52 Considering Stakeholder Concerns ....................................72 Taking Small Steps for Sustainability .................................53 Shareholder Returns ................................................................72 Putting Feet on the Street ...........................................................53 Health Care Customer Insights .......................................72 Measuring Employee Impact ....................................................53 Retail Customer Partnership .............................................72 Supporting the Well-being of Families ....................................54 Supplier Responsibility