Uslp Unilever Sustainable Living Plan Scaling For Impact Summary of Progress 2014 Tcm244 424809 en
Uslp Unilever Sustainable Living Plan Scaling For Impact Summary of Progress 2014 Tcm244 424809 en
ABOUT US
2 billion
consumers use our products
onany given day
190
172,000
employees worldwide
1 billion
48.4 billion
sales in 2014
CONTENTS
THE BIGGER PICTURE
OUR STRATEGY
SUSTAINABLE BRANDS,
SUSTAINABLE GROWTH
10
18
UNILEVER SUSTAINABLE
20
LIVING PLAN 2014 PROGRESS
THE BIGGER
PICTURE
Unilever has a simple purpose
to make sustainable living
commonplace.
In a volatile world which is facing
environmental change and rising
populations, we see this as the
best long-term way for us to
grow and bring benefits to all
our stakeholders. To succeed in
this goal, we need to change the
way we do business and to scale
up the impact on the issues that
matter most.
OUR STRATEGY
OUR PURPOSE IS TO MAKE
SUSTAINABLE LIVING
COMMONPLACE
We work to create a better future
every day, with brands and services
that help people feel good, lookgood
and get more outof life.
DOUBLE THE
BUSINESS
REDUCING
ENVIRONMENTAL IMPACT
by
REDUCE
ENVIRONMENTAL
FOOTPRINT
IMPROVING HEALTH
ANDWELL-BEING
1 BILLION
POSITIVE
SOCIAL IMPACT
1/2
ENHANCING
LIVELIHOODS
for
MILLIONS
21%
2%
2%
4%
70%
1%
Raw Materials
Manufacture
Transport
Retail
Consumer
Disposal
SUSTAINABLE
BRANDS,
SUSTAINABLE
GROWTH
Putting sustainable living at the
heart of our brands is growing our
sales, engaging our consumers and
creating efficiencies.
SUSTAINABILITY-LED
GROWTH
Brands that are integrating sustainable
living into their core purpose are driving
success for our business.
DOVE BOOSTS
SELF-ESTEEM AND
BUSINESS SUCCESS
Dove, our largest Personal Care
brand, continued to grow strongly in
2014. Doves Self-Esteem Project
contributed to this performance.
The Project drives consumer appeal
and loyalty by improving attributes
such as helps me make the most of
my beauty and works better than
other brands.
In 2014 the brand partnered with the
World Association of Girl Guides and
Girl Scouts to launch the Free Being
Me Girl Guides badge, which is
awarded to girls taking part in
education on common body myths.
Through this partnership, Dove is
now reaching girls in more than
70countries worldwide up from
22in 2013.
KISSAN GROWING
TOMATOES AND SALES
Our Kissan brand in India wanted
tomake its tomato ketchup even
more appealing to consumers by
demonstrating that it contains
100%real, juicy tomatoes. The
tomatoes we use are sustainably
grown by local suppliers.
The brand inspired children and
their parents to get closer to
nature.We offered free tomato
seeds and special tomato-shaped
caps on ourbottles which doubled
as pots togrow tomato plants in.
Acompetition found the best
growers and their tomatoes were
made into personalised bottles of
Kissan ketchup.
In 2014 the campaign reached
30million people and helped
propelKissan ketchup to
marketleadership.
SUSTAINABLY SOURCED
FRUIT APPEALS TO
CONSUMERS
Fruttare is a frozen fruit bar made
with real fruit. Research showed
Fruttares US consumers actively
care about sustainability issues and
that sustainably sourced fruit drives
higher purchase intent.
In 2015 Fruttare became the first
frozen fruit bar to tell people about
its sustainably farmed fruit with an
on-pack logo.
Origin is also important to
consumers. Our strawberries are
from California and our black
cherries are grown in Oregon.
In 2016 the entire range is planned
to contain 100% sustainably
sourced fruit.
