2 billion lack access to safe drinking water. We have to produce as much food in the next 40 years as we have in the last 8,000

Transcription

1 Progress Report 2011

2 THE context The word faces unprecedented chaenges Uniever s response to these goba chaenges Popuation has passed 7 biion and is growing by 77 miion a year Cimate change is acceerating Water is scarce 2.8 biion peope ive in water-stressed regions Food production has to increase by 70% to meet goba demand in 2050 Obesity and under-nutrition continue to rise We are burning up resources at the rate of 1.5 panets according to WWF s Living Panet Index contents Equivaent to a city the size of London being created every six weeks Heading towards a temperature rise greater than 2 degrees 2 biion ack access to safe drinking water We have to produce as much food in the next 40 years as we have in the ast 8,000 1 in 10 of the adut popuation is obese whie 1 biion peope go hungry If everyone ived ike an average European, we woud need three panets With products on sae in over 190 countries, Uniever is confronted daiy by the reaity of poor hygiene, poor nutrition, water scarcity and the impact of a changing cimate on the farmers who suppy us. For 20 years we have been taking action to meet these chaenges Started a Sustainabe Agricuture Programme for our suppiers and an eco-efficiency programme for our factories 1996 Co-founded the Marine Stewardship Counci with WWF 2000 Began work, with Greenpeace, to remove HFC refrigerants from our ice cream freezers 2002 Lifebuoy soap s campaign to raise awareness of the importance of handwashing was aunched 2003 Co-founded the Roundtabe on Sustainabe Pam Oi Estabished our Nutrition Enhancement Programme 2007 Committed to source tea sustainaby 2008 Committed to source a pam oi from certified sustainabe sources by Leading advocate of the Consumer Goods Forum s commitment to eiminate deforestation from our suppy chain Proud as we are of this work, we know that we have much more to do if we are to ive up to the scae of the chaenges. That is why we aunched the Uniever Sustainabe Living Pan in November 2010 the next step on our sustainabiity journey. 1 Introduction 2 Buiding a sustainabe business highights 4 Our impacts across the vaue chain 6 The Uniever Sustainabe Living Pan 8 Summary of progress: n Heath and hygiene 14 n Nutrition 18 n Greenhouse gases 22 n Water 26 n Waste 30 n Sustainabe sourcing 34 n Better iveihoods 36 n Peope 38 Externa commentary 40 Verifying our approach

3 Introduction How to grow sustainaby is the biggest chaenge facing companies everywhere. The great chaenge of the 21st century is to provide good standards of iving for 7 biion peope without depeting the earth s resources or running up massive eves of pubic debt. To achieve this, government and business aike wi need to find new modes of growth which are in both environmenta and economic baance. In the years since 1945 goba capitaism has deivered much that is positive. It has ifted hundreds of miions of peope out of poverty. It has heped catayse a second agricutura revoution and, more recenty, it has given birth to digita technoogy which is transforming a our ives. But capitaism is not a panacea. For those things which we find hard to put a price on biodiversity, carbon, natura capita the market has faied us. As a resut we ive in a word where temperatures are rising, natura resources are being depeted, species oss is acceerating and the gap between rich and poor is increasing. This is competey unsustainabe. New Modes of Business Business has to decide what roe it wants to pay. Does it sit on the sideines waiting for governments to take action or does it get on the pitch and start addressing these issues? In Uniever we beieve that business must be part of the soution. But to be so, business wi have to change. It wi have to get off the treadmi of quartery reporting and operate for the ong term. It wi have to see itsef as part of society, not separate from it. And it wi have to recognise that the needs of citizens and communities carry the same weight as the demands of sharehoders. We beieve that in future this wi become the ony acceptabe mode of business. If peope fee that the system is unjust and does not work for them, they wi rebe against it. And if we continue to consume key inputs ike water, food, and and energy without thought as to their ong-term sustainabiity, then none of us wi prosper. The Uniever Sustainabe Living Pan Uniever s future success depends upon being abe to decoupe our growth from our environmenta footprint, whie at the same time increasing our positive socia impacts. These are the centra objectives of the Uniever Sustainabe Living Pan which we aunched in November The Pan wi resut in three significant outcomes: n hep more than a biion peope to improve their heath and we-being n have the environmenta footprint of our products n aow us to source 100% of our agricutura raw materias sustainaby. Underpinning these three broad goas are around 60 time-bound targets spanning our socia, economic and environmenta performance across the vaue chain from the sourcing of raw materias a the way through to the use of our products in the home. Deivering against our targets We have made a good start to deivering the Pan. There has been exceent progress in sustainabe agricutura sourcing. We have increased the use of renewabe energy in our factories, reduced the use of HFC gases in our ice cream cabinets and taken steps to ensure that our food brands have a better nutritiona profie. Much remains to be done. But businesses ike ours no onger have a choice. Sustainabe, equitabe growth is the ony acceptabe mode of growth. It is aso a very effective one. Growth and sustainabiity are not in confict. There is no inherent contradiction between the two. In fact, in our experience, sustainabiity drives growth. That is why we are putting sustainabe iving at the heart of everything we do. We have found that once you start ooking at product deveopment, sourcing and manufacturing through a sustainabiity ens, it opens up great opportunities for innovation and cost reduction. Working in partnership But if we achieve our sustainabiity targets and no one ese foows, we wi have faied. Because of this we are working with other organisations, such as the Consumer Goods Forum, the Word Economic Forum, the Word Business Counci for Sustainabe Deveopment, NGOs and governments, to drive concerted, cross-sector change. I hope this report wi give you a sense of the progress we are making. If you have comments to make or soutions to offer do not hesitate to get in touch with me at: Pau_Poman.Sustainabeiving@ uniever.com Pau Poman Chief Executive Officer Uniever Sustainabe Living Pan Progress Report

