progress worldwide and benelux - unilever.be aguai factory in brazil, opened in 2015, ... target...

15
unilever sUSTAINABLE living plan SUMMARY OF PROgRESS 2016

Upload: lydung

Post on 23-Apr-2018

215 views

Category:

Documents


2 download

TRANSCRIPT

unilever sUSTAINABLE living plan summary of progress 2016

SUSTAINABILITymAkES BUSINESS

growth and geopolitical in- sustainable living brands

grEw

50% fASTEr

than the rest of the business

2 | Unilever sustainable living plan

LIvINg oUrpUrpoSE Unilever has now seen 8 years of top line progress, averaging twice the rate of overall market growth, whilst simultaneously improving the bottom line.

Not easy to do in today’s environment. un­surprisingly, shareholders have benefited with a return of over 200%.

for unilever, shareholder return is a result of what we do, but not why we are here. for over a hundred years, our goal has been to improve the lives of the world’s citizens, one day and one person at a time.

With his commitment to making cleanli­ness commonplace and improving lives, William Lever focused on what he called ‘shared prosperity’. our mission has not changed much since then and with the unilever sustainable Living plan, we are still showing there is a different way of doing business – one based on multiple stakeholders rather than a single-minded focus on shareholders.

We have made great progress. our results show that it is good for business, with in­creasing evidence that our purpose-driven brands do better. our 18 sustainable Living Brands grew 50% faster and account for 60% of total growth. We are already reach­ing hundreds of millions with health and hygiene programmes, and providing liveli­hoods to millions more, especially through

our focus on women’s empowerment. The usLp is also guiding our m&a activity, including last year’s acquisitions of Blueair, a company focused on air purification, and seventh Generation, a home and personal care business that uses plant based in­gredients, which thinks seven generations ahead in all it does.

Increasingly we are guided by the uN sustainable Development Goals, which, in addressing humanity’s biggest challenges, also provide an enormous opportunity for responsible growth. Indeed, the Business and sustainable Development Commission, under the incredible leadership of mark malloch Brown, calculated that the sDGs offer a $12 trillion economic opportunity and can create up to 380 million new jobs.

at a time when we have difficulties growing our economies and creating employment, the cost of not acting is becoming more expen­sive. With 9% of global GDp devoted to conflict prevention or wars, and climate change cost­ing 5%, it is easy to see why – both morally and economically – we need to act.

Companies that cannot show they are making a positive impact in addressing challenges like hunger, climate change, gender equality or access to education will soon, in my view, have no reason for being. There is no business case for enduring poverty and no reason to accept companies that are run for the benefit of a few at a cost to many.

There are still many challenges to over­come, including the short-term focus of financial markets, the difficulty in giving

social or environmental capital a true val­ue and political systems too often focused on the next election cycle instead of the next generation.

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

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

Paul Polman Chief executive officer, unilever

SENSE Our business grew in 2016 – and grew in a way that was consistent, competitive, profitable and responsible.

our unilever sustainable Living plan (usLp) is at the heart of our strategy for achieving busi­ness growth. since its launch in 2010, it has provided a blueprint for achieving our vision to grow our business whilst reducing our environmental footprint and increasing our positive social impact. our usLp is based on a sim­ple business imperative: that responsible growth is the only model that will succeed in a world of changing consumer expectations and dynamic mar­ket trends.

Delivering sUccess in a vOlatile wOrlD The slowing global economic

stability that marked 2016, highlighted once again that progress cannot be taken for granted – for business or for the world. While we always have more work to do, our ability to deliver growth in this context reinforces our commitment to our usLp. We believe that the path we have set ourselves is both the right one, and the best. It is helping us build value in the short-term and it will lead to us achieving our purpose as a business: making sustainable living commonplace. The usLp makes us more competitive – it helps building our brands, spurs innovation, strengthens our supply chain, lowers costs and risks, and is building trust. sustainability is creating value for unilever and society.

3 | Unilever sustainable living plan

oUr 2016 progrESSin 2016, we continued to see evi-dence that sustainability is driving our business growth. Our sustain-able living brands grew 50% faster than the rest of the business and delivered over 60% of our growth.

our usLp has three big goals: to help more than a billion people improve their health and well-being by 2020, to halve the envi-ronmental footprint of our products across the value chain by 2030, and to enhance the livelihoods of millions of people by 2020.

sUccess in OUr OPeratiOns, bUt valUe chain challenges remainWe have made good progress on many of our usLp goals. By the end of 2016, we had helped 538 million people improve their health and well-being. In our manufactur-ing operations, we have cut Co2 from en-ergy by 43%, water abstraction by 37% and total waste disposed by 96% per tonne of production since 2008.

