Global Sustainability Report 2020 - Kimberly-Clark ...
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Smallest Environmental Making Our Strategy for the Our Business Leadership Footprint Lives Better Decisive Decade in 2020 Message 2020 Global Report Sustainability
3 15 Leadership Table of Message A Message from Mike Hsu Making Lives Better Social Impact Contents 4 A Message from Lisa Morden Caring for Our Community Our Business Inclusion & Diversity in 2020 5 Talent Development Our Business in 2020 Human Rights & Ethical Practices Our Business Ingredients & Transparency Our Strategy for the Responding to COVID-19 Product Quality & Safety Decisive Decade Leading Through Social Unrest Environmental, Health & Safety 9 40 This report portrays Kimberly-Clark's progress through stories that highlight our work around the world as well as key data and metrics, prepared in Our Strategy for the Decisive Decade Smallest Environmental Footprint accordance with the Global Reporting Initiative (GRI) Sustainability Reporting Standards “Core” level. Our reporting time frame covers January 1 through December 31, 2020. Our Strategy Plastics Footprint Lives Better Legal Notice; Forward-Looking Statements Forest Footprint Making Focusing on What’s Essential All statements in this report that are not historical, including goals for and projections of future results, the expected execution and effect of our Driving Benefit Across Our Value Chain Carbon Footprint sustainability strategies and initiatives and the amounts and timing of their expected impact, constitute forward-looking statements that are based Our Goals and Progress Water Footprint on management’s expectations and beliefs concerning future events impacting the company. Many factors outside our control, including Smallest Environmental competitive pressures, evolving legal and regulatory requirements, and societal and market conditions globally and in the markets in which we do business, could cause actual results to vary. There can be no assurance that these future events will occur as anticipated. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to publicly Footprint update them. Please see Kimberly-Clark’s latest Annual Report on Form 10-K and subsequent SEC filings for a discussion of risk factors as they relate to forward-looking statements. For more detailed data, metrics and disclosures, see the 2020 Sustainability Report Addendum.
Living Our Values Leadership Message A Message from Mike Hsu A Message from Mike Hsu A Message from Lisa Morden Our Business Reflecting on the past year, I am incredibly proud of how This sense of purpose is at the core of our ambitious in 2020 Kimberly-Clark and our people responded in a powerful way sustainability strategy, which we introduced last year: to uplift when the world needed us the most. the lives and well-being of 1 billion people around the world by 2030, with half the environmental footprint in the areas The health and safety of our employees has been and remains where we can make the biggest difference – climate, forests, Our Strategy for the our priority. We took swift action to protect our teams at the water, and plastics. Decisive Decade outset of the COVID-19 pandemic to keep our people and their families safe and healthy. We prioritized care for our We know the hard work is still ahead of us. Yet, the employees so we could provide the essential products that conversation around sustainability is changing, and growing the world was counting on. for good means that we must be bolder and act faster to address the social and environmental challenges facing our As the world's focus expanded beyond the pandemic to consumers, our communities, and the planet. In setting these include social and racial injustice, our values dictated how goals for ourselves, we believe we are futureproofing our we would use the strength of our culture and trusted brands business for generations to come. Lives Better to advocate for and promote inclusion, drive diversity, and Making disrupt bias - at first with our employees around the world, This year’s report showcases the incredible response from our and later in the communities where we live and work. teams to an extraordinary year, and it reflects how we live our purpose every day. These once-in-a-lifetime events forced us to both embrace and redefine how we care for each other, our customers, Mike Hsu Smallest Environmental our consumers, our communities, and our planet, and they Chairman, CEO, and Proud Employee affirmed a shared purpose for our company that was not fully Kimberly-Clark realized until the pandemic required a singular focus on care. Footprint
The Essentials for a Safer, Leadership Message Healthier World A Message from Mike Hsu A Message from Lisa Morden Our Business A Message from Lisa Morden in 2020 The past year presented previously unimaginable Amidst this backdrop, we launched Kimberly- progress—and the impacts, including those driven Our Strategy for the challenges that put health and safety at the forefront Clark’s 2030 ambitions, aimed at improving by climate change, are far-reaching. Thousands of Decisive Decade while illuminating social and environmental gaps the lives of 1 billion people in underserved women and girls miss school and work every day that still need to be bridged. For Kimberly-Clark, it communities around the globe. With a since they lack access to clean, safe toilets and reminded us how closely we are all connected, and commitment to reducing our environmental are unable to manage their periods. of the urgency of the work ahead to achieve our footprint by 50% over the coming decade, we're environmental, social, and governance goals. focused on the areas where we can make the This year’s report shares how our teams cared greatest difference, including climate, water, for each other, our consumers, our communities, The safety of our people has remained our top forests, and plastics. and the planet. Further, our experiences priority, and we have taken extra precautions have taught us that we can move quickly to Lives Better across our global operations to keep employees Kimberly-Clark is using its unique position to help achieve incredibly challenging goals and that Making and their families safe while ensuring that address these challenges and drive initiatives an unwavering focus on health, safety, and consumers have continued access to our that support the United Nations Sustainable sustainability can illuminate ways of working essential products. Development Goals for good health and well- with purpose and urgency. being, gender equality, and clean water and The COVID-19 crisis has also increased awareness sanitation as well as life on land, climate, and life We look forward to keeping you posted Smallest Environmental of the complex relationship between humans and below water. on our progress. the world around us, and the critical connection between health, safety, and sustainability. Our work also serves to tackle longstanding social Lisa Morden Preserving natural resources and improving public inequities. The lack of basic sanitation for 1-in- Vice President, Safety, Sustainability, Footprint health and hygiene are essential to helping people 4 people around the world makes communities and Occupational Health lead safer, healthier, and better lives. less resilient to disease and impedes economic
Leadership Message Our Business Our Business in 2020 in 2020 Our Business Responding to COVID-19 Leading Through Social Unrest Our Strategy for the Decisive Decade Our essential heroes responded to the strain of 2020 with incredible care for each other, our consumers, and communities around the world. The year brought a series of profound disruptions—to our people and operations, our consumers, and our value chain— highlighting greater social issues in the process. The COVID-19 pandemic tested our resilience, both as individuals and as a business committed to helping people Lives Better live better lives. The demonstrations that erupted in late Making May spotlighted longstanding social inequities around the world and challenged us to chart a better, faster, and more comprehensive way forward. The urgency of these obstacles brought a renewed Smallest Environmental sense of purpose for how we care for others and improve people’s lives. Footprint Our Malaysian team donated care packages that included Huggies, Kotex, and Kleenex products to 16,000 affected families. YB Dato’ Sri Dr. Santhara Kumar, Deputy Federal Territories Minister, pictured here, recognized Kimberly-Clark for the contribution.
