unilever plc - climate change 2019 · unilever’s purpose is to make sustainable living...

Unilever plc - Climate Change 2019

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

BACKGROUND

Unilever makes & sells around 400 products in more than 190 countries which are used by some 2.5bn consumers worldwide everyday. Brands include Lipton, Knorr, Dove, Rexona, Hellmann’s & Omo. The strength of our global brands is reflected in Kantar’s BrandFootprint report published in May 2018.

Our business is organised across 3 geographies: the Americas; Europe; & emerging markets. Total turnover in 2018 was €50.9bn,with 58% of sales in emerging markets. From the beginning of 2018, Unilever began operating across three new Divisions created aspart of our efforts to accelerate shareholder value creation. These divisions are Beauty & Personal Care, Foods & Refreshment &Home Care.

OUR VISION

Unilever’s purpose is to make sustainable living commonplace which we believe is the best way to deliver long-term sustainablegrowth. We put sustainable living at the heart of everything we do, including our brands & products, our standards of behaviour & ourpartnerships which drive transformational change across our value chain.

We have 2 main reporting channels: The Annual Report & Accounts (ARA), & the online Sustainable Living Report (SLR).

DISCLOSURE

For a number of years we have included environmental & social performance alongside financial performance in our ARA. The SLR isour means of reporting performance against the targets we set out in the Unilever Sustainable Living Plan (USLP).

The USLP, launched in November 2010, sets out how we will achieve Our Vision. It covers our entire portfolio of brands & countries& has 3 time-bound Big Goals:

To help more than a billion people take action to improve their health & well-being by 2020To Halve the environmental footprint of the making & use of our products as we grow our business* (*Our environmental targets

are expressed on a 'per consumer use' basis) by 2030To enhance the livelihoods of millions of people as we grow our business by 2020.

Underpinning these goals are 9 commitments & a series of time-bound targets spanning our social, economic & environmentalperformance across the value chain. Unilever's environmental focus is on GHG, water, waste & sustainable agricultural raw materialsourcing (as many of the raw materials we use for our products come from agriculture & forestry).

By combining our actions with advocacy on public policy & working with partners, we are seeking to create fundamental change towhole systems & not just incremental improvements. These areas are 1) Taking action on climate change & forests 2) Championingsustainable agriculture, focused land use & livelihoods 3) Improving health & wellbeing & 4) Improving livelihoods & empoweringwomen. We also provide a progress summary annually on our website for stakeholders to view. Further to that, we also communicateexternally progress every year via local country websites.

ASSURANCE

PricewaterhouseCoopers LLP (PwC) scope for their assurance work on selected USLP & Environmental & Occupational Safetyperformance indicators can be found in the PwC Basis of Preparation 2018 document in the Independent Assurance & metricssection on our website, alongside their findings in the PwC Limited Assurance Statement for 2018 document.

2018 HIGHLIGHTSOur sustainable living brands grew 69% faster than the rest of the business & delivered 75% of total growth, showing support for

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our progress in sustainable growthJust under €1 bn invested in research & developmentUnilever was named leader of the Personal Products category in the 2018 Dow Jones Sustainability Index (DJSI) assessment.

DISCLAIMER

This CDP submission may contain forward-looking statements, including ‘forward-looking statements’ within the meaning of theUnited States Private Securities Litigation Reform Act of 1995. Words such as ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’,‘believes’, ‘vision’, or the negative of these terms and other similar expressions of future performance or results, and their negatives,are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations andassumptions regarding anticipated developments and other factors affecting the Unilever Group (the ‘Group’). They are not historicalfacts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, thereare important factors that could cause actual results to differ materially from those expressed or implied by these forward-lookingstatements. These forward-looking statements speak only as of the date of this document. Except as required by any applicable lawor regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group’s expectations with regard thereto or any change in events,conditions or circumstances on which any such statement is based.

C0.2

(C0.2) State the start and end date of the year for which you are reporting data.

Start date End date Indicate if you are providing emissions data for pastreporting years

Select the number of past reporting years you will be providingemissions data for

Row1

October 12017

September 302018

No <Not Applicable>

C0.3

(C0.3) Select the countries/regions for which you will be supplying data.AlgeriaArgentinaAustraliaAustriaBangladeshBelgiumBolivia (Plurinational State of)BrazilCanadaChileChinaColombiaCosta RicaCote d’IvoireCyprusCzechiaDenmarkDominican RepublicEcuadorEgyptEl SalvadorEthiopiaFinlandFranceGermany

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GhanaGreeceGuatemalaHondurasHungaryIndiaIndonesiaIran (Islamic Republic of)IrelandIsraelItalyJapanKenyaLithuaniaMalaysiaMexicoMoroccoMyanmarNepalNetherlandsNicaraguaNigerNigeriaPakistanPanamaParaguayPeruPhilippinesPolandPortugalRomaniaRussian FederationSaudi ArabiaSingaporeSlovakiaSouth AfricaSpainSri LankaSwedenSwitzerlandTaiwan, Greater ChinaThailandTrinidad and TobagoTunisiaTurkeyUkraineUnited Arab EmiratesUnited Kingdom of Great Britain and Northern IrelandUnited Republic of TanzaniaUnited States of AmericaUruguayVenezuela (Bolivarian Republic of)Viet NamZimbabwe

C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.EUR

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C0.5

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are beingreported. Note that this option should align with your consolidation approach to your Scope 1 and Scope 2 greenhouse gasinventory.Operational control

C-AC0.6/C-FB0.6/C-PF0.6

(C-AC0.6/C-FB0.6/C-PF0.6) Are emissions from agricultural/forestry, processing/manufacturing, distribution activities oremissions from the consumption of your products – whether in your direct operations or in other parts of your value chain –relevant to your current CDP climate change disclosure?

Relevance

Agriculture/Forestry Both own land and elsewhere in the value chain [Agriculture/Forestry only]

Processing/Manufacturing Both direct operations and elsewhere in the value chain [Processing/manufacturing/Distribution only]

Distribution Both direct operations and elsewhere in the value chain [Processing/manufacturing/Distribution only]

Consumption Yes [Consumption only]

C-AC0.7/C-FB0.7/C-PF0.7

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(C-AC0.7/C-FB0.7/C-PF0.7) Which agricultural commodity(ies) that your organization produces and/or sources are the mostsignificant to your business by revenue? Select up to five.

Agricultural commodityTimber

% of revenue dependent on this agricultural commodityMore than 80%

Produced or sourcedSourced

Please explainThe % of revenue dependent on each commodity is a crude estimate based on annual turnover for our Beauty & Personal care,Foods & Refreshments and Home Care categories. Please note, we are reporting our Foods & Refreshments categories as onefrom 2018 onwards. This is not based on actual product specific data and does not take into account level of inclusion or whetheror not is substitutable/one of a number of sources. Each commodity is assessed based on revenue per category and a roughcalculation (%) of brands within that category that use paper and board. Paper and board is widely used across all categories insome form ie box packaging, so we have selected >90% of revenue.

Agricultural commodityPalm Oil

% of revenue dependent on this agricultural commodity40-60%


Please explainThe % of revenue dependent on each commodity is a crude estimate based on annual turnover for our Beauty & Personal care,Foods & Refreshments and Home Care categories. Please note, we are reporting our Foods & Refreshments categories as onefrom 2018 onwards. This is not based on actual product specific data and does not take into account level of inclusion or whetheror not is substitutable/one of a number of sources. Each commodity is assessed based on revenue per category and a roughcalculation (%) of brands within that category that use palm oil. Palm oil is used in Personal care, Home care and Foods, and asmall amount in Refreshments. Based on this estimation, palm oil accounts for resulting in about 51-60% of revenue.

Agricultural commoditySoy

% of revenue dependent on this agricultural commodity10-20%


Please explainThe % of revenue dependent on each commodity is a crude estimate based on annual turnover for our Beauty & Personal care,Foods & Refreshments and Home Care categories. This is not based on actual product specific data and does not take intoaccount level of inclusion or whether or not is substitutable/one of a number of sources. Each commodity is assessed based onrevenue per category and a rough calculation (%) of brands within that category that use it. Soy is only used in a few products inour foods business, so % of the total revenue is estimated at below 20%.

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization?Yes

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C1.1a

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Position ofindividual(s)

Please explain

ChiefExecutiveOfficer(CEO)

It's our Board’s & CEO’s responsibility to review, monitor & guide strategy. The Board’s Corporate Responsibility Committee (CRC) tracks progress& potential risks linked with the Unilever Sustainable Living Plan (USLP) including 16 climate-related targets. The CRC feed into the Boards regularlyso they can fulfil their oversight responsibilities. The Boards take accountability for the management & guidance of climate-related risks &opportunities with support from CRC, Unilever Leadership Executive, & the USLP Steering Team. The operational running of Unilever is delegated tothe CEO, with exception of key matters ie governance, structural & constitutional matters. Through our CEO, we leverage relationships to raise theprofile of climate change & risks through events & publications. In 2018, our CEO was Chairman of the ICC, Chair of the B Team & Vice-Chair of theUNGC where he has championed the role of business in addressing the SDGs, including climate action (SDG13).

C1.1b

(C1.1b) Provide further details on the board’s oversight of climate-related issues.

Frequency with which climate-related issues are a scheduledagenda item

Governancemechanismsinto whichclimate-related issuesare integrated

Please explain

Scheduled – some meetingsOur sustainability governance -https://www.unilever.com/sustainable-living/our-strategy/our-sustainability-governance/

Reviewing andguidingstrategyReviewing andguiding majorplans of actionReviewing andguiding riskmanagementpoliciesReviewing andguidingbusiness plansMonitoringimplementationandperformance ofobjectivesMonitoring andoverseeingprogressagainst goalsand targets foraddressingclimate-relatedissues

Unilever has a dual headed structure. The Boards of Unilever NV and PLC have ultimate responsibility forreviewing, monitoring and guiding the strategy for the Unilever Group, as well as its conduct. The Boardsare one-tier boards meaning the same people are on both Boards and comprise of the same ExecutiveDirectors (CEO and CFO only) and Non-Executive Directors. The Board’s delegated CorporateResponsibility Committee (CRC) tracks the progress and potential risks associated with the UnileverSustainable Living Plan (USLP) and feed into the Board for key decisions on major plans of action to bemade. Within the USLP, there are 16 climate-related targets under the Reducing environmental impact biggoal. The CRC report their findings to the Boards regularly so that they can fulfil their oversightresponsibilities. The Boards take overall accountability for the management and guidance of risks &opportunities, including those associated with climate change, supply chain & sustainability with supportfrom the Unilever Leadership Executive (ULE), the CRC & the USLP Steering Team. The monitoring ofperformance and progress against the climate-related targets is fed into the Boards by the CRC. Forinstance, in 2018 the CRC was briefed on plans for driving transformational change in the palm oil sectorwhich is a critical element in Unilever’s business and climate strategy due to the risk it poses. For thesecond year running, Unilever applied the recommendations of the TCFD in its annual reporting. As part ofthe Board sign-off process, the Board and the Audit Committee are required to approve the Annual Report& Accounts, which includes our TCFD statement. In 2018, this statement included our analysis of the directrisks from climate change to the price of soybean oil, such as change in yield and change in supply. TheCRC’s responsibilities are complemented by those of the Audit Committee, which is responsible forreviewing the assurance of the USLP and signing off our Annual Report & Accounts. The Audit Committeeis another Board delegated committee to ensure its ability to fulfil its oversight responsibilities. During 2018the Committee continued its oversight of the independent assurance work that is performed onEnvironment & Occupational Safety (EOS) and selected USLP metrics i.e. GHG emissions (location-basedand market-based) and emissions from Chemical Oxygen Demand (COD).

C1.2

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(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.

Name of the position(s) and/or committee(s) Responsibility Frequency of reporting to theboard on climate-relatedissues

Other committee, please specify (Unilever Sustainable Living Plan Steering Team (USLP ST),consisting of the CFO and 9 other C-Suite executives from the Unilever Leadership Executive)

Both assessing and managingclimate-related risks andopportunities

Quarterly

Other C-Suite Officer, please specify (Chief Marketing & Communication Officer, who chairsthe USLP Steering Team and is a member of the Board's Corporate ResponsibilityCommittee)

Both assessing and managingclimate-related risks andopportunities

Quarterly

C1.2a

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(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associatedresponsibilities are, and how climate-related issues are monitored (do not include the names of individuals).

USLP Steering Team

Where does this position lie: The Unilever Sustainable Living Plan (USLP) Steering Team is a steering group of the UnileverLeadership Executive (ULE), which sits below the Boards. It includes most members of the C-Suite Unilever Leadership Executive,including the Chief Officers for Finance, Supply Chain, R&D, Legal, HR as well as our 3 Divisional Presidents & further seniorrepresentatives from the business.

Rationale of why responsibilities have been assigned to this committee: The Boards have delegated to the ULE responsibilityfor the operational leadership of the business including strategy, performance & policy. This includes responsibility for the UnileverSustainable Living Plan and the targets contained within in, including 16 climate change related targets.

Specific responsibilities: The USLP Steering Team meets 4 times (i.e. quarterly) year and is accountable for ensuring oursustainability goals are achieved, including 16 climate change related targets which are reviewed regularly, alongside an annualreview of the climate strategy. Chaired by our Chief Marketing and Communications Officer (CMCO – see below), it drives theimplementation of the goals from the top down into the business and agrees corrective actions when targets are off track. They arealso heavily involved in strategy development, ensuring Unilever’s climate agenda is leading and in line with the Paris Agreement tolimit global warming to 1.5 degrees. Our Chief Financial Officer (who also leads our engagement with TCFD) is a member of theUSLP Steering Team & the Board & attends the Audit Committee; our CMCO chairs the USLP Steering Team and attends theCorporate Responsibility Committee to ensure alignment with the Board’s oversight of sustainability and climate change risks andopportunities. The USLP Steering Team briefs and supports the Unilever Leadership Executive, and our Corporate Responsibility andAudit Committees on the risks & opportunities arising from the USLP. At each Board meeting the Committees report back on thefindings from the Committees, enabling the Boards to stay abreast of current & emerging trends & potential risks arising fromsustainability issues.

Chief Marketing & Communications Officer

Where does this position lie: The Chief Marketing & Communications Officer (CMCO) is a member of the Unilever LeadershipExecutive who make up the C-suite management team of Unilever, which sits below the Boards.

Rationale of why responsibilities have been assigned to this position: The Boards have delegated to the Unilever LeadershipExecutive responsibility for the operational leadership of the business including strategy, performance & policy. Our CMCO is theUnilever Leadership Executive’s nominated lead on sustainability and corporate responsibility.

Specific responsibilities: Our Chief Marketing & Communications Officer (CMCO) chairs the USLP Steering Team, drivingsustainable growth through Unilever’s brands & operations. Our CMCO is responsible for the Unilever Sustainable Living Plan and thetargets contained within in, including 16 climate change related targets. He has both the Chief Sustainability Officer and ExecutiveVice President Sustainable Business & Communications reporting into him. Our USLP Steering Team supports the UnileverLeadership Executive and is accountable for ensuring our sustainability goals are achieved, including 16 climate change relatedtargets. Chaired by our CMCO, it meets 4 times a year (i.e. quarterly). Our CMCO is responsible for setting the agenda and aligningstakeholders to ensure the USLP Steering Team is able to make key strategic decisions. Our CMCO also chairs our USLP AdvisoryCouncil of external sustainability advisers & attends every quarterly meeting of the Board Corporate Responsibility Committee toensure alignment with the Board’s oversight of sustainability and climate change risks and opportunities. He shares any outcomesfrom these meetings with the USLP Steering Team. At each Board meeting the Corporate Responsibility Committee reports back onits findings, enabling the Boards to stay abreast of current & emerging trends and potential risks arising from sustainability issues.

C1.3

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(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?Yes

C1.3a

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(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include thenames of individuals).

Who is entitled to benefit from these incentives?Chief Executive Officer (CEO)

Types of incentivesMonetary reward

Activity incentivizedEmissions reduction target

CommentOne element of our Remuneration Policy is a share matching scheme based on company performance called the Management Co-Investment Plan (MCIP). 25% of the total MCIP award is assessed on sustainability considerations through the SustainabilityProgress Index (SPI), a joint assessment made by the Corporate Responsibility & Compensation Committees. Taking into accountUnilever’s wider progress on sustainability together with our publicly reported USLP targets (such as our commitment to reduce theGHG impact of our products across the lifecycle), the Committees determine a rating from 0% to 200% each year. For MCIP,annual ratings are then tallied as an average index for each four-year MCIP performance period, enabling the CompensationCommittee to determine the level of matched shares. The CEO leads the Unilever Leadership Executive who all play a significantrole in driving progress towards our USLP targets, including our climate ambitions. Employees from Work Level 2 (the first rung ofmanagement) to ULE level are eligible to join MCIP. From 2018, Executive Directors (CEO & CFO) are required to invest at least33% of their annual bonus in MCIP.

Who is entitled to benefit from these incentives?Other C-Suite Officer


Activity incentivizedEmissions reduction target

CommentThis applies to all Unilever Leadership Executive (ULE): • Chief Financial Officer • Chief R&D Officer • Chief Supply Chain Officer •President, Beauty & Personal Care • President, Home Care • Chief HR Officer • President, Foods and Refreshment • President,Europe • President North America and Global Head of Customer Development • Chief Legal Officer & Group Secretary • ChiefMarketing & Communications Officer One element of our Remuneration Policy is a share matching scheme based on companyperformance called the Management Co-Investment Plan (MCIP). ULE must continuously invest their annual bonus in Unilevershares through MCIP to maintain current levels of pay. This further strengthens long term executive commitment and continues todrive our executives to apply an owner’s mindset in everything they do. 25% of the total MCIP award is assessed on sustainabilityconsiderations through the Sustainability Progress Index (SPI), a joint assessment made by the Corporate Responsibility &Compensation Committees. Taking into account Unilever’s wider progress on sustainability together with our publicly reportedUSLP targets (such as our commitment to reduce the GHG impact of our products across the lifecycle), the Committees determinea rating from 0% to 200% each year. For MCIP, annual ratings are then tallied as an average index for each four-year MCIPperformance period, enabling the Compensation Committee to determine the level of matched shares. The CEO leads the UnileverLeadership Executive who all play a significant role in driving progress towards our USLP targets, including our climate ambitions.Employees from Work Level 2 (the first rung of management) to ULE level are eligible to join MCIP. From 2018, ExecutiveDirectors (CEO & CFO) are required to invest at least 33% of their annual bonus in MCIP.

Who is entitled to benefit from these incentives?Other C-Suite Officer


Activity incentivizedOther, please specify (Quality of performance)

CommentChief Supply Chain Officer Annual bonus includes an assessment of the quality of performance in terms of business results andleadership including the delivery of USLP goals, in particular our target of sourcing all of our agricultural raw materials sustainablyby 2020.

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C2. Risks and opportunities

C2.1

(C2.1) Describe what your organization considers to be short-, medium- and long-term horizons.

From(years)

To(years)

Comment

Short-term

0 2 Our annual report outlines the time horizon for our risks in line with the entries in the table here. In order to report on the long-termviability of our company, the Directors annually review the overall funding capacity and headroom available to withstand severe eventsand carry out a robust assessment of the principal risks, including those that would threaten its business model, future performance,solvency or liquidity. The horizons are aligned with other business practice time horizons – including those which underpin our principalrisk reporting. We also use a three-year viability period based on our forward-looking planning which is set out in our three-year strategicplans and annual forecasts.

Medium-term


Long-term


C2.2

(C2.2) Select the option that best describes how your organization's processes for identifying, assessing, and managingclimate-related issues are integrated into your overall risk management.Integrated into multi-disciplinary company-wide risk identification, assessment, and management processes

C2.2a

(C2.2a) Select the options that best describe your organization's frequency and time horizon for identifying and assessingclimate-related risks.

Frequencyofmonitoring

How far intothe futureare risksconsidered?

Comment

Row1

Six-monthlyor morefrequently

>6 years Risk management is integrated into every stage of this business cycle, with procedures formalized & documented. They cover awide range of subject areas such as sustainability risks, climate change, economic & political instability and ethical behaviour. Foreach of our principal risks we have a risk management framework detailing the controls we have in place and who is responsiblefor managing both the overall risk & the individual controls mitigating it. We monitor risks throughout the year to identify changesin the risk profile. In addition to our review of principal risks, comprehensive climate change risk assessments are integratedacross all functions and Divisions in our business, and reviewed by the USLP Steering Team, which meets five times a year.During 2018, there were several agenda items on topics related to climate change including climate our overall climate strategyand our renewable electricity target.

C2.2b

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(C2.2b) Provide further details on your organization’s process(es) for identifying and assessing climate-related risks.

Climate change is one of Unilever’s principal risks which could impact the Group’s business model, future performance, solvency orliquidity over the long-term. This is across the value chain, including direct operations and supply chain.

Process to assess the financial impact of risks

We use our 15 principal risks (see pages 29-33 of our Annual Report & Accounts 2018) to identify scenarios which could forceUnilever to cease being viable over a 3-year period. In addition to general monitoring of the risks throughout the year, each year, weassess the cash flow impact a particular risk/mix of risks could have to the business based on the amount of cash held, our operatingcash flows and the credit facilities available and their ability to affect the business operating and meeting its liabilities. Our timehorizons are aligned with our forward-looking planning, set out in our three-year strategic plans and annual forecasts and our Boardsassume overall accountability for the management of risk and reviewing the effectiveness of Unilever’s risk management and internalcontrol systems.

Definition of substantive financial impact

In assessing viability, ‘severe but plausible’ scenarios based on our principal risks are considered and the definition we work with is1% of our Group Turnover which equalled €509m of turnover in 2018. We identify substantive financial impact in 2 ways:

assessing scenarios for each individual principal risk, for example the termination of our relationships with the three largest globalcustomers; the loss of all material litigation cases; a major IT data breach and the lost cost and growth opportunities from notkeeping up with technological changes; and

assessing scenarios that involve more than one principal risk, for example a major global incident affecting one or more ofUnilever’s key locations resulting in an outage for a year in a key sourcing unit and significant water shortages in our key developingmarkets All the principal risks could impact our business within the next two years (ie short-term risks), or could impact our businessover the next three to five years (ie medium-term risks). Since risks arising from climate change risks are greatest over the 6 yeartime horizon, we wanted to understand the impact of global warming scenarios on our business up to 2030.

Principal risk scenarios related to climate change

For the 2017-2018 reporting period, we performed an assessment of the impact of 2°C and 4°C global warming scenarios on ourbusiness to inform the principal-risk scenarios related to climate change. The 2°C and 4°C scenarios were constructed on the basisthat average global temperatures will have increased by 2°C and 4°C in the year 2100. We looked at the impact on our business in2030 assuming we have the same business activities as we do today. We also made the following simplifying assumptions:

In the 2°C scenario, we assumed that in the period to 2030 society acts rapidly to limit greenhouse gas emissions and puts inplace measures to restrain deforestation and discourage emissions (for example implementing carbon pricing at $75-$100 per tonne,taken from the International Energy Agency’s 450 scenario). We have assumed that there will be no significant impact to ourbusiness from the physical ramifications of climate change by 2030 – i.e. from greater scarcity of water or increased impact of severe weather events. The scenario assesses the impact on our business from regulatory changes.

In the 4°C scenario, we assumed climate policy is less ambitious and emissions remain high so the physical manifestations ofclimate change are increasingly apparent by 2030. Given this we have not included impacts from regulatory restrictions but focus onthose resulting from the physical impacts.

We identified the material impacts on Unilever’s business arising from each of these scenarios based on existing internal and externaldata. The impacts were assessed without considering any actions that Unilever might take to mitigate or adapt to the adverse impactsor to introduce new products which might offer new sources of revenue as consumers adjust to the new circumstances. During 2018we developed and piloted an approach to assess the impact of climate change on our key commodities. We selected soy for this pilotbased on its importance to Unilever (large purchased volume), it being a high-profile crop in the countries where it is grown and theavailability of good historical price data and suitable climate models. We developed a methodology which combined forecasting futureyields and quantifying the impact on commodity prices of soybean oil. Climate change was the only price factor accounted for in themodel used to calculate the impact. Other factors which impact price, such as technology and acreage, were excluded. The modelconsidered the direct risks from climate change to the price of soybean oil, such as change in yield and change in supply.

C2.2c

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(C2.2c) Which of the following risk types are considered in your organization's climate-related risk assessments?

Relevance&inclusion

Please explain

Currentregulation

Relevant,alwaysincluded

Risk relevance: Current laws and regulations related to climate risk is included in our risk assessments as failure to mitigate the risk maymaterially impact our cash flow, operating results, financial position, business & reputation. For example, governments may take action toreduce climate change through the introduction of carbon taxes or zero net deforestation actions. Regulation forms part of our Legal &Regulatory Principal Risk as Unilever is subject to national & regional regulations in such diverse areas as product safety, theenvironment, taxes etc. In 2018, 3% of our taxes paid were sustainability taxes ie environmental, packaging, energy& green taxes. How:In our viability assessment each year, we identify the risks that are most material to our business & performance. We call these ourPrincipal Risks & these are those which could impact our business within the next 2 years (ie short-term risks), or over the next three tofive years (ie medium-term risks). Some principal risks, such as climate change, could also impact longer term (i.e. >5 years). In additionto identifying our most relevant risks annually, we review if the level of risk is increasing or decreasing. As part of our Risk & ControlFramework, we track current & emerging climate legislation & reflect on whether the risk remains relevant, & the controls in place remaineffective. In 2017, we also analysed the impact on the business from regulatory changes through our 2⁰c & 4⁰c scenario assessment.Mitigation: We monitor governmental developments around actions to combat climate change (e.g. in the US the Clean Air Act and theUK the amended UK Climate Change Act legislating for net zero emissions) & act to minimise the impact on our operations. Unilever iscommitted to complying with the regulations of the countries in which we operate. In specialist areas the relevant teams at global, regionalor local levels are responsible for setting detailed standards and ensuring that all employees are aware of & comply with regulationsspecific & relevant to their roles. Our regulatory specialists are heavily involved in monitoring & reviewing our practices to providereasonable assurance that we remain aware of and in line with all relevant laws & legal obligations.