We have made the biggest gains in areas over which we have most control, but re-ducing the environmental impact of how consumers use our products continues to be difficult. since 2010, the water impact of our products has reduced by around 7%, while the waste associated with consumer disposal of our products has reduced by around 28%. However, the greenhouse gas impact of our products across their lifecy-cle, including consumer use, continues to edge up and has now increased by around 8% since 2010. Despite the challenges,

we are fully committed to a value chain approach and to becoming carbon positive in our own operations. further, in Janu-ary 2017 we announced a commitment to ensure that all of our plastic packaging is fully reusable, recyclable or compostable by 2025.

ensUring POsitive imPacts thrOUgh OUr sUPPly chainsustainable sourcing remains a central element of our usLp, and we continue to develop our sourcing policies to make sure we are having the greatest impact. We have therefore moved away from Greenpalm certificates for palm oil towards what are called ‘physical, certified sources’ – which has meant a reduction in our sustainably sourced agricultural raw materials perfor-mance, from 60% in 2015 to 51% in 2016. our third usLp goal – to enhance the livelihoods of millions of people – has seen steady progress. In 2016, 67% of our procurement spend was through suppliers meeting our responsible sourcing policy’s mandatory criteria and we enabled around 920,000 women to access initiatives de-signed to promote their safety, develop their skills or expand their opportunities.

We have helped around 650,000 small-holder farmers to access initiatives aiming to improve their agricultural practices. In addition, we have helped 1.5 million small-scale retailers to access initiatives aiming to increase their incomes. However, this is a decrease compared to the 1.8 million we helped in 2015, following a reassessment of the number of stores in India that can ben-efit from our perfect stores programme.

95% of our top 13 vegetables

and herbs are sustainably

sourced

sUnlight: freeing time fOr wOmen, winning market sharesunlight, part of our global surf brand, is having a big impact in south africa with its new handwashing laundry powder, which uses our ground-breaking smartfoam technology to break down suds faster. In drought-affect-ed south africa, where women still do the majority of laundry by hand, reducing the number of rinses required to wash laundry can make a real social difference by liberating women’s time as well as saving water. as consumers benefit, so does our business – sunlight’s market share is up by 2.6% versus 2015.

hellmann’s: cOnnecting cOnsUmers tO real fOODWhere does the food we eat come from – and how do we know it is what Hellmann’s call ‘real food’? To help answer that question for Canadian consumers in 2016, Hellmann’s launched ‘project seed’ – a campaign that connected children and their parents with the farms on which our ingredients are grown. This showed them what it means for a farm to achieve our Blue ribbon farm status by meeting our criteria for sustainable sourcing. unscripted, live-streamed farm visits were at the heart of the campaign – and a 6% growth in sales supports our belief that consumers agree that if you care about food, you care about how it is sourced.

sUviDha: OPening new markets while imPrOving hygieneWe opened the first of our suvidha community centres on World Toilet Day in 2016. Based in one of mumbai’s largest slums, suvidha will help 1,500 people from low-income households who face severe challenges because hygiene infrastructure is either scarce or ex-pensive to use. The pay-per-use centre brings together Domestos, pureit and Lifebuoy to deliver safe drinking water, flushing toilets, clean showers and laundry facil-ities, all at an affordable cost. applying circular econo-my principles, suvidha recycles water used for washing to flush the toilets – bringing environmental benefits, as well as improving hygiene for thousands of people and increasing the profile of some of our core brands.

oUr 2016 progrESS ExAmpLES

2.6%growTh

in market share in 2016

6%SALES growTh

5 | Unilever sustainable living plan

harnessing OPeratiOnal ecO-efficiency in wOrlD class factOriesoperational eco-efficiency technologies in our factories not only reduce the environmental impact of the man-ufacture of our products, they also help us avoid costs. our aguai factory in Brazil, opened in 2015, is a great example. as well as meeting the Zero Waste to Landfill target achieved by all unilever factories, it also uses solar energy to power all the needs of the site, uses LeDs and skylights to reduce power requirements, and is expected to meet 60% of its water needs through rainwater harvesting and water recycling. Globally, the costs avoided through eco-efficiency in manufacturing have exceeded €700 million since 2008.

DOve: grOwing with PUrPOseWe know body image is one of the top three worries in life for australian girls – so our Dove brand, which has building self-esteem at its heart, partnered with Coles, one of australia’s biggest supermarkets, to help build self-esteem among 100,000 young people in august 2016. our ‘What is your daughter searching for?’ cam-paign, in partnership with Coles and parents, highlight-ed that a third of girls have thought about, or searched online, ‘can teens get cosmetic surgery?’ or ‘do I have an eating disorder?’ The campaign ran in 700 stores, resulting in 12% sales growth for Dove’s skin cleansing products in Coles during the promotional period. The Dove self-esteem project has so far reached 23 million young people worldwide.