Our Business Leadership Message Net Sales Our portfolio of brands, including Huggies, Kleenex, 149 Kimberly-Clark (NYSE: KMB) 54% Scott, Kotex, Cottonelle, Our Business and its trusted brands are North America Poise, Depend, Andrex, years in an indispensable part of Pull-Ups, GoodNites, Neve, in 2020 Our Business business Responding to COVID-19 Leading Through Social Unrest life for people in more than 175 countries. 46% Plenitud, Viva, and WypAll, hold the No. 1 or No. 2 share outside North America position in 80 countries. 1/4 We are headquartered in Our Strategy for the Dallas, Texas, with approximately Decisive Decade of the world’s 46,000 employees* worldwide and Diapers & Baby Wipes Consumer Tissue K-C Professional population operations in 34 countries. uses one of Diapers Facial Tissue Facial Tissue, Bathroom our products Fueled by ingenuity, creativity, and Tissue, and Paper Towels Training & Swim Pants Bathroom Tissue every day an understanding of people’s most for away-from-home use essential needs, we create products Baby Wipes Paper Towels $9.3 Wipers that help individuals experience Feminine Care bilion $6.7 3 $19.14 Safety Products $ more of what’s important to them. bilion Lives Better Incontinence Care bilion Making bilion sales For nearly 150 years, we’ve had the in 2020 foresight to find new ways to make lives better. From creating new categories to starting new conversations, we are 175+ constantly innovating our products and Smallest Environmental our practices to serve and care for the countries, ever-changing needs of the people we regions, and touch at all stages of life. territories where Footprint our brands * Number includes employees of Softex, which are sold Kimberly-Clark acquired in September 2020.
Responding to COVID-19 Leadership Message Kimberly-Clark responded to the We remain vigilant at every office, COVID-19 pandemic by helping to manufacturing facility, and distribution Our Business provide needed supplies to font-line center throughout our global operations workers and impacted households in our efforts to keep our people in 2020 Our Business Responding to COVID-19 and supporting relief efforts around safe and healthy. We have rigorous Leading Through Social Unrest the world. Our response is guided COVID-19 safety protocols, which were by our commitment to our value of developed in line with guidance from 2 Caring for Our Customers & 3 Caring for Those in Need: The Kimberly-Clark caring, which starts with our people recognized public health authorities. Consumers: Kimberly-Clark teams Foundation donated over $8 million to assist Our Strategy for the and their families and extends out These protocols are dependent on local stepped up to help our consumers with COVID-19 response and recovery efforts Decisive Decade to our partner, our customers and COVID-19 health conditions and include and customers have access to around the world. The Foundation donated consumers, communities, and to mask requirements, work-from-home essentials they need most - the $2.5 million to UNICEF and its programs those in need. options where practical, temperature comforts of home and health that our focused on preventing the spread of the virus scans at facility entry points, regular trusted brands provide every day. We by providing hygiene and medical kits to Our efforts focus on three key areas: cleaning of work areas, shift rotations, accelerated our production globally. schools and health facilities, and by increasing and social distancing reminders where children’s access to health, education, people gather. And when consumer uncertainty and and social services during the pandemic. Our protocols encourage employees to shifting market demands caused Another $2.5 million went to the International Lives Better 1 Caring for Our People: Nothing stay home when they feel unwell, and, toilet paper shortages in stores, Federation of Red Cross and Red Crescent Making is more important than the where applicable, we have enhanced our brands like Cottonelle and Societies and the American Red Cross. health and safety of our paid leave policies. Andrex launched a #ShareASquare people, who enable us to movement. provide the products people count on to maintain good Smallest Environmental health and hygiene. Footprint
Leading Through Social Unrest Leadership Message In 2020, the world was shocked by the tragic deaths of Breonna Taylor, Ahmaud Arbery, and George Floyd. The death Our priority is to cultivate a workforce where all are of George Floyd in late May broadened the Black Lives Matter movement and sparked a summer of worldwide protests included and empowered to do their best work— Our Business against systemic inequities and violence. where differences are valued and essential for success. in 2020 Our Business Responding to COVID-19 Companies large and small—including Kimberly-Clark—recognized the responsibility we have to reexamine our cultures; We champion the ongoing progress made by our passionate Leading Through Social Unrest root out racism, discrimination, and bias; and foster more inclusive and diverse workplaces that welcome and engage employee resource groups and non-discrimination policies, people of all races, cultures, and identities. yet we remain focused on the responsibility that we must do more. Our executive team is leading by example by driving Our Strategy for the While this kind of work isn’t conversations about systemic racism and inequality. We’ve Decisive Decade new to Kimberly-Clark, 2020 taken concerted action, including increased employee demonstrated that integrating engagement in caring conversations and addressing inclusion and diversity is a social By leading with unconscious biases with team leader training and resources. imperative and enabler of our inclusion, we were We also introduced a series of town halls led by our global business goals. better prepared in Inclusion & Diversity team to lay the foundation for our long- term strategy. this moment to listen We know shifting a complex, to each other and established system and Through these actions, we can be a catalyst for conversation, Lives Better creating new norms takes truly understand understanding, and community-building. We know that we Making sustained management the need for a can affect immediate change by looking inward—to challenge attention and personal workplace reality for our comfortability, educate ourselves, and improve our work by everyone in the our employees that company for the future. organization. As the events of matches our values 2020 unfolded, the urgency and aspirations. Kimberly-Clark doesn’t hold the answers, but we are holding Smallest Environmental of racial justice galvanized tight to our values of caring and being accountable, and us into collective action: We Erin Mitchell Richeson that begins with each of us. Caring means truly listening, committed to do more, move VP, Global Inclusion & empathizing, and seeking to understand. It means being faster, and enable change. Diversity inclusive and valuing the differences, and commonalities, that Footprint make us stronger.