Emergingregulation


Risk relevance: Emerging laws and regulations related to climate risk are included in our risk assessments as they may materially impactour cash flow, operating results, financial position, business & reputation.. For example, we consider the impact of possible futuremandatory carbon pricing in key countries (e.g. in Brazil and Turkey) resulting in increases in both manufacturing costs and the costs ofraw materials such as ingredients & packaging, as well as zero net deforestation requirements in key sourcing countries such asIndonesia where we source a large proportion of our palm oil. This helps us to manage foresee any implications on the business. How:As part of our Risk & Control Framework, we track current and emerging climate legislation and reflect on whether the risk remainsrelevant, and the controls in place remain effective and efficient. In 2017 we also analysed the impact on the business from theregulatory changes from carbon pricing and zero net deforestation requirements through our 2⁰c and 4⁰c scenario assessment.Mitigation: Unilever is committed to ensuring readiness for emerging regulations in the countries where we operate. In specialist areasthe relevant teams at global, regional or local levels are responsible for setting detailed standards and ensuring that all employees areaware of forthcoming regulations which are relevant to their roles. Our regulatory specialists are heavily involved in monitoring andreviewing our practices to provide reasonable assurance that we remain aware of and in line with all relevant laws and legal obligations.Risks related to emergence of new and emerging regulatory constraints are systematically identified and assessed. We began internallypricing our emissions in 2016 as part of the business case appraisal for large capital expenditure projects in expectation that a carbonprice will be introduced in one or more of our markets in the future. The carbon price is also applied to emissions from our manufacturingsites to raise a clean-tech fund. So far, €73 million has been allocated to this fund for energy and water saving projects. In January 2018the price of carbon was €40 per tonne.

Technology Relevant,alwaysincluded

Risk relevance: Growing numbers of people want to live more sustainably – our Making Purpose Pay research found that 1 in 3 peoplealready purchase products with sustainability in mind. They are looking at the impacts of our products across our full value chain. If we areunable to innovate effectively or utilise technological advancements to make our products more sustainable, we may cease to becompetitive, impacting sales & future growth. For example, Unilever depends on its ability to continue being relevant in its markets suchas in areas of water scarcity including South Africa where there could be reduced demand for our laundry, hair care and hygieneproducts which require water. Because of this Technology is included under our Brand Preference Principal Risk. Technology is key increating innovative, sustainable products that continue to meet the needs of our consumers and getting these new products to marketwith speed. How: As development of products with less, better or no packaging, less or no water use, and/or a lower carbon impact isstrongly reliant on technology improvements, we have systematically integrated technology-related risks in our risk assessment. Our R&Dfunction actively searches for ways in which to translate consumer trends into new technologies for incorporation into future products. Our27 People Data Centres provides our Marketing and R&D teams with insights to inform product development, leveraging our €900mannual R&D spend. We develop product ideas both in house and with selected partners to enable us to implement new technologies andrespond to rapidly changing consumer trends with speed. Mitigation: We lowered the risk by creating and being part of several science &technology networks which enable us to respond better and faster to changes in consumer needs in a way that is better for the planet.For example, the Unilever Science Grid is an international network of academically excellent institutes that help Unilever unlock science& technology for benefit-led innovation. In 2018, 14 strategic, long term relationship agreements were in place. Another example is ourcollective pledge together with other large consumer goods companies to allocate in total US$100 million in funding to Circulate Capital,an investment firm that incubates and finances waste management technology solutions and infrastructure.

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Legal Relevant,alwaysincluded

Risk relevance: Regulation forms part of our Legal & Regulatory Principal Risk. We do not distinguish between legal and regulatory risksin our external reporting. Current laws and regulations related to climate risk is included in our risk assessments as failure to mitigate therisk may materially impact cash flow, operating results, financial position, business & reputation . For example, governments are alreadytaking action to reduce climate change through the introduction of carbon taxes in our markets. In 2018, 3% of our taxes paid weresustainability taxes ie environmental, packaging, energy& green taxes. How: In our viability assessment each year, we identify the risksthat are most material to our business & performance. We call these our Principal Risks & these are those which could impact ourbusiness within the next 2 years (ie short-term risks), or over the next three to five years (ie medium-term risks). Some principal risks,such as climate change, could also impact longer term (i.e. >5 years). In addition to identifying our most relevant risks annually, wereview if the level of risk is increasing or decreasing. As part of our Risk & Control Framework, we track current & emerging climatelegislation & reflect on whether the risk remains relevant, & the controls in place remain effective. In 2017, we also analysed the impacton the business from regulatory changes through our 2⁰c & 4⁰c scenario assessment. Mitigation: We monitor governmentaldevelopments around actions to combat climate change (e.g. in the US the Clean Air Act and the UK the amended UK Climate ChangeAct legislating for net zero emissions) & act to minimise the impact on our operations. Unilever is committed to complying with theregulations of the countries in which we operate. In specialist areas the relevant teams at global, regional or local levels are responsiblefor setting detailed standards and ensuring that all employees are aware of & comply with regulations specific & relevant to their roles.Our regulatory specialists are heavily involved in monitoring & reviewing our practices to provide reasonable assurance that we remainaware of and in line with all relevant laws & legal obligations. Risks related to emergence of new & emerging regulatory constraints aresystematically identified & assessed.

Market Relevant,alwaysincluded

Risk relevance: Market is included under the Brand Preference Principal Risk to Unilever & Portfolio Management Principal Risk toUnilever. Unilever’s growth and profitability are determined by our portfolio of categories, geographies and channels and how theseevolve over time. If Unilever does not make optimal strategic investment decisions taking climate change risks and opportunities intoaccount, then opportunities for growth and improved margin could be missed. For example, Unilever depends on its ability to continuebeing relevant in its markets such as in areas of water scarcity (e.g. South Africa and Brazil) where there could be reduced demand forour products; or in markets where there is an increased demand for plant-based products. How: We systematically identify market-relatedrisks and assess their materiality to our business. We consider the impact of temperature increase, extreme weather events, & waterscarcity for example on economic activity, GDP growth & sales. We monitor trends in raw material availability & pricing, & proactivelyreformulate our products where appropriate. We monitor governmental developments around actions to combat climate change & act tominimise the impact on our operations. Mitigation: Our strategy focuses on investing in markets and segments with competitiveadvantage. We extend our market reach through the acquisition of businesses with capabilities and technologies outside our currentcore. For example, in 2018 we acquired The Vegetarian Butcher as a next step in our journey towards a portfolio with more plant-basedproducts, addressing the growing consumer trend for veganism. We are lowering Market risk through our Connected for Growth (C4G)approach which increases the speed of innovation and time to market e.g. in 2016 in response to a period of drought we launched ourSunlight 2-in-1 Handwashing Laundry Powder in South Africa. In 2017, the Smart Foam technology in this powder was implemented inour Rin soap bars & Rin laundry powder in India, and rolled out to Indonesia, and Vietnam in 2018. Global marketing networks (BrandCommunities) work hand in hand with more than 230 Country Category Business Teams that operate as multifunctional entrepreneurialunits. This allows for more experimentation, responsiveness and scaling up of innovation across markets.

Reputation Relevant,alwaysincluded

Risk relevance: Reputation is included under the Ethical Principal Risk to Unilever. Acting in an ethical manner, consistent with theexpectations of customers, consumers & other stakeholders, is essential for the protection of the reputation of Unilever & its brands.Unilever’s brands and reputation are valuable assets and the way in which we operate, contribute to society and engage with the worldaround us is always under scrutiny both internally and externally. It is important for Unilever to be recognised as a company takingpositive action in the context of climate change as this potentially impacts our share price (through investor confidence) & sales (throughconsumer preference). For example, failure to deliver Unilever’s climate change targets could damage our corporate reputation. How:We track consumer sentiment through our 27 people data centres globally - this identifies emerging issues that may become reputationrisks in the future, including topics related to climate change. We also have Issues Management and External Affairs teams who map theexternal environment and the media coverage related to Unilever and our reputation across key issues. Mitigation: Our communicationsand corporate affairs function is operationally responsible for protecting Unilever's reputation, working with colleagues across thebusiness to ensure that our external engagements and communications do not open us up to reputational risk. In this regard we areguided by our publicly available Code Policies on 'Engaging Externally' which set out the minimum standards of behaviour for employeesin areas such as engaging with media, NGO, government and investors - these extend to all our external interactions with stakeholderson climate related issues. We take part in external ranking and ratings to support our reputation and evidence our commitment to long-term sustainable. For example, since 1999, Unilever has been named DJSI sector leader 19 times and top of the industry 17 times andfor the last 7 years, Unilever has held the top spot in the Globescan annual Sustainability Leaders Survey. These rankings provide anindependent view on our business and act as markers of trust.

Acutephysical


Risk relevance: Acute physical Risks are included under the Climate Change Principal Risk to Unilever & Supply Chain Principal Risk toUnilever. Unilever’s business depends on purchasing materials, efficient manufacturing & the timely distribution of products to ourcustomers. Increased frequency of extreme weather (storms & floods) could cause increased incidence of disruption to ourmanufacturing & distribution network. Such incidences have already affected Unilever. In 2015, a drought in Brazil meant some of ourfactories in Sao Paolo needed to supplement water supplies with tankered water due to restrictions on withdrawals. The exposure topotentially adverse events such as physical disruptions, environmental or industrial accidents or disruptions at a key supplier, could alsoimpact our ability to deliver orders to our customers. Another example of acute physical effects of climate change is the risk that duringperiods of drought consumers will stop or not start using certain Home Care or Beauty & Personal Care products, will use products lessoften, use lower quantities of our products per use, or may be less satisfied with the delivery of products and the product experience.How: As part of our Risk & Control Framework, we track the physical risks related to our supply chain & operations from climate change,whether the risks remain relevant & the controls in place remain effective. In 2017 we also analysed of the impact on the business fromclimate change through our 2⁰c and 4⁰c scenario assessment. Mitigation: We have contingency plans designed to enable us to securealternative key material supplies at short notice (e.g. during extreme weather events) to transfer or share production betweenmanufacturing sites & to use substitute materials in our product formulations and recipes. Commodity price risk is actively managedthrough forward buying of traded commodities & other hedging mechanisms. Trends are monitored & modelled regularly & integrated intoour forecasting process. We are also reducing acute physical risk of climate change on our sales by investing in new products orformulations that work just as well with less water, poor quality water or no water. For example, to respond to the water crisis in SouthAfrica, in 2018 we introduced Domestos Flush Less, a toilet spray that disinfects & eliminates odours without the need to flush.

Relevance&inclusion

Please explain

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Chronicphysical


Risk relevance: Chronic physical Risks are included under the Climate Change Principal Risk to Unilever & Supply Chain Principal Risksto Unilever. Our business depends on purchasing materials, efficient manufacturing & distribution of products to customers. Sourcingsustainably helps secure our supplies & reduces risk & volatility in our raw material supply chains. It opens up opportunities for innovationby focusing on people’s needs & consumer preference. Sustainable farming methods can also improve the quality of our products, suchas our sauces, soups, dressings & ice creams. Failure to manage chronic physical risks such as water shortages could impact the abilityof consumers to use our products which could damage sales and growth. How: We always consider the impact of chronic water stress onagricultural productivity & the impact on the price of raw materials. We include chronic physical risks in our company-level assessments,site-specific & supplier-specific assessments, as well as our product innovation strategy. We monitor trends in raw material availability &pricing, & proactively reformulate our products where appropriate. We monitor governmental developments around actions to combatclimate change (e.g. in the US the Clean Air Act and the UK the amended UK Climate Change Act legislating for net zero emissions) &act to minimise the impact on our operations. In 2017, we also analysed of the impact on the business from climate change through our2⁰c & 4⁰c scenario assessment. Mitigation: Sustainable ‘climate smart’ farming methods have the potential to increase farmers’ yieldsconsiderably, mitigate the effects of climate change & provide farmers, their families & their surrounding communities with opportunitiesto build more prosperous societies – so they can contribute to the UN’s Sustainable Development Goals. For example, through our KnorrPartnership Fund, we provide technical support – & in some cases funding – to help farmers convert to drip irrigation. We work closelywith equipment suppliers to help farmers learn new climate smart agricultural techniques. Since 2010, the KPF has supported €1.8 millionworth of water management projects.

Upstream Relevant,alwaysincluded

Risk relevance: Upstream is included under the Climate Change Principal Risk to Unilever & Supply Chain Principal Risk to Unilever.Unilever’s business depends on purchasing materials to produce our products. We therefore consider the impact of chronic & acutewater stress on agricultural productivity & the impact on the prices of raw materials, particularly in key agricultural sourcing countriessuch as India and Brazil. The cost of our products can be significantly affected by the cost of the underlying commodities and materialsfrom which they are made. How: Commodity price risk is actively managed through forward buying of traded commodities and otherhedging mechanisms. Trends are monitored and modelled regularly and integrated into our forecasting process. We also assess supplierrisk by screening suppliers in relation to their supply chain capabilities and the level of associated environmental and social risk. Allsuppliers must complete our registration process to assess compliance with the mandatory requirements of our Responsible SourcingPolicy Mitigation: Supply chain risk is integrated in to the role of our Supply Chain function. In 2018, we launched our SustainableAgriculture Code (SAC) 2017 which gives Unilever, our farmers & suppliers a set of rigorous standards to drive sustainabilityimprovements across our supply chain. The revised SAC incorporates standards on climate smart agriculture. Operating sustainablyhelps us to future-proof our supply chain against the risks associated with climate change and sourcing materials. By the end of 2018,56% of our agricultural raw materials were sustainably sourced.

Downstream Relevant,alwaysincluded

Risk relevance: Downstream is included under the Climate Change Principal Risk to Unilever & Supply Chain Principal Risk to Unilever& Customer Relationships Principal Risk to Unilever. Unilever’s business depends efficient manufacturing & the timely distribution ofproducts to our customers. Increased frequency of extreme weather (storms & floods) could cause increased incidence of disruption toour manufacturing & distribution network impacting our ability to supply our customers, particularly in emerging markets which representover half our turnover, such as India, China and Brazil. How: We systematically identify market-related risks and assess their materialityto our business. We consider the impact of temperature increase, extreme weather events, & water scarcity for example on economicactivity, GDP growth & sales. Mitigation: We develop joint business plans with our key customers that include detailed investment plansand customer service objectives and we regularly monitor progress. We have developed capabilities for customer sales and outlet designwhich enable us to find new ways to improve customer performance and enhance our customer relationships. We invest in technology tooptimise order and stock management processes for our distributive trade customers.

Relevance&inclusion

Please explain

C2.2d

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(C2.2d) Describe your process(es) for managing climate-related risks and opportunities.

Climate change is one of Unilever’s principal risks which could impact the Group’s business model, future performance, solvency orliquidity over the long-term. This is across the value chain, including direct operations and supply chain.

Climate-related risk governance

The Boards assume overall accountability for the management of risk & for reviewing the effectiveness of Unilever’s risk management& internal control systems. This organisational structure & distribution of accountabilities & responsibilities ensure that every countryin which we operate has specific resources & processes for risk review & mitigation at company level as well as at site & supplierlevel. The Boards are supported by the Corporate Responsibility Committee (CRC), Unilever Leadership Executive, & the UnileverSustainable Living Plan (USLP) Steering Team. The Boards regularly review these risk areas, including consideration of climate-change matters & for determining the nature & extent of the significant risks Unilever is prepared to take. In support of the Boardreviews, we regularly carry out climate-related risk assessments at site level, supplier-level, as well as innovation-project level.

Identifying & managing risks

Our current business model supports our strategy for long-term, compounding growth which can only be delivered by managingimpacts & capitalising on opportunities. Through our Risk & Control Framework we monitor risks throughout the year related toclimate change & reflect annually on whether the risks remain relevant, & the controls in place remain effective. We assess climate-related risk across the value chain – from impacts on sourcing, our operations and on the consumers using the products. Extremeweather events linked to climate change could increase the cost of key commodities, the access to water for our manufacturingfacilities, or the availability of the water quantity &/or quality for consumers to effectively use our products. In 2015, a drought in Brazilmeant some of our factories in Sao Paolo needed to supplement water supplies with tankered water due to restrictions onwithdrawals.

Our biennial materiality assessment has shown climate change & other linked risks (i.e. water scarcity, deforestation etc) are of highimportance to our stakeholders & of high impact on the business for a number of years. To further understand the risks &opportunities related to climate change, we performed a high-level assessment of the 2⁰c & 4⁰c global warming scenarios in 2017using the IEA’s carbon pricing, taking in to account impacts that may result from regulatory changes.

Identifying & managing opportunities

Along with our scenario analysis, we monitor external market trends & collate consumer, customer & shopper insights in order todevelop category & brand strategies. As a lot of our climate-related opportunities are market based, we do not take a ‘one size fits all’approach across our categories & markets. Business benefits are delivered through product innovation which respond to physical risksuch as water scarcity & GHG emissions. In Home Care we are focusing on concentrated liquid laundry detergents such as Persil,Omo and Surf Small & Mighty which help consumers to wash clothes at lower temperatures, reducing GHG by up to 50% per load.We have removed phosphates from all laundry powders worldwide, resulting in lower greenhouse gas emissions of up to 50% perconsumer use. Our Foods & Refreshment division has committed to accelerating the roll-out of freezer cabinets that use moreclimate-friendly natural (hydrocarbon) refrigerants. By 2018 our total purchase of these cabinets had increased to around 2.9 million.In our operations, we also use metering & monitoring to learn where we can drive efficiencies. For example, we have already avoidedenergy costs of €600 million since 2008 through eco-efficiency improvements off the back of learnings. And in 2018, we invested €40million in energy, CO2 and water saving projects through our Clean Technology Fund which will reduce our global CO2 emissions by4.0% with an average payback period of <3 years. Examples of projects funded include a biomass boiler in Ghana to reduce use offuel oil.

Our USLP is fully integrated in our business strategy & climate-related issues are integral to it. Two of our GHG reduction targetsincluded in the USLP are recognised as science-based. We set a number of time bound targets across the value chain to reduce ourGHG emissions – including those associated with manufacturing, sourcing, transport, point of sale & consumer use of our products.We assess the environmental & social impacts of all innovation projects using an EcoDesign tool. This tool assesses GHG emissionsacross the value chain. Progress on our USLP is reported annually in our Annual Report & Accounts & the Sustainable Living Report.

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C2.3

(C2.3) Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategicimpact on your business?Yes

C2.3a

(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on yourbusiness.

IdentifierRisk 1

Where in the value chain does the risk driver occur?Supply chain

Risk typePhysical risk

Primary climate-related risk driverChronic: Changes in precipitation patterns and extreme variability in weather patterns

Type of financial impactReduced revenue from decreased production capacity (e.g., transport difficulties, supply chain interruptions)

Company- specific descriptionClimate change has been identified as a principal risk to Unilever. Through scenario analysis we identified potential physicalimpacts of climate change by 2030, assuming limited action by governments on climate policy. Increased frequency of extremeweather (storms & floods) could cause increased incidence of disruption to our manufacturing & distribution network. Suchincidences have already affected Unilever. In 2015, a drought in Brazil meant some of our factories in Sao Paolo needed tosupplement water supplies with tankered water due to restrictions on withdrawals. Another example of acute physical effects ofclimate change is the risk that during periods of drought consumers will stop or not start using certain Home Care or Beauty &Personal Care products, will use products less often, use lower quantities of our products per use, or may be less satisfied with thedelivery of products and the product experience.

Time horizonLong-term

LikelihoodVery likely

Magnitude of impactMedium-high

Are you able to provide a potential financial impact figure?Yes, a single figure estimate

Potential financial impact figure (currency)300000000

Potential financial impact figure – minimum (currency)<Not Applicable>

Potential financial impact figure – maximum (currency)<Not Applicable>

Explanation of financial impact figureIn 2015 we estimated the potential cost of extreme weather caused by climate change to be up to €300 million per year, based onactual costs incurred from severe weather events such as a dry El Nino weather pattern which brought high temperature across SEAsia in 2015, causing supply chain disruption and additional costs. In 2017, we conducted a 2030 scenario analysis and identifiedfinancial impacts on Unilever’s business from physical risks such as extreme weather and chronic water stress affecting the cost ofraw materials, including agricultural commodities. The impacts were assessed without considering any actions that Unilever might

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take to mitigate or adapt to the adverse impacts.

Management methodThe principles of Climate Smart Agriculture – practices that sustainably increase the productivity and resilience of the agriculturalsystem while reducing greenhouse gas emissions – are integrated into our supplier policies, which are contained in our UnileverSustainable Agriculture Code. With our suppliers and growers, we’re helping them to manage risks arising from water scarcity e.g.we have jointly implemented over 4,000 water management plans through our sustainable sourcing programme, including the useof drip irrigation and the introduction better soil and nutrient management to reduce soil erosion. To manage risks from extremeweather, we’re working with Nature Source Improved Plants in our Tanzanian tea estate to accelerate the breeding of varietiesmore resilient to the effects of climate change (e.g. droughts). We estimate €500k management costs per annum, calculated asfollows: - Cost of performing analysis of risk (such as scenario analysis): This work includes senior management and members ofsupply chain/procurement (provide input on procurement volumes, commodity pricing etc), Science and Environmental AssuranceCentre, global finance sustainability and external consultants. - Management time in responding to and managing the risk e.g.Supply chain, Category: Supply chain and Category are responsible for ensuring that strategy is resilient to material risks identifiedand taking action to mitigate.

Cost of management500000

CommentNo comment necessary

IdentifierRisk 2

Where in the value chain does the risk driver occur?Direct operations

Risk typeTransition risk

Primary climate-related risk driverPolicy and legal: Increased pricing of GHG emissions

Type of financial impactIncreased operating costs (e.g., higher compliance costs, increased insurance premiums)

Company- specific descriptionCarbon and energy taxes and levies are likely to lead to increasing costs for our operating companies in the next few years.Unilever has 274 factories in 69 countries which require energy input in the form of power and thermal energy. We access energyfrom multiple sources that are location-specific. For instance, in Europe our principal energy sources are grid electricity and naturalgas, whereas in Africa we have a greater proportion of biomass and fuel oil. Energy taxes are expected to vary both by country andfuel type. Increases in direct and indirect energy taxes could materially increase Unilever’s manufacturing costs. In 2018, 3% of ourtaxes paid were sustainability taxes ie environmental, packaging, energy & green taxes. If we are unable to deploy some or allmitigating actions, our cash flow, operating results, financial position, business & reputation could be materially adversely affected.

Time horizonLong-term

LikelihoodVirtually certain

Magnitude of impactHigh





Explanation of financial impact figureThe magnitude of the increase in energy costs would depend on the tax level and regulations in the countries where Unilever

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operates. In a study performed in 2014, we quantified the future financial impact of estimated carbon taxes and prices, extendedproducer responsibility fees, and city water and wastewater tariffs. We estimated that we could incur an estimated €4.5bn ofadditional costs in 2030 due to GHG externalities being ‘internalised’ through regulation, pricing and taxes, if we do nothing toreduce emissions. This figure includes all sustainability taxes, not just those directly related to climate. It does not calculatepotential costs prior to 2030. Extended producer responsibility already has financial implications for our business in severalcountries in which we sell our products. For every kg polypropylene we put on the market, the EPR tax is €0.47 in Spain, €0.20 inSouth Korea, and $0.54 in British Columbia.

Management methodThrough our world-class manufacturing improvement programme we are working to reduce GHG emissions in our operationsthrough technology and eco-efficiency measures, thereby reducing our exposure to environmental taxes such as carbon taxes andprices. For example, in 2018 in a factory in the US, we installed a system which uses latent heat from the manufacturing process topre-heat ingredients and avoid use of natural gas. This is expected to save 22,000GJ & 1200 tonnes of carbon annually. Thisproject and others are financed through our central sustainability capital fund which invests into over 400 projects which togetherare expected to deliver annual energy savings of 890,000GJ (3.4% of 2018 global energy use) & 62,000 tonnes of carbon (4.3% of2018 global carbon emissions). In July 2016, we introduced an internal carbon levy which now charges our business Divisions andmanufacturing sites €40 per tonne of carbon emitted to create an internal Clean Technology Fund. In January 2018 the price ofcarbon was €40 per tonne. So far, >€120m has been allocated to this fund for energy and water saving projects. We have used thisfund for projects such as installing a solar thermal system to provide hot water in one of our factories in Saudi Arabia. We estimate(roughly) €400,000 management costs p.a. calculated as follows: management time concerning payment of carbon taxes andenergy taxes and compliance with tax laws in the countries where we operate.



IdentifierRisk 3

Where in the value chain does the risk driver occur?Customer

Risk typePhysical risk

Primary climate-related risk driverChronic: Changes in precipitation patterns and extreme variability in weather patterns

Type of financial impactReduced revenues from lower sales/output

Company- specific description2.8 billion people around the world are experiencing poor access to water. And this number is estimated to increase significantly,with the Water Resources Group estimating that 25% of the total water demand in 2030 will not be met. Household water scarcity isbecoming a major issue in fast-growing cities in developing countries where infrastructure has not kept pace with the growth inpopulation and income. Climate change, urbanisation, population growth and a growing middle class have combined to create aglobal water crisis – characterised by droughts, floods and localised shortages. More people will suffer from water issues in thefuture and their water problems will be more acute due to climate change, increased urbanisation (water infrastructure not keepingup with population growth), and rising incomes (changing lifestyles and aspirations). As a consumer-goods company selling anumber of household and personal care products that require water for use, e.g. laundry detergents , shampoos and conditioners,and toilet cleaners, water issues affect usage and enjoyment of our products. Consumers experiencing water issues will stop or notstart using certain products, will use products less often, use less quantity of products per use, and they may be less satisfied withthe delivery of products and the product experience – impacting our sales and turnover.

Time horizonMedium-term




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Explanation of financial impact figureOur strategy is to develop innovative products which help people adapt to water scarcity, expanding usage occasions. We createdbusiness cases for Home Care, Skin Cleansing, and Hair Care products designed to work effectively in areas with water scarcity,as well as water purification devices enabling consumers to access higher-quality water for domestic use. Based on these detailedbusiness cases for estimating the potential financial impact of new products using future water-smart technologies and portfolioshifts towards low-water or water less formats in our Home Care and Beauty & Personal Care categories, Unilever estimates thatbetween 2016 and 2025 €184m turnover would be at risk due to water shocks and resulting under-consumption if we did notcontinue to adapt our core products to work well with less or low-quality water.