70+
countries where
Doveis reaching girls
via Free Being Me
LESS WASTE,
LESSRISK
By reducing waste in energy, raw materials
and manufacturing, we createefficiencies
and cut costs, whichhelps to improve
ourmargins.
BOTTOM-LINE
BENEFITS AS
ECOPROGRAMME
STEPS UP A GEAR
ZERO WASTE TO
LANDFILL ACHIEVED
ACROSS OUR GLOBAL
FACTORY NETWORK
28
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SUSTAINABLE
INNOVATION &
COLLABORATION
By looking at product development,
sourcing and manufacturing through
asustainability lens, opportunities for
innovation open up. By collaborating
withpartners including not-for-profit
organisations, we can leverage skills,
capabilities and networks that we do
nothave.
SMALL IS BEAUTIFUL
BIGGEST
BREAKTHROUGH IN
SOAP TECHNOLOGY
FOR 50 YEARS
Washing hands with soap is one of
the best and cheapest ways to
prevent disease. Our new soap,
Lifebuoy with Activ Naturol Shield
(ANS) offers improved germfightingefficacy. As well as better
protectionagainst bacteria that
cause stomach infections, typhoid
and cholera, it also combats skin
and eye infections.
This breakthrough innovation
creates a highly effective soap that
isboth pleasant to use and
affordable, made possible by
apatented combination of
synergisticnatural ingredients.
Unilevers revolutionary
compressed aerosol cans are the
next big thing in the deodorant
market, delivering significant
benefits to the planet, the consumer
and the business. Compressed
aerosols are an example of how new
technology can grow brand value
and save resources.
In 2014, we rolled out compressed
sprays to five European markets.
The smaller cans last just as long
and work just as effectively as
full-sized cans. However, they use
half the propellant gas and 25%
lessaluminium, saving over
16,000tonnes of CO2.
In the UK, given the choice between
compressed and regular aerosols,
more than 50% of people chose to
buy compressed.
CHANGING ATTITUDES
IN THE GULF
In the Gulf, water consumption is
high but awareness of the need to
conserve water is low.
Our Water Savers campaign shows
how our brands can help. Sunlight
dishwash is a good example, saving
up to 20% of water by degreasing
faster than other brands.
We ran advertising and in-store
activations including competitions
and discounts on water bills with our
six major customers, including
Carrefour, LuLu Hypermarkets and
The Sultan Center, driving sales of
over 20% above market growth for
our brands and our customers. We
also joined forces with bodies such
as the Dubai Electricity and Water
Authority to reinforce the watersaving message.
Importantly, Water Savers shifted
attitudes: over half the shoppers
taking part in-store have taken
action to save water.
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SCALING
FOR IMPACT
We have set a bold ambition to achieve change
within our own company. But we are only one
company among many and the change needed
to tackle the worlds major social, environmental
and economic issues is big and urgent. What
isreally needed is fundamental change to the
broader systems of which we are a part.
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SMALLHOLDER
WATER,
FARMERS &
SANITATION
WATER,
HYGIENE
SANITATION &
HYGIENE
WATER,
SANITATION &
HYGIENE
FARMERS &
SANITATION
WATER,
HYGIENE
SANITATION &
HYGIENE
WATER,
SANITATION &
HYGIENE
DRIVING
We have set out to make
a difference
TRANSFORMATIONAL
DRIVING
to those big issues that
matter most
CHANGE
TRANSFORMATIONAL
DRIVING
TRANSFORMATIONAL
DRIVING
CHANGE
TRANSFORMATIONAL
CHANGE
DRIVING
TRANSFORMATIONAL
Scaling
WORKING
TOfor impact is ever more critical in 2015
CHANGE
asthe United Nations prepares to adopt a set of
ELIMINATE
Sustainable
WORKING
TO Development Goals and broker a
DEFORESTATION
climate deal to reduce emissions. Success for
ELIMINATE
both will require input and active leadership
DEFORESTATION
bybusiness.
