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Unilever Sustainable Living Plan

Unilever Sustainable Living Plan
by

Luis Soares

on 9 June 2013

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Transcript of Unilever Sustainable Living Plan

photo credit Nasa / Goddard Space Flight Center / Reto Stöckli progress in 2012 Improving more than a billion people to improve their hygiene habits
Promoting the benefits of hand washing with soap at key times (reducing diarrhea and respiratory disease)
Encourage children and their parents to brush their teeth day and night
Help millions of young people improve their self-esteem & business success
Aim for zero workplace injuries
Bringing safe drinking water to 500 million people (making it available and affordable) 3. Growth strategy Unilever: opportunities 2. Business model Unilever - Externalities and challenges  
Externalities and sustainability challenges:

Fragile customer confidence puts volume growth and costs under pressure; the latter are necessary to scale up and reach customers all around the globe.

Trustworthy partnerships with suppliers key-condition for success.

Engagement with local authorities and governments necessary.

Changing or incorporating new habits of people is very difficult.

Environmental and social demographic challenges (water scarcity, growing resource constraints, under nutrition, inequality, rising levels of unemployment) Emerging economies will be most affected by the consequences of climate change and environmental degradation
No longer a choice between growth and ecological well-being
Need to improve the living standards of the world’s population while preserving the environment
“Vision 2050 lays out the challenges, pathway and options that business can use to
create an opportunistic strategy, both regionally and globally, that will lead to a
sustainable world.” Mohammad A. Zaidi, Alcoa



Challenge of sustainable development: meeting human demands within the ecological limits of the planet. 1. Global sustainability trends & challenges:
planet resource utilisation Business-as-usual is sending us on a trajectory to consume 2.3 planet’s worth of ecological resources in 2050.
By 2050 = 9 billion people and only one planet 1. Global sustainability trends & challenges:
planet resource utilisation Unilever
Sustainable Living Plan progress in 2011 2. Business model Unilever 1. Global sustainability trends & challenges:
human development & ecological impact 1. Global sustainability trends & challenges
2. Business model Unilever
- externalities
- sustainability challenges
3. Growth strategy Unilever
- opportunities
- sustainability challenges
- key achievements so far
4. Sustainability reporting
5. Business models and growth strategies of our companies:
- Renewable Ethanol Industry Contents: Exponential increase in demand for energy and natural resources to meet needs and aspirations of growing and increasingly urbanized population in emerging economies – growing pressure on world’s ecosystems 1. Global sustainability trends & challenges:
population growth 3. Growth strategy Unilever “Double the size of our business
whilst reducing our environmental footprint
& increasing our positive social impact” Who we are:
Aouatif Tawfik
Clarissa Alfrink
Hilde Mulder
Joan Bolet
Karthik Govind
Luis Soares Billions of inhabitants Challenge of sustainable development: meeting human demands within the ecological limits of the planet. 1. Global sustainability trends & challenges Helping countries either improve their levels of development or reduce their ecological impact (several countries face both challenges):
Accept the constraints and opportunities of a world in which 9 billion people live well and within the limits of the planet
Redefine success and progress at national, corporate and individual levels
Increasing bio-productivity
Develop solutions to lower ecological impacts while maintaining quality of life in countries that have high human development
Improve levels of human development in countries below the threshold for high human development without increasing their ecological impact beyond acceptable limits. What does a sustainable world look like?
How can we realize it?
What are the roles business can play in ensuring more rapid progress toward a sustainable world? 1. Global sustainability trends & challenges Sustainable living at the heart of the business model,
Profitable volume growth is the basis of the virtuous circle of growth,
Stronger brands and innovation are the key drivers behind it. 3. Growth strategy Unilever “Double the size of our business
whilst reducing our environmental footprint
& increasing our positive social impact” Double the proportion within the portfolio that meets the highest nutritional standards
Reduce salt levels
Reduce saturated fats as much as possible and increase levels of essential fats
Remove trans fat originated from partially hydrogenated vegetable oil
Reduce sugar levels in ready-to-drink teas
100% of children ice reams will contain <110kcal
Motivate 100 million people to take the Heart Age test
Provide clear, simple labeling
Lamplighter program improves nutrition, fitness & mental health of employees 3. Growth strategy Unilever: opportunities Source 100% of agricultural raw materials sustainably
Purchase the following from certified sources only
palm oil & soy beans
Tea
Fruit & cocoa
Sugar
Rapeseed oil
Dairy produce
Sustainable paper and board
Use cage-free eggs for all products
All flavors of Ben&Jerry’s ice cream will be Fair trade certified
Engage smallholder farmers and small-scale distributors
Help improve agricultural practices
Increase number of entrepreneurs 3. Growth strategy Unilever: opportunities 3. Growth strategy Unilever: opportunities Halve the greenhouse gas impact of the products across the life cycle
Help consumers reduce their greenhouse gas emissions whilst washing (skin cleansing & washing clothes) and showering (hair washing)
Reduce emissions from energy in factories & offices
Double use of renewable energy
Reduce emissions from global logistics network (looking at vehicles, mileage and efficiency of warehouses)
Reduce emissions from refrigeration (accelerate roll-out and use climate-friendly refrigerants)
Reduce employee travel 3. Growth strategy Unilever: opportunities Halve the water associated with consumer of Unilever products
Reduce water use in laundry process, skin cleansing and hair washing
Reduce water use of suppliers & partners in agriculture
Reduce water abstraction in the manufacturing process
Halve the waste associated with the disposal of products
Reduce the weight of packaging
Increase recycling and recovery rates (partnerships governments and NGO’s)
Provide consumers with refills
Develop and implement sustainable business model for handling sachet waste streams
Reduce waste from manufacturing process & office use
Eliminate PVC 3. Growth strategy Unilever: Sustainability challenges Challenge in general: Decoupling growth from environmental impact and negative social impact.

