Professional Documents
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USLP Progress Report 2012
USLP Progress Report 2012
REPORT 2012
UNILEVER
SUSTAINABLE
LIVING PLAN
STRATEGY PROGRESS ON THE PLAN > GOVERNANCE >
1 Our Changing World 12 Health and Hygiene 50 Governance and External Commentary
2 Chief Executive Officer’s Review Improving hygiene and promoting well-being 52 Verification and Metrics
4 Our Compass Strategy 18 Nutrition
Helping people make healthy choices
5 Our Business Model
24 Greenhouse Gases
6 Embedding Sustainability Helping to tackle climate change
8 Operational Highlights 30 Water
10 Unilever Sustainable Living Plan in 2012 Reducing our water use where it matters most
34 Waste
Reduce, reuse, recycle
40 Sustainable Sourcing
Growing for the future
46 Better Livelihoods
Supporting economic development
In November 2010 we set out the Unilever Sustainable Living Plan (USLP),
our blueprint for achieving our vision to double the size of the business whilst
reducing our environmental footprint and increasing our positive social impact.
ABOUT OUR REPORTING
The Unilever Sustainable Living Plan: Progress Report 2012, published in April 2013, is complemented by: Boundaries for reporting
• The online Unilever Sustainable Living Report for 2012. Our website is our principal means of reporting. This Progress Report 2012 covers Unilever’s global
It includes more background to our progress on the USLP and the scope of our assurance programme operations for the period 1 January-31 December
as well as more detailed information on our approach to running a responsible business. It also contains 2012 unless otherwise stated. Data is provided for
indices that cross reference our performance to the UN Global Compact Principles, the Millennium Unilever’s wholly owned companies, subsidiaries
Development Goals and Global Reporting Initiative indicators. and key joint ventures and listed entities where
www.unilever.com/sustainable-living we have a majority ownership.
• Unilever’s Annual Report and Accounts 2012: Making Sustainable Living Commonplace, which outlines The Unilever Sustainable Living Plan is
our business and financial performance including key financial and non-financial performance indicators. independently assured. Further information
www.unilever.com/investorrelations on our approach to assurance can be found on
page 52.
WWW.UNILEVER.COM/SUSTAINABLE-LIVING
STRATEGY PROGRESS ON THE PLAN > GOVERNANCE >
OUR
CHANGING
WORLD
2 million
Children die every year from diarrhoea
and pneumonia
OUR PURPOSE
TO MAKE SUSTAINABLE
Climate change LIVING COMMONPLACE
Is accelerating towards a temperature
rise greater than 2 degrees We work to create a better future every day,
with brands and services that help people
Two-thirds
feel good, look good and get more out of life.
Our first priority is to our consumers – then
Of the world could be living in customers, employees, suppliers and
water-stressed conditions by 2025
communities. When we fulfil our responsibilities
40%
to them, we believe that our shareholders will
be rewarded.
Of the world’s agricultural land is
seriously degraded
40% rise
In food prices expected 2010-20
1 in 10
Of the adult population is obese while
almost 1 billion people go hungry
Unilever Sustainable Living Plan: Progress Report 2012 Our Changing World 1
CHIEF
EXECUTIVE
OFFICER’S
REVIEW
2 Chief Executive Officer’s Review Unilever Sustainable Living Plan: Progress Report 2012
STRATEGY PROGRESS ON THE PLAN > GOVERNANCE >
traceable oil. Investment in a new palm oil Through working with Oxfam on a study This is why we are working with organisations
processing factory in Indonesia, working of our business in Vietnam over 2011-12 we and initiatives such as the Consumer Goods
with partners and other initiatives are all have gained important insights into human Forum, the World Business Council for
helping us to make progress towards our and labour rights in our own and our Sustainable Development, the World
new commitment to 100% certified suppliers’ operations. The study has Economic Forum, the Tropical Forest Alliance
sustainable palm oil which is traceable implications for our global business. 2020, Refrigerants, Naturally!, the Global
back to the plantations on which it is grown. We are identifying how we can promote Green Growth Forum and the UN’s Zero
sustainable livelihoods for all our workers Hunger Challenge and Scaling Up Nutrition
We are also helping to improve the
and those in our value chains. initiatives. This is also why I agreed to join
livelihoods of farmers while guaranteeing
the UN Secretary General’s High Level Panel
future supplies, and we will increasingly In areas where big breakthroughs are
to review the Post-2015 Development Agenda.
place a special focus on women, due to the needed, we must step up joint working with
multiplier effect we know that women have others. Making more progress on healthy
LOOKING AHEAD
in developing societies. We are working with eating, for example, will require action
Despite the scale of the task, I believe
many partners, including with Rainforest across the industry whilst governments
we are on track to become a sustainable
Alliance on tea for Lipton, with Barry will need to take a bigger lead on action to
growth company. But one thing is sure
Callebaut on cocoa for Magnum and with combat climate change and decarbonise
– this will not be possible without the
vegetable farmers through Knorr’s energy supplies.
dedication and hard work of our 173,000
Sustainability Partnership Fund.
Overall it is clear that we will need creative colleagues and our many partners around
Brands that are starting to put their as well as science-based solutions if we the world. They are demonstrating the
sustainable living ambition at the heart of are to achieve our full ambition by the end power of purpose, making Unilever again
their proposition not surprisingly enjoyed of the decade. ‘fit to win’.
strong growth. Lifebuoy soap delivered
I hope this report gives you a good sense
another year of double-digit growth while WORKING WITH PARTNERS
of the progress we are making, and our
scaling up its handwashing campaigns. Partnerships are key to unlocking these
ambition for the future. Please contact me
Our Brush Day and Night oral health solutions. So I particularly want to thank the
if you have comments and suggestions that
campaign, which encourages parents and partners who are assisting us to deliver this
will help us at:
children to adopt good brushing habits, new business model: NGOs who are helping
reached 49 million people and has helped us to address real issues, suppliers who are Paul_Polman.SustainableLiving@unilever.com
our Signal brand grow by 22% since 2008. bringing us solutions for sustainable living,
and our customers with whom we share an Warm regards
We see an equal acceleration in
ambition to reach consumers at scale.
sustainability-led innovations, such as
great-tasting low fat margarines with With scale comes responsibility – so we
up to 80% less saturated fat than butter must continue to play a leadership role in
(and less environmental impact) and more seeking solutions for global transformational
concentrated detergents. issues like climate change, food security and
Paul Polman
poverty alleviation.
