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 38 Externa commentary 14 n Nutrition 40 Verifying our approach 18 n Greenhouse gases 22 n Water 26 n Waste 30 n Sustainabe sourcing 34 n Better iveihoods 36 n Peope

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 iving 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 sustainabe 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 refreshment Turnover 15.5 biion Turnover 8.8 biion Underying saes growth 8.2% Underying saes growth 4.9% dove is the word s top Uniever is the word s eading ceansing brand ice cream company rexona is the word s eading ipton is the word s deodorant brand best-seing brand of tea

5 2011HIGHLIGHTS What is eft to do Athough we have made good 24% of agricutura raw progress on our top 10 materias, there remains much to do materias sustainaby sourced in 2011 The next step is to deveop 64% of our pam oi now segregated suppies of certified sourced sustainaby pam oi which can be traced back to the pantations on which they we are on track to meet our 2015 target were grown new partnerships wi hep us 48 miion peope reached with scae up further, and our train the Lifebuoy soap handwashing trainer approach in Indonesia wi be extended programmes over overa, renewabe energy now 100% of our eectricity contributes 20% of our tota energy purchased in europe now use. We need to doube this figure to reach our target of 40% 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 Tacke the remainder which need higher saturated fat content to stay stabe in tropica countries 35 miion peope have gained more ow-income consumers. We access to safe drinking water from Pureit since 2005 We need to make Pureit avaiabe to 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 in 2008 we committed to draw a arge company to commit to Roundtabe on Sustainabe Pam Oi of our pam oi from certified sustainabe sourcing of tea sustainabe sources by 2015 Many tea companies have foowed us 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

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 Uniever sustainabe iving Pan improving HEALtH ANd WELL-BEiNG By 2020 we wi hep more than a biion peope take action to improve their heath and we-being. HEALtH 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.* PEOPLE Heathy empoyees and better workpaces. * Throughout this document our environmenta + In seven water-scarce countries representing targets are expressed on a per consumer use around haf the word s popuation (see page 41). 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 2008.

9 REdUCiNG ENviRONMENtAL 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 LivELiHOOdS 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.* SUStAiNABLE SOURCiNG By 2020 we wi source 100% of our agricutura raw materias sustainaby. BEttER LivELiHOOdS 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 HEALtH ANd WELL-BEiNG We estimate that we heped 135 miion peope take action to improve their heath and we-being. HEALtH 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 PEOPLE reduce workpace injuries and accidents improve empoyee heath and nutrition reduce empoyee trave reduce energy consumption in our offices * Throughout this document our environmenta + In seven water-scarce countries representing targets are expressed on a per consumer use around haf the word s popuation (see page 41). 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 2008.

11 REdUCiNG ENviRONMENtAL impact An interim sampe of 2010 data shows that our environmenta footprint has remained broady unchanged. * ENHANCiNG LivELiHOOdS We do not yet have a robust methodoogy for measuring improvements in iveihoods. In 2012 we wi work to deveop one. WAtER WAStE SUStAiNABLE SOURCiNG BEttER LivELiHOOdS 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. WHAT MATTERS MOST By end 2011, we had reached over 135 miion peope changing hygiene behaviour with Lifebuoy soap and 48 miion with Lifebuoy, 44 miion with our toothpaste making safe drinking water avaiabe through Pureit. brands, 8.5 miion through the Dove Sef-Esteem Fund and 35 miion peope with safe drinking water from Pureit. 0 AcHIEVED 4 on-plan 0 off-plan 0 MISSED

13 heath and hygiene IMPRoVInG HYGIEnE AnD PRoMoTInG WELL-BEInG reduce diarrhoea and respiratory disease through handwashing 1.1 By 2015, our ifebuoy brand aims to change the hygiene behaviour of 1 biion consumers across asia, africa and atin 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 ora heath improve sef -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. WHAT MATTERS MOST 25% of our portfoio met the criteria in 2011, up from Reducing the sat and saturated fat eves of 22% in This is in ine with our pans. our products. 0 AcHIEVED 7 on-plan 0 off-plan 1 MISSED

17 nutrition HELPInG PEoPLE MAKE HEALTHY choices improve heart heath reduce sat eves 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 heathy 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 atin 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-plan 1 off-plan 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 TAcKLE climate 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% 3%1% 1% 4% 4% 4% 9% 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

24 22 Uniever Sustainabe Living Pan Progress Report 2011 our approach Water is a basic human need. The United nations estimates that each person needs itres per day for drinking and daiy tasks ike cooking and washing. The average north American uses 550 itres daiy, whie in the poorest countries peope ive on as itte as 10 itres a day. Wordwide, some 70% of tota water consumption is used for agricuture. Water shortages are increasingy common and aready touch many parts of the word, from china to India to the United States. Their growing frequency is the resut of popuation growth, improving incomes and cimate change. The amount of water avaiabe per head of popuation has haved over the ast 30 years and is predicted to have again in the next ten. It is estimated that the word wi face a 40% goba shortfa between demand and suppy by our products rey on water at a stages of their ifecyce. To grow our business sustainaby, we must reduce the tota amount of water used across our vaue chain. our Sustainabe Agricuture Programme heps farmers reduce their water use. We are reducing the water used in our manufacturing processes. And we can make a big difference by designing products which require ess water in the home. We are making some progress. our comfort one Rinse fabric conditioner reduces the water needed for rinsing cothes from three buckets to one. We have aso earnt more about current showering and bathing habits which wi hep us deveop new product soutions. But transformationa change wi ony come when water is priced and there is a financia incentive to encourage new behaviours. 4.0 OUR COMMITMENT Have the water associated with the consumer use of our products by 2020.* Given the compexity of cacuating the impacts of our product portfoio, we are investing in an automated process to aow us to measure progress reguary. WHAT MATTERS MOST Reducing water use when doing aundry, showering and washing hair. An interim sampe of 2010 data shows that our water footprint has remained broady unchanged. OUR FOOTPRINT [50%] EStiMAtE <0.1% 50% Water used in the raw materias we source + + Water we add to the product Water used by consumers in water-scarce countries 0 AcHIEVED 3 on-plan 3 off-plan 0 MISSED Source for Footprint and pie charts: Uniever 2008 baseine study across seven water-scarce countries (see page 41). Tota in itres. * 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).