4 2 Uniever Sustainabe Living Pan Progress Report 2011 BUILDING A sustainable BUSINESS We beieve growth and sustainabiity go hand in hand. The business case As we impement our Pan we are recognising that the business case for embedding sustainabiity into our brands is strong. 1. consumers want it. A sma but growing number of consumers around the word are seeking the assurance that the products they buy are ethicay sourced and responsiby made. A more sustainabe brand is often a more desirabe brand. 2. Retaiers want it. Many retaiers have sustainabiity goas of their own and need the support of suppiers ike Uniever to impement them. This coaboration is deepening the reationships we have with our customers. 3. It fues innovation. Sustainabiity is a fertie area for both product and packaging innovation. It is aowing us to deiver new products with new consumer benefits. 4. It heps deveop new markets. Over haf Uniever s saes are in deveoping countries, which often face the greatest sustainabiity chaenges. New products that hep peope adapt to the changing word wi drive growth. 5. It saves money. Managing our operations sustainaby reduces energy, minimises packaging and drives out waste. It not ony generates cost savings, it can aso save the consumer money. 6. It inspires our peope. Our vision to create a sustainabe, growing business is motivating for our empoyees and appeaing to peope who are considering joining Uniever. our business progress As a business we cannot choose between growth and sustainabiity. We need to grow if we are to have the resources to invest in renewabe energy, sustainabe agricuture and product innovation. The Uniever Sustainabe Living Pan is heping drive both growth and profitabiity. n The brands which are buiding sustainabiity into their offer a performed we. For exampe, Lifebuoy, our concentrated iquid detergents and Comfort a grew doube digit in n The eco-efficiency programmes in our factories have continued to deiver good eves of savings. n Our efforts to reduce the amount of packaging we use have aso cut costs. In 2011 Uniever s underying saes growth was 6.5%, its market shares improved and its operating margin was broady stabe. We see no confict between sustainabe consumption and profitabe growth: they are mutuay supportive. Embedding sustainabiity Ony by embedding sustainabiity into our business wi we succeed in reaching our targets. We are doing this in a number of ways. n Our business strategy now incudes sustainabiity at its heart. n We are measuring progress. Our brand and functiona teams a have sustainabiity scorecards. These are reviewed quartery by the Uniever Leadership Executive. n We are starting to ink progress to reward. An increasing number of managers, from the CEO downward, have sustainabiity goas as part of their compensation. n We are buiding sustainabiity into innovation. We have a set of toos to evauate the environmenta impacts of new products. n We have appointed 65 sustainabiity champions to cover every key function, category and country across the business. n We are buiding expertise in behaviour change. Uniever s Five Levers for Change methodoogy heps our brand and R&D teams design effective programmes (see page 11). Our business persona care Turnover 15.5 biion Underying saes growth 8.2% Dove is the word s top ceansing brand Rexona is the word s eading deodorant brand refreshment Turnover 8.8 biion Underying saes growth 4.9% Uniever is the word s eading ice cream company Lipton is the word s best-seing brand of tea

5 2011 highights What is eft to do 24% of agricutura raw materias sustainaby sourced in % of our pam oi now sourced sustainaby we are on track to meet our 2015 target 48 miion peope reached with Lifebuoy soap handwashing programmes over % of our eectricity purchased in Europe now from renewabe sources which saves 250,000 tonnes of CO2 emissions a year Over 90% of our eading spreads contain ess than ⅓ saturated fat 35 miion peope have gained access to safe drinking water from Pureit since 2005 Athough we have made good progress on our top 10 materias, there remains much to do The next step is to deveop segregated suppies of certified pam oi which can be traced back to the pantations on which they were grown New partnerships wi hep us scae up further, and our train the trainer approach in Indonesia wi be extended Overa, renewabe energy now contributes 20% of our tota energy use. We need to doube this figure to reach our target of 40% Tacke the remainder which need higher saturated fat content to stay stabe in tropica countries We need to make Pureit avaiabe to more ow-income consumers. We are working with NGO partners to improve accessibiity and affordabiity home care Turnover 8.2 biion Underying saes growth 8.1% A third of the househods in the word use our aundry products 125 biion washes a year foods Turnover 14 biion Underying saes growth 4.9% Knorr is Uniever s argest brand, with saes in more than 80 countries We are the word s eading manufacturer of margarine with brands such as Fora, Bece, Bue Band and Rama Uniever Sustainabe Living Pan Progress Report

6 4 Uniever Sustainabe Living Pan Progress Report 2011 OUR IMPACTS ACROSS THE VALUE CHAIN The sourcing of raw materias and the use of our products by the Raw materias + + Manufacture and transport To minimise our impacts and effect broader change, we progress Working coaborativey across the suppy chain To effect meaningfu change in compex goba suppy chains we act with others to create new standards, new frameworks and new forms of governance In agricuture we work with n The Roundtabe on Sustainabe Pam Oi (RSPO) n The Round Tabe on Responsibe Soy (RTRS) n The Sustainabe Agricuture Initiative (SAI Patform) n The Word Economic Forum s New Vision for Agricuture n The Consumer Goods Forum n WWF n Greenpeace n Oxfam n Rainforest Aiance n Fairtrade On cimate change we work with n The Prince of Waes s Corporate Leaders Group on Cimate Change n Word Resources Institute (WRI) n The Sustainabiity Consortium On water issues we work with n The UN s CEO Water Mandate n The Water Footprint Network n The Word Business Counci for Sustainabe Deveopment (WBCSD) Working as Uniever in the suppy chain Sometimes acting aone can catayse change across the industry In 2007 we were the first arge company to commit to sustainabe sourcing of tea Many tea companies have foowed us Roundtabe on Sustainabe Pam Oi In 2008 we committed to draw a of our pam oi from certified sustainabe sources by 2015 Much of the industry has foowed We wi source a our cocoa sustainaby by 2020 Ben & Jerry s are asking Fairtrade to certify their key ingredients Knorr has estabished a 1 miion Partnership Fund to hep farmers Our Sustainabe Agricuture Code is an open source document avaiabe to our suppiers and others fagsize 2 (80 mm) CMYK 300 dpi: for offset

