Unilever Sustainable Livin Plan

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PRO$RESS REPORT 2012

UNILEVER SUSTAINABLE LIVIN$ PLAN STRATE$Y PRO$RESS ON THE PLAN > $OVERNAN4E >

1 Our Ihang'ng World 12 Health and Hyg'ene 50 Uovernance and External Iommentary 2 Ih'ef Execut've Off'cer’s Rev'ew Improv)ng hyg)ene and promot)ng well-be)ng 52 Ver'f'cat'on and Metr'cs 4 Our Iompass Strategy 18 Nutr't'on Help)ng people make healthy cho)ces 5 Our Bus'ness Model 24 Ureenhouse Uases 6 Embedd'ng Susta'nab'l'ty Help)ng to tackle cl)mate change 8 Operat'onal H'ghl'ghts 30 Water 10 Un'lever Susta'nable L'v'ng Plan 'n 2012 Reduc)ng our water use where )t matters most 34 Waste Reduce, reuse, recycle 40 Susta'nable Sourc'ng Erow)ng for the future 46 Better L'vel'hoods Support)ng econom)c development

In November 2010 we set out the Un)lever Susta)nable L)v)ng Plan (USLP), our bluepr)nt for ach)ev)ng our v)s)on to double the s)ze of the bus)ness wh)lst reduc)ng our env)ronmental footpr)nt and )ncreas)ng our pos)t)ve soc)al )mpact;

ABOUT OUR REPORTIN$ The Un'lever Susta'nable L'v'ng Plan4 Progress Report 2012, publ'shed 'n Apr'l 2013, 's complemented by4 Boundar'es for report'ng • The onl)ne Un)lever Susta)nable L)v)ng Report for 2012; Our webs)te )s our pr)nc)pal means of report)ng; Th)s Progress Report 2012 covers Un)lever’s global It )ncludes more background to our progress on the USLP and the scope of our assurance programme operat)ons for the per)od 1 January-31 December as well as more deta)led )nformat)on on our approach to runn)ng a respons)ble bus)ness; It also conta)ns 2012 unless otherw)se stated; Data )s prov)ded for )nd)ces that cross reference our performance to the UN Elobal Fompact Pr)nc)ples, the M)llenn)um Un)lever’s wholly owned compan)es, subs)d)ar)es Development Eoals and Elobal Report)ng In)t)at)ve )nd)cators; and key Qo)nt ventures and l)sted ent)t)es where wwwCun'leverCcom/susta'nable-l'v'ng we have a maQor)ty ownersh)p; • Un)lever’s Annual Report and Accounts 2012L Mak)ng Susta)nable L)v)ng Fommonplace, wh)ch outl)nes The Un)lever Susta)nable L)v)ng Plan )s our bus)ness and f)nanc)al performance )nclud)ng key f)nanc)al and non-f)nanc)al performance )nd)cators; )ndependently assured; Further )nformat)on wwwCun'leverCcom/'nvestorrelat'ons on our approach to assurance can be found on page 52;

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OUR 4HAN$IN$ WORLD

THE 4ONTEXT OUR RESPONSE The Un)lever Susta)nable L)v)ng 9 b?ll?on Plan )s our strateg)c response to People expected on the planet by 20503 populat5on 5s grow5ng by 200,000 a day the unprecedented challenges the world faces; It )s at the heart of our Fompass strategy wh)ch sets out 200 m?ll?on our amb)t)ous v)s)on and purpose; Unemployed today3 600 m5ll5on >obs need to be created over the next decade 2 m?ll?on @h5ldren d5e every year from d5arrhoea OUR PURPOSE and pneumon5a TO MAKE SUSTAINABLE 4l?mate change LIVINE FOMMONPLAFE Is accelerat5ng towards a temperature r5se greater than 2 degrees We work to create a better future every day, w)th brands and serv)ces that help people feel good, look good and get more out of l)fe; Two-th?rds Our f)rst pr)or)ty )s to our consumers – then Of the world could be l5v5ng 5n customers, employees, suppl)ers and water-stressed cond5t5ons by 2025 commun)t)es; When we fulf)l our respons)b)l)t)es to them, we bel)eve that our shareholders w)ll 40% be rewarded; Of the world’s agr5cultural land 5s ser5ously degraded 40% r?se In food pr5ces expected 2010-20 1 ?n 10 Of the adult populat5on 5s obese wh5le almost 1 b5ll5on people go hungry

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Our 4hang?ng World 1 4HIEF EXE4UTIVE OFFI4ER’S REVIEW

VOLATILITY AND UN4ERTAINTY As the th)nk)ng becomes embedded )n W THE NEW NORMAL our bus)ness, there )s )ncreas)ng ev)dence 2012 proved to be another challeng'ng that )t )s accelerat)ng our growth )n ways year for the global economyC Iommod'ty that contr)bute to pos)t)ve change )n markets rema'ned volat'le and costs rose people’s l)ves; s'gn'f'cantly 'n excess of expectat'onsC The threat of the world’s largest economy STRON$ BUSINESS PERFORMAN4E go'ng over a ‘f'scal cl'ff’ and the euro cr's's Un)lever performed well )n 2012, desp)te added uncerta'nty and underm'ned frag'le d)ff)cult econom)c cond)t)ons; consumer conf'denceC Turnover )ncreased by 10;5%, tak)ng Overall we cont)nue to see slugg)sh growth Un)lever through the d50 b)ll)on barr)er, )n most developed markets contrasted by a s)gn)f)cant m)lestone to becom)ng an relat)vely healthy consumpt)on and growth d80 b)ll)on company; Emerg)ng markets )n asp)r)ng markets; These both have grew for the second consecut)ve year by consequences )n terms of the world’s more than 11% and now account for 55% soc)al and env)ronmental equ)l)br)um; of total bus)ness; Personal Fare and Home Fare showed double-d)g)t growth, Inequal)ty and r)s)ng levels of unemployment )n l)ne w)th our strateg)c pr)or)t)es; – espec)ally among young people – place added stra)ns on soc)al cohes)on; But the UNILEVER SUSTAINABLE LIVIN$ PLAN b)ggest challenge )s the cont)nu)ng threat to The Un)lever Susta)nable L)v)ng Plan ‘planetary boundar)es’, result)ng )n extreme (USLP) )nsp)res us to grow )n l)ne w)th our weather patterns and grow)ng resource new purpose to make susta)nable l)v)ng constra)nts; These have an )ncreas)ng commonplace; The lens of susta)nable )mpact on people’s l)ves; l)v)ng )s help)ng us to dr)ve brands that have Put s)mply, we cannot thr)ve as a bus)ness a strong purpose )n people’s l)ves, to reduce )n a world where too many people are costs and take waste out of the system and st)ll excluded, marg)nal)sed or penal)sed to dr)ve )nnovat)on that w)ll make a pos)t)ve through global econom)c act)v)tya where d)fference to the env)ronmental and soc)al nearly 1 b)ll)on go to bed hungry every n)ght, challenges fac)ng us all; The Plan pushes 2;8 b)ll)on are short of water and )ncreas)ng us to th)nk ahead, reduc)ng r)sk and numbers of people are excluded from the mak)ng the bus)ness more res)l)ent for opportun)ty to work; the long term; In 2012 we cont)nued to make good progress OUR VISION FOR $ROWTH del)ver)ng the Plan’s comm)tments; We rema)n conv)nced that bus)nesses that Our factor)es made great str)des )n cutt)ng address both the d)rect concerns of c)t)zens energy, water and waste; For example all and the needs of the env)ronment w)ll our US operat)ons have moved to purchas)ng prosper over the long term; We need to the)r energy from cert)f)ed, renewable bu)ld new bus)ness models that enable sources and more than half our s)tes respons)ble, equ)table growth that )s worldw)de have ach)eved zero non- decoupled from env)ronmental )mpact; hazardous waste to landf)ll; Th)s th)nk)ng l)es at the heart of the Un)lever What makes our comm)tment un)que Susta)nable L)v)ng Plan and our Fompass )s that )t )s across the total value cha)n; v)s)on of doubl)ng the s)ze of the bus)ness We are not only manag)ng our own and wh)lst reduc)ng our env)ronmental footpr)nt upstream operat)ons, but we are also and )ncreas)ng our pos)t)ve soc)al )mpact; determ)ned to help people to l)ve more To ach)eve our v)s)on, we have set clear susta)nably through the )mpact of our goals to halve the env)ronmental footpr)nt products )n the)r l)ves; of our products, to help more than 1 b)ll)on We have ma)nta)ned the momentum people take act)on to )mprove the)r health towards our target of sourc)ng all our and well-be)ng, to source 100% of our agr)cultural raw mater)als susta)nably, agr)cultural raw mater)als susta)nably and reach)ng 36% by the end of 2012; All our to enhance the l)vel)hoods of people across palm o)l )s now covered by EreenPalm our value cha)n; cert)f)cates; We have made a start )n buy)ng

2 4h?ef Execut?ve Off?cer’s Rev?ew Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y PRO$RESS ON THE PLAN > $OVERNAN4E >

THE UNILEVER SUSTAINABLE LIVIN$ PLAN

Our Plan has three b)g goals to ach)eve by 2020L • Help more than 1 b)ll)on people )mprove • Source 100% of our agr)cultural raw the)r health and well-be)ng; mater)als susta)nably and enhance the l)vel)hoods of people across our • Halve the env)ronmental footpr)nt of value cha)n; our products;

traceable o)l; Investment )n a new palm o)l Through work)ng w)th Oxfam on a study Th)s )s why we are work)ng w)th organ)sat)ons process)ng factory )n Indones)a, work)ng of our bus)ness )n V)etnam over 2011-12 we and )n)t)at)ves such as the Fonsumer Eoods w)th partners and other )n)t)at)ves are all have ga)ned )mportant )ns)ghts )nto human Forum, the World Bus)ness Founc)l for help)ng us to make progress towards our and labour r)ghts )n our own and our Susta)nable Development, the World new comm)tment to 100% cert)f)ed suppl)ers’ operat)ons; The study has Econom)c Forum, the Trop)cal Forest All)ance susta)nable palm o)l wh)ch )s traceable )mpl)cat)ons for our global bus)ness; 2020, Refr)gerants, Naturallyf, the Elobal back to the plantat)ons on wh)ch )t )s grown; We are )dent)fy)ng how we can promote Ereen Erowth Forum and the UN’s Zero susta)nable l)vel)hoods for all our workers Hunger Fhallenge and Scal)ng Up Nutr)t)on We are also help)ng to )mprove the and those )n our value cha)ns; )n)t)at)ves; Th)s )s also why I agreed to Qo)n l)vel)hoods of farmers wh)le guarantee)ng the UN Secretary Eeneral’s H)gh Level Panel future suppl)es, and we w)ll )ncreas)ngly In areas where b)g breakthroughs are to rev)ew the Post-2015 Development Agenda; place a spec)al focus on women, due to the needed, we must step up Qo)nt work)ng w)th mult)pl)er effect we know that women have others; Mak)ng more progress on healthy LOOKIN$ AHEAD )n develop)ng soc)et)es; We are work)ng w)th eat)ng, for example, w)ll requ)re act)on Desp)te the scale of the task, I bel)eve many partners, )nclud)ng w)th Ra)nforest across the )ndustry wh)lst governments we are on track to become a susta)nable All)ance on tea for L)pton, w)th Barry w)ll need to take a b)gger lead on act)on to growth company; But one th)ng )s sure Fallebaut on cocoa for Magnum and w)th combat cl)mate change and decarbon)se – th)s w)ll not be poss)ble w)thout the vegetable farmers through Knorr’s energy suppl)es; ded)cat)on and hard work of our 173,000 Susta)nab)l)ty Partnersh)p Fund; Overall )t )s clear that we w)ll need creat)ve colleagues and our many partners around Brands that are start)ng to put the)r as well as sc)ence-based solut)ons )f we the world; They are demonstrat)ng the susta)nable l)v)ng amb)t)on at the heart of are to ach)eve our full amb)t)on by the end power of purpose, mak)ng Un)lever aga)n the)r propos)t)on not surpr)s)ngly enQoyed of the decade; ‘f)t to w)n’; strong growth; L)febuoy soap del)vered I hope th)s report g)ves you a good sense another year of double-d)g)t growth wh)le WORKIN$ WITH PARTNERS of the progress we are mak)ng, and our scal)ng up )ts handwash)ng campa)gns; Partnersh)ps are key to unlock)ng these amb)t)on for the future; Please contact me Our Brush Day and N)ght oral health solut)ons; So I part)cularly want to thank the )f you have comments and suggest)ons that campa)gn, wh)ch encourages parents and partners who are ass)st)ng us to del)ver th)s w)ll help us atL ch)ldren to adopt good brush)ng hab)ts, new bus)ness modelL NEOs who are help)ng reached 49 m)ll)on people and has helped us to address real )ssues, suppl)ers who are Paul_Polman;Susta)nableL)v)ngjun)lever;com our S)gnal brand grow by 22% s)nce 2008; br)ng)ng us solut)ons for susta)nable l)v)ng, and our customers w)th whom we share an Warm regards We see an equal accelerat)on )n amb)t)on to reach consumers at scale; susta)nab)l)ty-led )nnovat)ons, such as great-tast)ng low fat margar)nes w)th W)th scale comes respons)b)l)ty – so we up to 80% less saturated fat than butter must cont)nue to play a leadersh)p role )n (and less env)ronmental )mpact) and more seek)ng solut)ons for global transformat)onal concentrated detergents; )ssues l)ke cl)mate change, food secur)ty and Paul Polman poverty allev)at)on; Fh)ef Execut)ve Off)cer 4HALLEN$ES REMAIN We st)ll face challenges )n some )mportant areas; Scal)ng up to reach 1 b)ll)on people cost-effect)vely w)th hyg)ene programmes that make handwash)ng a hab)t rema)ns a challenge; Equally, we are f)nd)ng that help)ng people to use less hot water and energy when wash)ng, shower)ng and do)ng the laundry )s challeng)ng; We cont)nue to exper)ment w)th ways to tackle th)s, such as detergents wh)ch perform well )n shorter wash cycles, and dry shampoo wh)ch m)ght encourage people to wash the)r ha)r w)th hot water less often;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 4h?ef Execut?ve Off?cer’s Rev?ew 3 OUR 4OMPASS STRATE$Y

POSITIVE SOCIAL IMPACT

OUR VISION DOUBLE THE DOUBLE THE BUSINESS SIZE OF THE BUSINESS, WHILST REDUFINE OUR ENVIRONMENTAL FOOTPRINT AND INFREASINE OUR POSITIVE SOFIAL IMPAFT

We w)ll lead for respons)ble growth, )nsp)r)ng people to take small REDUCE everyday act)ons that w)ll add up to a b)g d)fference; ENVIRONMENTAL FOOTPRINT We w)ll grow by w)nn)ng shares and bu)ld)ng markets everywhere;

OUR 4OMPASS The volat)l)ty and uncerta)nty fac)ng the brands and )nnovat)ona marketplacea The Fompass g)ves l)fe to our determ)nat)on world rema)n the ‘new normal’ and are cont)nuous )mprovementa and people; to bu)ld a susta)nable bus)ness for the long set to last for the med)um term; These Our performance aga)nst these p)llars term and to f)nd new ways to operate that ongo)ng pressures – econom)c, soc)al and )s expla)ned )n our Annual Report and do not Qust take from soc)ety and the env)ronmental – frame our approach to our Accounts 2012; F)rst developed )n 2009, env)ronment; Th)s )s captured )n the bus)ness strategy and our bus)ness model; the Fompass was sharpened )n 2012 but Un)lever Susta)nable L)v)ng Plan (USLP); )ts core elements rema)ned the same; We call our bus)ness strategy ‘the Fompass’, s)nce )t sets out a constant path for Un)lever In 2012 we added our new purpose – for the long term; The Fompass lays out our “To make susta)nable l)v)ng commonplace”; amb)t)ous v)s)on and purpose, and def)nes Th)s bu)lds on the or)g)nal purpose of four ‘W)nn)ng w)th’ p)llars w)th)n the our 19th century founder, W)ll)am Lever, bus)ness that w)ll help us ach)eve bothL “to make cleanl)ness commonplace”;

4 Our 4ompass Strategy Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y PRO$RESS ON THE PLAN > $OVERNAN4E >

Our bus'ness model 's des'gned The )nputs to the model, l)ke The outputs of the model are to del'ver susta'nable growthC those of all maQor packaged threefoldL susta)ned growtha OUR For us, susta'nab'l'ty 's 'ntegral goods manufacturers, are lower env)ronmental )mpacta to how we do bus'nessC In a threefoldL brandsa peoplea and and pos)t)ve soc)al )mpact; BUSINESS world where temperatures operat)ons; These map d)rectly These al)gn d)rectly w)th are r's'ng, water 's scarce, on to our Fompass ‘W)nn)ng our v)s)on statement; energy 's expens've, san'tat'on w)th’ p)llars – both cont)nuous The d)agram below represents MODEL 's poor 'n many areas and food )mprovement and the market our v)rtuous c)rcle of growth; suppl'es are uncerta'n and place p)llars support the It summar)ses, s)mply, how we expens've, we have both operat)ons strand of the model; der)ve prof)t from the appl)cat)on a duty and an opportun'ty to The d)fferent)ator )n our of our bus)ness model; address these 'ssues 'n the bus)ness model )s our USLP and way we do bus'nessC the goal of susta)nable l)v)ng;

OUR BRANDS OUR OPERATIONS OUR PEOPLE SUSTAINABLE LIVING Strong brands and )nnovat)on On any g)ven day 2 b)ll)on Susta)nable, prof)table growth For us, susta)nable, equ)table are central to our amb)t)on to consumers use our products can only be ach)eved w)th the growth )s the only acceptable double )n s)ze; We are )nvest)ng and we want to reach many r)ght people work)ng )n an bus)ness model; Bus)ness )n brand equ)ty, f)nd)ng and more, by develop)ng )nnovat)ve organ)sat)on that )s f)t to w)n, needs to be a regenerat)ve strengthen)ng the connect)ons products that address d)fferent w)th a culture )n wh)ch force )n the system that g)ves between consumers and the consumer needs at d)fferent performance )s al)gned w)th )t l)fe; For example, by reduc)ng products they buy; Where equ)ty pr)ce po)nts; To do th)s we use values; We are )ncreas)ngly waste, we create eff)c)enc)es )s strong, we are leverag)ng )t – our global scale to help del)ver an ag)le and d)verse bus)ness and reduce costs, help)ng creat)ng eff)c)enc)es by focus)ng susta)nable, prof)table growth w)th people mot)vated by do)ng to )mprove marg)ns wh)le on fewer, b)gger proQects that by seek)ng to add value at good wh)le do)ng well; We reduc)ng r)sk; Meanwh)le, enhance marg)ns; And we are every step )n the value cha)n are bu)ld)ng capab)l)ty and look)ng at more susta)nable seek)ng super)or products by enhanc)ng product qual)ty leadersh)p among our people ways of develop)ng products, wh)ch consumers w)ll prefer, and customer serv)ce, and and attract)ng some of the best sourc)ng and manufactur)ng dr)v)ng prof)table growth; roll)ng out )nnovat)ons faster talent )n the market place; opens up opportun)t)es for across all markets; )nnovat)on wh)le )mprov)ng the l)vel)hoods of our suppl)ers;

PROFITABLE COST BRAN VOLUME OUR DS LEVERAGE + GROWTH EFFICIENCY

SUSTAINABLE LIVING

O N

U O I R T P A E R O E P P L O E R OU

INNOVATION + MARKETING INVESTMENT

A VIRTUOUS 4IR4LE OF $ROWTH

PROFITABLE VOLUME GROWTH COST LEVERAGE + EFFICIENCY INNOVATION + MARKETING Prof)table volume growth )s the bas)s of the Prof)table volume growth allows us INVESTMENT v)rtuous c)rcle of growth; Stronger brands to opt)m)se the ut)l)sat)on of our Lower costs and )mproved eff)c)ency enable and )nnovat)on are the key dr)vers beh)nd )t; )nfrastructure and spread f)xed costs us to strengthen our bus)ness further; Fons)stently strong volume growth bu)lds over a larger number of un)ts produced, New and )mproved products are the result brand equ)ty as we reach more consumers, reduc)ng the average cost per un)t; of )nvestment )n R&D and, together w)th more often; It )mproves our prof)tab)l)ty and allows effect)ve market)ng, strengthen our brand us to )nvest )n the bus)ness; equ)ty; Th)s results )n prof)table volume growth, self-perpetuat)ng the v)rtuous c)rcle of growth;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Our Bus?ness Model 5 EMBEDDIN$ SUSTAINABILITY

In order to real'se susta'nable growth, a long-term v)ew, we can reduce r)sk, susta)nable bus)ness contr)but)on we are 'ntegrat'ng susta'nab'l'ty 'nto for example secur)ng raw mater)al supply )n l)ne w)th the)r pos)t)on)ng; S)m)larly, our strategy, brands and 'nnovat'onC through susta)nable sourc)ng; And we have our F)ve Levers for Fhange methodology We are work'ng w'th our customers found that once we start look)ng at product )s help)ng our brands prompt consumers and suppl'ers, engag'ng employees development, sourc)ng and manufactur)ng to adopt new behav)ours (see page 15); and forg'ng new partnersh'psC through a susta)nab)l)ty lens, )t opens up Innovat)on )s cr)t)cal to ach)ev)ng our great opportun)t)es for )nnovat)on; susta)nable l)v)ng goals; We are comm)tt)ng OUR BUSINESS STRATE$Y Our product category and funct)onal a s)gn)f)cant proport)on of our R&D budget W)th 7 b)ll)on people on our planet, the earth’s teams are play)ng a central role )n dr)v)ng to f)nd)ng susta)nab)l)ty-led technolog)es; resources can be stra)ned; Th)s means susta)nable growth; They rev)ew progress We are also support)ng the commerc)al)sat)on susta)nable, equ)table growth )s the only aga)nst the)r targets quarterly; And )n of )nnovat)ve technolog)es through our acceptable model of growth for our bus)ness; 2012 we asked our bus)nesses )n our )nvestment arm, Un)lever Ventures; We bel)eve growth and susta)nab)l)ty are largest markets to )dent)fy a small number not )n confl)ct; In fact, )n our exper)ence, In 2012 our Open Innovat)on team launched of pr)or)ty areas where they can harness susta)nab)l)ty dr)ves growth; an onl)ne system wh)ch offers outs)de the Plan to dr)ve growth, such as experts the chance to work w)th Un)lever handwash)ng w)th L)febuoy soap )n Ind)a on research proQects )n a number of areas and the Dove Self-Esteem ProQect )n that w)ll promote susta)nable l)v)ng, such TH the US; ROW COST D G as cold-water wash laundry products; LE LEVERAGE + Y3 IT EFFICIENCY IL We are l)nk)ng progress to reward w)th We have rece)ved 150 subm)ss)ons rang)ng B A IN A susta)nable bus)ness goals )n the remunerat)on from packag)ng des)gn to energy-eff)c)ent T L S E U S S S of a grow)ng number of managers; Th)s processes;

A S )ncludes the FEO and several members of T E We have updated the tools we use to evaluate

PROFITABLE L the Un)lever Leadersh)p Execut)ve; We have

VOLUME SUSTAINABLE S the env)ronmental )mpacts of new products S

susta)nab)l)ty champ)ons cover)ng every

GROWTH LIVING R

I S and packag)ng, known as Innovat)on Process

K key funct)on, category and country; Management; We use a s)mple traff)c l)ght system to compare the potent)al )mpacts of BRANDS AND INNOVATION S an )nnovat)on w)th the products we currently U S We are accelerat)ng the )ntegrat)on of TA I market as well as the )mpacts on our NA BL INNOVATION + susta)nab)l)ty )nto our brands; Brands are E I & C NNO category portfol)o; OL VATION MARKETING LAB develop)ng the)r own USLP amb)t)on – for ORATION INVESTMENT example Knorr has chosen susta)nable THE MARKETPLA4E sourc)ng; Our Brand Impr)nt model enables Many reta)lers have susta)nab)l)ty goals; us to take a 360-degree v)ew of the soc)al, For the last three years we have worked By focus)ng on susta)nable l)v)ng needs, env)ronmental and econom)c )mpacts on A Better Future Starts at Home, a Qo)nt we can bu)ld brands w)th a s)gn)f)cant of brands and – among other outputs shopper programme w)th Tesco; It comb)nes purpose; By reduc)ng waste, we create – tr)ggered L)pton’s dec)s)on to source )ts adv)ce on susta)nable l)v)ng w)th promot)ons eff)c)enc)es and reduce costs, wh)ch tea susta)nably; We are now apply)ng the of susta)nable products; N)ne countr)es from helps to )mprove our marg)ns; By tak)ng methodology to help brands make a the UK to Fh)na have run the programme;

