Our business has always been driven by a sense of purpose, social missions to improve

health, hygiene and livelihoods in their communities.

We continue to believe that business must make a positive contribution to addressing the
challenges the world faces and that this is the only way a business will succeed.
The Unilever Sustainable Living Plan, launched in 2010, laid the blueprint for achieving this
strategy. We continue to work towards the ambitious targets we have set ourselves for
halving our environmental impact, improving the health and wellbeing of 1 billion people,
and enhancing the livelihoods of millions.

Our Corporate Purpose states that to succeed requires "the highest standards
of corporate behaviour towards everyone we work with, the communities we
touch, and the environment on which we have an impact."

Always working with integrity

Positive impact

Continuous commitment
our goal has been to improve the lives of the world’s citizens one day and one person at a
time.
Our mission has not changed much since then and with the Unilever Sustainable Living
Plan we are still showing there is a different way of doing business – one based on multiple
stakeholders rather than a single-minded focus on shareholders.
Companies that cannot show they are making a positive impact in addressing
challenges like hunger, climate change, gender equality or access to education will
soon, in my view, have no reason for being. There is no business case for enduring
poverty and no reason to accept companies that are run for the benefit of a few at a
cost to many.

There are still many challenges to overcome, including the short-term focus of financial
markets, the difficulty in giving social or environmental capital a true value and political
systems too often focused on the next election cycle instead of the next generation.

Our work with many valued partners has allowed us to make good progress against our
targets and we have learned from our experience as well as our mistakes. However, for
as long as many of our fellow citizens still feel excluded from a decent life or from equal
opportunities, there is no reason to celebrate.

We simply and humbly request your continued help. It is only in deep partnerships,
based on trust and mutual respect, inclusion and intergenerational thinking, that we can
solve our many challenges. More than ever, we are committed to living our purpose and
continuing to use the USLP as a blueprint for growth. Together we can create a better
world for all, now and for generations to come.

Today our purpose is simple but clear - to make sustainable living

commonplace.
Sustainable, equitable growth is the only acceptable business model. Our strategic vision is
to grow our business whilst decoupling our environmental footprint from our growth and
increasing our positive social impact.
We are working with others to create transformational change beyond our business while
our brightFuture campaign is motivating millions of people to take small, everyday actions
that together make a big difference.

A strong business case

With 7 billion people on our planet, the earth’s resources are increasingly strained.
Sustainable, equitable growth is the only acceptable model for our business. But growth
and sustainability are not in conflict.

Our four-point framework shows how sustainability drives value for our business.

More growth - sustainability creates innovation opportunities, opens up new markets and
allows our brands to connect with consumers in new ways. Consumers are responding -
our Sustainable Living brands are growing faster than the rest of our business.

Lower costs - by cutting waste and using resources carefully we create efficiencies, cut
costs and improve margins, while becoming less exposed to the volatility of resource
prices. Since 2008 we have avoided costs of over €700m through eco-efficiency in our
factories.

Less risk - operating sustainably helps us future-proof our supply chain against the risks
associated with climate change and long-term sourcing of raw materials. By 2016, 51% of
our agricultural raw materials were sustainably sourced.

More trust - placing sustainability at the heart of our business model strengthens our
relationships. It helps us maintain our value and relevance to consumers, whilst inspiring
Unilever’s current and future employees. For example, in 2016, we maintained our status
as the Graduate Employer of Choice in the fast-moving consumer goods sector among 34 of
the 60 countries we recruit from.

Our blueprint – the Unilever Sustainable Living

Plan
 Our Sustainable Living Plan provides the detailed blueprint for how we will achieve our
purpose. It covers all aspects of our business, each of our brands and categories and every
country we work in. It seeks to create change across our value chain – from our operations,
to our sourcing and the way consumers use our products. It is designed to drive profitable
growth and fuel innovation and to do so in the right way so that all our stakeholders feel
the benefits.

The Plan, launched in 2010, is built around three big goals.

Improving health and well-being Reducing environmental impact Enhancing livelihoods

By 2020 we will help more By 2030 our goal is to halve the By 2020 we will enhance
than a billion people take environmental footprint of the making the livelihoods of millions
action to improve their and use of our products as we grow of people as we grow our
health and well-being. our business. business.

Transformational change beyond our business

Many sustainability challenges are complex and global in scale. Tackling them requires
change to whole systems and ways of working. Collaboration between business,
governments, NGOs and others is crucial if we are to achieve this change – through
partnerships such as the World Business Council for Sustainable Development’s Action
2020, the Tropical Forest Alliance 2020 and the Global Task Force for Scaling up Nutrition.

Our Sustainable Living Plan provides the blueprint for change within our organisation and
supply chain. But we want to go further and we’ve identified four key areas where we can
use our scale and influence to help bring about transformational change:

 taking action on climate and halting deforestation

 improving livelihoods and creating more opportunities for women
 improving health and well-being
 championing sustainable agriculture and food security.
Through our Sustainable Living Plan and transformational change agenda, we’ll play our
part in helping to achieve the ‘zero poverty and zero carbon’ goals.

We’re still learning

We’ve had some great results from our Sustainable Living Plan. We know it contributes to
business growth as we see consumers responding to campaigns by our Sustainable Living
brands - such as Hellmann’s, Breyers and Omo - on issues ranging from sustainable
sourcing to water scarcity.

One of our biggest challenges is our ability to stimulate change outside our business, where
we don’t have direct control. For example, while we’ve made good progress on reducing
greenhouse gas emissions (GHG) from our factories and reached our 2020 target by 2016,
the GHG impact of our products per consumer use has increased by 8% since 2010. We’ve
updated ourGHG strategy to reflect what we’ve learnt.

We are continually looking for new ideas and ways to influence our wider value chain. We
know that collaboration with others holds the key to tackling many sustainability
challenges and we will be focusing even more on this in the years ahead. Our
transformational change initiatives will help us to bring about the systems change needed
to address some of the most complex social and environmental problems.

Purpose-led brands will drive growth

Putting sustainable living at the heart of our brands is inspiring our consumers and
growing our sales. The concept of ‘purpose-led’ brands is not new. Among our own brands,
Lifebuoy and Ben & Jerry’s have had a social or environmental purpose at their heart since
they were founded.

However, in today’s complex and interconnected world, a powerful purpose alone is not
enough and brands must look their impacts across the board. Brands cannot do social good
while harming the planet, or improve the lives of women who buy our products while
ignoring the working conditions of the women who make them.

How we define a Sustainable Living brand

We have created a definition of what makes a true ‘Sustainable Living’ brand. Such a brand
must not only have a clear purpose that contributes to a social or environmental concern;
the product itself must also contribute to one or more of the targets we have set in our
Unilever Sustainable Living Plan.

To assess product and purpose, we developed a methodology to help us determine how,

and to what extent, each brand delivers against the two criteria. It enables brands to
generate a systematic view of their progress across social and environmental factors. In
2016, we analysed our top brands using this methodology. Our analysis revealed that in
2015 our 12 Sustainable Living brands delivered nearly half our growth and grew 30%
faster than the rest of the business. These brands again drove nearly half our growth in
2016, but this time they grew 40% faster.

We believe that if we want to effect change at scale, we will achieve this by making large,
successful, category-defining brands recognisably sustainable. Our big brands such as
Dove, Dirt is Good, Knorr, Hellmann’s and Lipton are all Sustainable Living brands.