7 consumer at home represent the vast buk of our footprint. Consumer use + Disposa our own initiatives and work coaborativey with others. Working coaborativey on sustainabe consumption To change consumer behaviour at popuation scae requires us to partner with others In heath and hygiene we work with n Water & Sanitation for the Urban Poor (WSUP) n London Schoo of Hygiene & Tropica Medicine In nutrition we work with n The UN s Scaing Up Nutrition (SUN) initiative n The Internationa Food & Beverage Aiance n FDI Word Denta Federation n PSI (Popuation Services Internationa) n Through Project Laser Beam, we are working with other companies, the Word Food Programme and GAIN In recycing n The Sustainabe Packaging Coaition n CEMPRE an industry recycing initiative in Latin America n Nationa bodies such as WRAP in the UK Working as Uniever on consumer behaviour change We design new products which are more sustainabe and encourage peope to consume more sustainaby Sustainabe product design Products with ess sat, sugar and fat Recycabe packaging Concentrated detergents Easy rinse conditioners Behaviour change programmes The Lifebuoy handwashing programme Signa / Pepsodent Brush Day and Night campaign We have deveoped our own mode of behaviour change: The Uniever Five Levers for Change methodoogy Uniever Sustainabe Living Pan Progress Report

8 6 Uniever Sustainabe Living Pan Progress Report 2011 THE UNILEVER Sustainabe Living Pan Improving heath and we-being By 2020 we wi hep more than a biion peope take action to improve their heath and we-being. heath and hygiene By 2020 we wi hep more than a biion peope to improve their hygiene habits and we wi bring safe drinking water to 500 miion peope. This wi hep reduce the incidence of ife-threatening diseases ike diarrhoea. nutrition We wi continuay work to improve the taste and nutritiona quaity of a our products. By 2020 we wi doube the proportion of our portfoio that meets the highest nutritiona standards, based on gobay recognised dietary guideines. This wi hep hundreds of miions of peope to achieve a heathier diet. greenhouse gases Have the greenhouse gas impact of our products across the ifecyce by 2020.* peope Heathy empoyees and better workpaces. * Throughout this document our environmenta targets are expressed on a per consumer use basis. This means a singe use, portion or serving of a product (see page 41). We have taken a ifecyce approach with a baseine of In seven water-scarce countries representing around haf the word s popuation (see page 41).

9 Reducing environmenta impact By 2020 our goa is to have the environmenta footprint of the making and use of our products as we grow our business. * enhancing iveihoods By 2020 we wi enhance the iveihoods of hundreds of thousands of peope as we grow our business. water Have the water associated with the consumer use of our products by 2020.* + WASTE Have the waste associated with the disposa of our products by 2020.* sustainabe sourcing By 2020 we wi source 100% of our agricutura raw materias sustainaby. better iveihoods By 2020 we wi engage with at east 500,000 smahoder farmers and 75,000 sma-scae distributors in our suppy network. Uniever Sustainabe Living Pan Progress Report

10 8 Uniever Sustainabe Living Pan Progress Report 2011 summary of progress: 2011 Improving heath and we-being We estimate that we heped 135 miion peope take action to improve their heath and we-being. heath and hygiene nutrition greenhouse gases KEY achieved on-pan off-pan missed target We have reached 100 miion peope with our handwashing, ora care and sef-esteem programmes, and a further 35 miion with safe drinking water. Reduce diarrhoea and respiratory disease through handwashing improve ora heath Improve sef-esteem Provide safe drinking water We increased the proportion of our portfoio that meets the highest nutritiona standards from 22% in 2010 to 25% in Improve heart heath Reduce sat eves Saturated fat: reduce saturated fat Increase essentia fatty acids remove trans fat Reduce sugar Reduce caories Provide heathy eating information Our greenhouse gas (GHG) footprint has remained broady unchanged.* Reduce GHG from skin ceansing and hair washing Reduce GHG from washing cothes: Concentration Reformuation consumer behaviour Reduce GHG from manufacturing: CO2 from energy Renewabe energy New factories reduce GHG from transport reduce GHG from refrigeration peope reduce workpace injuries and accidents Improve empoyee heath and nutrition Reduce empoyee trave reduce energy consumption in our offices * Throughout this document our environmenta targets are expressed on a per consumer use basis. This means a singe use, portion or serving of a product (see page 41). We have taken a ifecyce approach with a baseine of In seven water-scarce countries representing around haf the word s popuation (see page 41).

11 Reducing environmenta impact An interim sampe of 2010 data shows that our environmenta footprint has remained broady unchanged. * enhancing iveihoods We do not yet have a robust methodoogy for measuring improvements in iveihoods. In 2012 we wi work to deveop one. water WASTE sustainabe sourcing better iveihoods Our water footprint has remained broady unchanged.* + Reduce water use in agricuture Reduce water use in the aundry process: Easy rinse products Detergents that use ess water Reduce water use in skin ceansing and hair washing Reduce water use in manufacturing process: Reduce abstraction New factories Our waste footprint has remained broady unchanged.* Reduce packaging reuse packaging recyce packaging: increase recycing and recovery rates increase recyced content Reduce waste from manufacturing: Reduce tota waste New factories Tacke sachet waste Eiminate PVC Sustainaby sourced agricutura raw materias increased from 14% in 2010 to 24% in Pam oi Tea Fruit Vegetabes Cocoa Sugar Paper & board Soy beans and soy oi sunfower oi Rapeseed oi We revised our smahoder farmers target. We engaged with 45,000 sma-scae distributors. Smahoder farmers Sma-scae distributors Dairy Fairtrade Ben & Jerry s Cage-free eggs Reduce office waste: Recyce, reuse, recover Reduce paper consumption eiminate paper in processes Increase sustainabe sourcing of office materias Uniever Sustainabe Living Pan Progress Report

