Human Rights report
Creating a fairer and more socially inclusive world
2020
UNILEVER HUMAN RIGHTS REPORT 2020 1
Welcome to our Human Rights report 2020
We made a commitment in 2014 to disclose our efforts and challenges in implementing the UN Guiding Principles on Business and Human Rights. This is a report on our progress.
In 2021 we announced a wide-ranging We believe that human rights are at This report reflects our belief that set of commitments and actions to help the heart of sustainable business, and transparency and accountability must build a more equitable and inclusive our human rights work does not exist in underpin the advancement of human society. All these ambitions – including isolation within Unilever. It is increasingly rights. We hope it will help foster the raising living standards, creating integrated throughout the business, with engagement and discussion with opportunities through inclusivity, and our markets, brands and people in all stakeholders that have been crucial to preparing people for the future of work functions continually improving the ways our progress so far – and contribute to – are founded on the principle of respect they advance respect for human rights. a global movement in which businesses for human rights. This report is therefore not exhaustive: advance and promote human rights for it can only give a snapshot of the work people everywhere. In this report we give an outline of the that is done by people and teams across work we have done since 2014 to build Unilever, every day, all over the world. those foundations by embedding the We know that our journey is not over. respect and promotion of human rights Human rights issues still occur in our into every function, role and corner of value chain, and there is much more we our organisation – and of our approach need to do to address them. Respect to continuing our momentum in the for human rights will continue to drive future. We describe the progress we’ve Unilever’s approach in the years to come. made in addressing our salient human rights issues, and discuss the challenges we continue to face as well as the lessons we have learnt.
UNILEVER HUMAN RIGHTS REPORT 2020 3 Contents
Welcome from Alan Jope, CEO 5
Introduction from Marcela Manubens, Global VP, Integrated Social Sustainability 6
Our strategy 8
Our salient human rights issues 20
Spotlight on issues 46
Brands with purpose 60
Responsible and socially sustainable business 66
Appendices I–VIII 82–96
4 UNILEVER HUMAN RIGHTS REPORT 2020 Our approach Welcome from Alan Jope, CEO
Putting our purpose into action. Building a fairer world.
At the heart of our business strategy is can take to address the social inequality the vision of building a fairer, more that, alongside climate change, is the “The era of radical socially inclusive world. We’re greatest collective challenge the world transparency is coming, determined to turn that vision into faces today. and I welcome it.” action – and that means everything we With our commitment to purpose do through our business and our brands and brands that reach billions Alan Jope must be underpinned by an absolute every day, Unilever can, and must, Unilever CEO commitment to respect human rights. make a positive difference. If we ever needed reminding, 2020 As this report describes, we’ve made showed us again and again why good progress already in embedding equity and human rights matter so human rights in our business – and much. Around the world, social divides while we’re far from finished, we have widened, inequalities deepened – and a firm foundation to build on through the COVID-19 pandemic threatened our wider ambitions of raising living livelihoods and the rights of workers. standards, tackling harmful social It’s clearer than ever that decisive and norms, pioneering new employment collective action is needed to build a models, and being a beacon of equity, society that helps to improve livelihoods, inclusion and diversity. embraces diversity, nurtures talent, This work will continue – both within our ‘footprint’ is sustainable, socially as well and offers opportunities for everyone. business and value chain, and through as environmentally. The era of radical So, in January 2021, we announced a our network of stakeholders among transparency is coming, and I welcome set of commitments and actions that suppliers, governments, civil society, it – because it will add even more will take our business to the next level unions and others. momentum to our brands in their drive when it comes to tackling inequality and to be a force for good. And brands with unfairness. We’ve made a range of key And it is a journey we will take with purpose drive growth. commitments – including ensuring that consumers, too. They want to know everyone who directly provides goods that we source, make, transport and We invite all our stakeholders to read and services to Unilever earns at least a advertise our products responsibly. this report, share their feedback, and living wage or income by 2030, which we Our brands want to lead the way in continue to help us respect and promote believe is one of the strongest actions we knowing, and showing, that their human rights in everything we do.
