SUSTAINABILITY REPORT KIMBERLY-CLARK 2017 Essential for a better life

Our Approach and Results

SUSTAINABILITY REPORT KIMBERLY-CLARK 2017 Essential for a better life

Our Approach and Results

Our products for a better life are used by almost 25% of the world population everyday through our brands Neve, Huggies, Kleenex, Scott, Intimus and Plenitud.

Of 2,1 million people in a situation of social vulnerability:

Increase on the leadership of our brands beyond functional and emotional benefits:

Support to communities in the surroundings of our units through social and volunteer investments.

Alignment with the social programs and the brand’s commitment of creating a sustainable social impact, increase the value of the brand and performance on retail and deliver benefits on the supply chain.

Measurement of the business and social impact through performance indicators and utilization of our knowledge to escalate the programs with higher impact. .

SUSTAINABILITY REPORT KIMBERLY-CLARK 2017 Essential for a better life

Our Approach and Results

We are proud that the main environmental groups of the world acknowledge Kimberly-Clark as a market leader on responsibly delivering fibers and protecting forests. However we know about the need of more work to direct additional improvements.

Reach 90% of environmentally recommended fibers.

Increasing the leadership through the replacement of native forests for EPF* (Environmentally-preferred fibers) on the paper products of the world. In Brazil, 100% of the products made out of cellulose already come from renewable sources through the FSC seal.

Expansion of responsible delivery practices for packages made of fibers.

Engagement of clients and consumers through the lead of brands, retail execution and partnerships.

Continuity of 100% of the virgin wood fibers delivery for our products, from certificated sources and packages made of fibers.

Reduction on the usage of native forests fibers in 50% and increase on the use of EPF to 90% in paper tissues worldwide.

Deliver sustainable innovations in fibers to reduce our use of fiber from native forests.

Commitment to the ‘Consumer Goods Forum’ of zero liquid deforestation until 2020.

*Includes FSC – Forest Stewardship Council – virgin certificated fibers, recycled fibers and natural sustainable fibers on paper tissues. Natural forests are native forests that contain key elements of ecosystems such as wildlife and biological diversity. For us, it mainly includes boreal fibers known as Northern Bleached Softwood Kraft (NBSK).

SUSTAINABILITY REPORT KIMBERLY-CLARK 2017 Essential for a better life

Our Approach and Results

We have developed programs for energy conservation and use of alternative energy, reduced the emission of gases that contribute to the greenhouse effect of our operations and transformed our financial performance to minimize the climatic change impact.

Reduce at 13% emission of greenhouse effect gases.

Reduction in the emission of GEG (greenhouse effect gases) directly from the operations (scope 1) and indirectly from the energy consumption (scope 2).

Evaluation of the GEG emissions from the value chain.

Energy Conservation: reduction in the emission of GEG and cost reduction through the LEAN Energy application and standards and efficiency practices in the operations.

Alternative Energies: reduction in the emission of GEG through the substitution of low carbon emitter fuels (E.g. natural gas, biomass and renewable energy).

Energy Delivery: energy delivery management to optimize the price and cost prediction of our operations.

SUSTAINABILITY REPORT KIMBERLY-CLARK 2017 Essential for a better life

Our Approach and Results

Thinking differently to find the value on waste.

Keep 10,800 tons of products and packages out of landfills.

Year Target 2017

Migrate 100% of the manufacturing and post-consumption waste from landfills for a more important usage.

Year

Target

2017

Generate R$ 5 million with The selling of residues.

Using materials in an efficient way in the design and manufacturing process.

Manufacturing and post-consumption waste deviation from landfills for a more important usage.

Improvement on consumer’s education about disposal options.

Search for innovative ways to create a value chain that are mutually beneficial for us and our partners.

Adoption of design principles of the lifecycle and optimization to the liquid reduction of weight and innovation in materials.

Increase of the liquid value of recycling on our operations in 10% every year while we avoid sending manufacturing waste to landfills.

Identifying and applying solutions to avoid and / or deviate 150.000 tons of manufactured products and packages to landfills after usage.

SUSTAINABILITY REPORT KIMBERLY-CLARK 2017 Essential for a better life

Our Approach and Results

Create value through a sustainable supply chain.

Stablish a pledge with human rights, work safety, anti-corruption and environment protection, focusing on the water theme, for K-C and its chain.

Year Target 2017

Reach the environmental Compliance goals in 95% of the plants.

Social and environmental Compliance: work with key suppliers to achieve our standard performance in human rights, working rights, work safety, anti-corruption practices and environmental protection.

Risk Management: assure that all products and materials we purchase are from trackable, resilient, and sustainable sources; assure a better interruption prediction and prevention in the business (E.g. water).

Value and innovation: direct sustainability innovation through collaboration with our supply chain partners to generate value and resilience for Kimberly-Clark and its clients.

Implementation and improvements on our Social Compliance Corporate Program to monitor units and the key suppliers’ performance for our work environment and human rights standards.

Perform Environment, Healthcare, and Safety audits to ensure that the units’ performance is accordingly to the environmental and safety standards, as well as checking the maturity of the Environment Management, Healthcare, and Safety Systems.

Investing in water programs internally and externally to the operation unit, aiming at the sustainable access of this resource for the business as well as for the society.

Invest in water treatment and reuse technologies and stablish partnerships to support communities in regions with water stress.

Search for partnerships with added value to the supply chain.