Building On Our Vision For A Sustainable . - Kimberly-Clark
Building on Our Vision fora Sustainable Future2010 SUSTAINABILITY REPORT
Table of ContentsAbout This Report. .4Report Content.4Report Boundary.4Reporting Standards.4Internal Review.5Independent Assurance.5Share Your Thoughts.5Forward-looking Information.5Raising the Bar with Sustainability 2015.6Broadening Our Vision.6Involving Our Brands.6Message from Tom Falk, Chairman andChief Executive Officer. .8A Legacy of Sustainability.8A Broader Sustainability Strategy. .8Successes in 2010. .8The Road Ahead.9Message from Suhas Apte, Vice President,Global Sustainability.10Awards and Recognition.11K-C Global Awards Map.11Argentina. .11Bolivia. . .12Brazil. .12Central America. .12Chile. . .12China. .12Colombia. .12Costa Rica. . .12Ecuador. .12El Salvador. .12France. .13Guatemala. .13Honduras. .13Korea. . .13Latin America. .13Panama. .14South Africa. .14Spain. .14Thailand. .14United States. .14Sustainability Overview: Evaluating Vision 2010.15Measuring Our Success.15Fresh Water Consumption. .17Wastewater Quality. .18Energy Efficiency. .18Carbon Emissions. . .18Solid Waste. .18Compliance with Environmental Regulations.19Understanding Our Governance and Ethics.22Strengthening Our Sustainability Leadership.22Sustainability Advisory Board. .22Environmental Management Systems.23Upholding Our Code of Conduct. .24Code of Conduct Survey.24The Code in Real Life. .26People. .27Essentials for a Better Life. .27Engaging Our Employees.28Putting Input into Action.28A Powerful Process.28Investing in Our People.32Unleashing the Power of Our People.32Attracting and Retaining Talent.33Compensation.33Benefits.33Work-life Balance. .33Growing Professionally.33Innovative Marketing Teams.33Global Procurement Academy. .34Performance Management.34Recruiting Talent.34Preparing Tomorrow’s Leaders. .34Improving Employee Health and Wellness.35Health Services.35LIVEWELL.36Awards and Recognition.38Maintaining Employee Safety.39Implementing Our Safety Management System.39Reviewing Vision 2010 Progress.40Our Zero-fatality Strategy.40Our 2015 Safety Goals.411
Safety Compliance.42Valuing Inclusion and Diversity. .43Reaching Out to Diverse Groups.44Collaborating Internally.44Putting Our Brands to Work.46Caring for Our Communities.51Making an Impact Through Our Employees.51Involving Employees in Sustainability. .52Biking for Life.52Taking Small Steps for Sustainability.53Putting Feet on the Street. .53Measuring Employee Impact.53Supporting the Well-being of Families. .54Improving Families. .54Improving Child Survival Rates.54The Urban Platform Project.55Improving the Lives of Our Own Employees.55Mobilizing Communities.56Employee Volunteer Days.57Partnering for a Better Future.57Clean Water and Sanitation in Indonesia. .58Improving Access to Health Care. .59Delivering Supplies to Hospitals.59Teaching Hand Hygiene.60Providing Community Care.60Giving from the Heart. .60Supporting Education.61Advancing Health Care Education in Australia.61Boosting Literacy Skills.61Demonstrating Sustainability.61Providing Job Skills Training.62Funding Environmental Stewardship.62Aiding Disaster Victims.63Caring for Haiti’s Homeless.63Rebuilding in Chile. .64Ensuring Essentials in Queensland.64Cleaning up in the Gulf of Mexico.65Responding to Drought and Earthquake in China. .65Fostering Bright Futures.66Strengthening Human Rights. .67Upholding Social Compliance Standards. .67Supporting Workplace Equality.68Communicating with Labor. .68Protecting Children.68Collaborating with Our Suppliers on Sustainability.69Strengthening Social Compliance.69Welcoming Diverse Suppliers.70Managing Greenhouse Gas Emissions. .70Teaming for Sustainable Solutions. .71Engaging Our Stakeholders.72Considering Stakeholder Concerns.72Shareholder Returns.72Health Care Customer Insights.72Retail Customer Partnership.72Supplier Responsibility.72Union Communication.73Fiber Sourcing Standards. .73Natural Forest Preservation.74Forest Management Issues.74Trade Associations.75Supporting Local Economies.76Fostering Professional Practices in Brazil’sWaste Pickers.76Finding Value in Waste.77Investing in Russian Industry.78Planet.79Essentials for a Better Planet.79Announcing Our New Climate Change Goal. .80Reaching Our Sustainability 2015 Goals.80Renewable Energy.81A Green Power Partner.82Making Strides toward a Greener Supply Chain.83Working Together for Sustainable Delivery. .83Managing Our Energy Use. .85Protecting Water Resources. .91Using Less Fresh Water.92Providing Cleaner Wastewater.93Enhancing Our Wastewater Standards.93Ensuring Safe Water and Sanitation.94Reducing Waste. .98Building on a Decade of LandfillFree Momentum. .99Making Tough Choices.99Reducing Post-consumer Waste. 1012