INVESTING IN SUSTAINABLE BUSINESS INNOVATION IN MANUFACTURING Through Un)lever Ventures, we are )nvest)ng )n early and m)d-stage Many employees have susta)nable bus)ness )deas and our compan)es w)th new technolog)es and compell)ng bus)ness models Manufactur)ng team has set up a Small Act)ons, B)g D)fference that are of strateg)c relevance to Un)lever; Susta)nable bus)ness )s budget to make them happen; a key factor )n th)s m)x; Factory employees can apply for )nvestment for the)r )deas wh)ch are Our portfol)o )ncludes a number of )nnovat)ve start-ups from the green evaluated on the bas)s of env)ronmental benef)t and f)nanc)al return; tech and low-carbon sectors, such as Recyclebank (see page 37); In 2012 over 600 proQects were )dent)f)ed and the best 100 w)ll be In 2013 we are launch)ng a new Susta)nable Bus)ness Venture Fund )mplemented )n 2013; The)r comb)ned benef)ts w)ll del)ver sav)ngs w)th d50 m)ll)on allocated to )nvestment )n new bus)nesses wh)ch of around 1% of our global energy and water use and ach)eve an spec)f)cally support our USLP goals; average pay back of under two years;

6 Embedd?ng Susta?nab?l?ty Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y PRO$RESS ON THE PLAN > $OVERNAN4E >

In 2012 we launched a Qo)nt programme w)th Walmart, The L)v)ng ProQect, that w)ll help THREE KEY FEATURES OF OUR PLAN 200 m)ll)on shoppers every week make susta)nable cho)ces; So far )t has been )mplemented )n Braz)l, Fh)na and the US; • Spans our ent)re portfol)o of brands and all countr)es )n wh)ch we sell our products; • Has a soc)al and econom)c d)mens)on – our products make a d)fference to health and WORKIN$ WITH OUR SUPPLIERS well-be)ng, and our extended supply cha)n supports the l)vel)hoods of many people; In 2011 Un)lever launched a programme called Partner to W)n, to work more • When )t comes to the env)ronment, we work across the whole value cha)n – from the closely w)th )ts key suppl)ers, )nclud)ng on sourc)ng of raw mater)als to the way consumers use our products; susta)nable pract)ces; In part)cular, we are develop)ng partnersh)ps w)th our agr)cultural WE WORK A4ROSS THE VALUE 4HAIN raw mater)al suppl)ers to ach)eve our susta)nable sourc)ng goal; For example, 25% 4% 2% 68% 1% we establ)shed the Knorr Susta)nab)l)ty Partnersh)p Fund to support vegetable + + + + suppl)ers on complex susta)nable agr)culture proQects that they are unable to tackle alone; Raw mater5als Manufacture Transport @onsumer use D5sposal

PEOPLE UNILEVER’S EREENHOUSE EAS FOOTPRINT (SEE PAEE 25) Our v)s)on of creat)ng a susta)nable bus)ness )s mot)vat)ng for employees, but )t )s not always clear to them how to apply )t to the)r Development Eoals to succeed the role; We )ntegrate susta)nab)l)ty )nto ex)st)ng M)llenn)um Development Eoals; Our tra)n)ng and have created bespoke tra)n)ng, FEO was subsequently )nv)ted to Qo)n the for example, new brand managers engage UN Secretary Eeneral’s H)gh Level Panel to )n a week-long susta)nable market)ng rev)ew the post-2015 Development Agenda; challenge dur)ng the)r foundat)on course; We recogn)se the scale of change that )s needed and we are stepp)ng up our 4OLLABORATION WITH PARTNERSHIPS engagement )n mult)-sector and cross- Elobal )ssues such as deforestat)on, water sector stakeholder groups, such as the scarc)ty and under-nutr)t)on are too complex Trop)cal Forest All)ance 2020, Refr)gerants, for any s)ngle organ)sat)on to tackle alone; Naturallyf and the Roundtable on Susta)nable We are engag)ng w)th governments to Palm O)l; We take part )n )n)t)at)ves such as create an env)ronment )n wh)ch the b)g the World Econom)c Forum’s New V)s)on for susta)nab)l)ty challenges can be tackled; Agr)culture and the UN’s Scal)ng up Nutr)t)on At the UN Fonference on Susta)nable (SUN) and Zero Hunger Fhallenge wh)ch Development )n R)o )n 2012 we urged tackle the challenge of h)gh levels of collaborat)on to agree Susta)nable under-nutr)t)on and hunger )n the world;

UNILEVER FOUNDATION TROPICAL FOREST ALLIANCE 2020 Establ)shed )n 2012, the Un)lever Foundat)on’s m)ss)on )s to )mprove Un)lever has led the process of bu)ld)ng the Trop)cal Forest All)ance the qual)ty of l)fe for commun)t)es through the prov)s)on of hyg)ene, 2020, a publ)c-pr)vate partnersh)p between the US government and san)tat)on, access to clean dr)nk)ng water and bas)c nutr)t)on, and the Fonsumer Eoods Forum (FEF); The FEF )s a large )ndustry body by enhanc)ng self-esteem; made up of almost all the maQor reta)l and consumer goods compan)es )n the world, w)th revenues amount)ng to more than $3 tr)ll)on; Work)ng w)th f)ve partners – Oxfam, PSI (Populat)on Serv)ces Internat)onal), Save the Fh)ldren, UNIFEF and the World Food The Trop)cal Forest All)ance 2020 was announced at the R)o+20 Programme (WFP) – the Foundat)on )s develop)ng programmes summ)t; It a)ms to reduce and eventually el)m)nate the deforestat)on des)gned to grow the bus)ness and support the USLP’s goal to help assoc)ated w)th the sourc)ng of commod)ty crops such as soy, palm more than 1 b)ll)on people take act)on to )mprove the)r health and o)l, beef, pulp and paper; The Dutch and Norweg)an governments have well-be)ng; s)gned up and compan)es, NEOs and other governments w)ll be )nv)ted to Qo)n; The Indones)an government )s co-host)ng a workshop on the palm and paper value cha)ns )n 2013;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Embedd?ng Susta?nab?l?ty 7 OPERATIONAL HI$HLI$HTS

In 2012, we cont'nued to make good progress • Turnover )s up 10;5% at d51;3 b)ll)on w)th net 'n the transformat'on of Un'lever to a susta'nable acqu)s)t)ons contr)but)ng 1;1% and currency growth companyC We exceeded \50 b'll'on turnover, changes 2;2% w'th all reg'ons and categor'es contr'but'ng to • Underly)ng sales growth of 6;9% )s well balanced growthC Desp'te further cost 'ncreases and volat'le between volume +3;4% and pr)ce +3;3% commod'ty markets, our gross marg'n rose by 0C1 • Emerg)ng markets grew underly)ng sales percentage po'nts and our core operat'ng marg'n by 11;4%, now represent)ng 55% of turnover by 0C3 percentage po'nts, reflect'ng the d'sc'pl'ned 'mplementat'on of our strategyC

KEY FINAN4IAL INDI4ATORS *

UNDERLYIN$ UNDERLYIN$ VOLUME 4ORE OPERATIN$ FREE 4ASH FLOW SALES $ROWTH $ROWTH MAR$IN

6K9 % 3K4 % 13K8 % V4K3 b5ll5on

2011N 6K5% 2011N 1K6% 2011N 13K5% 2011N V3K1 b5ll5on

KEY NON;FINAN4IAL INDI4ATORS †

HEALTH AND HY$IENEd NUTRITIONd $REENHOUSE $ASESd WATERd People reached w?th L?febuoy Portfol?o by volume meet?ng salt 4O 2 from energy per tonne Water per tonne of product?on handwash?ng programmes levels equ?valent to 5 g per day of product?on

◊ 71 m5ll5on 80 % 99K97 kg 2K23 m3

2011N 34K5 m5ll5on 2011N See ◊ below 2011N 118K31kg 2011N 2K40m 3

WASTEd SUSTAINABLE SOUR4IN$d BETTER LIVELIHOODSd PEOPLEd Total waste per tonne Palm o?l purchases from Number of Shakt? entrepreneurs Total recordable acc?dent of product?on susta?nable sources (cumulat?ve s?nce 2010) frequency rate

per 1m 3K85 kg 100 % 48,000 1K16 hours worked

2011N 4K96kg 2011N 64% 2011N 45,000 2011N 1K27 per 1m hours worked

* Further deta)ls of our key f)nanc)al )nd)cators can be found )n our Annual Report and Accounts 2012; † These key non-f)nanc)al )nd)cators form part of the Un)lever Susta)nable L)v)ng Plan; ◊ Measured January-September 2012; In 2012 we moved to full volume-based (tonnes sold) report)ng for th)s target; Th)s number )s not comparable to prev)ously reported numbers measured by product (stock keep)ng un)t), see page 20; †† NAMET refers to North Afr)ca, M)ddle East and Turkeya AMET refers to Afr)ca, M)ddle East and Turkeya and RUB refers to Russ)a, Ukra)ne and Belarus;

8 Operat?onal H?ghl?ghts Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y PRO$RESS ON THE PLAN > $OVERNAN4E >

OUR 4ATE$ORIES

• Turnover d18;1 b)ll)on • Turnover d14;4 b)ll)on • Underly)ng sales • Underly)ng sales growth 10;0% growth 1;8% • Underly)ng volume • Underly)ng volume growth 6;5% growth (0;9)% • Market shares )ncreased • Market shares were down across geograph)es, w)th sl)ghtly, reflect)ng a m)xed strong ga)ns )n Lat)n performance w)th volume Amer)ca, NAMET & RUB †† ga)ns )n dress)ngs, offset and North Amer)caa dr)ven by decl)nes )n savoury and by ha)r care, deodorants volume share stab)l)sat)on and sk)n cleans)ng )n spreads

PERSONAL CARE FOODS

• Turnover d9;7 b)ll)on • Turnover d9;1 b)ll)on • Underly)ng sales • Underly)ng sales growth 6;3% growth 10;3% • Underly)ng volume • Underly)ng volume growth 2;4% growth 6;2% • Market shares were • Market share ga)ns sl)ghtly down overall, were dr)ven by powerful reflect)ng pr)ce aggress)ve performance )n nearly all compet)t)on )n )ce cream our marketsa )n laundry )n developed markets )n part)cular )n Europe, Fh)na and South Afr)ca

REFRESHMENT HOME CARE

OUR $EO$RAPHI4AL AREAS

Asia/AMET/RUB †† • Turnover d20;4 b)ll)on • Underly)ng sales growth 10;6% On any g5ven day Turnover of • Underly)ng volume growth 5;7% The Americas 2 b?ll?on l51 b?ll?on • Turnover d17;1 b)ll)on • Underly)ng sales growth 7;9% consumers worldw5de use for 2012 • Underly)ng volume growth 3;1% a Un5lever product

Europe Around Products sold 5n over • Turnover d13;9 b)ll)on • Underly)ng sales growth 0;8% • Underly)ng volume growth 0;9% 173,000 190 employees at the end of 2012 countr5es worldw5de FOR MORE: WWW.UNILEVER.COM/ INVESTORRELATIONS

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Operat?onal H?ghl?ghts 9 UNILEVER IMPROVINU HEALTH SUSTAINABLE AND WELL-BEINU By 2020 we w'll help more than a b'll'on people LIVIN$ PLAN take act'on to 'mprove the'r health and well-be'ngC We est5mate that we helped 224 m5ll5on people IN 2012 take act5on to 5mprove the5r health and well-be5ngK

The Un)lever Susta)nable L)v)ng Plan (USLP) sets out to decouple our growth 1 HEALTH AND 2 NUTRITION 3 UREENHOUSE from our env)ronmental )mpact, wh)le at the same t)me )ncreas)ng our pos)t)ve HYUIENE UASES soc)al )mpact; It has three b)g goals to ach)eve by 2020 – to )mprove health and well-be)ng, reduce env)ronmental )mpact and source 100% of our agr)cultural raw mater)als susta)nably and enhance the l)vel)hoods of people across our value cha)n; Support)ng these goals are seven comm)tments underp)nned by targets spann)ng our soc)al, env)ronmental and econom)c performance across the value cha)n – from the sourc)ng of raw By 2020 we w)ll help more than We w)ll cont)nually work to Halve the greenhouse gas )mpact mater)als all the way through to the use a b)ll)on people to )mprove the)r )mprove the taste and nutr)t)onal of our products across the of our products )n the home; † hyg)ene hab)ts and we w)ll br)ng qual)ty of all our products; By 2020 l)fecycle by 2020;* In the second year of our Plan, we made safe dr)nk)ng water to 500 m)ll)on we w)ll double the proport)on steady progress towards our goals; people; Th)s w)ll help reduce the of our portfol)o that meets the OUR UREENHOUSE UAS Our USLP )s amb)t)ous and we have )nc)dence of l)fe-threaten)ng h)ghest nutr)t)onal standards, IMPAIT PER IONSUMER much more to do; We cont)nue to str)ve d)seases l)ke d)arrhoea; based on globally recogn)sed USE HAS REDUIED BY to del)ver our stretch)ng goals; d)etary gu)del)nes; Th)s w)ll help AROUND 6% SINIE 2010* 224 MILLION PEOPLE hundreds of m)ll)ons of people to REAIHED BY END 2012 ach)eve a health)er d)et; Reduce EHE from sk)n Key cleans)ng and ha)r wash)ng Reduce d)arrhoeal and 18% OF OUR PORTFOLIO BY Ach)eved resp)ratory d)sease through VOLUME MET THE IRITERIA Reduce EHE from wash)ng On-plan handwash)ng FOR HIUHEST NUTRITIONAL clothesL Foncentrat)on Off-plan STANDARDS IN 2012 Prov)de safe dr)nk)ng water Reformulat)on % of target ach)eved Fonsumer behav)our Improve oral health Reduce salt levels Note Our most mater)al targets are shaded Reduce EHE from Improve self-esteem Saturated fatL manufactur)ngL 92 Reduce saturated fat Reduce workplace )nQur)es FO 2 from energy 92 Increase essent)al fatty ac)ds and acc)dents Renewable energy Remove trans fat New factor)es For more see page 12 > Reduce sugar Reduce EHE from transport Reduce calor)es Reduce EHE from refr)gerat)on Improve heart health Reduce energy consumpt)on )n our off)ces Prov)de healthy eat)ng )nformat)on Reduce employee travel Improve employee health † In our 2011 Progress Report we presented our people For more see page 24 > and workplace targets as a standalone set of targets; and nutr)t)on In 2012 we )ncorporated these targets )nto the ma)n body of the Plan; For more see page 18 > * Throughout th)s document our env)ronmental targets are expressed on a ‘per consumer use’ bas)s; Th)s means a s)ngle use, port)on or serv)ng of a product (see page 53); We have taken a l)fecycle approach w)th a basel)ne of 2008; + In seven water-scarce countr)es represent)ng around half the world’s populat)on (see page 53);

10 Un?lever Susta?nable L?v?ng Plan ?n 2012 Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y PRO$RESS ON THE PLAN > $OVERNAN4E >

REDUIINU ENHANIINU ENVIRONMENTAL IMPAIT LIVELIHOODS By 2020 our goal 's to halve the env'ronmental footpr'nt of the mak'ng and By 2020 we w'll enhance the l'vel'hoods use of our products as we grow our bus'nessC * of hundreds of thousands of people as we grow our bus'nessC Our greenhouse gas and waste impacts per consumer use have reduced and our water impact per consumer use has remained broadly unchanged.* We have trained around 450,000 smallholder farmers.

4 WATER 5 WASTE 6 SUSTAINABLE 7 BETTER SOURIINU LIVELIHOODS

Halve the water assoc)ated w)th Halve the waste assoc)ated w)th By 2020 we w)ll source 100% of By 2020 we w)ll engage w)th at the consumer use of our products the d)sposal of our products our agr)cultural raw mater)als least 500,000 smallholder by 2020;* + by 2020;* susta)nably; farmers and 75,000 small-scale d)str)butors )n our supply network; OUR WATER IMPAIT PER OUR WASTE IMPAIT PER 36% OF AURIIULTURAL IONSUMER USE HAS IONSUMER USE HAS RAW MATERIALS 450,000 SMALLHOLDER REMAINED BROADLY REDUIED BY AROUND 7% SUSTAINABLY SOURIED FARMERS TRAINEDb UNIHANUED SINIE 2010* SINIE 2010* BY END 2012 SMALLHOLDERS’ METRII IN DEVELOPMENTb Reduce water use )n the Reduce packaging Palm o)lL 48,000 SMALLcSIALE laundry processL Susta)nable SHAKTI DISTRIBUTORS Easy r)nse products Recycle packag)ngL Traceable BY END 2012 Products that use less water Increase recycl)ng and recovery rates Paper and board Smallholder farmers Reduce water use )n sk)n Increase recycled content Soy beans and soy o)l cleans)ng and ha)r wash)ng Small-scale d)str)butors Reuse packag)ng Tea Reduce water use Tackle sachet waste For more see page 46 > )n agr)culture Fru)t Reduce waste from Reduce water use )n Vegetables manufactur)ngL manufactur)ng processL Reduce total waste Focoa Reduce abstract)on Zero non-hazardous waste New factor)es Sugar to landf)ll New factor)es Sunflower o)l For more see page 30 > 99 El)m)nate PVF Rapeseed o)l Reduce off)ce wasteL Da)ry Recycle, reuse, recover Fa)rtrade Ben & Jerry’s Reduce paper consumpt)on El)m)nate paper )n processes Fage-free eggs Increase susta)nable sourc)ng For more see page 34 > of off)ce mater)als

For more see page 40 >

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Un?lever Susta?nable L?v?ng Plan ?n 2012 11 1 HEALTH AND HY$IENE IMPROVINE HYEIENE AND PROMOTINE WELLxBEINE

12 Health and Hyg?ene Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

THE BIGGEST CHALLENGE WE FACE IS TO SCALE UP PROGRAMMES COST;EFFECTIVELY.

HEALTH AND HYGIENE By 2020, we w5ll help more than a b5ll5on people to 5mprove the5r hyg5ene hab5ts and we w5ll br5ng safe dr5nk5ng water to 500 m5ll5on peopleK Th5s w5ll help reduce the 5nc5dence of l5fe-threaten5ng d5seases l5ke d5arrhoeaK 224 m5ll5on people reached by end 2012K 119 m5ll5on people w5th L5febuoy3 45 m5ll5on w5th safe dr5nk5ng water from Pure5t3 49 m5ll5on w5th our toothpaste brands3 and 11 m5ll5on through Dove Self-Esteem programmesK

OUR PERSPE4TIVE Poor hyg)ene, lack of safe dr)nk)ng water One brand wh)ch demonstrates th)s )s p)lot)ng a san)tat)on programme between and poor san)tat)on are the cause of m)ll)ons L)febuoy soap; It )s also one of Un)lever’s our Domestos to)let cleaner brand and of preventable deaths; fastest-grow)ng brands – )t has ach)eved partners UNIFEF and the World To)let double d)g)t-growth over 2010-12; It )s a good Organ)zat)on; Th)s w)ll help us to take These )ssues are closely )nterconnected; example of how brands that help to address a more Qo)ned-up approach to )mprov)ng Ev)dence shows that )nd)v)duals w)ll be soc)al challenges can bu)ld brand equ)ty and health through a concerted effort around health)er and commun)t)es more product)ve grow the)r bus)ness; clean water, san)tat)on and hyg)ene )n future; )f they have access to clean water and better san)tat)on and )f they adopt )mproved We have made good progress towards The b)ggest challenge we face across hyg)ene pract)ces; our goal; L)febuoy and Dove have extended all our programmes )s to scale up cost- ex)st)ng partnersh)ps and developed new ones; effect)vely; Form)ng the r)ght partnersh)ps Un)lever brands can play an )mportant role Our oral care brands are set to meet the)r w)th governments, NEOs and other here; We make effect)ve, affordable products target much earl)er than planned; We have experts )s help)ng us; But to reach our that )mprove health, hyg)ene and well-be)ng; also ga)ned a better understand)ng of the amb)t)ous targets, we need to move faster As one of the world’s lead)ng consumer )mpact of our handwash)ng programmes; to w)despread )mplementat)on; goods compan)es, we can use our expert)se )n market)ng and del)ver)ng campa)gns to We have also started to explore how we reach large, d)verse populat)ons and ach)eve can develop a more systemat)c approach a last)ng )mpact on everyday behav)ours; to water, san)tat)on and hyg)ene )ssues by

TAR$ET SUMMARY Ach)evedL 0 On-planL 5 Off-planL 0 % of target ach)evedL 0

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Health and Hyg?ene 13 1 HEALTH AND HY$IENE LIFEBUOY TARGETS COUNTRIES WITH HIGH CHILD MORTALITY During 2012 Lifebuoy launched handwashing programmes in seven new countries: Egypt, Ghana, Nigeria, South Sudan, Uganda, Zambia and Zimbabwe. Our behaviour change programmes are now running in 16 countries, reaching eight of the top ten countries most affected by child mortality.

