Where permitted, and when appropriate, we communicate with government policy makers on matters that could significantly affect our businesses, employees, shareholders or customers.

Our involvement in public policy development is measured and responsible. We engage in policy matters that can have an appreciable impact on the execution of our Global Business Plan. This scope covers a wide range of policy areas, but our primary focus has been on energy, the environment and taxation issues.

Much of our engagement with policy makers takes place through business associations or coalitions of companies from a range of industries. Examples include leadership in the Absorbent Hygiene Products Manufacturers Association (AHPMA) Nappy Group, the EDANA Hygiene Absorbent Products Committee (HAPCO) and the Regulatory and Technical Task Force Board of the European Tissue Symposium. Some coalitions we belong to also include public interest and non-governmental organizations.

Kimberly-Clark does not currently contribute to political candidates, or to Political Action Committees that contribute to candidates, in the United States or Europe. We neither operate a Political Action Committee (PAC) nor make contributions out of company funds.

We comply with applicable laws regarding gifts, lobbying and other activities related to public policy engagement. Policy makers are an important stakeholder group, and our discussions with them form part of a long-term association. We greatly value any opportunity to increase their understanding of matters important to our businesses and stakeholders. Examples of our sustainability-related public policy activity in 2007 are:

Climate change

• Participating in the consultation process for the U.K. Climate Change Bill, and its potential impact on our pilot waste reduction projects and families using diapers.
• Developing a standard methodology for calculating a product’s carbon footprint with the U.K.-based Carbon Trust.
• Participation in the annual Carbon Disclosure Project request for information on K-C’s global climate change emissions and strategy.

Energy

• Applying available state incentives to develop a combined heat and power (CHP) plant at one of our U.S. facilities. This will reduce demand on the regional electricity grid and provide clean energy for K-C and other customers, including local businesses and residents.
• Supporting U.S. state legislation to encourage industrial use of landfill gas and other biomass to produce energy.

Recovered paper

• Working with the U.K. Government's Waste Resources Action Programme (WRAP) to improve the recovery of quality paper.
• Briefing Members of the European Parliament (MEPs) on the implications of exporting increased amounts of recovered paper to China.

Pediatrics

• Joined the Pediatric Continence Forum (PCF) in the U.K., to remain active in policy debate relevant to products such as Huggies DriNites youth pants.

Value Added Tax (VAT)

• Lobbying for reduced taxes on diapers in the 27 E.U. member states.