1

Peggy Ward

March 2010

2

About Kimberly-Clark

• “Leading the world in essentials for a better life”

• More than 56,000 employees worldwide

• Manufacturing Facilities in 35 countries

• Sales in over 150 countries

3

Global

Company

4

A Long History of Innovation

Founded in 1872

Invented five of the eight

categories in which we

compete

Over 600 world-wide

patents for innovative

materials and products

2010 is our 138th year!

5

2009/2010 Recognitions

#1 Personal Care Products Leader

DJSI World - 5th Year!

Governance Metrics International – Best-in

Class corporate governance standards

#5 on 2010 Corporate Responsibility Officer

100 Best Corporate Citizens List

K-C China Most Admired Corporate Citizen

Most Admired Korean Company - 6th

– Korean Business Ethics Index 2008 - Excellent

Ethical Management

#9 on list of Fortune 500 companies using

green power

5

6

Hardwiring Sustainability into Your

Organization’s Business Strategy

7

A Business and a Social Responsibility

Why is sustainability

important?

Long-standing commitment to

corporate social responsibility

Good decisions for the

environment and society are

good decisions for our business

8

What is our approach to sustainability?

Fairly straightforward!

Identify and focus on activities that:

• Generate competitive advantage

• Improve business results

• Fulfill our responsibilities as a

member of the global community

9

Business Case for Sustainability

Enhancing Risk Management: A form of risk management, a way of

averting threats to a company's operations, products and reputation.

Eliminating Waste and Cutting Costs: The need for such cost-cutting

is intensifying, but the benefits of sustainability go beyond these savings.

Focusing Innovation: Companies are using their sustainability

programs to develop innovative products and find new consumer

markets.

Understanding Social Trends: Helps companies engage with their

local communities, where both their customers and employees live,

helping to understand their needs. It also allowed companies to maintain

their legitimacy – their “license to operate”.

Satisfying Consumer Needs: Providing products for consumers who

want to be sure that their purchases have been produced in a socially

and environmentally responsible fashion.

10

Our sustainability strategy has a clear focus

around 3 pillars

create sustainable brand

value for K-C corporate

and its global brands

STAKEHOLDERS

RESOURCE

STEWARDSHIP

BRANDS & PRACTICES

Improving the environmental

impact of products

Engaging and helping customers

and consumers in sustainability

Leading sustainable fiber sourcing

and re-forestation

Driving sustainable energy, water,

waste and packaging use

Achieve safety in our workplace

and social compliance in our

supply chain

Having positive impacts through

philanthropic giving and service

drive sustainable resource

management throughout

our supply chain

contribute to a sustainable

society through our own

practices and relationships

with communities

11

We aim to be a Sustainability leader in 2015

Recognized industry leader in sustainability, and viewed as a thought leader by customers & NGO‟s

Consumers prefer K-C brands, partly because of their sustainability credentials

K-C has reduced dependence on volatile commodities like pulp and energyIn

tern

al E

ng

ag

em

en

t

External Engagement

Sustainability

Leadership

Public

TrustCompliance

Eco-

Efficiency

Today

Yesterday

2015

12

Environmentally Improved Products

Industry surveys focusing on the use of

„green‟ household products have revealed

that as many as 86 percent of consumers

have expressed an interest, with 41

percent saying they are very interested in

using green products at home.

13

Reduce Today

Respect Tomorrow

• Awareness of sustainability

is growing among our B2B

customers

• K-C Professional has

launched “Reduce Today,

Respect Tomorrow”

marketing campaign

• Positions KCP as a partner

in sustainable practices

14

Up to 45% of materials

are potentially

biodegradable

Using less material with

the same level of

absorbency performance

50% more sheets per roll,

reducing deliveries to

customers and packaging

materials

Huggies Nature

Made Gold – Korea

Huggies Diapers

High Efficiency

Absorbent – U.S.

ANDREX Long

Lasting Bath

Tissue – U.K.

Product Innovations

15

SCOTT Naturals

80% 40%60%

• Long lasting packages

to help minimize

packaging and shipping

impacts

• Fast Absorbing Ridges

• 20% recycled

packaging

• Long lasting rolls to

help minimize

packaging and shipping

impacts

• Choose-A-Size™

sheets

• 2-ply sheets

• 20% recycled

packaging

• Long lasting rolls to

help minimize

packaging and

shipping impacts

• Fibers derived

from sustainable

resources

• Natural Aloe Vera

• No Alcohol

• Free and clear of

dyes

Post consumer recycled fiber content

16

17

Waste and wastewater.

Energy and greenhouse gases.

Manufacturing waste reduction and landfill elimination.

Design for the environment.

Emerging countries.

We have made significant

environmental improvements

over more than a decade

through our well-established

Environmental Vision program

Through Vision 2010 we will reduce

annual operating costs by $80 million

or more, enabling K-C to achieve its

Global Business Plan.

18

Environmental Stewardship

2009 By The Numbers

98

13

24 % of our energy needs met by renewable fuels

% wood fiber K-C used worldwide from

certified suppliers

Million cubic meter decrease since 2008 in water

use

3.7 % improvement in energy efficiency vs. 2005

19

Get educated! Read – sustainability topic is

everywhere.

Adopt “Design for Environment” mentality

Take a Small Step

What can you do?

20

Thank you !