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Unilever Pakistan Sustainability Report 2012

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SUSTAINABILITY REPORT 2012 Unilever Pakistan Double the size of the business, whilst reducing our environmental footprint and increasing our positive social impact. Contents Our Vision 02 Unilever Pakistan Limited and Unilever Pakistan Foods Limited, collectively referred to as Unilever Pakistan in this - Embedding Sustainability Globally 03 report, are subsidiaries of Unilever PLC and CONOPCO Inc. - Unilever Sustainable Living Plan in 2012 05 respectively, which operate in over 100 countries. - Global Impact Statement 07 Established in Pakistan in 1948, Unilever Pakistan is - Unilever Pakistan Sustainable Living Plan Highlights 2012 08 amongst the country’s oldest and largest consumer goods - Local Impact Statement 09 companies. Its brands such as Blue Band, Lux, Lifebuoy, Lipton, Knorr, Rafhan, Surf and Wall’s are known for their consistent high quality and are trusted and consumed daily Improving Health and Well-Being 10 by millions of people across Pakistan. Lifebuoy reaches out to thousands of children through its - Health and Hygiene 11 handwashing campaign, raising standards of hygiene; Lux - Nutrition 14 promotes film, fashion and music through the iconic Lux Style Awards; Sunsilk partners PFDC in the fashion weeks; Close Up and Pepsodent raise awareness on oral health Reducing Environmental Impact 18 while Knorr and Blue Band support nutrition. Unilever Pakistan also runs various initiatives to enhance - Green House Gases 19 livelihoods, conserve water and energy, reduce carbon - Water 22 emissions and waste and promote recycling. - Waste 24 Enhancing Livelihoods 26 For more information please visit: www.unilever.com/sustainable-living and www.unilever.pk Community Development 29 About this Report: This report, for the period 01 January – 31 December 2012, gives an overview of Unilever Pakistan’s efforts and contribution to the Unilever Sustainable Living Plan, the global blueprint for achieving our vision. It also covers the community development initiatives undertaken by Unilever Pakistan. Pages 2 – 7 of this report pertain to Unilever’s global progress against the Unilever Sustainable Living Plan launched globally in November 2010. POSITIVE “OUR VISION DOUBLE THE SOCIAL IMPACT SIZE OF THE BUSINESS, WHILST DOUBLE THE BUSINESS REDUCING OUR ENVIRONMENTAL FOOTPRINT AND INCREASING OUR POSITIVE SOCIAL IMPACT We will lead for the responsible growth, inspiring people to take small everyday actions that will add up to a big difference. REDUCE We will grow by winning shares and building markets everywhere. ENVIRONMENTAL ” FOOTPRINT OUR COMPASS The volatility and uncertainty facing the world First developed in 2009, the Compass was remain the “new normal” and are set to last for sharpened in 2012 but its core elements the medium term. These ongoing pressures – remained the same. economic, social and environmental – frame our In 2012 we added our new purpose “To make approach to our business strategy and our sustainable living commonplace”. This builds on business model. the original purpose of our 19th century We call our business strategy “the Compass” founder, William Lever, “to make cleanliness since it sets out a constant path for Unilever for commonplace”. the long term. The Compass lays out our The Compass gives life to our determination to ambitious vision and purpose, and defines four build a sustainable business for the long term “Winning with” pillars within the business that and to find new ways to operate that do not just help us both: brands and innovation; marketplace; take from society and the environment. This is continuous improvement; and people. Our captured in the Unilever Sustainable Living performance against these pillars is explained in Plan (USLP). our Annual Report and Accounts 2012. 02 EMBEDDING SUSTAINABILITY GLOBALLY PLEASE NOTE THAT ALL INFORMATION ON THIS PAGE RELATES TO OUR GLOBAL BUSINESS AND SUSTAINABLE LIVING PLAN PROGRESS REPORT 2012 In order to realise sustainable growth, we are By focusing on sustainable living needs, we can build Roundtable on Sustainable Palm Oil. We take part in integrating sustainability into our strategy, brands with a significant purpose. By reducing waste, we initiatives such as the World Economic Forum’s New Vision create efficiencies and reduce costs, which help to improve for Agriculture and the UN’s Scaling Up Nutrition (SUN) brands and innovation. We are working with our margins. By taking a long term view, we can reduce and Zero Hunger Challenge which tackle the challenge of our customers and suppliers, engaging risk for example securing raw material supply through high levels of under-nutrition and hunger in the world. employees and forging new partnerships. sustainable sourcing. And we have