4 A Message from Chairman and CEO Mike Hsu As I reflect on the last year, I’m proud of how our team at Kimberly-Clark remained committed to caring for our consumers, customers and communities in the face of significant global challenges. These events have taken a toll on society and on our planet, reinforcing the need to be better stewards for current and future generations. At Kimberly-Clark, that means fulfilling our purpose of Better Care for a Better World through the products we make, the workplaces we create and the communities we serve. Our 2030 sustainability goals are critical to our purpose, and our sights are set on achieving them. Here are some progress highlights for 2021: • Our brands continued to deliver toward our goal to improve the well-being of 1 billion people by 2030 by increasing people’s access to clean water, safe sanitation and hygiene through programs like “Toilets Change Lives” and partnerships with NGOs, including Water For People, WaterAid and Plan International. • Consistent with the world’s enhanced climate action commitments coming out of COP26, we made progress against ambitious targets approved by the Science Based Targets initiative (SBTi) for reducing our Scope 1 and 2 greenhouse gas emissions by 50% and our Scope 3 emissions by 20%* – all by 2030. As of the end of 2021, we achieved nearly a 41% reduction in operational emissions (Scope 1 and 2) versus our 2015 base year. • In addition to reducing our operational footprint, we’re continuing to develop more sustainable solutions for our global portfolio, including alternative fibers and plastics. In 2021, 87% of the fiber we used globally came from environmentally preferred sources. On the plastics front, we’ve doubled the percentage of our recycled content in our plastics packaging, and, through our various partnerships, we’re exploring more sustainable, commercially viable and scalable alternatives to fossil fuel-based plastics. • We continued to foster a culture of inclusion that recognizes, values and celebrates the diverse perspectives of our team. Among other pillars of our strategy, we’re focused on leveraging leadership to drive inclusion and diversity with initiatives including educating team leaders through our Activating Inclusive Leadership Lab to build high-performing, inclusive and diverse teams. • As we continued to navigate the global COVID-19 pandemic, we prioritized the health and safety of our people with global protocols that often exceeded local requirements. A number of our sites provided preventive programs, including free on-site testing, vaccination clinics for employees and family members as well as training and education. Supporting our people’s health and safety enabled us to continue producing the essential products that people around the world depend on every day. * Scope 3 reduction target focuses on purchased goods and services and end of life treatment of sold products. I’m proud of what the team has accomplished and recognize there’s more we need to do to meet the challenges of the moment. As Kimberly-Clark continues to grow our business, our care for consumers, customers, partners, communities, and our people, remains front and center. From our commitment to climate stewardship and our efforts to develop more sustainable solutions for our product portfolio to our focus on inclusion and diversity and our ambition to advance the well-being of 1 billion people around the world, we’ll continue to drive positive impact as we create long-term value for our shareholders. That’s how we deliver Better Care for a Better World. Mike Hsu Chairman, CEO, and Proud Employee About This Report Social Impact Our Strategy Inclusion & Diversity Environment, Health and Safety Product Quality & Safety Plastics Footprint Forest Footprint Carbon Footprint Water Footprint
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