WORKING TO
By combining our own actions with external
ELIMINATE
advocacy on public policy and joint working with
DEFORESTATION
partners, we are seeking to create what we call
SUSTAINABLE
transformational
change that is fundamental
AGRICULTURE
&
change to whole systems, not simply incremental
SUSTAINABLE
SMALLHOLDER
improvements.
AGRICULTURE
&
FARMERS
We are focusing on three areas where we have
SMALLHOLDER
thescale, influence and resources to make this
SUSTAINABLE
FARMERS
bigdifference:
AGRICULTURE
&
SMALLHOLDER
WATER,
FARMERS &
SANITATION
WATER,
HYGIENE
SANITATION &
HYGIENE
WATER,
SANITATION &
HYGIENE
CHANGE
DRIVING
TRANSFORMATIONAL
ELIMINATING
CHANGE
DEFORESTATION
ELIMINATING
DEFORESTATION
SUSTAINABLE
AGRICULTURE &
SUSTAINABLE
SMALLHOLDER
AGRICULTURE &
FARMERS
SMALLHOLDER
SUSTAINABLE
FARMERS
AGRICULTURE &
Making sustainable
agriculture the mainstream,
SMALLHOLDER
WATER,
and so increase food yields and enhance the
FARMERS
SANITATION
livelihoods ofsmallholder
farmers&
WATER,
HYGIENE
SANITATION &
HYGIENE
WATER,
SANITATION &
HYGIENE
By focusing on these
three areas, we believe
we can help address the
twin goals of combating
climate change and
promoting human
development.
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ELIMINATING
DEFORESTATION
Our ambition is to eliminate
deforestation from the worlds
commodity supply chains, and so
combat the threat from climate
change. Together with others in our
industry, we have committed to
achieving zero net deforestation
associated with four commodities
palm oil, soy, paper and board,
andbeef no later than 2020.
Thiscommitment also extends to our
tea businesses and supply chains.
12
DRIVING
TRANSFORMATION
INTHE PALM OIL
INDUSTRY
A decade ago Unilever became a
founding member of the Roundtable
on Sustainable Palm Oil (RSPO), to
change the palm oil industry which,
in some regions, was driving
deforestation. RSPOs aim is to
develop and implement global
standards for sustainable palm oil.
Today it has around 2,000 members,
representing over 40% of all palm oil
produced in the world, and 18% of
global palm oil meets RSPO criteria.
We also drive change by working
with our suppliers. In December
2013, we announced a Memorandum
of Understanding with Wilmar, an
important supplier and Asias
40
MAKING GLOBAL
WORKING IN
PROGRESS ON
PARTNERSHIP WITH
FORESTS AND CLIMATE OTHERS
We are making good progress
towards our sustainable sourcing
targets; however, we cannot end
deforestation by ourselves.
Businesses, governments and
civilsociety must work in
partnership to achieve sustainable
development while valuing and
conserving forests.
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MAINSTREAMING
SUSTAINABLE
AGRICULTURE
Our ambition is for sustainable
agricultural production to become the
mainstream, as the best way we can
help to end hunger, achieve food
security and improve nutrition as
oneof the global Sustainable
Development Goals. The world needs
to double agricultural productivity and
increase the incomes of smallholder
farmers. We are among the largest
purchasers of crops such as tea,
palm oil and vegetables and have a
significant role to play.
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A GROUND-BREAKING
PARTNERSHIP
Our partnership with the Clinton
Foundation and Acumen the
Enhanced Livelihoods Investment
Initiative (ELII) is designed to
create a more efficient way for
Unilever to buy from small
producers. It will enable farmers to
generate more income as well as to
improve the livelihoods of as many
as 300,000 smallholder farmers
andtheir communities in Africa,
South Asia, Latin America and
theCaribbean.
The ELII will be a three-year,
minimum $10 million investment
initiative to catalyse economic
growth and alleviate poverty
amongst low-income communities,
while creating more inclusive and
sustainable value chains. One of
itsprimary goals is to leverage
market-based approaches to
poverty alleviation, to create and
scale up privately-held enterprises
which will support smallholder
farmers and link them to our
globalsupply chains and
distributionnetworks.