Leadership Message Our Business in 2020 Our Strategy for the Decisive Our Strategy for the Decisive Decade Our Strategy Focusing on What’s Essential Decade Driving Benefit Across Our Value Chain Our Goals and Progress Lives Better Making Smallest Environmental Footprint We commemorated our Kleenex® brand’s 50th anniversary in Taiwan, China with a celebration at our Hsin-Ying site. This facility has produced nearly 7 billion Kleenex® Brand packs since its inception in 1971.
Our Strategy Leadership Message As we take action to solve It is also clearer than ever that we By 2030, we aim to: Our Business sustainability challenges for the cannot effectively and equitably decade ahead, we are building on address these environmental in 2020 our past successes, scaling up our challenges if we don’t also address Advance well-being in underserved and vulnerable use of efficient new technologies, and the challenges of inequality and communities around the world, helping delivering solutions that address the access to education, hygiene, and challenges facing our planet. sanitation. 1 billion people Our Strategy for the Decisive Decade We’re proud of the progress we have Our ambitious goals are Reduce our absolute Scope 1 and 2 GHG emissions by made to date. We have improved intended to spur innovation 50% (by 2030) Our Strategy Focusing on What’s Essential the lives of more than 25 million and action on building a better Driving Benefit Across Our Value Chain people through programs such as future. Our Goals and Progress Toilets Change Lives and the Kotex Reduce our Natural (Northern) Forest Fiber footprint by “Period or Not, She Can” promise, surpassing our 2022 goal to advance 50% (by 2025) the wellbeing of 25 million people. We Lives Better have reduced our GHG emissions by Reduce our plastics footprint by Making 32.1% versus our 2015 baseline and decreased our water usage in water- 50% stressed regions by 32.5%. Reduce our water footprint in water-stressed areas by However, we believe accelerated 50% Smallest Environmental action is needed to stay ahead of the imperatives of the global climate, biodiversity, and plastics crises. Footprint
Focusing on What's Essential Leadership Message At Kimberly-Clark, Making Lives Better Smallest Environmental Footprint Our Business we’re committed to improving the lives of We create opportunities for social impact with our purpose-driven brands and products. We help sustain and reinvigorate natural systems by in 2020 1 billion people while stepping up to meet the challenges that science and striving to operate Caring for the health and well-being of people at all stages of life our stakeholders have identified. with the smallest environmental Reducing the use of new fossil footprint, helping to Challenging stigmas and championing the progress of women everywhere fuel-based plastic Our Strategy for the Decisive Decade safeguard natural Our Strategy systems, and doing Focusing on What’s Essential the right thing Championing a world where all enjoy access to clean water, sanitation, and hygiene Enabling circular systems Driving Benefit Across Our Value Chain for people and Our Goals and Progress communities. Promoting inclusion and diversity within our business and society at large Reducing our forest carbon footprint Lives Better Protecting the rights of workers across our supply chain Supporting biodiversity and forest- Making dependent communities Protecting the health and safety of our employees, customers, and consumers Reducing GHG emissions across our value chain, in line with science Smallest Environmental Furthering ingredient transparency to ingredient transparency Building resilience to water risk Delivering product safety and quality Footprint
Driving Benefit Across Leadership Message Our Value Chain Our Business in 2020 An important lesson we have learned Forest-dependent Sustainable water use Water stewardship communities Water stewardship over the years is that we can only succeed at scale when we align our Human rights and Forest carbon footprint Zero waste to landfill Our Strategy for the sustainability ambitions with our ethical practices Decisive Decade commercial plans. Our Strategy Biodiversity Scope 3 carbon emissions Scope 1 & 2 carbon emissions Focusing on What’s Essential We are building purpose-led Driving Benefit Across Our Value Chain brands that create shared Our Goals and Progress value for our business and Raw Materials Supplier Mfg. Kimberly-Clar kM stakeholders by innovating fg . solutions to global challenges. Recovery Lives Better Residual D is Recognizing that the United Nations’ waste Making Scope 3 carbon emissions tribu Sustainable Development Goals E n d - o f - L i fe Post-consumer P ro d u c t (SDGs) provide the best shared waste ti o n definition of our global challenges, we have considered these goals Health and against our value chain. The result is Smallest Environmental well-being of people a strategy focused on addressing key impacts and opportunities across the Empowerment of s er Co Improving access women and girls m lifecycle of our products, and we have o ns st challenged our brand, innovation, um e rs Cu Footprint Access to clean Scope 3 carbon emissions and supply chain teams to develop water and sanitation new solutions that move the needle.
