- Kimberly-Clark has made good progress in sustainability, its latest annual sustainability report shows.
- Progress in sustainability is important, since it creates a competitive advantage for the company.
- Earlier we mentioned that the company is focusing on innovative product launches, but the company is also creating solid competitive advantage by scoring impressive sustainability, which we didn’t mention.
- The company’s impressive progress toward "Sustainability 2015" confirms our investment thesis for the company.
Kimberly-Clark (NYSE:KMB) has made impressive progress in sustainability, according to its recently published annual sustainability report. Progress in sustainability is important, since it creates a competitive advantage for the company - whether it's direct value, like cost savings, or indirect value, like the ability to recruit and retain top talent. The company has achieved an encouraging 26.4% reduction in water use in manufacturing in 2013, beating its 2015 goal of 25%. The company continued to innovate in product development, and 37% of its net sales are now coming from environmentally innovative products.
The company's "Sustainability 2015" is an important mission for its business, which has been built around three pillars, viz., People, Planet and Products. It aims at integrating social, environmental and economic elements into the company's agenda. The company is on track to achieve most of the Sustainability 2015 goals, which we believe is a bullish signal from investors' point of view.
In our original article we mentioned that the company is focusing on innovative product launches. The company has also created a rock solid moat around its business by scoring impressive sustainability. However, we believe that in addition to innovative product launches, innovative marketing strategy is also needed for driving the revenue growth of the company's consumer care business globally, which we analyzed in greater details in our original analysis.
Business relationship disclosure: The update has been written by a BB Research stock analyst. BB Research is not receiving compensation for it (other than from Seeking Alpha). BB Research has no business relationship with any company whose stock is mentioned in this article.