UNILEVER SUSTAINABLE LIVING PLAN SUMMARY OF PROGRESS 2016 SUSTAINABILITY MAKES BUSINESS SENSE

Our business grew in 2016 – DELIVERING SUCCESS The USLP makes us more competitive – and grew in a way that was IN A VOLATILE WORLD it helps to build our brands, spurs innovation, consistent, competitive, The slowing global economic growth and strengthens our supply chain, lowers costs and risks, and is building trust. Sustainability profitable and responsible. geopolitical instability that marked 2016 highlighted once again that progress is creating value for and society. Our Unilever Sustainable Living Plan (USLP) cannot be taken for granted – for business or for the world. While we always have more is at the heart of our strategy for achieving Sustainable business growth. Since its launch in 2010 it work to do, our ability to deliver growth in living brands has provided a blueprint for achieving our this context reinforces our commitment to vision to grow our business whilst reducing our USLP. We believe that the path we have GREW our environmental footprint and increasing set ourselves is both the right one, and the our positive social impact. best. It is helping us build value in the short-term and it will lead to us achieving 50% Our USLP is based on a simple business our purpose as a business: making FASTER than the rest of imperative: that responsible growth is sustainable living commonplace. the only model that will succeed in a world the business of changing consumer expectations and dynamic market trends.

LIVING OUR PURPOSE

Unilever has now seen 8 years of hygiene programmes, and providing or access to education will soon, in my view, top line progress, averaging twice livelihoods to millions more, especially have no reason for being. There is no the rate of overall market growth, through our focus on women’s empowerment. business case for enduring poverty and no The USLP is also guiding our M&A activity, reason to accept companies that are run for whilst simultaneously improving including last year’s acquisitions of Blueair, the benefit of a few at a cost to many. the bottom line. a company focused on air purification, and There are still many challenges to overcome, Seventh Generation, a home and personal including the short-term focus of financial Not easy to do in today’s environment. care business that uses plant based markets, the difficulty in giving social or Unsurprisingly, shareholders have benefited ingredients, which thinks seven generations environmental capital a true value and with a return of over 200%. ahead in all it does. political systems too often focused on the next For Unilever, shareholder return is a result Increasingly we are guided by the UN election cycle instead of the next generation. of what we do, but not why we are here. For Sustainable Development Goals which, in Our work with many valued partners has over a hundred years, our goal has been to addressing humanity’s biggest challenges, allowed us to make good progress against improve the lives of the world’s citizens one also provide an enormous opportunity for our targets and we have learned from our day and one person at a time. responsible growth. Indeed, the Business and experience as well as our mistakes. However, Sustainable Development Commission, under for as long as many of our fellow citizens still With his commitment to making cleanliness the incredible leadership of Mark Malloch feel excluded from a decent life or from equal commonplace and improving lives, William Brown, calculated that the SDGs offer a opportunities, there is no reason to celebrate. Lever focused on what he called ‘shared $12 trillion economic opportunity and can prosperity’. Our mission has not changed create up to 380 million new jobs. We simply and humbly request your continued much since then and with the Unilever help. It is only in deep partnerships, based on Sustainable Living Plan we are still showing At a time when we have difficulties growing trust and mutual respect, inclusion and there is a different way of doing business – our economies and creating employment, intergenerational thinking, that we can solve one based on multiple stakeholders rather the cost of not acting is becoming more our many challenges. More than ever, we are than a single-minded focus on shareholders. expensive. With 9% of global GDP devoted committed to living our purpose and to conflict prevention or wars, and climate continuing to use the USLP as a blueprint for We have made great progress. Our results change costing 5%, it is easy to see why – growth. Together we can create a better world show that it is good for business, with both morally and economically – we need for all, now and for generations to come. increasing evidence that our purpose-driven to act. brands do better. Our 18 Sustainable Living Brands grew 50% faster and account for Companies that cannot show they are making 60% of total growth. We are already reaching a positive impact in addressing challenges Paul Polman hundreds of millions with health and like hunger, climate change, gender equality Chief Executive Officer, Unilever OUR 2016 PROGRESS