25 Water REDUcInG our WATER USE WHERE IT MATTERS MoST our FootPrint our baseine for water is cacuated in seven countries which we have defined as water-scarce, accounting for around haf the word s popuation (see page 41). our anaysis shows that around 38% of our water footprint comes from the aundry process a significant proportion of this is washing aundry by hand in the deveoping word. A further 44% of our footprint comes from showering, bathing and washing hair with our products. our Water FootPrint (% contribution by category 2008) 9% 9% 37% 7% 38% aundry detergents & fabric conditioners soap, shower ge & skin care toothpaste househod ceaners shampoo & conditioners reduce Water Use in agricuture 4.1 We wi deveop comprehensive pans with our suppiers and partners to reduce the water used to grow our crops in water-scarce countries. in 2011 we made good progress in assessing the water used to grow our key crops. Anaysing the water used to grow our ingredients is a compex task as water impacts vary enormousy according to the crop and the country where they are grown. Using data from the Water Footprint network, we made estimates of the water requirements of our key crops. We wi use the data to identify where the biggest risks are in terms of agricutura water and to deveop pans with suppiers and growers. reducing Water Use, increasing yieds We have been promoting drip irrigation to our suppiers and growers. This system can dramaticay reduce water use whie at the same time increasing yieds. We are making steady progress with our key suppiers, whose use of drip irrigation has risen from 39% in 2009 to 52% by the end of Tomatoes have been one of our biggest successes. For exampe in Austraia, tomatoes have been grown using up to 70% ess water and in India, a set of drip irrigation trias on gherkins produced an average water saving of 40% (pictured beow). In the United States, we have found that the most striking aspect of conversion to drip irrigation for tomatoes is the significant yied increase of over 25%. Drip irrigation aso heps create improved growing conditions with fewer funga and bacteria diseases. In humid cimates fungicide appication rates have been reduced by as much as 50%. Uniever Sustainabe Living Pan Progress Report

26 24 Uniever Sustainabe Living Pan Progress Report 2011 REDUcInG WATER In LAUnDRY AnD SHoWERS reduce Water Use in the aundry Process We wi reduce the water required in the aundry process by: 4.2 Making easier rinsing products more widey avaiabe. 4.3 Providing 50 miion househods in water-scarce countries with products that deiver exceent ceaning but use ess water by in 2011 we aunched surf one rinse in the Phiippines and expanded the comfort one rinse range in indonesia, thaiand and vietnam. our one rinse products are now used in 12.5 miion househods wordwide, a 60% increase on In water-scarce countries, around 38% of our domestic water footprint comes from washing cothes. In many of these markets peope do their aundry by hand. A few years ago we deveoped a fabric conditioner caed one Rinse. With this product consumers ony need one bucket for rinsing out detergent residues rather than three buckets, saving time, effort and up to 30 itres of water per wash. We increased the avaiabiity of singerinse products through the aunch of new variants as we as making them avaiabe through more saes outets. The product has been successfu. After three years, comfort one Rinse accounts for one-third of the fabric conditioner market in Vietnam and a fifth of the market in Indonesia. The potentia water saving is huge. Around 500 biion itres of water woud be saved if a our aundry consumers in Asia and South Africa used one Rinse, and used it in the right way. Athough the potentia is arge, the use of these products is sti reativey sma and we have much to do to hit this target. seeing is Beieving ProMotes More sustainabe habits When we aunched comfort one Rinse in Vietnam, peope iked the product but most stuck to their od habit of three buckets for rinsing. TV commercias created high awareness but did not change behaviour. We found peope needed to see with their own eyes the proof of washing out detergent residues after just one rinse. Using Uniever s Five Levers for change approach to behaviour change, we made it easy for peope to see that one rinse reay is a that is needed. We ran seeing is beieving demonstrations on a massive scae even taking over the nationa Stadium in Vietnam, which was seen by a broadcast audience of 30 miion peope. This heped to buid confidence that the new way of rinsing was enough to remove a residues and showed the convenience in saving time and water. We have aso used roe modes to encourage adoption. In Indonesia we empoyed ceebrity TV presenter Rina Gunawan to demonstrate the product s benefits and make it desirabe to save water. We even went so far as to create a nationa one Rinse Movement in partnership with Indonesia s nationa Women s Movement. This invoved training 95,000 women to become Water Warriors to encourage good water saving habits in their communities. Quantitative studies in Vietnam show we are making some progress, with an increasing number of peope cutting down their water consumption. reduce Water Use in skin ceansing and hair Washing 4.4 By 2015 we intend to reach 200 miion consumers with products and toos that wi hep them to use ess water whie washing and showering. our goa is to reach 400 miion by We are making a start on this target. Around 44% of Uniever s domestic water footprint is associated with our soaps, shower ges and shampoos. So the argest gains wi come from peope modifying their showering and bathing habits. We are strugging to make a dent in this target. The starting point is to understand current behaviour. To that end we have initiated research in water-stressed countries to understand behaviour and what coud motivate peope to change.

27 REDUcInG WATER In MAnUFAcTURInG reduce Water Use in our ManUFactUring Process 4.5 By 2020, water abstraction by our goba factory network wi be at or beow 2008 eves, despite significanty higher voumes. this represents a 78% reduction per tonne of production and a 65% absoute reduction, versus a 1995 baseine. We wi focus in particuar on factories in waterscarce ocations. 4.6 a newy buit factories wi aim to abstract ess than haf the water of those in our 2008 baseine miion fewer m 3 of water abstracted in 2011 than in 2008 (a reduction of 17% per tonne of production ). compared to 1995, this represents a 72% reduction in absoute terms. 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. saving Water in south africa our new food factory in Durban, South Africa opened at the end of 2011 foowing an investment of around 70 miion. It is designed to produce haf the greenhouse gas emissions of the previous site and to send zero waste to andfi. Just as importanty in a water-stressed region, it aims to be water neutra by harvesting rainwater and recycing to avoid taking water that woud otherwise be consumed by the community. FUTURE CHALLENGES Water is scarce today and becoming more so. This puts Uniever s sourcing of agricutura raw materias at risk. Equay, a arge part of our footprint is associated with showering, bathing and hair washing, just as our greenhouse gas footprint is associated with heating that water for showers. To reduce water use we wi need to deveop new products and toos which hep peope use ess water. But we have earnt that whie creating new product technoogy is important, it is not enough. We sti need to motivate peope to adopt the new water-saving behaviour. Uniever s Five Levers for change methodoogy is heping our marketers take a systematic approach to reducing water use when rinsing aundry by hand. We pan to appy the same approach to changing habits in the shower. In the end it wi require water pricing and water metering aongside consumer education to drive the right behaviours. At that point we wi need to be ready with products and toos that hep peope make their water go further. our 17% reduction per tonne of production compared to 2008 represents steady progress. It has been driven by continuous improvements across the majority of our manufacturing sites and aso by the disposa of a number of high water-use sites in Better effuent treatment pants wi deiver our biggest improvements in water reduction. In addition, we are pioting a new technoogy for process water treatment in four European countries. We estimate it coud deiver 3 5% water savings data is preiminary, see page 41. Uniever Sustainabe Living Pan Progress Report