Reach'ng more for less

REDU4E DIARRHOEAL )s run at scale; We found that handwash)ng w)th soap at key occas)ons )ncreased AND RESPIRATORY s)gn)f)cantly after the schools’ hyg)ene DISEASE THROU$H promot)on programme; Soap use HANDWASHIN$ )ncreased from 53% to 75%; Th)s )ncrease was susta)ned at the same level more than s)x months after the programme ended; OUR TAR$ETS † • By 2015, our L)febuoy brand a)ms To be )ndependently assured by PwF )n 2013, see page 52; to change the hyg)ene behav)our of 1 b)ll)on consumers across As)a, Afr)ca and Lat)n Amer)ca by promot)ng the benef)ts of handwash)ng w)th soap at REACHING NEW A LOWER;COST MODEL key t)mes; COMMUNITIES FOR OUR SCHOOLS’ OUR PERFORMAN4E Some commun)t)es can be d)ff)cult and PROGRAMMES 119 m)ll)on people reached s)nce costly for L)febuoy to reach by )tself; We are 2010, of whom 71 m)ll)on were collaborat)ng w)th the M)llenn)um V)llages L)febuoy has amb)t)ous plans to scale up reached )n 2012; † ProQect to promote handwash)ng w)th soap the reach of )ts school hyg)ene promot)on )n rural commun)t)es across Afr)ca; programmes )n Afr)ca; However, )n some OUR PERSPE4TIVE The proQect w)ll enable us to adapt our countr)es the brand has been launched The maQor challenge we face )s scal)ng current handwash)ng programme and or re-)ntroduced only recently and )s st)ll up our handwash)ng programmes cost- advocacy to th)s sett)ng, reach)ng 475,000 a relat)vely small brand; A mult)-brand effect)vely; S)nce 2010, we have made people across ten countr)es by 2015; Our programme )s more cost-eff)c)ent and )s strong progress, develop)ng models a)m )s to work together to develop scalable, an opportun)ty to connect people to more wh)ch more than halve the cost; We have cost-effect)ve water, san)tat)on and hyg)ene of our brands that have a soc)al )mpact; expanded the programme to 16 countr)es )ntervent)ons wh)ch can then be rolled out )n 2012 and have reached f)ve t)mes as Our Fentral Afr)can bus)ness and L)febuoy at nat)onal level and to new countr)es, many people as we d)d )n 2010; Our most have p)loted a programme w)th our Flose Up )mprov)ng health through better hyg)ene; s)gn)f)cant expans)on )s )n Afr)ca where toothpaste and Blue Band margar)ne brands programmes are now runn)ng )n n)ne The f)rst 28 days of l)fe )s the per)od when )n N)ger)a and an external partner, D;l)te, countr)es, reach)ng more than 11 m)ll)on ch)ldren are most vulnerable to d)sease wh)ch produces solar lanterns to enable people )n 2012, compared to 400,000 over and )nfant mortal)ty )s h)ghest; Every year ch)ldren to do homework after dark; 2010-11; Th)s has contr)buted to L)febuoy’s an est)mated 3;6 m)ll)on newborn bab)es The 21-day programme uses mult)ple cont)nued double-d)g)t bus)ness growth d)e )n the f)rst month of the)r l)ves; S)mple, classroom contacts to help ch)ldren pract)se )n 2012; low-cost health )ntervent)ons such as new behav)oursL handwash)ng w)th soap, handwash)ng w)th soap can reduce th)s Partnersh)ps w)th NEOs and government brush)ng teeth day and n)ght, and eat)ng f)gure by up to 44%; In Indones)a we have are cr)t)cal – by tapp)ng )nto ex)st)ng well; We have been able to reduce our cost developed a new partnersh)p w)th USAID on-ground networks and expert)se we per contact s)gn)f)cantly by shar)ng costs and the Maternal and Fh)ld Health can reduce costs and reach more people; across brands; The programme has huge Integrated Program to reach new mothers In Afr)ca, Un)lever Foundat)on partner PSI potent)al for roll-out )n other countr)es )n and b)rth attendants w)th hyg)ene educat)on; (Populat)on Serv)ces Internat)onal) and Afr)ca; Schools, governments and NEOs the M)llenn)um V)llages ProQect are support th)s approach as, by promot)ng help)ng us to adapt our programmes for a number of healthy behav)ours together, d)fferent contexts; In Ind)a we are work)ng )t has the potent)al to del)ver s)gn)f)cant w)th the government and Foundat)on health )mpact at lower cost; partner UNIFEF to promote handwash)ng )n Madhya Pradesh and )n Afr)ca and South As)a, w)th Water & San)tat)on for the Urban Poor; These partnersh)ps are also bu)ld)ng local capab)l)t)es to susta)n the programmes for the long term; We cont)nue to evaluate )mpact; In Indones)a we conducted a quant)tat)ve study w)th TNS, a market research company, to assess )mpact when the programme

14 Health and Hyg?ene Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

SAFE DRINKING WATER Pure)t offers a range of )n-home water pur)f)ers that prov)de water ‘as safe as bo)led’ – w)thout the need for electr)c)ty or a pressur)sed water supply – by remov)ng harmful v)ruses, bacter)a and paras)tes; Pure)t offers env)ronmental benef)ts tooL our deta)led l)fecycle analys)s shows that )ts total carbon footpr)nt )s at least 80% lower than bo)led or bottled water;

PROVIDE SAFE DRINKIN$ WATER

OUR TAR$ETS • We a)m to make safe dr)nk)ng water ava)lable and affordable to 500 m)ll)on people through our Pure)t )n-home water pur)f)er by 2020;

OUR PERFORMAN4E 45 m)ll)on people have ga)ned access to safe dr)nk)ng water from Pure)t DOMESTOS TACKLES s)nce )ts launch )n 2005, of whom † SANITATION CRISIS OUR FIVE LEVERS FOR 10 m)ll)on were reached )n 2012; More than 2,000 children die every day OUR PERSPE4TIVE CHANGE MODEL from diarrhoea, which is linked, among The lack of safe dr)nk)ng water )s a maQor other things, to a lack of clean toilets for Encouraging people to adopt new behaviours publ)c health )ssue, part)cularly )n over 2 billion people worldwide. is essential if we are to achieve our goals. develop)ng countr)es where around 80% of d)seases are water borne; An )ndependent In November 2012, Domestos and our partner, Underpinning our approach is our model of study has shown that Pure)t can reduce the World Toilet Organization, opened the behaviour change, Unilever’s Five Levers for the )nc)dence of d)arrhoeal d)sease by up world’s first ‘Domestos toilet academies’ Change – a set of principles which, if applied to 50%;* in Vietnam, the first stage in a global consistently, increases the likelihood of programme to train local entrepreneurs creating a lasting impact. Dur)ng 2012 Pure)t focused on d)str)but)on to set up hygienic toilet businesses. expans)on )n ex)st)ng markets – Ind)a, We first used this model to develop our Bangladesh, Indones)a, Mex)co and Braz)l The academies leverage the ’SaniShop’ behaviour change programmes with – and also launched )n new markets such business model developed and proven by Lifebuoy soap and our oral care brands. as Sr) Lanka and N)ger)a; the World Toilet Organization in Cambodia. We have learned a great deal through our Training local entrepreneurs to supply health and hygiene campaigns and we are Expans)on )n Ind)a was the b)ggest latrines, toilet cleaner and sanitation now applying the methodology to improve contr)butor to performance )n 2012, where education is an innovative market-based our performance in other areas, for example consumers have been attracted to our model which creates demand for improved we are using it to understand how we w)der product range; sanitation within local communities and can motivate consumers to reduce their The most affordable model costs d20 provides jobs. salt intake. (1,400 rupees) )n Ind)a; We are work)ng w)th a range of m)crof)nance and NEO partners to )mprove the affordab)l)ty of the pur)f)er for those for whom the pr)ce rema)ns a barr)er to purchase; Our amb)t)on to reach 500 m)ll)on people rema)ns demand)ng; To ach)eve our target we plan to expand )nto more new markets )n Afr)ca, wh)le cont)nu)ng to grow )n ex)st)ng markets;

† To be )ndependently assured by PwF )n 2013, see page 52; * Random)sed tr)al by the Nat)onal Inst)tute of Ep)dem)ology, based on 430 ch)ldren )n Fhenna), Ind)a, 2005-06;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Health and Hyg?ene 15 1 HEALTH AND HY$IENE BRUSH DAY AND NIGHT PROMOTES GROWTH Our lead)ng fam)ly health toothpaste brands, S)gnal and Pepsodent, are grow)ng strongly thanks to our Brush Day and N)ght oral health campa)gns; Over 2008-12, S)gnal grew by 22% worldw)de; In Indones)a, one of our b)ggest markets, sales of Pepsodent rose by nearly 16% )n 2012 compared to the prev)ous year;

IMPROVE ORAL HEALTH IMPROVE SELF;ESTEEM

OUR TAR$ETS OUR TAR$ETS • We w)ll use our toothpaste and W)th our Dove brand we are help)ng m)ll)ons toothbrush brands and oral health of young people to )mprove the)r self-esteem )mprovement programmes to encourage through educat)onal programmes; ch)ldren and the)r parents to brush day and n)ght; We a)m to change the • By 2015 we a)m to have helped 15 m)ll)on behav)our of 50 m)ll)on people by 2020; young people;

OUR PERFORMAN4E OUR PERFORMAN4E 49 m)ll)on people reached s)nce 2010, Over 11 m)ll)on young people have of whom 4;7 m)ll)on were reached )n 2012; rece)ved our help s)nce 2005; Over 2 m)ll)on part)c)pated )n the programme OUR PERSPE4TIVE BUILDING BRANDS )n 16 countr)es )n 2012; Our Brush Day and N)ght campa)gns have proved very effect)ve and we are set to Poor oral health )s a w)despread problem OUR PERSPE4TIVE ach)eve our target early; Many add)t)onal )n Indones)a; Th)s leads to tooth decay and, Dove )s comm)tted to help)ng women countr)es ran the campa)gn after observ)ng )n some cases, more ser)ous )llnesses; look and feel the)r best; It has made good the strong l)nk between the campa)gn’s In 2009 Un)lever collaborated w)th PDEI progress )n help)ng to ra)se the self-esteem soc)al )mpact and bus)ness growth, help)ng (the Indones)an Dental Assoc)at)on) to of m)ll)ons of young people worldw)de and us to reach more people than ant)c)pated; )n)t)ate the Brush Day and N)ght campa)gn; )s on track to meet )ts target; The campa)gns, wh)ch focus on brush)ng The campa)gn’s cons)stent messages across In 2012 Dove redes)gned )ts self-esteem tw)ce a day w)th fluor)de toothpaste, mult)ple channels are help)ng people to programme to cap)tal)se better on med)a were extended to new countr)es such as change the)r hab)ts; In 2012, Indones)ans and educat)onal )nnovat)on and reach more Fôte d’Ivo)re )n 2012; Fountr)es w)th ex)st)ng used 7% more toothpaste than )n 2011, g)rls w)th a greater )mpact wh)le reduc)ng programmes such as Indones)a and France )nd)cat)ng a gradual )ncrease )n toothbrush)ng; the costs for each )ntervent)on; saw an )mprovement )n brush)ng frequency Brand equ)ty has also strengthened; The redes)gned programme – now called and an )ncrease )n market share and sales By offer)ng parents effect)ve products the Dove Self-Esteem ProQect – )s launch)ng growth follow)ng the campa)gn; In France and by help)ng them to pass on the hab)t of )n early 2013; We have worked w)th experts to the oral care market has grown by nearly brush)ng day and n)ght, we have )ncreased make the programme content more r)gorous 5% over 2009-12 and sales of our S)gnal the proport)on of people who rate Pepsodent and engag)ng; Develop)ng global partnersh)ps brand )ncreased by nearly 7% over 2009-12, as ‘the most effect)ve toothpaste’; as well as creat)ng local commun)t)es of and by 4% )n 2012 alone; advocates among mothers and teachers w)ll We cont)nue to work )n a global partnersh)p help Dove reach more people; w)th the FDI World Dental Federat)on; It )s d)ff)cult to measure changes )n att)tude; In 2012, 28 local oral health promot)on We are partner)ng w)th academ)c thought proQects w)th nat)onal dental assoc)at)ons leaders )n the US and the UK to conduct focused on commun)cat)ng the )mportance stud)es to track the longer-term )mpact of tw)ce-da)ly brush)ng w)th fluor)de of our programme; toothpaste through dental pract)ces, schools, hosp)tals and commun)t)es across 25 countr)es; We are evaluat)ng the )mpact on over 28,000 people )nvolved )n these programmes around the world; A new campa)gn )n 2013 )s des)gned to address parents as the pr)mary target to encourage behav)our change;

16 Health and Hyg?ene Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

DOVE: OUR LEADING PERSONAL CARE BRAND Dove )s our largest Personal Fare brand, ava)lable )n over 70 countr)es and w)th an annual turnover of over d3 b)ll)on; It cont)nues to grow strongly, exper)enc)ng )ts th)rd consecut)ve year of double-d)g)t growth )n 2012;

REDU4E WORKPLA4E INJURIES AND A44IDENTS FUTURE CHALLENGES Ach)ev)ng our targets to reach such s)gn)f)cant numbers of people w)th OUR TAR$ETS hyg)ene messages and safe dr)nk)ng • We a)m for zero workplace )nQur)es; water was always go)ng to be challeng)ng; By 2020 we w)ll reduce the Total Wh)le we have made progress, we Recordable Frequency Rate (TRFR) recogn)se there )s a cons)derable gap for acc)dents )n our factor)es and off)ces to f)ll to ach)eve our goal; by 50% versus 2008; Th)s )s part)cularly true for L)febuoy OUR PERFORMAN4E where we need to reach a further 45% reduct)on )n TRFR at end 2012 881 m)ll)on by 2015; We rema)n conf)dent compared to 2008, down from 2;1 to 1;16 † of our plans to scale up handwash)ng DOVE BOOSTS acc)dents per 1 m)ll)on hours worked; programmes at a faster rate over the SELF;ESTEEM AND next few years; L)febuoy )s focus)ng on the BUSINESS SUCCESS OUR PERSPE4TIVE follow)ng pr)or)ty areas to meet )ts targetL We are among the leaders )n our )ndustry • )ncreas)ng the )mpact of rural outreach Part of the success of our Dove Self-Esteem on safety; Therefore the target to halve our through partnersh)ps and mult)-brand ProQect has been an )ncreased w)ll)ngness )nQury rate )s a stretch)ng one and becomes programmes among consumers to spread the brand’s progress)vely harder as we get closer to aff)rmat)ve message and to purchase our a)m; • creat)ng larger partnersh)ps w)th a p)oneer)ng approach to co-)nvestment Dove’s products; We measure our progress us)ng an acc)dent Research by M)llward Brown, a research rate (TRFR) wh)ch counts all workplace • roll)ng out a cost-effect)ve and scalable company, shows that among women )n the )nQur)es except those requ)r)ng only s)mple programme to new countr)es US who are aware of the Dove Self-Esteem f)rst a)d treatment; W)th the except)on of 2001, • learn)ng from evaluat)on stud)es to ProQect, 62% would recommend the Dove we have ach)eved cont)nuous )mprovement )dent)fy and roll out best pract)ce brand to others – 16% more than among )n our health and safety record s)nce 1996; those who are not aware of the proQect; In 2012 we cont)nued th)s progress, reduc)ng • cont)nu)ng to ra)se the prof)le of TRFR by 9% compared to 2011, from 1;27 to hyg)ene )ssues w)th governments, Among women )n Fanada who are aware 1;16 † per 1 m)ll)on hours worked; key op)n)on formers and w)der of the proQect, 82% would be more l)kely to commun)t)es; purchase Dove; These results mot)vate us However, reduc)ng road traff)c acc)dents to cont)nue to )nvest )n the ProQect; rema)ns a pr)or)ty for protect)ng our people; To help more than a b)ll)on people )mprove Much of our bus)ness growth comes from the)r hyg)ene hab)ts, we also recogn)se the develop)ng markets where our sales people need to develop a more hol)st)c approach to are at )ncreased r)sk because the local road the )nter-related )ssues of water, san)tat)on )nfrastructure can be poor; and hyg)ene; We are look)ng at how we can promote affordable to)let prov)s)on We have been work)ng w)th Franf)eld and good to)let hyg)ene for m)ll)ons wh)le Un)vers)ty )n the UK and other partners to grow)ng bus)ness for our Domestos brand; develop a hol)st)c approach that tackles We are work)ng w)th partners such as )nternal r)sks as well as collaborat)ng w)th UNIFEF and the World To)let Organ)zat)on others to address external r)sks, such as to develop appropr)ate models to create local road safety blackspots; and fulf)l demand for to)lets;

† To be )ndependently assured by PwF )n 2013, see page 52; See our webs'te for more

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Health and Hyg?ene 17 2 NUTRITION HELPINE PEOPLE MAKE HEALTHY FHOIFES

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INDUSTRY NEEDS TO COLLABORATE WITH GOVERNMENT AND PUBLIC HEALTH ORGANISATIONS.

NUTRITION We w5ll cont5nually work to 5mprove the taste and nutr5t5onal qual5ty of all our productsK By 2020, we w5ll double the proport5on of our portfol5o that meets the h5ghest nutr5t5onal standards, based on globally recogn5sed d5etary gu5del5nesK Th5s w5ll help hundreds of m5ll5ons of people to ach5eve a health5er d5etK In 2012 the ma>or5ty of our products met, or were better than, benchmarks based on nat5onal nutr5t5onal recommendat5onsK Our comm5tment goes furtherN 18% of our portfol5o by volume met the h5ghest nutr5t5onal standards, based on globally

recogn5sed d5etary gu5del5nesK

OUR PERSPE4TIVE Our a)m )s to make great-tast)ng food wh)ch and our new Spec)ally for K)ds logo on )ce In 2012, 18% of our portfol)o met the cr)ter)a makes a pos)t)ve contr)but)on to a healthy d)et; creams enables parents to make more for h)ghest nutr)t)onal standards, based )nformed cho)ces; on globally recogn)sed d)etary gu)del)nes; Our Nutr)t)on Enhancement Programme, Th)s f)gure )s not comparable w)th the 25% launched )n response to the World In 2012 we moved from report)ng by product we reported for 2011 due to the s)gn)f)cant Health Organ)zat)on’s call for act)on, (or ‘stock keep)ng un)t’) to report)ng by volume changes to our scope; Th)s new scope )s has substant)ally reduced salt, saturated ()e tonnes sold); Report)ng by volume better prompt)ng us to cons)der our future act)ons; and trans fat and sugar )n our products; reflects the relat)ve )mpact of our foods and In 2010 we ra)sed our standards further beverages on people’s d)ets; Look)ng ahead, we are cont)nu)ng to )mprove by benchmark)ng our progress aga)nst the the nutr)t)onal prof)le of our portfol)o, wh)le We have also moved to a more automated h)ghest nutr)t)onal standards, based on recogn)s)ng that th)s )s somet)mes d)ff)cult; report)ng system, enabl)ng us to )ncrease globally recogn)sed d)etary gu)del)nes; Follaborat)on between )ndustry, government s)gn)f)cantly the scope of our analys)s; and publ)c health organ)sat)ons )s needed to Th)s has )nsp)red us to create health)er Together, these changes prov)de a more address complex d)et and l)festyle )ssues; products wh)ch people want to eat; We extens)ve and robust analys)s of our Foods relaunched our European salad dress)ngs and Refreshment portfol)o; to reduce salt wh)le del)ver)ng great taste

TAR$ET SUMMARY Ach)evedL 1 On-planL 5 Off-planL 1 % of target ach)evedL 2

Note4 Progress on targets for h)ghest nutr)t)onal standardsa salta saturated fatsa trans fata and k)localor)es )s measured January-September 2012; Progress on sugar target )s measured January 2011-September 2012; In 2012 we moved to full volume-based (tonnes sold) report)ng for h)ghest nutr)t)onal standards and salt;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Nutr?t?on 19 2 NUTRITION SALAD DRESSINGS WITH LESS SALT In 2012 we reformulated our extens)ve range of salad dress)ngs )n Europe – Knorr, Hellmann’s, Falvé, Amora and L)geresa – to salt levels that meet our str)ngent 5 g per day target; Up to 35% reduct)on )n salt has been ach)eved wh)le del)ver)ng great taste; These products w)ll be on the market from early 2013;

REDU4E SALT LEVELS UNLOCKING THE REDU4E SATURATED FAT REAL TASTE WITH REDUCED;SALT OUR TAR$ETS OUR TAR$ETS Pr)or to 2010 we had already s)gn)f)cantly PRODUCTS We are comm)tted to )mprov)ng the fat reduced salt levels )n our products; Foods that need salt for preservat)on or compos)t)on of our products by reduc)ng Our goal )s to reduce the level further to preparat)on can contr)bute s)gn)f)cantly saturated fat as much as poss)ble and help consumers meet the recommended to salt )ntakes; But mot)vat)ng people to )ncreas)ng levels of essent)al fats; level of 5 g of salt per day based on choose products w)th less salt )s d)ff)cult; globally recogn)sed d)etary gu)del)nes; • By 2012 our lead)ng spreads w)ll Un)lever )n)t)ated consumer surveys on salt conta)n less than 33% saturated fat • Our f)rst m)lestone was to reduce salt reduct)on among 6,000 consumers )n seven as a proport)on of total fat; levels to an )nter)m target of 6 g per countr)es; The results )nformed a ser)es of day by the end of 2010; Th)s requ)red Qo)nt workshops w)th the Internat)onal Un)on • A da)ly port)on w)ll prov)de at least reduct)ons of up to 25%; Our amb)t)on of Nutr)t)onal Sc)ences, br)ng)ng together 15% of the essent)al fatty ac)ds )s to reduce by a further 15-20% on sc)ent)sts, pol)cy-makers, food )ndustr)es recommended by )nternat)onal average to meet the target of 5 g of and consumer groups to generate compell)ng d)etary gu)del)nes; salt per day between 2015 and 2020; commun)cat)on on salt reduct)on for consumers; OUR PERFORMAN4E OUR PERFORMAN4E Our surveys revealed that 80% of people 92 92% of our lead)ng spreads by volume

80% of our Foods and Refreshment do not see the need to reduce salt )ntake; conta)ned less than 33% saturated portfol)o by volume met salt levels Results from the workshops conf)rmed fat as a proport)on of total fat by end equ)valent to 5 g per day by end that we need to put taste at the heart of September 2012; September 2012a for our Foods our approach to salt reduct)on as people portfol)o alone, more than 50% are worr)ed that lower-salt foods w)ll not 92 92% of our lead)ng spreads by reached 5 g per day;* taste as good; volume prov)ded at least 15% of the essent)al fatty ac)ds recommended OUR PERSPE4TIVE by )nternat)onal gu)del)nes by end Salt consumpt)on )n many countr)es rema)ns September 2012; much h)gher than the recommended da)ly amount; Ach)ev)ng our target w)ll requ)re OUR PERSPE4TIVE a s)gn)f)cant sh)ft )n consumer behav)our The b)ggest contr)but)on we can make and d)fferent stakeholders to play the)r part; to reduc)ng saturated fat )ntake )s to encourage people to sw)tch from butter We are us)ng the Un)lever F)ve Levers for to margar)ne; We have been able to Fhange model to help us )dent)fy where reduce saturated fat levels )n the vast to act; We bel)eve we have most )mpact maQor)ty of our lead)ng spreads – to levels through creat)ng great-tast)ng products; of about half the saturated fat present Typ)cally, to reduce the level of salt, )n butter; we completely redes)gn the rec)pe so )t tastes better as well as be)ng health)er; Our lead)ng spreads are those we sell )n tubs under brands such as Flora, Becel, Our nutr)t)on measurements cover our Rama and Blue Band, compr)s)ng around Foods and Refreshment products to g)ve two-th)rds of our soft margar)ne by volume; a rounded p)cture of our portfol)o; However, the products )n our Refreshment category The small proport)on of our lead)ng of )ce cream and beverages make very brands that do not meet our target are small contr)but)ons to salt )ntakes; sold )n trop)cal countr)es; A h)gher We )dent)fy the proport)on of our Foods saturated fat level )s requ)red to make the portfol)o that reached 5 g per day product stable at amb)ent temperatures; because th)s )s the most relevant area We are )nvest)gat)ng cost-effect)ve for salt reduct)on; technolog)es that w)ll allow us to reduce saturated fat by approx)mately a th)rd )n these countr)es – tak)ng the saturated fat level to 38% – wh)le st)ll keep)ng products affordable; * Th)s number )s not comparable to the 61% reported for 2011 measured by product (stock keep)ng un)t);

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SWEETNESS WITHOUT CALORIES Stev)a, a sweetener der)ved from natural sources, )s meet)ng consumer demand for )ngred)ents from natural sources wh)le also del)ver)ng a reduct)on )n sugar; Wh)le reduc)ng sugar, we also )mproved the taste of many of our L)pton ready-to-dr)nk teas;

We cont)nue to )mprove the fat compos)t)on REMOVE TRANS FAT REDU4E SU$AR of our products by )ncreas)ng the level of essent)al fats; For pract)cal reasons, we generally )ncrease essent)al fats at the same t)me as we reduce saturated fat levels, OUR TAR$ETS OUR TAR$ETS so the two targets are closely )nterl)nked; • By 2012 we w)ll have removed from all • Pr)or to 2010 we had already reduced our products any trans fat or)g)nat)ng sugar levels )n our ready-to-dr)nk teas; from part)ally hydrogenated vegetable o)l; By 2020 we w)ll remove an add)t)onal 25%;

OUR PERFORMAN4E OUR PERFORMAN4E By September 2012, 100% of our portfol)o 4% reduct)on )n sugar by end by volume d)d not conta)n trans fats September 2012; or)g)nat)ng from part)ally hydrogenated vegetable o)l ; OUR PERSPE4TIVE In 2012 we )ntroduced several L)pton OUR PERSPE4TIVE ready-to-dr)nk tea products w)th reduced To ensure we ma)nta)n our performance sugar levels, part)cularly )n Europe and aga)nst th)s target, we have made the absence North Amer)ca; of trans fats from part)ally hydrogenated Most of these use Stev)a (stev)ol glycos)des) vegetable o)l a standard report)ng requ)rement – a sweetener from natural sources that for all our suppl)ers; UP TO 80% LESS prov)des sweetness w)thout calor)es; SATURATED FAT Add)t)onally, Stev)a has a lower carbon THAN BUTTER footpr)nt than sugar; After the launch )n 2011, we are cont)nu)ng to roll out our new rec)pe Flora/Becel margar)nes, wh)ch are now ava)lable )n more than ten countr)es; As well as be)ng lower )n calor)es, research has shown consumers f)nd them tast)er; Us)ng technolog)cal )nnovat)on, the b)ggest of )ts k)nd for 60 years, we have been able to reduce saturated fats by around 25% and calor)es by 20%; It has up to 80% less saturated fat than butter; Margar)ne already has a quarter of the carbon footpr)nt of butter and uses around half the land;* Our new rec)pes w)ll reduce these env)ronmental )mpacts even further;