Our Goals and Progress Leadership Message Strategic Our 2030 Our Target Year Progress1 SDG Focus Aspiration Goals Focus Our Business BETTER LIVES in 2020 Advance the well-being of 1 billion people Make lives better through Social Impact through innovation and programs that deliver 2030 25.7M purpose-driven brands. essentials to underserved2 communities. Our Strategy for the Decisive Decade SMALLEST ENVIRONMENTAL FOOTPRINT Our Strategy Focusing on What’s Essential Driving Benefit Across Our 50% reduction in the use of new, fossil fuel- Value Chain Reduce our plastics3 footprint 2030 2.8% Our Goals and Progress by 50% through reductions, based plastics from a 2019 base year. Plastics Footprint renewables, and recycled substitutes, or by introducing 75% of the material in our products either 2030 70.9% reusable products or circular biodegradable or recovered and recycled. Lives Better systems. Making 100% of our packaging reusable, recyclable, 2025 82% or compostable. 20% average recycled content across plastic 2025 2.5% packaging. Smallest Environmental 100% of our manufacturing waste diverted 2022 96% from landfill to beneficial uses. Footprint 1. Progress reflects impact of COVID-19. 2. We identify "underserved" populations based on (1) inability to pay for existing products, (2) inadequate distribution, (3) underdeveloped waste-management infrastructure, or (4) other disparities such as lack of education, social stigmas, etc. 3. Plastics reductions are by weight.
Strategic Our 2030 Our Target Year Progress SDG Focus Aspiration Goals Focus Leadership Reduce our natural forest Reduce our Natural (Northern) Forest Fiber2 2025 19% Message footprint by 50% while unlocking footprint by 50% from a 2011 base year. Forest Footprint the power of the world’s forests to help solve the climate and biodiversity crises. Source 90% of our tissue fiber from 2025 84% Environmentally Preferred Fiber (EPF) sources. Our Business Set a science-based goal to reduce Scope 3 2030 In progress in 2020 land-use emissions by 2030. Do our part in the fight against Reduce absolute Scope 1 and 2 GHG 2030 32.1% climate change by minimizing the emissions by 50% over a 2015 base year. Carbon Footprint Our Strategy for the carbon footprint of our products Decisive Decade and brands and reducing our direct emissions by 50% and Reduce absolute Scope 33 GHG emissions by 2030 3% Our Strategy 20% from a 2015 base year. Focusing on What’s Essential value chain emissions by 20%. Driving Benefit Across Our Value Chain Our Goals and Progress Reduce our water footprint Reduce our water footprint by 50% in water- 2030 32.5% by 50% in water-stressed stressed regions. Water Footprint regions by creating significant improvements in our supply Lives Better chain and the surrounding Conduct 30 stakeholder engagements in 2030 In progress water-stressed regions that result in improved Making communities, ensuring ongoing access to fresh water. access to fresh water for all. Smallest Environmental Footprint 2. Natural forests are composed of native species that self-regenerate and contain key elements of native ecosystems 3. Reduction target is focused on emissions from the Greenhouse Gas Protocol's Scope 3 Category 1 (Purchased Goods such as wildlife and biological diversity. To us, this primarily includes boreal fibers known as Northern Bleached and Services) and Category 12 (End of Life Treatment of Sold Products). Softwood Kraft (NBSK).
Leadership Message Our Business in 2020 Making Lives Better Our Strategy for the Decisive Decade With the UN SDGs as our roadmap, we're putting our brands Social Impact Caring for Our Community and supply chain to work to solve some of today’s most Inclusion & Diversity pressing challenges while working to lift up vulnerable and Talent Development underserved people around the world. Lives Better Human Rights & Ethical Practices Making Ingredients & Transparency Product Quality & Safety We live our purpose by elevating care and improving Environmental, Health & Safety the quality of people's lives with our essential health and wellbeing solutions. Smallest Environmental Footprint We partner with WaterAid to provide communities in Bangladesh and around the world with access to sanitation and hygiene. Photo Credit: Jannatul Mawa, WaterAid
Social Leadership Message Impact Our Business in 2020 We deliver essentials for a But millions worldwide remain in need, Through our social impact ambition, better life to one quarter of the lacking access to basic products we aim to advance the wellbeing world's population every day. and services that could dramatically of 1 billion people in underserved Our Strategy for the improve their quality of life. communities. Decisive Decade Social Impact Caring for Our Community Inclusion & Diversity Talent Development Lives Better Human Rights & Ethical Practices Making Ingredients & Transparency Product Quality & Safety Environmental, Health & Safety Smallest Environmental The Huggies Brazil team partnered with 12 NGOs across the country to donate and distribute over 1 million Huggies Footprint diapers to more than 3,000 families in need.
