6.5% bsolute global reduction in ghg emissions since 2010

At Kimberly-Clark, the majority of our operational greenhouse gas (GHG) emissions result from energy use at our manufacturing facilities. In line with our Essentials for a Better Life vision, we strive to address issues like reducing our carbon footprint by understanding how it affects all aspects of our business — from regulatory complexity to cost implications to environmental and social concerns.

"Kimberly-Clark has made progress on all its major environmental impacts. The company has made absolute cuts in greenhouse gases, but I believe it needs to set much more aggressive goals that are based on the science of climate change, which would drive extensive use of renewable energy and larger efficiency gains. Kimberly-Clark's work on water is going well, but will require continued investment and support, and its fiber strategy (certification and innovation around alternatives) is world-class."
— Andrew Winston
    Sustainability Advisory Board Member

Managing Our Greenhouse Gas Emissions

To manage and reduce the GHG emissions from our operations, we have developed a corporate-wide GHG inventory of the six major greenhouse gases. We report progress annually based on detailed EPA protocols. As part of our Sustainability 2015 strategy, we set a goal of reducing GHG absolute emissions from manufacturing by 5% from a 2010 baseline.

In 2013, absolute global GHG emissions at our manufacturing facilities were 5.1 million metric tons (MT) of CO2 equivalents (CO2e). This represents a 3% reduction from 2012 GHG emissions and a 6.4% reduction from the baseline year of 2010 delivering our Sustainability 2015 goal two years early.

This record year for GHG emissions reduction was driven by initiatives executed within three main corporate strategies designed to deliver our goal:

  • Footprint Optimization: Our strategy to restructure our manufacturing footprint for improved business results has resulted in facilities sold or retired. Recent reductions from retirement of assets at five global sites contributed to a reduction of more than 80,000 MTCO2e in 2013.
  • Alternate and Renewable Energy Supply Deployment: Our strategy for global energy supply incorporates responsible, sustainable procurement of energy to deliver reliable supply and predictable energy cost. GHG emissions reduction from new alternative energy sources including combined heat and power (cogeneration) technology and renewable energy reduced emissions by 33,000 MTCO2e.
  • Energy Conservation: Our strategy for energy conservation incorporates facility energy assessments against best practices to generate projects to reduce energy consumption and improve energy efficiency. We have established process benchmarks for targeted energy intensity as measured by amount of energy required per unit of manufactured product. To support our GHG emissions reduction effort, we set the goal to eliminate the overconsumption of energy above those benchmarks by 2015. GHG emissions reductions from energy conservation projects resulted in savings of 42,000 MTCO2e.

Renewable energy is utilized where possible in our global operations and range from biofuels sourced from wood waste and landfill gas in the United States (Mobile & Beech Island), Switzerland (Neiderbipp), Brazil (Correia Pinto), and Thailand; also active solar installations are part of the portfolio in the United States (Berkeley) and Italy (Romagnano) where 1 megawatt of electricity is generated for internal mill use.

Since 2005, we have deployed cogeneration of electricity at four manufacturing facilities as the cornerstone of our alternate energy strategy. Through 2013, those projects have provided cumulative avoided emissions of 4.2 million MTCO2e compared to conventional sources. Our 2013 avoided emissions of more than 230,000 MTCO2e is equal to those from generation of electricity used annually by 31,650 homes. Our newest cogeneration system in Millicent, Australia, not only produces more than 90% of the electricity for the manufacturing facility, but also produces 100% of the mill's steam through a waste heat recovery steam generator. Additional waste heat is integrated into the tissue manufacturing process to reduce more than 60% of the natural gas used to dry our tissue. This project also shows our continuous improvement by achieving a Kimberly-Clark cogeneration record 80% cycle efficiency which saves 80,000 MTCO2e and more than $8 million in energy cost annually.

Other Criteria Pollutants (MT) 2010 2011 2012 2013
NOx 4,870 4,892 3,919 3,763
SO2 4,456 4,685 3,252 2048

Fuel switching to lower GHG emitting fuels is an important part of our alternate energy strategy. Applied to steam generation, six facilities (Enstra, Chungli, Hsing Ying, Tayuon, Thailand Safe Skin and Barbosa) have converted fuel oil or coal to natural gas. In 2013, savings from fuel switching contributed 25,000 MTCO2e in GHG reduction.

Energy Conservation: Managing Energy Efficiency

From 2012 to 2013, Kimberly-Clark manufacturing facilities reduced energy over consumption by 50%, from 3% in 2012 to a record low 1.5% in 2013. Energy consumption per unit was reduced 11.1% since the baseline year 2010. This increase in energy efficiency saved Kimberly-Clark nearly $90 million in energy costs to manufacture our products in 2013. These results were positively influenced by the execution of 95 discrete energy conservation/energy efficiency improvement projects implemented in our manufacturing facilities across the globe.