12 10 Uniever Sustainabe Living Pan Progress Report 2011 Our approach Poor hygiene and sanitation remain the cause of miions of preventabe deaths. In deveoping countries around 80% of diseases are water borne. According to UN estimates, over 2 biion peope have imited access to safe drinking water. Of these, neary 800 miion ack even the most basic suppy of cean water. This is a major pubic heath issue. Many Uniever brands offer hygiene benefits but none more so than our toiet soaps. Every year, diarrhoea and pneumonia caim the ives of over 2 miion chidren under five. Yet studies show that washing hands with soap can significanty reduce the incidence of these diseases. Our toothpastes aso pay an important roe in heping to prevent tooth decay which is one of the word s most common diseases and can ead to more serious heath conditions. The simpe practice of brushing twice a day can make a big difference to ora heath. Finay Pureit, our in-home water purifier, provides water as safe as boied without needing eectricity and at a price that is more affordabe than boiing water. To make a asting impact on heath we need to encourage peope to make changes to their everyday habits, ike washing hands with soap before eating and after going to the toiet. We have used our knowedge of consumers to understand what triggers such changes and have devised programmes that drive sustained behaviour change. For ora heath and handwashing we have focused on chidren so that we can insti habits that ast a ifetime. 1.0 Our commitment By 2020, we wi hep more than a biion peope to improve their hygiene habits and we wi bring safe drinking water to 500 miion peope. This wi hep reduce the incidence of ife-threatening diseases ike diarrhoea. By end 2011, we had reached over 135 miion peope 48 miion with Lifebuoy, 44 miion with our toothpaste brands, 8.5 miion through the Dove Sef-Esteem Fund and 35 miion peope with safe drinking water from Pureit. what matters most Changing hygiene behaviour with Lifebuoy soap and making safe drinking water avaiabe through Pureit. 0 ACHIEVED 4 on-pan 0 off-pan 0 missed

13 HEALTH AND HYGIENE IMPROVING HYGIENE AND PROMOTING WELL-BEING REDUCE DIARRHOEAL ANd RESPIRATORY DISEASE THROUGH HANDWASHING 1.1 By 2015, our Lifebuoy brand aims to change the hygiene behaviour of 1 biion consumers across Asia, Africa and Latin America by promoting the benefits of handwashing with soap at key times. 48 miion peope reached since 2010, of which 34.5 miion peope were reached in Our Lifebuoy brand has devised a new methodoogy to drive sustained behaviour change. The new approach ensures that peope not ony understand why washing hands with soap is important, but aso rewards them for practising the new habit over 21 days. The programme is being taken to chidren through schoos and to mothers through heath cinics and women s groups. Our experience shows that the individuas reached wi infuence up to five others in their househod. During 2011 the new methodoogy was depoyed in seven countries: Bangadesh, India, Indonesia, Kenya, Maaysia, Pakistan and Vietnam. On this target we are behind where we woud ideay ike to be. However, our new approach, together with new partnerships, convince us that we sti have a chance of reaching our 2015 goa. In India, as part of a new rura outreach programme, Khushia Ki Doi ( Caravan of Happiness ), Lifebuoy took handwashing messages to remote areas, reaching around 30 miion peope directy in This has the potentia to reach 150 miion peope, based on an average househod of five. uniever s five evers for change Inspiring peope to adopt new behaviours is centra to our Pan. In 2011 we pubished our own mode of behaviour change. Uniever s Five Levers for Change is a set of principes deveoped over many years which, if appied consistenty, increases the ikeihood of creating a asting impact. We have drawn on skis from outside and inside Uniever psychoogists and academics from eading universities, hygiene experts and speciaists from our own research aboratories and marketing departments. The first step is to identify the barriers, triggers and motivators to adopting a new behaviour and sticking with it. Next, we consider how to inspire change using each of Uniever s Five Levers for Change. The Five Levers for Change is a simpe process that has resuted in some success. But we are aware that just as peope are compex, so too is behaviour. We continue to work with experts in the fied to optimise our mode. Extending our impact: Working with schoos in Indonesia In Indonesia we have pioneered a costeffective and scaabe mode for roing out handwashing education programmes in schoos. The new mode is based on a partnership between Lifebuoy, the Indonesian government and NGOs. Lifebuoy trains teachers to deiver the handwashing behaviour change programme. We aso provide the materias and tookits they need. Each teacher then cascades the programme to a further three schoos, through a train the trainer mode to create a mutipier effect. Lifebuoy enisted the hep of NGO partners to provide monitoring and evauation. This partnership approach, invoving the government, schoos, teachers and NGOs, has enabed Lifebuoy to reduce the overa cost of the programme, thereby increasing our abiity to take it to scae. Lifebuoy handwashing programmes in Indonesia reached over 800,000 chidren during In 2012, we are working with partners to integrate handwashing with soap into the schoos curricuum. We aim to reach 4.5 miion chidren. We are now ooking to extend the approach to other countries. Uniever Sustainabe Living Pan Progress Report