Program Ambition Leadership Message Around the world, 500 million women and girls still lack access to menstrual health solutions and 2 billion people lack access to basic sanitation (World Bank). Countless babies are born with limited access to maternal and neonatal healthcare that could dramatically improve Our Business their quality of life. in 2020 We believe we are uniquely positioned to help tackle these challenges. Our Strategy for the Who Wants to Be a (Humanitarian) Billionaire? Decisive Decade Kimberly-Clark's chief scienctist, Pete Dulcamara, believes we have an opportunity to become billionaires if we stop defining billionaire as someone who accumulates a billion dollars and instead define it as someone who helps a billion people. Social Impact Caring for Our Community Inclusion & Diversity At Kimberly-Clark, we see the connection between menstrual hygiene and sanitation, and know we have a Talent Development huge opportunity to make an impact. Lives Better Human Rights & Ethical Practices Making Ingredients & Transparency Product Quality & Safety Environmental, Health & Safety We don't shy away from a challenge that has the potential to positively impact people's lives. When we address access to essentials like water, sanitation, and hygiene while at the same time breaking down barriers for women, it's not that Smallest Environmental difficult to see that we can all become billionaires. Footprint
Strategic Focus Leadership Message As we launched these global ambitions amidst a global pandemic, our brands have been guided by purpose to ensure embedding social good sits at the core of their business. Here are some of our key programs and impacts since our program started in 2015. Our Business We care for the health and We challenge stigmas and We champion a world where well-being of people at all champion the progress of all enjoy access to clean water in 2020 SDG stages of life. women everywhere in pursuit and sanitation. of gender equality. Leading Brands Our Strategy for the Decisive Decade Our programs have impacted more than 16M Our programs have impacted more than 3M since Our programs have impacted nearly 4M since 2015 Key programs since 2015 including: 2015 including: including: and impacts Social Impact 1.6M 1.3M 1.7M Babies and young children benefited from Students benefited from our U by Kotex program in People benefited from Andrex partnering with WaterAid Caring for Our Community Inclusion & Diversity No Baby Unhugged partnership Australia and the Pacific Islands to build and renovate public toilets in Bangladesh Talent Development Lives Better Human Rights & Ethical Practices 1.5M $15,000 233 Making Ingredients & Transparency Lives impacted by National Diaper Bank Network Grants awarded to 30 female entrepreneurs to Communities given access to sanitation services and Product Quality & Safety Environmental, Health & Safety (USA) since 2015 help them bounce back from hardships related to clean water through Scott’s partnership with Water COVID-19 for People $500,000 Donations given to support education programs >36M 1.25M Period products donated to the Alliance for Period Smallest Environmental for safer, healthier workplaces People benefited from Neve’s partnership with UNICEF Supplies since 2018 to support WASH programs Footprint
Goals and Performance Goal Leadership Message Throughout 2020, Kimberly-Clark These efforts are supported by the While we recognize we have a long Advance the and our brands reached 8.5 million Kimberly-Clark Foundation, whose way to go to achieve our 2030 goal well-being of 1 people in vulnerable/underserved social and community investments of reaching 1 billion people, we are communities with our programs and aid in our work to increase access to laying the groundwork for accelerated Our Business initiatives, pushing us beyond our initial sanitation, help children thrive, and impact in the years to come. 2022 goal to impact 25 million lives. empower women and girls. billion people in 2020 through innovation and programs that deliver essentials to vulnerable 2.3M and underserved* communities Our Strategy for the Decisive Decade COVID-19/other 25.7M lives impacted 3.2M empowering *We identify "underserved" populations based on (1) inability to pay for existing product, (2) inadequate access to distribution, (3) under-developed waste- Social Impact management infrastructure, or (4) other Caring for Our Community since 2015 women & girls disparities such as lack of education, Inclusion & Diversity social stigmas, etc. 3.9M Talent Development Lives Better Human Rights & Ethical Practices Making Ingredients & Transparency Product Quality & Safety access to Environmental, Health & Safety sanitation 16.2M Smallest Environmental helping children thrive Footprint Photo Credit: Jannatul Mawa, WaterAid
Case Study: 100 Years of Leading with Purpose Leadership Message More than a 100 years ago, World War I nurses began using Kimberly- Clark’s bandages as makeshift sanitary napkins, so they could continue their Our Business lifesaving work without worrying about their periods. Purpose in 2020 We exist to ensure a period never gets in After the war, the resilience and the way of any woman’s progress resourcefulness of those nurses inspired the introduction of a whole new category of Our Strategy for the personal care products. They also inspired Decisive Decade the launch of our Kotex brand. Throughout the century that followed, those To champion her progress, our products have advanced, but the brand’s social impact programs drive lasting purpose has remained essentially the same: change for women and girls Social Impact Caring for Our Community to ensure that a period never gets in the Inclusion & Diversity way of any woman’s progress. To make that Talent Development promise a reality for women and girls around Lives Better Human Rights & Ethical Practices the world, Kotex takes a holistic approach to Making Ingredients & Transparency Product Quality & Safety social impact. Environmental, Health & Safety Fight the Stigma Open Doors for Her Build Futures with Education Working with our partners, we’re Through local, brand-led efforts Particularly in the developing focusing on efforts to increase around the globe, we’re opening world, lack of menstrual hygiene knowledge and make societal doors for women to pursue management contributes to Smallest Environmental changes to eliminate period stigma. independent futures. school dropout, stunting her future opportunities. Footprint
