Green Marketing Plan

For
I. Executive Summary

We discuss how, with our partners, we are addressing some of the critical challenges facing

the world today such as sustainable farming, climate change, water stress and resource use. These are

the topics we have defined as our most material issues. The Overview also provides a summary of

other important aspects of responsible business behavior, including how we respond to consumer

concerns, treat our employees, work in partnership with customers and suppliers, and take part in the

life of our local communities.

1.1 Introduction

As one of the world’s leading consumer goods companies, it is through our brands that

Unilever has the biggest potential to make a difference.Unilever’s mission is to meet the

everyday needs of people all around the world for nutrition, hygiene and personal care. We do

this with products that help people feel good, look good and get more out of life. Every day

around 160 million people in150 countries will buy a Unilever brand. Unsurprisingly, therefore,

the social and environmental impacts which we have onthe world around us come largely

from ourbrands. We are increasingly embeddingsustainability thinking into the day-to-dayPaul

PolmanChief Executive Officeractivities of our brand management and R&Dteams. We have

done this through a simpletool called Brand Imprint.Brand Imprint forces management to

thinkcarefully about both the resources theyuse (such as water, packaging, energy andraw

materials) and the social and economicimpacts that our brands have in thecountries where

they are sold. For example,it encourages managers selling soap toconsider the positive

effects which they canhave on public health through improvedhygiene. For those marketing

tea, it promptsthem to think about where they source theiringredients and how they can get

value from

communicating this to consumers.

II. Market Study

2.1 Technological
 We aim to grow our business in a sustainable and environmentally responsible way
through focusing on cutting water consumption and waste, reducing our carbon footprint
and obtaining more materials from sustainable sources. We have developed a set of ‘vitality
metrics’ that measure the environmental element of the framework.

There are four indicators covering our priority issues:

greenhouse gas emissions

 water

 waste

 sustainable sourcing.

The metrics seek to measure the impacts of our brands when used by consumers. The

first three metrics provide an estimate of each element per consumer use, such as grams

of greenhouse gas per single usage occasion of shampoo. The greenhouse gas metric

takes into account impacts across a product’s lifecycle, including:

 direct manufacturing impacts, which we have managed and reported on for more

than a decade through our eco-efficiency programme

 indirect impacts such as sourcing of raw materials and the quantity of energy and

water required for consumer use.

In 2008, we piloted these metrics in selected geographies and with certain products. During
2009 we will be refining these metrics and reviewing how far we can use them to shape
future brand development and to set a baseline to track progress across our portfolio. The
Brand Imprint process provides the building blocks for brand teams to understand and
assess how sustainability issues impact and are impacted by ourproducts. The Vitality
Framework and metrics help integrate sustainability considerations into the everyday
business processes of our categories and brands. This helps us drive a common, aligned
plan across our brands. Together, these tools help us integrate social and environmental
sustainability into the heart of our business strategy.
 2.2 Production

Our business and brands have impacts at every stage of their lifecycle: from sourcing raw

materials through to manufacture, distribution, consumer use and disposal. We use our

understanding of consumers’ everyday needs for nutrition, hygiene and personal care to create high-

quality branded products that are safe to use, competitively priced and accessible even to the

remotest consumers. In our own facilities, where we have direct control, we are reducing our impacts,

such as using less water in our factories. In our extended supply chain, where we have influence

rather than direct control, we are working with suppliers to help them meet our standards and

address sustainability issues. The area of our value chain where we have least control – but perhaps

the greatest potential to make a difference – is in how consumers use our products. Here products,

such as detergents that require less rinsing, and campaigns to promote behavior change can help to

reduce impacts.

III. Financial Study

STATEMENT OF COMPREHENSIVE INCOME

FULL YEAR
2010 2009
Demand and Supply ProjectionsOur factory in Paco, Manila adheres to
environmentally compliant and ISO certified processes to ensure that no
harmful wastes come out of Unilever’s plants. Our factory in Paco, Manila adheres to
environmentally compliant and ISO certified processes to ensure that no harmful wastes come out of Unilever’s
plants.

Garbage is one of the biggest environmental issues facing Metro Manila and many other cities. In Unilever, we want
make sure that our operations have minimum possible effect on the environment.

Project Eliminate was created to target ZERO LANDFILL in our plant and offices. The target was reached in 2004
and the company has maintained it since then, concentrating on the following goals:

•Reduce / Avoid – through Total Productive Maintenance (TPM), we improved our process and reduced waste by
80%. Furthermore, as plastic is made from oil, we developed a process to use the residual packaging waste as a co-
fuel for cement manufacture.
•Reuse – sort all recyclable which cannot be avoided and develop processes to treat the waste that cannot be
recycled.

•Recycle – a lot of our landfill can be recycled directly. Teams were put in place to improve sorting on the
production lines. Now, we sell carton and plastic to recyclers and as a result, our garbage was reduced by 50%.