Diaper Composting. 101Sterile Wrap Reprocessing. 102Sterile Wrap Recycling Options. 102Promoting Sustainable Fiber Practices. . 104Committing to Responsible Sourcing. 105FSC-certified Tissue. 105Why We Prefer FSC Certification. 107Addressing the Challenge of Recycled Fiber. 107Creating Market Support for FSCcertified Products. 107Achieving Our Vision 2010 Goals. 109Reforesting Communities Worldwide. 112Keep Korea Green. 112Products. 114Essentials for a Better Business. . 114Establishing Greener Goals for Products. 116Creating Green Innovations. 116Eco-friendly Home Solutions. 117Newer, Greener WypAll Wipers. 118Emerging Markets. 119Reducing Packaging Impact. 120Transforming Milk Jugs to Packaging. . 121Supplying Waste-reducing Packaging. 122Shaping Packaging Policy. 123Providing Sustainability in Health Care Products. . 124Engaging with Medical Specialists in Australia. 124Demonstrating Leadership in Glove Packaging. 124Delivering Product Environmental Innovation. . 125Introducing Our ecoLOGICALMeasurement Tool. 125Focusing on “Reduce Today,Respect Tomorrow”. 127Refining the Science of Consumption. 128Collaborating on ProductSustainability Activities. . 130Ensuring Product Quality and Safety. 131Encouraging Non-animal Test Methods. . 131Providing Consumers Access toSafety Information. 132Implementing European CommissionRegulatory Framework. . 1322010 Data Summary. 133GRI Index. 1361. Strategy and Analysis. 1362. Organizational Profile. . 1363. Report Parameters. 1374. Governance, Commitments,and Engagement. . 138United Nations Global Compact Index. . 150Our Commitment. 150Anti-corruption. 153Independent Assessments. 154Letter from Sustainability Advisory Board. 154Positive Attributes. 154Opportunities for Improvement. . 155Letter from Two Tomorrows. 156Scope and Objectives. 156Responsibilities of Kimberly-Clark Corporation’sDirectors and of the Assurance Providers. 156Basis of Our Opinion. 156Findings. 157Observations. . 1573
About This ReportThe Kimberly-Clark Corporation 2010 Sustainability Report, Building on OurVision for a Sustainable Future, is written for our employees, governmentaland non-governmental organizations, consumers, customers, shareholders,business partners, community members and others with an interest in ourapproach to corporate citizenship. It details our progress since our previousreport and outlines our future commitments.Report ContentOur report content and structure are based on our recently revised sustainability strategy, which organizes our activities in three key areas or pillars: People, Planet and Products. More information about these pillars is available in ourCEO Letter and our Sustainability 2015 Strategy Overview.More detailed information about our performance in various markets can be found in sustainability reports preparedby Kimberly-Clark Argentina, Yuhan-Kimberly, Kimberly-Clark Australia and Kimberly-Clark Brazil.Report BoundaryData in this report covers the period from January 1, 2010, through December 31, 2010, with select content throughMarch 31, 2011. This is the eighth Sustainability Report for Kimberly-Clark’s worldwide operations. We publishreports on an annual basis; our previous report was published in April 2010. Unless otherwise noted, it covers ourworldwide consolidated (wholly- and majority-owned) operations. Financial information is given in U.S. dollarsunless otherwise stated.Reporting StandardsThis report was prepared using the Global Reporting Initiative’s (GRI) G3 Reporting Guidelines, which provide a standardframework for organizations to report on their social, environmental, governance and economic performance. Webelieve this report achieves a self-declared GRI Application Level B . For more information see our GRI StandardDisclosures and the Index to all Performance Indicators. More information on the G3 Reporting Guidelines andapplication levels is available at the GRI website.We draw on guidance from the Greenhouse Gas Protocol for our carbon reporting. Environmental measurement andcalculations are based on data from the Kimberly-Clark Sustainability Database, which houses environmentaland production data for all of our global manufacturing facilities and offices. Data is collected quarterly from eachof these locations.4