28 26 Uniever Sustainabe Living Pan Progress Report 2011 our approach Packaging is important: it protects our products, aows us to transport them safey, and utimatey saves far more energy than it consumes. At the same time it can end up as waste, particuary in those countries where the infrastructure for recycing is poor. We share a responsibiity with our consumers to prevent packaging from ending up either in andfi or bighting the andscape as itter. Packaging improvements can bring immediate business benefits. The more we reduce our packaging, the greater the savings in materias, energy and transport. The chaenge is to continue to use packaging that is appeaing and effective but to reduce significanty its environmenta impacts. our approach to this is to reduce, reuse and recyce. We are reducing the weight of our packaging by using stronger, ighter-weight materias. We are aso making our packaging more recycabe and aim to use more recyced materia ourseves. But deaing with post-consumer waste packaging and product thrown away after use by our consumers presents a different chaenge. The infrastructure for deaing with waste varies hugey between countries. To meet our targets, recycing rates in some of our markets must doube or even tripe. So we face the chaenge of working with oca governments, ngos, retaiers and others to hep buid effective programmes for recycing post-consumer waste. OUR COMMITMENT 5.0 Have the waste associated with the disposa of our products by 2020* Given the compexity of cacuating the impacts of our product portfoio, we are investing in an automated process to aow us to measure progress reguary. WHAT MATTERS MOST Reducing the weight of packaging and increasing recycing. An interim sampe of 2010 data shows that our waste footprint has remained broady unchanged. OUR FOOTPRINT 59% 14% 27% [x%] + + Primary packaging Transport packaging Product eftovers Nationa index of materias recyced and recovered / estimates 0 AcHIEVED 7 on-plan 1 off-plan 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). We set our baseine by cacuating the waste from over 1,600 representative products. We did this at an absoute eve as we as on a per consumer use basis in 14 countries. The cacuation covers 70% of our voumes.

29 Waste REDUcE, REUSE, REcYcLE our FootPrint our anaysis has highighted that our food packaging is one of the biggest contributors to our waste footprint. But to achieve our goa we wi need to reduce waste across a product categories by reducing the weight of packaging and by heping to increase recycing. Tea bags form a significant proportion of product eftovers. our Waste FootPrint (% contribution by category 2008) 8% 8% 6% 4% 4% 5% 21% 9% 9% 13% 13% soups, sauces & stock cubes tea & beverages soap, shower ge & skin care aundry detergents & fabric conditioners mayonnaise, mustard & dressings shampoo & conditioners margarine & spreads ice cream deodorants househod ceaners toothpaste our Waste FootPrint (% contribution by materia type 2008) 11% 9% 11% 6% 5% <1% 25% 33% reduce Packaging 5.1 By 2020 we wi reduce the weight of packaging that we use by a third through: n ightweighting materias n optimising structura and materia design n deveoping concentrated versions of our products n eiminating unnecessary packaging. 4% reduction in weight, achieved through a combination of ightweighting and materia design optimisation. To achieve our goa of reducing the weight of packaging by a third we need to make sma changes to many thousands of packs sod across the word. our brands typicay update their packaging every few years and so our aim is to ightweight or improve the materia choice each time a redesign is briefed. For exampe, in 2011 we redesigned the Unox cup-a- Soup pouch in the netherands, cutting auminium by a third and overa pouch weight by 6%. reuse Packaging 5.2 We wi provide consumers with refis in our home and persona care portfoio to make it possibe to reuse the primary pack. We offer refis in a imited number of countries where the consumer habit is we estabished. We are finding it difficut to estabish a viabe business case for refis and so are putting more effort into reducing and recycing instead. We have nevertheess had some success. In 2011 we aunched refi pouches for Sunight dishwashing iquid in South Africa. These weigh around 90% ess than the origina pastic botte. ess Pastic, More consumer BeneFits We have introduced a new design for the Vaseine Petroeum Jey jar. It has cut pastic by 3%, saving about 113 tonnes of resin a year. By moving to poypropyene we made the pack more recycabe. It aso needs ess energy to produce, saving 13,000 MW a year. At the same time there are cear benefits for the consumer the packs are more visuay appeaing and easier to open. paper & board gass PP other materias PE PET metas PVC Measured by materia type, paper and board and gass make up the majority of our waste footprint. Uniever Sustainabe Living Pan Progress Report

30 28 Uniever Sustainabe Living Pan Progress Report 2011 REDUcInG WASTE VIA REcYcLInG recyce Packaging 5.3 Working in partnership with industry, governments and ngos, we aim to increase recycing and recovery rates on average by 5% by 2015 and by 15% by 2020 in our top 14 countries. For some this means doubing or even triping existing recycing rates. We wi make it easier for consumers to recyce our packaging by using materias that best fit the end-of-ife treatment faciities avaiabe in their countries. 5.4 By 2020 we wi increase the recyced materia content in our packaging to maximum possibe eves. this wi act as a catayst to increase recycing rates. 3.4% increase in recycing and recovery rates, averaged across our top 14 countries. some of this increase resuted from improved data. 1,700 tonnes of post-consumer recyced materias incorporated into our rigid pastic packaging in We have initiated a number of projects from which we are hoping to seect the most successfu to be roed out esewhere. Many of our projects incentivise consumers to start recycing. others expore systemic soutions through improving oca waste infrastructure, working with oca government and waste services providers. recycing aerosos As eaders of the goba deodorant market we want more peope to recyce aeroso cans. In Juy 2010 we started a piot in partnership with the eading Braziian supermarket, Pão de Açúcar. It was successfu and has ed to the permanent introduction of aeroso coection at Pão de Açúcar sites. To date we have coected more than 1,600 tonnes of aerosos through 110 coection stations. recycing in the BathrooM Athough many consumers recyce kitchen waste, the bathroom tends to be forgotten. In 2011 we partnered with RecyceBank in the United States to encourage consumers to recyce Dove and Suave shampoo bottes in return for money off coupons. An onine modue educated peope about what they can recyce, what recycing symbos to ook for and then rewarded them with points which coud be redeemed for goods and services. The Dove modue was viewed 6 miion times. reduce Waste FroM our ManUFactUring 5.5 By 2020 tota waste sent for disposa wi be at or beow 2008 eves despite significanty higher voumes. this represents an 80% reduction per tonne of production and a 70% absoute reduction (versus a 1995 baseine). 5.6 a newy buit factories wi aim to generate ess than haf the waste of those in our 2008 baseine. over 62,000 fewer tonnes of tota waste in 2011 than in 2008 a combination of waste reduction and waste recycing. this represents a reduction of 40% in tota waste per tonne of production. compared to 1995, this represents an 82% reduction in absoute terms. 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. By the end of 2011, 74 of our 258 factory sites had reached zero non-hazardous waste to andfi. our target for 2012 is to achieve this at haf our sites as it brings both significant cost savings and environmenta benefits data is preiminary, see page 41.