for further information on our social, economic and environmental performance, please visit our website unilever.com/sustainable-living

oUr 2016 progrESS ExAmpLES

6 | Unilever sustainable living plan

six years ago, we started with our Unilever sustainable living Plan. we achieved and learned a lot in those six years. we have raised our ambitions and addressed new challenges. we are growing in a sustainable way, both globally and in the benelux. below you find an overview of our progress in the benelux in 2016 and beginning of 2017.

progrESS IN ThE BENELUx

7 | Unilever sustainable living plan

by 2020, we will help more than a billion people in the world to improve their health and well-being. in the benelux, we will especially focus on product improvement, informing people about healthier food, help build self-esteem amongst young people and encourage people to exercise more.

hEALTh & hygIENE bUilD self-esteemThe Dove self-esteem project helps young people to build their self-esteem. Dove reached more than 47,000 young people in the Netherlands and more than 10,000 in Belgium through educational programs.

food reDUce salt cOntent

MM In the Benelux, we have already considerably lowered the salt content in our products. We are working hard to further reduce the salt content to ensure that by 2020, 75% of our worldwide foods products meet the salt content that enables a maximum salt intake of 5g each day, as recommended by the World Health organization.

MM 61% of our foods range in the Benelux, measured in terms of volume, met the objective of 5 g salt per day in 2016.

examplesMM unox has launched three new soups in the Netherlands, named ‘unox proeverij” (unox tasting). These soups meet the objective of 5 g salt for soups and the highest nutritional standards for salt,

saturated fat and trans fat, based on the globally recognized dietary guidelines.

MM unox also launched three new sorts of meatballs that meet the objective of 5 g salt for meat. one of the three products is vegetarian and is made of soy, beans and wheat protein. By launching this vegetarian meatball, unox also provides the consumer with a plant-based option.

MM unilever food solutions Nederland has reduced the salt content in all unox basic soups with an average

of 14.7 %. The soups now meet the 5 g salt objective for soups.

mOtivate PeOPle in taking gOOD care Of their heart

MM as part of the cholesterol awareness campaign, Becel proactive developed the Cholesterol starter Kit in 2013 for people in the Benelux who actively want to reduce their cholesterol. since the start of the campaign, more than 200,000 Belgians and 950,000 Dutch people received a starter Kit.

MM High cholesterol is a risk factor in the development of cardiovascular diseases. To provide people with an easy way to measure their cholesterol, the Dutch Cholesterol Test was launched at a large number of service pharmacy stores in february 2014. The Dutch Heart foundation, the Dutch Dietetic association and Becel proactiv supported this initiative. a total of approximately 40,000 people were tested. after the launch, the Dutch Cholesterol Test went ‘on tour’ in June 2014, with mobile blood collection units. Consumers can have their cholesterol measured at a mobile collection unit somewhere nearby, without appointment. In 2016, 40,000 people were tested at service

pharmacies, Vegro medical supply stores, consumer exhibitions and local women’s meetings. since 2014, approximately 220,000 people have been tested and informed about their blood cholesterol levels.

MM from January 2017 onwards, The Dutch Heart foundation together with Becel, conduct a campaign to promote the personal Health Check, so people get a better understanding of their health. Via a code on the promotional packaging, you get access to an online questionnaire, along with a home cholesterol test. The results are merged in a personal health report, including advice and tools to start improving your health.

MM In 2016, mayors in Belgium supported the campaign ‘my active municipality’. This campaign was organized by the Belgian Cardiologic League and Becel proactive to inform people about the risks of getting cardiovascular diseases when having high cholesterol. on a national level, thousands of people were reached with these cholesterol-lowering activities and more than 5,000 participants registered online to support the campaign.

imPrOve the fat cOmPOsitiOnMM In 2016, 96% of our Benelux range contained soft margarines based on vegetable oil*, less than 33% saturated fat and at least 67% good, unsaturated fat.

MM furthermore, our most important spreads in tubs (Becel, Blue Band and planta) provide at least 15% of the essential fatty acids, as recommended by international dietary guidelines.

MM mid-2016, the first 100% vegetable Becel was launched; free of any animal derived ingredients and therefore suitable for a vegan, Halal, lactose and dairy free diet.

MM By means of the 100% vegetable products and campaigns, Becel wants to encourage consumers to eat more vegetable food and inform them about the effects a vegetable lifestyle has on health and the environment.

ImprovINg hEALTh ANd wELL-BEINg for more than 1 billion people

the first

100% vegetablebecel was

launched

suitable forvegan, halal

lactose & dairy free

8 | Unilever sustainable living plan

MM furthermore, Becel launched three new flavours of oil, namely avocado, walnut and coconut, all of which are vegetable oils. They are also rich in omega 3 and a source of omega 6. It has been scientifically proven that omega 3 and 6 are good for the heart and contribute to maintaining a healthy level of cholesterol.

MM The complete Benelux range, measured in terms of volume, does not contain any trans-fats from partially hydrogenated vegetable oil.