15
ACCESS
TOWATER,
SANITATION
AND HYGIENE
Our ambition is to achieve universal
access to safe drinking water,
sanitation and hygiene. The worlds
nations are discussing how to
enshrine this commitment in a new
set of Sustainable Development
Goals. With our portfolio of health
andhygiene brands, Unilever is well
placed to help. Tackling these issues
together can achieve a fundamental
impact on the diseases that cause ill
health and cost lives.
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PARTNERING FOR
SCALE
Weve found partnerships are vital to
scaling up Lifebuoy soaps reach and
achieving our goal of better health
through better hygiene. Partners
help us develop cost-effective
interventions that can be scaled up,
making handwashing education
viable over the long term.
Lifebuoys new partnership with
theChildrens Investment Fund
Foundation (CIFF) aims to reach
9million children in Bihar with
ourhandwashing education
programme. Bihar has one of the
highest levels of infant mortality
inIndia.
Piloted in 2014, the programme
began to scale in 2015. With children
acting as change agents for their
families, 45 million people are
expected to benefit by 2018.
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DELIVERING
OUR PLAN
In 2014 we made good progress
across our commitments. In
particular we achieved strong
performance for targets within
ourdirect control. Those
outsideourdirect control are
provingmore challenging.
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IMPROVING HEALTH
AND WELL-BEING
We are progressing well towards our first big goal
of helping more than a billion people take action
to improve their health and well-being. By the end
of 2014 we had reached 397 million people. The
brands driving this goal, such as Lifebuoy, Dove
and Domestos, have shown strong growth.
In September 2014 we added a new target to our
Plan: to help 25 million people gain improved
access to a toilet by promoting the benefits of
clean toilets and by making toilets accessible.
Weare the first company to make a commitment
to improving sanitation on this scale.
In addition, a third of our portfolio of brands in our
Foods and Refreshment categories now meet the
highest nutritional standards, based on globally
recognised dietary guidelines. Already, the
majority meet or are better than benchmarks
based on national nutritional recommendations.
397
MILLION
33
REDUCING
ENVIRONMENTAL
IMPACT
Progress on our second big goal is more mixed.
We have achieved our target of zero nonhazardous waste to landfill across our global
factory network, and continue to make significant
reductions in CO2 from energy and water in
manufacturing, reducing them by 37% and 32%
per tonne of production respectively since 2008.
However, the consumer element of our target to
halve the water and GHG impacts of our products
remains a challenge. GHG impact per consumer
use has increased by around 4% since 2010,
partly as a result of the Alberto Culver acquisition,
while the water impact per consumer use has
reduced by around 2%.
New technology such as compressed deodorant
sprays has helped enable reductions in waste
impact per consumer use, down by around
12%since 2010.
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ENHANCING
LIVELIHOODS
Our third goal is to enhance the livelihoods of
millions of people as we grow our business.
In2015 we are publishing our first human rights
report following the new UN Guiding Principles
Reporting Framework. Our Responsible Sourcing
Policy, launched in 2014, sets mandatory
requirements and good and best practices on
human rights.
We are now sourcing over half our agricultural
raw materials sustainably, and by working with
our agricultural suppliers and other partners, we
have helped around 800,000 smallholder farmers
gain access to training and support.
Our approach is to further womens economic
empowerment by advancing rights, skills and
opportunities across our value chain. By 2014 we
provided access to training and skills for 168,000
women and increased the number of women
micro-entrepreneurs selling our products in
Indiato 70,000.