* N)lsson K et al; Internat)onal Journal of L)fe Fycle Assessment 2010a15L916-26;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Nutr?t?on 21 2 NUTRITION STRONG GROWTH Un)lever )s the world’s largest )ce cream company, w)th brands on sale )n over 40 countr)es; Our popular Max and Paddle Pop )ce creams cont)nue to do well, ach)ev)ng underly)ng sales growth of nearly 20% )n 2012, and w)ll be us)ng our new Spec)ally for K)ds logo; By the end of 2012, 81% of our ch)ldren’s )ce creams conta)ned 110 k)localor)es or fewer per port)on;

REDU4E 4ALORIES SEDUCTIVE NUTRITION IMPROVE HEART HEALTH

OUR TAR$ETS OUR TAR$ETS • By 2014 100% of our ch)ldren’s )ce Calories Calories • By 2020 we a)m to mot)vate 100 m)ll)on creams w)ll conta)n 110 k)localor)es or 834 626 people to take the Heart Age test; fewer per port)on; 60% w)ll meet th)s (Target rev)sed 2013;) level by 2012; 42% 31% Our goal )s to mot)vate people to adopt health)er d)ets and l)festyles, as th)s OUR PERFORMAN4E can reduce elevated heart age; 81% of our ch)ldren’s )ce creams Ialor'e Ialculator conta)ned 110 k)localor)es or fewer per See for yourself how exchang)ng one or two OUR PERFORMAN4E port)on by end September 2012, up from )ngred)ents for health)er food select)ons, or In 2012 we Qo)ned forces w)th M)crosoft 73% at end 2011; adQust)ng port)on s)zes, can reduce total calor)es )n one of your top d)shes to launch Heart Age as an app; OUR PERSPE4TIVE Use the @alor5e @alculator as Insp5rat5on to OUR PERSPE4TIVE We cont)nue to )nvest s)gn)f)cantly )n th)s Reduce @alor5es In 2009 Un)lever and the World Heart area and are on track to meet our 2014 Federat)on launched Heart Age, a s)mple target; In part)cular, we are work)ng on new More atd www8un?leverfoodsolut?ons8us onl)ne tool to ra)se awareness of technolog)es that w)ll allow us to reduce card)ovascular d)sease; The tool proved calor)es by lower)ng fat and sugar; As part People enQoy healthy eat)ng at home; an excellent mechan)sm for mak)ng of our Partner to W)n strateg)c suppl)er Our research shows they would l)ke heart health personally relevant; )n)t)at)ve, we have a long-term partnersh)p health)er opt)ons when they eat out too; w)th Barry Fallebaut, our suppl)er of cocoa Our profess)onal cater)ng bus)ness, Un)lever Unt)l 2011 our Flora/Becel spread brands and chocolate products, to develop cocoa Food Solut)ons, )s work)ng w)th restaurant prov)ded the foundat)on for ra)s)ng based coat)ngs w)th reduced saturated fat; operators around the world to make the)r awareness of Heart Age but recogn)sed that, menus more nutr)t)ous w)th the help of by themselves, they could not dr)ve enough our products; people to the tool; In our 2011 Progress Work)ng w)th food experts and )ndustry- Report we stated that these brands would no spec)f)c bod)es, our Seduct)ve Nutr)t)on longer be the sole sponsors of the Heart Age programme prov)des rec)pe )deas and tool, and that Un)lever would look to work adv)ce for creat)ng nutr)t)ous and del)c)ous w)th a broader set of external partners w)th meals, espec)ally for top-sell)ng d)shes; a common heart health goal to max)m)se the Under the programme )n the US, over 5,000 tool’s potent)al; operators pledged to remove more than 450 Dur)ng 2012, Un)lever Qo)ned forces m)ll)on calor)es from the)r menus )n 2012; w)th M)crosoft to launch the Heart Age The campa)gn )s already act)ve )n 17 countr)es appl)cat)on on the new W)ndows 8 platform; worldw)de; It w)ll enable restaurateurs to tap Th)s g)ves us the potent)al to reach a s)gn)f)cant number of people as the platform In 2013 we started to )ntroduce a Spec)ally )nto consumer demand and )ncrease revenues, grows, to co-promote the tool and to explore for K)ds logo on )ce creams that meet our wh)le also contr)but)ng to publ)c health; opportun)t)es through M)crosoft’s emerg)ng str)ct nutr)t)on cr)ter)a and st)ll appeal to health platform; ch)ldren as fun treats through a comb)nat)on of taste, texture, shapes and colours; Follow)ng the launch )n December, we are The logo helps parents to )dent)fy )ce creams further expand)ng the reach of Heart Age that ch)ldren can enQoy as part of a balanced v)a a w)de consort)um of partners )nterested d)et and act)ve l)festyle; To promote act)ve )n heart health, )n add)t)on to cont)nued l)festyles we have partnered w)th a lead)ng support from our Flora/Becel pro •act)v ch)ld development psycholog)st to create an brands and M)crosoft; ‘adventurous play’ gu)de w)th )mag)nat)ve and act)ve games;

22 Nutr?t?on Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

INVESTING IN EMPLOYEE HEALTH We have )ncreas)ng ev)dence that our Lampl)ghter health programme )s a sound )nvestment for our employees and for our bus)ness; Independent analys)s shows a return on )nvestment of d4;82 for every d1 )nvested )n the programme )n Braz)l, based on comb)ned healthcare and product)v)ty sav)ngs over 2008-11; In S)ngapore the return on )nvestment was d3L1 over 2009-12 and there has been a reduct)on )n the health r)sk factors assoc)ated w)th h)gher healthcare costs, such as poor d)et and f)tness;

PROVIDE HEALTHY EATIN$ IMPROVE EMPLOYEE INFORMATION HEALTH AND NUTRITION FUTURE CHALLENGES Reduc)ng salt cont)nues to be one of the b)ggest nutr)t)onal challenges fac)ng our OUR TAR$ETS OUR TAR$ETS )ndustry; People tend to prefer the taste Our a)m )s to prov)de clear, s)mple labell)ng Our Lampl)ghter employee programme of trad)t)onally salted products; If the food on our products to help consumers make a)ms to )mprove the nutr)t)on, f)tness and )s perce)ved as not salty enough, people cho)ces for a nutr)t)onally balanced d)et; mental res)l)ence of employees; By 2010 w)ll often compensate by add)ng salt at All our products )n Europe and North )t had already been )mplemented )n 30 the table; Amer)ca prov)de full nutr)t)onal )nformat)on; countr)es, reach)ng 35,000 people; We are pursu)ng three approachesL • By 2015 th)s w)ll be extended to cover • In 2011 we a)med to extend the reach of all our products globally; We w)ll )nclude • explor)ng technolog)es that prov)de Lampl)ghter to a further e)ght countr)es; energy per port)on on the front of pack an alternat)ve to sod)um salts We w)ll )mplement Lampl)ghter )n an plus e)ght key nutr)ents and % Eu)del)ne add)t)onal 30 countr)es between 2012 • reformulat)ng rec)pes w)th other Da)ly Amounts (EDA) for f)ve nutr)ents on and 2015; Our longer-term goal )s to )ngred)ents to reta)n flavour wh)le the back of pack;* extend )t to all the countr)es where reduc)ng salt we operate; OUR PERFORMAN4E • chang)ng consumer preference for salt by gradually reduc)ng salt levels We have ach)eved full nutr)t)onal labell)ng OUR PERFORMAN4E )n Europe, North Amer)ca, Lat)n Amer)ca, over t)me; Lampl)ghter has reached over 50,000 Austral)a and New Zealanda )n 2012 we employees across more than 50 countr)es; However, the salt challenge cannot be made progress )n Afr)ca, the M)ddle East In 2012 )t was rolled out to 12 countr)es; solved by one company act)ng alone; and As)a; Ult)mately, )t requ)res collaborat)on OUR PERSPE4TIVE between )ndustry, governments, publ)c OUR PERSPE4TIVE Lampl)ghter )s key to address)ng the top health organ)sat)ons and the sc)ent)f)c To help us meet our target, at the end three health r)sks we have )dent)f)ed across commun)ty; of 2012 we put )n place a new system to our bus)nessL mental well-be)nga l)festyle )mprove our mon)tor)ng and track)ng of In develop)ng and emerg)ng countr)es factors (eg exerc)se, nutr)t)on, smok)ng and th)s )nformat)on; m)ll)ons of people have d)ets lack)ng )n obes)ty wh)ch can lead to cond)t)ons such essent)al m)cronutr)ents; Our challenge Our standards )n th)s area often go beyond as hypertens)on, d)abetes and heart d)sease)a rema)ns reach)ng more people worldw)de country regulat)ons, prov)d)ng more and ergonom)c factors (eg repet)t)ve w)th fort)f)ed products that are affordable nutr)t)onal )nformat)on on labels than )s stra)n )nQury); and commerc)ally v)able; requ)red locally; Examples )nclude Kenya, In 2012 we )mplemented a global No Smok)ng the Ph)l)pp)nes, Turkey, Russ)a and Our approach )s to )ntegrate fort)f)cat)on Standard for employees wh)le at work; some countr)es )n North Afr)ca and the )nto our core product portfol)o; About a By the end of the year, compl)ance w)th the M)ddle East; th)rd of Un)lever sales volume (exclud)ng new standard reached 72%a we a)m to reach our ready-to-dr)nk tea bus)ness) conta)ns 100% )n 2013; at least 15% of the recommended da)ly Lampl)ghter helps us to analyse our amount (RDA) of an essent)al v)tam)n or employees’ health r)sks and to put )n place m)neral; For example, our spreads are steps to control them; For example, )n Ind)a fort)f)ed w)th v)tam)ns A and D, and also the programme has reduced the number of conta)n v)tam)n E naturally present )n the employees categor)sed as ‘h)gh r)sk’ (due to vegetable o)ls; obes)ty or hypertens)on for example) from 8% to under 4% over 2007-12; It )s prov)ng a valuable tool for safeguard)ng employees’ health, )mprov)ng product)v)ty and reduc)ng costs;

* Where appl)cable and legally allowed and )n accordance w)th local or reg)onal )ndustry agreements; See our webs'te for more

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Nutr?t?on 23 3 $REENHOUSE $ASES HELPINE TO TAFKLE FLIMATE FHANEE

24 $reenhouse $ases Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

WE ARE SEEKING INNOVATIONS TO HELP PEOPLE REDUCE THEIR GREENHOUSE GAS IMPACTS.

GREENHOUSE GASES Halve the greenhouse gas 5mpact of our products across the l5fecycle by 2020K* Our greenhouse gas 5mpact per consumer use has reduced by around 6% s5nce 2010K*

OUR PERSPE4TIVE Fl)mate change )s accelerat)ng and the For example, our new dry shampoos do not Our b)ggest challenge however, rema)ns effects are be)ng felt across the world; need hot water when used and )n 2012 grew reduc)ng the hot water used w)th our soaps, It has a s)gn)f)cant )mpact on our bus)ness; by over 19% )n sales; And we have avo)ded shower gels and shampoos; To ach)eve our The sourc)ng of our agr)cultural raw d99 m)ll)on )n costs s)nce 2008 by )mprov)ng goal we need to prov)de consumers w)th mater)als w)ll be affected by changes )n energy use )n our factor)es; more products and tools wh)ch mot)vate weather patternsa our bus)ness and our them to use less water; But mater)al change We are mak)ng progress towards our consumers w)ll be affected by )ncreases )n w)ll requ)re w)de-scale decarbon)s)ng of comm)tment; The greenhouse gas footpr)nt energy and food pr)ces and extreme weather energy gr)ds, effect)ve carbon pr)c)ng and of the mak)ng and use of our products has events w)ll d)splace commun)t)es; courageous government pol)c)es; reduced by around 6% per consumer use Be)ng proact)ve on cl)mate change )s s)nce 2010;* essent)al to ensur)ng we rema)n a v)able We have made part)cularly good progress bus)ness )n the future; We also reap the )n reduc)ng greenhouse gas em)ss)ons from benef)ts through )nnovat)on, new product transport and manufactur)ng by )ncreas)ng development and cost eff)c)enc)es; eff)c)ency and us)ng more renewable energy;

OUR FOOTPRINT 25% 4% 2% 68% 1%

+ + + +

Raw mater5als Manufacture Transport @onsumer use D5sposal

TAR$ET SUMMARY Ach)evedL 2 On-planL 8 Off-planL 1 % of target ach)evedL 0

Source for footpr'nt and p'e chart4 Un)lever 2011-12 footpr)nt study across 14 countr)es; % of total )n tonnes; * Our env)ronmental targets are expressed aga)nst a basel)ne of 2008 and on a ‘per consumer use’ bas)s; Th)s means a s)ngle use, port)on or serv)ng of a product; As of Apr)l 2013, our new automated system only allows us to compare our footpr)nt to 2010 rather than to our or)g)nal 2008 basel)ne;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 $reenhouse $ases 25 3 $REENHOUSE $ASES DRY SHAMPOO SALES GROW 19% Our dry shampoos allow women to refresh ha)r between washes, sav)ng t)me and extend)ng the)r style; They may also encourage people to wash the)r ha)r w)th hot water less often; We have now rolled out our dry shampoos to ten countr)es under n)ne brands, )nclud)ng TRESemmé, Suave, T)E) and VO5; Sales grew by over 19% )n 2012; We are the market leader )n the US w)th 75% share and )n 2012 launched the product under the Dove brand;

OUR FOOTPRINT The product categor)es wh)ch make the REDU4E $REENHOUSE REDU4E $REENHOUSE largest contr)but)on to our greenhouse gas $AS EMISSIONS FROM $AS EMISSIONS FROM footpr)nt are those where the consumer SKIN 4LEANSIN$ AND WASHIN$ 4LOTHES requ)res heated water; Soap, shower gel and shampoo and cond)t)oner products HAIR WASHIN$ alone account for more than half our total footpr)nt; OUR TAR$ETS OUR TAR$ETS Reduce the greenhouse gas )mpact of OUR $REENHOUSE $AS FOOTPRINT • By 2015 we a)m to reach 200 m)ll)on the laundry process byL (% FONTRIBUTION BY FATEEORY 2011x12) consumers w)th products and tools that w)ll help them to reduce the)r • Foncentrat)ng our l)qu)ds and compact)ng our powders; 2 2 1 1 greenhouse gas em)ss)ons wh)le 3 wash)ng and shower)ng; Our plan )s 4 • Reformulat)ng our products to reduce to reach 400 m)ll)on people by 2020; 5 greenhouse gas em)ss)ons by 15% by 2012; 6 OUR PERFORMAN4E 48 Wh)le we have made some l)m)ted • Encourag)ng our consumers to wash progress, overall th)s target rema)ns at lower temperatures and at the 6 challeng)ng; correct dosage )n 70% of mach)ne washes by 2020; OUR PERSPE4TIVE 11 The greatest greenhouse gas )mpact OUR PERFORMAN4E of our shampoos, shower gels and soaps 14% of our portfol)o )n our top 14 11 occurs when they are used by consumers countr)es was made up of concentrated Soap and shower gel w)th heated water; Dur)ng 2012 we and compacted products at end 2012, † Laundry detergents and fabr)c cond)t)oners Shampoo and cond)t)oners cont)nued to explore a range of approaches compared to our basel)ne of 4% Soups, sauces and stock cubes to help us understand consumer Tea and beverages )n 2008; Household cleaners behav)our to )nfluence the)r shower)ng Ice cream Margar)ne and spreads and bath)ng hab)ts; These )ncludedL Over 95% (by volume) of our laundry Mayonna)se, mustards and dress)ngs the roll-out of dry shampoo under powders )n our top 14 countr)es have Deodorants Toothpaste many brands such as Dove, Suave and been reformulated, ach)ev)ng a Sk)n care TRESemméa a promot)onal offer of a reduct)on of 15% )n greenhouse free aerator w)th Radox shower gel )n gas em)ss)ons; South Afr)caa and crowd sourc)ng fresh )deas on how to encourage consumers We commun)cate the benef)ts of to reduce heated water )n the shower; low-temperature wash)ng on our packs and onl)ne and are encourag)ng We est)mate that compared to wash)ng our consumers to use the r)ght dosage; ha)r w)th heated water, us)ng a dry shampoo reduces FO 2 by around 90%; OUR PERSPE4TIVE The dry shampoo market )s st)ll qu)te new L)qu)d laundry detergents are popular and the number of users )s relat)vely lowa w)th consumers and )n 2012 we were the however quant)tat)ve consumer panel market leader )n emerg)ng markets, w)th data from the US shows that for those market share of over 25%; The maQor)ty of who bought a dry shampoo, )t replaced our l)qu)d detergents are now sold )n a wet wash )n 60% of uses; Th)s suggests concentrated form; dry shampoo )s a potent)al way to reduce heated water )n the shower by offer)ng Foncentrat)ng our laundry products helps a mot)vat)ng beauty benef)t wh)ch leads to reduce greenhouse gas em)ss)ons, to a susta)nable behav)our; and )s good for our bus)ness – great performance comb)ned w)th lower mater)al and transport costs; However, )t can take t)me for consumers to sw)tch to concentrated or compacted products and use the r)ght dosage; Some consumers cont)nue to use larger doses than needed, wh)le others under-dose;

26 $reenhouse $ases Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

OVER €300 MILLION COST AVOIDED S)nce 2008, our manufactur)ng eco-eff)c)ency programme has used a number of cost- effect)ve )nvestments to reduce our energy, water and waste; In)t)at)ves range from encourag)ng people to adopt small act)ons that make a b)g d)fference cumulat)vely, such as ensur)ng l)ghts are turned off, to larger )nvestments such as b)omass bo)lers; We have reduced our env)ronmental footpr)nt wh)le avo)d)ng cumulat)ve supply cha)n costs of over d300 m)ll)onL

• Water d17 m)ll)on • Energy d99 m)ll)on • Waste d)sposal d10 m)ll)on • Mater)als d186 m)ll)on

However, )n some cases the cost of By des)gn)ng our products d)fferently, REDU4E $REENHOUSE $AS EMISSIONS we can cut out these var)at)ons; One example FROM OUR MANUFA4TURIN$ renewable energy )s h)gh compared to )s concentrated laundry capsules, wh)ch we energy from non-renewable fuels; are promot)ng )n Europe as they ensure We cont)nue to evaluate cost-effect)ve consumers use an accurate dose; OUR TAR$ETS and scalable renewable technolog)es that w)ll contr)bute to our global target; • By 2020 FO 2 em)ss)ons from energy from our factor)es w)ll be at or below Our new factor)es now have susta)nab)l)ty 2008 levels desp)te s)gn)f)cantly bu)lt )nto the)r core des)gns; In add)t)on h)gher volumes; to eco-eff)c)ent des)gn of product)on Th)s represents a reduct)on of around processes, we are us)ng cert)f)cat)on 40% per tonne of product)on; systems such as LEED and BREEAM env)ronmental assessment methods and Versus a 1995 basel)ne, th)s represents rat)ng systems for bu)ld)ngs; Our seven a 63% reduct)on per tonne of product)on new factor)es )n 2013 w)ll ach)eve a rat)ng and a 43% absolute reduct)on; of LEED S)lver or above;

• We w)ll more than double our use of renewable energy to 40% of our total energy requ)rement by 2020; We have worked hard to reformulate our We recogn)se that th)s )s only a f)rst products by replac)ng )ngred)ents that step towards a long-term goal of 100% have a h)gh greenhouse gas )mpact w)th renewable energy; those w)th lower )mpacts; These can reduce greenhouse gas )mpact by up to • All newly bu)lt factor)es w)ll a)m to have a th)rd; less than half the )mpact of those )n our We have had some success w)th help)ng 2008 basel)ne; people to adopt d)fferent hab)ts; We are work)ng w)th the Internat)onal Assoc)at)on OUR PERFORMAN4E for Soaps, Detergents and Ma)ntenance 838,000 fewer tonnes of FO 2 from Products (AISE) to encourage people to energy produced )n 2012 than )n 2008 wash at lower temperatures; (a reduct)on of 31;5% per tonne of product)on); † REDUCING GHG Fompared to 1995, th)s represents THROUGH BIOMASS a 60% reduct)on )n absolute terms; In 2012 we comm)ss)oned a new b)omass bo)ler at our Pouso Alegre s)te )n Braz)l At end 2012 renewable energy wh)ch produces our AdeS and Knorr contr)buted 26;3% † of our total energy products; Th)s burns recycled wood rather use compared to 15;8% )n 2008; than o)l and w)ll reduce em)ss)ons by around 80%; Seven new factor)es were spec)f)ed )n 2012 for open)ng )n 2013; The)r eco- We are now us)ng b)o-energy at 30 of our eff)c)ent des)gn a)ms for em)ss)ons to 252 manufactur)ng s)tes, prov)d)ng around be 50% less than our 2008 basel)ne; 7% of the energy we use; Th)s reduces our annual em)ss)ons from foss)l fuels by over

OUR PERSPE4TIVE 150,000 tonnes of FO 2; We are plann)ng to We cont)nued to make progress )n reduc)ng )nstall add)t)onal bo)lers at s)tes )n Lat)n

FO 2 )n 2012, add)ng to sav)ngs s)nce our 2008 Amer)ca, Afr)ca and As)a; basel)ne, wh)ch are now equ)valent to tak)ng around 200,000 cars off the road; We have also made good progress )n )ncreas)ng the energy from renewable sources at our manufactur)ng s)tes; All our s)tes )n the US now purchase electr)c)ty from cert)f)ed renewable sources, as well as those )n Europe and Fanada;

† To be )ndependently assured by PwF )n 2013, see page 52; † To be )ndependently assured by PwF )n 2013, see page 52;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 $reenhouse $ases 27 3 $REENHOUSE $ASES ULTRALOGISTIK SAVES €50 MILLION Our UltraLog)st)k control tower organ)sat)on enables us to co-ord)nate our transport act)v)t)es eff)c)ently; We establ)shed a tower )n Poland )n 2007 wh)ch has saved more than d50 m)ll)on )n costs over 2008-12; We now have towers )n other reg)ons and w)ll cont)nue w)th more )n 2013;

REDU4E $REENHOUSE $AS TRANSPORT NETWORK REDU4E $REENHOUSE $AS EMISSIONS EMISSIONS FROM TRANSPORT SAVES CARBON AND FROM REFRI$ERATION ROAD MILES OUR TAR$ETS OUR TAR$ETS

• By 2020 FO 2 em)ss)ons from our global As part of our UltraLog)st)k transport network, As the world’s largest producer of )ce log)st)cs network w)ll be at or below we are creat)ng reg)onal d)str)but)on hubs; cream, we w)ll accelerate our roll-out of 2010 levels desp)te s)gn)f)cantly h)gher These w)ll )mprove operat)onal eff)c)ency freezer cab)nets that use cl)mate-fr)endly volumes; Th)s w)ll represent a 40% s)gn)f)cantly and reduce total d)stance (hydrocarbon) refr)gerants; When we