14 12 Uniever Sustainabe Living Pan Progress Report 2011 IMPROVING HEALTH AND HYGIENE IMPROVE ORAL HEALTH IMPROVE SELF-ESTEEM 1.2 We wi use our toothpaste and toothbrush brands and ora heath improvement programmes to encourage chidren and their parents to brush day and night. We aim to change the behaviour of 50 miion peope by around 44 miion peope reached since 2010: 31 miion in 2010* and 13 miion in Brushing habits that ast are best forged during chidhood, so our campaigns seek to insti good habits from an eary age. The Brush Day and Night message targets the singe change that the FDI Word Denta Federation agrees wi do most to improve ora heath. Cinica data has shown that brushing twice a day with fuoride toothpaste can reduce tooth decay in chidren by up to 50% compared to brushing once. We have made good progress as a resut of running the campaign in more countries than we had originay anticipated a tota of 12 countries across Europe, Asia, Africa and Latin America in brushing teeth day and night We are using Uniever s Five Levers for Change mode to encourage better ora hygiene. Our research reveaed that we needed to make sure parents understood the importance of brushing at bedtime. We offered games to make it easy and prizes as a reward for keeping going. The rea breakthrough came from making it desirabe. We did this by featuring dads in the communication. We recognised the roe fathers can pay in passing on good habits to chidren and how this appeas to their desire to become a good parent. Aong with stickers to encourage chidren to practise the new habit over severa weeks, we expored new ways of reinforcing the habit by sending parents mobie aerts at chidren s bedtime. Resuts are encouraging with increased brushing frequency in countries running the programme. This is a win-win: improving chidren s ora heath and heping us grow our business. With our Dove brand we are heping miions of young peope improve their sef-esteem through educationa programmes. 1.3 By 2015 we aim to have heped 15 miion young peope. over 8.5 miion young peope have received our hep since Over 1 miion participated in the programme in 16 countries in Dove is one of our biggest brands with revenues in excess of 3 biion. Its Sef-Esteem Fund is educating girs to overcome anxieties about their physica appearance and raise their sef-esteem. In 2011, the programme covered 16 countries incuding Austraia, France, Mexico, Taiwan, the UK and the United States. Buiding a movement for sef-esteem Dove s Sef-Esteem Fund promotes the deveopment of body confidence among girs. It provides toos and resources to buid their sef-esteem, using the support of their famiies and communities. The Fund aso runs events, such as the Dove Sef- Esteem weekend in the United States which attracted over 23,000 girs in * our previousy reported figure of 10 miion peope reached in 2010 has been restated to 31 miion see the Sustainabe Living section of our website.

15 PROVIDING SAFE DRINKING WATER provide safe drinking water 1.4 We aim to make safe drinking water avaiabe and affordabe to 500 miion peope through our Pureit in-home water purifier by miion peope in tota have gained access to safe drinking water from Pureit since its aunch in Pureit is an in-home water purifier that provides water as safe as boied without needing eectricity or pressurised tap water. It removes harmfu viruses, bacteria and parasites. An independent study has shown that Pureit can reduce the incidence of diarrhoea disease by up to 50%.* Foowing a successfu aunch in India the brand has been roed out to Bangadesh, Indonesia, Mexico and Brazi. The most affordabe mode costs 18 in India (1,200 rupees) with an ongoing running cost of just one euro cent for about 2 itres of safe drinking water. This is ower than the cost of boiing water and significanty ess than buying botted water. We are working with a range of microfinance and NGO partners in India to improve the affordabiity of the purifier for those for whom the price is a barrier to purchase. bringing safe drinking water to ow-income consumers We have designed various modes of Pureit to appea to consumers at different income eves. A modes meet the United States Environmenta Protection Agency standards for safety from germs but vary in terms of price. FUTURE CHALLENGES The chaenge of reaching a biion consumers with Lifebuoy is daunting. Given that our new, more rigorous methodoogy ony reached 48 miion at the end of 2011, there must be some doubt that we wi reach a biion peope by our target date of However we remain committed to the goa. Our confidence is borne of a number of factors: n we have now tested and pioted interventions that are effective, scaabe and economicay viabe n we know from our cinica data that when we get it right our impact is effective n we aso know that the business case is strong. In Pakistan, Lifebuoy soap consumption has increased by 8%. We have aso made progress in finding the right partners to support us. The London Schoo of Hygiene & Tropica Medicine has ong provided the scientific underpinning for our work and in 2012 we wi start working with PSI and the Miennium Viages programme. These, and others, wi hep us with funding, expertise and distribution reach. * Randomised tria by the Nationa Institute of Epidemioogy, based on 430 chidren in Chennai, India, Uniever Sustainabe Living Pan Progress Report

16 14 Uniever Sustainabe Living Pan Progress Report 2011 Our approach As ifestyes change, there is continuing concern about the effect of diet on pubic heath. Peope are iving more sedentary ives and caorie-rich foods are more avaiabe and affordabe. The resut is a higher incidence of obesity, caused by peope consuming more caories than they expend. A heathy diet needs the right baance of fat (avoiding an excess of saturated fat), not too much sat and penty of fruit and vegetabes otherwise the risk of heart disease and other chronic inesses is increased. At the same time, miions of peope around the word remain hungry or ack essentia nutrients in their diets. Deveoping and emerging countries in particuar face the doube burden of over- and under-nutrition. Uniever can pay a part in providing soutions to these probems. It is an opportunity for us not ony to make a difference to peope s heath and we-being but aso to achieve our growth objectives. Improving our products Our Nutrition Enhancement Programme drives improvements in nutritiona quaity. Since we began the programme in 2003, we have made good progress on owering the eves of each of the four key nutrients: sat, saturated fat, trans fat and sugar. For each of these nutrients, we measure our progress against the most stringent internationa standards. We appy these standards to a the food products in our portfoio, incuding our food service products which are consumed in restaurants, schoos and hospitas. 2.0 Our commitment We wi continuay work to improve the taste and nutritiona quaity of a our products. By 2020, we wi doube the proportion of our portfoio that meets the highest nutritiona standards, based on gobay recognised dietary guideines. This wi hep hundreds of miions of peope to achieve a heathier diet. 25% of our portfoio met the criteria in 2011, up from 22% in This is in ine with our pans. what matters most Reducing the sat and saturated fat eves of our products. 0 ACHIEVED 7 on-pan 0 off-pan 1 missed

