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1) it increases the glucose uptake and use by the tissue ( its work is insulin dependent, in other words it needs normal insulin secretion to act and it wont gain the insulin secretion) and this is why metformin is considered an anti-hyperglycemic agent and not a hypoglycemic agent.
2 it diminish the glucose absorption from intestines.
3 it diminish gluconeogenesis ( liver glucose formation generally from amino acids)

and for the kidney damage no it wont hurt them the drug is mostly renal excreted and it is contra indicated with renal problems.

Metformin's exact mechanism of action remains unclear chiefly extrapancreatic. The proposed mechanisms include:
Discount of hepatic gluconeogenesis (gluconeogenesis is formation of glucose from non-carbohydrate carbon substrates)
Decreased glucose absorption from intestine
Increased insulin binding to insulin receptors

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