31 TAcKLInG SAcHET WASTE tacke sachet Waste 5.7 our goa is to deveop and impement a sustainabe business mode for handing our sachet waste streams by We have demonstrated proof of principe on a technoogy known as pyroysis which turns sachet aminate into fue oi. Sachets are an efficient use of packaging, creating ess waste by weight per miiitre of product sod than bottes. However infrastructure for recycing or disposa is often imited, eading to itter and potentia ong-term environmenta damage. If we can hep create a vaue for this waste, there is an incentive for peope to coect it. Partnering with a company in chennai, India, we have demonstrated technica proof of principe of turning sachets, pouches and other fexibe pastic waste into fue oi at a viabe cost. our Hindustan Uniever factory in Pondicherry has successfuy used the fue to power its boiers. The task now is to find a way to incentivise coection on a arge scae. This wi require us to work in partnership with other users of fexibe pastic waste as we as municipa authorities and ngos. eiminate Pvc 5.8 We wi eiminate Pvc (poyviny choride) from a packaging by 2012 (where technica soutions exist). over 95% of Pvc removed from our portfoio by end 2011, incuding the eimination of Pvc from our rigid packaging containers and shrink seeves. We are making good progress towards eiminating PVc. For some packaging however, such as seas in the ids of food products, we are dependent on new commerciay viabe technoogy becoming avaiabe. affordabe Packs Sachets present peope with the option to buy sma quantities of our products when they need them and at a unit price they can afford a popuar offer in deveoping economies. FUTURE CHALLENGES We are not in the waste handing business so to achieve our target of increasing recycing and recovery rates we wi need to work in partnership with governments, re-processors and ngos. To make a start we are putting more of our own experts on to the task. In 2012 we are appointing packaging managers dedicated to increasing recycing and an advocacy manager who wi encourage positive change in government poicy on waste. But in the end our resources wi be sender compared to the scae of the chaenge facing society. In many countries waste eves are rising we beyond the capacity of the infrastructure to dea with them. none of us can sove this probem aone. nor is this an area for competitive advantage. Rather we a need to pay our part pooing experience and sharing investment to get to a faster soution together than we can achieve apart. Uniever Sustainabe Living Pan Progress Report

32 30 Uniever Sustainabe Living Pan Progress Report 2011 our approach Agricuture and forestry are the argest contributors to goba greenhouse gas emissions and are major drivers of cimate change. Haf of Uniever s raw materias come from either farms or forests. We are committed to sourcing sustainaby a our agricutura raw materias by As we as protecting the panet s natura resources, sustainabe sourcing heps us to manage a core business risk by ensuring security of suppy for the ong term. our approach is set out in the Uniever Sustainabe Agricuture code. Sustainabe sourcing can contribute to better incomes and iveihoods for farmers and their workers. It aso heps to maintain soi fertiity, enhance water quaity, reduce greenhouse gas emissions and protect biodiversity. our business is part of a compex suppy chain, incuding farmers and pantation owners as we as processors, refiners and traders of raw materias. To meet our target we wi need to work cosey with a of them to transform farming practices and encourage a wider move towards sustainabiity throughout the suppy chain. In measuring progress on sustainabe sourcing, we are dependent on the reiabiity and accuracy of the certification bodies we use. 6.0 OUR COMMITMENT By 2020 we wi source 100% of our agricutura raw materias sustainaby: 10% by 2010; 30% by 2012; 50% by 2015; 100% by We have continued to make good progress. In % of a our agricutura raw materias were sourced sustainaby. This increased to 24% at end WHAT MATTERS MOST Sourcing pam oi and paper and board sustainaby. We wi focus first on our top ten agricutura raw materia groups, which account for around two-thirds of our voumes. These are pam oi; paper and board; soy; sugar; tea; fruit and vegetabes; sunfower oi; rapeseed oi; dairy ingredients; and cocoa. 0 AcHIEVED 12 on-plan 1 off-plan 0 MISSED

33 sustainabe sourcing GRoWInG FoR THE FUTURE sustainabe PaM oi 6.1 We wi purchase a pam oi from certified sustainabe sources by % of pam oi purchases from sustainabe sources by end 2011, compared to 37% in of the 64% certified sustainabe pam oi we bought, most was in the form of GreenPam certificates. In parae we have made a start on deveoping segregated streams. GreenPam certificates support the production of pam oi certified to the standards of the Roundtabe on Sustainabe Pam oi. In 2011 Uniever remained the biggest singe buyer of GreenPam certificates gobay. our top 10 agricutura raw Materias (by voume 2011) sustainabe PaPer and Board 6.2 We wi source 75% of the paper and board for our packaging from certified sustainaby managed forests or from recyced materia by We wi reach 100% by an estimated 60% of our paper and board came from certified sustainaby managed forests or from recyced materia by end our approach is to maximise the voume of recyced materia that we use. When we have to use virgin materia we wi do so from certified sources with fu chain of custody. In the United States, a Ben & Jerry s ice cream cups are certified via the Forest Stewardship counci and a Lipton tea packs in Europe are being progressivey certified via the Programme for the Endorsement of Forest certification. sustainabe soy 6.3 We wi source sustainaby a soy beans by 2014 and a soy ois by For soy beans, we are exporing the most appropriate sustainabiity standard for this crop. 8% of soy oi sourced sustainaby in 2011: 4.5% in the form of rtrs certificates and 3.5% certified against the Proterra standard. We use soy bean extract in our AdeS drinks and soy oi in spreads, mayonnaise, dressings and pasta sauces. We purchased some of the first Round Tabe on Responsibe Soy (RTRS) certificates when they became avaiabe in June We beieve purchasing certificates wi be important to stimuate demand and encourage farmers to invest in sustainabe agricutura practices. pam oi paper & board soy fruit & vegetabes sugar rapeseed oi tea dairy sunfower oi cocoa knorr FUnd heps Boost suppier sustainabiity In 2010 Knorr estabished a 1 miion Partnership Fund to hep suppiers improve their sustainabiity practices. In 2011 the Fund set up 28 projects with suppiers in ten countries. These projects are aready showing resuts. For exampe, two grants were awarded to Spanish tomato grower, Agraz. As we as cutting water use, Agraz has supported biodiversity by creating an environment where birds such as white storks and backshoudered kites can thrive. Agraz s farm has now been designated a Knorr Landmark Farm. Uniever Sustainabe Living Pan Progress Report

34 32 Uniever Sustainabe Living Pan Progress Report 2011 SUSTAInABLE AGRIcULTURE sustainabe tea 6.4 By 2015 we aim to have the tea in a ipton tea bags sourced from rainforest aiance certified estates. By % of Uniever s tea, incuding oose tea, wi be sustainaby sourced. 57% of our ipton tea bag bends contained sustainabe tea at end 2011: 25% was fuy rainforest aiance certified and 32% contained a proportion of rainforest aiance certified tea en route to fu certification. overa, 28% of the tea purchased for a our brands was sourced from rainforest aiance certified farms. In 2007 we were the first major tea company to commit to sustainabe sourcing of tea on a arge scae. We are on track to achieve our 2015 miestone and 2020 target. our success is dependent on changing farming practices among our tea producers. In Kenya 250,000 farmers have now undertaken training in farmer fied schoos. By the end of 2011 we had aso trained neary 50,000 more farmers in Rwanda, Sri Lanka, Indonesia and Turkey. sustainabe FrUit and vegetabes 6.5 We wi purchase 100% of our fruit from sustainabe sources by We wi purchase 50% of our top 13 vegetabes and herbs from sustainabe sources by 2012 and 100% by this accounts for over 80% of our goba vegetabe and herb voume. We made steady progress in heping our fruit suppiers to move towards sustainabe practices. We expect to make our first purchases of sustainabe fruit in % of vegetabes and herbs purchased from sustainabe sources by end In 2011 we roed out an updated version of Quickfire, our sef-verification too, which heps suppiers assess whether their practices meet the requirements of the Uniever Sustainabe Agricuture code. By the end of 2011, over haf our suppiers of fruit and vegetabes had aready committed to sef-verification. sustainabe cocoa 6.7 We wi source cocoa sustainaby for our Magnum ice cream by a other cocoa wi be sourced sustainaby by % of cocoa for Magnum sustainaby sourced through rainforest aiance certification by end overa, 21% of a cocoa sourced sustainaby. We buy Rainforest Aiance certified cocoa for Magnum and Fairtrade cocoa for Ben & Jerry s ice cream. We have been expanding our Rainforest Aiance certification programme in West Africa. This wi boost sustainabe agricutura practices in the region. After just one year, over 10,000 farmers have achieved Rainforest Aiance certification. In 2012 we signed a ong-term partnership agreement with Barry caebaut, a suppier of high-quaity cocoa products. This wi create a step change in our abiity to source sustainabe cocoa. sustainabe sugar 6.8 We wi source a sugar sustainaby by around 1% of cane sugar sustainaby sourced by end We purchase two types of sugar cane sugar and beet sugar. cane sugar comes argey from tropica regions and accounts for the majority of our purchases. We have joined Bonsucro (a muti-stakehoder body dedicated to the sustainabe cutivation of sugar cane), and have encouraged our suppiers to do the same. our beet sugar suppiers are mosty European. During 2011 we assessed their practices against the Uniever Sustainabe Agricuture code.