Management method99% of our water footprint occurs when consumers use our products. We are concentrating on product categories which requiremost water including laundry, household cleaning, skin cleansing, oral and hair care. Water-smart products are particularly suited tothe needs of people living in water-stressed areas but can also help encourage a wider shift to more sustainable waterconsumption. They will help our business become more resilient to the impacts of climate change. We’re investing in new productsor formulations that work just as well but with less water, poor quality water or no water at all. For example, to respond to the watercrisis in South Africa, in 2018 we introduced Domestos Flush Less, a toilet spray that disinfects and eliminates odours without theneed to flush. Another 2018 example is Day2, a dry wash spray that revives clothes to look, feel and smell ‘just-washed’ in betweenwashes – saving water and time. Finally, our Love Beauty and Planet range– launched in 2018 in the US and Europe uses fast-rinse technology in its conditioners. These conditioners give great results while being quicker to rinse out. Addressing water shocksand stresses by designing products that can work well with less water or low-quality water is a standard part of our innovationprocess. In addition to standard innovation costs we invest in at manager and Director level equivalent to around €600,000 all-incosts p.a.



C2.4

(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategicimpact on your business?Yes

C2.4a

(C2.4a) Provide details of opportunities identified with the potential to have a substantive financial or strategic impact onyour business.

IdentifierOpp1

Where in the value chain does the opportunity occur?Customer

Opportunity typeProducts and services

Primary climate-related opportunity driverDevelopment of new products or services through R&D and innovation

Type of financial impact

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Better competitive position to reflect shifting consumer preferences, resulting in increased revenues

Company-specific descriptionUnilever’s consumer research shows that consumer demand for sustainable products is no longer a niche & that companiesmeeting this demand stand to benefit financially. More than half of consumers want to buy more sustainably (54%). This study ispart of a growing body of research which shows shifting trends in consumer attitudes around sustainability. For example, a recentstudy by the NYU Stern Center for Sustainable Business showed that in the period between 2013 and 2018 product categoriesmarketed as sustainable delivered 50% of the growth of packaged goods despite representing only 17% of the categories’ market.People who buy fast moving consumer goods products are looking at the impacts of products across the full value chain – at howproducts are designed, sourced, made, transported, sold and used – and their role in society. Washing shirts whiter, making foodstastier, or making hair healthier and shinier is still vitally important to people, but product performance by itself is no longer enough.People are looking for more. This presents an opportunity for Unilever respond to consumers preferences and to talk moreproactively about the purpose and sustainability attributes of our products in our marketing and on pack, building on the UnileverSustainable Living Plan. By doing so, we can position our brands as differentiated from our competitors and drive consumerpreference, sales and growth.

Time horizonShort-term







Explanation of financial impact figureAll of Unilever's brands are on a journey to becoming purposeful. In 2018, 28 of our top brands were Sustainable-Living brands,that is: they have a clear purpose that helps to tackle a social or environmental issue or cause, and they produce products thatreduce their environmental footprint and/or improve health and wellbeing or livelihoods. These brands grew 69% faster than therest of the business and delivered 75% of Unilever’s underlying growth – equivalent to €1.1bn of underlying growth in 2018 (i.e.incremental turnover of Sustainable Living brands).

Strategy to realize opportunityWe're developing our product portfolio in response to the growing demand from consumers for products with purpose at their corewhich address issues such as water scarcity and climate change, which in turn is driving business growth. Our R&D teams searchfor ways to translate consumer trends into new products, for example our concentrated liquid laundry detergents, such as Persil,Omo and Surf Small & Mighty and Seventh Generation’s EasyDose, enable people to wash their clothes at lower temperatures,reducing GHG by up to 50% per load. Concentrated detergents mean that we can fit doses for more washes into smaller bottles,using fewer raw materials. Our top seven brands (Dove, Knorr, Dirt is Good, Rexona, Lipton, Hellmann’s and the Heart brand) areall Sustainable Living brands which incorporate purpose into brand strategies and marketing. For example, Ben & Jerry's buildsmovements around issues such as climate change and the refugee crisis and Seventh Generation campaigns for renewable energy– underpinned by progressive action on climate change within their own operations. The cost to the business of developingsustainable products and communicating this to consumers comes via Marketing branding, R&D & programme costs which areallocated from existing budgets. We would estimate that costs of additional marketing resources, including staff time and third-partycosts to be around €2m p.a on top of this.

Cost to realize opportunity2000000


IdentifierOpp2

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Where in the value chain does the opportunity occur?Customer

Opportunity typeResilience

Primary climate-related opportunity driverOther

Type of financial impactIncreased revenue through new products and services related to ensuring resiliency

Company-specific description2.8 billion people around the world are experiencing poor access to water. And this number is estimated to increase significantly,with the Water Resources Group estimating that 25% of the total water demand in 2030 will not be met. Household water scarcity isbecoming a major issue in fast-growing cities in developing countries where infrastructure has not kept pace with the growth inpopulation and income. Climate change, urbanisation, population growth and a growing middle class have combined to create aglobal water crisis – characterised by droughts, floods and localised shortages. More people will suffer from water issues in thefuture and their water problems will be more acute due to climate change, increased urbanisation (water infrastructure not keepingup with population growth), and rising incomes (changing lifestyles and aspirations). As a consumer-goods company selling anumber of household and personal care products that require water for use, e.g. laundry detergents and shampoos, water issuesaffect usage and enjoyment of our products. Consumers experiencing water issues in countries such as South Africa or Brazil mayhave a preference for water smart products such as our hair care, laundry and toilet cleaning products, positively impacting salesand turnover. Unilever’s water innovations can address the unmet needs of consumers across the world regardless of whether theyhave good or bad water access, through convenience (chores made simpler and faster, personal care on the go), and reducingnegatives (e.g. damage of clothes, hair, and skin). This opens up new opportunities to make Unilever’s business more resilientthrough more users, more usage, and better benefits of our products.




Are you able to provide a potential financial impact figure?Yes, an estimated range

Potential financial impact figure (currency)<Not Applicable>

Potential financial impact figure – minimum (currency)2000000000

Potential financial impact figure – maximum (currency)3000000000

Explanation of financial impact figureOur strategy is to develop innovative products which help people adapt to water scarcity, expanding usage occasions. We createdbusiness cases for Home Care, Skin Cleansing, and Hair Care products designed to work effectively in areas with water scarcity,as well as water purification devices enabling consumers to access higher-quality water for domestic use. Based on our salesprojections for new products using future water-smart technologies and portfolio shifts towards low-water or waterless formats inour Home Care and Beauty & Personal Care categories, Unilever estimates this could yield around €2-3 billion in incremental salesof products that work well with less or low-quality water in 2025 (figure relates to incremental sales in 2025 only not prior years).

Strategy to realize opportunityWe are investing in product innovation to cut water use and exploring options beyond our traditional business model to find newsolutions for communities. One priority is to research, develop and launch water-smart products – new products or formulations thatwork just as well but with less water, poor quality water or no water at all. For example, in 2018 we introduced Domestos FlushLess, a toilet spray that disinfects and eliminates odours without the need to flush. Another 2018 example is Day2, a dry washspray that revives clothes to look, feel and smell ‘just-washed’ in between washes. Love Beauty and Planet– launched in the USand Europe in 2018 – uses fast-rinse technology in its conditioners. Examples of new business models are our Water Centres.Since 2014 we have opened 18 Water Centres in Nigeria. These Centres were designed to be sustainable local businesses. Theysell clean water at an affordable price, and offer food, goods, phone charging and mobile banking facilities. We train local women torun the centres, giving them new skills and allow them to earn a salary. Addressing water shocks and stresses by designingproducts that can work well with less water or low-quality water is a standard part of our innovation process. In addition to standard

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innovation costs we estimate the cost to realise this opportunity to be around €600,000 per annum, comprised of staff costs atmanager and Director level.



IdentifierOpp3

Where in the value chain does the opportunity occur?Direct operations

Opportunity typeEnergy source

Primary climate-related opportunity driverUse of lower-emission sources of energy

Type of financial impactReduced operational costs (e.g., through use of lowest cost abatement)

Company-specific descriptionThe Unilever Sustainable Living Plan sets out our ambition to play a leadership role in the transition to a zero-carbon economy bybecoming carbon positive in our manufacturing by 2030, in recognition of the significant risks and opportunities from climatechange to our business. Renewables have a key role to play in delivering our carbon positive commitment - and to mitigating thecost impact of rising energy prices as well as regulatory risks e.g. carbon prices. Where the economics are favourable forrenewable electricity, it is possible to not only reduce our operational costs related to energy, but also reduce the risk of exposure tofuture energy price increases through PPAs, protecting us from taxes, trading schemes, regulations, or by other factors such asnatural disasters or conflict which may result in increased energy costs.



Magnitude of impactMedium-low

Are you able to provide a potential financial impact figure?No, we do not have this figure

Potential financial impact figure (currency)<Not Applicable>



Explanation of financial impact figureUnilever benefits from lower energy costs through our Power Purchase agreements (PPA) in an increasing number of countries.We have not estimated the exact savings across all countries where we have PPAs because it is a complex calculation that wouldtake 80 person hours to aggregate and calculate for the sake of reporting against CDP only. We do not believe it would serve anyother purpose.

Strategy to realize opportunityOur approach to renewable electricity is guided by our renewable electricity strategy which seeks to target the opportunities toswitch to off site / on site renewable electricity purchasing power agreements (PPAs) in the more liberalised energy markets or userenewable energy certificates (RECs) where these are not available. By the end of 2018, 111 of our manufacturing sites across 36countries were using 100% renewable grid electricity. This accounts for 67% of our total grid electricity consumption and includesmanufacturing sites across all continents. For example, 10 of our sites in the UK and Ireland used 100% renewable electricity froma 23 turbine strong wind farm in Lochluichart in the Scottish Highlands. We also directly generate electricity on our sites. In additionto direct actions to transition our electricity supply to renewable electricity we are also working to help create the right policy andregulatory environment which promotes wider adoption of lower emission sources of energy thereby lowering the cost for

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renewables through greater availability e.g. we’re a member of RE100. Cost to realise opportunity: In 2018, we invested >€40M onCAPEX related to sustainability projects which included carbon reduction through increased energy efficiency and renewableenergy generation in manufacturing. These capital investments have a payback of on average less than 2 years. This does notinclude the costs to purchase PPAs.



C2.5

(C2.5) Describe where and how the identified risks and opportunities have impacted your business.

Impact Description

Productsandservices

Impactedfor somesuppliers,facilities,orproductlines

Impact on our business: Consumers for fast moving consumer brands such as those sold by Unilever are increasingly looking for productsthat have a positive impact on society and the environment. Increasing the number of Unilever brands which meet consumer needs in thisway could significantly increase our growth. In response, we have created our own definition of such a brand. ‘Sustainable Living’ brandsmust not only have a clear purpose that, over time, helps to tackle a social or environmental concern; the products and services sold underthis brand must also contribute to one or more of the targets we have set in our Unilever Sustainable Living Plan. To assess product andpurpose, we developed a methodology to help us determine how, and to what extent, each brand delivers against the two product andpurpose criteria. It enables brands to generate a systematic view of their progress across social and environmental factors. Magnitude ofthe impact (high): In 2018, 28 of our top 40 brands qualified as Sustainable Living brands, growing 69% faster than the rest of the business,while delivering 75% of Unilever’s organic growth – equivalent to 1.1bn in incremental turnover growth in 2018. Management method:Addressing climate risks by designing products that have a lower GHG impact, can work well with less water or low-quality water, and haveless and more easily recyclable packaging is a standard part of our innovation process. A 2018 example is Day2, a dry wash spray thatrevives clothes to look, feel and smell ‘just-washed’ in between washes – saving water and time. Another 2018 example is our new LoveBeauty and Planet brand – launched in 2018 in the US and Europe – which uses fast-rinse technology in its conditioners. Theseconditioners give great results while being quicker to rinse out. Through M&A activity, we are widening our portfolio to help reduce our GHGimpact. For example, The Vegetarian Butcher in The Netherlands which expands our portfolio into plant-based foods and SeventhGeneration, acquired in 2016, which is attracting environmentally conscious millennial consumers through its climate and renewable energyadvocacy and actions to reduce its GHG footprint.

Supplychainand/orvaluechain

Impacted Impact on our business: Water scarcity & climate change are major risks to our business & could significantly impact our growth. Many ofthe raw materials we use in our brands come from farms & forests. That means we need a secure, sustainable supply of these materials forthe future growth of our business. At the same time, our agricultural supply chain connects us to millions of people, which creates a pathwayto realise many of our ambitions for positive social impact. In 2015, palm oil production was impacted by severe weather linked to a dry ElNino weather pattern. This brought high temperature across SE Asia, hitting palm’s fresh fruit yields, lowering output. There were alsosevere forest fires in Indonesia, particularly in Sumatra & Kalimantan where we source substantial volumes from. Being one of the largestbuyers of palm oil means we are inherently linked to the risks associated with it. Our response is to ensure our volumes are sustainable.Since the early 1990s, we’ve pioneered programmes & initiatives designed to drive the highest standards of sustainable sourcing within ouroperations & supply chain alongside wider industry. Our Sustainable Agriculture Programme, our Unilever Sustainable Agriculture Code(SAC), & our Responsible Sourcing Policy, are at the heart of our approach. The SAC defines what sustainable sourcing means in practiceusing 11 social, economic & environmental indicators. With our suppliers & growers we have implemented 4,000+ water management plansthrough our sustainable sourcing programme, ranging from drip irrigation to better soil & nutrient management. In 2018, we set out to certifyan initial 40 suppliers, selected to ensure a representative variety of our crops & geographies, against SAC 2017. Feedback showed theywelcomed more intensive interaction with the auditor during the certification process, & the opportunity to improve their farming practices byremediating non-conformances. We now have data on our sustainable agriculture programme covering 2012–2017. While factors such asthe variability of weather mean that this is a short period to identify trends in agricultural data, our findings to date are positive. Averagedacross all crops in the SAC programme (measured per tonne of product), we see a 21% reduction in irrigation water use, a 17% reduction inpesticide use, & a 2% reduction in carbon footprint.

Adaptationandmitigationactivities

Not yetimpacted

Potential impact on our business: Climate change has been identified as a principal risk to Unilever –failure to adapt and mitigate in certainscenarios could have a material on the company by 2030. To further understand the impact that climate change could have on Unilever’sbusiness we performed a high-level assessment of the impact of 2°C and 4°C global warming scenarios. . The scenarios were constructedon the basis that average global temperatures will have increased by 2°C and 4°C in the year 2100. We looked at the impact on ourbusiness in 2030 assuming we have the same business activities as we do today. In a 2°C scenario, the introduction of carbon pricing andzero net deforestation requirements in key countries would result in increases in manufacturing/raw material costs by 2030. In the 4°Cscenario, chronic & acute water stress reducing would reduce agricultural productivity in some regions, resulting in raised prices of rawmaterials by 2030. Magnitude of the impact: Our analysis shows that, without action, both scenarios present financial risks to Unilever by2030, predominantly due to increased costs, however whilst there are financial risks which would need to be managed there will be alsoopportunities and we would not have to materially change our business model. The most significant impacts of both scenarios are on oursupply chain where costs of raw materials and packaging rise due to carbon pricing and rapid shift to sustainable agriculture in a 2°Cscenario and due to chronic water stress and extreme weather in a 4°C scenario. The impacts on sales and the cost of manufacturingoperations are likely to be relatively small in these scenarios. Management method: The results of this analysis confirm the importance ofdoing further work to ensure that we understand the critical dependencies of climate change on our business and to ensure we have actionplans in place to help mitigate these risks and thus prepare the business for the future environment in which we will operate e.g. bydeploying our Sustainable Agriculture Code, which includes climate smart agricultural practices, to farmers and grower. We are conductingfurther analysis on the impact of climate change on our agricultural supply chain this year including soy bean oil.

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Investmentin R&D

Impactedfor somesuppliers,facilities,orproductlines

Impact on our business: As a result of the increasing demand from consumers for sustainable products, sustainable innovation is asignificant growth opportunity for Unilever especially in the area of water smart innovations. All innovation projects are assessed across anumber of sustainability areas - including their GHG, water & waste impacts & contribution towards our targets within our UnileverSustainable Living Plan. Project scores are tracked & reviewed by project teams as well as senior management up to the R&D leadershipteam. Magnitude of the impact (high): Based on our sales projections for new products using future water-smart technologies and portfolioshifts towards low-water or waterless formats in our Home Care and Beauty & Personal Care categories, Unilever estimates this could yieldaround €2-3 billion in incremental sales of products that work well with less or low-quality water in 2025. Management method: We use ourexpertise in innovation & R&D to bring people products they enjoy but which come with lower GHG impacts, both in our factories & whenthey are being used. We particularly invest in R&D for those parts of our portfolio where sustainable innovation has a large impact onreducing our footprint & where there is strong consumer demand. For example, in Home Care, our concentrated liquid laundry detergents,such as Persil, Omo & Surf Small & Mighty, enable consumers to save energy by washing clothes at lower temperatures, reducing GHG byup to 50% per load. Launched in 2018, Seventh Generation’s ultra-concentrated liquid laundry detergent, EasyDose, is helping peoplereduce their GHG emissions through enabling energy savings. The new smaller & lighter packaging – 75% lighter than the standard bottle –also means that more bottles can be packed onto each pallet, further reducing GHG emissions as well as transport costs. Productinnovation in our Beauty & Personal Care ranges can help people to reduce how much water they use in their home & therefore energyrequired for heating. For example, our new Love Beauty and Planet range in the US – launched in 2018 – uses fast-rinse technology in itsconditioners. These conditioners give results while being quicker to rinse out.

Operations Impacted Impact on our business: In our operations, we use two forms of energy: heat (thermal) and power (electrical). We use thermal energy mainlyin the form of hot water during manufacturing. Electrical energy is used for a range of purposes, such as lighting and powering machinery.As part of the action we’re taking to achieve our carbon positive ambition, we’re in the process of eliminating our use of fossil fuels forgenerating both heat and power. Unilever wants to make manufacturing as efficient as possible – using fewer resources and generating lesswaste. The costs savings from eco-efficiency – particularly from energy savings – help our bottom line. Magnitude of the impact (moderate):Between 2008 and the end of 2018 we had reduced GHG emissions from energy used in our factories by 52% per tonne of productioncontributing to cumulative cost avoidance from energy of over €600 million since 2008. Management method: Our ambitious eco-efficiencytargets cover 274 of our manufacturing sites in 69 countries. By the end of 2018, 15 of our sites globally were carbon neutral. This meansthat these sites have no net impact on CO2 levels in the atmosphere. These sites have used a variety of renewable energy sources tomove away from fossil fuels. For example, our offices in Surrey and London, and our food and drinks factories in Trafford Park and Corkhave been powered by 100% renewable electricity from the grid and 100% biomethane (also known as biogas) since January 2017. Thebiomethane – which is fully traceable and certified – is generated from anaerobic digestion, which converts inedible food waste and sewageinto energy. By the end of 2018, 111 of our manufacturing sites across 36 countries were using 100% renewable grid electricity. Thisaccounts for 67% of our total grid electricity consumption and includes manufacturing sites across all continents. Ten of our sites in the UKand Ireland use 100% renewable electricity from a 23 turbine strong wind farm in Lochluichart in the Scottish Highlands. With otherbusinesses and NGOs – including SSE, Greenpeace and the WWF – we’re also advocating for more government investment in offshorewind power in the UK.

Other,pleasespecify

Impacted Other: External advocacy Impact on our business: Tackling climate change requires transformational changes to the broader systems inwhich we operate. For this we need strong government policy that creates the right context for change and business action. It is critical thatorganisations from all sectors work in collaboration, partnering on projects and initiatives to take action. This not only improves ourreputation but creates the right policy and business environment to step up investment in climate action – generating growth opportunitiesand potential cost savings. Magnitude of the impact (moderate): An IFC report shows that the Paris agreement on climate change hashelped open up nearly $23 trillion in opportunities for climate-smart investments in emerging markets between 2018 and 2030. Climatesmart investment opportunities enabled by a supportive policy environment can help to deliver further costs savings in our operations andvalue chain, on top of the €600m energy costs avoided from eco efficiency in our factories between 2008 and 2018. Management method:We are advocating for policies that advance the goal of the Paris Agreement to limit global temperature rises to well below 2 degrees, andideally 1.5 degrees. We are doing this through ambitious targets within our own operations and working in partnership with others to scale upaction around the world through multiple private sector groups and coalitions. In the run-up to COP21 we announced that we will becomecarbon positive in our operations by 2030. We work with many other businesses, international institutions and partners. In 2018 our principlepartners included: We Mean Business, WBCSD, Carbon Pricing Leadership Coalition, World Economic Forum, RE100, Powering Past CoalAlliance, The B Team, and the Global Commission on the Economy and Climate. We take part in events such as the United Nationsintergovernmental climate summits and, when possible, advocate directly to heads of state, ministers and government organisations on theimportance of climate action. We support policies that accelerate change towards a low-carbon economy, drive growth and reduce risk.

Impact Description

C2.6

(C2.6) Describe where and how the identified risks and opportunities have been factored into your financial planningprocess.

Relevance Description

Revenues Impactedfor somesuppliers,facilities, orproductlines

Impact on financial planning: Addressing climate risks by designing products that have a lower GHG impact, can work well with lesswater or low-quality water is significant growth driver for Unilever and is already impacting our revenue (e.g. through the sale of recentsustainability innovations which deliver consumer benefits including our new Love Beauty and Planet range in the US which uses fast-rinse technology in its conditioners thereby requiring less water, and Domestos Flush Less, available in water-scarce South Africa, keepstoilets clean while saving nine litres of water per flush). It will likely impact our projected revenue in the future – particularly in our HomeCare and Beauty & Personal Care divisions where a number of products are available which address water scarcity and/or have a lowerGHG in use. Product innovations which respond to water scarcity and climate change at the same time as helping consumers, continueto create growth opportunities for us.. Magnitude of impact: Impact on revenue is currently moderate but likely to be higher in the future.For example, based on our sales projections, we estimate that the sale of products which address water scarcity issues could yieldaround €2-3 billion cumulative incremental turnover by 2025.

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Operatingcosts

Impactedfor somesuppliers,facilities, orproductlines

Impact on financial planning: Operating costs have already been impacted by extreme weather caused by climate change e.g. linked toan El Nino weather event in South East Asia in 2015 which caused supply chain disruption. To understand the impact of climate changeon future commodity prices, during 2018 we piloted an approach to assess the impact of climate change on our key commodities in keycountries where we source soy. We selected soy for this pilot based on its importance to Unilever (large purchased volume), it being ahigh-profile crop in the countries where it is grown and the availability of good historical price data and suitable climate models. Themodel considered the direct risks from climate change to the price of soybean oil, e.g. change in yield and change in supply. Threemodelling steps were performed: •Yield estimation: We analysed multiple agriculture and climate models to provide a forecast range ofexpected yields in key growing regions. •Price relationship: An econometric model was developed, based on an analysis of the soybeanoil market and historical trends, to estimate the impact of climate-induced yield changes on future prices, considering co-products egsoybean meal, substitution potential eg with sunflower oil and industrial uses of soybean oil, as well as the impact of yield on price.•Impact estimation: Future yields & price impacts were then translated into an estimated financial exposure from climate change for ourbusiness, using our forecast procurement volumes. Magnitude of impact (operating costs caused by extreme weather – moderate; futurecommodity prices – low;): The impact on operating costs caused by extreme weather is moderate. In 2015 we estimated the potentialcost of extreme weather caused by climate change to be up to €300 million per year. The impacts on future commodity prices (soy) islikely to be relatively low. Our pilot analysis of key commodities showed that soybean yields may increase over the 2030 and 2050-timehorizon and that subsequent lower prices may then lead to small potential reductions in our procurement spend on soy.

Capitalexpenditures/ capitalallocation


Impact on financial planning: To mitigate any potential future regulatory risks regarding the introduction of carbon taxes in our markets,we put a price on the carbon emissions emitted by a business to ensure it is considered when making financial decisions. We haveimplemented carbon pricing in our business case calculations and signed the World Bank’s carbon pricing statement to encourageothers to do the same. In July 2016, we introduced an internal carbon levy which now charges our business divisions and manufacturingsites €40 per tonne of carbon emitted to create an internal Clean Technology Fund. We have used this fund for projects such asinstalling a biomass boiler in our Tema factory in Ghana. And in our Cuernavaca site in Mexico, we installed a solar thermal system toprovide hot water in the factory. Magnitude of impact (low): In January 2018 the price of carbon was €40 per tonne. Since its introduction,€73 million has been allocated to our Clean Technology Fund for energy and water saving projects. In 2018, we invested over €40M onCAPEX related to sustainability projects which included carbon reduction through increased energy efficiency and renewable energygeneration in manufacturing. These capital investments have a payback of on average less than 2 years but are too small to have amaterial impact on our overall capex budget.

Acquisitionsanddivestments


Impact on financial planning: To capitalise on the future revenue opportunities from sustainable products, a number of our recentacquisitions, including Pukka Herbs, Sundial, Mae Terra, Seventh Generation, and Olly Nutrition are recognised as B Corps - meaningthey have met stringent environmental and social criteria as laid out in the B Corp impact assessment. For example, Seventh Generationadvocates for renewable energy and is taking action to decarbonise its own business and Pukka Herbs has its own zero carbon goalwhich has been approved by the science-based target initiative. These acquisitions form part of a deliberate M&A strategy to acquirenew businesses which serve niche consumer segments – including socially and environmentally conscious millennial consumers.Magnitude of impact (high): A number of these new acquisitions are already growing double digits following market expansion, therebycontributing to our turnover growth. The impact of acquisitions is likely to be high in the future. The acquisitions and disposals made orannounced since 2015 (including five B Corps) are expected to add one percentage point to our ongoing underlying sales growth ratefrom 2019.