Internal ReviewOur content has been thoroughly reviewed by the Kimberly-Clark Sustainability Reporting team, internal subjectmatter experts, and our Legal and Internal Audit teams to ensure that reported data is accurate.Independent AssuranceTwo Tomorrows (North America) Inc., an international corporate sustainability agency, conducted a comprehensiveassurance process using AAA 1000AS (2008) to evaluate the materiality, completeness and responsiveness of ourreporting. They provided a letter of assurance and detailed recommendations that we considered during thepreparation of this report.Share Your ThoughtsWe welcome your comments and suggestions for our future reporting. Please contact us at: Kimberly-Clark CorporationDept. KCSRP.O. Box 2020Neenah, WisconsinUSA 54957-2020800-331-3422 (within the United States and Canada)920-721-8355 (outside of the United States and Canada)Email: sustainability@kcc.comFor questions regarding this report or Kimberly-Clark’s sustainability programs, please contact: Suhas ApteVice President, Global SustainabilityEmail: sustainability@kcc.comForward-looking InformationThis publication may contain forward-looking information within the meaning of the U.S. federal securities laws.In light of the risks and uncertainties involved, you should read the risk factors and forward-looking informationsections of Kimberly-Clark’s fiscal year 2010 Form 10-K. C opyright Kimberly-Clark 2011All rights reserved.5
Raising the Bar with Sustainability 2015Sustainability 2015 is a vital part of achieving our Global Business Plan.Building on the successes of Kimberly-Clark’s (K-C’s) three previous Vision programs, K-C is launching Sustainability2015, our most ambitious and comprehensive sustainability program to date. K-C first embarked on this sustainabilityjourney in 1994 with the Vision 2000 program, and for 15 years we’ve been setting and working toward environmentalimprovement goals. Vision 2010 and its predecessors were primarily focused on environmental performance anddriven by K-C operations.Broadening Our VisionToday, global corporations face increasing costs and regulation, amid diminishing resources, to support a burgeoningpopulation. To meet these heightened challenges, we’ve broadened our vision.Our Sustainability 2015 strategy revolves around the three pillars of sustainability: people, planet and products. P eople—Ensure that our business practices are beneficial to our employees and the communities where weoperate and market our products P lanet—Use sustainable environmental practices to ensure our ability to grow under constrained globalresources Products—Innovate products and business models to reach emerging customersInvolving Our BrandsSustainability 2015 is a vital part of the roadmap for achieving our Global Business Plan. It is a plan for action withmeasurable goals that leverages the power of our global brands and businesses to address the full spectrum ofglobal sustainability issues.Working collaboratively with our global business units, we’ve established 2015 targets that we need to achieve sothat we can make strides in our sustainability journey. We’ve carried over appropriate goals from Vision 2010 wheresignificant opportunities to advance our agenda remain. Achieving these goals involves a renewed commitment toexcellent environmental performance.The goals set forth in Sustainability 2015 are ambitious but achievable. It’s the choice we’ve made as we strive tolead the industry in providing essentials for a better life.6
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Message from Tom Falk, Chairman and Chief Executive OfficerA Legacy of SustainabilityAt Kimberly-Clark, we believe that what’s good for business must also be good for the environment and the interestsof the people we serve every day. That firm conviction has guided our organization for nearly 140 years. We willcontinue to focus on our strategy for sustainable growth, having long recognized that sustainability offers businessadvantages that can make our company stronger.Sustainability is an essential part of how we operate. We can—and must—meet present needs while also consideringthe needs of future generations. The values woven deeply into the K-C culture influence all of our thinking and actionsfrom the goals we set to our approach for solving challenges. For us, sustainability is about making a positive impacton the world today, with respect for the generations of tomorrow.A Broader Sustainability StrategySustainability is becoming increasingly important to all of our stakeholders. The sustainability movement is gainingmomentum as more companies around the world implement initiatives