35 SUSTAInABLE AGRIcULTURE sustainabe sunfower oi Fairtrade Ben & Jerry s cage -Free eggs 6.9 We wi source a sunfower oi sustainaby by in 2011 we scoped piot projects for sustainaby sourced sunfower oi in severa regions but have made ess progress than we anticipated. sustainabe rapeseed oi 6.10 We wi source a rapeseed oi sustainaby by We bought our first quantities of sustainaby sourced rapeseed in 2011, around 5%. this came about as a resut of a piot study in germany which we started in sustainabe dairy 6.11 We wi source a dairy produce sustainaby by % of dairy produce sustainaby sourced by end a ingredients in Ben & Jerry s ice cream that can be sourced Fairtrade wi be certified by in europe, a key commodities (sugar, cocoa, coffee, vania and bananas) used in our ice cream base mix were converted to Fairtrade by end in the United states, we progressed with the Fairtrade conversion of the cocoa powder and vania used in our ice cream. We have achieved our Fairtrade ambition in Europe. However, in the United States the compexities and on-costs in the Fairtrade suppy chain meant that we made ess progress than anticipated. We are revising our pans in the United States but sti anticipate being abe to convert most of our Fairtrade-eigibe ingredients, athough it wi take us beyond 2013 to get there. For the remainder of our ow-voume ingredients (such as mint and emon juice), we are evauating Fairtrade aongside other ethica sourcing initiatives We aim to move to 100% cage-free eggs for a our products,* incuding Ben & Jerry s ice cream and hemann s, amora and cavé mayonnaises. continuing our ro-out of products using cage-free eggs, we aunched hemann s with oive oi and hemann s canoa choestero Free in north america in In Western Europe, our Hemann s, Amora and cavé brands achieved 100% cage-free eggs in During 2010 in north America, Hemann s aunched a Light mayonnaise using cage-free eggs. By the end of % of a eggs used in Ben & Jerry s ice cream mix wordwide were cage-free. FUTURE CHALLENGES We have made good progress on the sustainabe sourcing of our top ten agricutura raw materias which account for around two-thirds of our voumes. We sti have much work to do on these. We know that the remainder wi be more compex to source sustainaby. For these smaer voume materias we wi be dependent on working with others whose voumes are arger and whose market infuence is greater. A further chaenge is how we source our non-agricutura (and therefore non-renewabe) materias responsiby. We have started to consider the socia, environmenta and business impications of this. * Where aowed by oca egisation. Uniever Sustainabe Living Pan Progress Report

36 34 Uniever Sustainabe Living Pan Progress Report 2011 our approach Uniever generates weath and creates jobs in the communities where it operates. Empoyees, governments, suppiers, investors and many others benefit economicay from our activities. The nature of our business in deveoping and emerging markets means that we work with miions of sma-scae businesses. The majority are smahoder farmers and smascae distributors who se our products. Most smahoder farmers grow their crops on ess than two hectares of and. They make up 85% of the word s farmers. often cut off from access to training and education, they ack knowedge of the techniques that woud hep them maximise their incomes. If we hep smahoder farmers improve their practices, by giving them access to higher-quaity seeds, training and fertiisers, they can often doube or even tripe their yieds. Uniever has been pioting a number of initiatives with smahoder farmers to scae up certification and connect new sources of raw materias from smahoders into our suppy chain. At the other end of the vaue chain our products reach consumers through a network of miions of sma-scae retaiers and distributors. This makes a significant contribution to our business. These activities provide new sources of income for peope who ive in areas where opportunities for work are often few and far between. 7.0 OUR COMMITMENT By 2020 we wi engage with at east 500,000 smahoder farmers and 75,000 sma-scae distributors in our suppy network. We have revised our target on smahoder farmers to focus on improving the quaity of their iveihoods. As far as sma-scae distributors are concerned, we engaged with 45,000 in India in WHAT MATTERS MOST Engaging smahoder farmers in our suppy network. 0 AcHIEVED 2 on-plan 0 off-plan 0 MISSED

37 Better iveihoods SUPPoRTInG EconoMIc DEVELoPMEnT heping smahoder FarMers 7.1 our goa is to engage with at east 500,000 smahoder farmers in our suppy network. We wi hep them improve their agricutura practices and thus enabe them to become more competitive. By doing so we wi improve the quaity of their iveihoods. (target revised 2012.) detaied anaysis of our suppy network prompted us to revise our target. Detaied mapping of our sourcing networks shows that we have around 1.3 miion smahoders inked into our suppy chain. We have revised our target in the ight of this information (see 7.1 above). Instead of just inking farmers into our suppy chain, our new target commits us to improve the iveihoods of at east 500,000 of them and provide the evidence that our intervention has had a positive effect. We recognise that it is difficut to provide evidence of improvements in iveihoods. We wi invest time in 2012 to deveop an appropriate methodoogy to do this. our aim is to work with our partners to raise the skis and productivity of smahoders so they increase their income whie we benefit from sustainaby sourced crops and security of suppy. We have made a good start. Working with others, we had heped to provide training on better agricutura practices to over 300,000 smahoders by the end of The majority were tea farmers but we aso trained over 10,000 cocoa farmers. We now need to estabish whether this has increased their income and improved their iveihoods. supporting sma -scae distributors shakti, our door-to-door seing operation in india, provides work for arge numbers of peope in poor rura communities. 7.2 We wi increase the number of shakti entrepreneurs that we recruit, train and empoy from 45,000 in 2010 to 75,000 in We operate simiar schemes in Bangadesh, sri anka and vietnam which we are aso committed to expanding. 45,000 entrepreneurs ( shakti ammas ) were seing products to over 3 miion househods in 100,000 indian viages in During 2011 we strengthened the programme, continuing to train our entrepreneurs and improve our ways of working. Foowing a piot in 2010, we extended the mode to men by introducing Shaktimaans. These are typicay the brothers or husbands of existing femae entrepreneurs ( Shakti ammas ) who se our products by bicyce to surrounding viages. By the end of 2011, the number of Shaktimaans supporting our Shakti ammas had risen to over 30,000. We aso partnered with the State Bank of India on a piot project to bring banking services to ow-income peope. Run in Maharashtra and Karnataka in 2011, it enabed 12 Shakti ammas to hep viagers open 1,000 bank accounts. FUTURE CHALLENGES We have considerabe experience of training smahoder farmers and know how compex the task is. But we have no easy answers on how to do this at scae. We have earnt that three factors need to be in pace for ong-term success: n a strong business case: smahoder ventures with cear economic merit are much more ikey to succeed n the right operating mode: working with the right partners who know how to engage with smahoders n evidence of improvement: to sustain our effort we need to understand whether the training and support we provide is having a positive effect on iveihoods. In 2012 we wi be seecting future projects with smahoders which meet a three of these criteria. scaing UP Together with Rainforest Aiance, the Kenya Tea Deveopment Agency and The Sustainabe Trade Initiative (IDH), our Lipton tea brand supports farmer fied schoos in Kenya. By the end of 2011, we had trained 250,000 Kenyan smahoder tea farmers around haf the tota in the country. neary 45,000 more have aso been trained in Rwanda, Sri Lanka and Indonesia and in a separate initiative in Turkey, Lipton reached another 5,000 smahoders. Uniever Sustainabe Living Pan Progress Report