Access tocapital

Impacted Impact on financial planning: To capitalise on the growth of sustainable impact investing & to help mitigate operational risk, in 2014Unilever issued a £250 million Green Sustainability Bond, inviting investors to support our vision for sustainable growth while investing inUnilever credit. The 4.5-year bond was a first for Unilever, the first green bond in the sterling market and the first to be issued by anFMCG company. Proceeds have been used on projects linked to greenhouse gases, water and waste targets in the Unilever SustainableLiving Plan and the bond was repaid on 19 December 2018. We worked with independent sustainability service provider DNV GL todevelop a Green Sustainability Bond framework which provides clarity and transparency around the Environmental and Use of Proceedscriteria. The criteria meet the guidance given in the Green Bond Principles on robust processes and disclosure by an issuer to facilitateunderstanding of the characteristics of a bond by investors et al. in this area. Projects benefiting from proceeds of the Bond include: •Home and Personal Care: A new multi-category factory in Selçuklu-Konya, Turkey will produce brands employing eco-efficiencymeasures such as rainwater harvesting, water recycling, solar water heating and LEED building certification. The site became fullyoperational in 2018. • Refreshment: This project further strengthens the environmental credentials of our ice cream cabinets at the pointof sale through the purchase of HFC-free freezer cabinets using natural hydrocarbon refrigerants. This project is completed. Magnitudeof impact (low): The impact is limited in relation to the context of the capital that Unilever can access (we have a 2x target for net debt tounderlying EBITDA ratio). The total bond was £250 million with a 2% fixed rate per annum. The bond has not materially affectedUnilever’s access to capital.

Assets Impactedfor somesuppliers,facilities, orproductlines

Impact on financial planning: Unilever assets which can be impacted by climate change risks include our inventory of products as well asowned property (factories, research facilities. offices) and plant and machinery which could suffer physical damage or loss. We apply adepreciation rate to assets according to its estimated useful life. For example, plant and equipment generally has a 2-20 year lifespan.We factor depreciation of assets into our financial planning. Our factories follow BREEAM sustainability standards which impact financialplanning due to the cost of pursing these certifications e.g. our newly opened foods innovation centre in the Netherlands attainedBREEAM outstanding, meaning it met stringent criteria in relation to energy, water and waste and climate adaptation measures tomitigate against the impact of extreme weather. Magnitude of impact (moderate): As the physical risks of climate change risks graduallyincrease we expect the impact on assets to increase resulting in higher rates of depreciation of certain assets classes in locationsvulnerable to the effect of climate change, in particular more extreme weather such as storms and flooding which could damage assets.

Liabilities Notevaluated

We currently do not factor in climate-related liabilities into our financial planning.

Other Notimpacted

We do not currently factor in any other climate-related risks and opportunities other than those mentioned above, into our financialplanning.

Relevance Description

C3. Business Strategy

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C3.1

(C3.1) Are climate-related issues integrated into your business strategy?Yes

C3.1a

(C3.1a) Does your organization use climate-related scenario analysis to inform your business strategy?Yes, qualitative and quantitative

C-AC3.1b/C-CE3.1b/C-CH3.1b/C-CO3.1b/C-EU3.1b/C-FB3.1b/C-MM3.1b/C-OG3.1b/C-PF3.1b/C-ST3.1b/C-TO3.1b/C-TS3.1b

(C-AC3.1b/C-CE3.1b/C-CH3.1b/C-CO3.1b/C-EU3.1b/C-FB3.1b/C-MM3.1b/C-OG3.1b/C-PF3.1b/C-ST3.1b/C-TO3.1b/C-TS3.1b)Indicate whether your organization has developed a low-carbon transition plan to support the long-term business strategy.Yes

C3.1c

(C3.1c) Explain how climate-related issues are integrated into your business objectives and strategy.

Influence of climate-related issues on our business objectives and strategy: Unilever’s vision is to grow our business whilstdecoupling our growth from our environmental footprint and increasing positive social impact. This vision explicitly recognises thatsustainable and equitable growth – including management of climate related issues - is the only way to create long-term value for ourshareholders and stakeholders. The Unilever Sustainable Living Plan (USLP) is our strategy to deliver our vision and is integratedwith our business strategy, in turn helping us deliver long-term sustainable growth. The USLP covers all aspects of our business,incorporates all our brands and Divisions, and covers every country we work in. It aims to create change across our value chain –from our operations, to our sourcing and the way consumers use our products. Climate-related issues are integral to the USLP – bothdirectly and indirectly. We have 12 targets which directly respond to climate-related risks and opportunities such as our commitmentto become carbon positive in our operations, reduction of GHG emissions across our value chain and the roll out of low carbonfreezers for our ice cream portfolio. A number of our targets also directly address issues related to water scarcity caused by climatechange. Indirectly, a number of our commitments aim to support groups who are vulnerable to the effects of climate change and whoare critical to our future growth – notably smallholder farmers and women in low income countries.

Links between our business strategy and emission and energy reduction targets: Our business strategy is supported by aclimate strategy, which is underpinned by GHG reduction targets. We are taking action to reduce GHG emissions throughout ourvalue chain and have a number of GHG and energy reduction targets. Two of our GHG targets are recognised as science-basedtargets:

• Halve the greenhouse gas impact of our products across the lifecycle by 2030

• We will become carbon positive in our manufacturing by 2030

Our efforts to reduce energy and GHG emissions directly support our strategy and vision by helping us save costs. For example, byusing less energy, we have already avoided energy costs in our factories of over €490 million since our baseline year of 2008.Helping consumers adapt to the effects of climate change is also a growth driver for Unilever. For example, we estimate that the saleof products which address water scarcity issues could yield around €2-3 bn incremental sales in 2025, particularly in our Home Careand Beauty & Personal Care divisions where a number of products are available which address water scarcity and/or have a lowerGHG in use.

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Examples of business decisions influenced by climate-change R&D strategy: We use our expertise in innovation and R&D tobring people products they enjoy but which come with lower GHG impacts. Our laundry brands have a strong track record ofinnovation to reduce GHG emissions while maintaining performance, including unit dosing, compacted powders and concentratedliquids. Another example is our ice cream freezer cabinet programme. We’re leading the way in deploying natural (non-GHG)refrigerant and low-energy freezers that reduce the greenhouse gas impact of our freezers, as well as working with others to createan industry shift. A number of our recent acquisitions have been B Corps which typically have progressive approaches tosustainability and which, in some cases, rely on more natural ingredients for their products. For example, we acquired Mãe Terra, afoods company whose vision is to democratise natural and organic food by taking care of people and planet. Another example is theacquisition of Pukka Herbs, a tea company with a strong health and wellness philosophy centred around benefiting people, plantsand planet. In 2018 we launched a new Beauty & Personal Care brand in the US to appeal to environmentally conscious millennialconsumers called Love Beauty and Planet. Its packaging is 100% recyclable and is made from 100% recycled materials. The brandalso contributes $40 per tonne of carbon to a carbon tax fund to fund environmental initiatives and the brand has a target to reduce itscarbon footprint by 20% by 2020.

Climate change influence on our short, medium and long-term strategy: Some of the most important actions we are takingacross our value chain include:

- Working to eliminate deforestation from supply chains, with a particular focus on sustainable palm oil production

- Working towards sourcing 100% energy across our operations from renewable sources, and eliminating coal

- Reformulating products to reduce GHG emissions and help consumers adapt e.g. removing phosphates from laundry detergents

- Converting to natural refrigerants & high energy efficiency freezers

- Differentiating our brands: By responding to changing consumer attitudes with brands that protect natural resources or whichcampaign on climate e.g. Ben & Jerry’s

- Supporting farmers to practice climate smart agriculture & reduce energy use e.g. encourage use of the Cool Farm Tool .

- Future proofing raw material supply: We invest in agricultural training to help farmers increase yields and reduce input costs,ensuring supply

- Supporting the generation of more renewable energy than we use in our manufacturing, and making the surplus available to thecommunities in which we operate

C3.1d

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(C3.1d) Provide details of your organization’s use of climate-related scenario analysis.

Climate-relatedscenarios

Details

2DSIEA 450GreenpeaceRCP 8.5IEA B2DS

We drew on various scenarios including physical scenarios (e.g. IPCC RCP 8.5 Scenario) and transition scenarios (e.g. Greenpeace EnergyRevolution, IEA WEO 450ppm scenario, IEA 2DS ). Inputs: We drew on various 3rd party scenarios as well as TCFD guidance which suggestseparating transition impacts from physical impacts: • 4°C physical climate scenarios: describing the changes in the climate system (temperature,water stress, extreme weather) associated with 3-4°C warming eg IPCC RCP 8.5 Scenario • 2°C transition scenarios: describing the policy,technology & market shifts in the energy system needed to limit warming to 2°C eg Greenpeace Energy Revolution, IEA WEO 450ppm scenario Wealso used internal data sources: • Historical financial results eg turnover • Unilever (UL) Scope 1 & 2 emissions • GHG emissions from across ourvalue chain (scope 3) • UL spend on agricultural commodities Coverage: The scenario analysis covered UL’s full value chain: raw materials,manufacturing, logistics & sales. Time-horizons: We considered scenarios on our business in 2030 as this is in line with our current GHG emissiontargets. Assumptions: In the 2°C scenario, we focus exclusively on transition risks (such as regulatory change) & assume in the period to 2030,society acts rapidly to limit emissions & puts in place measures to restrain deforestation & discourage emissions (eg implementing a carbon price).Inthe 4°C scenario, we focus exclusively on physical impacts risks & assume climate policy is less ambitious with emissions remaining high so thephysical manifestations of climate change are increasingly apparent by 2030. Methodology: We identified material impacts on our business arisingfrom each scenario based on existing internal & external data (see inputs above). We quantified financial implications of the impacts identified onturnover & cost of sales eg we applied the IEA’s 450ppm carbon prices (at $75-100 per tonne) to emissions from our manufacturing sites & the carbonfootprint of our raw materials to calculate one of the cost impacts in our 2°C scenario. Results: Main impacts of the 2°C scenario on UL: • Carbonpricing is introduced in key countries & there are increases in both manufacturing & raw material costs such as dairy ingredients & metals used inpackaging • Zero net deforestation requirements introduced & shifts to sustainable agriculture pressures agricultural production, raising the price ofkey raw materials Main impacts of the 4°C scenario: • Chronic & acute water stress, reducing agricultural productivity in some regions, raising pricesof raw materials • Increased frequency of extreme weather causing increased incidences of disruption to manufacturing & distribution networks •Temperature increase & extreme weather events reducing economic activity, GDP growth & sales levels fall Informed & influenced business strategy:Both 2 & 4°C scenarios highlighted risks in our supply chain. We are conducting further deep dives into individual crops such as soy. Our Division’sresponse to climate change has been guided by a review of the growth opportunities. For example, in Foods & Refreshment we are focused on thegrowth opportunities from the trend of alternative protein (i.e. no meat/dairy) diets (e.g. Knorr Future 50, Magnum vegan); in Home Care we continueto focus on growth opportunities associated with concentrated detergents which wash at lower temperatures (e.g. Persil, Omo, Surf Small & Mightyand Seventh Generation’s EasyDose); and in Beauty & Personal Care we are addressing water scarcity risks through water-smart products (e.g.Love, Beauty & Planet fast-rinse conditioner). Across all Division’s we are prioritising better, less and no plastic packaging solutions (e.g. through theuse of post-consumer use plastic in our products).

C-AC3.1e/C-CE3.1e/C-CH3.1e/C-CO3.1e/C-EU3.1e/C-FB3.1e/C-MM3.1e/C-OG3.1e/C-PF3.1e/C-ST3.1e/C-TO3.1e/C-TS3.1e

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(C-AC3.1e/C-CE3.1e/C-CH3.1e/C-CO3.1e/C-EU3.1e/C-FB3.1e/C-MM3.1e/C-OG3.1e/C-PF3.1e/C-ST3.1e/C-TO3.1e/C-TS3.1e)Disclose details of your organization’s low-carbon transition plan.

We want to play a leading role in the transition to a low carbon economy at a system level as well as transition our business tobecome low carbon which is why in 2015, we set ourselves the ambition of becoming carbon positive in our own operations by 2030.This means we will eliminate fossil fuels from our operations and directly support the generation of more renewable energy than weuse. We have also set ourselves the target to halve the greenhouse gas impact of our products across their lifecycle by 2030. Both ofthese targets underpin our science-based climate strategy which is our low-carbon transition plan to help us achieve our targets by2030. We measure the impact of our products across the value chain: from raw materials (primary packaging, secondary packagingand ingredients) to manufacturing, transport, storage at retail and at home, and consumer use and disposal.

The Science Based Targets Initiative has validated both our greenhouse targets as meeting the level of decarbonisation that isneeded to keep the global temperature increase below 2 ⁰C compared to pre-industrial levels. To become carbon positive in our ownOperations (which includes our manufacturing, distribution centres, research laboratories, marketing and sales offices and datacentres) we will: source all our electricity purchased from the grid from renewable sources by 2020, source 100% of our energyacross all our operations from renewable sources by 2030, eliminate coal from our energy mix by 2020, and directly support thegeneration of more renewable energy than we use, making the surplus available to the markets and communities where we operateby 2030.

By the end of 2018, we had cut CO2 emissions by 52% per tonne of production versus our 2008 baseline. We have been calculatingthe greenhouse gas footprint of our products across their lifecycle since 2010, on the basis of around 2,800 products that arerepresentative of our product categories and portfolio (Beverages, Deodorants, Dressings, Hair Care, Household Care, Ice Cream,Laundry, Oral Care, Savoury, Skin Care and Skin Cleansing). Our footprint focuses on 14 key countries which represent around 60-70% of our sales volume. We annually report the progress on our commitment to halve the greenhouse gas impact of our products by2030 compared to our 2010 baseline in the Annual Report and Accounts and on our website.

Challenges that could inhibit successful implementation of our transition plan

The GHG emissions of our products are around 46.2g CO2e per consumer use. Since 2010, our GHG impact per consumer usecontinues to edge up and has now increased by around 6% since 2010. Our 2018 footprint shows reductions in GHG emissions fromthe increased use of renewable energy in our factories, innovation (e.g. 95% reduction of phosphates from our laundry powders), andportfolio changes (e.g. the market growth of concentrated fabric conditioner). However, these GHG reductions have been negated bythe acquisition a number of years ago of skin cleansing and hair care brands with products that have above-average greenhouse gasimpact per consumer use as they are being used by consumers while taking heated showers and baths.

Steps being taken to implement a low-carbon transition plan

We cannot become carbon positive through our own actions alone, and so we are working collaboratively with partners, suppliers andothers to achieve our ambition. Our success partly depends on changes in the energy markets worldwide, such as the rate ofinstallation of renewable electricity in many countries – and we recognise we have a role to play as an industry leader to help shapethose markets. We’ve created a detailed plan to annually assess the feasibility for Unilever to reach our halving target by 2030,taking both external transitions towards a low-carbon society as well as the latest available data and assumptions about our GHGfootprint into account. The basis of this plan is the set of around 2,800 products representative of our global portfolio across allcategories for which we have full value-chain LCA results. We recalculated the footprint of these products using the latest 2030projections on external transitions to a low-carbon economy (e.g. IEA 2030 projection on grid changes to renewable energy), low-carbon transition plans in our operations (e.g. achieving zero net deforestation by 2020, using 100% renewable energy by 2020) andInnovation Roadmaps (e.g. redesign for lower embedded carbon emissions, transforming the temperature-controlled supply chain). The Unilever Leadership Executive annually evaluates the progress we are making towards reaching our 2030 halving GHG goal byreviewing the latest footprint results and the cross-function low-carbon transition roadmaps.

C4. Targets and performance

C4.1

(C4.1) Did you have an emissions target that was active in the reporting year?Both absolute and intensity targets

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C4.1a

(C4.1a) Provide details of your absolute emissions target(s) and progress made against those targets.

Target reference numberAbs 1

ScopeScope 1 +2 (market-based)

% emissions in Scope100

Targeted % reduction from base year100

Base year2015

Start year2016

Base year emissions covered by target (metric tons CO2e)1858924

Target year2030

Is this a science-based target?Yes, this target has been approved as science-based by the Science-Based Targets initiative

% of target achieved15

Target statusUnderway

Please explainThis target is a continuation of Abs1 reported in 2018. Unilever committed to reduce scope 1 and 2 GHG emissions 100% by 2030from a 2015 base year. This target has been approved by the Science Based Targets Initiative. We will achieve the target through:1) reducing intensity of energy consumption and 2) use of 100% renewable energy for all residual energy requirements. During2018, the third year of this target, we reduced absolute scope 1+2 emissions by 6.7% vs 2017, with scope 1 emissions reducing by5.5% and scope 2 emissions reducing by 7.8%. Progress will accelerate in coming years as we work towards our RE100 target toachieve 100% renewable grid electricity by 2020, also due to 1) formation of new partnerships, 2) as more renewables becomeavailable, 3) as regulatory authorities open up markets and, 4) as we scale up and repeat projects that we are currently testingwithin markets.

Target reference numberAbs 2




Base year2015

Start year2016

Base year emissions covered by target (metric tons CO2e)1858924

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Target year2040

Is this a science-based target?No, but we are reporting another target that is science-based

% of target achieved0.15


Please explainThis target is a continuation of Abs2 reported in 2018. Having achieved zero scope 1+2 emissions by 2030 (target Abs1), as a longterm target we will ensure that existing operations maintain this status and new operations are designed to operate using 100%renewable energy. This target will supersede target Abs1 after 2030. During 2018, the third year of this target, we reduced absolutescope 1+2 emissions by 6.7% vs 2017, with scope 1 emissions reducing by 5.5% and scope 2 emissions reducing by 7.8%.Progress will accelerate in coming years as we work towards our RE100 target to achieve 100% renewable grid electricity by 2010,plus due to 1) formation of new partnerships, 2) as more renewables become available, 3) as regulatory authorities open upmarkets and, 4) as we scale up and repeat projects that we are currently testing within markets.

C4.1b

(C4.1b) Provide details of your emissions intensity target(s) and progress made against those target(s).

Target reference numberInt 2




MetricMetric tons CO2e per metric ton of product

Base year2017

Start year2018

Normalized base year emissions covered by target (metric tons CO2e)0.0767740129

Target year2018

Is this a science-based target?No, but we are reporting another target that is science-based


Target statusExpired

Please explainThis target applies to Unilever’s manufacturing sites only, excluding distribution centres, warehouses, offices and data centreswhich comprised 7% of scope 1+2 emissions in 2017. Unilever's medium-term target for emissions of CO2 from energy used inmanufacturing is that emissions in 2030 will be zero. In addition to this absolute target, we set annual relative targets for each eco¬-efficiency metric to assess progress and keep us on track towards our long-term goal. Our target for 2018 was a reduction per

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tonne of production of 8%. Our reporting year runs from 1st October 2017 - 30th September 2018, hence start and target dates setas '2018'.

% change anticipated in absolute Scope 1+2 emissions7.44

% change anticipated in absolute Scope 3 emissions0

Target reference numberInt 1

ScopeOther, please specify (Scope 1+2 (market-based) +Scope 3 (upstream & downstream))



MetricOther, please specify (kg CO2e per consumer use)

Base year2010

Start year2010

Normalized base year emissions covered by target (metric tons CO2e)42.6

Target year2030

Is this a science-based target?Yes, this target has been approved as science-based by the Science Based Targets initiative



Please explainUnilever has committed to reduce GHG emissions from the life-cycle of its products by 50% per consumer use by 2030 from a 2010base-year. This target has been approved by the Science Based Targets Initiative. Based on projections for changes in the numberof consumer uses of our products by 2030, this equates to a 5% decrease in absolute emissions. Within this target, we aim toreduce emissions from our own operations (scope 1+2) by 100% by 2030. The baseline for 2010 was calculated from a portfolio ofproducts across 30 countries, covering approximately 70% of our total GHG footprint. By 2018, the emissions intensity hadincreased by 6% compared to 2010, particularly due to the growth of our skin cleansing portfolio, which has resulted in an increasein the number of hot showers being taken by our consumers. However, as our turnover increased by 15% in the same period, thisdoes demonstrate that we have decoupled emissions from business growth. We’ve created a detailed plan to annually assess thefeasibility for Unilever to reach our halving target by 2030, taking both external transitions towards a low-carbon society as well asthe latest available data and assumptions about our GHG footprint into account. The Unilever Leadership Executive annuallyevaluates the progress we are making towards reaching our 2030 halving GHG goal by reviewing the latest footprint results and thecross-function low-carbon transition roadmaps. Base year and start year clarification: 2010 was the first year of our reporting (in our2011 Unilever Sustainable Living Plan Report) and is our baseline. We compare our cumulative progress to 2010, as stated in thetarget.

% change anticipated in absolute Scope 1+2 emissions100

% change anticipated in absolute Scope 3 emissions5

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C4.2

(C4.2) Provide details of other key climate-related targets not already reported in question C4.1/a/b.

TargetRenewable electricity consumption

KPI – Metric numeratorPercentage grid electricity used

KPI – Metric denominator (intensity targets only)Per metric ton of production

Base year2015

Start year2016

Target year2020

KPI in baseline year59

KPI in target year100

% achieved in reporting year20

Target StatusUnderway

Please explainUnilever was a founder signatory to the RE100 campaign and has committed to source 100% renewable grid electricity across alloperations by 2020. This is part of a wider target to use 100% renewable across all operations by 2030.

Part of emissions targetAbs1

Is this target part of an overarching initiative?RE100

TargetRenewable energy target including electricity, heat, steam and cooling

KPI – Metric numeratorPercentage renewable energy used


Base year2008

Start year2008

Target year2030

KPI in baseline year15.8

KPI in target year100

% achieved in reporting year25

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Target StatusUnderway

Please explainUnilever’s overall target is to consume 100% renewable energy across all operations by 2030. As an interim target, we aim toconsume 50% renewable energy by 2020. In addition, we will completely remove the use of coal from our energy mix and source100% renewable grid electricity by 2020. These targets form part of our science-based target to reduce scope 1 and 2 GHGemissions 100% by 2030 from a 2015 base year.


Is this target part of an overarching initiative?Science-based targets initiative

TargetEnergy usage

KPI – Metric numeratorGJ energy consumed


Base year2017

Start year2018

Target year2018

KPI in baseline year12.984

KPI in target year1.2205

% achieved in reporting year37.4

Target StatusExpired

Please explainThis target applies to Unilever’s manufacturing sites only, excluding distribution centres, warehouses, offices and data centreswhich comprised 4% of energy usage in 2017. Our Unilever Sustainable Living Plan manufacturing targets are based on CO2emissions. Clearly, energy used in manufacturing is central to achieving this target and we therefore set annual targets each yearto drive reductions in energy used in manufacturing. In 2018, we set a very stretching target of 6% reduction of energy used inmanufacturing per tonne of production. We achieved 2.2% reduction in this intensity measure relative to the previous 12 months.We aim to set stretching targets, with the potential to underperform, rather than set unambitious targets that we are certain to meet.Compared to our baseline year of 2008, energy use per tonne of production in 2018 was 28% lower. Our reporting year runs from1st October 2017 - 30th September 2018, hence start and target dates set as '2018'.


Is this target part of an overarching initiative?Science-based targets initiative

C4.3

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(C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can includethose in the planning and/or implementation phases.Yes

C4.3a

(C4.3a) Identify the total number of initiatives at each stage of development, and for those in the implementation stages, theestimated CO2e savings.

Number of initiatives Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 0 0

To be implemented* 50 7388

Implementation commenced* 303 22584

Implemented* 101 44704

Not to be implemented 147 31541

C4.3b

(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below.

Initiative typeEnergy efficiency: Processes

Description of initiativeCompressed air

Estimated annual CO2e savings (metric tonnes CO2e)1628

ScopeScope 2 (market-based)

Voluntary/MandatoryVoluntary

Annual monetary savings (unit currency – as specified in C0.4)589325

Investment required (unit currency – as specified in C0.4)1493139

Payback period1-3 years

Estimated lifetime of the initiative11-15 years


Initiative typeLow-carbon energy installation

Description of initiativeBiomass


ScopeScope 1

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Description of initiativeCooling technology










Description of initiativeHeat recovery


ScopeScope 1




Payback period

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1-3 years



Initiative typeEnergy efficiency: Building services

Description of initiativeLighting


ScopeScope 2 (location-based)







Initiative typeEnergy efficiency: Building services

Description of initiativeMotors and drives









Initiative type

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Energy efficiency: Processes

Description of initiativeProcess optimization


ScopeScope 1








Description of initiativeSolar PV










Description of initiativeRefrigeration



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Description of initiativeSolar Hot Water


ScopeScope 1








Description of initiativeReuse of steam


ScopeScope 1




Payback period

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1-3 years



C4.3c

(C4.3c) What methods do you use to drive investment in emissions reduction activities?

Method Comment

Dedicatedbudget forenergyefficiency

Unilever allocates capital investment for those projects which contribute most significantly towards our Unilever Sustainable Living Plan targets toreduce CO2 emissions from energy use in manufacturing. To support our manufacturing sustainability strategy, Unilever has identified a global ring-fenced 'Clean Technology' capital fund to resource energy reduction projects (as well as other eco-efficiency and Scope 1 and 2 emissions reductionimprovements) requiring higher level of investment (>€ 0.5 million). This fund is financed through a carbon penalty on CO2 emissions from ourfactories. The selection of projects for investment is managed globally and based on a combination of eco-¬benefit and financial return. Manyemployees have sustainable business ideas and factory teams can apply for investment for their ideas, which are evaluated on the basis ofenvironmental benefit and financial return to ensure only the best projects are selected. In 2018 we invested €32 million in over 350 of the bestenergy and emissions reduction projects globally which will reduce global CO2 emissions by 3.3% (47000 tonnes CO2) and energy use by 2.9%(760000 MWh). This also ensures a quicker delivery of the environmental benefits. Supporting the best ideas identified by our factory teams throughinvestment in individual projects and then rolling them out globally provides strong motivation to generate new ideas. We will therefore continue ourClean Technology investment programme in 2019 and beyond to leverage our global scale.

Dedicatedbudget forotheremissionsreductionactivities

As part of our strategy to achieve 100% of purchased grid electricity from renewable sources by 2020, Unilever is sourcing certified green powerthroughout Europe and North America, plus several countries in South East Asia, Central America, Turkey and South Africa. Our business incurs asmall cost premium for this compared to conventional grid electricity, but the cost is more than offset by cost savings from increased energyefficiency. However, we believe the cost is more than offset by cost savings from increased energy efficiency with the additional benefit of our brandsbeing able to claim they are reducing their carbon footprint.

Internalprice oncarbon

An internal carbon price is applied to carbon emissions generated by the facilities across the Unilever manufacturing network to create the internalclean energy fund. This fund forms part of the group annual capex budget and is used to invest in renewable energy projects. In previous years, wealso added a shadow price to all new capital investment decisions over €1 million. However, in practice it made little difference to the overallinvestment because we are fundamentally not a carbon or energy intensive industry. We have therefore chosen to focus our attention on the internalclean energy fund going forward.