* We are committed to achieve the lowest level of saturated fat with respect to all other products in the spread range, including our blended spreads, without compromising the product performance and the expectations of the consumer.

reDUce the sUgar cOntent anD limit the nUmber Of calOries

MM since 2010, the sugar content in all our ready-to-drink tea products in the Benelux, measured in terms of volume, has been reduced with more than 12%.

MM Lipton Ice Tea sparkling now contains 45% less sugar than the most popular soft drinks in the Netherlands and Belgium. as such, the complete Lipton Ice Tea range is low in calories since the beginning of 2017.

MM This reduction in sugar is the result of years of product development aimed at reducing the sugar content of the whole Lipton Ice Tea range in the Netherlands, whilst maintaining the beloved taste. In 2012, Lipton Ice Tea already reduced the sugar content in Lipton Green and in 2015, it also reduced the sugar content in the other still ice teas.

MM Beginning of 2017, the recipe for pure Leaf was also improved. The complete pure Leaf range now contains 3 grams of sugar per 100 ml, instead of the 4.5 grams sugar per 100 ml it contained before. This low calorie drink, made of 97% fresh black tea infusion, fits in with a healthy diet.

MM In the Benelux, 100% of our children ice creams contain 110 kilo calories or less per portion. of our prepacked ice cream, 89% contain less than 250 kilo calories per portion.

infOrm abOUt healthy fOODWe use the labels of our products to provide clear and transparent information, to help consumers make bet-ter choices that contribute to a well-balanced diet.

MM all of our products in the Benelux supply full nutritional information in accordance with the Dutch Commodities act regulation on food Information and the royal Decree with respect to the labels of prepacked foods. The labels provide nutritional information in tabular format for energy, fats (including saturated), carbohydrates (including sugars), proteins and salt. a lot of our margarine products also provide information on omega 3 and omega 6, although this is not obligatory. The amount of energy per portion is listed on the front of the packaging in percentage of the reference intake of an adult.

MM unilever has developed an educational tool for professionals in the Netherlands, which they can use during meetings with clients: the so-called ‘Vette Koffer’ (the fat suitcase). With this suitcase they can visualize the fatty acid composition of the most popular lubricating and cooking fats and the amount of vitamins. since 2014, more than 500 dieticians, nutritional advisors and other health professionals make use of a fat suitcase.

MM Knorr wants to introduce consumers, in an easy accessible way, to vegetarian food. from march 2017 onwards, every version of the World Cuisines and the recipe mixes will contain a recipe for “a day without meat”. The packaging also clearly lists which sustainable grown ingredients have been used to meet the increasing need for “fair and sustainable” food. all this steps help in reducing the footprint of both manufacturer and consumer.

9 | Unilever sustainable living plan

MM The vision of unilever food solutions in the Benelux is ‘food is fun’, seeking to produce high quality and delicious mails for elderly people. We continue to support this vision via the so-called uniKIT, a book full of seasonal recipes customized to the specific needs of the elderly.

imPrOve the health Of OUr Own emPlOyeesLamplighter is a global unilever project, that started in 2001 and which aims at improving the energy level of unilever employees. a higher energy level allows them to better enjoy their spare time and to better deal with possible high work pressure. since a number of years, employees in the Netherlands and Belgium are called for a health check. In 2016, more than 700 employees took part in the checks and received a tailored advice with respect to improving their health.

PartnersMM unilever has set up multiple initiatives to encourage the consumption of vegetable food to give everyone the opportunity to reduce their footprint. only recently, after it announced its partnership with the european Vegetarian union, unilever took another important step by joining the Green protein alliance (Gpa). Within the Gpa, parties are cooperating to accelerate the protein transition - consumption of less animal and more vegetable proteins. The specific aim is to ensure that by 2025 our daily diet contains of at least 50% vegetable proteins, against 35% at this moment.

MM since 2012, unilever, jointly with the Johan Cruyff foundation, encourages children - with and without disability - to get up and start sporting. In 2016, unilever brought attention to the Johan Cruyff foundation with a campaign at Coop supermarkets: the Doekoe campaign. Customers could collect Doekoe coins to save for sports and game materials for neighbouring schools. 260 Coop supermarkets cooperated with unilever, the Johan Cruyff foundation and schoolyard14. fourteen schoolyards were transformed into a schoolyard14 and 800 elementary schools received sports and game materials. With this Coop supermarkets campaign, which lasted six weeks, we have reached both our commercial, social and sustainability objectives.

MM In the Netherlands, unilever is one of the national partners of JoGG (young people at a Healthy Weight). The local JoGG approach, now implemented in approximately 120 municipalities, encourages young people to eat healthier and to exercise more. In 2015, the National school Breakfast, the Wageningen ur, rotterdam In shape! and unilever started a scientific research to study the breakfast habits of children in the urban district feijenoord in rotterdam. Based on the results of this research, unilever and JoGG are cooperating to encourage children of elementary school age to eat a breakfast every day and to eat a healthier breakfast.