)mprovement )n FO 2 eff)c)ency; travelled by 175 m)ll)on km )n Europe alone launched our Plan )n November 2010 we from 2013 to 2015 (compared to 2010); had already purchased 450,000 un)ts w)th We w)ll ach)eve th)s by reduc)ng truck These hubs are part-funded by the EU’s the new refr)gerant; m)leagea us)ng lower em)ss)on veh)clesa programme for log)st)cs operators who are employ)ng alternat)ve transport such as comm)tted to the susta)nable transport of • We w)ll purchase a further 850,000 ra)l or sh)pa and )mprov)ng the energy goods across Europe; un)ts by 2015; eff)c)ency of our warehouses; We w)ll have 12 hubs )n Europe by 2014; OUR PERFORMAN4E OUR PERFORMAN4E Each )s respons)ble for ensur)ng that trucks are more fully loaded as they travel across Around 332,000 cl)mate-fr)endly 10% )mprovement )n FO 2 eff)c)ency s)nce freezers purchased )n 2012, tak)ng us Europe, wh)ch w)ll reduce FO 2 em)ss)ons 2010; 7% )mprovement )n FO 2 eff)c)ency to over 800,000 of our target of 850,000; and a 7% reduct)on )n absolute terms )n by nearly 16,000 tonnes over 2010-14; 2012 compared to 2011;* Mak)ng our log)st)cs more eff)c)ent del)vers real bus)ness benef)ts )nclud)ng reduced OUR PERSPE4TIVE Our cl)mate-fr)endly hydrocarbon (HF) OUR PERSPE4TIVE costs, better bus)ness plann)ng and freezers have a negl)g)ble global warm)ng To get our products from our factor)es to )mproved serv)ce; potent)al compared to those that conta)n the market, we transport our goods over hydrofluorocarbons (HFFs); They are also 1;5 b)ll)on km each year – the equ)valent of around 10% more energy eff)c)ent; travell)ng to the moon and back more than 2,000 t)mes; In add)t)on to buy)ng freezers w)th cl)mate- fr)endly refr)gerants, we have been We are leverag)ng th)s scale by creat)ng p)oneer)ng new models us)ng state-of- reg)onal d)str)but)on hubs wh)ch w)ll the-art components to )ncrease the)r )mprove operat)onal eff)c)ency s)gn)f)cantly energy eff)c)ency; (see r)ght); Over 2010-12 we purchased around 290,000 To reach our 2020 target we need to of these more energy-eff)c)ent freezers; collaborate w)th external partners as we do not own the trucks, tra)ns and sh)ps that We est)mate that the energy eff)c)ency of the we use; We are mak)ng susta)nab)l)ty part of freezers we bought )n 2012 avo)ded around

our work)ng agreements w)th )nfrastructure 40,000 tonnes of FO 2 em)ss)ons compared to prov)ders and operators; 2008 models; We are work)ng w)th )ndustry to promote the move to more env)ronmentally fr)endly freezers; We are dr)v)ng an )ndustry comm)tment to phase out HFFs by 2015 through our part)c)pat)on )n the Fonsumer Eoods Forum and as the cha)r of Refr)gerants, Naturallyf

* Fumulat)ve )mprovement s)nce 2010 )s measured across our top 14 countr)esa annual )mprovement )s measured )n more than 50 countr)es;

28 $reenhouse $ases Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

CLIMATE;FRIENDLY FREEZERS GROW SALES AND CUT COSTS In Denmark our greener freezers have helped us w)n new bus)ness; We agreed new partnersh)ps w)th Fakta d)scount stores )n 2009 and OK Plus petrol cha)n )n 2011, wh)ch are part of the reta)ler FOOP; Pr)or to th)s Un)lever had very l)ttle bus)ness w)th e)ther company; A key factor was our ab)l)ty to demonstrate that our cl)mate-fr)endly freezers generate

lower FO 2 em)ss)ons and use less energy, del)ver)ng better energy eff)c)ency for our customers; We have ach)eved excellent growth w)th both each year s)nce then;

REDU4E ENER$Y 4ONSUMPTION IN REDU4E EMPLOYEE TRAVEL OUR OFFI4ES FUTURE CHALLENGES Our greatest greenhouse gas )mpact comes from the heated water people OUR TAR$ETS OUR TAR$ETS need when they take a shower w)th • By 2020 we w)ll halve the energy (kWh) • We are )nvest)ng )n advanced v)deo our soaps, shower gels and shampoos purchased per occupant for the off)ces conferenc)ng fac)l)t)es to make – espec)ally )n the US; F)nd)ng ways to )n our top 21 countr)es versus 2010; commun)cat)on eas)er wh)le reduc)ng reduce th)s )s cruc)al )f we are to meet travel for our employees; By 2011 our goal to halve the greenhouse gas OUR PERFORMAN4E th)s network w)ll cover more than em)ss)ons of our products across 30 countr)es; 11% reduct)on )n energy (kWh) the l)fecycle; purchased per occupant s)nce 2010; OUR PERFORMAN4E We are f)nd)ng th)s very d)ff)cult and have OUR PERSPE4TIVE 54 countr)es were covered by end 2011; only made l)m)ted headway; We have In 2012 we cont)nued to focus on mak)ng made a start by understand)ng people’s )mprovements to our IT systems to reduce OUR PERSPE4TIVE shower)ng hab)ts; In 2011 we reported energy use )n our off)ces; S)nce 2011, all new We exceeded our 2011 target; Through on shower)ng research )n the UK; We have personal computers are s)lver or gold Energy the use of telepresence )n 26 count)es we followed up w)th a s)m)lar study )n Austral)a Star rated and all servers )n our data centres el)m)nated the need for around 14,500 (see page 32); are gold Energy Star rated; In our data short-haul fl)ghts and over 23,500 long- E)ven the barr)ers to change, we are centres, we are consol)dat)ng the number haul fl)ghts; Th)s del)vered clear bus)ness exper)ment)ng w)th products l)ke dry of servers )n the US, As)a, Afr)ca, the M)ddle benef)ts w)th an est)mated sav)ng of almost shampoo, w)th offers such as free shower East and Turkeya we have decomm)ss)oned d40 m)ll)on )n costs and 113,500 tonnes )n aerators from Radox shower gel – wh)ch over 3,000 servers s)nce 2008; We have FO 2 em)ss)ons; We cont)nue to promote can save consumers up to d450 a year started to roll out a PF power management more flex)ble ‘ag)le work)ng’ to lessen the – and w)th compet)t)ons to open source platform wh)ch )s expected to reduce PF burden of travel for our employees and )nnovat)ve )deas; power consumpt)on by a m)n)mum of 20%; reduce greenhouse gas em)ss)ons; In 2013, we w)ll )ntroduce a personal A b)g part of our footpr)nt today )s )n the consumpt)on mon)tor to show employees US; But as people )n the fast-grow)ng the)r energy sav)ngs and paper use; markets of As)a and Afr)ca start to acqu)re wash)ng mach)nes and showers We are us)ng our bu)ld)ngs more eff)c)ently the task becomes even more d)ff)cult; by )ncreas)ng the average occupancy dens)ty Our challenge w)ll be to ensure that and opt)m)s)ng l)ght)ng, heat)ng and cool)ng people cont)nue to wash the)r clothes systems; We have developed a toolk)t wh)ch at low temperatures when they get helps s)tes take small act)ons to reduce the a wash)ng mach)ne; energy they use; We do not yet have v)able solut)ons and we w)ll cont)nue to seek )nnovat)ons wh)ch w)ll help people reduce the)r )mpacts; But large-scale change w)ll only come about )f carbon has an econom)c pr)ce and )f governments put the r)ght frameworks )n place; So we cont)nue to advocate amb)t)ous publ)c pol)cy to address cl)mate change and to )ncent)v)se the trans)t)on to a low-carbon economy;

See our webs'te for more

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 $reenhouse $ases 29 4 WATER REDUFINE OUR WATER USE WHERE IT MATTERS MOST

30 Water Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

WE HAVE A LONG WAY TO GO TO MEET OUR GOAL. WE MUST WORK IN PARTNERSHIP WITH OTHERS TO DRIVE SYSTEMIC CHANGE.

WATER Halve the water assoc5ated w5th the consumer use of our products by 2020K* Our water 5mpact per consumer use has rema5ned broadly unchanged s5nce 2010K*

OUR PERSPE4TIVE Water shortages are already affect)ng many measure our agr)cultural water )mpact; We are mak)ng some progress )n des)gn)ng parts of the world; By 2025, 1;8 b)ll)on people We have learnt that our pr)or)ty water-)ntens)ve and roll)ng out products wh)ch requ)re w)ll be l)v)ng )n countr)es or reg)ons w)th crops are tomatoes and sugar cane and that less water; Our Fomfort One R)nse fabr)c absolute water scarc)ty and two-th)rds )n overall our footpr)nt )s lower than we had cond)t)oner )s now ava)lable )n more water-stressed cond)t)ons; prev)ously est)mated; We have been work)ng water-scarce countr)es; L)febuoy has w)th our tomato suppl)ers for many years and launched a foam handwash wh)ch cuts Wh)le around 70% of ava)lable fresh water )s we w)ll cont)nue to )ntroduce dr)p )rr)gat)on to water use and we have rolled out dry used for agr)culture, when )t comes to personal our suppl)ers for th)s and other crops; shampoo to ten countr)es; and domest)c use, the UN est)mates that each person needs about 50-100 l)tres per day for We have made part)cular progress )n reduc)ng We have a long way to go to meet our goal; dr)nk)ng, cook)ng and wash)ng; Yet )n the water abstracted by our manufactur)ng s)tes; As we go forward, we w)ll be better prepared poorest countr)es people l)ve on as l)ttle as S)nce 2008 we have saved the equ)valent of for sourc)ng essent)al raw mater)als from 10 l)tres a day; The collect)on of water, typ)cally around 1;5 l)tres of water for every person on farmers w)th l)m)ted water suppl)es and undertaken by women, )s also an )ssue; the planet; we w)ll open up new markets by prov)d)ng Accord)ng to the UN, sub-saharan Afr)ca alone products wh)ch meet the needs of people The water used by our consumers )n wash)ng loses 40 b)ll)on hours per year collect)ng water; w)th restr)cted access to water; But )n the end and clean)ng )s more than seven t)mes greater transformat)onal change w)ll only come about Our approach )s to work across our value than the water embedded )n the agr)cultural when water )s pr)ced and there )s a f)nanc)al cha)n from raw mater)al sourc)ng to the raw mater)als we buy; In emerg)ng countr)es, )ncent)ve to encourage new behav)ours; des)gn of our products; S)nce 2010 we have wash)ng clothes can take up one-th)rd of worked w)th the Water Footpr)nt Network to a household’s water supply;

OUR FOOTPRINT 15% <1% 85%

+ +

Water used 5n the agr5cultural raw mater5als we source, measured 5n all Water we add Water used by consumers 5n water-scarce countr5es, measured 5n water-scarce countr5es 5n the world to the product seven water-scarce countr5es represent5ng around half the world’s populat5on

TAR$ET SUMMARY Ach)evedL 0 On-planL 5 Off-planL 1 % of target ach)evedL 0

Source for footpr'nt and p'e chart4 Un)lever 2011-12 footpr)nt study across 7 water-scarce countr)es; % of total * Our env)ronmental targets are expressed aga)nst a basel)ne of 2008 and )n l)tres; Our basel)ne for water )ncludes the water used by consumers w)th our products and the water )n the on a ‘per consumer use’ bas)s; Th)s means a s)ngle use, port)on or serv)ng formulat)on; We have calculated the water used )n agr)culture )n a separate study wh)ch covers all water-scarce of a product; As of Apr)l 2013, our new automated system only allows us to countr)es )n the world, see www;un)lever;com/susta)nable-l)v)ng/water/footpr)nt/ compare our footpr)nt to 2010 rather than to our or)g)nal 2008 basel)ne;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Water 31 4 WATER RADOX SAVES CONSUMERS MONEY We are exper)ment)ng w)th ways to help consumers reduce water use; Our Radox brand of shower gels )n South Afr)ca gave consumers a free aerator when they purchased two products; These can be f)tted to shower heads to reduce water and they can save people up to d450 a year;

OUR FOOTPRINT Our water footpr)nt )s calculated )n seven REDU4E WATER USE IN REDU4E WATER USE IN countr)es wh)ch we have def)ned as water- THE LAUNDRY PRO4ESS SKIN 4LEANSIN$ AND scarce, account)ng for around half the HAIR WASHIN$ world’s populat)on (see page 53); Our analys)s shows that around 38% of OUR TAR$ETS our water footpr)nt comes from the laundry We w)ll reduce the water requ)red )n the OUR TAR$ETS process – a s)gn)f)cant proport)on of laundry process byL • By 2015 we )ntend to reach 200 m)ll)on th)s )s wash)ng laundry by hand )n the consumers w)th products and tools • Mak)ng eas)er r)ns)ng products more develop)ng world; that w)ll help them to use less water w)dely ava)lable; A further 39% of our footpr)nt comes from wh)le wash)ng and shower)ng; Our shower)ng, bath)ng and wash)ng ha)r w)th • Prov)d)ng 50 m)ll)on households )n goal )s to reach 400 m)ll)on by 2020; our products; water-scarce countr)es w)th laundry products that del)ver excellent results OUR PERFORMAN4E OUR WATER FOOTPRINT but use less water by 2020; In 2012 we have )mproved our (% FONTRIBUTION BY FATEEORY 2011x12) understand)ng of th)s area but OUR PERFORMAN4E progress rema)ns slow; 8 In 2012 we launched Fomfort One R)nse, 10 our fabr)c cond)t)oner, )n Ind)a and OUR PERSPE4TIVE Fambod)a and expanded the Fomfort Around 39% of our domest)c water 38 One R)nse range )n Tha)land, V)etnam, footpr)nt occurs when people use our Indones)a and the Ph)l)pp)nes; soaps, shower gels and shampoos and 13 they can be slow or reluctant to change In 2012 One R)nse products were used the)r hab)ts; We have undertaken several )n 1;4 b)ll)on washes )n 28;7 m)ll)on stud)es )n d)fferent countr)es to )mprove households worldw)de, a 66% )ncrease our understand)ng of people’s shower)ng on 2010; † behav)our and how )t can be )nfluenced; For example, our shower study of 100 31 OUR PERSPE4TIVE households )n Austral)a gathered data We assessed both these targets as off on shower hab)ts and the relat)onsh)p Laundry detergents and fabr)c cond)t)oners between consumer behav)our and product Soap and shower gel track )n our last Report; Fompared to 2011, Household cleaners we have more proQects agreed )n our use; We )nstalled sensors to measure the Toothpaste Shampoo and cond)t)oners )nnovat)on p)pel)ne that g)ve us conf)dence durat)on, water use and frequency of we w)ll make greater progress )n the showers; We found the average shower The chart above shows the water assoc)ated com)ng years; We have also s)gn)f)cantly lasts about 9 m)nutes, longer than the w)th the consumer use of our products; expanded One R)nse products and sales are average UK shower of 8 m)nutes; grow)ng, so we have assessed our progress We have )ntroduced two )nnovat)ons that as back on track to reach our 2020 target; prov)de consumer benef)ts and encourage In water-scarce countr)es, around 38% of less water useL dry shampoo, wh)ch domest)c water )s used to clean clothes; refreshes the ha)r w)thout water, and In many of these areas, people wash L)febuoy foam handwash wh)ch can cut garments by hand; Our One R)nse fabr)c water use by 18%; cond)t)oner reduces the amount of water needed to remove detergent res)dues to one bucket rather than three; Th)s can save up to half the water per wash, around 30 l)tres, )f used correctly; In 2012 we cont)nued to )ntroduce th)s product to new countr)es and )t )s now ava)lable )n Ind)a and Fambod)a; It has a lead)ng pos)t)on )n some markets, account)ng for 38% of the fabr)c cond)t)oner market )n V)etnam and has r)sen to a quarter of the market )n Indones)a;

† To be )ndependently assured by PwF )n 2013, see page 52;

32 Water Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

ECO;EFFICIENCY AVOIDS €17 MILLION IN COSTS Investment )n cost-effect)ve technolog)es )n our factor)es – along w)th the treatment of process effluents to enable water reuse and )ncreased mon)tor)ng – has avo)ded over d17 m)ll)on )n cumulat)ve cost s)nce 2008;

REDU4E WATER USE REDU4E WATER USE IN OUR IN A$RI4ULTURE MANUFA4TURIN$ PRO4ESS FUTURE CHALLENGES The largest part of our footpr)nt )s assoc)ated w)th shower)ng, bath)ng OUR TAR$ETS OUR TAR$ETS and wash)ng clothes, Qust as our • We w)ll develop comprehens)ve plans • By 2020, water abstract)on by our greenhouse gas footpr)nt )s assoc)ated w)th our suppl)ers and partners to global factory network w)ll be at or w)th heat)ng that water for showers and reduce the water used to grow our below 2008 levels, desp)te s)gn)f)cantly wash)ng mach)nes; crops )n water-scarce countr)es; h)gher volumes; In those parts of the develop)ng world Th)s represents a reduct)on of around OUR PERFORMAN4E where water )s scarce, women often have 40% per tonne of product)on; In 2012 we ref)ned our understand)ng to walk long d)stances to collect water, of our )rr)gat)on water footpr)nt and Versus a 1995 basel)ne, th)s represents or they have to become ‘water managers’ )dent)f)ed pr)or)ty crops and locat)ons a 78% reduct)on per tonne of product)on )n the home – stor)ng and rat)on)ng for further work; and a 65% absolute reduct)on; We w)ll scarce water carefully; If we can develop focus )n part)cular on factor)es )n more )nnovat)ons l)ke Fomfort One R)nse, OUR PERSPE4TIVE water-scarce locat)ons; wh)ch reduce the water needed for do)ng In 2012, us)ng data from the Water Footpr)nt the laundry, these w)ll save people t)me Network, we completed a ground-break)ng • All newly bu)lt factor)es w)ll a)m to as well as be)ng more conven)ent; abstract less than half the water of those assessment of the amount of )rr)gat)on water Long-term lack of )nvestment )n water )n our 2008 basel)ne; used to produce our key agr)cultural raw )nfrastructure w)ll exacerbate the problem mater)als )n all the water-scarce countr)es of water scarc)ty )n many countr)es; we source from; Th)s )ncluded a deta)led OUR PERFORMAN4E assessment of our key agr)cultural mater)als 13 m)ll)on fewer m 3 of water abstracted We need to work )n partnersh)p w)th (around two-th)rds of our volumes) and )n 2012 than )n 2008 (a reduct)on of governments, NEOs and consumers cons)derat)on of a further 30 mater)als; 25% per tonne of product)on); † to address and manage water use effect)vely; Water pr)c)ng and water Our assessment )s much more prec)se than Fompared to 1995, th)s represents meter)ng, alongs)de consumer educat)on, our prev)ous analys)s wh)ch we used to draw a 73% reduct)on )n absolute terms; w)ll ult)mately be necessary to dr)ve up our 2008 water footpr)nt d)agram; Th)s )s system)c change; largely due to better water footpr)nt Seven new factor)es were spec)f)ed )n est)mates and more spec)f)c )nformat)on on 2012 for open)ng )n 2013; The)r eco- the areas )n wh)ch our key crops are grown; eff)c)ent des)gn a)ms to abstract 50% less water per tonne of product)on than Our footpr)nt )s lower than we had prev)ously the 2008 basel)ne; est)mated; We thought that the total water used to produce our agr)cultural )ngred)ents OUR PERSPE4TIVE was about 50% of our value cha)n footpr)nt; We have made good progress )n reduc)ng We now know that )t )s about 15%, and that water abstracted by our manufactur)ng s)tesL about 85% relates to water used by our s)nce 2008 we have saved the equ)valent of consumers (see updated footpr)nt, page 31); around 1;5 l)tres of water for every person on The assessment )dent)f)ed tomatoes and the planet; Water use per tonne of product)on sugar cane as pr)or)ty crops from a water decreased by 7% )n 2012 compared to 2011; perspect)ve; We have already worked for In 2012 we )nvested )n four effluent recycl)ng many years on promot)ng dr)p )rr)gat)on proQects at s)tes )n South As)a to reduce w)th our tomato suppl)ers; We w)ll now abstract)on by over 60,000 m 3 per year; step up our act)v)ty and cont)nue to work w)th suppl)ers to collect data for self-ver)f)ed Our Ind)an manufactur)ng s)tes prov)de many crops grown accord)ng to the Un)lever good examples of how ra)nwater )s used Susta)nable Agr)culture Fode; for factory ut)l)t)es such as cool)ng towers, bo)lers, manufactur)ng processes (follow)ng treatment) and to)let flush)ng; However, the relat)vely low cost of water makes Qust)fy)ng the costs of some water reduct)on proQects d)ff)cult; We w)ll therefore See our webs'te for more focus on reduc)ng water use )n s)tes we have )dent)f)ed as pr)or)ty water-scarce locat)ons; † To be )ndependently assured by PwF )n 2013, see page 52;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Water 33 5 WASTE REDUFE, REUSE, REFYFLE

34 Waste Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

OVER HALF OUR FACTORIES ACHIEVED ZERO NON;HAZARDOUS WASTE TO LANDFILL IN 2012.

WASTE Halve the waste assoc5ated w5th the d5sposal of our products by 2020* Our waste 5mpact per consumer use has reduced by around 7% s5nce 2010K*

OUR PERSPE4TIVE Packag)ng plays a key role )n protect)ng our We have made good progress )n reduc)ng More of our packag)ng )s now recyclable products; But )t can also end up as waste our waste; In manufactur)ng, over half or conta)ns recycled mater)al, but we are )n landf)ll, dump)ng grounds or as l)tter; our s)tes ach)eved zero non-hazardous f)nd)ng that tackl)ng post-consumer waste Increas)ng resource scarc)ty means )t )s waste to landf)ll )n 2012 and we are sett)ng )s more challeng)ng; more urgent than ever to be eff)c)ent w)th a new target for all our s)tes to ach)eve th)s We are cont)nu)ng to work w)th others packag)ng and f)nd solut)ons to deal w)th by 2015; – from )nfluenc)ng government pol)cy to ‘post consumer waste’ – packag)ng and Progress has also been made )n learn)ng from suppl)ers and waste serv)ce product thrown away after use by our l)ghtwe)ght)ng our packag)ng; Th)s often prov)ders, as well as collaborat)ng w)th consumers; Th)s )s part)cularly )mportant )n )nvolves select)ng new mater)als wh)ch other )ndustry players on non-compet)t)ve develop)ng markets where )nfrastructure to enable less mater)al use; Our ded)cated pr)or)t)es, such as develop)ng new mater)als manage packag)ng waste has not kept pace global team of experts, called the Mater)als that can be eas)ly recycled; We have )n)t)ated w)th the rap)d r)se )n consumpt)on; Fapab)l)ty Eroup, develops long-term a number of p)lots on mater)als wh)ch are Our approach )s to reduce, reuse and )nnovat)ve solut)ons to reduce packag)ng; usually cons)dered more d)ff)cult to recycle recycle; There )s a clear bus)ness case; They work w)th spec)al)st suppl)ers to draw at scale; We w)ll collaborate w)th others By reduc)ng packag)ng we can ga)n cost on the latest technolog)es wh)ch are then across our value cha)n to develop new benef)ts )n mater)als, energy and transport; appl)ed across our product categor)es; end-to-end solut)ons;

OUR FOOTPRINT 58% 19%23% [X%]

+ + –

Nat5onal 5ndex of mater5als Pr5mary packag5ng Transport packag5ng Product leftovers recycled and recovered / est5mates

TAR$ET SUMMARY Ach)evedL 1 On-planL 9 Off-planL 1 % of target ach)evedL 1

Source for footpr'nt and p'e charts4 Un)lever 2011-12 footpr)nt study across 14 countr)es; We set our basel)ne by calculat)ng the waste from over 1,600 representat)ve products; We d)d % of total )n tonnes; th)s at an absolute level as well as on a per consumer use bas)s )n 14 countr)es; The calculat)on * Our env)ronmental targets are expressed aga)nst a basel)ne of 2008 and on a ‘per consumer use’ covers 70% of our volumes; As of Apr)l 2013, our new automated system only allows us to bas)s; Th)s means a s)ngle use, port)on or serv)ng of a product; compare our footpr)nt to 2010 rather than to our or)g)nal 2008 basel)ne;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Waste 35 5 WASTE NEW TECHNOLOGY SAVES MONEY Dur)ng 2011 we launched a new bottle des)gn )n Indones)a and Tha)land for our F)tra sk)n care brand; Th)s resulted )n a we)ght reduct)on of 365 tonnes of mater)al; In 2012, we )ntroduced a new technology – b)-modal res)n – and we saved a further 70 tonnes of mater)al; The same technology )s now be)ng rolled out across many more of our sk)n care and ha)r care brands and w)ll br)ng further sav)ngs )n mater)al and cost;