Employeeengagement

Everyone in our manufacturing organization is encouraged to share their successes in implementing reduction projects. Through our globalManufacturing Sustainability intranet site, project teams summarise their achievements in ‘Proud Practices’, which are then shared with all other sites.We now have over 170 ‘Proud Practices’ to share. This acts as a spur for other manufacturing sites to repeat the project in their own factory andachieve rapid global roll out of eco efficiency projects.

C-AC4.4/C-FB4.4/C-PF4.4

(C-AC4.4/C-FB4.4/C-PF4.4) Do you implement management practices on your own land with a climate change mitigationand/or adaption benefit?Yes

C-AC4.4a/C-FB4.4a/C-PF4.4a

(C-AC4.4a/C-FB4.4a/C-PF4.4a) Specify the agricultural or forest management practice(s) implemented on your own land withclimate change mitigation and/or adaptation benefits and provide a corresponding emissions figure, if known.

Management practice reference numberMP1

Management practiceBiodiversity considerations

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. These comply with the Rainforest Alliance certification standard, which

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require such/similar practices on biodiversity conservation including: ensuring that high value conservation areas are not destroyed;ensuring that farms conserve all natural ecosystems and have not destroyed forest or other natural ecosystems; and ensuring thatproduction activities do not degrade any protected area. The standard is available here: https://www.rainforest-alliance.org/business/sas/resource-item/rainforest-alliance-sustainable-agriculture-standard/ There is research currently underwayto quantify this for crops grown against Unilever's SAC standard however, we cannot report figures for the 2017/2018 reportingperiod at this time. There is research currently underway to quantify this for crops grown against Unilever's SAC standard however,we cannot report figures for the 2017/2018 reporting period at this time.

Primary climate change-related benefitIncrease carbon sink (mitigation)

Estimated CO2e savings (metric tons CO2e)0

Please explainAs there is research currently underway to quantify this for crops grown against Unilever's Sustainable Agriculture Code (SAC)standard, we cannot report figures for the 2017/2018 reporting period at this time.


Management practiceCrop diversity

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. We ensure that we grow different varieties of tea and do not exceed 10% ofcropped area with any one variety. We maximise genetic distances between the varieties through breeding.

Primary climate change-related benefitIncreasing resilience to climate change (adaptation)


Please explainThis management practice is about improving crop resilience and is not intended to directly reduce CO2e emissions.


Management practiceContour farming

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. These comply with the Rainforest Alliance certification standard, whichrequire such/similar practices on preventing soil erosion. The standard is available here: https://www.rainforest-alliance.org/business/sas/resource-item/rainforest-alliance-sustainable-agriculture-standard/

Primary climate change-related benefitOther, please specify (Soil, nutrients & moisture conservation)


Please explainThis management practice is about improving crop resilience to soil erosion and is not intended to directly reduce CO2e emissions.


Management practiceDiversifying farmer income

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. These comply with the Rainforest Alliance certification standard, whichrequire such/similar practices. The standard is available here: https://www.rainforest-alliance.org/business/sas/resource-item/rainforest-alliance-sustainable-agriculture-standard/ Between 2006 and 2016 we worked with the Kenya Tea DevelopmentAgency (KTDA) and the NGO IDH, to provide education and training through Farmer Field Schools. The programme enabled

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86,000 lead farmers to access initiatives aiming to improve their agricultural practices. It helped over 580,000 farms achieve thecertification standards set by the Rainforest Alliance – establishing a solid foundation for tea growing in Kenya which continues tobe run by KTDA.



Please explainThis management practice is about farmer livelihoods and is not intended to directly reduce CO2e emissions.


Management practiceEfficient equipment use

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. These comply with the Rainforest Alliance certification standard, whichrequire such/similar practices. The standard is available here: https://www.rainforest-alliance.org/business/sas/resource-item/rainforest-alliance-sustainable-agriculture-standard/

Primary climate change-related benefitEmission reductions (mitigation)


Please explainWe do not currently measure emission reduction from efficient equipment use.


Management practiceEquipment maintenance and calibration

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. These comply with the Rainforest Alliance certification standard, whichrequire such/ similar practices. The standard is available here: https://www.rainforest-alliance.org/business/sas/resource-item/rainforest-alliance-sustainable-agriculture-standard/ Moreover, the plantation’s own preventative maintenance programmemanages this aspect.



Please explainWe do not currently measure emission reduction from equipment maintenance and calibration.


Management practiceEnhanced forest regeneration practices

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. These comply with the Rainforest Alliance certification standard, whichrequire such/ similar practices. The standard is available here: https://www.rainforest-alliance.org/business/sas/resource-item/rainforest-alliance-sustainable-agriculture-standard/ Moreover, in Kenya, Unilever has collaborated with IDH on their Initiativefor Sustainable Landscapes (ISLA) programme, which aims to restore and conserve 60,000 ha of the South West Mau Forest by2030.

Primary climate change-related benefit

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Increase carbon sink (mitigation)


Please explainWe do not currently measure emission reduction from enhanced forest regeneration practices.


Management practiceFertilizer management

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. These comply with the Rainforest Alliance certification standard, whichrequire such/similar practices. The standard is available here: https://www.rainforest-alliance.org/business/sas/resource-item/rainforest-alliance-sustainable-agriculture-standard/ Moreover, the plantation’s own nutrient use efficiency monitoring programmanages this aspect.

Primary climate change-related benefitReduced demand for fertilizers (adaptation)


Please explainWe do not currently measure emission reduction from fertiliser management .


Management practiceFire control

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. This aspect is covered by a safety, health and environmental framework.



Please explainWe do not currently measure emission reduction from fire control.


Management practiceIntegrated pest management

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. These comply with the Rainforest Alliance certification standard, whichrequire such/similar practices. The standard is available here: https://www.rainforest-alliance.org/business/sas/resource-item/rainforest-alliance-sustainable-agriculture-standard/



Please explainThis management practice is about climate adaptation and is not intended to directly reduce CO2e emissions.

Management practice reference number

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MP11

Management practiceKnowledge sharing

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. Training in good agricultural practices is provided to contract farmers(outgrowers) and staff at plantations.



Please explainThis management practice is about climate resilience and is not intended to directly reduce CO2e emissions.


Management practiceLow carbon energy use

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. Renewable energy infrastructure has been established at plantations, in theform of solar and hydroelectric schemes, as well as biomass conversion for boilers.



Please explainWe do not currently measure emission reduction from low carbon energy use at these sites.


Management practiceOrganic farming

Description of management practiceAn area of 389 hectares of Kenyan tea plantation has been converted from conventional to organic tea production.





Management practicePractices to increase wood production and forest productivity

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. These comply with the Rainforest Alliance certification standard, whichrequire such/ similar practices. The standard is available here: https://www.rainforest-alliance.org/business/sas/resource-item/rainforest-alliance-sustainable-agriculture-standard/


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Please explainWe do not currently measure emission reduction from practices to increase wood production and forest productivity .


Management practicePermanent soil cover (including cover crops)

Description of management practiceUnilever owns tea plantations in Kenya and Tanzania. The harvesting of tea only involves picking leaves rather than extraction ofthe plant and exposure of soil. As such, soil cover is guaranteed.



Please explainWe do not currently measure emission reduction from permanent soil cover .


Management practicePest, disease and weed management practices


Primary climate change-related benefitReduced demand for pesticides (adaptation)




Management practiceReducing energy use




Please explainWe do not currently measure emission reductions from cuts in energy use at these sites.


Management practice

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Reforestation

Description of management practiceUnilever tea plantations in Kenya comply with the Rainforest Alliance certification standard, which require such/similar practices. Areforestation programme is in place and participatory forest conservation and reforestation being done with partners - community,the Sustainable Trade Initiative (IDH) Initiative for Sustainable Landscapes (ISLA) and the Kenya Forest Service.



Please explainWe do not currently measure emission reduction from reforestation.


Management practiceReplacing fossil fuels by renewable energy sources




Please explainWe do not currently measure emission reduction from renewable energy sources in Kenya and Tanzania.


Management practiceLand use change





C4.5

(C4.5) Do you classify any of your existing goods and/or services as low-carbon products or do they enable a third party toavoid GHG emissions?Yes

C4.5a

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(C4.5a) Provide details of your products and/or services that you classify as low-carbon products or that enable a third partyto avoid GHG emissions.

Level of aggregationGroup of products

Description of product/Group of productsClimate-friendly ice cream cabinet freezers Climate friendly freezers are ice cream cabinet freezers used for out of home ice creampurchases by our retail customers, which have lower energy use and lower emissions than previous versions. We have a range ofcabinets in the market and have worked to reduce the energy consumption of the freezer cabinets we purchase, thus the averageenergy consumption of the cabinet fleet. The climate-friendly hydrocarbon (HC) refrigerants we use in our freezers have anegligible global warming potential compared to previously used hydrofluorocarbons (HFCs). By the end of 2018, we hadpurchased around 2.9 million freezers using natural refrigerants. We continue to roll out climate-friendly HC freezers to ourcustomers and to make our freezers more energy efficient.

Are these low-carbon product(s) or do they enable avoided emissions?Avoided emissions

Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissionsOther, please specify (Please see details in comment box)

Other: Unilever internal database of global cabinet purchases: countries, type of cabinets, age of cabinets. Based on this data, wecan calculate annual energy consumption, GHG emissions and energy savings for our customers. Assumptions from our carbonreporting - Total number of cabinets within fleet uses same assumptions as Unilever carbon reporting, based on our cabinetpurchasing database and model assumptions on replacement of older cabinets. Assumptions from external sources - Theelectricity cost is based on published electricity tariff data from the World Bank, March 2017 and assumes relevance of this sourcefor electricity purchased by our wide range of global customers - Cost calculation is based on 245 days annual operation only(March to October), assumption based on the seasonality of most Ice cream markets

% revenue from low carbon product(s) in the reporting year0

CommentThis group of products is aimed at enabling third parties to reduce their emission which is why we have reported revenue as 0. In2018, the freezers we purchased consumed on average 50% less electricity per freezer than those purchased in 2008, saving ourcustomers money as well as reducing their GHG emissions. We estimate that €111 million in electricity costs (equivalent to 0.21%of Unilever’s 2018 turnover – not direct revenue for Unilever) were avoided by our customers in 2018 (versus our 2010 baseline ofenergy). Methodology to calculate: Unilever internal database of global cabinet purchases: countries, type of cabinets, age ofcabinets. Based on this data, we can calculate annual energy consumption, GHG emissions and energy savings for our customers.Assumptions from our carbon reporting - Total number of cabinets within fleet uses same assumptions as Unilever carbonreporting, based on our cabinet purchasing database and model assumptions on replacement of older cabinets. Assumptions fromexternal sources - The electricity cost is based on published electricity tariff data from the World Bank, March 2017 and assumesrelevance of this source for electricity purchased by our wide range of global customers - Cost calculation is based on 245 daysannual operation only (March to October), assumption based on the seasonality of most Ice cream markets

C5. Emissions methodology

C5.1

CDP Page of 12248

(C5.1) Provide your base year and base year emissions (Scopes 1 and 2).

Scope 1

Base year startJanuary 1 2008

Base year endDecember 31 2008

Base year emissions (metric tons CO2e)1167662

CommentNone

Scope 2 (location-based)




CommentNone

Scope 2 (market-based)




CommentNone

C5.2

(C5.2) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate Scope1 and Scope 2 emissions.The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)

C6. Emissions data

C6.1

CDP Page of 12249

(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO2e?

Reporting year

Gross global Scope 1 emissions (metric tons CO2e)752804

Start dateOctober 1 2017

End dateSeptember 30 2018


C6.2

(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.

Row 1

Scope 2, location-basedWe are reporting a Scope 2, location-based figure

Scope 2, market-basedWe are reporting a Scope 2, market-based figure

CommentIn calculation of Scope 2, market-based emissions and grid average emissions factors, as published by IEA, have been used wherewe do not have contractual instruments or specific contracts for reduced emission factor electricity purchases. We have not foundit possible to obtain supplier-specific emission factors or residual mix data for markets where the GHG Protocol Scope 2 guidancesuggests that they should be applied. For Unilever, this is primarily countries outside Europe and North America. We intend to applysupplier-specific emissions factors in subsequent years as soon as they become available.

C6.3

(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons CO2e?

Reporting year

Scope 2, location-based1430659

Scope 2, market-based (if applicable)826076

Start dateOctober 1 2017

End dateSeptember 30 2018


C6.4

(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissionsthat are within your selected reporting boundary which are not included in your disclosure?Yes

CDP Page of 12250

C6.4a

(C6.4a) Provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundarywhich are not included in your disclosure.

SourceSmall non-manufacturing sites such as offices, R&D facilities and data centres

Relevance of Scope 1 emissions from this sourceEmissions are not relevant

Relevance of location-based Scope 2 emissions from this sourceEmissions are not relevant

Relevance of market-based Scope 2 emissions from this source (if applicable)Emissions are not relevant

Explain why this source is excludedEnergy consumption data (used to calculate Scope 1 and Scope 2 emissions) is currently captured for larger non-manufacturingsites (1000+sqft in Unilever's Environmental Performance Reporting system. Data is not captured for smaller sites. We haveestimated that emissions from these omitted sites represent below 2% of reported combined Total Scope 1 emissions and Scope 2emissions and are therefore not considered to be material within Unilever’s total emissions.

SourceSmall non-manufacturing sites such as offices, R&D facilities and data centres

Relevance of Scope 1 emissions from this sourceEmissions are not relevant

Relevance of location-based Scope 2 emissions from this sourceEmissions are not relevant

Relevance of market-based Scope 2 emissions from this source (if applicable)Emissions are not relevant

Explain why this source is excludedEnergy consumption data (used to calculate Scope 1 and Scope 2 emissions) is currently captured for larger non-manufacturingsites (1000+sqft in Unilever's Environmental Performance Reporting system. Data is not captured for smaller sites. We haveestimated that emissions from these omitted sites represent below 2% of reported combined Total Scope 1 emissions and Scope 2emissions and are therefore not considered to be relevant within Unilever’s total emissions.

C6.5

(C6.5) Account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions.

CDP Page of 12251

Purchased goods and services

Evaluation statusNot relevant, calculated

Metric tonnes CO2e14975897

Emissions calculation methodologyWe measure the full GHG footprint of our product portfolio and annual sales using an LCA method compliant with the ISO 14040standard. We use a combination of external Life Cycle Inventory databases (secondary data) and supplier specific data (primarydata e.g. for surfactants, perfumes and some of food ingredients) to measure the GHG emissions of purchased ingredients andpackaging materials used in the production of our products.. We measure approximately 3000 products across 14 countries – thisrepresents approximately 70% of our annual sales volume.

Percentage of emissions calculated using data obtained from suppliers or value chain partners25

ExplanationAccording to our analysis, GHG emissions from raw materials (including ingredients, primary and secondary packaging andinbound transport) accounts for 27% of our total GHG footprint - the second largest source of GHG emissions for Unilever. Thereare also significant risks associated climate change in our supply chain. For example. we conducted a 2 and 4 degree climatescenario study which found that some of the biggest risks for Unilever by 2030 were associated with the increased costs of rawmaterials from carbon pricing and supply constraints due to water stress and severe weather. Unilever is significant buyer of goodsand services – especially agricultural raw materials – and is therefore well placed to exert influence on the supply chain to reducecarbon emissions over the long-term and manage climate risks in the short term, for example by mandating compliance with ourSustainable Agriculture Code 2.0 which addresses a range of climate related issues such as deforestation, soil management, watermanagement and energy management.

Capital goods

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e<Not Applicable>

Emissions calculation methodology<Not Applicable>

Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>

ExplanationGiven the nature of our business, we do not include the embedded emissions associated with capital goods. Our capital assets(factories and equipment) have long lifespans (>10 years) and their relative footprint is small (<1%) compared to the footprint of thevolume of products they produce over their lifetime. This has been confirmed in Life Cycle Analysis studies (e.g. EU PEF studies).

CDP Page of 12252

Fuel-and-energy-related activities (not included in Scope 1 or 2)

Evaluation statusRelevant, calculated


Emissions calculation methodologyCO2e factors are based on 2018 Guidelines to Defra / DECC's GHG Conversion Factors for Company Reporting. Calculated fromimported energy usage by energy type as reported in our web-based Environmental Performance Reporting (EPR) system for allUnilever owned manufacturing sites globally, plus warehouses, distribution centres, offices and data centres within our scope ofreporting. • CO2e factors for fuels represent indirect emissions associated with the extraction and transport of primary fuels as wellas the refining, distribution, storage and retail of finished fuels. • CO2e factors for imported energy for each country reflect indirectemissions of CO2, CH4 and N2O associated with the extraction and transport of primary fuels as well as the refining, distribution,storage and retail of finished fuels used in the generation of electricity and heat.


ExplanationFuel and energy use emissions not included in scope 1 or 2 are reported in the relevant scope 3 emissions section.

Upstream transportation and distribution



Emissions calculation methodologyIn order to calculate emissions in this category, Unilever used ISO 14040 series of Life Cycle Analysis standards. We use life cycleinventory data for processes/activities using sources such as Ecoinvent, IEA energy data and internal data on habits andspecifications. The studies are performed/ modelled in GaBi software. All of the data is based on secondary data. The results areobtained from Unilever’s annual GHG footprint analysis.


ExplanationUpstream transportation represents a small proportion (1%) of Unilever's full product life cycle-based GHG footprint.

Waste generated in operations



Emissions calculation methodologyIn order to calculate emissions in this category, Unilever used CO2e factors based on 2018 Guidelines to Defra / DECC's GHGConversion Factors for Company Reporting. The data was calculated from volume of hazardous and non-hazardous wastedisposed to landfill and recycled/recovered materials from manufacturing operations, considering the Scope 1 and 2 emissions ofwaste management suppliers that occur during disposal or treatment of the respective waste disposal route.


ExplanationNo comment necessary

CDP Page of 12253

Business travel



Emissions calculation methodologyThe data was calculated using primary data from travel agents and the Defra 2015 methodology for conversions.


ExplanationUnilever has conducted estimates of emissions associated with this category in the past and these have indicated them to be small(est.1%) compared to size of our product footprint.

Employee commuting





ExplanationUnilever has conducted estimates of emissions associated with this category in the past and these have indicated them to be small(est.<1%) compared to size of our product footprint.

Upstream leased assets





ExplanationAs a manufacturer of fast moving consumer goods we have very limited or no upstream leased assets. We are a purchaser of rawmaterials and the emissions in our upstream value chain are accounted for in our scope 3 (suppliers) footprint.

CDP Page of 12254

Downstream transportation and distribution



Emissions calculation methodologyIn order to calculate emissions in this category, Unilever uses the ISO 14040 series of LCA standards. We use life cycle inventorydata for processes/activities using sources such as Ecoinvent, IEA energy data and internal data on habits and specifications. Thestudies are performed/modelled in GaBi software. Downstream distribution is calculated using average distances and modes oftransport derived from data collected from our distribution network and logistic providers. GHG emissions reported coversapproximately 70% of sales..


ExplanationAccording to our analysis, GHG emissions from downstream transportation and distribution (including distribution and retail)accounts for 8% of our total GHG footprint - the third largest source of GHG emissions for Unilever.. There are also significant risksassociated climate change in our downstream transportation and distribution chain. Our logistics network transports our finishedgoods over 1.5 billion kilometres each year from our factories to where they are sold. The transport sector is still heavily reliant onfossil fuels which means that as our business grows, our CO2 emissions from transport are also at risk of increasing – impacting thecost of transportation as a result of carbon taxes. We can take direct action on these emissions. Since 2010, we’ve achieved a 38%reduction improvement in our CO2 efficiency through reducing the overall number of kilometres travelled, avoiding wasted journeysand switching to greener transport options. We also work with retailers to introduce more energy efficient ice cream freezercabinets - we’ve purchased over 2.9 million with lower carbon emissions

Processing of sold products





ExplanationUnilever sells finished products that do not require further processing. Emissions associated with the use of our products by ourconsumers are included in the section – use of sold products.

CDP Page of 12255

Use of sold products



Emissions calculation methodologyWe measure the full GHG footprint of our product portfolio and annual sales using an LCA method compliant with the ISO 14040standard. We measure the consumer use phase using a combination of primary habits data and on pack recommendations of usecombined with life cycle inventory data. We measure approximately 3000 products across 14 countries – this represents around70% of our annual sales volume.


ExplanationAccording to our analysis, GHG emissions from product use accounts for 65% of our total GHG footprint - by far the largest sourceof GHG emissions for Unilever. There are also significant risks associated with climate change which can affect product use e.g.water scarcity impacting the use of products which rely on water (such as laundry detergents and shampoos), Higher energy costscan also affect demand for personal and household care products due to the impact on disposable incomes Taking action to reduceGHG from product use through energy-efficient (e.g low/no hot water use) innovations or improving our packaging is a significantgrowth opportunity. Our Divisions (which manage over 400 brands and thousands of products) response to climate change hasbeen guided by a review of the areas where we can have the biggest impact on mitigating climate risk or benefiting from climateopportunity.

End of life treatment of sold products



Emissions calculation methodologyIn order to calculate emissions in this category, Unilever used ISO 14040 series of LCA standards. We use life cycle inventory datafor processes/activities using sources such as Ecoinvent, IEA energy data and internal data on habits and specifications. Thestudies are performed/modelled in GaBi software. All data in this category is based on secondary data.


ExplanationNo comment necessary

Downstream leased assets





ExplanationThe distribution and sale of our products involves various business partners (logistics and retail) as opposed to leased assets.Emissions from downstream activities associated with our products are reported in the downstream transportation and distributionssection.

CDP Page of 12256

Franchises





ExplanationGiven the nature of our business, we do not own any franchises.

Investments





ExplanationNot applicable for a business that sells fast moving consumer goods.

Other (upstream)





ExplanationNot relevant. Data included in other scope 3 emissions categories.

Other (downstream)





ExplanationNot relevant. Data included in other scope 3 emission categories.

C-AC6.6/C-FB6.6/C-PF6.6

CDP Page of 12257

(C-AC6.6/C-FB6.6/C-PF6.6) Can you break down your Scope 3 emissions by relevant business activity area?Yes


(C-AC6.6a/C-FB6.6a/C-PF6.6a) Disclose your Scope 3 emissions for each of your relevant business activity areas.

ActivityAgriculture/Forestry

Scope 3 categoryPurchased goods and services

Emissions (metric tons CO2e)16539559

Please explainWe measure the full GHG footprint of our product portfolio and annual sales using an LCA method compliant with the ISO 14040standard. We use a combination of external Life Cycle Inventory databases (secondary data) and supplier specific data (primarydata e.g. for surfactants, perfumes and some of food ingredients) to measure the GHG emissions of purchased ingredients andpackaging materials used in the production of our products. We measure approximately 3000 products across 14 countries – thisrepresents approximately 70% of our annual sales volume. According to our analysis, GHG emissions from raw materials(including ingredients, primary and secondary packaging and inbound transport) accounts for 27% of our total GHG footprint - thesecond largest source of GHG emissions for Unilever. There are also significant risks associated climate change in our supplychain. For example. we conducted a 2 and 4 degree climate scenario study which found that some of the biggest risks for Unileverby 2030 were associated with the increased costs of raw materials from carbon pricing and supply constraints due to water stressand severe weather. Unilever is significant buyer of goods and services – especially agricultural raw materials – and is thereforewell placed to exert influence on the supply chain to reduce carbon emissions over the long-term and manage climate risks in theshort term, for example by mandating compliance with our Sustainable Agriculture Code 2.0 which addresses a range of climaterelated issues such as deforestation, soil management, water management and We measure the full GHG footprint of our productportfolio and annual sales using an LCA method compliant with the ISO 14040 standard. We measure the consumer use phaseusing a combination of primary habits data and on pack recommendations of use combined with life cycle inventory data. Wemeasure approximately 3000 products across 14 countries – this represents around 70% of our annual sales volume.

ActivityConsumption

Scope 3 categoryUse of sold products


Please explainAccording to our analysis, GHG emissions from product use accounts for 63% of our total GHG footprint - by far the largest sourceof GHG emissions for Unilever. There are also significant risks associated with climate change which can affect product use e.g.water scarcity impacting the use of products which rely on water (such as laundry detergents and shampoos). Higher energy costscan also affect demand for personal and household care products due to the impact on disposable incomes. We’re taking action toreduce GHG from product use through energy-efficient (e.g low/no hot water use) innovations and improving our packaging, whichis a significant growth opportunity. Our Divisions (which manage over 400 brands and thousands of products) response to climatechange has been guided by a review of the areas where we can have the biggest impact on mitigating climate risk or benefitingfrom climate opportunity.

C6.7

(C6.7) Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?Yes

CDP Page of 12258

C6.7a

(C6.7a) Provide the emissions from biologically sequestered carbon relevant to your organization in metric tons CO2.

Row 1

Emissions from biologically sequestered carbon (metric tons CO2)312142

CommentThis in direct relation to CO2 emissions from biogenic fuel combustion.

C-AC6.8/C-FB6.8/C-PF6.8

(C-AC6.8/C-FB6.8/C-PF6.8) Is biogenic carbon pertaining to your direct operations relevant to your current CDP climatechange disclosure?Yes


(C-AC6.8a/C-FB6.8a/C-PF6.8a) Account for biogenic carbon data pertaining to your direct operations and identify anyexclusions.

CO2 emissions from land use management

Emissions (metric tons CO2)0

MethodologyOther, please specify (CO2 emissions are managed but not measured and reported separately)

Please explainWe apply best management practices to minimise CO2 emissions on our plantations as required under the certification schemesbut this does not involve estimation and reporting of CO2 emissions.

CO2 removals from land use management


MethodologyOther, please specify (CO2 emissions are managed but not measured and reported separately)

Please explainWe apply best management practices to manage CO2 emissions/sequestration on our plantations as required under thecertification schemes but this does not involve estimation and reporting of CO2 removals.

Sequestration during land use change


MethodologyOther, please specify (Not applicable)

Please explainWe have long-established plantations with no relevant/recent land use change.

CDP Page of 12259

CO2 emissions from biofuel combustion (land machinery)


MethodologyOther, please specify (Aggregated and not reported separately)

Please explainCO2 emissions from biofuels in non-Unilever owned operations are reported, if applicable, in our aggregated scope 3 product lifecycle emissions that are reported on the basis of sales in 14 countries representing approx 70% of our total sales volume.