Fight the Stigma Open Doors for Her Leadership Message Every day, somewhere around the world, more than 800 million women Promoting Women’s Innovation in the Sanitation Economy and girls are experiencing their period, yet 500 million of them lack access to hygienic period products. In both developing and developed nations, In October, Kotex partnered with the Toilet Board to launch Women in the Sanitation Economy cultural taboos, discrimination, and lack of menstrual education create Innovation Lab, a six-month program that cultivates women-led and/or women’s-health-focused Our Business stigmas and barriers that impact women’s and girls’ rights, stifling their startups. The program features five women-led businesses hailing from the United States, United opportunities. Kingdom, and Kenya. in 2020 The participating businesses receive mentorship and training from 12 Kimberly-Clark global employees She Can Initiative who help them roll out their services and products, including recycling solutions for menstrual products, waterless toilets, toilets for people with special needs, cloth diapers and laundering services, and Our Strategy for the Kotex’s She Can initiative aims to fight stigmas and barriers by delivering menstrual sustainable menstrual products. We support these women entrepreneurs in their journey to achieve Decisive Decade health education and skills to more than 1.6 million women and girls in Nigeria, Vietnam, their goals and positively contribute to some of the world’s most pressing sanitation issues. China, India, Brazil, and Colombia. Over three years, Kotex is devoting $2.5 million to a combination of educational efforts, mass media campaigns, and skills-building trainings that help girls and young women take control of their menstrual health and their futures. Social Impact Caring for Our Community Inclusion & Diversity Talent Development Lives Better Human Rights & Ethical Practices Making Ingredients & Transparency Product Quality & Safety Environmental, Health & Safety Smallest Environmental Footprint
Build Futures with Education Leadership Message U by Kotex Schools Program Our U by Kotex Schools Program aims to prepare young girls for their first period by providing fully syllabus-compliant Our Business lesson plans, interactive digital teaching materials, and product samples to be delivered by someone they trust: their in 2020 teacher. The program has been active in Australia and New Zealand since 2014, and in 2020, it expanded to reach over 30,000 students in Papua New Guinea, Fiji, and other Pacific Islands nations. Since 2016, the program has reached nearly Our Strategy for the 1.3 million students. Decisive Decade Social Impact Caring for Our Community We have the opportunity to positively Inclusion & Diversity impact people's lives in these countries Talent Development by visiting high schools in local Lives Better Human Rights & Ethical Practices communities and providing education Making Ingredients & Transparency Product Quality & Safety and products. We are creating Environmental, Health & Safety normality around menstruating by starting conversations and challenging taboos. Smallest Environmental Elizabeth Harrington U by Kotex Pacific Islands Manager Footprint
Caring for Our Leadership Message Community Our Business in 2020 Our caring value drives our culture, and we are committed to supporting communities through company giving and employee volunteerism. Our Strategy for the The Kimberly-Clark Foundation United Way Annual Campaign Decisive Decade In 1952, we established the Kimberly-Clark Foundation to The Kimberly-Clark Foundation’s Community Partners program recognizes For nearly 70 years, we have been a strong support our commitment to charitable giving. The Foundation the volunteer efforts of U.S. employees and their spouses, making $500 supporter of United Way. In Kimberly- Social Impact Caring for Our Community was built around our promise to be a good employer and grants to charitable organizations where those employees volunteer for Clark communities throughout the United Inclusion & Diversity a good neighbor, and to help those in need gain essentials a minimum of 30 hours per year. U.S. employees are able to double their States, we raise money through enthusiastic Talent Development through a portfolio of health, humanitarian, economic, and donations to qualified charitable organizations through the Foundation’s campaigns and participate in United Way Lives Better Human Rights & Ethical Practices environmental initiatives. Matching Gifts program. volunteer events. Making Ingredients & Transparency Product Quality & Safety Environmental, Health & Safety Extending our impact beyond direct corporate funding and employee-led giving, the Foundation supports targeted causes through financial contributions, Kimberly-Clark product donations, and volunteer hours. Smallest Environmental Each year, employees from Kimberly-Clark facilities around the world participate in a variety of volunteer activities to support local nonprofit organizations. $42.2M $1.4M $1.9M Footprint total giving in 2020 employee gifts matched in 2020 annual campaign contributions to United Way in 2020
Brands Giving Back Leadership Message In 2020, Kimberly-Clark’s trusted brands led initiatives to provide better care for communities around the world. Kimberly-Clark Kleenex Huggies Our Business in 2020 In the UK, Kimberly-Clark donated 1 million In Australia and New Zealand, Kleenex teams Huggies North America launched a Andrex toilet rolls, 248,000 Kleenex Brand® partnered with Lifeline to raise awareness partnership with Hand to Hold, facilitating tissue boxes, and over 100,000 Huggies and funding for crisis support and suicide support groups and podcasts for parents with products, reaching 2,284 charities across the prevention services. The brand committed infants in neonatal intensive care. Our Strategy for the country to help families in need. to donating up to AU$200,000 in matched Decisive Decade donations so that Lifeline can continue Our Huggies team in Brazil announced a to provide around-the-clock services to partnership with BC2Mammy to launch “Mais Poise Australians and New Zealanders in need. Abraços Academy” through our Huggies website. The Academy gives our Huggies Poise in North America provided 50 grants to moms and dads the opportunity to receive Social Impact Caring for Our Community women-led businesses, totaling $500,000. Kotex free online business training designed to Inclusion & Diversity strengthen their business skills and fuel their Talent Development The Kotex India team partnered with the entrepreneurial ideas. Lives Better Human Rights & Ethical Practices Scott Municipal Corporation of Greater Mumbai to Making Ingredients & Transparency Product Quality & Safety provide 1 million Kotex pads to women in need. Environmental, Health & Safety Our Scott brand in the United States committed $500,000 to Boys & Girls Clubs of America, Our Kotex brand in Latin America partnered supporting the families of essential workers with the Red Cross to distribute 1.3 million during COVID-19 by keeping nearly 300 clubs Kotex products to nurses, healthcare workers, Smallest Environmental open and providing emergency childcare. and people in need across Argentina, Peru, Bolivia, Chile, Uruguay, and Paraguay. Footprint