MM In the Netherlands, unilever cooperates with Look Good…feel Better since 2013. Look Good…feel Better helps people who suffer from cancer with their personal appearance. In addition to financial support, we donate free products for use during workshops.

MM Becel proactive has been cooperating with the Dutch Heart foundation and with the Belgian Cardiologic League for more than 13 years.

MM more than two million people have skin problems resulting from a skin disorder. Vaseline, for more than 140 years the authority with respect to skin, wants to draw attention to this and therefore started cooperating with the skin foundation.

MM planta Classic (Be) has been supporting the Belgium society of paediatrics for more than seven years. every year they develop communication materials for health professionals and parents about the importance of essential fats for the growth and development of children. In 2015, these materials were part of the information about a healthy breakfast for children.

10 | Unilever sustainable living plan

by 2030, it is our goal to halve the environmental footprint of the production and use of our products while growing our business.

grEENhoUSE gASES reduce greenhouse gas emission by doing laundry and showering.

DOing laUnDryWe are continuously trying to reduce the greenhouse gas impact of the laundry process by manufacturing more concentrated laundry detergents and more com-pact washing powders. furthermore, we encourage consumers to wash at lower temperatures and with the right dose. our goal is that by 2020 70% of the machine washes is done this way.

watersaversmore than 750 schools already participate in the Dutch warm water reduction program ‘Waterspaarders’ (Wa-tersavers): less warm water is better for the future’. more than 75,000 children created a label for a bottle of shower gel or shampoo, containing a call to their parents to reduce their shower time, reaching more than 250,000 people in the shower. on the third Dutch Watersavers Day in october 2016, we launched the ‘5 Billion Deal’: if 600,000 Dutch people commit to reduce their shower time to not more than 5 minutes, we save 5 billion litres of warm water. Today, already 152,000 people have participated in this deal. Watersavers has 12 partners.

PrODUctinnOvatiOnsMM In the Benelux, the dry shampoos of andrélon and ToNI&Guy and the leave-on conditioners of andrélon and Dove encourage the consumers to use less warm water. The introduction of the so-called ‘microsheets’ in conditioners, a new way of structuring the product, has led to a reduction of chemicals while maintaining the same level of performance. This ensures a reduction of the chemical impact on the environment and a reduction of the energy consumption, and therefore reduces the greenhouse gas emission.

MM In spring 2014, we launched a ground breaking packaging technology. The new muCell® technology was first applied to all bottles of Dove shower cream in europe, which resulted in a 15% reduction of plastic. In addition to the Dove Body Wash bottle, the muCell® technology is now also used in the Dove hand soap dispenser. This also resulted in a 15% reduction of plastic. on yearly basis, this modification of the dispenser means that we reduce the use of plastic by up to 57 tons.

MM We are cooperating with our partners to manufacture more bottles with this weight/plastic saving technology in the future, without compromising on the quality our consumers require.

MM In the overall Belgian spray market, the Compressed share has increased from 15% in 2015 to 18% in 2016. However, we see that our own market share of Compressed in the Netherlands has remained stable at around 9%.By making the technology behind the Compressed deodorant freely available to the market, we envisaged that others would start using it as well, as to jointly increase the impact of the technology. We see that this is being realized, now that other brands within the industry also start marketing Compressed versions.

reDUce the greenhOUse gas emissiOn Of OUr factOries

MM In 2016, Co2 emissions of the unilever factories were reduced with almost 10% against 2015 as well as a natural gas reduction of 7% caused by the more efficient use of residual heat by our facilities.

MM We save a lot of energy by reusing the heat and steam produced on several locations , such as the heat produced during the roasting of peanuts for the Calvé peanut butter. In addition, we have run a successful test in our factory in Hellendoorn, increasing the efficiency of the bio digester by means of an installation.

REDUCING 1/2 ENVIRONMENTAL IMPACT BY

11 | Unilever sustainable living plan

transPOrt, stOrage anD DistribUtiOn

MM Within the Benelux, we are currently striving hard to get (more) fully loaded trucks on the road. This ensures less freight traffic on the road and less (empty) kilometres. We are currently discussing this with our customers and are jointly looking into what we can do to ensure (more) fully loaded trucks.

MM Beginning of 2016, unilever’s logistic organization in europe launched trucks that run on liquefied natural gas (LNG). LNG produces 11.5% less Co2 emission compared to diesel. although the use of liquefied natural gas is feasible in itself, there are currently not enough LNG filling stations along the european roads. That is why a consortium has been founded, managed by unilever and called Connect2LNG, with the aim to build five LNG filling stations in france and Germany, where the gaps in the infrastructure are the largest.