OUR FOOTPRINT Our analys)s has h)ghl)ghted that our food REDU4E PA4KA$IN$ CUTTING packag)ng )s one of the b)ggest contr)butors PACKAGING COSTS to our waste footpr)nt; But to ach)eve our goal we w)ll need to reduce waste across The mater)al we use to wrap our )ce cream OUR TAR$ETS brands, Tw)ster, Paddle Pop and Fruttare )s all product categor)es by reduc)ng the • By 2020 we w)ll reduce the we)ght we)ght of packag)ng and by help)ng to made of layers; Our R&D experts, work)ng of packag)ng that we use by a w)th academ)cs and suppl)ers, have )ncrease recycl)ng; Tea bags form a th)rd throughL s)gn)f)cant proport)on of product leftovers; developed new mater)als wh)ch reduce both - l)ghtwe)ght)ng mater)als the number of layers and the)r th)ckness; OUR WASTE FOOTPRINT - opt)m)s)ng structural and The results speak for themselves; These (% FONTRIBUTION BY FATEEORY 2011x12) mater)al des)gn brands have reduced the)r use of flow 4 wrap from 19 spec)f)cat)ons to Qust three 5 17 - develop)ng concentrated vers)ons worldw)de; Th)s change reduces the amount 5 of our products of packag)ng we use and has )mmed)ate 5 - el)m)nat)ng unnecessary packag)ng; bus)ness benef)ts; We started roll)ng out these mater)als )n 2012; When our roll-out 7 11 OUR PERFORMAN4E )s complete, we ant)c)pate a sav)ng of around An est)mated 9;5% reduct)on )n we)ght d1;3 m)ll)on, complemented by a mater)al per consumer use over 2011-12 reduct)on of around 530 tonnes; 8 compared to 2010, ach)eved through 11 a comb)nat)on of l)ghtwe)ght)ng and 8 mater)al des)gn opt)m)sat)on;

10 9 OUR PERSPE4TIVE Soups, sauces and stock cubes We are mak)ng good progress to reduce Soap and shower gel Tea and beverages our packag)ng; We have trad)t)onally Laundry detergents and fabr)c cond)t)oners focused on reduc)ng packag)ng mater)al Deodorants Shampoo and cond)t)oners s)mply as a route to cutt)ng costs; But our Ice cream Mayonna)se, mustards and dress)ngs focus has changed; We are now focus)ng Household cleaners on develop)ng )nnovat)on )n l)ghter, Margar)ne and spreads Sk)n care stronger and better mater)als that have Toothpaste a lower env)ronmental )mpact; To help us do th)s we have establ)shed a Mater)als Fapab)l)ty Eroup who work together w)th OUR WASTE FOOTPRINT suppl)ers to develop new technolog)es; (% FONTRIBUTION BY MATERIAL TYPE 2011x12) New technolog)es are cr)t)cal to ensure 3 3 we have a cont)nuous programme for 4 packag)ng reduct)ons; For example,

11 33 we have reduced the number of layers and the th)ckness of the sachet mater)als used for our ha)r products )n South East As)a, and we w)ll now roll th)s out across Ind)a, Pak)stan and Bangladesh; Once the 13 roll-out )s complete, we w)ll save around 2,500 tonnes of mater)al;

16 17

Paper and board PE Flex)ble lam)nates Other Elass PET PP Metals

Measured by mater)al type, paper and board, flex)ble lam)nates and glass make up the maQor)ty of our waste footpr)nt;

36 Waste Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

DEEPER INSIGHTS DRIVE ACTION Our deta)led analys)s shows that nat)onal recycl)ng rates for part)cular mater)als often lack clar)ty; For example, a 90% recycl)ng rate for alum)n)um packag)ng may be based largely on recycl)ng of alum)n)um dr)nks cans, and )t )s therefore )nappropr)ate to apply the same rate when calculat)ng waste to landf)ll for our alum)n)um aerosol packag)ng; Th)s analys)s helps focus our efforts to )ncrease recycl)ng for spec)f)c packag)ng formats; For example we have )ncreased aerosol deodorant recycl)ng through strateg)c partnersh)ps w)th )ndustry assoc)at)ons and some of our customers )n the UK, Braz)l and Mex)co;

RE4Y4LE PA4KA$IN$ REUSE PA4KA$IN$

OUR TAR$ETS OUR TAR$ETS • Work)ng )n partnersh)p w)th )ndustry, • We w)ll prov)de consumers w)th governments and NEOs, we a)m to ref)lls )n our home and personal care )ncrease recycl)ng and recovery rates portfol)o to make )t poss)ble to reuse on average by 5% by 2015 and by 15% the pr)mary pack; by 2020 )n our top 14 countr)es; For some th)s means doubl)ng or even OUR PERFORMAN4E tr)pl)ng ex)st)ng recycl)ng rates; We )ntroduced ref)lls )n several We w)ll make )t eas)er for consumers markets dur)ng 2012, )nclud)ng Fh)na, to recycle our packag)ng by us)ng ENCOURAGING Ind)a, South Afr)ca and the UK; mater)als that best f)t the end-of-l)fe treatment fac)l)t)es ava)lable )n MORE RECYCLING OUR PERSPE4TIVE the)r countr)es; We are bu)ld)ng our knowledge of recycl)ng We are hav)ng some success )n develop)ng )n several ways; markets; We sell ref)ll pouches )n Fh)na and • By 2020 we w)ll )ncrease the recycled South Afr)ca for some of our shampoo brands; mater)al content )n our packag)ng to In the US, our Dove and Suave brands are max)mum poss)ble levels; Th)s w)ll act work)ng w)th Recyclebank to )ncent)v)se In developed markets th)s area rema)ns as a catalyst to )ncrease recycl)ng rates; consumers to recycle more bathroom challeng)ng as consumers somet)mes see products; Un)lever Ventures has )nvested ref)lls as unappeal)ng; However, we cont)nue OUR PERFORMAN4E )nd)rectly )n Recyclebank as )t w)ll help us to exper)ment and are expand)ng our range; An example )s T)mote) shampoo’s 500 ml 3;5% )ncrease )n recycl)ng and )ncrease our understand)ng of how to ref)ll, launched )n the UK )n 2012; recovery rates, over the 2010 average encourage people to recycle more; Recycl)ng and Recovery Index (RRI), In Europe, we have comm)ss)oned stud)es averaged across our top 14 countr)es; )n several countr)es a)med at understand)ng Some of th)s )ncrease resulted from the recycl)ng )nfrastructure for polypropylene )mproved data; (PP) pots, trays and tubs; These are w)dely used by our margar)ne brands, Wall’s )ce 3,126 tonnes of post-consumer creams and Vasel)ne Qars; The stud)es have recycled mater)als )ncorporated shown that th)s type of packag)ng )s hardly )nto our r)g)d plast)c packag)ng; recycled and, at best, )s burnt for energy; We are currently engaged )n d)scuss)ons OUR PERSPE4TIVE w)th players from each stage of the recycl)ng We have made modest progress aga)nst process; We )ntend to p)lot a proQect )n 2013 our targets; focused on creat)ng a v)able bus)ness model Th)s area )s complex, as we ant)c)pated; wh)ch st)mulates greater demand for PP In some countr)es there )s almost no pots, trays and tubs to be collected, sorted )nfrastructure ava)lable to collect waste and recycled; and some mater)als cannot read)ly be recycled as technolog)es do not yet ex)st; In other countr)es w)th more developed )nfrastructure, certa)n packag)ng formats, although manufactured from popular mater)als such as PET, are st)ll not collected and recycled )n s)gn)f)cant volumes; We are us)ng the knowledge ga)ned from )nfrastructure stud)es and p)lot )n)t)at)ves to develop the most su)table solut)ons, whether th)s )nvolves develop)ng a new recycl)ng waste stream or rev)ew)ng the mater)als used )n our products;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Waste 37 5 WASTE RETHINKING WASTE AVOIDS OVER €196 MILLION IN COSTS We est)mate that between 2008 and 2012 our focused manufactur)ng programme of waste el)m)nat)on, reuse, recycl)ng and recovery has avo)ded costs of over d186 m)ll)on )n raw and packag)ng mater)als and has dr)ven down Zero waste to landf'll waste d)sposal costs by more than d10 m)ll)on;

In 2012 about 76,000 fewer tonnes of s)te TA4KLE SA4HET WASTE REDU4E WASTE FROM OUR MANUFA4TURIN$ waste were sent to landf)ll compared to our 2008 basel)ne; Th)s )s the equ)valent of more than one m)ll)on household b)ns of waste; OUR TAR$ETS OUR TAR$ETS By the end of 2012, 133 manufactur)ng s)tes • Our goal )s to develop and )mplement a • By 2020 total waste sent for d)sposal ach)eved zero non-hazardous waste to landf)ll; susta)nable bus)ness model for handl)ng w)ll be at or below 2008 levels desp)te Th)s )s over half our 252 s)tes, up from 74 at our sachet waste streams by 2015; s)gn)f)cantly h)gher volumes; the start of the year; In the UK for example, Th)s represents a reduct)on of around we reduced the number of waste prov)ders OUR PERFORMAN4E 40% per tonne of product)on; from 65 to one, max)m)s)ng opportun)t)es We are )nvest)gat)ng the potent)al of to )dent)fy recycl)ng and benef)c)al recovery a new technology to f)nd uses for sachet Versus a 1995 basel)ne, th)s represents routes and ach)ev)ng cost sav)ngs; waste; We bel)eve th)s w)ll generate an 80% reduct)on per tonne of product)on Bu)ld)ng on our good progress, )n 2012 we h)gher value returns for sachet waste, and a 70% absolute reduct)on; set a stretch)ng new target for 100% of our thereby help)ng us to bu)ld a stronger manufactur)ng s)tes to ach)eve zero non- bus)ness case, wh)ch for the moment • By 2015 all manufactur)ng s)tes w)ll hazardous waste to landf)ll by the end rema)ns a challenge; ach)eve zero non-hazardous waste to landf)ll; of 2015; OUR PERSPE4TIVE (New Target 2012;) Empty sachets are generally cons)dered not worth collect)ng because they are small and • All newly bu)lt factor)es w)ll a)m to FINDING NEW l)ghtwe)ght so they lack value; Our amb)t)on generate less than half the waste of )s to develop a v)able bus)ness model for those )n our 2008 basel)ne; USES FOR WASTE sachet waste wh)ch cont)nues to prov)de the OUR PERFORMAN4E In manufactur)ng, apart from el)m)nat)ng pr)ce and conven)ence benef)ts of sachets to waste, we also employ three other means 76,000 fewer tonnes of total waste )n low-)ncome consumers wh)lst tackl)ng the of cutt)ng our waste – reuse, recycl)ng and 2012 than )n 2008; Th)s represents a env)ronmental )ssues assoc)ated w)th the)r recovery; Examples )ncludeL the )ntroduct)on 51% reduct)on per tonne of product)on; † use, such as l)tter and lack of recyclab)l)ty; of reusable trans)t packag)ng )n our Hefe) In our 2011 Progress Report we shared the Fompared to 1995, th)s represents an factory )n Fh)naa waste mayonna)se results of our tr)als us)ng pyrolys)s – the 85% reduct)on )n absolute terms; converted to b)ofuela and effluent plant recovery of energy from sachet waste; We sludges )n Turkey and the Ph)l)pp)nes g)ven proved that the result)ng fuel was of h)gh 53% (133) of our manufactur)ng s)tes a second l)fe as alternat)ve raw mater)als )n enough qual)ty for our H)ndustan Un)lever ach)eved zero non-hazardous waste to construct)on products; factory; To make the o)l useable and landf)ll by end 2012; prof)table we have been work)ng w)th our suppl)er )n Ind)a to set up a d)st)llat)on Seven new factor)es were spec)f)ed )n column; But scale-up )s prov)ng a challenge; 2012 for open)ng )n 2013; The)r eco- eff)c)ent des)gn a)ms for waste to be In 2012 we )dent)f)ed a new technology wh)ch 50% less than the 2008 basel)ne and we bel)eve )s the next generat)on to pyrolys)s; zero non-hazardous waste to be sent Small-scale tr)als have shown a h)gh y)eld to landf)ll; and super)or qual)ty end product; We are currently )n negot)at)ons w)th the developer OUR PERSPE4TIVE and other value-cha)n partners w)th the a)m In 2012 we halved our waste d)sposed from of comm)ss)on)ng the f)rst commerc)al plant manufactur)ng s)tes compared to our 2008 )n Indones)a dur)ng 2013; basel)ne )n both absolute terms and per One of the b)ggest barr)ers to turn)ng tonne of product)on, wh)lst grow)ng our pyrolys)s or next generat)on technology )nto bus)ness; Th)s s)gn)f)cant m)lestone – wh)ch a bus)ness opportun)ty for reprocessors )s has far exceeded our )n)t)al target – was tak)ng collect)on of sachet waste to scale; ach)eved through waste el)m)nat)on and We have engaged NEOs )n Ind)a to ass)st reduct)on act)v)t)es and by d)vert)ng waste us and we plan to test d)fferent approaches away from d)sposal routes such as landf)ll; )n 2013; Th)s equates to a cost sav)ng of almost d10 m)ll)on s)nce 2008, ach)eved w)thout the need for cap)tal expend)ture; In add)t)on, reduct)on )n waste )n manufactur)ng s)nce 2008 has avo)ded costs of d186 m)ll)on; † To be )ndependently assured by PwF )n 2013, see page 52;

38 Waste Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

ZERO WASTE TO LANDFILL IN HALF OUR FACTORIES Over half our 252 factor)es across the world, from Fosta R)ca to Japan, now send no non-hazardous waste to landf)ll; We have set a stretch)ng new target – none of our factor)es across the world w)ll send any non-hazardous waste to landf)ll by the end of 2015;

ELIMINATE PV4 REDU4E OFFI4E WASTE FUTURE CHALLENGES Wh)le we are mak)ng good progress )n reduc)ng packag)ng, we cannot ach)eve OUR TAR$ETS OUR TAR$ETS our target to halve our waste unless • We w)ll el)m)nate PVF (polyv)nyl chlor)de) • In our top 21 countr)es, at least 90% of recycl)ng rates )ncrease s)gn)f)cantly; from all packag)ng by 2012 (where our off)ce waste w)ll be reused, recycled techn)cal solut)ons ex)st); or recovered by 2015 and we w)ll send We are )nvolved )n several )ntervent)ons zero waste to landf)ll by 2017; assoc)ated w)th recycl)ng and recovery, OUR PERFORMAN4E such as the Metal Matters campa)gn )n 99 99% of PVF removed from our portfol)o • By 2015 we w)ll reduce paper the UK; However th)s )s an area where by end 2012; consumpt)on by 30% per head )n our we have l)ttle control over the value cha)n top 21 countr)es; and are rel)ant on work)ng w)th others; OUR PERSPE4TIVE That )s why we rev)ewed our )nternal • We w)ll el)m)nate paper )n our )nvo)c)ng, We comm)tted to el)m)nate PVF from our pos)t)on on packag)ng recycl)ng and goods rece)pt, purchase order processes, packag)ng )n 2009; V)rtually all our extended producer respons)b)l)ty; We f)nanc)al report)ng and employee expense packag)ng )s now free of PVF; To get there are work)ng w)th our maQor markets to process)ng by 2015, where legally our R&D teams around the world have )ncrease our capac)ty to engage w)th allowable and techn)cally poss)ble; developed and tr)alled new mater)als and governments and other stakeholders to our supply cha)n has )nvested )n new f)nd the best pol)cy solut)ons to dr)ve up OUR PERFORMAN4E equ)pment; recycl)ng rates, wh)ch may vary from 88% of our off)ce waste was reused, However, we have yet to el)m)nate PVF country to country; recycled or recovered by end 2012; completely; Some of our foods use PVF )n Although th)s )s clearly a challenge, )t )s packag)ng for safety or hyg)ene reasons, 24% reduct)on )n paper consumpt)on per also an opportun)ty to )nsp)re end-to-end for example as a sealant )n metal food l)ds; head )n our top 21 countr)es by end 2012; solut)ons through collaborat)on on For such uses, commerc)ally v)able techn)cal non-compet)t)ve pr)or)t)es, not only solut)ons do not yet ex)st; We are seek)ng 14% of our )ncom)ng )nvo)ces were w)th)n the supply cha)n, but also w)th out new mater)als that prov)de the same processed electron)cally )n 2012, up from our customers and our peer compan)es; funct)onal propert)es as PVF at a v)able cost; 10% )n 2011; Demand for such alternat)ve mater)als )s currently small, so we have been at the OUR PERSPE4TIVE forefront of catalys)ng )nnovat)on )n the We have made good progress )n reus)ng, marketplace; Once these new opt)ons recycl)ng and recover)ng our off)ce waste; become ava)lable, many )ndustr)es w)ll In 2012, employee engagement campa)gns benef)t from them; and recycl)ng stat)ons helped us to )mprove waste awareness, reduce paper use and S)nce we launched the Un)lever Susta)nable d)vert waste from landf)ll; Th)s, comb)ned L)v)ng Plan, we have made several w)th agreements w)th waste management acqu)s)t)ons wh)ch have brought more contractors, has enabled us to ach)eve zero PVF )nto our bus)ness; PVF from these waste to landf)ll at 45% of target s)tes )n our acqu)s)t)ons )s not )ncluded )n our 99% top 21 countr)es; above; We are tak)ng act)on to el)m)nate )t; In 2012 we launched a global pr)nt standard; Double-s)ded pr)nt)ng rose to 37% from 28% )n 2010 )n our top 21 countr)es;

See our webs'te for more

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Waste 39 6 SUSTAINABLE SOUR4IN$ EROWINE FOR THE FUTURE

40 Susta?nable Sourc?ng Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

MORE THAN A THIRD OF OUR AGRICULTURAL RAW MATERIALS ARE NOW SOURCED SUSTAINABLY.

SUSTAINABLE SOURCING By 2020 we w5ll source 100% of our agr5cultural raw mater5als susta5nablyN 10% by 20103 30% by 20123 50% by 20153 100% by 2020K 36% of our agr5cultural raw mater5als were susta5nably sourced by the end of 2012K Th5s exceeded our 5nter5m m5lestone of 30%, and marks a s5gn5f5cant r5se from 24% 5n 2011K

OUR PERSPE4TIVE Half of our raw mater)als come from farms For example, ensur)ng the traceab)l)ty of palm Our progress on sourc)ng has been strong; and forests and the dec)s)ons that we make o)l back to )ts source can help Un)lever secure We are concentrat)ng f)rst on our top ten on who we source from, and how we work suppl)es susta)nably wh)le also ensur)ng agr)cultural raw mater)al groups, wh)ch w)th them, can have profound )mpl)cat)ons deforestat)on, land use and soc)al and account for around two-th)rds of our on global resources, cl)mate change and commun)ty )ssues are managed respons)bly; volumesL palm o)la paper and boarda soya farmer l)vel)hoods; sugara teaa fru)t and vegetablesa sunflower By shar)ng )nformat)on about where products o)la rapeseed o)la da)ry )ngred)entsa and There )s a clear bus)ness case for Un)lever come from, we are also meet)ng emerg)ng cocoa; We are on track for all these to source )ts raw mater)als susta)nably; consumer needs; L)pton tea and Magnum mater)als; But the task rema)ns )mmense, By tak)ng a long-term v)ew we can ensure )ce cream’s Ra)nforest All)ance cert)f)cat)on part)cularly where our volumes are small; secur)ty of supply, reduce costs and protect and the new Knorr soup labell)ng on scarce resources; Th)s long-term approach susta)nably grown tomatoes are lead)ng can also create a w)n-w)n for farmers; the way;

TAR$ET SUMMARY Ach)evedL 1 On-planL 15 Off-planL 1 % of target ach)evedL 0

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Susta?nable Sourc?ng 41 6 SUSTAINABLE SOUR4IN$ PROMOTING THE UPTAKE OF SUSTAINABLE PALM OIL IN CHINA Around 14% of palm o)l )s now cert)f)ed as susta)nable by the RSPO, but only half the ava)lable cert)f)ed susta)nable palm o)l )s be)ng taken up )n the market; In 2012 Un)lever Qo)ned key players )n )ndustry and government for the Fh)na Susta)nable Palm O)l Supply Fha)n Forum, for talks on promot)ng faster uptake )n Fh)na, the world’s second-largest consumer of palm o)l;

SUSTAINABLE SUSTAINABLE PAPER SUSTAINABLE SOY PALM OIL AND BOARD

OUR TAR$ETS OUR TAR$ETS OUR TAR$ETS • We w)ll source susta)nably all soy beans • We w)ll purchase all palm o)l from • We w)ll source 75% of the paper and by 2014 and all soy o)ls by 2020; cert)f)ed susta)nable sources by 2015; board for our packag)ng from cert)f)ed susta)nably managed forests or from OUR PERFORMAN4E • We w)ll purchase all palm o)l recycled mater)al by 2015; We w)ll 10% of soy o)l susta)nably sourced )n the susta)nably from cert)f)ed, traceable reach 100% by 2020; form of RTRS cert)f)cates by end 2012; sources by 2020; (New target 2012;) OUR PERFORMAN4E For soy beans, )n 2012 we made steady 63% of our paper and board came progress towards cert)f)ed suppl)es OUR PERFORMAN4E from cert)f)ed susta)nably managed )n 2013; 100% of palm o)l from susta)nable forests or from recycled mater)al by sources by end 2012L end 2012; OUR PERSPE4TIVE 97% v)a EreenPalm cert)f)catesa † and We use soy o)l )n our spreads, mayonna)se OUR PERSPE4TIVE and dress)ngs; We have supported the 3% of palm o)l purchased from Of the 63%, 87% compr)sed recycled f)bre Round Table on Respons)ble Soy (RTRS) cert)f)ed, traceable sources (through and 13% cert)f)ed v)rg)n f)bre; s)nce )t f)rst )ssued cert)f)cates and )n 2012 a segregated supply) by end 2012; we were one of the largest s)ngle purchasers In our 2011 Progress Report we est)mated of cert)f)cates; OUR PERSPE4TIVE that 60% of our paper and board came from susta)nable sources; S)nce then, we have We buy most of our soy o)l )n the US, where In Apr)l 2012, we announced that we would there )s currently no RTRS cert)f)ed soy; reach our 2015 target three years ahead of made s)gn)f)cant )mprovements to our data collect)on and report)ng processes so that Over 2011-12 we explored the potent)al for schedule; Th)s has been ach)eved pr)mar)ly an RTRS Nat)onal Interpretat)on for the US through the purchase of EreenPalm we now have more deta)led, aud)table data that does not rely on est)mates; soy )ndustry w)th the Un)ted Soybean Board cert)f)cates; We recogn)se that these (USB) and WWF US, but were unsuccessful; make a s)gn)f)cant contr)but)on to a more In 2012 we rolled out susta)nable paper However, we have Qo)ned F)eld to MarketL susta)nable palm o)l )ndustry, but they are packag)ng cert)f)ed by the Forest The Keystone All)ance for Susta)nable only a f)rst step; Stewardsh)p Founc)l for our Knorr wet Agr)culture; Th)s br)ngs together US To source susta)nably we need to be able soups )n Europe, and for our AdeS soy producers, agr)bus)nesses, food compan)es to trace our palm o)l back to the plantat)on dr)nks )n Braz)l; and conservat)on organ)sat)ons to create on wh)ch )t )s grown, and trace )ts route susta)nable outcomes for agr)culture; through cert)f)ed m)lls, transport and use; Its F)eldpr)nt Falculator enables growers Our new target )s to source all our palm o)l to analyse how the)r management cho)ces from cert)f)ed, traceable sources by 2020; )mpact natural resources and operat)onal eff)c)ency; Mak)ng use of th)s tool, we We began sourc)ng traceable palm o)l cont)nue to work w)th the USB as )t ref)nes for our European markets )n 2011, from )ts Soy Pledge’s assurance protocol for suppl)ers cert)f)ed by the Roundtable on susta)nable soy; Susta)nable Palm O)l; We are )nvest)ng d69 m)ll)on )n a palm kernel o)l process)ng In 2012, we d)d not purchase as much plant )n Indones)a and cons)der)ng s)m)lar susta)nable soy o)l as we hopeda however, Qo)nt venture )nvestments )n process)ng )n 2013 we w)ll beg)n a p)lot w)th US soy crude palm o)l der)vat)ves elsewhere to farmers to track and ver)fy performance help us ach)eve traceable suppl)es; )mprovements to ach)eve equ)valence to our Susta)nable Agr)culture Fode; We are comm)tted to work)ng w)th suppl)ers, peers, compet)tors and Soy beans make up about 10% of our soy governments to transform the )ndustry; purchases, for use )n our AdeS soy dr)nks; Th)s w)ll prov)de assurances to consumers We expect to make the f)rst purchases and help to break the l)nks between of susta)nable beans )n 2013; We are palm o)l, deforestat)on and land confl)ct; determ)ned to make progress and have a roadmap )n place to meet our 2014 target;