38 36 Uniever Sustainabe Living Pan Progress Report 2011 PeoPe HEALTHY EMPLoYEES AnD BETTER WoRKPLAcES 8.0 our approach our empoyees are essentia to our business success and to achieving the Uniever Sustainabe Living Pan targets. It is in our interest to ensure that a 171,000 of them are heathy, motivated and committed. compementing our targets are three important areas which we keep under reguar review diversity, human and abour rights and training. We performed extremey we on workpace safety and achieved our 2011 target on video conferencing and our 2011 miestone on Lampighter. We made steady progress on the others. 1 AcHIEVED 7 on-plan 0 off-plan 0 MISSED reduce WorkPace injuries and accidents 8.1 We aim for zero workpace injuries. By 2020 we wi reduce the tota recordabe Frequency rate (trfr) for accidents in our factories and offices by 50% versus % reduction in trfr at end 2011 compared to 2008, from 2.1 to 1.26 accidents per 1 miion hours worked. diversity Uniever is an extremey diverse organisation in terms of its ethnic and cutura make-up. The Uniever Leadership Executive (ULE) comprises managers from five countries and the top 100 executives come from over 20. However, our gender mix is not what we want it to be. Athough we have three femae non-executive Directors on the Board, there is ony one woman on the ULE. We are tacking the issue through a diversity board chaired by the ceo and by a requirement that the shortist for each senior job shoud contain a woman. Since 2007, the proportion of women in senior positions has risen from 23% to 28%. More than 50% of our graduate recruits are women. In principe, the pipeine is being fied, but our task is to ensure many more reach the top eves. human and abour rights Uniever s approach to human and abour rights is set out in our code of Business Principes. We are signatories to the Un Goba compact, support the ILo conventions and are working to deveop a more incusive approach to human rights based on the Ruggie principes. However, probems do occasionay surface. In the past three years we have deat with concerns about contract abour in Pakistan, union recognition in India and aegations of the use of chid abour in Madagascar (for vania). That such issues arise in a business of our scae and geographic spread is no surprise. The rea test is that they are identified and escaated to top management so that they are resoved. The chid abour accusation was deat with swifty and the abour issue in Pakistan was resoved via mediation through the oecd. training Uniever has a strong reputation for the quaity of its management and workpace training. In 2011, 128,000 peope were registered for the Uniever Learning Academy s courses. Much of our training is now deivered onine through over 7,600 training modues. For exampe, in 2011 over 95% of our managers competed the first of a new set of modues on our code of Business Principes. A particuar chaenge for 2012 and beyond is to buid our understanding and capabiity on sustainabiity. Aready over 6,000 peope have competed a Uniever Sustainabe Living Pan e-modue. In future we wi embed sustainabiity into our core training for business functions. We are among the eaders in our industry on safety. Therefore the target to have our accident rate is a stretching one. our performance in 2011 is a positive first step towards our goa. improve empoyee heath and nutrition our ampighter empoyee programme aims to improve the nutrition, fitness and menta resiience of empoyees. By 2010 it had aready been impemented in 30 countries, reaching 35,000 peope. 8.2 in 2011 we aimed to extend the reach of ampighter to a further eight countries. We wi impement ampighter in an additiona 30 countries between 2012 and our onger-term goa is to extend it to a the countries where we operate. ampighter was roed out to 11 countries in the Sustainabe Living section of our website incudes more information on our approach to peope management, incuding diversity, abour rights, training and deveopment. our medica and occupationa heath strategy addresses the top three heath risks we have identified: menta heath; ifestye factors (eg exercise, nutrition, smoking, obesity); and ergonomic factors (eg repetitive strain injury). Lampighter is key to addressing these.

39 reduce empoyee trave 8.3 We are investing in advanced video conferencing faciities to make communication easier whie reducing trave for our empoyees. By 2011 this network wi cover more than 30 countries. 54 countries were covered by end We exceeded our 2011 target. We use teepresence in 26 countries and this system aone eiminated the need for around 14,500 short-hau and over 23,500 ong-hau fights. It saved us 39.5 miion in costs and 113,500 tonnes in co2 emissions. reduce energy consumption in our offices 8.4 By 2020 we wi have the energy (kwh) purchased per occupant for the offices in our top 21 countries versus in 2011 we made steady progress in deveoping our systems for sharing information, reporting progress and monitoring performance. reduce office Waste 8.5 in our top 21 countries, at east 90% of our office waste wi be reused, recyced or recovered by 2015 and we wi send zero waste to andfi by By 2015 we wi reduce paper consumption by 30% per head in our top 21 countries. 8.7 We wi eiminate paper in our invoicing, goods receipt, purchase order processes, financia reporting and empoyee expense processing by 2015, where egay aowabe and technicay possibe. severa countries are moving towards zero waste. We continue to cut paper use by encouraging empoyees to print ess and reducing the number of printers. a new goba print standard wi hep reduce voumes further by ensuring that dupex printing becomes a defaut setting. the eimination of paper from our office processes is compex as it spans a number of business functions. We are mapping our existing processes and their impacts. increase sustainabe sourcing of office Materias 8.8 By 2013 we wi source a paper-based office materias for our top 21 countries from either certified sustainabe forests or recyced sources. 90% of our paper-based materias came from certified sustainabe forests or recyced sources in We are starting to see the resuts of severa initiatives. For exampe, in the UK we have been improving the efficiency of our servers, avoiding approximatey 535,000 in energy costs equivaent to 4.5 GWh. In 2011 we pioted software toos which automaticay shut down inactive Pcs, saving around 25% in Pc energy consumption. The software wi be roed out gobay in Uniever Sustainabe Living Pan Progress Report