Chief Executive Officer
CHALLENGES REMAIN
We still face challenges in some
important areas.
Scaling up to reach 1 billion people
cost-effectively with hygiene programmes
that make handwashing a habit remains
a challenge. Equally, we are finding that
helping people to use less hot water and
energy when washing, showering and doing
the laundry is challenging. We continue to
experiment with ways to tackle this, such
as detergents which perform well in shorter
wash cycles, and dry shampoo which might
encourage people to wash their hair with hot
water less often.
Unilever Sustainable Living Plan: Progress Report 2012 Chief Executive Officer’s Review 3
OUR COMPASS
STRATEGY
POSITIVE
SOCIAL IMPACT
OUR COMPASS
The volatility and uncertainty facing the brands and innovation; marketplace; The Compass gives life to our determination
world remain the ‘new normal’ and are continuous improvement; and people. to build a sustainable business for the long
set to last for the medium term. These Our performance against these pillars term and to find new ways to operate that
ongoing pressures – economic, social and is explained in our Annual Report and do not just take from society and the
environmental – frame our approach to our Accounts 2012. First developed in 2009, environment. This is captured in the
business strategy and our business model. the Compass was sharpened in 2012 but Unilever Sustainable Living Plan (USLP).
its core elements remained the same.
We call our business strategy ‘the Compass’,
since it sets out a constant path for Unilever In 2012 we added our new purpose –
for the long term. The Compass lays out our “To make sustainable living commonplace”.
ambitious vision and purpose, and defines This builds on the original purpose of
four ‘Winning with’ pillars within the our 19th century founder, William Lever,
business that will help us achieve both: “to make cleanliness commonplace”.
4 Our Compass Strategy Unilever Sustainable Living Plan: Progress Report 2012
STRATEGY PROGRESS ON THE PLAN > GOVERNANCE >
OUR
Our business model is designed The inputs to the model, like The outputs of the model are
to deliver sustainable growth. those of all major packaged threefold: sustained growth;
For us, sustainability is integral goods manufacturers, are lower environmental impact;
MODEL
are rising, water is scarce, on to our Compass ‘Winning our vision statement.
energy is expensive, sanitation with’ pillars – both continuous
The diagram below represents
is poor in many areas and food improvement and the market
our virtuous circle of growth.
supplies are uncertain and place pillars support the
It summarises, simply, how we
expensive, we have both operations strand of the model.
derive profit from the application
a duty and an opportunity to
The differentiator in our of our business model.
address these issues in the
business model is our USLP and
way we do business.
the goal of sustainable living.
PROFITABLE COST
BRAN DS
VOLUME OUR LEVERAGE +
GROWTH EFFICIENCY
SUSTAINABLE
LIVING
S ON
OUR
ATI
ER
PE
OP
OP
E R
OU
L
INNOVATION +
MARKETING
INVESTMENT
Unilever Sustainable Living Plan: Progress Report 2012 Our Business Model 5
EMBEDDING
SUSTAINABILITY
In order to realise sustainable growth, a long-term view, we can reduce risk, sustainable business contribution
we are integrating sustainability into for example securing raw material supply in line with their positioning. Similarly,
our strategy, brands and innovation. through sustainable sourcing. And we have our Five Levers for Change methodology
We are working with our customers found that once we start looking at product is helping our brands prompt consumers
and suppliers, engaging employees development, sourcing and manufacturing to adopt new behaviours (see page 15).
and forging new partnerships. through a sustainability lens, it opens up
Innovation is critical to achieving our
great opportunities for innovation.
sustainable living goals. We are committing
OUR BUSINESS STRATEGY
Our product category and functional a significant proportion of our R&D budget
With 7 billion people on our planet, the earth’s
teams are playing a central role in driving to finding sustainability-led technologies.
resources can be strained. This means
sustainable growth. They review progress We are also supporting the commercialisation
sustainable, equitable growth is the only
against their targets quarterly. And in of innovative technologies through our
acceptable model of growth for our business.
2012 we asked our businesses in our investment arm, Unilever Ventures.
We believe growth and sustainability are
largest markets to identify a small number
not in conflict. In fact, in our experience, In 2012 our Open Innovation team launched
of priority areas where they can harness
sustainability drives growth. an online system which offers outside
the Plan to drive growth, such as
experts the chance to work with Unilever
handwashing with Lifebuoy soap in India
on research projects in a number of areas
and the Dove Self-Esteem Project in
that will promote sustainable living, such
the US.
DG
ROW
TH COST as cold-water wash laundry products.
-LE LEVERAGE +
ILI
TY EFFICIENCY We are linking progress to reward with We have received 150 submissions ranging
B
sustainable business goals in the remuneration from packaging design to energy-efficient
NA
AI
LE
SU
SS
PROFITABLE
SUSTAINABLE the environmental impacts of new products
VOLUME
sustainability champions covering every
GROWTH
LIVING and packaging, known as Innovation Process
key function, category and country.
Management. We use a simple traffic light
system to compare the potential impacts of
BRANDS AND INNOVATION
an innovation with the products we currently
We are accelerating the integration of
ST
market as well as the impacts on our
SU
AI
NA
sustainability into our brands. Brands are
BL
& C E INNO
INNOVATION + category portfolio.
OLL VATI
ABOR ON
ATION
MARKETING
INVESTMENT
developing their own USLP ambition – for
example Knorr has chosen sustainable
THE MARKETPLACE
sourcing. Our Brand Imprint model enables
Many retailers have sustainability goals.
us to take a 360-degree view of the social,
For the last three years we have worked
By focusing on sustainable living needs, environmental and economic impacts
on A Better Future Starts at Home, a joint
we can build brands with a significant of brands and – among other outputs
shopper programme with Tesco. It combines
purpose. By reducing waste, we create – triggered Lipton’s decision to source its
advice on sustainable living with promotions
efficiencies and reduce costs, which tea sustainably. We are now applying the
of sustainable products. Nine countries from
helps to improve our margins. By taking methodology to help brands make a
the UK to China have run the programme.