† To be )ndependently assured by PwF )n 2013, see page 52;

42 Susta?nable Sourc?ng Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

KNORR’S FIRST PRODUCT WITH Susta'nable SUSTAINABLY SOURCED LABEL sourc'ng Knorr’s new Tomato and Mascarpone soup was launched )n France )n 2012 carry)ng the label ‘Made w)th susta)nably grown tomatoes’; Th)s )s the f)rst t)me we have promoted an )ngred)ent as susta)nably sourced w)th farmers ver)fy)ng the)r progress )n accordance w)th Un)lever’s Susta)nable Agr)culture Fode; We have been work)ng w)th tomato suppl)ers for the last 15 years to reach th)s po)nt; Bu)ld)ng traceab)l)ty has been key – to ensure that the tomatoes that reach our packs are susta)nably grown and traceable r)ght through the supply cha)n and manufactur)ng process;

SUSTAINABLE TEA SUSTAINABLE FRUIT AND SUSTAINABLE 4O4OA VE$ETABLES

OUR TAR$ETS OUR TAR$ETS OUR TAR$ETS • By 2015 we a)m to have the tea )n all • We w)ll purchase 100% of our fru)t • We w)ll source cocoa susta)nably L)pton tea bags sourced from Ra)nforest from susta)nable sources by 2015; for our Magnum )ce cream by 2015; All)ance Fert)f)ed ™ estates; By 2020, All other cocoa w)ll be sourced 100% of Un)lever’s tea, )nclud)ng loose • We w)ll purchase 50% of our top 13 susta)nably by 2020; tea, w)ll be susta)nably sourced; vegetables and herbs from susta)nable sources by 2012 and 100% by 2015; OUR PERFORMAN4E OUR PERFORMAN4E Th)s accounts for over 80% of our 64% of cocoa for Magnum susta)nably 75% of our L)pton tea bag blends global vegetable and herb volume; sourced through Ra)nforest All)ance conta)ned a proport)on of Ra)nforest cert)f)cat)on by end 2012; Overall, All)ance Fert)f)ed ™ tea by end 2012; OUR PERFORMAN4E 43% of all cocoa sourced susta)nably; 7% of fru)t purchased susta)nably by Overall, 39% of the tea purchased for all end 2012; OUR PERSPE4TIVE our brands was sourced from Ra)nforest On pack and onl)ne, Magnum shares w)th All)ance Fert)f)ed ™ farms; 59% of our top 13 vegetables and herbs )ts consumers why )t has teamed up w)th purchased from susta)nable sources Ra)nforest All)anceL to source h)gh-qual)ty OUR PERSPE4TIVE by end 2012; cocoa beans, to )ncrease the )ncome of In 2007 we were the f)rst maQor tea company farmers and del)ver soc)al benef)ts such to comm)t to susta)nable sourc)ng of tea on OUR PERSPE4TIVE as )mproved health and safety pract)ces; a large scale; We are on track to ach)eve our We bought our f)rst susta)nable fru)t )n 2012; To ach)eve cert)f)cat)on, we are work)ng w)th 2015 m)lestone and 2020 target; In 2013 we w)ll focus our efforts on work)ng 20,000 small farmers across West Afr)ca; w)th our suppl)ers and look)ng for further Over the last f)ve years Un)lever and our Our strateg)c supply partner, Barry Fallebaut, partnersh)p opportun)t)es as we are a small suppl)ers have )nvested heav)ly )n )mprov)ng runs farmer tra)n)ng schools; The schools player )n th)s market; We have not made as farm)ng pract)ces among tea farmers, work w)th groups of local farmers to bu)ld much progress as we would have l)ked; bu)ld)ng capac)ty to more than 170,000 the)r sk)lls and knowledge around susta)nable Th)s makes our 2015 target challeng)ng, tonnes of Ra)nforest All)ance cert)f)ed cult)vat)on pract)ces; Those farmers then act but we have a plan )n place wh)ch makes tea; For example, all the tea we source as tra)ners, spread)ng good pract)ce amongst us conf)dent we w)ll reach )t; from Argent)na )s now Ra)nforest All)ance the)r commun)ty and encourag)ng more cert)f)ed, and th)s effort has contr)buted We exceeded our )nter)m target for our top farmers to follow the programme; s)gn)f)cantly to the development of the tea 13 vegetables and herbsa more than half our )ndustry )n the M)s)ones Prov)nce; suppl)ers had self-ver)f)ed the)r pract)ces accord)ng to the Un)lever Susta)nable Between 2007 and the end of 2012, a total Agr)culture Fode by the end of 2012; We of around 450,000 farmers had been tra)ned now have 24 ‘Landmark Farms’ supply)ng to the Ra)nforest All)ance standard, )n vegetables for our Knorr brand and act)ng as partnersh)p w)th Un)lever, )n preparat)on agr)cultural role models for other suppl)ers; for cert)f)cat)on; To meet our target, we have been work)ng Dur)ng 2012 we cont)nued to partner w)th suppl)ers and the)r farmers around the w)th the Netherlands-based Susta)nable world to )dent)fy areas for )mprovement and Trade In)t)at)ve (IDH) and the Kenya Tea assess the)r progress us)ng the Un)lever Development Agency (KTDA) to co-fund Susta)nable Agr)culture Fode; We work w)th farmer f)eld schools wh)ch promote suppl)ers of on)ons, garl)c and tomatoes )n susta)nable agr)culture through group Fal)forn)a, US and suppl)ers of gherk)ns and learn)ng and f)eld observat)on techn)ques; fru)t )n Ind)a; In Ind)a we a)m to boost y)elds Un)lever and IDH have Qo)ntly agreed to to at least the global average; )nvest a further d4 m)ll)on over the next two years to help take our susta)nab)l)ty )n)t)at)ves to scale )n Afr)ca, V)etnam and Ind)a; Th)s tra)n)ng w)ll not only benef)t Un)lever but also the tea )ndustry as a whole;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Susta?nable Sourc?ng 43 6 SUSTAINABLE SOUR4IN$ INVESTING IN TRACEABILITY FOR SUNFLOWER OIL In South Afr)ca we have been work)ng w)th our suppl)er Feoco to )mprove traceab)l)ty )n the supply cha)n; We )dent)f)ed a farm)ng commun)ty )n L)mpopo w)th good pract)ces that we could bu)ld on, then worked w)th the farmers by prov)d)ng f)nanc)al )ncent)ves to develop hybr)d seeds w)th h)gher y)elds; We can trace the o)ls r)ght back to the )nd)v)dual farms where the seeds were grown; Our next step w)ll be to scale up the proQect and roll )t out to d)fferent prov)nces and more farmers;

SUSTAINABLE SU$AR SUSTAINABLE RAPESEED OIL SUSTAINABLE DAIRY

OUR TAR$ETS OUR TAR$ETS OUR TAR$ETS • We w)ll source all sugar susta)nably • We w)ll source all rapeseed o)l • We w)ll source all da)ry produce by 2020; susta)nably by 2020; susta)nably by 2020;

OUR PERFORMAN4E OUR PERFORMAN4E OUR PERFORMAN4E 8% of sugar susta)nably sourced by 16% of rapeseed o)l susta)nably sourced 31% of da)ry produce susta)nably end 2012; by end 2012; sourced by end 2012;

OUR PERSPE4TIVE OUR PERSPE4TIVE OUR PERSPE4TIVE Un)lever has Qo)ned the Bonsucro Dur)ng 2012, we worked w)th one of our We made s)gn)f)cant progress )n 2012, roundtable, a not-for-prof)t )n)t)at)ve that )s maQor suppl)ers, Farg)ll, to ver)fy Eerman )ncreas)ng the proport)on of susta)nably ded)cated to reduc)ng the env)ronmental and o)lseed rape product)on aga)nst the Un)lever sourced da)ry )ngred)ents from 10% )n 2011 soc)al )mpacts of sugar cane product)on; Susta)nable Agr)culture Fode; Th)s bu)lds to 31% )n 2012; In December 2012, we purchased the f)rst- on a p)lot proQect we began )n 2009, wh)ch Follow)ng a successful p)lot )n 2011, we ever Bonsucro susta)nable sugar cred)ts )n has helped us to agree annual )mprovement have scaled up our work w)th one of the Braz)l; Although we are not a maQor buyer of plans that go beyond European good largest da)ry co-operat)ves )n the world, sugar, we were the f)rst Bonsucro member agr)cultural pract)ce, )nclud)ng b)od)vers)ty Fr)eslandFamp)na; The company has )ts to buy cred)ts as we are comm)tted to the act)on plans to enhance hab)tats; We now own susta)nab)l)ty comm)tments, such as susta)nable product)on of sugar; have a model that can be appl)ed to other the treatment of cows, graz)ng cond)t)ons, In 2012, we also sourced our f)rst sugar o)lseed crops; local b)od)vers)ty and waste )mpacts; from beet farmers )n France, Eermany and These are al)gned w)th the standards of the Netherlands; Th)s was ver)f)ed accord)ng our Susta)nable Agr)culture Fode; to our Susta)nable Agr)culture Fode;

SUSTAINABLE SUNFLOWER OIL

OUR TAR$ETS • We w)ll source all sunflower o)l susta)nably by 2020;

OUR PERFORMAN4E 14% of sunflower o)l susta)nably sourced In the UK, we have worked closely w)th the by end 2012; susta)nable agr)culture NEO, LEAF (L)nk)ng Env)ronment And Farm)ng), and our suppl)er OUR PERSPE4TIVE ADM to source cert)f)ed rapeseed o)l at scale In 2011 we scoped p)lot proQects for for the f)rst t)me; susta)nable sunflower o)l )n several reg)ons, but these took longer than expected to come to fru)t)on; However, )n 2012, we were able to source our f)rst susta)nable sunflower o)l and are back on track to ach)eve our target; Our suppl)es were self-ver)f)ed accord)ng to our Susta)nable Agr)culture Fode and sourced from Hungary v)a Farg)ll and from South Afr)ca (see above);

44 Susta?nable Sourc?ng Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

OUR SUSTAINABLE AGRICULTURE CODE The Un)lever Susta)nable Agr)culture Fode was launched )n 2010, after 15 years’ work; Our susta)nable sourc)ng programme rel)es on compl)ance w)th the Fode, through self- assessment or through external cert)f)cat)on standards; 2012 was our f)rst year of gett)ng to scale and gave us deeper )ns)ghts about suppl)ers’ challenges; We have now susta)nably sourced tomatoes, da)ry, rapeseed, sunflower seed, sugar beet and potatoes, demonstrat)ng the Fode’s flex)b)l)ty across crops and countr)es; Fh)nese tomato farmers have s)gn)f)cantly reduced fert)l)zer use wh)le )ncreas)ng y)elds, and we are track)ng pest )nfestat)on us)ng traps and smartphones, lead)ng to lower pest)c)de use and better qual)ty crops for Med)terranean tomato farmers;

FAIRTRADE BEN & JERRY’S 4A$E;FREE E$$S FUTURE CHALLENGES Susta)nable sourc)ng of all our raw mater)als rema)ns an amb)t)ous target, OUR TAR$ETS OUR TAR$ETS espec)ally where our market )nfluence • All flavours of Ben & Jerry’s )ce cream • We a)m to move to 100% cage-free eggs )s lower because of our smaller volumes; w)ll be Fa)rtrade cert)f)ed by 2013; for all our products,* )nclud)ng Ben We started w)th our top 10 agr)cultural (Target rev)sed 2012;) & Jerry’s )ce cream and Hellmann’s, mater)als and are now cons)der)ng the Amora and Falvé mayonna)ses next 30; These account for around 20% OUR PERFORMAN4E of our volume, so progress )n these areas OUR PERFORMAN4E In 2012 we made steady progress w)ll mark a s)gn)f)cant m)lestone; In 2012 towards ach)ev)ng Fa)rtrade cert)f)cat)on Our roll-out of products us)ng cage-free we made cons)derable progress w)th on all our )ce cream flavours; eggs cont)nued, w)th around one-th)rd )ngred)ents such as van)lla and meat; of our mayonna)se portfol)o )n North OUR PERSPE4TIVE Amer)ca becom)ng cage-free by We recogn)se that ver)f)cat)on and In Europe, our f)ve key commod)t)es (sugar, end 2012; cert)f)cat)on are not end goals; The real cocoa, coffee, van)lla and bananas) were challenge )s to show the pos)t)ve )mpacts converted to Fa)rtrade (FT) by the end of 2011; OUR PERSPE4TIVE that susta)nab)l)ty can have on the l)ves In Western Europe our Hellmann’s, Amora of farmers, the env)ronment and the Fonvert)ng the rest of our )ce creams )s a and Falvé brands have been 100% cage-free commun)t)es )n wh)ch they l)ve and work; maQor undertak)ng, )nvolv)ng around 200 s)nce 2009 and by the end of 2011, 99% of all )ngred)ents for nearly 90 flavours; In 2011 These )ssues are complex to tackle; eggs used )n Ben & Jerry’s )ce cream m)x we reported setbacks )n the US wh)ch meant Work)ng w)th others )s a cr)t)cal success worldw)de were cage-free; that we could not source all the FT-cert)f)ed factorL by transform)ng global supply )ngred)ents we needed for our US bus)ness; We have made good progress )n North cha)ns together, we can move faster We have found that FT )ngred)ents are Amer)ca )n 2012, and are conf)dent that we and also )ncrease awareness among s)mply not ava)lable or do not meet our w)ll ach)eve 100% cage-free eggs )n our consumers of the benef)ts of susta)nably spec)f)cat)ons for a range of the )ngred)ents mayonna)se portfol)o )n th)s reg)on over the sourced products; we use (such as some nuts and sp)ces); com)ng years; Our non-agr)cultural (and therefore non- So we have had to rev)se our target from Our progress has been helped by the fact renewable) raw mater)als have also been our prev)ous ‘all )ngred)ents’ to ‘all flavours’; that we have bu)lt long-term contracts to a focus )n 2012; In 2012 we worked w)th Fa)rtrade g)ve suppl)ers the conf)dence to )nvest )n We have been mapp)ng the landscape for Internat)onal to adQust our US convers)on cage-free product)on; m)neral m)n)ng to )dent)fy susta)nab)l)ty plan and )dent)f)ed that by us)ng FT )mprovements and we now have v)s)b)l)ty *Where allowed by local leg)slat)on; )ngred)ents for the f)ve maQor commod)t)es on the or)g)ns and extract)on s)tes for )n all our base m)xes and for our chunks and about half our portfol)o; We have also sw)rls, all our )ce cream flavours w)ll qual)fy looked )nto ex)st)ng )n)t)at)ves and for FT cert)f)cat)on by 2013; The vast maQor)ty IN4REASE SUSTAINABLE SOUR4IN$ programmes to reduce the env)ronmental, of our )ce creams w)ll be ava)lable )n stores OF OFFI4E MATERIALS health and safety )mpacts of the raw by the end of the year, w)th the rema)nder mater)als we use (‘product stewardsh)p becom)ng ava)lable early )n 2014; programmes’); OUR TAR$ETS • By 2013 we w)ll source all paper-based off)ce mater)als for our top 21 countr)es from e)ther cert)f)ed susta)nable forests or recycled sources;

OUR PERFORMAN4E More than 95% of paper-based mater)als from cert)f)ed susta)nable forests or recycled sources by September 2012;

OUR PERSPE4TIVE We are mak)ng good progress towards our 2013 target and w)ll cont)nue to work closely w)th our suppl)ers to ensure the robustness of our report)ng process; See our webs'te for more

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Susta?nable Sourc?ng 45 7 BETTER LIVELIHOODS SUPPORTINE EFONOMIF DEVELOPMENT

46 Better L?vel?hoods Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

WE WILL WORK WITH OTHERS INCLUDING INDUSTRY, NGOS AND TRADE UNIONS TO MAINSTREAM HUMAN AND LABOUR RIGHTS INTO OUR BUSINESS.

BETTER LIVELIHOODS By 2020 we w5ll engage w5th at least 500,000 smallholder farmers and 75,000 small-scale d5str5butors 5n our supply networkK We have 5ncreased the number of tea farmers tra5ned 5n susta5nable pract5ces to around 450,000K The next step 5s to develop a methodology to assess 5mprovement 5n smallholder l5vel5hoodsK We have consol5dated our small-scale d5str5butors programme, reach5ng 48,000 entrepreneursK

OUR PERSPE4TIVE Our bus)ness contr)butes to the econom)c agr)cultural mater)als grown by smallholders; purchas)ng cocoa cert)f)ed by Ra)nforest well-be)ng of many commun)t)es across our If they prosper and the)r )ncomes )mprove, All)ance and we are part of the Roundtable on value cha)n, whether through employment, they w)ll be able to )nvest and we w)ll have Susta)nable Palm O)l’s (RSPO) Smallholders upsk)ll)ng or l)nkage )nto our extended greater certa)nty of supply and, often, better Task Force where we are collect)vely work)ng supply cha)n; qual)ty raw mater)als for our food products; on how best to ach)eve susta)nable cert)f)cat)on for palm o)l smallholders; In develop)ng and emerg)ng markets we have We have expanded the number of an even greater )mpact on l)vel)hoods; Th)s )s smallholders we reach w)th tra)n)ng and Un)lever )s comm)tted to respect)ng and because our suppl)er and d)str)but)on )ncreased our )nvestment; But we st)ll have promot)ng human r)ghts and good labour networks )nvolve m)ll)ons of small-scale much to do to demonstrate the )mpact of our pract)ces; The adopt)on of the Un)ted Nat)ons farmers, d)str)butors and reta)lers; Most work on the)r l)vel)hoods, and how we are Eu)d)ng Pr)nc)ples on Bus)ness and Human smallholder farmers grow the)r crops on less engag)ng w)th women farmers; Smallholders R)ghts has led us to re-th)nk how we should than 2 hectares of land; They are often held and the)r pract)ces are d)verse wh)ch makes )ntegrate human and labour r)ghts strateg)es back from )mprov)ng the)r )ncomes because the task of measur)ng the benef)ts of our across our bus)ness and value cha)n; To tackle of the)r lack of knowledge of up-to-date )ntervent)ons more d)ff)cult; Nevertheless we th)s, )n early 2013 we created a new role of farm)ng pract)ces; If smallholders have want to co-develop a s)mple, cost-effect)ve Elobal V)ce Pres)dent for Soc)al Impact; access to tra)n)ng, better qual)ty seeds and method to show that our )ntervent)ons do We recogn)se that we have more work to fert)l)ser they can s)gn)f)cantly )ncrease the)r )mprove smallholders’ l)vel)hoods; do )n th)s area; y)elds; Th)s benef)ts Un)lever; As we grow our As the world’s largest purchaser of black tea bus)ness )n develop)ng and emerg)ng we led the way w)th Ra)nforest All)ance to markets, we w)ll be sourc)ng more cert)fy our tea supply; We are now

TAR$ET SUMMARY Ach)evedL 0 On-planL 2 Off-planL 0 % of target ach)evedL 0

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Better L?vel?hoods 47 7 BETTER LIVELIHOODS TECHNOLOGY INCREASES SHAKTI SALES AND EARNINGS In 2012 we )mproved our Shakt) rural sell)ng operat)on by part-fund)ng mob)le phones for a number of our sales women, equ)pp)ng them w)th a s)mple appl)cat)on to dr)ve sales; Th)s low-cost but very effect)ve mob)le technology helps them sell the r)ght products, sav)ng t)me dur)ng sales calls wh)le )ncreas)ng sales and earn)ngs;

SUPPORTIN$ SMALL;S4ALE HELPIN$ SMALLHOLDER DISTRIBUTORS FARMERS

OUR TAR$ETS OUR TAR$ETS Shakt), our door-to-door sell)ng operat)on • Our goal )s to engage w)th at least )n Ind)a, prov)des work for large numbers of 500,000 smallholder farmers )n our people )n poor rural commun)t)es; supply network; We w)ll help them • We w)ll )ncrease the number of Shakt) )mprove the)r agr)cultural pract)ces entrepreneurs that we recru)t, tra)n and and thus enable them to become employ from 45,000 )n 2010 to 75,000 more compet)t)ve; By do)ng so we w)ll )n 2015; )mprove the qual)ty of the)r l)vel)hoods; ASSESSING OUR We operate s)m)lar schemes )n Bangladesh, OUR PERFORMAN4E Sr) Lanka and V)etnam wh)ch we are also We cont)nue to engage w)th partners IMPACT comm)tted to expand)ng; to develop an effect)ve methodology In 2012 we comm)ss)oned an )ndependent to assess )mprovement )n l)vel)hoods OUR PERFORMAN4E assessment to evaluate l)vel)hoods, focus)ng † )n our supply cha)n network; 48,000 entrepreneurs (‘Shakt) ammas’) espec)ally on the )mpact Ra)nforest All)ance were sell)ng products to over 3;3 m)ll)on (RA) cert)f)cat)on has had on smallholders OUR PERSPE4TIVE households )n over 135,000 Ind)an and the)r farm workers )n our tea supply Through our supply partnersh)ps we have v)llages )n 2012; cha)n )n Kenya; helped to tra)n 450,000 tea farmers )n susta)nable pract)ces, around 150,000 more The study conf)rmed that RA-cert)f)ed OUR PERSPE4TIVE than )n 2011; Over 300,000 of them have farmers and the)r workers exper)ence Recru)t)ng and tra)n)ng female entrepreneurs ach)eved Ra)nforest All)ance cert)f)cat)on, greater )mprovements than non-RA- (Shakt) ammas) )s a resource-)ntens)ve the maQor)ty of whom are smallholders )n cert)f)ed farmers )n several areas of soc)al, process; Dur)ng 2012 we worked w)th our Kenya; Elsewhere we have supported cocoa econom)c and env)ronmental well-be)ng; ex)st)ng entrepreneurs to help them grow farmers to ga)n Ra)nforest All)ance However th)s )s not un)form, as )n some and develop the)r bus)nesses; Th)s has helped cert)f)cat)on )n West Afr)ca; areas, non-cert)f)ed farmers reported to consol)date and strengthen our network; s)m)lar pos)t)ve )mpacts; We are focus)ng our effort on )ntervent)ons We are plann)ng to expand our rural wh)ch )mprove agr)cultural pract)ces; Th)s )s a complex area, and we are assess)ng d)str)but)on over 2013-15 to reach more We want to demonstrate that these the results and undertak)ng other stud)es small, remote v)llages; Engag)ng more Shakt) enhance l)vel)hoods; Hav)ng exam)ned w)th NEOs and other partners to understand ammas )s an )mportant part of th)s plan; ex)st)ng assessment methodolog)es, we the best way to ach)eve the r)ght outcomes; Shakt) sales people have proved successful dec)ded to consult NEO and supply cha)n )n )ncreas)ng our presence )n rural areas partners on how to develop a l)vel)hood and bu)ld)ng strong local relat)onsh)ps w)th assessment methodology wh)ch )s s)mple, consumers, wh)ch encourages brand loyalty; qu)ck and affordable; Our goal )s to develop The model we use )mproves the l)ves of our and test th)s methodology )n 2013; sales people and the)r fam)l)es, usually Although we st)ll have much to do to doubl)ng the )ncome of the household; demonstrate the )mpact of our work, our The programme was extended )n 2010 to procurement standards and our ab)l)ty to )nclude ‘Shakt)maans’ who are typ)cally share best pract)ce mean we can have an the husbands or brothers of the Shakt) )mportant )nfluence on the w)der sector; ammas; They sell our products by b)cycle to In our Sunr)se partnersh)p w)th Oxfam EB, surround)ng v)llages, cover)ng a larger area we have moved from a s)ngle programme than Shakt) ammas can do on foot; There are to learn)ng by engag)ng w)th a number of over 30,000 Shakt)maans across Ind)a and we smallholder farmer programmes run by have plans to enlarge the programme )n 2013; our suppl)ers; The a)m )s to develop clear These 30,000 Shakt)maans complement our bluepr)nts for )nclus)ve bus)ness models, 48,000 Shakt) ammas; wh)ch del)ver both commerc)al success and help )mprove soc)al, env)ronmental and econom)c cond)t)ons;