MM We are increasingly using smart solutions to reduce the energy consumption in our warehouses. for example, we are currently looking into the use of LeD lights and the possibilities to use solar panels.

reDUce energy cOnsUmPtiOn in OUr OfficesThe gas and electricity consumption in our office in Vlaardingen has been reduced by 4% because of the more efficient use of available spaces and the further optimization of the climate control system. The gas and electricity consumption in our office at the Nassaukade in rotterdam has been reduced by 8%, because we re-placed the building management system as to be able to monitor the climate control system more efficiently.

wATEr reDUce water cOnsUmPtiOn in OUr factOriesBy using water in a sustainable way, we used 4% less drinking water in 2016 compared to 2015. furthermore, we installed a new cooling system in our factory in Hellendoorn, reducing the amount of water needed for the cooling of the produced pints of ice cream.

wASTE reDUce factOry waste

MM The total waste stream of factories is reduced by 5% because of more recycling and the prevention of waste by for example the reuse of packages.

MM a lot of attention has also been devoted to better waste separation. This does not reduce the total waste stream, but does increase the amount of recycled residues.

reDUce Packaging materialWith a sustainable growth ambition, we also contribute in a tangible way to the transition of a circular economy, amongst others by reducing the amount of packaging materials, encouraging reuse and by recycling materials, maintaining more value in the chain.

MM When designing the packaging, we take the different (environmental) aspects, safety, hygiene, weight, renewability and the integral logistics process into consideration. New packages are being designed within a special eco design tool, assessing the environmental impact during the innovation process. The tool provides developers insight into the carbon footprint and enables them to constantly adjust and optimize the design during the design phase.

MM We make new technologies, jointly developed with packaging suppliers, freely available for sharing and reuse to stimulate adoption by more companies. examples are the mucell Technology (air bubbles in the plastic), using 15% less plastic, and the technology behind Compressed deodorant, realizing a 50% reduction of propellant and 25% reduction of aluminium.

MM Jointly with suppliers, knowledge institutes and other organisations in the chain, unilever sets out to encourage companies in the sector to accelerate the transition to a circular economy. By closing the plastics value chain towards a circular economy for plastics, we contribute amongst others to industry-wide sector sustainability plans for packaging, and we cooperate with the authorities to develop adequate and efficient infrastructure and to reduce food wastage.

MM unilever has announced that by 2025 all packaging is fully reusable, recyclable or compostable. this resulted in a

15% reduction of plastic

the mucell ®technology is now also used in the Dove hand soap dispenser

12 | Unilever sustainable living plan

SUSTAINABLE AgrIcULTUrE sUstainable Palm OilThe Belgian allegiance for sustainable palm oil was founded by several players in the palm oil chain, includ-ing unilever Belgium. since 2015, members produced their food products for the Belgian market that contain palm oil with rspo- (roundtable on sustainable palm oil) certified palm oil. The allegiance considers this to be the first step in the transformation towards a market of sustainable, traceable palm oil, which does not contrib-ute to deforesting, in Belgium in 2020.

sUstainable vegetables anD frUit

bertOlliThe Bertolli pasta sauces in bag (NL) contain sus-tainably grown tomatoes and are therefore branded with a special logo. The same goes voor the jars of 400 and 690 g. This enabled us to successfully participate in the campaign “Go ahead and Go sus-tainable’ in cooperation with albert Heijn and the Dutch postcode Lottery, to make consumer aware of the fact that sustainable food is easy to make and very tasty.

knOrrfrom the beginning of march 2017 onwards, every version of the World Cuisines and the recipe mixes, will contain a recipe for “a day without meat”. all packaging also clearly lists which sustainable grown ingredients have been used to meet the increasing need for “fair and sustainable” food. from now on, this will be clearly indicated on the packaging. moreover, consumers can find everything about the ‘sustainability partnership’ of Knorr via the Qr code on the back. all these steps help in reducing the footprint of both manufacturer and consumer.

ben & Jerry’sIn 2016, Ben & Jerry’s Nederland launched the campaign ‘We are allflavours in one world’, speak-ing out against fear and prejudices and for a country with all flavours of people. They organized an all-flavours tour through the Netherlands, a musical evening focussed on inclusivity and launched the ice cream ‘one sweet World’, of which the proceeds will go to the every1 foundation, a foundation that wants to celebrate diversity and foster solidarity in the Netherlands.

imPrOve animal welfaresince 2014, unox enables consumers to exactly see, via a special website, which farmer has produced the meat of their smoked sausage. They can enter the production code of the different versions of the smoked sausage on the website unox.nl/onze-boeren. They will then be able to read the personal story of the farmers and their wives, about how they contribute to the prod-uct with due care. This was an important step for unox in making the chain of the production of smoked sau-sages more transparent. In 2016, the number of trace-able smoked sausages was further increased with two Gelderlander smoked sausages (285 & 375 g) and two Lean versions of the authentic smoked fresh smoked sausage (275 & 375 g).

