We are conscious that making, using and disposing of our products also have wider social, environmental and economic impacts, and are committed to making both our products and operations more sustainable. For K-C, this means acting responsibly to preserve resources for future generations. It also involves being a fair and responsible employer, challenging our employees to help us meet our sustainability commitments, and supporting the communities and countries where we live and work.

The business case for sustainability

Working towards sustainability is not only the right thing to do, it is a business imperative. Recent and continuing global developments have accentuated the need to become more sustainable. Pressure on natural resources intensifies rapidly as markets develop worldwide. Global financial conditions have increased the need for efficiency, cost effectiveness and principled management.

Sustainable business practices provide tangible opportunities and benefits, including:

• Reduced costs from improved operational efficiency and lower energy and raw material use. For example, we expect to save $13 million per year beginning in 2009 by installing a combined heat and power energy system at our tissue mill in New Milford, Connecticut. This will reduce greenhouse gas emissions, stabilize energy costs and reduce demand on the local electricity network.
• Competitive advantage from developing more sustainable products that meet customer and consumer expectations. For example our K-C Professional business sells many of its products on an efficiency-in-use basis, as users need less of our product to do the same job as comparative competitive products, thereby reducing usage, waste and cost.
• Reduced exposure to risk through anticipating and managing or avoiding events that could increase costs, reduce market share or damage our reputation.
• Motivated employees and greater interest from prospective employees.

Customers, shoppers and users of our products as well as governments, non-governmental organizations (NGOs), investors, and current or potential employees all recognize the importance of sustainability and seek information on our approach and performance.

In 2008, K-C led the personal products category of the Dow Jones Global Sustainability Index for the fourth consecutive year. In fact, we are one of only two personal products companies that earned a spot in the 2008 index.

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