centered on environmental practices. K-Chas introduced many environmental best practices and is driving important changes in others.The good news is initiatives like these are becoming commonplace. Most companies now have environmentalimprovement programs in place. So, companies at the forefront of sustainable practices are now expanding theirefforts to better address the social responsibility of their supply chain, increase employee engagement insustainability and address the social needs of consumers.That’s why we’re launching a broader strategy that includes long-term goals to address the social, environmentaland economic aspects of sustainability. Sustainability is more than being “green” or eco-friendly. It’s about being agood steward of our environment and about how we care for our people and how we serve our communities. Wemust think about future generations and meet the pressing social and economic needs of emerging countries.Successes in 2010During the past year, K-C found many ways to leverage sustainability as a competitive business advantage,for example: We completed Vision 2010, our third set of five-year voluntary environmental goals, and met many of theenergy and water management goals while making significant progress toward others. Many of our mills improved energy and water-use efficiency. For example, our mills in Rouen, France, andNiederbipp, Switzerland, have further reduced their fresh water use. This accomplishment is especiallyimpressive considering that these mills were already well below the established benchmark and have beenbelow the benchmark since the inception of the Vision 2010 program.8
We developed socially focused programs as we strive to make a positive contribution to society:– Our Huggies Every Little Bottom program encouraged consumers and diaper banks to donate anddistribute 22.5 million diapers to needy families in the U.S. and Canada.– We engaged with more stakeholders including United Nations Global Compact, World Wildlife Fund,Greenpeace and others to gain fresh perspectives. By uniting forces with these thought leaders, we’reidentifying more ways to create a better future for us all. Through product innovation and the power of our brands, we’re creating sustainable solutions for ourconsumers and customers:– We launched Scott Naturals Tube-Free bathroom tissue. Eliminating the tube holds the potential ofkeeping millions of pounds of paper waste out of U.S. landfills.– K-C introduced Scott Naturals Smart Flush bag, a product to help consumers conveniently reducewater use associated with toilet flushing, saving one liter per flush.For all of our global social and environmental efforts, we have been recognized by leading organizations and rankings.For the eighth consecutive year, K-C was listed on the FTSE4Good Index, a series designed to measure companyperformance against globally recognized corporate responsibility standards. In Korea, Yuhan-Kimberly wasnamed the most socially responsible company by Korean Management Association Consulting. We were named a2010 ENERGY STAR Partner of the Year by the U.S. Environmental Protection Agency for the second year, and weplaced No. 5 in the “Best Corporate Citizens” by Corporate Responsibility Magazine. A number of our operations inLatin America were also rated highly in their countries for social responsibility efforts or as great places to work.Our achievements around the world are detailed in the Awards and Recognition section of the report.The Road AheadWe celebrate these successes because they confirm the quality of the work we do. But, for all the progress we’vemade, much remains to be done. We must continue building on our commitment for a sustainable future.Working together, I’m confident that K-C will continue to achieve sustainable growth, create value for our shareholders and responsibly manage our planet’s resources. It’s all part of how K-C will deliver on our vision to lead the worldin essentials for a better life.Tom FalkChairman and Chief Executive Officer9
Message from Suhas Apte, Vice President, Global SustainabilityThis past year was a time to both reflect on the past and envision the f
by Kimberly-Clark Argentina, Yuhan-Kimberly, Kimberly-Clark Australia and Kimberly-Clark Brazil. RepoRt BoundaRy Data in this report covers the period from January 1, 2010, through December 31, 2010, with select content through March 31, 2011. This is the eighth Sustainability Report for Kimberly-Clark’s worldwide operations. We publish
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