40 38 Uniever Sustainabe Living Pan Progress Report 2011 externa commentary Our externa advisers the Uniever Sustainabe Deveopment Group share their views on our progress. The Uniever Sustainabe Deveopment Group (USDG) comprises externa experts who provide advice and guidance on the deveopment of our strategy. The Group s coective expertise covers environmenta, socia and economic issues in both deveoped and deveoping countries. It meets twice a year to discuss sustainabiity issues. We share the insights from these meetings with our Board s corporate Responsibiity and Reputation committee and our senior eadership. Jonathon Porritt There are two things that make the Uniever Sustainabe Living Pan so specia. The first is its centraity. It s at the heart of Uniever s growth pans or, to be more accurate, it wi be when empoyees have become fuy engaged, when function heads (in Finance, HR and IT, for instance) see it as their Pan, just as much as their coeagues in the suppy chain do, and when a brand managers across a the categories get the buzz about seing sustainabiity as much as about seing more stuff. Uniever isn t there yet on that integration story. But that s the dea. As Pau Poman says, sustainabiity and growth are not in confict. The second thing is what I ca the Uniever Sustainabe Living Pan s boundary conditions. The Pan coud just focus on Uniever s direct impacts. But that s reativey sma beer, even in a company as big as this. It coud aso cover the performance of a the suppiers that provide Uniever with its raw materias and it does. But even that s not enough. The reay big impacts come through the use of Uniever s products in the home, not in the sourcing, manufacture and distribution of them. That s where the ambition eve of Uniever (taking shared responsibiity for those impacts in use) jumps out at you. There are not many companies doing that today, and none at this scae. And that s what keeps Uniever s senior managers awake at night so the rest of us can seep a itte bit more easiy! Heio Mattar As a new member of the USDG, I am positivey impressed by Uniever s audacious goas and commitments, especiay its efforts to ensure that they permeate the whoe organisation, verticay down the hierarchy and horizontay across the different regions. Uniever s beief in the power of innovation and co-operation through partnerships is the main impetus for this journey, and this beief is compemented by a determination to engage consumers and persuade them to behave more sustainaby. Uniever has set out its commitments even before the path to achieve them is fuy cear. The ethica urgency to do so derives from its awareness of the huge positive impact that it potentiay has on the environment and on society Uniever is both taking the tak and waking the wak. I work in the area of behaviour change among consumers, and my presence in the USDG demonstrates how wiing Uniever is to face this singuary difficut chaenge. Getting the pubic on-side is centra for Uniever if it is to achieve its commitments, given that some of them reate directy to consumer behaviour, for exampe changing the hygiene habits of more than a biion peope. This demands a new consumer, one who is wiing to contribute to the environment and society by way of his or her consumption. Uniever is working to find ways to engage consumers and encourage more sustainabe consumption: a process which wi benefit and protect Uniever s reputation, and which wi make a great positive contribution to human society as a whoe.

41 the Uniever sustainabe deveopment group Maini Mehra The true vaue of corporate change is not its immediate impact but the demonstration effect it provides. When Uniever adopted the Sustainabe Living Pan in 2010, it became an activist. This was not just any company fogging a sustainabiity strategy. This was Uniever. A goba company with a hundred years of history and a presence in over 190 markets. A coossus shaking hands with 2 biion peope a day. When that handshake carries a message and the consumer reciprocates, these sma acts coud change the word. This is the promise behind Uniever s Sustainabe Living Pan. The Pan is bod and brazen. Bod because of the goas it sets. Brazen because it invites us indeed, reies on us to be the change-makers. It is a straightforward admission that I cannot change the word without you. Uniever has done the maths. Humanity has overshot critica ecoogica threshods, and this is why Pau Poman speaks of new modes and a new capitaism. This is a rare admission and rarer sti for a ceo. This is what sets the Uniever Sustainabe Living Pan apart. It is a conviction strategy for growth through sustainabiity and its tone is urgent. This is exacty as it shoud be. The markets of the future cannot be the same as today, but reshaping expectations with sustainabiity in mind has to be a conscious and coective project. Strategic partnerships and a coaborative approach have never been more important in this age of revoution. If the Uniever Sustainabe Living Pan is to succeed, it has to be the peope s project. Ma Jun Whie the EU and many deveoped countries are suffering economic difficuties, deveoping countries ike china and India continue to grow rapidy. Their rising popuations and increasingy better-off societies generate huge demand and create growth opportunities for consumer goods suppiers ike Uniever. However, most emerging markets are facing daunting environmenta chaenges such as poution, resource depetion and eco-degradation. These countries hope to stimuate consumption to enhance iving standards and drive economic growth, but they are concerned that it may ead to more poution and the unsustainabe use of resources. Uniever is in a unique position to hep reconcie the conficting targets of consumption and environmenta protection. For many years it has been improving the environmenta performance of its manufacturing and increasing the sustainabe sourcing of agricutura raw materias. More recenty it has worked with ngos to motivate its industria suppiers in china to cean up. But what is reay specia is the company s decision to set its environmenta targets based on a per consumer use basis. If it is to achieve its ambitious goas, Uniever has to inspire and enabe consumers to adopt more sustainabe habits. This is no easy task changing consumers habits is tricky. But change is urgenty needed, particuary in deveoping countries. I am peased Uniever has deveoped its Five Levers for change methodoogy and encourage it to appy its marketing power to drive more sustainabe practices as I beieve this wi have very positive socia impacts. Jonathon Porritt Founder director of Forum for the Future, Uk heio Mattar President of the akatu institute for conscious consumption, Brazi Maini Mehra Founder and ceo of the centre for socia Markets, india Ma Jun Founder director of the institute of Pubic and environmenta affairs (ipea), china Uniever Sustainabe Living Pan Progress Report