In 2016 we continued to see evidence be difficult. Since 2010, the water impact of that sustainability is driving our our products has reduced by around 7%, 95% of our top 13 vegetables business growth. Our Sustainable while the waste associated with consumer disposal of our products has reduced by and herbs are Living brands grew 50% faster than sustainably around 28%. But the greenhouse gas impact sourced the rest of the business and delivered of our products across their lifecycle, over 60% of our growth. including consumer use, continues to edge up and has now increased by around 8% Our USLP has three big goals: to help since 2010. Despite the challenges, we are more than a billion people improve their fully committed to a value chain approach health and well-being by 2020, to halve the and to becoming carbon positive in our own environmental footprint of our products operations. Further, in January 2017 we across the value chain by 2030, and to announced a commitment to ensure that all enhance the livelihoods of millions of of our plastic packaging is fully reusable, seen steady progress. In 2016, 67% of our people by 2020. recyclable or compostable by 2025. procurement spend was through suppliers meeting our Responsible Sourcing Policy’s SUCCESS IN OUR OPERATIONS, BUT ENSURING POSITIVE IMPACTS mandatory criteria and we enabled around VALUE CHAIN CHALLENGES REMAIN THROUGH OUR SUPPLY CHAIN 920,000 women to access initiatives We have made good progress on many of Sustainable sourcing remains a central designed to promote their safety, develop our USLP goals. By the end of 2016, we had element of our USLP, and we continue to their skills or expand their opportunities. helped 538 million people improve their develop our sourcing policies to make sure We have helped around 650,000 smallholder health and well-being. In our manufacturing we are having the greatest impact. We have farmers to access initiatives aiming to operations, we have cut CO2 from energy by therefore moved away from GreenPalm improve their agricultural practices. And we 43%, water abstraction by 37% and total certificates for palm oil towards what are have helped 1.5 million small-scale retailers waste disposed by 96% per tonne of called ‘physical, certified sources’ – which has to access initiatives aiming to increase their production since 2008. meant a reduction in our sustainably sourced incomes. However, this is a reduction on the agricultural raw materials performance, We have made the biggest gains in areas 1.8 million we helped in 2015, following a from 60% in 2015 to 51% in 2016. over which we have most control, but reassessment of the number of stores in reducing the environmental impact of how Our third USLP goal – to enhance the India that can benefit from our Perfect consumers use our products continues to livelihoods of millions of people – has Stores programme.

SUNLIGHT: FREEING TIME FOR WOMEN, WINNING MARKET SHARE Sunlight, part of our global brand, is having a big impact in South Africa with its new handwashing laundry powder, which uses our ground-breaking SmartFoam technology to break down suds faster. In drought-affected South Africa, where women still do the majority of laundry by hand, reducing the number of rinses required to wash laundry can make a real social difference by liberating women’s time as well as saving water. As consumers benefit, so does our business – Sunlight’s HELLMANN’S: CONNECTING market share is up by 2.6% versus 2015. CONSUMERS TO REAL FOOD Where does the food we eat come from – and how do we know it is what Hellmann’s call ‘Real Food’? To help answer that question for Canadian consumers in 2016, Hellmann’s 2.6% launched ‘Project Seed’ – a campaign that connected children and their parents with GROWTH the farms on which our ingredients are in market share grown. This showed them what it means in 2016 for a farm to achieve our Blue Ribbon Farm status by meeting our criteria for sustainable sourcing. Unscripted, live-streamed farm visits were at the heart of the campaign – and a 6% growth in sales supports our belief that consumers agree that if you care 6% about food, you care about how it is sourced. SALES GROWTH SUVIDHA: OPENING NEW MARKETS WHILE IMPROVING HYGIENE We opened the first of our Suvidha community centres on World Toilet Day in 2016. Based in one of Mumbai’s largest slums, Suvidha will help 1,500 people from low-income households who face severe challenges because hygiene infrastructure is either scarce or expensive 60% to use. The pay-per-use centre brings together , Pureit and to deliver safe WATER drinking water, flushing toilets, clean showers needs met through and laundry facilities, all at an affordable HARNESSING OPERATIONAL rainwater harvesting cost. Applying circular economy principles, and recycling Suvidha recycles water used for washing to ECO-EFFICIENCY IN WORLD flush the toilets – bringing environmental CLASS FACTORIES benefits, as well as improving hygiene Operational eco-efficiency technologies for thousands of people and increasing the in our factories not only reduce the profile of some of our core brands. environmental impact of the manufacture of our products, they also help us avoid costs. Our Aguai factory in Brazil, opened in 2015, is a great example. As well as meeting the Zero Waste to Landfill target achieved by all Unilever factories, it also uses solar energy to power all the needs of the site, uses LEDs and skylights to reduce power requirements, and is expected to meet 60% of its water needs through rainwater harvesting and water recycling. Globally, the costs avoided through eco- efficiency in manufacturing have exceeded €700 million since 2008.

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

For further information on our social, economic and environmental performance, please visit our website www.unilever.com/sustainable-living UNILEVER SUSTAINABLE LIVING PLAN: PROGRESS IN 2016