2011: 34.5 million 2011: See ◊ below 2011: 118.31kg 2011: 2.40m3
* Further details of our key financial indicators can be found in our Annual Report and Accounts 2012.
† These key non-financial indicators form part of the Unilever Sustainable Living Plan.
◊ Measured January-September 2012. In 2012 we moved to full volume-based (tonnes sold) reporting for this target. This number is not comparable to previously
reported numbers measured by product (stock keeping unit), see page 20.
†† NAMET refers to North Africa, Middle East and Turkey; AMET refers to Africa, Middle East and Turkey; and RUB refers to Russia, Ukraine and Belarus.
OUR CATEGORIES
Asia/AMET/RUB††
• Turnover €20.4 billion
• Underlying sales growth 10.6%
The Americas
• Turnover €17.1 billion
• Underlying sales growth 7.9% consumers worldwide use for 2012
• Underlying volume growth 3.1% a Unilever product
173,000 190
Around Products sold in over
Europe
• Turnover €13.9 billion
• Underlying sales growth 0.8%
• Underlying volume growth 0.9%
employees at the end of 2012 countries worldwide
FOR MORE: WWW.UNILEVER.COM/
INVESTORRELATIONS
† In our 2011 Progress Report we presented our people Improve employee health
and workplace targets as a standalone set of targets. and nutrition For more see page 24 >
In 2012 we incorporated these targets into the main body
of the Plan.
For more see page 18 >
* Throughout this document our environmental targets are
expressed on a ‘per consumer use’ basis. This means a
single use, portion or serving of a product (see page 53).
We have taken a lifecycle approach with a baseline of 2008.
+ In seven water-scarce countries representing around half
the world’s population (see page 53).
10 Unilever Sustainable Living Plan in 2012 Unilever Sustainable Living Plan: Progress Report 2012
STRATEGY PROGRESS ON THE PLAN > GOVERNANCE >
REDUCING ENHANCING
ENVIRONMENTAL IMPACT LIVELIHOODS
By 2020 our goal is to halve the environmental footprint of the making and By 2020 we will enhance the livelihoods
use of our products as we grow our business.* of hundreds of thousands of people as
we grow our business.
Our greenhouse gas and waste impacts per consumer use have reduced
and our water impact per consumer use has remained broadly unchanged.* We have trained around 450,000
smallholder farmers.
Halve the water associated with Halve the waste associated with By 2020 we will source 100% of By 2020 we will engage with at
the consumer use of our products the disposal of our products our agricultural raw materials least 500,000 smallholder
by 2020.* + by 2020.* sustainably. farmers and 75,000 small-scale
distributors in our supply network.
OUR WATER IMPACT PER OUR WASTE IMPACT PER 36% OF AGRICULTURAL
CONSUMER USE HAS CONSUMER USE HAS RAW MATERIALS 450,000 SMALLHOLDER
REMAINED BROADLY REDUCED BY AROUND 7% SUSTAINABLY SOURCED FARMERS TRAINED;
UNCHANGED SINCE 2010* SINCE 2010* BY END 2012 SMALLHOLDERS’ METRIC
IN DEVELOPMENT;
Reduce water use in the Reduce packaging Palm oil: 48,000 SMALL-SCALE
laundry process: Sustainable SHAKTI DISTRIBUTORS
Easy rinse products Recycle packaging: Traceable BY END 2012
Products that use less water Increase recycling and
recovery rates Paper and board Smallholder farmers
Reduce water use in skin Increase recycled content
Soy beans and soy oil Small-scale distributors
cleansing and hair washing
Reuse packaging
Tea
Reduce water use
Tackle sachet waste For more see page 46 >
in agriculture Fruit
Reduce waste from
Reduce water use in Vegetables
manufacturing:
manufacturing process:
Reduce total waste Cocoa
Reduce abstraction
Zero non-hazardous waste
New factories Sugar
to landfill
New factories Sunflower oil
For more see page 30 >
99 Eliminate PVC Rapeseed oil
Reduce office waste: Dairy
Recycle, reuse, recover
Fairtrade Ben & Jerry’s
Reduce paper consumption
Eliminate paper in processes Cage-free eggs
Increase sustainable sourcing
For more see page 34 > of office materials
Unilever Sustainable Living Plan: Progress Report 2012 Unilever Sustainable Living Plan in 2012 11
1 HEALTH AND
HYGIENE
IMPROVING HYGIENE
AND PROMOTING
WELL-BEING
12 Health and Hygiene Unilever Sustainable Living Plan: Progress Report 2012
STRATEGY > PROGRESS ON THE PLAN GOVERNANCE >
OUR PERSPECTIVE
Poor hygiene, lack of safe drinking water One brand which demonstrates this is piloting a sanitation programme between
and poor sanitation are the cause of millions Lifebuoy soap. It is also one of Unilever’s our Domestos toilet cleaner brand and
of preventable deaths. fastest-growing brands – it has achieved partners UNICEF and the World Toilet
double digit-growth over 2010-12. It is a good Organization. This will help us to take
These issues are closely interconnected.
example of how brands that help to address a more joined-up approach to improving
Evidence shows that individuals will be
social challenges can build brand equity and health through a concerted effort around
healthier and communities more productive
grow their business. clean water, sanitation and hygiene in future.
if they have access to clean water and better
sanitation and if they adopt improved We have made good progress towards The biggest challenge we face across
hygiene practices. our goal. Lifebuoy and Dove have extended all our programmes is to scale up cost-
existing partnerships and developed new ones. effectively. Forming the right partnerships
Unilever brands can play an important role
Our oral care brands are set to meet their with governments, NGOs and other
here. We make effective, affordable products
target much earlier than planned. We have experts is helping us. But to reach our
that improve health, hygiene and well-being.