The largest sustainability challenge for Unilever: create impact on a large scale. This involves influencing their own way of conducting business, the way their suppliers conduct business and most importantly the behaviour of consumers ( a large % of environmental footprint lies with consumer).

1. The biggest challenge for Unilever in pursuing its growth strategy is driving consumer behaviour: inspiring people to take small every day actions that will add up to the big difference that is needed to reduce the use of natural resources and tackle the scarcity issue. Only this will enable Unilever to decouple growth from environmental impact. Unilever frames this challenge positively. Unilever’s CEO Paul Polman “In our model the consumer is in charge and we make the change happen with the consumer.”

2. The second biggest challenge for Unilever is with their supply chains. Especially beyond 1st and 2nd tier suppliers, the more far away the less Unilever can influence. Encouraging suppliers to partner with their suppliers for improvement needed to fit the standards is an important effort. A vertical supply chain is essential. How to reach the number of people they aim for?

Which NGO/social partnerships can help achieve our goals?

Need to develop a more holistic approach to inter-related issues of water, sanitation and hygiene

Reducing salt (whilst maintaining taste)

Collaboration within the nutrition industry

Providing affordable and commercially viable products

Integrate fortification in the core product portfolio Improving Health and well-being
-challenges- How to deal with markets where influence is low due to small volumes?

Real challenge is not the certifications but how sustainability can influence the lives of farmers, the environment and communities

Transforming the global supply chain together with other stakeholders

Identifying sustainable improvements of mineral mining in order to have visibility in origins and extraction sites

Develop effective yet affordable method for impact assessment Enhancing livelihoods
-challenges- How to reduce the amount of (heated) water people need (understanding people’s showering habits, investigating dry shampoo, wash clothes at lower temperature)

How to deal with the water problem in countries where water is scarce?

Partnerships with governments, NGO’s and consumers to address & manage water use, pricing and metering

Increase control over value chain in recycling process

Increase capacity to engage governments and stakeholders Reducing environmental impact
-challenges- 3. Key Achievements so far. target for 2020 3. Key Achievements so far. Unilever Sustainable Living Plan (USLP) 3. Key Achievements so far. 3. Key Achievements so far. achieved a quarter of its target in 2 years
STAKEHOLDER FEEDBACK ON OUR REPORTING
As part of our reporting process, we get feedback from our Unilever Sustainable Living Plan Steering Team, our Board’s Corporate Responsibility Committee and the Unilever Sustainable Development Group of external advisers, as well as our employees and specialist opinion formers

SCOPE
In our reporting we aim to cover our economic, social and environmental impacts. We include performance data for our direct operations and a discussion of issues arising in our extended value chain.

INDEPENDENT ASSURANCE
Acting upon PwC’s recommendations and the lessons learned are helping to inform our future work.  UNILEVER SUSTAINABLE LIVING PLAN: PROGRESS REPORT 2012

Hard copy Unilever Sustainable Living Plan: Progress Report 2012 summarizes the performance against the targets set out in the Plan.
Our website is our principal means of reporting.

WHO ARE THE AUDIENCES FOR OUR REPORTS?

Our reports are aimed at a broad range of audiences, including employees, customers, consumers, suppliers, investors, governments and opinion formers in the fields of sustainability and business responsibility. 4. Sustainability reporting via “aspirational learning approach” EXTERNAL STANDARDS & INDEXES
We assess our performance against the Global Reporting Initiative’s (GRI) G3 guidelines. (Recognized international principles for non-financial reporting). In 2012 B+ on GRI levels.
Accountability 1000 Assurance Standard’s practice of ‘inclusivity’.
We are a signatory to the UN Global Compact principles. We provide an annual update in our Communication on Progress on how we are living out the Compact’s ten principles on human rights, labor, environment and anti-corruption in our everyday business operations. 
The Millennium Development Goals (MDGs) set out eight global targets for governments to reach by 2015, ranging from halving world poverty to halting the spread of HIV/AIDS.  

External ratings: Oxfam Approved on April the 23rd (2009)
In 2011: all the raw material for biofuel production must fulfill its requirements. Renewable Energy Directive (RED).




Abengoa Bioenergy ‘s Voluntary Scheme to certificate its products, which meets RED requirements 5. Application to our companies:
Renewable Ethanol Industry THANK YOU Opportunities video
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