13 | Unilever sustainable living plan

worldwide we will enhance the livelihood of millions of people by 2020. although this goal is more appli-cable to developing countries and upcoming markets, we also take responsibility in the benelux.

INcrEASE EmpLoyABILITyIn 2016, unilever offered 60 jobseekers who are dis-tanced to the labour market, a new opportunity on the labour market. This was possible by means of three initiatives: store supporter, City project amsterdam and City project The Hague.

a new start On the labOUr marketIn september 2015, randstad participation, Hamilton Bright and unilever Nederland started a pilot coop-eration, offering people with a distance to the labour market a field service job within unilever. During eight months, twelve people, the so-called store supporters, started in a commercial job on the shop floor. after a successful pilot, the group was increased to 30 people in april 2016.

create OPPOrtUnities fOr JObseekersThe municipality of amsterdam and unilever Neder-land have been cooperating since april 2015 in the amsterdam City project, to reduce youth unemploy-ment and to stimulate entrepreneurship amongst unemployed young people. The project enables young unemployed to start working in a commercial position for six months. In addition to that, they receive training and get access to a network of companies, all of which will increase their chances of a job after the project is finished. In 2016, unilever Nederland also cooper-

ated with the municipality of The Hague to increase the chances to work for jobseekers with a distance to the labour market. a total number of 30 young people found a job in amsterdam or The Hague.

pArTNErSIn accordance with the partnership with the european federation of food Banks, unilever yearly donates € 100,000. With this money, we support new food banks in eastern and southern europe and enhance the ac-tivities of existing food banks in this region. To further extend this support, unilever entered into a partnership with the Global foodBanking Network end 2015. This enables us to cooperate even more closely on both a global and local level in the fight against food waste and hunger.

What have unilever Benelux and the food banks meant for each other in 2016?

MM To celebrate the fact that unilever Benelux and the Dutch food Bank foundation had already been partners for three years, unilever Benelux organized the yearly Dutch Christmas hampers campaign, during which our employees composed and packed 8,500 Christmas hampers for families in the province of south Holland.

MM unilever has also been donating products, which we cannot sell in the regular super markets for whatever reason, to the Dutch food Bank for many years. In Belgium, unilever is closely cooperating with the Belgian federation of food Banks. Last year, we donated more than 1.7 million products in the Benelux.

MM We also provided facilities and man-hours to support the food banks in the Benelux with our knowledge, where appropriate.

schOOl meals in inDOnesiaHeart for Kids is an independent foundation, founded by young managers from unilever. The foundation col-lects money both within and outside unilever for the school meal program of the World food programme in Indonesia. This program has a dual positive impact. It provides school-going children with at least one nu-tritious meal per day, ensuring that they are not going hungry and can thus concentrate better during classes. With appropriate education, they are able to build their own hunger-free future. These projects are particularly beneficial to girls, who would otherwise never get the chance to go to school. an amount of 20 cents equals one school meal. In 2016, the foundation donated 60,000 school meals.

emPlOyee engagementWithout the engagement and dedication of our employ-ees, we will not be able to realize the ambitious goals of the unilever sustainability plan and the changes necessary to achieve those goals. That is why it is essential that all our employees fully integrate sus-tainability in their way of working and their mindset. To encourage this, we developed a platform in 2013, aimed at enhancing the employee engagement and empow-erment by means of e-learning, gamification and the power of social media. for the fourth successive year, this platform has helped us in taking a big step towards embedding sustainability in the DNa of our people.

ENHANCING LIVELIHOODS FOR

MILLIONS

14 | Unilever sustainable living plan

the Unilever sustainable living Plan sets out to decouple our growth from our environmental footprint, while increasing our positive social impact.

our plan has three big goals to achieve, underpinned by nine commitments and targets spanning our social, environmental and economic performance across the value chain. We will continue to work with others to focus on those areas where we can drive the biggest change.more detail on our progress can be found in our online sustainable Living report 2016 at www.unilever.com/sustainable-living.

reduce salt levels

saturated fat: reduce saturated fat Increase essential fatty acids reduce saturated fat in more

products

remove trans fat

reduce sugar

reduce calories: In children’s ice cream In more ice cream products

provide healthy eating information

reduce water use in manufacturing process: New factories

reduce water use in the laundry process: products that use less water

reduce water use in agriculture

NUTrITIoN We will continually work to improve the taste and nutritional quality of all our products. The majority of our products meet, or are better than, benchmarks based on national nutritional recommendations. Our commitment goes further: by 2020, we will double the proportion of our portfolio that meets the highest nutritional standards, based on globally recognised dietary guidelines. This will help hundreds of millions of people to achieve a healthier diet.

35%of our portfolio by volume met highest nutritional standards in 2016

hEALTh ANd hygIENE By 2020 we will help more than a billion people to improve their health and hygiene. This will help reduce the incidence of life-threatening diseases like diarrhoea.