also gained a better understanding of the ambitious targets, we need to move faster
As one of the world’s leading consumer
impact of our handwashing programmes. to widespread implementation.
goods companies, we can use our expertise
in marketing and delivering campaigns to We have also started to explore how we
reach large, diverse populations and achieve can develop a more systematic approach
a lasting impact on everyday behaviours. to water, sanitation and hygiene issues by
TARGET SUMMARY
Achieved: 0 On-plan: 5 Off-plan: 0 % of target achieved: 0
Unilever Sustainable Living Plan: Progress Report 2012 Health and Hygiene 13
1 HEALTH AND HYGIENE LIFEBUOY TARGETS COUNTRIES WITH
HIGH CHILD MORTALITY
During 2012 Lifebuoy launched handwashing programmes in seven new countries:
Egypt, Ghana, Nigeria, South Sudan, Uganda, Zambia and Zimbabwe.
Our behaviour change programmes are now running in 16 countries, reaching eight
of the top ten countries most affected by child mortality.
14 Health and Hygiene Unilever Sustainable Living Plan: Progress Report 2012
STRATEGY > PROGRESS ON THE PLAN GOVERNANCE >
PROVIDE SAFE
DRINKING WATER
OUR TARGETS
• We aim to make safe drinking water
available and affordable to 500 million
people through our Pureit in-home
water purifier by 2020.
OUR PERFORMANCE
45 million people have gained access
to safe drinking water from Pureit DOMESTOS TACKLES
since its launch in 2005, of whom
SANITATION CRISIS
OUR FIVE LEVERS FOR
10 million were reached in 2012.†
†
To be independently assured by PwC in 2013, see page 52.
* Randomised trial by the National Institute of Epidemiology,
based on 430 children in Chennai, India, 2005-06.
Unilever Sustainable Living Plan: Progress Report 2012 Health and Hygiene 15
1 HEALTH AND HYGIENE BRUSH DAY AND NIGHT
PROMOTES GROWTH
Our leading family health toothpaste brands,
Signal and Pepsodent, are growing strongly
thanks to our Brush Day and Night oral health
campaigns. Over 2008-12, Signal grew by 22%
worldwide. In Indonesia, one of our biggest
markets, sales of Pepsodent rose by nearly
16% in 2012 compared to the previous year.
16 Health and Hygiene Unilever Sustainable Living Plan: Progress Report 2012
STRATEGY > PROGRESS ON THE PLAN GOVERNANCE >
REDUCE WORKPLACE
INJURIES AND ACCIDENTS FUTURE CHALLENGES
Achieving our targets to reach such
significant numbers of people with
OUR TARGETS
hygiene messages and safe drinking
• We aim for zero workplace injuries.
water was always going to be challenging.
By 2020 we will reduce the Total
While we have made progress, we
Recordable Frequency Rate (TRFR)
recognise there is a considerable gap
for accidents in our factories and offices
to fill to achieve our goal.
by 50% versus 2008.
This is particularly true for Lifebuoy
OUR PERFORMANCE where we need to reach a further
45% reduction in TRFR at end 2012 881 million by 2015. We remain confident
DOVE BOOSTS compared to 2008, down from 2.1 to 1.16†
accidents per 1 million hours worked.
of our plans to scale up handwashing
programmes at a faster rate over the
SELF-ESTEEM AND next few years. Lifebuoy is focusing on the
BUSINESS SUCCESS OUR PERSPECTIVE
We are among the leaders in our industry
following priority areas to meet its target:
• increasing the impact of rural outreach
Part of the success of our Dove Self-Esteem on safety. Therefore the target to halve our through partnerships and multi-brand
Project has been an increased willingness injury rate is a stretching one and becomes programmes
among consumers to spread the brand’s progressively harder as we get closer to
affirmative message and to purchase our aim. • creating larger partnerships with a
Dove’s products. pioneering approach to co-investment
We measure our progress using an accident
Research by Millward Brown, a research rate (TRFR) which counts all workplace • rolling out a cost-effective and scalable
company, shows that among women in the injuries except those requiring only simple programme to new countries
US who are aware of the Dove Self-Esteem first aid treatment. With the exception of 2001, • learning from evaluation studies to
Project, 62% would recommend the Dove we have achieved continuous improvement identify and roll out best practice
brand to others – 16% more than among in our health and safety record since 1996.
those who are not aware of the project. In 2012 we continued this progress, reducing • continuing to raise the profile of
TRFR by 9% compared to 2011, from 1.27 to hygiene issues with governments,
Among women in Canada who are aware 1.16† per 1 million hours worked. key opinion formers and wider
of the project, 82% would be more likely to communities.
purchase Dove. These results motivate us However, reducing road traffic accidents
to continue to invest in the Project. remains a priority for protecting our people. To help more than a billion people improve
Much of our business growth comes from their hygiene habits, we also recognise the
developing markets where our sales people need to develop a more holistic approach to
are at increased risk because the local road the inter-related issues of water, sanitation
infrastructure can be poor. and hygiene. We are looking at how we
can promote affordable toilet provision
We have been working with Cranfield and good toilet hygiene for millions while
University in the UK and other partners to growing business for our Domestos brand.
develop a holistic approach that tackles We are working with partners such as
internal risks as well as collaborating with UNICEF and the World Toilet Organization
others to address external risks, such as to develop appropriate models to create
local road safety blackspots. and fulfil demand for toilets.
†
To be independently assured by PwC in 2013, see page 52. See our website for more
Unilever Sustainable Living Plan: Progress Report 2012 Health and Hygiene 17
2 NUTRITION
HELPING PEOPLE
MAKE HEALTHY
CHOICES
INDUSTRY NEEDS TO
COLLABORATE WITH
GOVERNMENT AND PUBLIC
HEALTH ORGANISATIONS.
NUTRITION
TARGET SUMMARY
Achieved: 1 On-plan: 5 Off-plan: 1 % of target achieved: 2
Note: Progress on targets for highest nutritional standards; salt; saturated fats; trans fat; and kilocalories is
measured January-September 2012. Progress on sugar target is measured January 2011-September 2012.