CO2 emissions from biofuel combustion (processing/manufacturing machinery)


MethodologyDefault emissions factors

Please explainThese emissions relate to biogenic fuels such as biomass, wood/wood waste, liquid biofuels, fuel crops and biogas used as fuelswithin our manufacturing operations.

CO2 emissions from biofuel combustion (other)


MethodologyOther, please specify (Aggregated and not reported separately)

Please explainCO2 emissions from biofuels in non-Unilever owned operations are reported, if applicable, in our aggregated scope 3 product lifecycle emissions that are reported on the basis of sales in 14 countries representing approx 70% of our total sales volume.

C-AC6.9/C-FB6.9/C-PF6.9

CDP Page of 12260

(C-AC6.9/C-FB6.9/C-PF6.9) Do you collect or calculate greenhouse gas emissions for each commodity reported assignificant to your business in C-AC0.7/FB0.7/PF0.7?

Agricultural commoditiesPalm Oil

Do you collect or calculate GHG emissions for this commodity?No

Please explainOur GHG emissions for soy includes processing and soy derivatives. The figures provided are derived from our annual productfootprint data which covers approximately 60-70% of sales volume (extrapolated to total sales) and is not calculated volume and isnot from purchasing volumes. The numbers are calculated using an internationally agreed approach - using a life cycle assessmentmethod compliant with the ISO 14040 standard. We measure approximately 3000 products across 14 countries.

Agricultural commoditiesSoy

Do you collect or calculate GHG emissions for this commodity?Yes

Please explainOur GHG emissions for soy includes processing and soy derivatives. The figures provided are derived from our annual productfootprint data which covers approximately 60-70% of sales volume (extrapolated to total sales) and is not calculated volume and isnot from purchasing volumes. The numbers are calculated using an internationally agreed approach - using a life cycle assessmentmethod compliant with the ISO 14040 standard. We measure approximately 3000 products across 14 countries.

Agricultural commoditiesTimber

Do you collect or calculate GHG emissions for this commodity?Yes

Please explainWe do not have data in an easy extractable format for paper and board.


CDP Page of 12261

(C-AC6.9a/C-FB6.9a/C-PF6.9a) Report your greenhouse gas emissions figure(s) for your disclosing commodity(ies), explainyour methodology, and include any exclusions.

Palm Oil

Reporting emissions byTotal


Denominator: unit of production<Not Applicable>

Change from last reporting yearLower

Please explainOur GHG emissions for palm oil includes processing. The figures provided are derived from our annual product footprint data whichcovers approximately 60-70% of sales volume volume (extrapolated to total sales) and is not calculated and is not from purchasingvolumes. The numbers are calculated using an internationally agreed approach - using a life cycle assessment method compliantwith the ISO 14040 standard. We measure the consumer use phase using a combination of primary habits data and on packrecommendations of use combined with life cycle inventory data. We measure approximately 3000 products across 14 countries.

Soy




Change from last reporting yearLower

Please explainOur GHG emissions for palm oil includes processing. The figures provided are derived from our annual product footprint data whichcovers approximately 70% of sales volume volume (extrapolated to total sales) and is not calculated and is not fromfrom purchasingvolumes. The numbers are calculated using an internationally agreed approach - using a life cycle assessment method compliantwith the ISO 14040 standard. We measure the consumer use phase using a combination of primary habits data and on packrecommendations of use combined with life cycle inventory data. We measure approximately 3000 products across 14 countries.

Timber




Change from last reporting yearAbout the same

Please explainWe do not have data in an easy extractable format for paper and board in order to add the emissions figure. Therefore, we have put0.

C6.10

CDP Page of 12262

(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tons CO2e per unitcurrency total revenue and provide any additional intensity metrics that are appropriate to your business operations.

Intensity figure0.0000309694

Metric numerator (Gross global combined Scope 1 and 2 emissions)1578880

Metric denominatorunit total revenue

Metric denominator: Unit total50982000000

Scope 2 figure usedMarket-based

% change from previous year1.8

Direction of changeDecreased

Reason for changeThe combined effect of a reduction in energy use per tonne of production including emissions reduction activities: (1) improvedmachine efficiencies (7% of total); (2) the introduction of newer technologies through capital investment (14%); (3) an increase inthe use of renewable fuels (27%); (4) better recycling of waste heat for preheating etc (52%). This reduction in emissions intensity isconsistent with Unilever's overall strategy to become carbon positive by 2030. The change in this intensity measure between 2017and 2018 is presented on a like-for-like basis.

Intensity figure0.0773555873

Metric numerator (Gross global combined Scope 1 and 2 emissions)1578880

Metric denominatormetric ton of product

Metric denominator: Unit total20410678

Scope 2 figure usedMarket-based



Reason for changeIn November 2015 we announced our Carbon Positive target to reduce scope 1+2 emissions to zero by 2030, to be achieved byuse of 100% renewable energy in our operations. In 2018, we achieved an annual total emissions reduction of 6.7% per metrictonne compared to our annual target of 6%, with scope 1 and scope 2 decreasing by 5.5% and 7.8% respectively. We achieved thisthrough emissions reduction projects including: (1) improved machine efficiencies (7% of total); (2) the introduction of newertechnologies through capital investment (14%); (3) an increase in the use of renewable fuels (27%); (4) better recycling of wasteheat for preheating etc (52%). This reduction in emissions intensity is consistent with Unilever's overall strategy to become carbonpositive by 2030. The change in this intensity measure between 2017 and 2018 is presented on a like-for-like basis.

C7. Emissions breakdowns

CDP Page of 12263

C7.1

(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas type?Yes

C7.1a

(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas type and provide the source of each usedgreenhouse warming potential (GWP).

Greenhouse gas Scope 1 emissions (metric tons of CO2e) GWP Reference

CO2 728241 IPCC Fifth Assessment Report (AR5 – 100 year)

HFCs 24563 IPCC Fifth Assessment Report (AR5 – 100 year)

C7.2

(C7.2) Break down your total gross global Scope 1 emissions by country/region.

Country/Region Scope 1 emissions (metric tons CO2e)

Algeria 2452.6

Argentina 27963.5

Australia 6116.5

Bangladesh 16323.7

Belgium 678.5

Bolivia (Plurinational State of) 2279.6

Brazil 63758.4

Canada 10565.1

Chile 9745.5

China 6439.8

Colombia 8656.2

Costa Rica 3397.9

Cote d’Ivoire 4443.8

Cyprus 175.7

Czechia 0

Denmark 0

Dominican Republic 405.4

Ecuador 7553.5

Egypt 7517.6

El Salvador 6426.7

France 14327.7

Germany 24302.7

Ghana 11427.4

Greece 5871.9

Honduras 4926.7

Hungary 6232.3

India 66997.4

Indonesia 35634.3

Iran, Islamic Republic of 321.6

Ireland 24.4

Israel 15540.7

CDP Page of 12264

Italy 21369.6

Japan 26

Kenya 7523.6

Lithuania 720.1

Malaysia 0

Mexico 12417.4

Morocco 2889.4

Myanmar 15417.6

Nepal 933.3

Netherlands 15039.8

Niger 29.4

Nigeria 17150.6

Pakistan 8891.1

Peru 0

Philippines 7252.5

Poland 4179.1

Portugal 14418.8

Romania 4533.8

Russian Federation 18496.6

Saudi Arabia 2850.4

South Africa 36984.6

Spain 14370.7

Sri Lanka 1934.9

Sweden 0

Switzerland 1728.9

Taiwan, Greater China 636.7

United Republic of Tanzania 244

Thailand 13818.7

Trinidad and Tobago 234.9

Tunisia 966.1

Turkey 26911.4

Ukraine 84.4

United Arab Emirates 817.7

United Kingdom of Great Britain and Northern Ireland 55765.9

Uruguay 5.5

United States of America 71735.7

Venezuela (Bolivarian Republic of) 1110

Viet Nam 760.8

Zimbabwe 45.2

Austria 0

Ethiopia 0

Finland 0

Guatemala 0

Nicaragua 0

Panama 0

Singapore 1.7

Slovakia 0

Paraguay 0

Country/Region Scope 1 emissions (metric tons CO2e)

C7.3

CDP Page of 12265

(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able to provide.By business division

C7.3a

(C7.3a) Break down your total gross global Scope 1 emissions by business division.

Business division Scope 1 emissions (metric ton CO2e)

Africa 77848.6

Europe 183739.71

Latin America 148881.22

NAMET & RUB 78848.63

North America 82300.79

North Asia 7102.55

SEAA 79002.06

South Asia 95080.44

C-AC7.4/C-FB7.4/C-PF7.4

(C-AC7.4/C-FB7.4/C-PF7.4) Do you include emissions pertaining to your business activity(ies) in your direct operations aspart of your global gross Scope 1 figure?Yes


(C-AC7.4a/C-FB7.4a/C-PF7.4a) Select the form(s) in which you are reporting your agricultural/forestry emissions.Total emissions

C-AC7.4b/C-FB7.4b/C-PF7.4b

(C-AC7.4b/C-FB7.4b/C-PF7.4b) Report the Scope 1 emissions pertaining to your business activity(ies) and explain anyexclusions. If applicable, disaggregate your agricultural/forestry by GHG emissions category.

ActivityProcessing/Manufacturing

Emissions category<Not Applicable>


MethodologyDefault emissions factor

Please explainWe're reporting our total scope 1, as a high proportion of our raw materials across all product categories are derived fromagriculture and therefore almost all of our products contain an agriculture-derived ingredient. Method of calculation/tools: Data iscollected for all manufacturing/processing activities at the site level. This is aggregated and The Greenhouse Gas Protocol: ACorporate Accounting and Reporting Standard (Revised Edition) is used to calculate our total. Exclusions: none. This figurerepresents all of our manufacturing/processing activities. We do not have any scope 1 emissions associated withagriculture/forestry or distribution as these are classified under scope 3 for our business.

CDP Page of 12266

C7.5

(C7.5) Break down your total gross global Scope 2 emissions by country/region.

Country/Region Scope 2, location-based (metric tonsCO2e)

Scope 2, market-based (metric tonsCO2e)

Purchased and consumedelectricity, heat, steam orcooling (MWh)

Purchased and consumed low-carbon electricity, heat,steam or cooling accounted in market-based approach(MWh)

Algeria 1579.2 1579.2 3002.3 0

Argentina 26968.5 26968.8 69740.8 0

Australia 29385.9 29386 39212.6 0

Bangladesh 703 703 1230.4 0

Belgium 1117.1 0 5059.3 5059.3

Bolivia (PlurinationalState of)

830.4 830.4 2077.3 0

Brazil 31737.2 225 219078 217647.6

Canada 0 0 35468.4 35468.4

Chile 10380.7 2488.6 25380.3 18377.2

China 71245.9 45439.5 126050.2 44331.2

Colombia 4960.1 4960.2 23930.2 0

Costa Rica 136.7 5.3 5666.2 5460.2

Cote d’Ivoire 3489.5 3489.5 7928.5 0

Cyprus 290.4 0 446.1 446.1

Czechia 132.7 0 256.7 256.7

Denmark 321.3 47 2566.6 2321.1

Dominican Republic 1369 1369 3041 0

Ecuador 6539.5 6539.6 19239.2 0

Egypt 10377.1 10377.1 22551.2 0

El Salvador 1908.3 153.2 6947.4 6340.7

France 4475.2 737 99182.7 82825.1

Germany 76068.7 19577.1 265497.3 212134.2

Ghana 1693.6 1693.6 6141.4 0

Greece 8763.8 225.3 14449.3 14076.6

Honduras 2550.9 35.5 6359.9 6271.1

Hungary 8785.6 0 31890 31890

India 199878 182743.2 264638.3 11716.7

Indonesia 145066.9 145067.1 356526.6 59744.1

Iran, Islamic Republic of 1272.4 1272.4 2291.6 0

Ireland 121.6 0 290.4 290.4

Israel 27646.7 27646.6 44759.9 0

Italy 30673.4 25011.1 145022 16653

Japan 2546.3 0 4680.4 4680.4

Kenya 2502.2 2502.2 19534 0

Lithuania 1035.9 0 5584 5584

Malaysia 383 383 561.8 0

Mexico 36581.8 4372.9 79699.5 70173.4

Morocco 2832.4 2832.5 4027 0

Myanmar 1647.9 1647.9 5505.1 0

Nepal 12.9 12.9 1591 1591

Netherlands 22848.6 0 47229.3 47229.3

Niger 83.9 83.9 87.8 0

Nigeria 2071.7 2071.7 5009.5 0

Pakistan 14784.5 14784.6 56762.9 21014.6

Peru 138.4 138.4 561.9 0

Philippines 33098.8 7500.4 54077.7 41729.1

Poland 72154.1 23342.3 146473.9 69154.7

CDP Page of 12267

Portugal 3935.1 0 12264.5 12264.5

Romania 2869.8 0 8589.5 8589.5

Russian Federation 27174.1 27174 69242.6 0

Saudi Arabia 9695.3 9695.2 13429.9 0

South Africa 88509.2 80890.3 54877.3 7653.6

Spain 0 0 17411.1 17411.1

Sri Lanka 7572 7571.9 47146.2 32641.2

Sweden 430.9 3.2 39743.7 39450.8

Switzerland 128 0 5364.5 5364.5

Taiwan, Greater China 1788.6 1788.6 3070 0

Thailand 27377.2 22031.2 75399.6 10366.8

Trinidad and Tobago 1529.9 1530 2577.3 0

Tunisia 1008.4 1008.4 2144.1 0

Turkey 61079 47828.4 154337.2 29142.2

Ukraine 507 39.5 1199.5 1105.1

United Arab Emirates 13321.9 13321.9 22745.9 0

United Kingdom ofGreat Britain andNorthern Ireland

65571.6 7618 185020 159117.7

Uruguay 10.1 10.1 197.2 0

United States ofAmerica

198880.2 0 429646.2 429646.2

Venezuela (BolivarianRepublic of)

1103.9 1104 4106.7 0

Viet Nam 10793.1 2660.3 24254.1 18305.2

Zimbabwe 625.1 625.1 866.4 0

Austria 38.6 38.6 240 0

Ethiopia 0.6 0.6 1452.7 1452.7

Finland 722 121.6 5816.5 5224

Guatemala 41.3 30.6 104.4 25.1

Nicaragua 75.5 75.5 214.9 0

Panama 95 95 294.7 0

Singapore 468 468 1071.9 0

Slovakia 13.1 0 78.6 78.6

Paraguay 0.1 0.1 601.1 601.1

United Republic ofTanzania

2.1 2.1 4.91 0

Country/Region Scope 2, location-based (metric tonsCO2e)

Scope 2, market-based (metric tonsCO2e)

Purchased and consumedelectricity, heat, steam orcooling (MWh)

Purchased and consumed low-carbon electricity, heat,steam or cooling accounted in market-based approach(MWh)

C7.6

(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to provide.By business division

C7.6a

CDP Page of 12268

(C7.6a) Break down your total gross global Scope 2 emissions by business division.

Business division Scope 2, location-based emissions (metric tons CO2e) Scope 2, market-based emissions (metric tons CO2e)

Africa 101078.6 93459.7

Europe 300497.1 76721.3

Latin America 126957.4 50931.9

NAMET & RUB 156493.7 142775.3

North America 198880.2 0

North Asia 75580.8 47228.2

SEAA 248220.8 209143.9

South Asia 222950.4 205815.7

C7.9

(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of theprevious reporting year?Decreased

C7.9a

CDP Page of 12269

(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of themspecify how your emissions compare to the previous year.

Change inemissions(metrictonsCO2e)

Directionof change

Emissionsvalue(percentage)

Please explain calculation

Change inrenewableenergyconsumption

46058 Decreased 2.7 Increase in purchase of renewable grid electricity during 2018 reduced S2 emissions by 28370 tonnes CO2and increased use of biofuels reduced S2 emissions by 17688 tonnes CO2, compared to total emissions of1693385 tonnes CO2 in 2017. This equates to (46058/1693385)*100 = 2.7% reduction in S1 + S2 emissions.Examples include: purchase of I-RECS in Costa Rica, El Salvador, Honduras and Turkey; PPA’s in Philippinesand Chile; replacement of fossil fuels by biomass in Thailand, Indonesia and India; use of biogas to replacenatural gas in UK, Sweden & Denmark.

Otheremissionsreductionactivities

62511.1 Decreased 3.7 Emissions reduction projects during 2018 reduced S1 + S2 emissions by 62511 tonnes CO2 compared tototal emissions of 1693385 tonnes CO2 in 2017. This equates to (62511/1693385)*100 = 3.7% reduction.Examples include increase in use of solar thermal technology, increase in use of biomass fuel to replace fossilfuels, insulation of pipes and tanks, maximising combustion efficiency of boilers and condensate recoveryand utilisation of low grade heat that would otherwise be wasted.

Divestment 19320.6 Decreased 1.1 Reduction in emissions of 19321 tonnes CO2 for sites divested during 2018, compared to 1693385 tonnesCO2 reported in 2017. This equates to (19321/1693385)*100 = 1.1% decrease in Unilever’s 2017 S1 + S2emissions.

Acquisitions 936.7 Increased 0.1 Additional emissions of 937 tonnes CO2 from acquired sites reporting for the first time in Unilever's globalEnvironmental Performance Reporting system in 2018. This equates to (937/1693385)*100 = 0.1% increasein Unilever’s 2017 S1 + S2 emissions.

Mergers 0 No change 0 Not applicable

Change inoutput

31935.5 Increased 1.9 Additional emissions of 31936 tonnes CO2 due to production volume changes, as reported by our existingfactories in our Environmental Performance Reporting system. This equates to 1.9% increase in Unilever’s2017 S1 + S2 emissions of 1693385 tonnes CO2 (31936/1693385)*100 = 1.9%

Change inmethodology

19487.7 Decreased 1.2 Decrease in emissions of 19488 tonnes CO2 due to changes in CO2 factors for grid electricity as reported byIEA for 2015 vs 2014 (time lag of 3 years in data, so 2015 data used for 2018 grid electricity purchases etc),compared to 1693385 tonnes CO2 reported in 2017. This equates to 1.2% decrease in Unilever’s 2017 S1 +S2 emissions of (19488/1693385)*100 = 1.2%

Change inboundary

0 No change 0 Not applicable

Change inphysicaloperatingconditions

0 No change 0 Not applicable

Unidentified 0 No change 0 Not applicable

Other 0 No change 0 Not applicable

C7.9b

(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a location-based Scope 2 emissions figureor a market-based Scope 2 emissions figure?Market-based

C8. Energy

C8.1

(C8.1) What percentage of your total operational spend in the reporting year was on energy?More than 5% but less than or equal to 10%

CDP Page of 12270

C8.2

(C8.2) Select which energy-related activities your organization has undertaken.

Indicate whether your organization undertakes this energy-related activity

Consumption of fuel (excluding feedstocks) Yes

Consumption of purchased or acquired electricity Yes

Consumption of purchased or acquired heat Yes

Consumption of purchased or acquired steam No

Consumption of purchased or acquired cooling No

Generation of electricity, heat, steam, or cooling Yes

C8.2a

(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks) in MWh.

Heating value MWh from renewablesources

MWh from non-renewablesources

Total MWh

Consumption of fuel (excluding feedstock) LHV (lower heatingvalue)

854055.14 3461547.47 4315602.6

Consumption of purchased or acquired electricity <Not Applicable> 1596118.86 1274611.26 2870730.12

Consumption of purchased or acquired heat <Not Applicable> 208757.8 356839.42 565597.22

Consumption of purchased or acquired steam <Not Applicable> <Not Applicable> <Not Applicable> <NotApplicable>

Consumption of purchased or acquired cooling <Not Applicable> <Not Applicable> <Not Applicable> <NotApplicable>

Consumption of self-generated non-fuel renewableenergy

<Not Applicable> 17281.76 <Not Applicable> 17281.76

Total energy consumption <Not Applicable> 2676213.6 5092998.1 7769211.7

C8.2b

(C8.2b) Select the applications of your organization’s consumption of fuel.

Indicate whether your organization undertakes this fuel application

Consumption of fuel for the generation of electricity Yes

Consumption of fuel for the generation of heat Yes

Consumption of fuel for the generation of steam No

Consumption of fuel for the generation of cooling No

Consumption of fuel for co-generation or tri-generation Yes

C8.2c

(C8.2c) State how much fuel in MWh your organization has consumed (excluding feedstocks) by fuel type.

Fuels (excluding feedstocks)Natural Gas

Heating value

CDP Page of 12271

LHV (lower heating value)

Total fuel MWh consumed by the organization2788015

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat2416671.77

MWh fuel consumed for self-generation of steam<Not Applicable>

MWh fuel consumed for self-generation of cooling<Not Applicable>

MWh fuel consumed for self-cogeneration or self-trigeneration371343.22

CommentNo comment required

Fuels (excluding feedstocks)Liquefied Petroleum Gas (LPG)

Heating valueLHV (lower heating value)

Total fuel MWh consumed by the organization40757.89





MWh fuel consumed for self-cogeneration or self-trigeneration0


Fuels (excluding feedstocks)Other, please specify (Fuel Oils)







CDP Page of 12272



Fuels (excluding feedstocks)Liquid Biofuel (Heavy Fuel Oil)









Fuels (excluding feedstocks)Coal









Fuels (excluding feedstocks)Wood Waste



CDP Page of 12273







Fuels (excluding feedstocks)Biogas (Fuel Crops)









Fuels (excluding feedstocks)Solid Biomass Waste








Comment

CDP Page of 12274

No comment required

C8.2d

(C8.2d) List the average emission factors of the fuels reported in C8.2c.

Biogas

Emission factor0.0546

Unitmetric tons CO2e per GJ

Emission factor sourceIPCC 2006, Volume 2, Chapter 2 Table 2.2

CommentThe source of data for CO2 factors for fuels is based on IPCC and we review the factors regularly to ensure that they remain withinthe range given. As our fuel use relates to fuel combustion, we only report CO2 emissions due to other GHG’s not being material.

Coal





Liquefied Petroleum Gas (LPG)





Liquid Biofuel





CDP Page of 12275

Natural Gas





Solid Biomass Waste

Emission factor0.1




Wood Waste





Other



Emission factor sourceDerived from IPCC 2006, Volume 2, Chapter 2 Table 2.2. This emission factor is a weighted average of emission factors for LightFuel Oil, Heavy Fuel Oil, High Speed Diesel and Fuel Crops.


C8.2e

CDP Page of 12276

(C8.2e) Provide details on the electricity, heat, steam, and cooling your organization has generated and consumed in thereporting year.

Total Grossgeneration (MWh)

Generation that is consumed by theorganization (MWh)

Gross generation fromrenewable sources (MWh)

Generation from renewable sources that isconsumed by the organization (MWh)

Electricity 157026.51 135738.74 17281.76 16560.29

Heat 4175857.85 4068862.25 854055.14 837202.47

Steam

Cooling

C8.2f

(C8.2f) Provide details on the electricity, heat, steam and/or cooling amounts that were accounted for at a low-carbonemission factor in the market-based Scope 2 figure reported in C6.3.

Basis for applying a low-carbon emission factorEnergy attribute certificates, I-RECs

Low-carbon technology typeHydropower

Region of consumption of low-carbon electricity, heat, steam or coolingAfrica

MWh consumed associated with low-carbon electricity, heat, steam or cooling7653.63

Emission factor (in units of metric tons CO2e per MWh)0

Comment

Basis for applying a low-carbon emission factorGrid mix of renewable electricity





CommentGrid electricity in Ethiopia where the national grid is >95% renewable.

Basis for applying a low-carbon emission factorOff-grid energy consumption from an on-site installation or through a direct line to an off-site generator owned by another company

Low-carbon technology typeBiomass (including biogas)

Region of consumption of low-carbon electricity, heat, steam or coolingEurope



CDP Page of 12277

Comment

Basis for applying a low-carbon emission factorPower Purchase Agreement (PPA) with energy attribute certificates





Comment


Low-carbon technology typeWind




Comment

Basis for applying a low-carbon emission factorEnergy attribute certificates, Guarantees of Origin





Comment

Basis for applying a low-carbon emission factorPower Purchase Agreement (PPA) without energy attribute certificates


Region of consumption of low-carbon electricity, heat, steam or coolingLatin America



Comment

CDP Page of 12278


Low-carbon technology typeSolar PV




Comment






Comment






Comment






CommentGrid electricity in Paraguay where the national grid is >95% renewable.

CDP Page of 12279



Region of consumption of low-carbon electricity, heat, steam or coolingOther, please specify (NAMET & RUB)



Comment






Comment






Comment

Basis for applying a low-carbon emission factorEnergy attribute certificates, Renewable Energy Certificates (RECs)


Region of consumption of low-carbon electricity, heat, steam or coolingNorth America



Comment

Basis for applying a low-carbon emission factor

CDP Page of 12280

Energy attribute certificates, Renewable Energy Certificates (RECs)





Comment



Region of consumption of low-carbon electricity, heat, steam or coolingAsia Pacific



Comment






Comment






Comment


CDP Page of 12281

Low-carbon technology typeOther low-carbon technology, please specify (Geothermal)




Comment






Comment




MWh consumed associated with low-carbon electricity, heat, steam or cooling1591


CommentGrid electricity in Nepal where the national grid is >95% renewable.






Comment


CDP Page of 12282











Comment






Comment






Comment


CDP Page of 12283





Comment






Comment






Comment






Comment


Low-carbon technology type

CDP Page of 12284

Hydropower




Comment






CommentGrid electricity in Paraguay where the national grid is >95% renewable.






Comment






Comment


Low-carbon technology type

CDP Page of 12285

Hydropower




Comment






Comment






Comment






Comment



CDP Page of 12286




Comment






Comment






Comment






Comment



Region of consumption of low-carbon electricity, heat, steam or cooling

CDP Page of 12287

Asia Pacific









Comment












Comment



CDP Page of 12288




Comment






Comment






Comment






Comment




CDP Page of 12289

Latin America



Comment






Comment






Comment






CommentGrid electricity in Paraguay where the national grid is >95% renewable




CDP Page of 12290

Other, please specify (NAMET & RUB)



Comment






Comment






Comment






Comment




CDP Page of 12291



Comment






Comment






Comment






Comment




MWh consumed associated with low-carbon electricity, heat, steam or cooling

CDP Page of 12292

41729.06


Comment






Comment







C9. Additional metrics

C9.1

CDP Page of 12293

(C9.1) Provide any additional climate-related metrics relevant to your business.