Employees Strengthen Communities Around the Globe Leadership Message Kimberly-Clark is working to advance the well-being of 1 billion people in underserved communities around the world by 2030. Our employees help Our Business make this ambition a reality. Here are a few of their stories. in 2020 Sonia S., Romagnano, Italy Scott S., Jenks, Oklahoma Our Strategy for the Decisive Decade As a child, Kimberly-Clark When the COVID-19 pandemic Nine years ago, Jenks manufacturing facility employee employee Sonia wanted hit Northern Italy, Sonia knew Scott almost lost his daughter after she swallowed a to help people. Her dream that she wanted to help penny. The doctors at The Children's Hospital at Saint was to become a doctor strengthen and care for her Francis in Tulsa, Oklahoma, saved her life. He used or a nurse, but she couldn’t community. Kimberly-Clark this experience to strengthen his community through Social Impact Caring for Our Community afford to attend a university. ardently supported her volunteering. Inclusion & Diversity Instead she joined the Red decision to volunteer, and Talent Development Cross as a volunteer. Today, Sonia dedicated two months Lives Better Human Rights & Ethical Practices Sonia is proud to work at to working full-time on the front Every morning, I get to wake up and spend another Making Ingredients & Transparency Product Quality & Safety our manufacturing facility in lines of the pandemic response day with my daughter, and now I have a unique Environmental, Health & Safety Romagnano, Italy. with the local Red Cross. opportunity to help save someone else’s life. Through Kimberly-Clark’s volunteering and donation matching programs, we can help care for the communities Being a volunteer in several fields, I have now been able to where we live and work. I work really closely with the Smallest Environmental appreciate what Kimberly-Clark is doing for the environment, Children’s Hospital, helping raise money so they have health, and people. I’m grateful that I could be there for those the resources they need and providing entertainment who needed support. I’ll never forget the elderly people who for the patients. just wanted a hand to hold so they wouldn’t be alone. Footprint
Inclusion & Leadership Message Diversity Our Business in 2020 Kimberly-Clark’s path to growth and foundation for everything we do. We prosperity rests on building a more inclusive believe that diverse teams achieve and diverse, global organization. Employing better business outcomes and that Our Strategy for the people from disparate backgrounds, cultures, teams generate these results when Decisive Decade and experiences amplifies our ability to they are activated by a culture of gather insights, foster innovation, and inclusion that recognizes, values, and understand the culture, context, and mindset utilizes the diverse perspectives on of consumers around the world. the team. Social Impact Caring for Our Community Our journey to build a more inclusive We started by changing the program Inclusion & Diversity and diverse Kimberly-Clark began name to Inclusion & Diversity (I&D) Talent Development a decade ago, and in late 2019 we and reflecting this change in I&D Lives Better Human Rights & Ethical Practices embarked on the next phase of our team titles. By emphasizing building Making Ingredients & Transparency Product Quality & Safety strategy by exploring the barriers an inclusive environment first, we will Environmental, Health & Safety that can prevent true equity in the be able to focus our culture on truly workplace. unleashing the unique greatness inside of each individual—greatness We determined that diversity actions alone that is based on embracing different Smallest Environmental would not be enough. We used to call our backgrounds, experiences, and initiatives in this area “Diversity & Inclusion,” perspectives, to create the ideas that but we realized that sustainable impact could carry us forward. only be achieved by first making inclusion the Footprint
An Inclusive Culture Is Our Foundation Leadership Message While that strategy rework was underway, the worst realities of systemic racism were brought into focus with the killings of Breonna Taylor, Ahmaud Arbery, George Floyd, and Our Business other Black Americans. in 2020 The protests, marches, and unrest that unfolded across the globe in late May 2020 brought this work into greater focus. We kicked off a series of conversations Our Strategy for the inside Kimberly-Clark, examining the topics Decisive Decade of racism, discrimination, bias, and our commitment to a truly inclusive culture. These conversations were candid, sometimes raw and personal, and they tested our values and beliefs. Social Impact Caring for Our Community Inclusion & Diversity See pg. 8, "Leading Through Social But the work here is just beginning. It’s only by Ultimately, by building a more inclusive global Talent Development Unrest" building a workplace environment where people feel organization that applies its diverse experiences and Lives Better Human Rights & Ethical Practices welcomed, valued, and respected that we become a passions to our trusted brands, we will make life better Making Ingredients & Transparency Product Quality & Safety company where diverse individuals feel empowered to for people all around the world. Environmental, Health & Safety work, contribute, and innovate. And it’s only by living that inclusion, day in and day out, that our culture truly reflects our corporate values and aspirations. Smallest Environmental Footprint
Kimberly-Clark Global Inclusion & Diversity Strategy Leadership Message 1 Create Community How: Show you care. Be real, Develop a Kimberly-Clark community whose accepting, open, and curious. deepened understanding and daily actions Find common ground and respect drive inclusion, embrace diversity, and empower different perspectives. Our Business authenticity. in 2020 2 Leverage Leadership How: Self-reflect and actively Raise the standard, expecting our leaders recalibrate the approach. Our Strategy for the to act as cultural enablers who build diverse, Lead with courage, intention, and Decisive Decade high-performing teams and infuse inclusion into accountability. decision-making and the workplace experience. Social Impact Caring for Our Community 3 Empower Employees How: Unlock different identities, Inclusion & Diversity Empower talent to thrive, and embrace hiring, individuals, and ideas. Talent Development promotion, and development practices that Seek, demand, and leverage Lives Better Human Rights & Ethical Practices reflect our diverse consumer base. different points of view. Making Ingredients & Transparency Product Quality & Safety Environmental, Health & Safety 4 Accelerate Action How: Disrupt, speak up, and stand Integrate I&D into everything we do, using our up. Own the change. Smallest Environmental strength to combat inequities for our people, our consumers, and our communities around the world to make lives better today and tomorrow. Footprint