In 2012 we moved to full volume-based (tonnes sold) reporting for highest nutritional standards and salt.
SWEETNESS WITHOUT
CALORIES
Stevia, a sweetener derived from natural sources,
is meeting consumer demand for ingredients from
natural sources while also delivering a reduction in
sugar. While reducing sugar, we also improved the
taste of many of our Lipton ready-to-drink teas.
We continue to improve the fat composition REMOVE TRANS FAT REDUCE SUGAR
of our products by increasing the level of
essential fats. For practical reasons,
we generally increase essential fats at the
same time as we reduce saturated fat levels, OUR TARGETS OUR TARGETS
so the two targets are closely interlinked. • By 2012 we will have removed from all • Prior to 2010 we had already reduced
our products any trans fat originating sugar levels in our ready-to-drink teas.
from partially hydrogenated vegetable oil. By 2020 we will remove an additional 25%.
WE ARE SEEKING
INNOVATIONS TO HELP
PEOPLE REDUCE THEIR
GREENHOUSE GAS
IMPACTS.
GREENHOUSE GASES
OUR FOOTPRINT
25% 4% 2% 68% 1%
+ + + +
Raw materials Manufacture Transport Consumer use Disposal
TARGET SUMMARY
Achieved: 2 On-plan: 8 Off-plan: 1 % of target achieved: 0
Source for footprint and pie chart: Unilever 2011-12 footprint study across 14 countries. % of total in tonnes.
* Our environmental targets are expressed against a baseline of 2008 and on a ‘per consumer use’ basis. This means a single
use, portion or serving of a product. As of April 2013, our new automated system only allows us to compare our footprint to 2010
rather than to our original 2008 baseline.
OUR FOOTPRINT
The product categories which make the REDUCE GREENHOUSE REDUCE GREENHOUSE
largest contribution to our greenhouse gas GAS EMISSIONS FROM GAS EMISSIONS FROM
footprint are those where the consumer
requires heated water. Soap, shower gel
SKIN CLEANSING AND WASHING CLOTHES
and shampoo and conditioner products HAIR WASHING
alone account for more than half our
total footprint. OUR TARGETS
OUR TARGETS Reduce the greenhouse gas impact of
OUR GREENHOUSE GAS FOOTPRINT • By 2015 we aim to reach 200 million the laundry process by:
(% CONTRIBUTION BY CATEGORY 2011-12) consumers with products and tools
that will help them to reduce their • Concentrating our liquids and
2 2 11 greenhouse gas emissions while compacting our powders.
3
washing and showering. Our plan is
4 • Reformulating our products to reduce
to reach 400 million people by 2020.
5 greenhouse gas emissions by 15%
by 2012.
6 OUR PERFORMANCE
48 While we have made some limited • Encouraging our consumers to wash
progress, overall this target remains at lower temperatures and at the
6
challenging. correct dosage in 70% of machine
washes by 2020.
11
OUR PERSPECTIVE
The greatest greenhouse gas impact OUR PERFORMANCE
of our shampoos, shower gels and soaps 14% of our portfolio in our top 14
11
occurs when they are used by consumers countries was made up of concentrated
Soap and shower gel with heated water. During 2012 we and compacted products at end 2012,†
Laundry detergents and fabric conditioners
Shampoo and conditioners continued to explore a range of approaches compared to our baseline of 4%
Soups, sauces and stock cubes
Tea and beverages
to help us understand consumer in 2008.
Household cleaners behaviour to influence their showering
Ice cream
Margarine and spreads and bathing habits. These included: Over 95% (by volume) of our laundry
Mayonnaise, mustards and dressings the roll-out of dry shampoo under powders in our top 14 countries have
Deodorants
Toothpaste many brands such as Dove, Suave and been reformulated, achieving a
Skin care TRESemmé; a promotional offer of a reduction of 15% in greenhouse
free aerator with Radox shower gel in gas emissions.
South Africa; and crowd sourcing fresh
ideas on how to encourage consumers We communicate the benefits of
to reduce heated water in the shower. low-temperature washing on our
packs and online and are encouraging
We estimate that compared to washing our consumers to use the right dosage.
hair with heated water, using a dry
shampoo reduces CO2 by around 90%. OUR PERSPECTIVE
The dry shampoo market is still quite new Liquid laundry detergents are popular
and the number of users is relatively low; with consumers and in 2012 we were the
however quantitative consumer panel market leader in emerging markets, with
data from the US shows that for those market share of over 25%. The majority of
who bought a dry shampoo, it replaced our liquid detergents are now sold in
a wet wash in 60% of uses. This suggests concentrated form.
dry shampoo is a potential way to reduce
heated water in the shower by offering Concentrating our laundry products helps
a motivating beauty benefit which leads to reduce greenhouse gas emissions,
to a sustainable behaviour. and is good for our business – great
performance combined with lower material
and transport costs.
However, it can take time for consumers
to switch to concentrated or compacted
products and use the right dosage. Some
consumers continue to use larger doses
than needed, while others under-dose.
†
To be independently assured by PwC in 2013, see page 52. †
To be independently assured by PwC in 2013, see page 52.
ROAD MILES
OUR TARGETS OUR TARGETS
• By 2020 CO2 emissions from our global As part of our UltraLogistik transport network, As the world’s largest producer of ice
logistics network will be at or below we are creating regional distribution hubs. cream, we will accelerate our roll-out of
2010 levels despite significantly higher These will improve operational efficiency freezer cabinets that use climate-friendly
volumes. This will represent a 40% significantly and reduce total distance (hydrocarbon) refrigerants. When we
improvement in CO2 efficiency. travelled by 175 million km in Europe alone launched our Plan in November 2010 we
from 2013 to 2015 (compared to 2010). had already purchased 450,000 units with
We will achieve this by reducing truck These hubs are part-funded by the EU’s the new refrigerant.
mileage; using lower emission vehicles; programme for logistics operators who are
employing alternative transport such as committed to the sustainable transport of • We will purchase a further 850,000
rail or ship; and improving the energy goods across Europe. units by 2015.
efficiency of our warehouses.