17 nutrition HELPING PEOPLE MAKE HEALTHY CHOICES IMPROVE heart HEALTH REDUCE SALT LEVELS 2.1 By 2020 we aim to motivate 100 miion peope to take our Heart Age test with our Fora and Bece brands. our goa is to motivate peope to adopt heathier diets and ifestyes, as this can reduce eevated heart age. 5.9 miion peope have taken the Heart Age test since its aunch in From 2012 we wi no onger promote this test under the Fora/Bece brand. In 2009 Uniever and the Word Heart Federation aunched Heart Age, an onine too to raise awareness of cardiovascuar disease. By 2011 the too was avaiabe in 27 countries. Through this work we have confirmed that the Heart Age test is an exceent too for making heart heath personay reevant. To our disappointment, our margarine brands by themseves have found it very difficut to drive sufficient numbers of peope to the Heart Age website. Therefore to fuy maximise the power of the too we are now working with externa partners who have a broader heart heath remit. This does not diminish our commitment to invest in research and deveopment in heart heath and through our Bece/Fora products hep peope take simpe steps to reduce their risk of cardiovascuar disease. Prior to 2010 we had aready significanty reduced sat eves in our products. Our goa is to reduce the eve further to hep consumers meet the recommended eve of 5 g of sat per day based on gobay recognised dietary guideines. 2.2 our first miestone was to reduce sat eves to an interim target of 6 g per day by the end of This required reductions of up to 25%. Our ambition is to reduce by a further 15 20% on average to meet the target of 5 g of sat per day. We narrowy missed our 2010 interim miestone. At end 2011, 80% of our portfoio (representing amost 90% of our voume) reached 6 g per day. 61% of our products met our target of sat eves equivaent to 5 g per day, up from 60% in Sat consumption in many countries remains much higher than the recommended daiy amount. We have made progress in reducing sat eves, particuary in product categories such as soups and mea sauces. This has been most marked in countries such as Austraia, France, Canada and the United States, where sat reduction is on the pubic heath agenda. However, much remains to be done in other parts of the word. We expect the date for reaching our 5 g per day target wi vary depending on the speed with which we can impement changes in different countries. Therefore we have adjusted our target to between 2015 and 2020 to refect this reaity. We aso recognise that it wi be difficut to deiver this target. Encouraging peope to reduce their sat intake Making reduced sat caims appeaing is not easy as peope often assume that ess sat means ess favour. But Knorr is rising to the chaenge with the hep of Saty, a cartoon character in the form of a sat shaker. Knorr aunched an advertising campaign in Canada showing Saty feeing negected because Knorr s Sidekick range tastes so good, even with 25% ess sodium. Saty s popuarity grew further on Twitter, Facebook and YouTube. Thanks to Saty, demand for our owersat products increased. Uniever Sustainabe Living Pan Progress Report

18 16 Uniever Sustainabe Living Pan Progress Report 2011 PROVIDING BALANCED NUTRITION REDUCE SAturated fat REMOVE trans fat REDUCE Sugar We are committed to improving the fat composition of our products by reducing saturated fat as much as possibe and increasing eves of essentia fats. 2.3 By 2012 our eading spreads wi contain ess than 33% saturated fat as a proportion of tota fat. 2.4 a daiy portion wi provide at east 15% of the essentia fatty acids recommended by internationa dietary guideines. Over 90% of our eading spreads (by voume) contained ess than 33% saturated fat as a proportion of tota fat by end Over 90% of our eading spreads provided at east 15% of the essentia fatty acids recommended by internationa guideines by end Our eading spreads are those which we se in tubs under brands such as Fora, Bece, Rama and Bue Band. They comprise about two-thirds of our soft margarines by voume. Our target does not incude the hard margarines which are used for baking and require higher saturated fat eves. The remainder of the eading spreads that do not meet our targets are argey sod in tropica countries where margarines cannot be made stabe at ambient temperatures without a high saturated fat content. We pan to reduce the saturated fat by neary a third to 38% which is currenty the owest we can reach. We are aso improving the fat composition of our products by increasing the eve of essentia fats. These fats hep contro bood ipids and are essentia for good heath. 2.5 By 2012 we wi have removed from a our products any trans fat originating from partiay hydrogenated vegetabe oi. at end 2011, over 99% of our portfoio was free from trans fats originating from partiay hydrogenated vegetabe oi. We are on track to deiver our 2012 target. Fora contains up to 80% ess saturated fat than butter Fora margarine is heathier than ever thanks to a new recipe. This uses a technoogica innovation which is the biggest of its kind in the spreads market for 60 years. The new Fora is now around 25% ower in saturated fat and has 20% fewer caories. Compared to butter, it has up to 80% ess saturated fat. 2.6 Prior to 2010 we had aready reduced sugar eves in our ready-to-drink teas. By 2020 we wi remove an additiona 25%. Whie we saw significant reductions in sugar eves in some regions, overa the sugar eve in our ready-to-drink teas portfoio did not reduce in In 2012 we have a number of projects that wi start to reduce sugar eves significanty, keeping us on track to meet our 2020 target. Athough ready-to-drink teas contain much ess sugar than many soft drinks, consumers sti ike a certain sweetness. This means that we have to reduce sugar eves graduay or use sweeteners so that peope do not desert Lipton for highersugar aternatives.