800,000
37
55
reduction in CO2
from energy since
2008
of agricultural
rawmaterials
sustainably
sourced
19
Improving
health and
well-being
Nutrition
Greenhouse gases
Water
397m
people reached
byend 2014
Reduce
diarrhoeal and
respiratory disease through
handwashing
Provide safe drinking water
Improve access to sanitation
Improve
oral health
33%
of our portfolio
byvolume met
highest nutritional
standards in 2014
Improve self-esteem
UNILEVER
SUSTAINABLE
LIVING PLAN
2014 PROGRESS
20
Reducing
environmental
impact
We have helped
397 million people take
action to improve their
health and well-being.
by 1/2
4%
Our manufacturing:
By 2020 CO2 emissions from energy
from our factories will be at or
below 2008 levels despite
significantly higher volumes.
Our manufacturing:
By 2020 water abstraction by our
global factory network will be at
orbelow 2008 levels despite
significantly higher volumes.
37%
reduction
ofCO from energy per tonne
ofproduction since 2008
Saturated fat:
92 Reduce saturated fat
92 Increase essential fatty acids
Reduce
saturated fat in more
products
Improve heart health
Remove trans fat
Reduce sugar
Reduce calories:
In childrens ice cream
In
more ice cream products
Provide
healthy eating information
2%
our greenhouse
gas impact per
consumer use
hasincreased by
around 4%since
2010*
32%
reduction in
waterabstraction per tonne
ofproduction since 2008
Enhancing
livelihoods
Sustainable sourcing
Our products:
Halve the waste associated with the
disposal of our products by 2020.
12%
55%
our waste
impact per
consumer use
has reduced by
around 12%
since 2010*
of agricultural
raw materials
sustainably
sourced by
end2014
Palm oil:
S
ustainable
Traceable
Paper and board
Soy beans and soy oil
85%
reduction
intotal wasteper tonne
Tea
Fruit
Vegetables
Cocoa
Sugar
Sunflower oil
Reuse packaging
Tackle
sachet waste
99 Eliminate PVC
Reduce office waste:
Recycle,
reuse, recover
R
educe paper consumption
Eliminate
paper in processes
Fairness in the
workplace
Opportunities
forwomen
85%
of our strategic
suppliers met
our Responsible
Sourcing Policys
mandatory
criteria by March
2015
238,000
women provided
withaccess
totraining
andskills,
including 70,000
Shaktimicroentrepreneurs
trained in India
Implement
UN Guiding Principles
on Business and Human Rights
B
uild a gender-balanced
organisation with a focus
onmanagement
Source
100% of procurement
spend in line with our Responsible
Sourcing Policy
Promote
safety for women in
communities where we operate
Create
framework for fair
compensation
Enhance
access to training
andskills
Expand
opportunities in our
valuechain
Inclusive business
By 2020 we will have a positive
impact on the lives of 5.5 million
people.
800,000
smallholder
farmers gained
access to
training and
support via
partnerships
with our
agricultural
suppliers and
other partners
Improve
livelihoods of smallholder
farmers
Improve
incomes of small-scale
retailers
Increase
participation of young
entrepreneurs in our value chain
Reduce
workplace injuries and
accidents
Rapeseed oil
Reduce packaging
Recycle packaging:
Increase
recycling and
recoveryrates
Increase
recycled content
for millions
Waste
Our manufacturing:
By 2020 total waste sent for
disposal will be at or below
2008levels despite significantly
higher volumes.
By 2020 we will
enhancethe livelihoods
of millions of people as
we grow our business.
Dairy
KEY
Cage-free eggs
21
UNILEVER N.V.
UNILEVER PLC
Head Office
Registered Office
Unilever PLC
Port Sunlight
Wirral
Merseyside CH62 4ZD
United Kingdom
Registered in England and Wales
Company Number: 41424
FEATURE PHOTOGRAPHY
Kieran Doherty, Peter Jordan, Igor
Emmerich, DDB Turkey & Bocek
Production House, GettyImages,
Shutterstock, Symrise, Fjona Hill,
Tim Barker for Getty Images,
Frans Lemmens, Chris Moyse.
Back cover: MustafahAbdulaziz
WaterAid
www.unilever.com/
sustainable-living