538 mILLIoN†

people reached by  end 2016

reduce diarrhoeal and respiratory disease through handwashing

provide safe drinking water†

Improve access to sanitation

Improve oral health

Improve self-esteem

greenhouse gases Our products’ lifecycle: Halve the greenhouse gas (GHG) impact of our products across the lifecycle by 2030.

+8%our greenhouse gas impact per consumer use has increased by around 8% since 2010*

Our manufacturing: By 2020 CO2 emissions from energy from our factories will be at or below 2008 levels despite significantly higher volumes.

-43%†

reduction in cO2 from energy per tonne of production since 2008

Become carbon positive in manufacturing: source all energy renewably source grid electricity renewably eliminate coal from energy mix make surplus energy available to

communities New factories

reduce gHg from washing clothes: reformulation

reduce gHg from transport

reduce gHg from refrigeration

reduce energy consumption in our offices

reduce employee travel

water Our products in use: Halve the water associated with the consumer use of our products by 2020.+

-7%our water impact per consumer use has reduced by around 7% since 2010*

Our manufacturing: By 2020 water abstraction by our global factory network will be at or below 2008 levels despite significantly higher volumes.

-37%†

reduction in water  abstraction per tonne of production since 2008

by 2020 we will help more than a billion people take action to improve their health and well-being.

We have helped 538 million people take action to improve their health and well-being.

ImprovINg hEALTh ANd wELL-BEINg for more than

1 billionpeople

rEdUcINg ENvIroNmENTAL ImpAcT by

1/2

by 2030 our goal is to halve the environmental footprint of the making and use of our products as we grow our business.*

UNILEvEr SUSTAINABLE LIvINg pLAN: progrESS IN 2016

• • • • • • • • • •

• • • • • • • • •

reduce waste from manufacturing: Zero non-hazardous waste to

landfill New factories

reusable, recyclable or compostable plastic packaging

reduce packaging

recycle packaging: Increase recycling and

recovery rates Increase recycled content

Tackle sachet waste

eliminate pVC

reduce office waste: recycle, reuse, recover reduce paper consumption eliminate paper in processes

our greenhouse gas impact has increased and our water and waste impacts per consumer use have reduced since 2010.

waste Our products: Halve the waste associated with the disposal of our products by 2020.

-28%†

our waste impact per consumer use has reduced by around 28% since 2010*

Our manufacturing: By 2020 total waste sent for disposal will be at or below 2008 levels despite significantly higher volumes.

-96%†

reduction in total waste  per tonne of production since 2008

Sustainable sourcing By 2020 we will source 100% of our agricultural raw materials sustainably.

51%of agricultural raw materials sustainably sourced by end 2016

sustainable palm oil

paper and board

soy beans and soy oil

Tea

fruit †

Vegetables †

Cocoa

sugar †

sunflower oil

rapeseed oil

Dairy

fairtrade Ben & Jerry’s

Cage-free eggs

Increase sustainable sourcing of office materials

fairness in the workplace By 2020 we will advance human rights across our operations and extended supply chain.

67%of procurement spend through suppliers meeting our responsible sourcing Policy’s mandatory requirements

we continued to embed human rights, focusing on 8 salient issues in our human rights report

Our total recordable frequency rate for safety improved to 1.01†

per million hours worked

Implement uN guiding principles on Business and Human rights

source 100% of procurement spend in line with our responsible sourcing policy

Create framework for fair compensation

Improve employee health, nutrition and well-being

reduce workplace injuries and accidents †

opportunities for women By 2020 we will empower 5 million women.

920,000women enabled to access initiatives aiming to promote their safety, develop their skills or expand their opportunitiesM

Build a gender-balanced organisation with a focus on management

promote safety for women in communities where we operate

enhance access to training and skills

expand opportunities in our value chain

Inclusive business By 2020 we will have a positive impact on the lives of 5.5 million people.

650,000 smallholder farmers and

1.5 mILLIoNsmall-scale retailers

enabled to access  initiatives aiming to improve  agricultural practices or increase incomesM

Improve livelihoods of smallholder farmers

Improve incomes of small-scale retailers

Increase participation of young entrepreneurs in our value chain

enhancing livelihoods for

millionsby 2020 we will enhance the livelihoods of millions of people as we grow our business.

We have made steady progress across our enhancing Livelihoods commitments.

Key

achieved by target date

on-plan for target date

off-plan for target date

% % achieved by target date

* our environmental targets are expressed on a ‘per consumer use’ basis. This means a single use, portion or serving of a product.+ In seven water-scarce countries representing around half the world’s population.

• In 2016 around 300,000 women accessed initiatives under both opportunities for Women and Inclusive Business.† pricewaterhouseCoopers (pwC ) assured. for details and the basis of preparation, see www.unilever.com

• • •

• • • • • • • • • ® • • • @ • • • • • • • • • • @) • @) • •

® • • • • • • • • • 0 @