Energy Efficiency (million Btu/MT of production) 2010 2011 2012 2013
Actual 15.3 15.6 13.3 13.6
Benchmark Target (based on volume/mix of products) 14.3 14.3 12.9 13.4
Percent deviation (over-consumption) 6% 9% 3% 1.5%
Greenhouse Gas Emissions (million MT CO2e) 2010 2011 2012 2013
Direct (Scope 1) 2,532,226 2,483,048 2,379,935 2,243,926
Indirect (Scope 2) 2,919,432 2,912,934 2,874,870 2,856,695
Total emissions (CO2e) 5,451,659 5,395,982 5,254,805 5,100,621
Carbon dioxide (CO2) 5,398,851 5,336,053 5,220,373 5,066,093
Methane (CO2e) 13,562 12,913 8,272 8,332
Nitrous oxide (CO2e) 39,246 37,624 26,160 26,197
Change from previous year 0 1.0% 2.6% 3%
CO2e per metric ton of production 2,532,226 2,483,048 2,379,935 2,243,926

Note:
The U.S. emission factors were based on the 2011 U.S. EPA eGRID2010 version 2.1, and the international emission factors used the International Energy Agency Data Services "CO2 Emissions from Fuel Combustion (2011 Edition)," and 2010 data has been updated to reflect these new calculations.

At Kimberly-Clark, energy efficiency improvements are accomplished by identifying and prioritizing conservation initiatives through two strategies based on value delivered against our goals:

  • Global Energy Best Practices Adoption: 16 global energy best practices are used during the energy assessments at our manufacturing facilities to identify the most impactful initiatives to pursue, in order to reach our full potential energy efficiency. We have realized a significant increase in conservation by executing projects with highest economic payback first. Examples include installation of hot air showers to recover the waste heat back into the tissue process; high-efficiency lighting retrofit utilizing the latest LED technology; variable-frequency drives for pumps and fans, among many others.
  • Lean Energy Management: 14 facilities deployed Kimberly-Clark's "LEAN energy management" in 2013, saving a combined 2.9% in energy use against equivalent manufacturing volume within their facilities. This system is designed to engage mill employees in a culture of conservation, execute process changes oriented to optimize energy efficiency and deploy real time visual tools to make energy overconsumption visible, triggering corrective actions.
Piloted in mid-2010, Kimberly-Clark's El Salvador mill, Sitio del Nino (SDN), has saved more than $1.5 million a year in energy costs since the LEAN energy system was deployed. As a result of best-practice sharing, 14 additional facilities on three continents deployed the system, with savings of more than $3 million in 2013. The success has led to a plan which will total more than 15 facilities deploying their LEAN journey for energy conservation by the end of 2014.

Kimberly-Clark's Family Care division in North America saved $2 million and 10,000 MT of GHG a year by executing high efficiency lighting projects at Beech Island, Huntsville and Fullerton mills. In Beech Island and Fullerton the projects were eligible for Federal EPAct accelerated depreciation tax credit, which remained in place through 2013.

Direct Energy Use (trillion Btu) 2010 2011 2012 2013
Natural gas 29.5 30.3 30.3 29.7
% of total 51% 53% 68% 68%
Purchased biomass, purchased liquor 14.1 13.4 7.0 7.4
% of total 24% 24% 16% 17%
Coal 7.8 7.3 6.5 5.6
% of total 13% 13% 14% 13%
Self-generated liquor 5.0 4.5 0.0 0.0
% of total 9% 8% —% —%
Fuel oil 1.6 1.2 0.9 0.7
% of total 3% 2% 2% 2%
Other self-generated 0.16 0.18 0.1 0.1
% of total 0.3% 0.3% 0.3% 0.2%
TOTAL 58.1 56.5 44.7 43.5

Indirect Energy Use (trillion Btu) 2010 2011 2012 2013
Electricity 18.4 18.4 18.1 17.9
% of total 99% 99% 99% 99%
Steam 0.12 0.14 0.10 0.10
% of total 1% 1% 1% 1%
TOTAL 18.6 18.5 18.2 18.0

Energy Use (trillion Btu) 2010 2011 2012 2013
Non-renewable energy 57.1 56.7 55.7 54.0
% of total 75% 76% 88% 87%
Renewable energy 19.4 18.2 7.3 8.0
% of total 25% 24% 12% 13%
TOTAL 76.5 74.9 63.0 62.0
Energy efficiency (million Btu/MT of production) 15.3 15.6 13.3 13.6

Intermodal Transportation 2010 2011 2012 2013
Total loads 78,502 87,934 91,353 92,536
Annual change 0.22 0.12 0.04 0.013
Miles traveled (millions) 109.4 117.8 119.6 120.0
Savings ($M) 44.2 55.8 60.3 59.2
Fuel use (million gallons of diesel)
Intermodal 9.1 9.8 10.0 10.0
Comparable truck-only fuel use 18.2 19.6 19.9 20.0
Savings 9.1 9.8 10.0 10.0
CO2 emissions(million pounds—Scope 3)
Intermodal 204.7 220.4 223.8 224.4
Comparable truck-only fuel use 409.4 440.9 447.7 448.8
Savings 204.7 220.4 223.8 224.4

Notes:
Numbers are estimates.
Pounds of carbon dioxide emitted for each gallon of diesel fuel burned: 22.45

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