DescriptionEnergy usage

Metric value1.27

Metric numeratorGJ

Metric denominator (intensity metric only)Per tonne of production



Please explainThis metric relates to energy intensity within Unilever’s manufacturing operations. Since 2008, energy intensity has been reducedby 28%, which has contributed to cumulative cost benefits of €600 million.

C10. Verification

C10.1

(C10.1) Indicate the verification/assurance status that applies to your reported emissions.

Verification/assurance status

Scope 1 Third-party verification or assurance process in place

Scope 2 (location-based or market-based) Third-party verification or assurance process in place

Scope 3 Third-party verification or assurance process in place

C10.1a

CDP Page of 12294

(C10.1a) Provide further details of the verification/assurance undertaken for your Scope 1 and/or Scope 2 emissions andattach the relevant statements.

ScopeScope 1

Verification or assurance cycle in placeAnnual process

Status in the current reporting yearComplete

Type of verification or assuranceLimited assurance

Attach the statementUnilever verification letter - PWC assurance of GHG emissions.pdf2018 PwC assurance Report.pdf

Page/ section referencePage 1 & 3 of PwC assurance report for details of assurance scope. Unilever verification letter outlines how the assurance scopefor 2018 is aligned to scope 1. The basis of preparation (page 12) also references the definitions for scope 1 emissions againstwhich PwC assure.

Relevant standardISAE 3410

Proportion of reported emissions verified (%)95

ScopeScope 2 market-based

Verification or assurance cycle in placeAnnual process

Status in the current reporting yearComplete

Type of verification or assuranceLimited assurance


Page/ section referencePage 1 & 3 of PwC assurance report for details of assurance scope. Unilever verification letter outlines how the assurance scopefor 2018 is aligned to scope 2. The basis of preparation (page 12) also references the definitions for scope 2 emissions againstwhich PwC assure.


Proportion of reported emissions verified (%)88

C10.1b

CDP Page of 12295

(C10.1b) Provide further details of the verification/assurance undertaken for your Scope 3 emissions and attach the relevantstatements.

ScopeScope 3- at least one applicable category

Verification or assurance cycle in placeBiennial process

Status in the current reporting yearNo verification or assurance of current reporting year


Page/section referencePage 1 & 2 – We verify the percentage change in the greenhouse gas impact of our products across the lifecycle per consumer use(scope 3) every other year reflecting a phased approach to assurance. This approach has been endorsed by management and theBoard’s Audit Committee given the size and complexity of our Sustainable Living Plan. We plan to assure scope 3 emissions againin 2019.


C10.2

(C10.2) Do you verify any climate-related information reported in your CDP disclosure other than the emissions figuresreported in C6.1, C6.3, and C6.5?Yes

C10.2a

(C10.2a) Which data points within your CDP disclosure have been verified, and which verification standards were used?

Disclosuremoduleverificationrelates to

Data verified Verificationstandard

Please explain

C4. Targetsandperformance

Year on year changein emissions (Scope 1and 2)

ISAE 3410 Our external assurance provider (PwC) includes in its assurance report the absolute and per tonne ofproduction reduction in Scope 1 + 2 emissions since the previous year (2017) for manufacturing emissionssuch that progress against our target in Metric tonnes CO2e per metric tonne of product is verified.2018 PwC assurance Report.pdf

C5. Emissionsperformance



C6. Emissionsdata



C9. Additionalmetrics

Other, please specify((Energy used pertonne of production))


C11. Carbon pricing

CDP Page of 12296

C11.1

(C11.1) Are any of your operations or activities regulated by a carbon pricing system (i.e. ETS, Cap & Trade or Carbon Tax)?Yes

C11.1a

(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.EU ETS

We do not report carbon taxes and their respective allowances in any of our countries operation as they are immaterial versus ouroverall tax obligations. We do however monitor EU ETS allowances.

C11.1b

(C11.1b) Complete the following table for each of the emissions trading systems in which you participate.

EU ETS

% of Scope 1 emissions covered by the ETS0.57

Period start dateJanuary 1 2018

Period end dateDecember 31 2018

Allowances allocated12946

Allowances purchased0

Verified emissions in metric tons CO2e4285

Details of ownershipFacilities we own and operate

CommentFor 2018, only 1 of our sites remained within the EU ETS.

C11.1d

CDP Page of 12297

(C11.1d) What is your strategy for complying with the systems in which you participate or anticipate participating?

Unilever's strategy for sites which participate in EU ETS, and for other Unilever sites, is firstly to minimise CO2 emissions byreducing energy consumption and then, where feasible, switch to less carbon intensive fuels. Our manufacturing emissions reductiontargets, supported by energy reduction targets, drive reductions in both Scope 1 and 2 emissions.

Any shortfall between annual allocation and annual emissions is typically met by surrendering surplus allowances banked duringprevious years of the scheme, with any additional shortfall being met through purchase of allowances. Under Phase 3 of the scheme(2013+), when allocations reduce year on year, we will keep our allocation/emissions strategy under review.

For 2018, only 1 of our sites remained within the EU ETS.

C11.2

(C11.2) Has your organization originated or purchased any project-based carbon credits within the reporting period?No

C11.3

(C11.3) Does your organization use an internal price on carbon?Yes

C11.3a

CDP Page of 12298

(C11.3a) Provide details of how your organization uses an internal price on carbon.

Objective for implementing an internal carbon priceStakeholder expectationsChange internal behaviorDrive energy efficiencyDrive low-carbon investmentIdentify and seize low-carbon opportunitiesOther, please specify ( Transition to a low carbon economy)

GHG scope as follows for Unilever internal carbon pricing schemes: Scope 1 (Unilever) Scope 1, 2 and 3 (Ben & Jerry’s)

GHG ScopeScope 1Scope 2Scope 3

ApplicationAn internal carbon price is applied to carbon emissions generated by the facilities across the Unilever manufacturing network tocreate the internal clean energy fund. This fund forms part of the group annual CAPEX budget and is used to invest in renewableenergy projects. In previous years, we also added a shadow price to all new capital investment decisions over €1 million. However,in practice it made little difference to the overall investment because we are fundamentally not a carbon or energy intensiveindustry. We have therefore chosen to focus our attention on the internal clean energy fund going forward.

Actual price(s) used (Currency /metric ton)40

Variance of price(s) usedIn July 2016, Unilever introduced an explicit internal price of carbon of €30 per tonne. This was increased to €40 per tonne for theemissions of 2017 and continued for 2018. In practice, this meant that emissions of 2018 were levied off the capital budget for 2019at a price of €40 per tonne. Our ice cream brand, Ben & Jerry’s has an internal carbon price of $10 per tonne which also coversScopes 1, 2 and 3 emissions.

Type of internal carbon priceShadow priceInternal feeImplicit price

Impact & implicationWe use the internal price on carbon in two ways. First, to evaluate the business case for new capital investments of significant size,e.g. in new manufacturing capacity, plant or equipment. Secondly, we created an internal annual charge on emissions of CO2 fromour manufacturing network. This levy has created an internal ‘Clean-Energy’ fund for 2018 which is being used to invest ininstalling renewable energy sources on our manufacturing sites. This greatly expands our ability to accelerate the rate at which wemove towards our 2030 ambition to achieve use of 100% renewable energy. In addition, our ice cream company Ben & Jerry’s hasinstituted an internal carbon tax of $10 for each metric tonne of its GHG emissions from farm to landfill. The company pays the taxitself with funds going towards internal GHG-reducing initiatives. 42% of its ice cream lifecycle emissions come from dairy so thecompany works with farmers to implement GHG footprint-reducing strategies, including manure separators that turn methane intobedding for cows. Additional measures include investing in solar panels at the Vermont ice cream factory, and installing electricvehicle charging stations at its facilities. Further to these explicit price of carbon, Unilever also applies an implicit cost of carbon (asdefined by the UN Global Compact) by setting emissions reductions targets and delivering against them, so driving down emissionsas if an explicit price were used in the decision calculation.

C12. Engagement

C12.1

(C12.1) Do you engage with your value chain on climate-related issues?Yes, our suppliersYes, our customersYes, other partners in the value chain

CDP Page of 12299

C12.1a

(C12.1a) Provide details of your climate-related supplier engagement strategy.

Type of engagementInformation collection (understanding supplier behavior)

Details of engagementCollect climate change and carbon information at least annually from suppliers

% of suppliers by number0.16

% total procurement spend (direct and indirect)19

% Scope 3 emissions as reported in C6.5100

Rationale for the coverage of your engagementSuppliers are prioritised to respond based on their status as strategic suppliers through Unilever’s Partner to Win programme ortheir significant contribution to our upstream GHG footprint. We target suppliers who have the greatest potential to help reduce ourexposure to risks from climate change across our value chain. Unilever participates in the CDP Supply Chain programme, throughwhich we ask suppliers to disclose emissions data and climate change strategies, amongst other themes. In 2018, we invited 108ingredient and packaging suppliers to participate in the programme. Suppliers were engaged through direct interaction withUnilever Relationship Managers, webinars and the action exchange platform, the latter being those showing interest in participating.

Impact of engagement, including measures of successCDP Supply Chain response rate to the climate change questionnaire, which was 93% in 2018. Furthermore, this rate was morethan 29% better than the global average of 64%, which we see to be an indication of the commitment of our suppliers to addressingclimate change risks. We anticipate that between 60 - 70% of our innovations are linked to working with our strategic suppliers sowe choose to invest in long-term, mutually beneficial relationships with them to help us achieve success.

CommentThe number of suppliers invited to participate in the programme in 2018 dropped by 6% when compared to the previous year. Thisdrop is due to removal of some suppliers resulting from their request not to participate in future.

C12.1b

CDP Page of 122100

(C12.1b) Give details of your climate-related engagement strategy with your customers.

Type of engagementCollaboration & innovation

Details of engagementRun a campaign to encourage innovation to reduce climate change impacts

% of customers by number0.01

% Scope 3 emissions as reported in C6.50

Please explain the rationale for selecting this group of customers and scope of engagementRetail counts for 5% of our global GHG footprint. We work with our customers to roll out climate-friendly freezers for storage of ourice cream products. In general the freezers selling our products are owned and operated by us, but our retail customers pay theelectricity bill. As we improve our freezer energy efficiency, this also reduces running costs, benefiting our customers.

Impact of engagement, including measures of successAlthough emissions from refrigeration account for less than 1% of our scope 3 emissions, by the end of 2018, we had replacedaround 2.9 million freezers selling our products with natural hydrocarbon refrigerants (HCs) instead of standard hydrofluorocarbon(HFC) refrigerants. In 2018, the freezers we purchased consumed on average 50% less energy per freezer than those purchasedin 2008 (our baseline). By increasing our use of climate-friendly freezers, we’re driving innovation with manufacturers to furtherreduce the impacts of the freezers we buy. In 2017, we trialled 50 mobile ice cream cabinets fitted with solar panels in the US andIndia. These cabinets use just 10% of the electricity of a standard cabinet. They can work for up to 10 hours using solar poweralone and recharge overnight from the electricity grid. We also trialled and developed solar power freezers in 2018, including staticfreezer cabinets.

C12.1c

CDP Page of 122101

(C12.1c) Give details of your climate-related engagement strategy with other partners in the value chain.

CONSUMERS: As consumer use accounts for over 60% of our GHG footprint, we focus a lot of our engagement on education &information sharing to encourage behavioural change. We prioritise based on the most material environmental impacts of our productportfolio, prioritising Laundry because it represents over 10% of Unilever’s GHG footprint specifically. Consumers are becoming muchmore aware of the positive difference brands can make to social and environmental issues, and also the difference they themselvescan make through their everyday shopping choices. Unilever’s Making Purpose Pay research showed that 33% of those surveyedpurchased products with sustainability in mind & 21% say that they would actively choose brands if their sustainable living credentialswere clearer in marketing & on labelling.

We help consumers make a sustainable choice through the products we design & through communication online, on pack & in store.For example, our Laundry brands communicate with consumers through packs & online on how they can adopt better laundry habitsto reduce their own environmental impacts – habits such as correct dosing, lower temperature washing, washing a full load & usingshorter wash cycles. They also include the Washright logo on pack to support more sustainable washing. In Europe we are partnersin the AISE 'I prefer 30' campaign.

Strategy for engagement: Unilever reaches consumers in three main ways:

•Developing new products, such as dry shampoos or ‘quick wash’ laundry detergents, which change how people use products

•Communicating better habits to consumers on product packs, in stores and online; and

•Working with retailers, industry bodies and other partners to inspire people to take small actions that make a big difference.

Case studies: In 2009, we launched Persil Small & Mighty, enabling consumers to wash clothes at lower temperatures, reducingGHG by up to 50% per load. Concentrated detergents mean that we can fit doses for more washes in smaller bottles, and so fewerraw materials are needed and more products can fit onto pallets, reducing transport costs. Innovations such as semi-concentratedliquid products help consumers who find it hard to change their dosage behaviour. The brand has been encouraging consumers toshorten their washing machine cycles and has found that the number of consumers using quick cycles has increased, along with anunderstanding of the environmental benefits. In 2014 in the UK, for example, one in four consumers claimed to use a quick wash, andsix in ten claimed to apply energy saving economy or quick wash settings. In 2017 our WaterSavers initiative works with schools andfootball/soccer clubs, partnering with businesses and NGOs in the Netherlands to build awareness among young people of howchanging behaviour – in particular, taking shorter showers – can make a real difference to GHG emissions. WaterSavers has reachedover 83,000 children in over 1,100 schools since it began in 2013. The initiative provides students with the information they need toencourage those around them to take five-minute showers, using our Five Levers for Change behaviour change methodology totackle long-term habits. Following our partnership with Young Crowds, specialists in educational content, an additional 890 schoolclasses signed up for the 2017–2018 WaterSavers school programme. In 2017, our WaterSavers programme won the European AIMNudging for Good Excellence Award.

C-AC12.2/C-FB12.2/C-PF12.2

(C-AC12.2/C-FB12.2/C-PF12.2) Do you encourage your suppliers to undertake any agricultural or forest managementpractices with climate change mitigation and/or adaptation benefits?Yes


(C-AC12.2a/C-FB12.2a/C-PF12.2a) Specify which agricultural or forest management practices with climate change mitigationand/or adaptation benefits you encourage your suppliers to undertake and describe your role in the implementation of eachpractice.



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Description of management practicePractices include afforesting with native species suited to the site conditions and those that contribute to improvement andrestoration of ecological connectivity.

Your role in the implementationProcurement

Explanation of how you encourage implementationWe work with our suppliers and other stakeholders to promote forest certification through our purchases. We give preference tosupplies delivered through the Forest Stewardship Council (FSC) certification scheme and accept other national schemes underthe framework of the Programme for the Endorsement of Forest Certification (PEFC).

Climate change related benefitIncreasing resilience to climate change (adaptation)Increase carbon sink (mitigation)

CommentThese practices encourage the capture of carbon from the atmosphere, whilst boosting resilience of biodiversity and ecosystemservices that forest provided, such as habitat for biological pest control species and fuel wood for farmers.


Management practiceReforestation

Description of management practicePractices include reforesting with native species suited to the site conditions and those that contribute to improvement andrestoration of ecological connectivity. Practices to increase wood production and productivity: As an example, the PEFC standardrequires that regeneration, tending and harvesting operations are carried out in time, and in a way that does not reduce theproductive capacity of the site.



Climate change related benefitIncreasing resilience to climate change (adaptation)Increase carbon sink (mitigation)

CommentThese practices encourage the capture of carbon from the atmosphere, whilst boosting resilience of biodiversity and ecosystemservices that forest provided, such as habitat for biological pest control species and fuel wood for farmers.


Management practicePractices to increase wood production and forest productivity

Description of management practicePractices to increase wood production and productivity: As an example, the PEFC standard requires that regeneration, tending andharvesting operations are carried out in time, and in a way that does not reduce the productive capacity of the site.



Climate change related benefitIncreasing resilience to climate change (adaptation)

CDP Page of 122103

Increase carbon sink (mitigation)

CommentPractices to increase wood production and productivity: Such practices made foresters more economically resilient to future shocksand highly productive forests are better able to capture more carbon.



Description of management practiceThe SAC and equivalent schemes, stipulate management requirements for biodiversity, natural resources and ecosystem services,like the need for a plan to manage

Your role in the implementationKnowledge sharingOperationalProcurement

Explanation of how you encourage implementationOur role when sourcing against the SAC versus schemes recognised as equivalent with the principles and practices of sustainableagriculture differs. Knowledge Sharing and Operational: For suppliers using Unilever’s own code, an agronomic network ofconsultants implements the standard, through training and capacity building. Procurement: For those suppliers of materials assuredagainst external or industry-recognised standards, the demand Unilever procurement creates for sustainably grown materials,maintains and drives the uptake of these practices in the regions we source from.

Climate change related benefitIncreasing resilience to climate change (adaptation)

CommentManagement provides supporting services to agricultural, like pollination by bees and other insects. By supporting biodiversity,agriculture is better able to cope with shocks that could undermine productivity.


Management practiceComposting

Description of management practiceSome of the standards recognised by us have requirements for the production, application, handling and storage of compost. Anexample of a composting requirement is for the location of the storage area to be a safe distance from living quarters andwaterways.



Climate change related benefitReduced demand for fossil fuel (adaptation)Reduced demand for fertilizers (adaptation)

CommentAs an alternative to the use of synthetic fertilizers, this practice would reduce their use and the emissions attributed to fossil fuelsused in production of the product.

Management practice reference number

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MP3

Management practiceContour farming

Description of management practiceAs an example, farmers implementing the SAC are encouraged to use apply contour farming to mitigate soil erosion.



Climate change related benefitReduced demand for fossil fuel (adaptation)Reduced demand for fertilizers (adaptation)

CommentBy reducing the risk of soil erosion and consequent loss of valuable nutrients, contour farming reduces overall fertilizer use.



Description of management practiceAs an example, farmers implementing the SAC are required to incorporate crop rotation into their integrated pest managementplan.



Climate change related benefitReduced demand for fossil fuel (adaptation)Reduced demand for fertilizers (adaptation)Reduced demand for pesticides (adaptation)

CommentThis activity is beneficial for preventing the build-up of particular pests and improving soil fertility, by rotating crops that havedifferent nutrient requirements. As such, it may reduce the demand for synthetic fertilizers and pesticides, and their associatedreliance on fossil fuels in production of these.


Management practiceEfficient equipment use

Description of management practiceMost standards require farmers have an energy management plan to identify, management and monitor energy use to gainefficiencies.

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Climate change related benefitEmissions reductions (mitigation)Reduced demand for fossil fuel (adaptation)

CommentReducing energy use will have a direct reduction in emissions associated with generation and fossil fuels implicated in this.


Management practiceEquipment maintenance and calibration

Description of management practiceAs an example, farmers implementing the SAC are required to maintain and calibrate their machinery to ensure desired flow ratesand distribution patterns are delivered.



Climate change related benefitEmissions reductions (mitigation)Reduced demand for fossil fuel (adaptation)Reduced demand for fertilizers (adaptation)Reduced demand for pesticides (adaptation)

CommentThis practice would optimise use of inputs, thus avoiding wastage and leading to the associated climate change benefits.


Management practiceFertilizer management

Description of management practiceAs an example, farmers implementing the SAC are required to take crop needs into account at all stages of growth and use this todesign the Nutrient Management Plan.


Explanation of how you encourage implementationOur role when sourcing against the SAC versus schemes recognised as equivalent with the principles and practices of sustainable

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agriculture differs. Knowledge Sharing and Operational: For suppliers using Unilever’s own code, an agronomic network ofconsultants implements the standard, through training and capacity building. Procurement: For those suppliers of materials assuredagainst external or industry-recognised standards, the demand Unilever procurement creates for sustainably grown materials,maintains and drives the uptake of these practices in the regions we source from.

Climate change related benefitEmissions reductions (mitigation)Reduced demand for fossil fuel (adaptation)Reduced demand for fertilizers (adaptation)

CommentManagement would reduce emissions released through over-application of synthetic fertilisers and the emissions attributed to fossilfuels used in production of the product.


Management practiceFire control

Description of management practiceAs an example, farmers implementing the SAC must not use fire for land preparation or in-field disposal of harvest residues.



Climate change related benefitEmissions reductions (mitigation)

CommentBy avoiding use of fire in farming practices, atmospheric pollution and associated emission would be avoided.


Management practiceGovernmental or institutional policies and programs

Description of management practiceAs an example, farmers implementing the SAC must comply with legal requirements applicable to the country of production. Thiscould apply to laws prohibiting illegal deforestation. Please ignore the management practice reference number. This is an additionalmanagement practice not already highlighted in 4.4a.



Climate change related benefitEmissions reductions (mitigation)Increasing resilience to climate change (adaptation)

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CommentLegal compliance that prevents environmental damage and exploitation of resources has general benefits to ensuring resilience ofthe farming system is maintained and that emissions associated with activities like land use change from illegal deforestation areavoided.



Description of management practiceAs an example, farmers implementing the SAC must produce a plan that incorporate IPM principles of prevention, observation andintervention.

Your role in the implementationKnowledge sharingOperational


Climate change related benefitReduced demand for pesticides (adaptation)

CommentAdoption of this approach ensures that precautionary measures inform the application of pesticides and that pesticide use isreduced through the opting for preventative measures or biological agents.


Management practiceLand use change

Description of management practiceAs an example, farmers implementing the SAC may not convert high conservation value / high ecological value or high carbonstock land to farmland. Please ignore the management practice reference number. This is an additional management practice notalready highlighted in 4.4a.




CommentBy preventing conversion of natural or semi-natural land uses to agriculture, the release of stored carbon will be avoided.


Management practiceReducing energy use

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Description of management practiceAs an example, farmers implementing the SAC must develop an energy management plan to reduce energy consumption.




CommentThis will directly reduce emissions of the farm operation, given the emissions associated with upstream energy generation, wherefossil fuel-derived sources are concerned.


Management practiceTiming of farm operations

Description of management practiceAs an example, the timing of application of nutrients should consider weather conditions, to avoid runoff and loss of nutrient torivers. Please ignore the management practice reference number. This is an additional management practice not alreadyhighlighted in 4.4a.


Explanation of how you encourage implementationOur role when sourcing against the SAC versus schemes recognised as equivalent with the principles and practices of sustainableagriculture differs. Knowledge Sharing and Operational: For suppliers using Unilever’s own code, an agronomic network ofconsultants implements the standard, through training and capacity building. Procurement: For those suppliers of materials assuredagainst external or industry-recognised standards, the demand Unilever procurement creates for sustainably grown materials,maintains and drives the uptake of these practices in the regions

Climate change related benefitReduced demand for fertilizers (adaptation)

CommentBy timing the use of inputs to account for external factors, the wastage of inputs is avoided, thus avoiding the need for furtherapplication.

C-AC12.2b/C-FB12.2b/C-PF12.2b

(C-AC12.2b/C-FB12.2b/C-PF12.2b) Do you collect information from your suppliers about the outcomes of any implementedagricultural/forest management practices you have encouraged?Yes

C12.3

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(C12.3) Do you engage in activities that could either directly or indirectly influence public policy on climate-related issuesthrough any of the following?Direct engagement with policy makersTrade associationsFunding research organizations

C12.3a

(C12.3a) On what issues have you been engaging directly with policy makers?

Focus oflegislation

Corporateposition

Details of engagement Proposed legislative solution

Cap andtrade

Support Unilever has publicly supported calls for carbon pricing and hasintroduced an internal carbon price in our investment decisions. Unileverhas also signed a number of statements in support of carbon pricing, forexample the Prince of Wales’s Corporate Leaders Group Carbon PriceCommuniqué, the World Bank statement on carbon pricing and we arepart of the UN Global Compact Carbon Pricing Coalition. In Paris,Unilever was part of the We Mean Business Coalition which called for aPrice on Carbon as a key policy ask. Unilever's CEO, Paul Polman, hasalso consistently called for a price on carbon, for example in his speechat the World Bank for the Carbon Pricing Leadership Coalition in April2016. Unilever also participated in the High Level Assembly of the CPLCin April 2018, and as co-Chair of the Global Commission on theEconomy and Climate whose policy recommendations include carbonpricing. Paul Polman has also been vocal in his outreach to businessleaders, finance ministers and heads of state on the need for carbonpricing as a key policy solution to address climate change, for exampleat the World Economic Forum’s CEO Climate Leaders Group at Davos.

Unilever believes that carbon pricing is a fundamental part ofthe global response to climate change. Unilever alsorecognises that without it, we are unlikely to be able to meet ourown greenhouse gas reduction targets. By signing the WorldBank carbon pricing statement, Unilever has added its name togovernments and companies calling for a strengthening ofcarbon pricing policies to redirect investment commensuratewith the scale of the climate challenge; bringing forward andstrengthening the implementation of existing carbon pricingpolicies to better manage investment risks and opportunities;and enhancing cooperation to share information, expertise andlessons learned on developing and implementing carbonpricing through various “readiness” platforms.

Energyefficiency

Support In 2018, Unilever lobbied, as part of a coalition coordinated by Transport& Environment, for a strengthening of EU efficiency targets for trucks. Ajoint letter requesting a high level of ambition was well received andresulted in draft proposals significantly more ambitious than those forwhich the haulage industry had asked. In 2017 We were part of theCEPS Circular Economy Task Force which produced its report in 2018with a number of recommendations to drive resource efficiency includingenergy efficiency in the EU. Through the EU Alliance to Save Energy,EUASE, Unilever has called for recognition that energy efficiency candrive forward the EU’s competitiveness, energy security and climatechange objectives, and for ambitious energy efficiency targets for 2030.In the US, Unilever has signed the BICEP (Business for InnovativeClimate and Energy Policy) Climate Declaration, which specificallymentions the importance of energy efficiency.

Energy efficiency measures, for example those that encouragethe purchase and installation of more efficient boilers andappliances, will be critical to enabling a lower greenhouse gasimpact across Unilever's product lifecycle. This is why Unileverhas supported energy efficiency policies through organisationslike EUASE and BICEP. Unilever believes that policymeasures that incentivise, or indeed mandate, energyefficiency improvements have the potential to reducegreenhouse gas emissions cost effectively as well as createjobs and improve resilience to future high or volatile energyprices. Specifically, we support emissions performancestandards in power generation and the tightening of energyefficiency standards for vehicles, appliances and buildings.