found that once we start Sustainable business contribution in line with their looking at product development, sourcing and positioning. Similarly, our Five Levers for Change manufacturing through a sustainability lens, it opens up methodology is helping our brands prompt consumers to great opportunities for innovation. adopt new behaviours. Innovation is critical to achieving our OUR GLOBAL BUSINESS STRATEGY sustainable living goals. We are committing a significant Our product category and functional teams are playing a proportion of our R&D budget to finding sustainability-led With 7 billion people on our planet, the earth’s resources central role in driving sustainable growth. They review technologies. We are also supporting the can be strained. This means sustainable, equitable growth progress against their targets quarterly. We are linking commercialisation of innovative technologies through our is the only acceptable model of growth for our business. progress to reward with sustainable business goals in the investment arm, Unilever Ventures. We believe growth and sustainability are not in conflict. In remuneration of a growing number of managers. This fact, in our experience, sustainability drives growth. includes the CEO and several members of the Unilever We have updated the tools we use to evaluate the Leadership Executive. We have sustainability champions environmental impacts of new products and packaging, covering every key function, category and country. known as Innovation Process Management. We use a simple traffic light system to compare the potential impacts of an innovation with the products we currently BRANDS AND INNOVATION market as well as the impacts on our category portfolio. We are accelerating the integration of sustainability into our brands. Brands are developing their own USLP THE MARKETPLACE ambition – for example Knorr has chosen sustainable sourcing. Our Brand Imprint model enables us to take a Many retailers have sustainability goals. For the last three 360-degree view of the social, environmental and economic years, we have worked on ‘A Better Future Starts at Home’, impacts of brands and – among other outputs – triggered a joint shopper programme with Tesco countries to achieve Lipton’s decision to source its tea sustainably. We are now these goals together. applying the methodology to help brands make a development goals to succeed the Millennium Development Goals. Our CEO was subsequently invited to WORKING WITH OUR SUPPLIERS join the UN Secretary General’s High Level Panel to review In 2011 Unilever launched a programme called Partner to the post-2015 Development Agenda. Win, to work more closely with its key suppliers, including We recognise the scale of change that is needed and we on sustainable practices. In particular, we are developing are stepping up our engagement in multi-sector and partnerships with our agricultural raw material suppliers cross-sector stakeholder groups, such as the Tropical to achieve our sustainable sourcing goal. Forest Alliance 2020, Refrigerants, Naturally! And the 03 Unilever Pakistan Sustainability Report 2012 PEOPLE THREE KEY FEATURES OF OUR PLAN Our vision of creating a sustainable business is motivating for employees, but it is not always clear to them how to apply it to their role. We integrate sustainability into • Spans our entire portfolio of brands and all countries in which we sell our products. existing training and have created bespoke training, for example, new brand managers engage in a week-long • Has a social and economic dimension – our products make a difference to health and sustainable marketing challenge during their foundation well-being, and our extended supply chain supports the livelihoods of many people. course. • When it comes to the environment, we work across the whole value chain – from the sourcing of raw materials to the way consumers use our products. COLLABORATION WITH PARTNERSHIPS Global issues such as deforestation, water scarcity and under-nutrition are too complex for any single 25% 4% 2% 68% 1% organisation to tackle alone. We are engaging with governments to create an environment in which the big + + + + sustainability challenges can be tackled. At the UN Conference on Sustainable Development in Rio Manufacture Transport in 2012 we urged collaboration to agree Sustainable Development Goals to succeed the Millennium Development Goals. INVESTING IN SUSTAINABLE BUSINESS INNOVATION IN MANUFACTURING Through Unilever Ventures, we are investing in early and Many employees have sustainable business ideas and our mid-stage companies with new technologies and manufacturing team has set up a ‘Small Actions, Big compelling business models that are of strategic relevance Difference’ budget to make them happen. Factory to Unilever. Sustainable business is a key factor
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