IV. Socio-economic Study

Our business is growing strongly in developing and emerging markets. Looking ahead,

ensuring a sustainable future will demand new ways of doing business. The role of multinationals in

economic development has been the subject of much debate. We believe that business can play an

important role, not only in generating wealth and jobs around the world, but also in sharing

technology, developing best practice and setting standards of corporate behaviour. A growing

proportion of our sales come from developing and emerging markets, where Unilever has been

operating for many years. Continued success in these markets will depend on being able to serve the

needs of consumers at all income levels, from those on low and uncertain incomes to those who are

more affluent. This is an important part of our approach. Studies on our operations in Indonesia and

South Africa gave us a more in-depth understanding of our impacts on the local economy. These

studies, as well as our experience of working with farmers around the world, show that the way in

which we work with others can enhance economic development and poverty alleviation. We are now

drawing these lessons into our work to support smallholder farmers and micro-enterprise models in

our supply and distribution chains.

Climate change is one of the most serious

issues facing the world. Extreme weather

patterns and water scarcity will affect people

everywhere, with developing countries likely

to be among the most vulnerable.

There will be serious consequences for our

business operations, including threats to our

agricultural supply chain and the availability

of water in some of our markets.

The costs of addressing climate change now,

while considerable, are likely to be far less

than waiting and allowing the problem to

get worse.

We have joined business coalitions

endorsing the need for action. In July 2008

we supported a new climate policy at the

reduction by 2050. We signed a communiqué

to the UN climate change conference in

Poznan, also calling for emissions reduction

targets. We support the European Union’s

climate change package which aims to

ensure Europe meets its climate targets

by 2020.

Implementation

 n reduce water use in our manufacturing operations

 work with suppliers, especially farmers, to reduce the amount of water used in crop

irrigation

 design products which require less water during consumer use

 participate in external partnerships that help address water scarcity

Our new vitality metric aims to measure a

product’s water impact, taking into account

the water we add to our products and

we piloted the metric with our home and

personal care products, enabling us to

identify opportunities for improvements

across the product portfolio.

 Enhancing design

Innovative packaging design can minimise

the environmental impact of packaging itself.

But it can also enhance a product’s lifecycle

impacts. For example, effective packaging

can reduce product leakage and consequent

waste during transportation.

We have long been reducing the amount of

packaging in our products through leadingedge design technology. Our new bottle

for Dove (left) has been designed to fit the

hand and uses 15% less plastic than the

Reducing waste in manufacturing

We have been measuring waste from

manufacturing processes as part of our

eco-efficiency programme for many years.

Total waste sent for disposal has been

reduced by 68%* per tonne of production

since 1995. In 2008 we saw an increase of

4.3%* in total waste compared to 2007.

This increase, from 7.56 kg/tonne to

7.89 kg/tonne, has been driven by three

factors: legislative changes which require

different methods of disposal for nonhazardous waste; under-capacity in

effluent treatment; and the planned

disposal of accumulated and inherited

A particular concern is the volume of sachets

we use to package single-use products,

especially in developing and emerging

markets. These may end up as litter where

there are no appropriate disposal facilities.

Our approach is to:

 implement design improvements to create sachets that use less material or material with

less environmental impact

 support litter awareness programmes

 work with others to explore economic models which create incentives for collection and

reuse of our packaging.

If we can help create a value for this

waste product, there is an incentive for

people to collect it. This has potential social

and economic benefits too, through job

for poor communities

Alternative courses of Effective solutions require a partnership

approach. Unilever is a founding member of

the Sustainable Packaging Coalition, which

has over 160 members, including packaging

producers, users and retailers. We are also

members of EUROPEN (the European

Organisation for Packaging and the

Environment).

We work in partnership with retailers and

NGOs to explore ways to improve recycling

infrastructure. For example, we have

supported the CEMPRE waste management

and recycling initiative in Brazil since 2001

The Recycling at Work Sustainable Grants

and the National Park Foundation – has been

running in the US since 1994. Unilever’s

support has resulted in the donation of

sustainable, 100% recycled plastic ‘lumber’ to

more than 200 National Parks. At Yellowstone

National Park (main picture, left), for

example, we have donated nearly 250,000 ft

of lumber, enabling the Park to replace the

entire boardwalk and decking system around

the Old Faithful Geyser and the Midway

Geyser Basin.action

In case of not to fulfill the said programs here are some of the alternatives that may be taken

to ensure implementation plan to continue:

This project includes relief distribution to calamity stricken areas and rehabilitation activities

such as provision of livelihood projects and repairs of school buildings and day care centers. San

Miguel Business Units play an active role as well as the employees who answer the call for fund

raising campaigns.

 Linis ofis program

Translated as “clean office”, this internal program is an integrated approach to solid waste

management in support of the Philippine Government’s Ecological Solid Waste Management

Act (RA 9003). It deals with waste segregation by instilling in SMC employees the 4R discipline

– Reduce, Reuse, Recycle and Recover. It aims to educate its workers to value their

environment by practicing segregation, collection, reuse and recycling of disposable waste in

the workplace. The program generated P26,000 from the sale of recyclable materials on its

first month, and an average of P12,000 per month. It has also helped in reducing the amount

of solid waste, which normally finds its way to landfills and dumpsites, and easing up on

manpower in the collection of waste.