42 40 Uniever Sustainabe Living Pan Progress Report 2011 verifying our APPRoAcH We vaue independent opinion and input on our approach. governance Achieving our goas requires commitment at a eves of the organisation. We have strong governance structures in pace to manage our sustainabiity programme and ensure it becomes embedded in our business. Impementation and deivery of the Pan is monitored quartery by the Uniever Leadership Executive ed by the ceo. Four members of this group have sustainabiity as part of the targets which determine their eves of reward: the ceo, the chief Marketing and communication officer and two category Presidents. The Executive is supported by the Uniever Sustainabe Living Pan Steering Team which incudes our category Presidents and the eaders of key business functions. The roe of the Board s corporate Responsibiity and Reputation committee is to oversee Uniever s conduct as a responsibe business. It comprises three independent non-executive Directors and is given reguar updates on the Pan which the committee feeds back to the Board. Further independent opinion on our strategy comes from our externa advisers the Uniever Sustainabe Deveopment Group (see page 38). Materiaity The Uniever Sustainabe Living Pan is the bueprint for achieving our growth ambition of doubing the size of our business whie reducing our environmenta impact. It defines the sustainabiity issues that are most materia to our business and sets targets to address them. This enabes us to manage risk (such as securing ong-term suppies of agricutura raw materias) and to expoit new business opportunities. We define materiaity as: (1) the degree to which an issue is aigned with our business, brand portfoio and geography; (2) the potentia impact on our operations, sourcing or consumers; (3) the extent of Uniever s infuence on the issue; (4) the importance of an issue to our key stakehoders. We reguary engage with our stakehoders particuary suppiers, consumers and ngos as they are crucia to achieving many of our targets. MeasUring Progress We vaue independent views on how we have chosen to measure our progress. Some of the inputs and outcomes we are seeking to assess are difficut to measure and we expect that our performance indicators wi evove over time. Beow we set out how we measure our footprint and what experts think of this approach. We aso summarise our key metrics and how we wi assure them. our environmenta FootPrint Measuring the environmenta footprint of the making and use of our products is a compex process. It requires a detaied anaysis of the water, waste and greenhouse gas impacts of hundreds of products spread across 14 countries. The cacuation accounts for 70% of our voumes. For each product, we anayse sourcing and ingredient information, manufacturing impacts and data on consumer habits (which often vary by country). An interim assessment of 2010 data shows that our per consumer use footprint has remained broady unchanged across greenhouse gases, water and waste compared with our 2008 baseine. To improve speed and accuracy we are investing in an automated process. This wi aow us to measure progress with greater frequency in future. an independent view of our environmenta Metrics During 2011 we invited a pane of ifecyce anaysis experts ed by Professor Roand cift to review our approach to measuring and reducing our environmenta impacts. The purpose of this exercise was to assess the robustness, reevance, quaity and competeness of our approach, incuding the way in which we set our targets and communicated the resuts. The pane conducted a scientific review of the three metrics for greenhouse gas emissions, water and waste per consumer use (referred to as the Less Environmenta Impact programme). It ooked in particuar at the scope and boundaries of the metrics, the vaidity of cacuation methods, assumptions and data sources. statement on Uniever s ess environmenta impact (ei) PrograMMe The scientific and technica Peer Review Pane, whose members are isted beow, has examined the metrics and baseine proposed by Uniever to support deveopment and monitoring of the LEI programme. We consider Uniever s approach to be sound and appropriate. Uniever has seected a set of impacts which are reevant to describing the ifecyce environmenta impacts of the company s businesses and products. The baseine data provide a representative picture of current performance in terms of these impacts, and consistent appication of the approach shoud give a sound indication of progress towards the targets the company has set. During the review, we identified a number of aspects of the LEI approach where further carification was needed. The way in which our questions were answered was one of the features that encouraged our confidence in endorsing the approach. We have made a number of recommendations to improve the carity and transparency of the process. We hope and expect that Uniever wi pubish our detaied review and respond to the questions raised, and set up a mechanism to enabe answers to be provided to other scientific and technica questions which might arise in future. We aso note that Uniever wi need an ongoing work pan to ensure that evoution of the metrics and the measurement process continue to refect current best practice and scientific rigour, and to verify progress against the targets set out in the LEI Pan. Professor roand cift University of surrey, Uk Professor Matthias Finkbeiner technica University of Berin, germany dr Mark goedkoop Pré consutants, netherands Professor sarah Mcaren Massey University, new Zeaand stuart orr WWF, switzerand

43 ASSURANCE Externa assurance of sustainabiity performance indicators is important to us. Uniever s environmenta reporting has been independenty assured since For the past five years Deoitte LLP have provided imited assurance on ten key performance indicators (KPIs) and are repeating this work for Data marked throughout this Report is preiminary and is part of this work. Deoitte s report and their concusion wi be pubished on our website in mid We have appointed Pricewaterhouse- Coopers LLP (PwC) to provide assurance of the Uniever Sustainabe Living Pan. They have started to assure a number of KPIs, seected on the basis of their materiaity. We wi report the findings of their work in mid OUR METRICS Our Pan has three big goas to improve heath and we-being, reduce environmenta impact and enhance iveihoods. Underpinning these goas are commitments spread across seven piars and a set of targets for peope, around 60 targets in tota. Listed beow are the key metrics we use to measure progress on our piar commitments. HEALTH AND HYGIENE (page 10) The number of peope reached on a cumuative basis by an intervention which, based on past studies, can be expected to resut in sustained, positive behaviour change. NUTRITION (page 14) The percentage of products which meet the highest nutritiona standards, based on gobay recognised dietary guideines for a four priority nutrients: sat, saturated and trans fat and sugar. GREENHOUSE GASES (page 18) Greenhouse gases per consumer use: CO2 equivaents across the product ifecyce (grams).* Our metric measures the greenhouse gas emissions associated with the ifecyce of a product from raw materias, to manufacturing to consumer use and disposa. WATER (page 22) Water per consumer use in waterscarce countries: water added to the product pus the water used by consumers in water-scarce countries (itres).*+ Currenty our metric does not incude water used in agricuture. We are making some progress on this but have more to do (see target 4.1). Our metric aso excudes water used in our manufacturing operations which we measure as part of our eco-efficiency programme (targets 4.5 and 4.6). WASTE (page 26) Waste per consumer use: packaging and product eftovers that have not been reused, recyced or recovered (grams).* We define waste as the amount of product eft in the pack, and the amount of packaging that ends up either in andfi or as itter, ie the amount of packaging that is not recyced, reused or recovered for energy recapture. Our metric requires the use of pubished nationa indices for recycing and recovery, or our own estimates where these are not avaiabe. The metric excudes the waste generated by our manufacturing operations which we measure as part of our eco-efficiency programme (targets 5.5 and 5.6). SUSTAINABLE SOURCING (page 30) Raw or packaging materia sourced from verifiabe sustainabe renewabe sources or made from recyced materias (% by weight). BETTER LIVELIHOODS (page 34) We recognise that it is difficut to provide evidence of improvements in iveihoods. We wi invest time in 2012 to deveop an appropriate methodoogy to do this. * The metrics for our commitments for greenhouse gases (GHG), water and waste 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, eg the GHG impact of drinking a singe cup of tea; the water needed for one hair wash with shampoo; or the waste associated with one serving of soup. + Water-scarce countries: China, India, Indonesia, Mexico, South Africa, Turkey and USA, representing around haf the word s popuation. More detais on performance against Design Paper If you have finished with this report our Uniever Sustainabe Living Pan Red Letter Design Amadeus 100% Recyced Sik and no onger wish to retain it, pease targets can be found on our website, 100% recyced content, 100% pass it on to other interested readers which aso provides comprehensive Printing de-inked post-consumer waste. or dispose of it in your recyced paper coverage of many other topics of Charterhouse waste. Thank you. interest to our stakehoders. (ISO 9000 & 14001) Uniever Sustainabe Living Pan Progress Report

44 Uniever n.v. Weena 455, Po Box DK Rotterdam The netherands T +31 (0) F +31 (0) commercia Register Rotterdam number: Uniever Pc Uniever House 100 Victoria Embankment London Ec4Y 0DY United Kingdom T +44 (0) F +44 (0) Uniever Pc registered office Uniever PLc Port Sunight Wirra Merseyside ch62 4ZD United Kingdom Registered in Engand and Waes company number: For further information on our socia, economic and environmenta performance, pease visit our website