19 REDUCING CALORIES REDUCE caories 2.7 By % of our chidren s ice creams wi contain 110 caories or fewer per portion. 60% wi meet this eve by % of our chidren s ice creams contained 110 caories or fewer per portion at end 2011, a year ahead of our 2012 miestone. We are investing significant resource to hep us meet this target. We are deveoping new technoogies that wi aow us to reduce caorie content by owering saturated fat in both the ice cream and the coatings. Our goa is to reduce the caories in our ice cream whie ensuring it remains a fun and tasty treat for chidren and one that makes a positive contribution to a heathy diet. PROVIDE HEALTHY EATING INFORMATION our aim is to provide cear, simpe abeing on our products to hep consumers make choices for a nutritionay baanced diet. A our products in Europe and North America provide fu nutritiona information. 2.8 By 2015 this wi be extended to cover a our products gobay. We wi incude energy per portion on the front of pack pus eight key nutrients and % Guideine Daiy Amounts (GDA) for five nutrients on the back of pack.* austraia, New Zeaand and Latin America provided fu nutritiona abeing by end In Africa, the Midde East and Asia, we sti have some way to go to meet this goa. tacking micronutrient deficiency Uniever is a co-founder of Project Laser Beam, a five-year, pubic private partnership which brings together the UN Word Food Programme, the Goba Aiance for Improved Nutrition, Kraft Foods and DSM, to improve chidren s nutrition, heath and iveihoods. The project s initia focus is on Indonesia and Bangadesh, where during 2011, Uniever provided 95,000 schoo chidren with micronutrientenriched schoo meas. Further projects are schedued to start in FUTURE CHALLENGES Sat The scientific and marketing chaenges of reducing sat are compex. Consumers ike the taste of sat. When given a choice between a we-sated and a ighty sated product peope wi generay express a preference for the we-sated one. Since taste is the principa driver of product choice it poses a diemma. There are three possibe approaches: n we find an aternative to sodium sats n we reformuate with herbs, spices and other ingredients in such a way as to reduce the need for a saty favour n we graduay wean the consumer off the taste of sat by reducing eves sowy over time. Finding an aternative to sodium is a compex task that wi require a technoogica breakthrough. Whie we continue to search we are sti a ong way off a soution. Reformuating recipes is something that our chefs and food technoogists are constanty working on and we are making good progress. The third approach to the chaenge of sat that of gradua reduction over time is ony reay effective if the whoe industry moves together. If it does not, peope wi desert our products for more highy sated ones. Micronutrient deficiency Providing fortified foods at scae to combat micronutrient deficiency is a big chaenge. Many of our products aready make an important contribution to the micronutrient intakes of hundreds of miions of peope wordwide. Our chaenge is to do this for more peope, in more paces, in a way which is economicay viabe. * Where appicabe and egay aowed and in accordance with oca or regiona industry agreements. Uniever Sustainabe Living Pan Progress Report

20 18 Uniever Sustainabe Living Pan Progress Report 2011 Our approach Cimate change wi have a growing impact on Uniever s business. Our suppiers of agricutura raw materias wi be affected by changing weather patterns. Our consumers wi have to adapt to a word of rising food and energy prices and communities risk being dispaced by extreme weather events such as foods and droughts. It is a particuary urgent issue for Uniever since the countries that are expected to fee the effects most severey are the deveoping economies that generate more than haf our saes. We have cacuated the greenhouse gas emissions across the ifecyce of over 1,600 representative products in 14 countries. The cacuation covers 70% of our voumes. From this we know that our argest greenhouse gas impacts are beyond our factory gates. The sourcing of raw materias and the use of our products by peope at home account for more than 90%. We have set greenhouse gas reduction targets across our vaue chain from sourcing, manufacturing, transport and refrigeration a the way through to consumer use of our products. To achieve these targets we need to work with our suppiers as we as offer new products that can hep peope reduce their own impacts. 3.0 Our commitment Have the greenhouse gas impact of our products across the ifecyce by 2020.* Given the compexity of cacuating the ifecyce impacts of our product portfoio, we are investing in an automated process to aow us to measure progress reguary. what matters most Reducing greenhouse gas emissions from heated water for showering and washing hair. An interim sampe of 2010 data shows that our greenhouse gas footprint has remained broady unchanged. Our FOOTPRINT 26% 3% 2% 68% 1% Raw materias Manufacture Transport Consumer use Disposa + 0 ACHIEVED 8 on-pan 1 off-pan 0 missed Source for Footprint and pie charts: Uniever 2008 baseine study across 14 countries. Tota in tonnes. * Throughout this document our environmenta targets are expressed against a baseine of 2008 and on a per consumer use basis. This means a singe use, portion or serving of a product (see page 41).

21 greenhouse gases HELPING to tacke cimate change our footprint The product categories which make the argest contribution to our greenhouse gas footprint are those where the consumer requires heated water. Soap, shower ge and skin care products aone account for more than haf of our tota footprint. our greenhouse gas footprint (% contribution by category 2008) 5% 6% 4% 9% 3%1% 1% 4% 4% 11% 52% soap, shower ge & skin care aundry detergents & fabric conditioners shampoo & conditioners soups, sauces & stock cubes tea & beverages househod ceaners ice cream margarine & spreads mayonnaise, mustard & dressings deodorants toothpaste REDUCE greenhouse gas emissions from skin ceansing and hair washing 3.1 By 2015 we aim to reach 200 miion consumers with products and toos that wi hep them to reduce their greenhouse gas emissions whie washing and showering. Our pan is to reach 400 miion peope by We are finding this target chaenging and our progress is modest. The majority of the greenhouse gas emissions associated with our soaps, shower ges and shampoos occur during consumer use so the argest gains wi come from peope modifying their showering and bathing habits. Habits of this kind are deepy ingrained and not easiy changed. We are approaching the task by: n conducting research to understand current behaviour n deveoping new products such as dry shampoo. Because dry shampoo refreshes hair between washes, it might encourage peope to wash their hair with hot water ess often. Understanding showering in the UK In 2011 we undertook a study on showering habits in the UK. We monitored 2,600 showers taken in 100 househods over at east ten days. Resuts showed that the average shower is eight minutes three minutes onger than the received wisdom of the five minute shower and costs a famiy 416 a year. The study wi hep us to understand the triggers for changing behaviour and inform the deveopment of new products. Uniever Sustainabe Living Pan Progress Report