We will have 12 hubs in Europe by 2014.
Each is responsible for ensuring that trucks OUR PERFORMANCE
OUR PERFORMANCE
are more fully loaded as they travel across Around 332,000 climate-friendly
10% improvement in CO2 efficiency since
Europe, which will reduce CO2 emissions freezers purchased in 2012, taking us
2010. 7% improvement in CO2 efficiency
by nearly 16,000 tonnes over 2010-14. to over 800,000 of our target of 850,000.
and a 7% reduction in absolute terms in
2012 compared to 2011.* Making our logistics more efficient delivers
real business benefits including reduced OUR PERSPECTIVE
costs, better business planning and Our climate-friendly hydrocarbon (HC)
OUR PERSPECTIVE
improved service. freezers have a negligible global warming
To get our products from our factories to
potential compared to those that contain
the market, we transport our goods over
hydrofluorocarbons (HFCs). They are also
1.5 billion km each year – the equivalent of
around 10% more energy efficient.
travelling to the moon and back more than
2,000 times. In addition to buying freezers with climate-
friendly refrigerants, we have been
We are leveraging this scale by creating
pioneering new models using state-of-
regional distribution hubs which will
the-art components to increase their
improve operational efficiency significantly
energy efficiency.
(see right).
Over 2010-12 we purchased around 290,000
To reach our 2020 target we need to
of these more energy-efficient freezers.
collaborate with external partners as we
do not own the trucks, trains and ships that We estimate that the energy efficiency of the
we use. We are making sustainability part of freezers we bought in 2012 avoided around
our working agreements with infrastructure 40,000 tonnes of CO2 emissions compared to
providers and operators. 2008 models.
We are working with industry to promote
the move to more environmentally friendly
freezers. We are driving an industry
commitment to phase out HFCs by 2015
through our participation in the Consumer
Goods Forum and as the chair of
Refrigerants, Naturally!
WATER
OUR FOOTPRINT
+ +
Water used in the agricultural raw
materials we source, measured in all Water we add Water used by consumers in water-scarce countries, measured in
water-scarce countries in the world to the product seven water-scarce countries representing around half the world’s population
TARGET SUMMARY
Achieved: 0 On-plan: 5 Off-plan: 1 % of target achieved: 0
Source for footprint and pie chart: Unilever 2011-12 footprint study across 7 water-scarce countries. % of total * Our environmental targets are expressed against a baseline of 2008 and
in litres. Our baseline for water includes the water used by consumers with our products and the water in the on a ‘per consumer use’ basis. This means a single use, portion or serving
formulation. We have calculated the water used in agriculture in a separate study which covers all water-scarce of a product. As of April 2013, our new automated system only allows us to
countries in the world, see www.unilever.com/sustainable-living/water/footprint/ compare our footprint to 2010 rather than to our original 2008 baseline.
OUR FOOTPRINT
Our water footprint is calculated in seven REDUCE WATER USE IN REDUCE WATER USE IN
countries which we have defined as water- THE LAUNDRY PROCESS SKIN CLEANSING AND
scarce, accounting for around half the
world’s population (see page 53).
HAIR WASHING
Our analysis shows that around 38% of OUR TARGETS
our water footprint comes from the laundry We will reduce the water required in the OUR TARGETS
process – a significant proportion of laundry process by: • By 2015 we intend to reach 200 million
this is washing laundry by hand in the consumers with products and tools
developing world. • Making easier rinsing products more
that will help them to use less water
widely available.
A further 39% of our footprint comes from while washing and showering. Our
showering, bathing and washing hair with • Providing 50 million households in goal is to reach 400 million by 2020.
our products. water-scarce countries with laundry
products that deliver excellent results OUR PERFORMANCE
OUR WATER FOOTPRINT but use less water by 2020. In 2012 we have improved our
(% CONTRIBUTION BY CATEGORY 2011-12) understanding of this area but
OUR PERFORMANCE progress remains slow.
8
In 2012 we launched Comfort One Rinse,
10 our fabric conditioner, in India and OUR PERSPECTIVE
Cambodia and expanded the Comfort Around 39% of our domestic water
38 One Rinse range in Thailand, Vietnam, footprint occurs when people use our
Indonesia and the Philippines. soaps, shower gels and shampoos and
13
they can be slow or reluctant to change
In 2012 One Rinse products were used their habits. We have undertaken several
in 1.4 billion washes in 28.7 million studies in different countries to improve
households worldwide, a 66% increase our understanding of people’s showering
on 2010.† behaviour and how it can be influenced.
For example, our shower study of 100
31 OUR PERSPECTIVE households in Australia gathered data
We assessed both these targets as off on shower habits and the relationship
Laundry detergents and fabric conditioners
Soap and shower gel track in our last Report. Compared to 2011, between consumer behaviour and product
Household cleaners we have more projects agreed in our use. We installed sensors to measure the
Toothpaste
Shampoo and conditioners innovation pipeline that give us confidence duration, water use and frequency of
we will make greater progress in the showers. We found the average shower
The chart above shows the water associated coming years. We have also significantly lasts about 9 minutes, longer than the
with the consumer use of our products. expanded One Rinse products and sales are average UK shower of 8 minutes.
growing, so we have assessed our progress We have introduced two innovations that
as back on track to reach our 2020 target. provide consumer benefits and encourage
In water-scarce countries, around 38% of less water use: dry shampoo, which
domestic water is used to clean clothes. refreshes the hair without water, and
In many of these areas, people wash Lifebuoy foam handwash which can cut
garments by hand. Our One Rinse fabric water use by 18%.
conditioner reduces the amount of water
needed to remove detergent residues to one
bucket rather than three. This can save up
to half the water per wash, around 30 litres,
if used correctly.
In 2012 we continued to introduce this
product to new countries and it is now
available in India and Cambodia. It has
a leading position in some markets,
accounting for 38% of the fabric conditioner
market in Vietnam and has risen to
a quarter of the market in Indonesia.