† To be )ndependently assured by PwF )n 2013, see page 52;

48 Better L?vel?hoods Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN $OVERNAN4E >

BOOSTING WOMEN’S INCOMES The )mpact of econom)cally empower)ng women has a magn)f)er effect on l)ft)ng fam)l)es out of poverty; For example, )n Ind)a, as a result of a partnersh)p between the Maharashtra government and H)ndustan Un)lever, a woman entrepreneur was able to )nvest )n a tomato process)ng plant, contract)ng suppl)es from 600 smallholder farmers; We tra)ned the farmers )n susta)nable agr)cultural pract)ces wh)ch contr)buted to h)gh-qual)ty tomatoes for our K)ssan Ketchup brand; In our Shakt) rural sales operat)on, earn)ngs usually double household )ncomes; For many, these new earn)ngs mean they can real)se the)r amb)t)on to prov)de a good educat)on for the)r ch)ldren;

BETTER LIVELIHOODS We are rev)ew)ng our V)etnamese supply cha)n )n l)ght of the recommendat)ons; FUTURE CHALLENGES The report also has )mpl)cat)ons for our SUSTAINABLE, PROFITABLE $ROWTH bus)ness globally and we are study)ng how For smallholder farmers, our challenge DEPENDS ON OUR PEOPLE we can promote susta)nable l)vel)hoods for )s to develop an effect)ve yet affordable We expect all our employees to observe all our workers and those )n our value methodology for )mpact assessment; h)gh standards of behav)our )n the)r everyday cha)ns and w)ll rev)ew our use of temporary In some p)lot stud)es, evaluat)on costs work, reflect)ng our values of )ntegr)ty, workers; We w)ll look at our suppl)ers’ more than the )ntervent)on )t )s assess)ng; respect, respons)b)l)ty and demonstrat)ng understand)ng of our Suppl)er Fode and Even then the ev)dence can be uncerta)n a p)oneer)ng sp)r)t; Susta)nable, prof)table ensure that our own operat)ons meet the due to lack of basel)ne data; We w)ll growth can only be ach)eved )f we have the same standards as we expect of our cont)nue to work w)th partners such r)ght people work)ng for an organ)sat)on suppl)ers; We w)ll also develop key as Oxfam, Erameen and the B)ll and that )s f)t to w)n, underp)nned by a culture performance )nd)cators on labour and Mel)nda Eates Foundat)on to ref)ne our )n wh)ch performance )s always al)gned to human r)ghts; understand)ng of what )s pract)cal; our values; Recogn)s)ng that progress can best be made We are work)ng to )ntegrate respect for HUMAN AND LABOUR RI$HTS by work)ng together, we w)ll work w)th others human and labour r)ghts throughout our Our Fode of Bus)ness Pr)nc)ples and )nclud)ng )ndustry, NEOs, trade un)ons and value cha)n, )nclud)ng )ssues around land Suppl)er Fode set out our comm)tment to bus)ness partners to ma)nstream the r)ghts, women and commun)ty d)alogue; human and labour r)ghts and spec)f)cally )ntegrat)on of human and labour r)ghts )nto to treat our employees and bus)ness our bus)ness; partners w)th d)gn)ty, )ntegr)ty and fa)rness; DIVERSITY The Board of Un)lever )s respons)ble We celebrate the d)vers)ty of people, bel)eve for ensur)ng adherence to these )n )nclus)on and respect people for who they comm)tments and our sen)or management are and what they br)ng; Women make up has respons)b)l)ty for oversee)ng the)r more than 75% of our consumer base; )mplementat)on and ensur)ng that any Our workforce must take account of th)s; breaches of our Fodes are )nvest)gated; We expect and encourage employees The proport)on of women )n management to br)ng any breach of our Fodes to pos)t)ons )ncreased from 39% )n 2011 to 41% our attent)on; )n 2012; After a decade of steady )mprovement, ach)ev)ng an )ncrease of more than 1% shows L)ke many other compan)es, we have been progress – but we recogn)se there )s st)ll undertak)ng a comprehens)ve assessment a long way to go; We have three women of how best to operat)onal)se and )mplement Non-Execut)ve D)rectors on the Board (25%) the UN Eu)d)ng Pr)nc)ples on Bus)ness and and propose to appo)nt two more )n 2013; Human R)ghts, )nclud)ng rev)ew)ng our Fode In 2012 we appo)nted a second woman to the Pol)c)es and ensur)ng al)gnment w)th our Un)lever Leadersh)p Execut)ve; Susta)nable L)v)ng Plan; In early 2013 we appo)nted a Elobal V)ce Pres)dent for Soc)al Impact to lead th)s )ntegrat)on; Th)s assessment was also )nformed by a two-year research proQect by Oxfam, Labour R)ghts )n Un)lever’s Supply Fha)n, publ)shed )n early 2013; Oxfam used our V)etnamese operat)ons as )ts ma)n case study and made s)x recommendat)ons for our bus)ness; These are based around support)ng workers’ l)vel)hoods, prov)d)ng human r)ghts tra)n)ng w)th)n the organ)sat)on, )mplement)ng more ways )n wh)ch workers can ra)se areas of concern and work)ng closely w)th suppl)ers and partners to ensure standards are met; See our webs'te for more on our approach to people management, 'nclud'ng d'vers'ty, labour r'ghts, tra'n'ng and developmentC

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 Better L?vel?hoods 49 $OVERNAN4E AND EXTERNAL 4OMMENTARY

$OVERNAN4E UNILEVER SUSTAINABLE JONATHON PORRITT Strong governance structures enable us DEVELOPMENT $ROUP FOUNDER DIRE@TOR to del'ver our Plan, real'se the benef'ts The Eroup’s expert)se covers a broad range OF FORUM FOR for the bus'ness and draw on relevant of env)ronmental, soc)al and econom)c THE FUTURE, UK expert 'nputC )ssues )n developed and develop)ng countr)es; It meets tw)ce a year w)th our Implementat)on and del)very of the Plan sen)or leaders to cr)t)que our strategy and are mon)tored by the Un)lever Leadersh)p share )ns)ghts on susta)nab)l)ty )ssues and Un)lever has been ‘do)ng susta)nab)l)ty’ Execut)ve – the leaders of our categor)es, trends; The)r perspect)ves feed )nto our )n one way or another for a very long t)me reg)ons and funct)ons headed by our FEO; leadersh)p teams and our Board’s – some would argue from the f)rst moment The Un)lever Susta)nable L)v)ng Plan Steer)ng Forporate Respons)b)l)ty Fomm)ttee; back )n the late 19th century when the Team supports the Execut)ve; The Team founder of the company f)rst comm)tted to )ncludes our Fategory Pres)dents and the Jonathon Porr?tt produc)ng affordable soap to help tackle the leaders of key bus)ness funct)ons; Founder D)rector of Forum for the Future, UK hyg)ene cond)t)ons of V)ctor)an Br)ta)n; Mal?n? Mehra The Board’s Forporate Respons)b)l)ty Founder and FEO of the Fentre for Soc)al Markets, But )t’s only )n the last few years that Fomm)ttee compr)ses three )ndependent Ind)a susta)nab)l)ty has worked )ts way through to Non-Execut)ve D)rectors; The)r role )s to Ma Jun the heart of the bus)ness – and )n Un)lever, oversee Un)lever’s conduct as a respons)ble Founder D)rector of the Inst)tute of Publ)c and that means the brands; Env)ronmental Affa)rs (IPEA), Fh)na bus)ness, )nclud)ng mon)tor)ng the progress Hel?o Mattar Wh)lst there have always been a handful of – and potent)al r)sk – of the Plan and Pres)dent of the Akatu Inst)tute for Fonsc)ous brands that had a great susta)nab)l)ty story ensur)ng th)s )s fed back to the Board; Fonsumpt)on, Braz)l to tell (Dove, L)pton, L)febuoy and so on), Further )ndependent op)n)on on our strategy all the maQor brands are now be)ng asked to comes from our external adv)sers - the ‘own’ the)r share of the targets outl)ned )n Un)lever Susta)nable Development Eroup the Un)lever Susta)nable L)v)ng Plan, and to and spec)al)st groups such as our Susta)nable share that w)th consumers, creat)vely and Sourc)ng Adv)sory Board; We )nv)ted some compell)ngly, )n order to ‘make susta)nable members of these groups to comment on l)v)ng commonplace’; progress )n the second year of our Plan; That’s where the real energy needs to come from now, reflected d)fferently )n all the See our webs'te for more d)fferent countr)es where Un)lever operates; By any reckon)ng, th)s )s one of the most amb)t)ous ‘change management’ programmes go)ng on )n any b)g company today; As th)s Report shows, progress )s good, and some )nd)v)dual proQects are hugely )nsp)r)ng; But there )s st)ll a long way to go before the USLP )s l)ved and breathed by every s)ngle part of the bus)ness; For )nstance, )t’s only )n the last couple of years that F)nance has ser)ously addressed the challenge of al)gn)ng all those processes focused on ‘the numbers’ of the USLP; ‘Doubl)ng the s)ze of the company’ and ‘halv)ng the footpr)nt’ have to become one and the same amb)t)on – not separate dr)vers; ‘Ma)nstream)ng susta)nab)l)ty’ sounds l)ke such an easy th)ng to do; But )t really )sn’tf

50 $overnance and External 4ommentary Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN > $OVERNAN4E

MALINI MEHRA SUSTAINABLE SOUR4IN$ ADVISORY BOARD FOUNDER AND @EO OF THE @ENTRE FOR The Board compr)ses experts from sourc)ng of raw mater)als and engag)ng SO@IAL MARKETS, d)verse backgrounds such as NEOs, research smallholders – and the var)ous areas that INDIA )nst)tutes, compan)es and academ)a; Its )mpact susta)nab)l)ty )n our value cha)n, 1 members adv)se our procurement funct)on such as b)od)vers)ty, the use of chem)cals, on key aspects of our Plan – the susta)nable labour cond)t)ons and poverty allev)at)on; Th)s year’s Progress Report cont)nues the ‘warts and all’ trad)t)on Un)lever adopted Janet Barber Ken $?ller 4am?lla Toulm?n Independent,7 UK Un)vers)ty of Wagen)ngen, Internat)onal Inst)tute for w)th )ts f)rst report; Dav?d Br?ght Netherlands Env)ronment and Development, UK In a world of fakery and green-wash, Oxfam EB, UK Alan Kn?ght Anne Wall?n Un)lever stands tall for be)ng d)fferent; Tom Burke Independent, UK Dow Fhem)cal, Sw)tzerland Th)s )s not a report that shouts ‘we got )t Independent, UK 4hr?stophe L?ebon Tens?e Whelan Intertek, Hong Kong Ra)nforest All)ance, US all r)ght’ but dares to say, when )t needs to, 4ol?n 4hartres Independent, Sr) Lanka R?chard Perk?ns ‘we’re not on target – yet’ and ‘we f)nd th)s WWF-UK, UK very d)ff)cult’; Th)s modesty )s ent)rely appropr)ate for the t)mes; Today’s readers don’t want tough DAVID BRI$HT RI4HARD PERKINS challenges h)dden from v)ew; They want to OXFAM gB, UK WWFhUK, UK know what they are and how the company )ntends to address them; For example, how to del)ver on the soc)al d)mens)ons of susta)nab)l)ty – someth)ng that requ)res more complex soc)o-cultural )ntervent)ons; Or how to reduce grow)ng )nequal)t)es and I would note two areas of progress around WWF strongly advocates that compan)es wealth gaps – wh)ch w)ll as profoundly the USLP; The f)rst )s )ts target to del)ver make the)r sourc)ng more susta)nable by affect the context Un)lever works )n globally pos)t)ve soc)al )mpact by engag)ng 500,000 buy)ng to )ndependent standards (th)rd- as much as resource secur)ty; smallholders to )mprove the)r l)vel)hoods; party ver)f)ed, w)th mult)-stakeholder governance and ISEAL compl)ant, eg Forest Un)lever has made huge str)des )n )ts To del)ver on th)s target Un)lever has Stewardsh)p Founc)l); WWF does not accept efforts to support vulnerable groups )n )ts both begun to )dent)fy )ts own act)ons self-ver)f)cat)on as equ)valent to such supply cha)n – from smallholder farmers and al)gn act)ons w)th mult)ple suppl)ers; )ndependent standards; to rural women entrepreneurs; It now Th)s requ)res clar)ty on wh)ch men and needs to bu)ld on that base to more act)vely women smallholders are targeted and on There are a huge number of products for address the grow)ng soc)o-econom)c how r)sk and benef)ts can be more fa)rly wh)ch there )s no appl)cable )ndependent d)v)des that w)ll bedev)l del)very of the Plan; shared through supply cha)ns to )mprove standard; In these cases, Un)lever’s 100% The good news Un)lever knows th)s )s a smallholder l)vel)hoods; E)ven the extended susta)nable sourc)ng strategy has to problem area and has appo)nted a Elobal nature of global supply cha)ns, the work to cons)der other ways of mak)ng product)on V)ce Pres)dent for Soc)al Impact to )dent)fy smallholders and the ongo)ng effort more susta)nable; Self-ver)f)cat)on )s one address )t; to mon)tor th)s change at farm level should approach that WWF supports Un)lever In a post-MDE world, th)s )s one area where not be under-est)mated; us)ng )n these cases; Un)lever’s stra)ght-talk)ng leadersh)p w)ll Secondly, Un)lever works hard to br)ng Self-ver)f)cat)on should not be used )n cases be needed more than ever; together other compan)es, academ)a and where a relevant )ndependent standard c)v)l soc)ety to try to both lead and learn on ex)sts; I have suggested )n my adv)ce to del)ver)ng susta)nab)l)ty as a sector, for Un)lever that self-ver)f)cat)on m)ght be example )n putt)ng land grabs and b)ofuels buttressed by stat)st)cal sampl)ng of those on the agenda of the B20 Task Force on subm)tt)ng self-ver)f)cat)on to add conf)dence; Food Secur)ty )n 2012; It )s great to see Un)lever employ)ng self-ver)f)cat)on to make progress on susta)nab)l)ty w)th suppl)ers where )ndependent standards do not ex)st;

Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 $overnance and External 4ommentary 51 VERIFI4ATION AND METRI4S

MATERIALITY ASSURAN4E 2011 ASSURAN4E TO 2020 We address the mater)al susta)nab)l)ty External assurance of susta)nab)l)ty For the future assurance of the USLP, )ssues for our company through the Un)lever performance )nd)cators )s )mportant to start)ng w)th the per)od 2012, we have Susta)nable L)v)ng Plan and )n our approach us and the env)ronmental report)ng of developed a phased approach to 2020 that to runn)ng a respons)ble bus)ness; our manufactur)ng operat)ons has been w)ll enable us to obta)n assurance over the )ndependently assured s)nce 1996; seven comm)tments wh)ch are central to We def)ne mater)al)ty asL (1) the degree to our Plan; wh)ch an )ssue )s al)gned w)th our v)s)on In 2012 we appo)nted Pr)cewaterhouse- and purpose, brand portfol)o and geographya Foopers LLP (PwF) to prov)de )ndependent In the trans)t)on to assur)ng the seven (2) the potent)al )mpact on our own assurance of the Un)lever Susta)nable comm)tments, underly)ng metr)cs operat)ons, or on our sourc)ng and L)v)ng Plan; support)ng each comm)tment w)ll be consumersa (3) the extent of Un)lever’s selected on the bas)s of cr)t)cal)ty, PwF’s scope of work was to prov)de l)m)ted )nfluence on the )ssuea (4) the )mportance follow)ng a deta)led )nternal assessment; assurance of a number of performance of an )ssue to our key stakeholders; Our def)n)t)on of cr)t)cal)ty )ncludes the measures selected on the bas)s of the)r follow)ng factorsL Our Plan w)ll evolve as we ref)ne our mater)al)ty to the Plan; understand)ng and )dent)fy further mater)al • mater)al)ty – the )mportance of the The work )ncluded )nterv)ews w)th the )ssues; For example, we are study)ng how metr)c’s contr)but)on to the comm)tment Un)lever Susta)nable L)v)ng Plan Steer)ng we could take a more hol)st)c approach to Team and w)th the managers respons)ble • matur)ty – the metr)c’s stage of )mprov)ng hyg)ene by address)ng san)tat)on for the data underp)nn)ng the e)ght development wh)le del)ver)ng susta)nable growth for our measures selected for assurance; These bus)ness (see page 13); • prox)m)ty to target complet)on; measures coveredL L)febuoya Pure)ta salta We run a programme of stakeholder concentrated/compacted laundry productsa Although our env)ronmental )nd)cators engagement to help us understand external )ce cream freezer cab)netsa One R)nse for manufactur)ng and our occupat)onal v)ews on the )ssues relevant to our bus)ness, fabr)c cond)t)onersa palm o)la and Shakt) health and safety )nd)cators do not d)rectly and to )dent)fy people and partners we can entrepreneurs; contr)bute to the ach)evement of our seven learn from; Dur)ng 2012, we ran events to comm)tments, we cons)der them cruc)al PwF’s conclus)on, together w)th Un)lever’s gather feedback on the Plan )n 25 countr)es; for our bus)ness and they w)ll always be Bas)s of Preparat)on for the report)ng We also launched the Susta)nable L)v)ng assured; per)od 1 January - 31 December 2011, )s Lab, a 24-hour onl)ne d)alogue between publ)shed on our webs)te, alongs)de l)m)ted In add)t)on, we recogn)se that the need may Un)lever managers and external experts assurance carr)ed out by Delo)tte on e)ght somet)mes ar)se for external assurance wh)ch attracted part)c)pants from 77 env)ronmental and two occupat)onal safety of spec)f)c metr)cs, such as those w)th a countr)es and generated valuable )ns)ghts; performance )nd)cators for the per)od h)gher reputat)onal r)sk; 1 January - 31 December 2011; See our webs*te for more Unl)ke f)nanc)al account)ng standards or PwF’s conclus)ons have been shared carbon report)ng, there are currently no w)th the Un)lever Leadersh)p Execut)ve, )ndustry norms or globally recogn)sed the Un)lever Susta)nable L)v)ng Plan pract)ces for evaluat)ng many of the targets Steer)ng Team and those respons)ble for )n the Un)lever Susta)nable L)v)ng Plan; It )s the )nd)cators; We are act)ng upon PwF’s groundbreak)ng work that w)ll evolve over recommendat)ons and the lessons learned the com)ng years; are help)ng to )nform our future work; The nd)ngs from the rst year of assurance of the Plan’s metr)cs have prov)ded valuable )ns)ghts, for example on )dent)fy)ng appropr)ate r)sk assessment processes for data preparat)on and report)ng, and )mprov)ng the documentat)on and repl)cab)l)ty of calculat)ons; The nd)ngs also prompted us to rev)ew and strengthen our governance;

See our webs*te for more

52 Ver?f?cat?on and Metr?cs Un?lever Susta)nable L)v)ng PlanL Progress Report 2012 STRATE$Y > PRO$RESS ON THE PLAN > $OVERNAN4E

OUR METRI4S Our Plan has three b)g goals to )mprove OUR METRI4S health and well-be)ng, reduce env)ronmental )mpact and enhance l)vel)hoods; Support)ng these goals are seven comm)tments HEALTH AND HY$IENE (PA$E 12) WASTE (PA$E 34) underp)nned by targets spann)ng our soc)al, The number of people reached on a Waste per consumer useL packag)ng env)ronmental and econom)c performance cumulat)ve bas)s by an )ntervent)on and product leftovers that have not been across the value cha)n; wh)ch, based on past stud)es, can be reused, recycled or recovered (grams);* expected to result )n susta)ned, pos)t)ve In our 2011 Progress Report we presented We def)ne waste as the amount of product behav)our change; our people and workplace targets as a left )n the pack, and the amount of standalone set of targets; In 2012 we packag)ng that ends up e)ther )n landf)ll NUTRITION (PA$E 18) )ncorporated these targets )nto the ma)n or as l)tter, )e the amount of packag)ng The percentage of products wh)ch body of the plan; that )s not recycled, reused or recovered meet the h)ghest nutr)t)onal standards, for energy recapture; Our metr)c requ)res L)sted )n the box are the key metr)cs based on globally recogn)sed d)etary the use of publ)shed nat)onal )nd)ces we use to measure progress on our gu)del)nes for all four pr)or)ty nutr)entsL for recycl)ng and recovery, or our own comm)tments; salt, saturated and trans fat and sugar; est)mates where these are not ava)lable; From 2012, these are measured by volume OUR ENVIRONMENTAL FOOTPRINT rather than by product; The metr)c excludes the waste generated PER 4ONSUMER USE by our manufactur)ng operat)ons wh)ch To measure our b)g goal to halve the $REENHOUSE $ASES (PA$E 24) we measure as part of our eco-eff)c)ency env)ronmental footpr)nt of the mak)ng and Ereenhouse gases per consumer useL programme (see Reduce waste from our use of our products ‘per consumer use’* for FO 2 equ)valents across the product manufactur)ng, page 38); EHE, water and waste )s a complex process; l)fecycle (grams);* It requ)res a deta)led analys)s of the water, SUSTAINABLE SOUR4IN$ (PA$E 40) Our metr)c measures the greenhouse waste and greenhouse gas )mpacts of Raw or packag)ng mater)al sourced gas em)ss)ons assoc)ated w)th the thousands of products spread across from ver)f)able susta)nable renewable l)fecycle of a product from raw mater)als, 14 countr)es; The calculat)on accounts for sources or made from recycled mater)als to manufactur)ng to consumer use and 70% of our volumes; (% by we)ght); d)sposal; For each product, we analyse sourc)ng BETTER LIVELIHOODS (PA$E 46) and )ngred)ent )nformat)on, manufactur)ng WATER (PA$E 30) We recogn)se that )t )s d)ff)cult to prov)de )mpacts and data on consumer hab)ts Water per consumer use )n water-scarce ev)dence of )mprovements )n l)vel)hoods; (wh)ch often vary by country); countr)esL water added to the product We are develop)ng an appropr)ate plus the water used by consumers )n In 2012 we )nvested )n an automated system methodology to do th)s; to )mprove the speed and accuracy of our water-scarce countr)es (l)tres);* + footpr)nt calculat)ons, wh)ch we measure on Our metr)c excludes water used )n * The metr)cs for our comm)tments for greenhouse gases a roll)ng-year bas)s from 1 July to 30 June; agr)culture, and water used )n our (EHE), water and waste are expressed aga)nst a basel)ne Furrently, th)s system only allows us to of 2008 and on a ‘per consumer use’ bas)s; Th)s means manufactur)ng operat)ons wh)ch we a s)ngle use, port)on or serv)ng of a product, eg the EHE compare our footpr)nt to 2010 rather than measure as part of our eco-eff)c)ency )mpact of dr)nk)ng a s)ngle cup of teaa the water needed for our or)g)nal 2008 basel)ne; one ha)r wash w)th shampooa or the waste assoc)ated w)th programme (see Reduce water use )n one serv)ng of soup; our manufactur)ng process, page 33); + Water-scarce countr)esL Fh)na, Ind)a, Indones)a, Mex)co, South Afr)ca, Turkey and USA, represent)ng around half the world’s populat)on;

PRODU4ED BY Un)lever Susta)nable Bus)ness Team FEATURE PHOTO$RAPHY K)eran Doherty, If you have f)n)shed w)th th)s report and no ADVI4E ON REPORTIN$ Forporate F)t)zensh)p Igor Emmer)ch, Ph)l)p Eatward, Eetty Images, longer w)sh to reta)n )t, please pass )t on to DESI$N Red Letter Des)gn Fhr)s Moyse, Mart)n Wanyo)ke; other )nterested readers or d)spose of )t )n PRINTIN$ Fharterhouse (ISO 9000 & 14001) your recycled paper waste; Thank you; PAPER Amadeus 100% Recycled S)lk – 100% recycled content, 100% de-)nked post-consumer waste

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