CEO Action Global Inclusion Week She Can Connect Our CEO Mike Hsu pledged on In September, Kimberly-Clark In 2020, we launched the “She Can Leadership Message behalf of Kimberly-Clark to support conducted its first Global Inclusion Connect” initiative across our Asia- a more inclusive workplace for Week, during which we held over 75 Pacific, Latin America, Europe, Middle Connect employees, community, and society workshops, small-group discussions, East, and Africa operations, providing Virtual network through CEO Action. Signatories leadership panel discussions, a platform where the next generation forums pledge to: keynote addresses, and collaborative of Kimberly-Clark’s female leaders Our Business brainstorming sessions, all centered can connect, inspire, express, and Grow Express Cultivate environments that on inspiring our people to better grow. Aimed at supporting and in 2020 support open dialogue on understand and activate a culture accelerating women’s professional Self- awareness She Lean circles & panel complex, and sometimes of inclusion. These events reached development opportunities and & personal Can discussions difficult, conversations about more than 3,000 employees in more boosting their visibility, the program brand inclusion and diversity than 50 countries and covered topics includes mentorship and sponsorship Our Strategy for the such as the value of cross-cultural opportunities where participants can Inspire Decisive Decade teams, viewing inclusion as a growth learn from other women’s experiences Women Mentoring strategy, the power of diverse thought, in the company, expand their personal Women program and Implement and expand finding your individual I&D voice, and networks, and build self-awareness and network-building unconscious bias education balancing inclusion and beliefs. their personal brand. 124 Social Impact Caring for Our Community Kimberly-Clark CEO Mike Hsu hosted Inclusion & Diversity a Global Town Hall as part of the This initiative contributes both to our Talent Development Share best-known inclusion week’s events, where he shared women participated employees’ own development and to our Lives Better Human Rights & Ethical Practices and diversity programs and reflections on Kimberly-Clark’s 10-year in the program pipeline of strong women talent. Making Ingredients & Transparency Product Quality & Safety initiatives among signatories, diversity journey and introduced our Environmental, Health & Safety as well as those that have new global I&D strategy and goals. been unsuccessful We are proud to have won In 2020, Kimberly-Clark earned a place in: recognition from leading Smallest Environmental organizations for our approach to 2020+ Top Companies 2020 Diversity Engage boards when promoting and nurturing an inclusive for Executive Women by Best Practices developing and evaluating and diverse workplace environment Working Mother Media Inclusion Index inclusion and diversity and advancing leadership Footprint strategies opportunities for women. See full list of awards
Talent Development Leadership Message Developing talent and Strong leadership Employee Resource Groups Our Business leaders at all levels in the requires ongoing organization is critical to our Core Values coaching and Kimberly-Clark is proud to offer employees the opportunity to in 2020 long-term success. To attract, feedback, so we join Employee Resource Groups (ERGs). These groups include engage, develop, reward, Authentic: Our heritage is encourage our leaders networks for those of African, Hispanic, Latino, and Asian and retain the best and the one of honesty, integrity, and to frequently engage ancestry, women, and LGBTQ+, as well as parents, caregivers, brightest, we strive to create courageously doing the right in open dialogue with people with disabilities, military veterans, and new employees. thing. their employees. These Our Strategy for the an inclusive work environment Our ERGs promote career development by allowing employees Decisive Decade that fosters personal and conversations were to connect with and learn from one another and help amplify professional growth. especially important our inclusion and diversity efforts through our Global Caring Accountable: We take during the pandemic, Conversations. Kimberly-Clark’s values play ownership for our business and when business priorities a critical role in establishing our future. and objectives were Social Impact Caring for Our Community this work environment. Our changing rapidly. Inclusion & Diversity employees strive to live by Talent Development these principles every day Innovative: We are committed Lives Better Human Rights & Ethical Practices and use them as a compass to new ideas that add value Making Ingredients & Transparency Product Quality & Safety for engaging with partners, for our customers, our business, Environmental, Health & Safety consumers, customers, and and our world. each other. Our values unify our employees, shaping our culture and the future we Caring: We respect each other Smallest Environmental envision for our company. and care for the communities where we live and work. Footprint
Kimberly-Clark’s Learning Culture Leadership Message At Kimberly-Clark, we cultivate a learning culture that not only enables our employees In 2020, we launched the Activating Inclusive We also developed five training modules to positively impact billions of lives but also provides them with the knowledge to Leadership Lab, a three-week program covering topics essential for success in our Our Business know how to make a lasting difference. Our learning culture empowers our employees exploring unconscious bias mitigation and new socially distanced work environment, to meet the moment by knowing our business, leading with impact, and living our inclusive leadership strategies. To date, 40% of enabling our employees to remain engaged. in 2020 purpose and culture. The result is a company focused on creating a better world for team leaders in North America have completed the products we make, the workplace we cultivate, and the communities we serve. the course. We are now rolling out the training to all global managers during 2021. These modules include: Personal Well-Being Our Strategy for the Kimberly-Clark emphasizes building employee Decisive Decade knowledge and capabilities on human rights. Through training and other tools, we enable our operations and supplier-facing teams to Individual Productivity understand, identify, and act on forced labor and other potential human rights risks in our Social Impact Caring for Our Community supply chain. Team Productivity Inclusion & Diversity Talent Development Lives Better Human Rights & Ethical Practices Meeting Productivity Making Ingredients & Transparency Product Quality & Safety Environmental, Health & Safety Technology Tools Smallest Environmental Footprint
Human Rights & Leadership Message Ethical Practices Our Business in 2020 Kimberly-Clark’s values of authenticity, Our Code of Conduct and Human In recognition of our accountability, innovation, and caring Rights Policy establish Kimberly- ethics policies and enable us to provide better care for a Clark’s ethical expectations and practices, Kimberly-Clark was once again named Our Strategy for the better world. create accountability across key issue Decisive Decade areas. one of the "World's Most Our Ethics and Compliance Program Ethical Companies" in fosters a culture of integrity that These commitments extend beyond 2020 by the Ethisphere supports our employees in living out our corporate walls to also encompass Institute, an independent these values and ensures a workplace our suppliers’ employees and research center that Social Impact Caring for Our Community where all are treated with respect. workplaces. promotes best practices Inclusion & Diversity in corporate ethics and Talent Development governance. Lives Better Human Rights & Ethical Practices Making Ingredients & Transparency Product Quality & Safety Environmental, Health & Safety Smallest Environmental Footprint
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