†
To be independently assured by PwC in 2013, see page 52.
ECO-EFFICIENCY
AVOIDS €17 MILLION
IN COSTS
Investment in cost-effective technologies in
our factories – along with the treatment of
process effluents to enable water reuse and
increased monitoring – has avoided over
€17 million in cumulative cost since 2008.
WASTE
OUR FOOTPRINT
+ + –
National index of materials
Primary packaging Transport packaging Product leftovers recycled and recovered / estimates
TARGET SUMMARY
Achieved: 1 On-plan: 9 Off-plan: 1 % of target achieved: 1
Source for footprint and pie charts: Unilever 2011-12 footprint study across 14 countries. We set our baseline by calculating the waste from over 1,600 representative products. We did
% of total in tonnes. this at an absolute level as well as on a per consumer use basis in 14 countries. The calculation
* Our environmental targets are expressed against a baseline of 2008 and on a ‘per consumer use’ covers 70% of our volumes. As of April 2013, our new automated system only allows us to
basis. This means a single use, portion or serving of a product. compare our footprint to 2010 rather than to our original 2008 baseline.
OUR FOOTPRINT
Our analysis has highlighted that our food REDUCE PACKAGING CUTTING
packaging is one of the biggest contributors PACKAGING COSTS
to our waste footprint. But to achieve our
goal we will need to reduce waste across The material we use to wrap our ice cream
OUR TARGETS brands, Twister, Paddle Pop and Fruttare is
all product categories by reducing the • By 2020 we will reduce the weight
weight of packaging and by helping to made of layers. Our R&D experts, working
of packaging that we use by a with academics and suppliers, have
increase recycling. Tea bags form a third through:
significant proportion of product leftovers. developed new materials which reduce both
- lightweighting materials the number of layers and their thickness.
OUR WASTE FOOTPRINT The results speak for themselves. These
- optimising structural and
(% CONTRIBUTION BY CATEGORY 2011-12) brands have reduced their use of flow
material design
4 wrap from 19 specifications to just three
5
17 - developing concentrated versions worldwide. This change reduces the amount
5 of our products of packaging we use and has immediate
5 - eliminating unnecessary packaging. business benefits. We started rolling out
these materials in 2012. When our roll-out
7 11 OUR PERFORMANCE is complete, we anticipate a saving of around
An estimated 9.5% reduction in weight €1.3 million, complemented by a material
per consumer use over 2011-12 reduction of around 530 tonnes.
8
compared to 2010, achieved through
11 a combination of lightweighting and
8 material design optimisation.
9 10
OUR PERSPECTIVE
Soups, sauces and stock cubes We are making good progress to reduce
Soap and shower gel
Tea and beverages our packaging. We have traditionally
Laundry detergents and fabric conditioners
Deodorants
focused on reducing packaging material
Shampoo and conditioners simply as a route to cutting costs. But our
Ice cream
Mayonnaise, mustards and dressings focus has changed. We are now focusing
Household cleaners on developing innovation in lighter,
Margarine and spreads
Skin care stronger and better materials that have
Toothpaste a lower environmental impact. To help us
do this we have established a Materials
Capability Group who work together with
OUR WASTE FOOTPRINT
suppliers to develop new technologies.
(% CONTRIBUTION BY MATERIAL TYPE
2011-12) New technologies are critical to ensure
3 3 we have a continuous programme for
4
packaging reductions. For example,
11 33
we have reduced the number of layers
and the thickness of the sachet materials
used for our hair products in South East
Asia, and we will now roll this out across
India, Pakistan and Bangladesh. Once the
13 roll-out is complete, we will save around
2,500 tonnes of material.
16 17
SUSTAINABLE SOURCING
TARGET SUMMARY
Achieved: 1 On-plan: 15 Off-plan: 1 % of target achieved: 0
†
To be independently assured by PwC in 2013, see page 52.
OUR TARGETS
• We will source all sunflower oil
sustainably by 2020.
OUR PERFORMANCE
14% of sunflower oil sustainably sourced In the UK, we have worked closely with the
by end 2012. sustainable agriculture NGO, LEAF (Linking
Environment And Farming), and our supplier
OUR PERSPECTIVE ADM to source certified rapeseed oil at scale
In 2011 we scoped pilot projects for for the first time.
sustainable sunflower oil in several regions,
but these took longer than expected to come
to fruition. However, in 2012, we were able
to source our first sustainable sunflower oil
and are back on track to achieve our target.
Our supplies were self-verified according
to our Sustainable Agriculture Code and
sourced from Hungary via Cargill and from
South Africa (see above).
OUR PERFORMANCE
More than 95% of paper-based materials
from certified sustainable forests or
recycled sources by September 2012.
OUR PERSPECTIVE
We are making good progress towards our
2013 target and will continue to work closely
with our suppliers to ensure the robustness
of our reporting process. See our website for more
BETTER LIVELIHOODS
TARGET SUMMARY
Achieved: 0 On-plan: 2 Off-plan: 0 % of target achieved: 0
OUR PERFORMANCE
ASSESSING OUR We operate similar schemes in Bangladesh,
Sri Lanka and Vietnam which we are also
We continue to engage with partners IMPACT committed to expanding.
to develop an effective methodology
In 2012 we commissioned an independent OUR PERFORMANCE
to assess improvement in livelihoods
assessment to evaluate livelihoods, focusing 48,000 entrepreneurs (‘Shakti ammas’)†
in our supply chain network.
especially on the impact Rainforest Alliance were selling products to over 3.3 million
(RA) certification has had on smallholders households in over 135,000 Indian
OUR PERSPECTIVE
and their farm workers in our tea supply villages in 2012.