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Cleanenergygeneration

Support Unilever supports renewable energy initiatives that deliver benefits on alifecycle basis, helping to combat climate change and reducedependency on fossil fuels. We are part of the RE100 campaign wherewe commit to 100% renewable energy and advocate for policies tosupport widespread adoption of renewables. In 2015 we announcednew ‘carbon positive’ targets to source 100% of our energy across ouroperations from renewable sources by 2030 (this supersedes ourprevious target of sourcing 40% of our energy across our operationsfrom renewable sources by 2020); source all our electricity purchasedfrom the grid from renewable sources by 2020; eliminate coal from ourenergy mix by 2020; and in order to achieve our target of carbon positiveby 2030, we intend to directly support the generation of more renewableenergy than we consume and make the surplus available to the marketsand communities in which we operate. All our sites in Europe, the USand Canada purchase grid electricity from certified renewable sources; in2016 we met 31.6% of our global energy needs from renewable sources.In the US, Unilever has signed the BICEP (Business for InnovativeClimate and Energy Policy) Climate Declaration, which specificallymentions the importance of clean energy generation and renewableenergy. In 2015 we took part in CERES/BSR climate lobby day – a dayof congressional lobbying on behalf of climate action. In the EU,Unilever has signed the Trillion Tonne Communiqué, which calls ongovernments to design a credible strategy to transform the energysystem in order to reduce emissions to net zero before the end of thiscentury. Unilever's CEO, Paul Polman, also serves as Co-Chair of theGlobal Commission on the Economy and Climate. In 2016 theypublished their third report – The Sustainable Infrastructure Imperative –including a number of specific policy recommendations to accelerate lowcarbon infrastructure investment.

As a member of the groups such as the World BusinessCouncil for Sustainable Development, the RE100 campaign,the EU Corporate Leaders Group on Climate Change and theGlobal Commission on the Economy and Climate, we havecalled for legislative measures including: • The introduction ofcarbon pricing, including the removal of fossil fuel subsidies. •Incentives to support the development of clean energygeneration. • Increases in research and development spendingon renewable energy. Disclosure by companies of climaterelated financial risks.

Other,pleasespecify (NetZeroEmissionsTargets)

Support We have actively pushed for global emissions targets of Net Zero by2050, as part of the B-Team’s campaign for ambitious climate action.We pushed for this language in the Paris the 1.5 degree reference in thetext is widely understood to be synonymous with this level of ambition.Our advocacy included public letters, interventions directly to ministersasking for a long-term goal within the Paris Agreement and setting ourown internal targets to show what is possible .This core message hasbeen included in key advocacy engagements including media OpEdsand on platforms such as the World Economic Forum in Davos and theUN Climate Change Bonn negotiations in May 2018, including theTalanoa Dialogue. Our CEO Alan Jope was a signatory to a letter to EUHeads of State in spring 2019 calling on them to adopt the EuropeanCommission's vision of a Climate Neutral Europe by 2050, and the EVPof our UK & Ireland business participated in a roundtable to push for theUK to adopt a Net Zero by 2050 target in line with the recommendationfrom the UK's Committee on Climate Change.

Mandatory global goals of Net Zero Emissions by 2050.Country Level 2050 Pathways compatible with the ParisAgreement. Where relevant this goal should be enshrined innational polices too. We have engaged at the Bonnnegotiations in May 2018 to call for governments to give asignal that the ambition in Nationally Determined contributionswill be raised during the 2018-2020 period, and asked thatthey signal this rise in ambition as early as COP24 in Poland inDecember 2018.

Other,pleasespecify(Other:GlobalPhase downof HFCs &other)

Support Unilever, as a founding member of Refrigerants, Naturally! has arguedfor natural refrigerants such as CO2 and hydrocarbon gases to be usedas refrigerants in point of sale cooling equipment instead ofHydrofluorocarbons with much higher Global Warming Potential Values.In 2015 and 2016 Unilever, through Refrigerants Naturally!, advocatedfor the adoption of the Kigali Amendment to the amendment to theMontreal Protocol to also include the global phase down of HFCs.

The inclusion of HFCs within the scope of the MontrealProtocol, to accelerate their global phase down in refrigerationapplications.

Focus oflegislation

Corporateposition


CDP Page of 122111

Other,pleasespecify(Sustainablebiofuels)

Support Unilever has undertaken a wide range of activities in order to influencedecision makers on the issue of biofuels. These include publishing abrochure, "Promoting Sustainable Biofuels", and joining forces with peerconsumer goods companies as well as environmental NGOs and aidcharities. In the EU, Unilever has been active in promoting a cap on 1stgeneration biofuels and called for support for sustainable alternatives forthe production of renewable energy. Through FoodDrinkEurope (FDE)we were in contact with the rapporteurs in the European Parliament in2014/2015. Unilever chaired the FDE Task Force on Biofuels. The finalagreement between the EU Parliament and the EU Council in April 2015contains a 7% maximum limit of 1st generation biofuels and theobligation for Member States to stimulate alternatives, including 2ndgeneration biofuels and electricity for transport. In 2016 the EUCommission has tabled proposals for the use of renewable energy forthe period 2020-2030. The EU Commission proposes to reduce the useof first generation biofuel and stimulate the use of better and moresustainable alternatives (electricity for transport and the use of 2ndgeneration biofuels). This is aligned with our advocacy which has beenpromoted consistently together with green NGOs. Furthermore, in 2017,the EU Parliament has proposed to eliminate the biofuel use (by 2020)of palm oil and other vegetable oils which are linked to deforestation.

Unilever supports policies that accelerate the exploitation ofcost effective, sustainable sources for renewable energy.However it is important to be mindful of negative unintendedconsequences that could arise in the pursuit of greenhousegas reduction strategies. One such risk is the potential impactof biomass energy programmes and biofuel targets, inparticular on food security and sustainable agriculture. Worldpopulation growth and increased economic development willrequire a substantial increase in food production in the comingyears. The additional use of foodgrade feedstock as biomassfor energy on a large scale will compete heavily for landpresently used for growing food. This could destabilise theworld’s food supply and increase local food shortages andprices. Unilever believes that most first generation biofuels areneither environmentally efficient nor cost effective ways toreduce greenhouse gas emissions. Many studies have shownthat several first generation biofuels have a poor performance(which could even be negative) with regard to reducinggreenhouse gas emissions and dependency on fossil fuels.Unilever also believes that the development of highperformance, bioenergy technologies – including secondgeneration biofuels – with an efficient carbon and energybalance, is essential. New innovative bioenergy applications,together with the use of electricity for transport, would providestrong incentives for the application of renewable energytechnologies while minimising the negative repercussions onfood markets and food security. We believe there is a strongcase for government and business investment in newtechnologies and further research on the sustainable use ofbiomass.

Focus oflegislation

Corporateposition


C12.3b

(C12.3b) Are you on the board of any trade associations or do you provide funding beyond membership?Yes

C12.3c

(C12.3c) Enter the details of those trade associations that are likely to take a position on climate change legislation.

Trade associationConsumer Goods Forum (CGF)

Is your position on climate change consistent with theirs?Consistent

Please explain the trade association’s positionThe Consumer Goods Forum (CGF) is a global, parity-based industry network that is driven by its members to encourage theglobal adoption of practices and standards that serve the consumer goods industry worldwide. It brings together the CEOs andsenior management of some 400 retailers, manufacturers, service providers, and other stakeholders across 70 countries, and itreflects the diversity of the industry in geography, size, product category and format. Its member companies have combined salesof €3.5 trillion and directly employ nearly 10 million people, with a further 90 million related jobs estimated along the value chain. Itis governed by its Board of Directors, which comprises more than 50 manufacturer and retailer CEOs. The CGF’s environmentalsustainability work positions the consumer goods industry as a leader in tackling climate change, reducing waste and improvingenvironmental stewardship in global supply chains. In pulling its weight to tackle climate change, the CGF has identified three keyareas where its members are well-positioned to effect significant change. These are: • Reducing food waste across operations andthroughout the rest of the value chain • Tackling deforestation • Phasing out the most polluting refrigerants To help the industryalign around a common set of targets, CGF members have publicly committed to certain business practices through resolutions ondeforestation (2010), refrigeration (2010 and 2016) and food waste (2015): these issues continue to be recognised as significantsources of greenhouse gasses. There is additional work with stakeholders to drive progress towards broader international goals,such as those set by the UN Sustainable Development Goals with a focus on developing partnerships (SDG 17). The CGF’s

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environmental work is also working on SDG 12 (ensure sustainable consumption for all), SDG 13 (Combat climate change and itsimpacts) and SDG 15 (Protect the planet). By joining forces and acting collectively, members of The CGF have a transformativeimpact.

How have you influenced, or are you attempting to influence their position?Unilever's Chief Sustainability Officer, Jeff Seabright, co-led the Sustainability Steering Committee during 2018. As co-lead,Unilever is very deeply involved in the development of both the CGF resolutions directly related to climate change on deforestationand sustainable refrigeration. Unilever's CEO, Alan Jope, is a member of the Board of Directors of the CGF.

Trade associationWorld Business Council for Sustainable Development (WBCSD)


Please explain the trade association’s positionA key thrust of the WBCSD's work is to advance the international climate policy debate through an active involvement in multilateralprocesses, particularly the United Nations Framework Convention on Climate Change (UNFCCC), but also other organisationssuch as the OECD, the International Energy Agency or the World Bank. In 2015, WBCSD launched the Low Carbon TechnologyPartnerships Initiative (LCTPi), a joint programme between WBCSD, the International Energy Agency and the SustainableDevelopment Solutions Network which was also endorsed by the French Presidency of COP21. For COP21, the initiative aimed todemonstrate that business was going to Paris with action based solutions which drive and support policy decisions on climate. Ithas eight active ‘business solutions’ in development: on renewables, energy efficiency in buildings, CCS, cement, advancedbiofuels, climate smart agriculture, forests and chemicals. As one of the organisations that make up the ‘We Mean Business’coalition, WBCSD believes that bold climate action is not a burden, but a historic economic opportunity, and has called for robustand stable carbon pricing. WBCSD has been actively engaging G20 leaders in support of the following positions – keeping theimplementation of the Paris Agreement high on the political agenda, ensuring appropriate economic mechanisms to accelerate thelow carbon transition, such as carbon pricing and the removal of fossil fuel subsidies, and to push for increased disclosure ofclimate related financial risks by companies.

How have you influenced, or are you attempting to influence their position?Unilever’s North America President, Amanda Sourry, represented us on the Executive Committee of the WBCSD during 2018.Unilever is represented on the Climate & Energy Leadership Group, including the Climate Policy Group, as well as the specificprojects on Renewable Energy and Climate Smart Agriculture.

Trade associationUN Global Compact


Please explain the trade association’s positionCaring for Climate, the relevant UNGC initiative on climate change, was launched by the UN Secretary General Ban Ki Moon in2007. It is aimed at advancing the role of business in addressing climate change by creating a platform for business leaders toadvance practical solutions and help shape public policy as well as public attitudes. • Caring for Climate is a business leadershipplatform that calls for the global business community to make a long-term and lasting commitment to taking action to tackle climatechange. Caring for Climate works collaboratively on joint initiatives between public and private sectors to understand and determinehow both the public and private sectors can best take proactive and effective action in tackling climate change. Caring for Climatealso encourages the private sector to take practical actions to continuously drive improvements on issues such as resourceefficiency, carbon footprint reduction, working with governments and NGOs, peers, employees, customers and investors, as wellas the broader public. Caring for Climate describes its position in its statement which is included in the Further Information boxbelow. Caring for Climate is part of the UNGC's Action Platform on Pathways to Low Carbon and Resilient Development.

How have you influenced, or are you attempting to influence their position?In 2018, Unilever engaged directly with the Global Compact’s climate action initiative and through our CEO's (Paul Polman) role asVice Chair of the UN Global Compact. As members of the UNGC Action Platform on Pathways to Low Carbon and ResilientDevelopment we help to steer the programme.

Trade associationAlliance of CEO Climate Leaders


Please explain the trade association’s position

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The Alliance of CEO Climate Leaders is convened by the World Economic Forum. While not a trade association in the traditionalsense, it does advocate policy positions in respect of climate change at an international level. In November 2018 the group issuesan open letter to heads of state calling for the introduction of policies including the introduction of carbon pricing and the adoption ofclimate-related financial disclosure standards. https://www.weforum.org/agenda/2018/11/alliance-ceos-open-letter-climate-change-action/

How have you influenced, or are you attempting to influence their position?Alan Jope, CEO of Unilever, succeeded Paul Polman (our former CEO) as a member of the Alliance in January 2019 and ThomasLingard, Director, Climate & Environment, is a member of the Sherpa group which develops and recommends the strategy to theCEOs.

Trade associationEuropean Chemical Industry Council (CEFIC)

Is your position on climate change consistent with theirs?Mixed

Please explain the trade association’s positionUnilever took the decision to leave CEFIC in 2018 and as of 2019 we are no longer a member. While the CEFIC position on theimportance of climate change and the need for action is qualitatively aligned with Unilever’s, there are significant quantitativedifferences. These relate to the level and scope of emission reductions required, as well as the specifics of the EU EmissionsTrading Scheme’s implementation, where Unilever believes Europe should be more ambitious.

How have you influenced, or are you attempting to influence their position?Unilever is the AISE representative on the CEFIC board, a role which we are alternating with P&G. Unilever contributes only totopics not related to CEFIC’s climate change policy. We have however encouraged CEFIC to consider also the opportunities ofambitious climate action for the chemicals sector resulting in more balanced external statements. As we have now left we are nolonger able to actively influence its positions.

Trade associationInternational Association for Soaps, Detergents and Maintenance Products (AISE)


Please explain the trade association’s positionWith regards to climate change, AISE is strongly committed to improving the sustainability of the European detergent andmaintenance products industry as a whole by strong cooperation with the European legislators on this aspect, and by developingvoluntary initiatives to reduce the environmental impact of the industry and its products. • In 2013 AISE volunteered for the EUCommission’s Product Environmental Footprint (PEF) 3 year pilot project that aims to set product category specific rules forreporting and/or communicating key product environmental scores. This will likely form the basis of EU sustainability initiatives forconsumer products in the future. • AISE voluntary initiatives include detergent compaction projects for laundry products, and theAISE Charter for Sustainable Cleaning which lays down principles of continuous improvement in production as well as definescriteria for the more sustainable detergent products. Over 200 European companies have now committed to this Charter. •Furthermore AISE is strongly involved in consumer education to reduce the use of energy, water and chemicals in the use phase,via the Cleanright.eu portal and the ‘I prefer 30’ campaign that aims to reduce the average wash temperature used in Europe. Thiscampaign was initiated in 2013 and ran until 2016 in 5 EU countries (UK, IT, FR, DK & BE), after which it delivered the results to theEuropean Commission. The European Commission has decided to extend the pilot phase of its initiative to develop a common wayto measure the environmental performance of products until the end of 2017.

How have you influenced, or are you attempting to influence their position?Unilever has been strongly engaged in the formulation of the AISE position and vision, and the execution of it. Unilever’s brandshave developed concentrated detergents that work at lower temperatures. Our Vice President of Regulatory Affairs is on the AISEBoard.

Trade associationPersonal Care Products Council (PCPC)


Please explain the trade association’s positionPCPC does not have a position on climate change per se. In 2010, the PCPC Board, with support from Unilever, approvedSustainability Principles that demonstrate the industry’s commitment to three pillars of sustainability: - Environment - Society -Economy. As a part of this commitment, PCPC conducts training and informational seminars to help members advance in their

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adoption and implementation of these important priorities. PCPC actively supports ongoing work to target and identify plastic oceandebris to protect our environment.

How have you influenced, or are you attempting to influence their position?

Trade associationCeres


Please explain the trade association’s positionCeres brings together industry groups to promote the business case for sustainability and advocate for climate change solutions topolicymakers. Ceres’ unique theory of change is to move investors, companies, policymakers and other capital market influencersto take action on four global sustainability challenges: climate change, water scarcity and pollution, inequitable workplaces andoutdated capital market systems.

How have you influenced, or are you attempting to influence their position?Unilever US actively participates in all Ceres’ industry meetings, calls and advocacy days. Annually we gather with other like-minded businesses in Washington D.C. to meet with policymakers to push for action on climate change. In 2019 we advocatedspecifically for a carbon pricing strategy.

Trade associationClimate Leadership Council


Please explain the trade association’s positionCLC was founded by industry groups from the energy, automotive and CPG sector, along with environmental NGOs, to pushspecifically for a carbon pricing strategy, and in particular the Baker-Shultz plan which is a bipartisan carbon tax plan that wouldreduce emissions and return fees back to taxpayers.

How have you influenced, or are you attempting to influence their position?Unilever US has been involved with CLC since its inception and is active in the working groups to shape the framework for a carbontax plan.

Trade associationCEO Climate Dialogue


Please explain the trade association’s positionThe CEO Climate Dialogue attempts to advance federal climate policy based on its guiding principles that represent diverseindustry sectors of the US economy. The guiding principles are that climate solution policy should: significantly reduce GHGemissions; deliver timely emissions reductions across the economy ; be market-based; be durable and responsive; do no harm;promote equity. Unique to this group is that it is really the leaders of the businesses (the CEOs) who are showing leadership bycalling for action, and putting a face to the need for change in the industry.

How have you influenced, or are you attempting to influence their position?Unilever North America President Amanda Sourry is a member of the CEO Climate Dialogue and Unilever has been inputtingdirectly into the guiding principles.

C12.3d

(C12.3d) Do you publicly disclose a list of all research organizations that you fund?No

C12.3f

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(C12.3f) What processes do you have in place to ensure that all of your direct and indirect activities that influence policy areconsistent with your overall climate change strategy?

Ensuring that our direct and indirect activities advance ambitious climate policy is an essential part of Unilever's climate changestrategy:

Unilever's climate change strategy recognises the importance of limiting global average temperatures to well below 2 degrees, andpreferably no more than 1.5 degrees above pre-industrial levels, in line with the Paris Agreement on Climate Change.

Policy advocacy in support of these ambitious climate goals is an explicit part of that strategy and a responsibility of the ChiefSustainability Office in partnership with Global External Affairs colleagues in key markets.

We use tools such as Influence Map, who track trade association influence on climate change, to check that organisations to whichwe belong are not – without our knowledge – lobbying against the policies we want to see enacted.

In June 2019, our new CEO sent an open letter to all trade associations and business groups it was a member of, asking them toconfirm their lobbying position on climate policy and whether or not it was aligned with Unilever’s. Within this letter, our CEO urgedthese groups to consider whether the level of ambition for which they are advocating is truly consistent with the deep emissions cutsimplicit in the Paris Agreement and that the latest science makes clear are necessary.

Where inconsistent positions are uncovered they are discussed by the Global Corporate Affairs Director and the Global Climate AndEnvironment Director and an action plan formed – either to engage with that trade association to seek a change in their policy, apublic clarification that on that issue they do not represent Unilever, or to take a decision exit that trade association.

We seek guidance on this issue from The Unilever Sustainable Living Plan (USLP) Council. The Council is made up of internationallyrespected independent external experts on a broad range of environmental, social and economic issues including climate change,sustainable agriculture and women’s rights. The Council was reformed during 2017 and a first meeting of the new council took placein June 2018, including a number of global experts on climate policy influence:

The USLP Council includes:Jonathan Porritt, Forum for the future

Christiana Figueres, Mission 2020

Katja Iversen, Women Deliver

Bill McDonough, Cradle to Cradle

Val Curtis, London School of Hygiene and Tropical Medicine

Kavita Prakash-Mani, WWF

Ricken Patel, Avaaz

C12.4

CDP Page of 122116

(C12.4) Have you published information about your organization’s response to climate change and GHG emissionsperformance for this reporting year in places other than in your CDP response? If so, please attach the publication(s).

PublicationIn mainstream reports, incorporating the TCFD recommendations

StatusComplete

Attach the documentARA 2018.pdf

Page/Section reference33-35

Content elementsGovernanceStrategyRisks & opportunitiesEmissions figuresEmission targetsOther metrics

CommentPlease see our Annual Report and Accounts for 2018 - https://www.unilever.com/Images/unilever-annual-report-and-accounts-2018_tcm244-534881_en.pdf

PublicationIn voluntary sustainability report

StatusComplete

Attach the document

Page/Section referenceWithin the Reducing environmental impact section we have sub sessions on greenhouse gas emissions, waste and packaging,water use, sustainable sourcing (linking in deforestation), natural capital and eco-efficiency.

Content elementsGovernanceStrategyRisks & opportunitiesEmissions figuresEmission targets

CommentThis is our online Sustainable Living Report. See Reducing environmental impact section and chapters in our online 2018Sustainable Living Report: https://www.unilever.com/sustainable-living/reducing-environmental-impact/

C13. Other land management impacts

C-AC13.1/C-FB13.1/C-PF13.1

(C-AC13.1/C-FB13.1/C-PF13.1) Do you know if any of the management practices implemented on your own land disclosed inC-AC4.4a/C-FB4.4a/C-PF4.4a have other impacts besides climate change mitigation/adaptation?Yes


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(C-AC13.1a/C-FB13.1a/C-PF13.1a) Provide details on those management practices that have other impacts besides climatechange mitigation/adaptation and on your management response.


Overall effectPositive

Which of the following has been impacted?SoilWaterYieldOther, please specify (Financial)

Description of impactFertiliser management: optimising fertiliser application saves money for the farmer (economic sustainability) and preventsdamaging nutrient loss to watercourses.

Have you implemented any response(s) to these impacts?Yes

Description of the response(s)A detailed fertilizer guide is developed and implemented each year.



Which of the following has been impacted?Yield

Description of impactIntegrated pest management: Minimises risk to health of workers and bystanders (social sustainability) and can lead to better pestcontrol overall, through prevention of damage


Description of the response(s)Monitoring for signs of pest and disease in plantations is undertaken. Biological control methods are used.



Which of the following has been impacted?Other, please specify (Other: Improved livelihoods)

Description of impactKnowledge sharing: This has improved farming skills and business knowledge of farmers.


Description of the response(s)The implementation of farmer field schools and training is conducted.



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Description of impactPractices to increase wood production and forest productivity: Greater yield of biomass and calorific value, and higher income forfarmers.


Description of the response(s)Improved forestry and wood handling procedures and programs.



Which of the following has been impacted?BiodiversityYield

Description of impactReforestation: The improvement of habitat has supported native wildlife, establishing a reservoir of natural enemies to crop pests,reducing pest or disease pressure. Furthermore, these areas have improved surface water infiltration within watersheds and thushave helped to regulate water flow.


Description of the response(s)A reforestation programme is in place and participatory forest conservation and reforestation being done with partners - community,ISLA and IDH, KFS

C-AC13.2/C-FB13.2/C-PF13.2

(C-AC13.2/C-FB13.2/C-PF13.2) Do you know if any of the management practices mentioned in C-AC12.2a/C-FB12.2a/C-PF12.2a that were implemented by your suppliers have other impacts besides climate change mitigation/adaptation?Yes


(C-AC13.2a/C-FB13.2a/C-PF13.2a) Provide details of those management practices implemented by your suppliers that haveother impacts besides climate change mitigation/adaptation.



Which of the following has been impacted?Biodiversity

Description of impactsBiodiversity considerations: Improves habitat conditions for species, many of which are beneficial to agriculture, through the controlof pests and pollination.

Have any response to these impacts been implemented?Yes

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Description of the response(s)A biodiversity action plan describes initiatives to deliver improvements to this dimension.



Which of the following has been impacted?BiodiversitySoilWater

Description of impactsBiodiversity – considerations & composting: Improves soil fertility and structure, allowing soil to better retain water and improvinghabitat for soil biota.


Description of the response(s)Soil management measures are typically captured in a management plan. This ensures a defined set of management interventionsare undertaken.




Description of impactsContour farming: Improve soil stability on sloped terrain helping to retain topsoil from the impact of weather events


Description of the response(s)Soil management measures are typically captured in a management plan. This ensures a defined set of management interventionsare undertaken.



Which of the following has been impacted?SoilYieldOther, please specify (Pests)

Description of impactsCrop Diversity & crop rotation: Crop rotation is beneficial to soil, as it prevents the build-up of pests and allows nitrogen fixing cropsto ‘pass on’ nutrients to the next crop. This improvement in soil health can lead to better yields. Moreover, rotations can prevent therisk of pest infestations.


Description of the response(s)A farm management plan typically includes records of crop rotation for planning purposes.

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Description of impactsFertiliser Management: Optimising fertiliser application saves money for the farmer (economic sustainability) and preventsdamaging nutrient loss to watercourses.


Description of the response(s)A nutrient management plan is kept by farmers to document crop needs, capture results from soil or tissue nutrient testing andapplication rates.




Description of impactsIntegrated Pest Management: Minimises risk to health of workers and bystanders (social sustainability) and can lead to better pestcontrol overall, through prevention of damage to beneficial insects. Yields of crops may also be increased by reducing harmfulexposure to pollinators.


Description of the response(s)An integrated pest management plan captures management measures like recommended thresholds or triggers to spray pesticidesby.




Description of impactsEnhanced forest regeneration practices & land use change: By preventing land use change of important ecological areas likeforest, grassland or wetlands, their soil, biodiversity and water features will be preserved.


Description of the response(s)A biodiversity action plan should identify areas of ecological importance that should not be converted to agriculture.



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Description of impactsFertisiler application: The appropriate timing of activity, accounting for weather conditions, avoids wastage of inputs and damage tobiological features of agricultural land (e.g. pollution of rivers from fertiliser application).


Description of the response(s)Management plans that apply to irrigation, pesticide and fertiliser use, should consider weather events).

C14. Signoff

C-FI

(C-FI) Use this field to provide any additional information or context that you feel is relevant to your organization's response.Please note that this field is optional and is not scored.

C14.1

(C14.1) Provide details for the person that has signed off (approved) your CDP climate change response.

Job title Corresponding job category

Row 1 Chief Supply Chain Officer Other C-Suite Officer

Submit your response

In which language are you submitting your response?English

Please confirm how your response should be handled by CDP

Public or Non-Public Submission I am submitting to

I am submitting my response Public InvestorsCustomers

Please confirm belowI have read and accept the applicable Terms

CDP Page of 122122

unilever plc - climate change 2019 · unilever’s purpose is to make sustainable living...

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