22 20 Uniever Sustainabe Living Pan Progress Report 2011 REDUCING GHG IN LAUNDRY AND MANUFACTURING REDUCE greenhouse gas emissions from washing cothes reduce the greenhouse gas impact of the aundry process by: 3.2 concentrating our iquids and compacting our powders. 3.3 Reformuating our products to reduce greenhouse gas emissions by 15% by Encouraging our consumers to wash at ower temperatures and at the correct dosage in 70% of machine washes by % of our portfoio in our top 14 countries was made up of concentrated and compacted products at end 2010, compared to our baseine of 4% in We continue to make good progress in reformuating our products to reduce greenhouse gas emissions. With the majority of our powders aready reformuated we are on track to meet our 2012 target. We are encouraging consumers to use the right dosage through speciay designed caps and we communicate the benefits of ow temperature washing on our packs and onine. Concentrating our aundry products heps reduce greenhouse gas emissions as we need fewer raw materias, ess packaging and fewer orries to transport the products. In our fast-growing markets in Asia and Africa most cothes are washed by hand in ambient temperatures and so the aundry process is ess greenhouse gas intensive. The chaenge wi be to ensure that when peope in these markets acquire washing machines they continue to wash at ow temperatures. REDUCE greenhouse gas emissions from our manufacturing 3.5 By 2020 CO2 emissions from energy from our factories wi be at or beow 2008 eves despite significanty higher voumes. this represents a 63% reduction per tonne of production and a 43% absoute reduction (versus a 1995 baseine). 3.6 We wi more than doube our use of renewabe energy to 40% of our tota energy requirement by We recognise that this is ony a first step towards a ong-term goa of 100% renewabe energy. 3.7 a newy buit factories wi aim to have ess than haf the impact of those in our 2008 baseine. 601,500 fewer tonnes of CO2 from energy produced in 2011 than in 2008 (a reduction of 20% per tonne of production ). compared to 1995, this represents a 55% reduction in absoute terms. at end 2011 renewabe energy contributed 20% of our tota energy use compared to 15.8% in during we incorporated sustainabiity improvements into every aspect of the design specification for our new factories. These improvements wi be incorporated in a new designs from 2012 onwards. Our reduction of 20% per tonne of production since 2008 has been driven predominanty by the purchase of renewabe eectrica energy and the use of biomass in our boiers. This is compemented by continuous improvement programmes across our sites. manufacturing CO2 and energy savings The biggest contributors to our reductions in CO2 and energy were: n eectricity purchased for a factories in Europe and Canada is now from renewabe sources n the introduction of three new biomass boiers in India in 2011 n the instaation of combined heat and power systems in many of our European factories over By the end of 2011 this ed to savings of over 10 miion a year. deivering CO2 SAVings Our UK business identified inefficiencies in trucking aundry products across Europe. By doube stacking products, we achieved a 60% reduction in vehice kiometres and a 38% reduction in CO2 emissions. In Brazi we switched deiveries from São Paoo to the north-east of the country from road to sea. This achieved a reduction of over 5,000 tonnes of CO2 a year data is preiminary, see page 41.

23 REDUCING GHG FROM TRANSPORT AND FREEZERS REDUCE greenhouse gas emissions from TRANSPORT 3.8 By 2020 CO2 emissions from our goba ogistics network wi be at or beow 2010 eves despite significanty higher voumes. This wi represent a 40% improvement in CO2 efficiency. We wi achieve this by reducing truck mieage; using ower emission vehices; empoying aternative transport such as rai or ship; and improving the energy efficiency of our warehouses. over 8% improvement in CO2 efficiency in 2011 compared to Whie our progress in 2011 was good, meeting our 2020 commitment remains tough and we are exporing how we can work in partnership to drive improvements at an industry eve. One exampe is Forum for the Future s Sustainabe Shipping Initiative which we joined in REDUCE greenhouse gas emissions from refrigeration as the word s argest producer of ice cream, we wi acceerate our ro-out of freezer cabinets that use cimate-friendy (hydrocarbon) refrigerants. When we aunched our Pan in November 2010 we had aready purchased 450,000 units with the new refrigerant. 3.9 We wi purchase a further 850,000 units by By end 2010 we had bought another 190,000 cimate-friendy cabinets. In 2011 we purchased a further 280,000, taking us to 470,000, we over haf way towards our target of 850,000. As we as having a ower goba warming potentia, some of the new freezers are more energy efficient. This reduces both costs and emissions for the customers who run these freezers. FUTURE CHALLENGES Most of our greenhouse gas emissions come from the hot water needed to use our soaps and shampoos in the shower. This makes the task of reducing them particuary chaenging because persuading peope to take shorter showers, sti ess coder ones, wi be very difficut. In order to get a better understanding of the question we have conducted our own research on showering habits in the UK. We have studied carefuy what has happened in other countries and have taked to water companies and NGOs. This is by far our biggest chaenge and as yet we do not have a viabe soution. Big-scae change wi ony come about once carbon has an economic price and peope have a rea financia incentive to change. Meanwhie we need to find products and services which wi hep peope to mitigate their impacts in the short term. Gaining reguatory acceptance for hydrocarbons in the US In the United States, Environmenta Protection Agency (EPA) reguations have prevented us from using cimate-friendy hydrocarbon refrigerants. Working with Greenpeace, UNEP and others we have been obbying the EPA to convince them that there are no safety issues. At the end of 2011 the EPA gave approva for the use of hydrocarbon gas as an aternative to current refrigerants. Not ony has this ruing paved the way for the introduction of cimate-friendy refrigeration for our own use, but it wi aso enabe other companies to take advantage of the significant greenhouse gas savings such cabinets offer. Uniever Sustainabe Living Pan Progress Report