Through our supply partnerships we have
chain in Kenya.
helped to train 450,000 tea farmers in
sustainable practices, around 150,000 more The study confirmed that RA-certified OUR PERSPECTIVE
than in 2011. Over 300,000 of them have farmers and their workers experience Recruiting and training female entrepreneurs
achieved Rainforest Alliance certification, greater improvements than non-RA- (Shakti ammas) is a resource-intensive
the majority of whom are smallholders in certified farmers in several areas of social, process. During 2012 we worked with our
Kenya. Elsewhere we have supported cocoa economic and environmental well-being. existing entrepreneurs to help them grow
farmers to gain Rainforest Alliance However this is not uniform, as in some and develop their businesses. This has helped
certification in West Africa. areas, non-certified farmers reported to consolidate and strengthen our network.
similar positive impacts. We are planning to expand our rural
We are focusing our effort on interventions
which improve agricultural practices. This is a complex area, and we are assessing distribution over 2013-15 to reach more
We want to demonstrate that these the results and undertaking other studies small, remote villages. Engaging more Shakti
enhance livelihoods. Having examined with NGOs and other partners to understand ammas is an important part of this plan.
existing assessment methodologies, we the best way to achieve the right outcomes. Shakti sales people have proved successful
decided to consult NGO and supply chain in increasing our presence in rural areas
partners on how to develop a livelihood and building strong local relationships with
assessment methodology which is simple, consumers, which encourages brand loyalty.
quick and affordable. Our goal is to develop The model we use improves the lives of our
and test this methodology in 2013. sales people and their families, usually
Although we still have much to do to doubling the income of the household.
demonstrate the impact of our work, our The programme was extended in 2010 to
procurement standards and our ability to include ‘Shaktimaans’ who are typically
share best practice mean we can have an the husbands or brothers of the Shakti
important influence on the wider sector. ammas. They sell our products by bicycle to
In our Sunrise partnership with Oxfam GB, surrounding villages, covering a larger area
we have moved from a single programme than Shakti ammas can do on foot. There are
to learning by engaging with a number of over 30,000 Shaktimaans across India and we
smallholder farmer programmes run by have plans to enlarge the programme in 2013.
our suppliers. The aim is to develop clear These 30,000 Shaktimaans complement our
blueprints for inclusive business models, 48,000 Shakti ammas.
which deliver both commercial success
and help improve social, environmental
and economic conditions.
†
To be independently assured by PwC in 2013, see page 52.
50 Governance and External Commentary Unilever Sustainable Living Plan: Progress Report 2012
STRATEGY > PROGRESS ON THE PLAN > GOVERNANCE
Unilever Sustainable Living Plan: Progress Report 2012 Governance and External Commentary 51
VERIFICATION
AND METRICS
52 Verification and Metrics Unilever Sustainable Living Plan: Progress Report 2012
STRATEGY > PROGRESS ON THE PLAN > GOVERNANCE
OUR METRICS
Our Plan has three big goals to improve OUR METRICS
health and well-being, reduce environmental
impact and enhance livelihoods. Supporting
these goals are seven commitments HEALTH AND HYGIENE (PAGE 12) WASTE (PAGE 34)
underpinned by targets spanning our social, The number of people reached on a Waste per consumer use: packaging
environmental and economic performance cumulative basis by an intervention and product leftovers that have not been
across the value chain. which, based on past studies, can be reused, recycled or recovered (grams).*
In our 2011 Progress Report we presented expected to result in sustained, positive
We define waste as the amount of product
our people and workplace targets as a behaviour change.
left in the pack, and the amount of
standalone set of targets. In 2012 we packaging that ends up either in landfill
incorporated these targets into the main NUTRITION (PAGE 18)
or as litter, ie the amount of packaging
body of the plan. The percentage of products which
that is not recycled, reused or recovered
meet the highest nutritional standards,
Listed in the box are the key metrics for energy recapture. Our metric requires
based on globally recognised dietary
we use to measure progress on our the use of published national indices
guidelines for all four priority nutrients:
commitments. for recycling and recovery, or our own
salt, saturated and trans fat and sugar.
estimates where these are not available.
From 2012, these are measured by volume
OUR ENVIRONMENTAL FOOTPRINT rather than by product. The metric excludes the waste generated
PER CONSUMER USE by our manufacturing operations which
To measure our big goal to halve the GREENHOUSE GASES (PAGE 24) we measure as part of our eco-efficiency
environmental footprint of the making and Greenhouse gases per consumer use: programme (see Reduce waste from our
use of our products ‘per consumer use’* for CO2 equivalents across the product manufacturing, page 38).
GHG, water and waste is a complex process. lifecycle (grams).*
It requires a detailed analysis of the water, SUSTAINABLE SOURCING (PAGE 40)
waste and greenhouse gas impacts of Our metric measures the greenhouse
Raw or packaging material sourced
thousands of products spread across gas emissions associated with the
from verifiable sustainable renewable
14 countries. The calculation accounts for lifecycle of a product from raw materials,
sources or made from recycled materials
70% of our volumes. to manufacturing to consumer use and
(% by weight).
disposal.
For each product, we analyse sourcing
and ingredient information, manufacturing BETTER LIVELIHOODS (PAGE 46)
WATER (PAGE 30)
impacts and data on consumer habits We recognise that it is difficult to provide
Water per consumer use in water-scarce
(which often vary by country). evidence of improvements in livelihoods.
countries: water added to the product
We are developing an appropriate
In 2012 we invested in an automated system plus the water used by consumers in
methodology to do this.
to improve the speed and accuracy of our water-scarce countries (litres).*+
footprint calculations, which we measure on Our metric excludes water used in * The metrics for our commitments for greenhouse gases
a rolling-year basis from 1 July to 30 June. agriculture, and water used in our (GHG), water and waste are expressed against a baseline
Currently, this system only allows us to manufacturing operations which we
of 2008 and on a ‘per consumer use’ basis. This means
a single use, portion or serving of a product, eg the GHG
compare our footprint to 2010 rather than measure as part of our eco-efficiency impact of drinking a single cup of tea; the water needed for
our original 2008 baseline. programme (see Reduce water use in one hair wash with shampoo; or the waste associated with
one serving of soup.
our manufacturing process, page 33).
+ Water-scarce countries: China, India, Indonesia, Mexico,
South Africa, Turkey and USA, representing around half
the world’s population.
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