The Unilever Sustainable By 2020 we will help By 2030 our goal Our greenhouse gas By 2020 we will We have made steady Living Plan sets out to IMPROVING enhancing more than a billion people REDUCING is to halve the impact has increased enhance the livelihoods progress across our decouple our growth HEALTH AND take action to improve their environmental and our water and livelihoods for of millions of people as Enhancing Livelihoods from our environmental ENVIRONMENTAL health and well-being. footprint of the waste impacts per we grow our business. commitments. footprint, while increasing WELL-BEING for IMPACT by making and use consumer use have our positive social impact. more than We have helped 538 million millions people take action to improve of our products reduced since 2010. Our Plan has three big goals their health and well-being. as we grow our to achieve, underpinned 1 billion 1/2 business.* by nine commitments and targets spanning our social, environmental and economic performance across the value chain. HEALTH AND NUTRITION Greenhouse Water Waste Sustainable Fairness in the Opportunities Inclusive We will continue to work HYGIENE We will continually work to gases Our products in use: Our products: sourcing workplace for women business with others to focus on those By 2020 we will help more improve the taste and Our products’ lifecycle: Halve the water associated Halve the waste associated By 2020 we will source By 2020 we will advance By 2020 we will empower By 2020 we will have a areas where we can drive than a billion people to nutritional quality of all our Halve the greenhouse gas with the consumer use of with the disposal of our 100% of our agricultural human rights across our 5 million women. positive impact on the lives + the biggest change. improve their health and products. The majority of (GHG) impact of our our products by 2020. products by 2020. raw materials sustainably. operations and extended of 5.5 million people. our products meet, or are More detail on our progress hygiene. This will help products across the † supply chain. 920,000 reduce the incidence of better than, benchmarks lifecycle by 2030. can be found in our online -7% -28% 51% women enabled to access 650,000 life-threatening diseases based on national nutritional Sustainable Living Report our water impact per our waste impact per of agricultural raw 67% initiatives aiming to smallholder farmers and like diarrhoea. recommendations. Our 2016 at www.unilever.com/ +8% consumer use has reduced consumer use has reduced materials sustainably of procurement spend promote their safety, commitment goes further: by around 7% since 2010* by around 28% since 2010* sustainable-living. our greenhouse gas impact sourced by end 2016 through suppliers meeting develop their skills or † by 2020, we will double the expand their opportunities l 1.5 mILLION 538 mILLION per consumer use has our Responsible Sourcing proportion of our portfolio increased by around Policy’s mandatory small-scale retailers people reached by Our manufacturing: Our manufacturing: that meets the highest 8% since 2010* requirements end 2016 By 2020 water abstraction By 2020 total waste sent nutritional standards, based enabled to access on globally recognised by our global factory for disposal will be at or We continued to embed initiatives aiming to Our manufacturing: network will be at or below 2008 levels despite human rights, focusing on improve agricultural dietary guidelines. This will practices or increase By 2020 CO2 emissions below 2008 levels despite significantly higher 8 salient issues in our help hundreds of millions l from energy from our Human Rights Report incomes of people to achieve a significantly higher volumes. factories will be at or volumes. healthier diet. † Our Total Recordable below 2008 levels despite † -96% Frequency Rate for safety significantly higher † -37% reduction in total waste improved to 1.01 per million 35% volumes. per tonne of production Sustainable palm oil hours worked of our portfolio by volume reduction in water Build a gender-balanced abstraction per tonne since 2008 met highest nutritional † Paper and board organisation with a focus on management standards in 2016 -43% of production since 2008 Reduce diarrhoeal and Soy beans and soy oil respiratory disease reduction in CO2 from Promote safety for women through handwashing energy per tonne of Tea in communities where we production since 2008 operate Provide safe drinking 67 Fruit † Enhance access to training water† Improve livelihoods of 92 Vegetables † and skills Improve access to smallholder farmers sanitation Cocoa Expand opportunities in our value chain Improve incomes of Improve oral health Sugar † small-scale retailers Improve self-esteem Sunflower oil Increase participation of Implement UN Guiding young entrepreneurs in Rapeseed oil Principles on Business and our value chain Reduce waste from Human Rights Reduce salt levels Reduce water use in manufacturing: Dairy Source 100% of manufacturing process: Zero non-hazardous Saturated fat: 77 Fairtrade Ben & Jerry’s procurement spend in line New factories waste to landfill with our Responsible 92 Reduce saturated fat New factories Cage-free eggs Become carbon positive in Reduce water use in the laundry Sourcing Policy 92 Increase essential manufacturing: fatty acids process: Reusable, recyclable Increase sustainable Create framework for fair Source all energy Products that use less or compostable sourcing of office materials compensation Reduce saturated fat in plastic packaging more products renewably water Source grid electricity Improve employee health, Reduce packaging Remove trans fat renewably Reduce water use in nutrition and well-being Eliminate coal from agriculture Recycle packaging: Reduce sugar Reduce workplace injuries energy mix Increase recycling and and accidents † Reduce calories: Make surplus energy recovery rates available to communities In children’s ice cream Increase recycled content New factories In more ice cream products KEY 66 Tackle sachet waste Reduce GHG from washing 86 Provide healthy eating clothes: 99 Eliminate PVC Achieved by target date * Our environmental targets are information expressed on a ‘per consumer Reformulation Reduce office waste: On-plan for target date use’ basis. This means a single Reduce GHG from Recycle, reuse, recover use, portion or serving of a Off-plan for target date product. transport Reduce paper consumption + In seven water-scarce countries Reduce GHG from 73 Eliminate paper in % % achieved by target date processes representing around half the refrigeration world’s population. Reduce energy l In 2016 around 300,000 women consumption in our offices accessed initiatives under both Opportunities for Women and Reduce employee travel Inclusive Business. † PricewaterhouseCoopers (PwC ) assured. For details and the basis of preparation, see www.unilever. com