UNILEVER HUMAN RIGHTS REPORT 2020 5 Our approach Introduction from Marcela Manubens
The world changed in 2020 – both in by wider global trends. We know One of those drivers is poverty wages, terms of the realities of life for millions that the economic disruption caused which deny people a decent standard of of people, and in the way we as citizens by COVID-19 could impact working living and trap them in cycles that leave view our lives. conditions in supply chains, for example, them vulnerable to many human rights as rising unemployment and insecurity issues, so we’re committed to ensuring As we build back better from COVID-19, put pressure on wages, working hours, that everyone who directly provides we must make sure the world changes safety and other fundamental workers’ goods and services to the company again in 2021– for the better. We need rights. We’re also seeing transformative earns at least a living wage or income to stand up for the opportunity to build changes to the world of work, brought by 2030. a fairer, more socially inclusive world about by automation, digitisation and – and stand against any trends that Inequality is also deepened when new business models. At the same time, deepen divides or undermine respect marginalised groups are held back movements like Black Lives Matter have for human rights. And we must hold on from fulfilling their potential – so we’ve highlighted once again that the journey to what the pandemic has reminded embarked on a range of actions to to equity, inclusion, diversity and social us – how valuable life and health are, create opportunities through inclusion. justice is far from over. how much we treasure our families And we’ve set out a clear path to and those around us, and how much generate and sustain employability, by we can achieve when we work together Towards fairness, equity preparing our employees and people with purpose. and gender equality beyond our organisation for the societal and technological changes that are Building that better world will take taking place. courage, commitment, and co-operation Business has to take action to tackle the – but I am convinced it is both possible issues of unfairness and exploitation, In this work, we will be able to build on and essential. and Unilever is setting a course for our progress over recent years. Our the future that is underpinned by an ten-year Unilever Sustainable Living unfaltering commitment to respecting The journey is far from over Plan (USLP), which came to an end in human rights. 2020, drove positive social impacts within and beyond our business, and While there is no doubt progress has Our business strategy includes key goals from 2014 included transformational been made on human rights, both in announced in 2021 that are designed goals in the areas of Opportunities society and in our business, the risks to to tackle social inequality and the for Women, Fairness in the Workplace human rights have not gone away. In drivers that make it so entrenched in and Inclusive Business. These goals some areas, they are being highlighted our societies. enabled pioneering work in areas
6 UNILEVER HUMAN RIGHTS REPORT 2020 such as combating violence against This report aims to show the steps we women, tackling harmful stereotypes, have taken on our journey so far. We and ensuring a living wage for all share what we have learnt, and identify our employees by 2020 – work that some of the challenges we have often anticipated trends we see overcome – while acknowledging that magnified today, as the calls for gender there are areas where we still have empowerment, equality, and equity much more to do and learn. I am are increasingly, and often belatedly, confident that, as part of a community being heard in our societies. And this underpinned by respect for human work – which continues at the heart of rights, we can continue to progress and our strategy – could only make progress build a better future. And on a personal because it is built on the foundation note, I would like to thank everyone in of advancing human rights across our that community of colleagues and operations and extended supply chain. critical friends; it has been a privilege to be part of such an extraordinary journey over the last seven years. Wiring our business to drive “Harnessing the scale respect for human rights and reach of Unilever,
As this report describes, building that Marcela Manubens we are absolutely foundation has meant wiring respect for Global Vice President for Integrated committed to advancing human rights into every aspect of the Social Sustainability, Unilever human rights around the business. That was no small challenge. We employ 155,000 people in our world. Regardless of operations, and many millions play a what progress we may role in our value chain. We have sales in have already made, we more than 190 countries, each of which now all need to redouble is socially, culturally and legally distinct. our efforts, and continue To make progress we have had to engage and establish a community of to actively drive an action. That applies within Unilever, environment where it’s ensuring that human rights were not safe to speak up, siloed in one function, but were the collectively and responsibility of everyone, in their everyday jobs. It also applies beyond individually.” the business, where our partnerships with civil society and UN agencies and our engagement with peer companies Marc Engel and other stakeholders have been vital, Chief Supply Chain both in terms of our ability to make a Officer, Unilever difference on the ground, and to our understanding of the issues.
UNILEVER HUMAN RIGHTS REPORT 2020 7 Our strategy
PHASE I PHASE II PHASE III Setting our social Building capacity Moving from sustainability and public ‘do no harm’ ambition reporting to ‘do good’
We set our social sustainability We created awareness and drove With the foundational human ambition and created a new engagement through training rights work well established, human rights pillar for our USLP and the effective implementation our focus has broadened to – Fairness in the Workplace. We of our expanded Human Rights promoting and driving best strengthened Unilever’s human policy framework and related practices in partnership with rights policy framework across programmes across functions and others. By the end of 2020, we functions and geographies to geographies. We delivered on our had made important progress in include new policies aimed at commitments, including public moving from ‘do no harm’ to ‘do guiding our relationships with reporting under the UN Guiding good’. This will be the theme and Unilever employees, suppliers, Principles Reporting Framework. strategy for our new Compass partners and stakeholders. ambition, described on page 11.
STATUS: ACHIEVED STATUS: ACHIEVED STATUS: ADVANCED
8 UNILEVER HUMAN RIGHTS REPORT 2020 We describe our work on governance in PHASE IV the governance section of this report.
Driving sustainable Committed to the UN Guiding business and Principles Reporting Framework demonstrating Our first Human Rights Report 2015, our progress update report in 2017 and this its value current report have all followed the UN Guiding Principles Reporting Framework.
The next phase of our approach is ENHANCING Human Rights founded on the fact that ‘people’ LIVELIHOODS, HUMAN progress report and ‘planet’ are inextricably ADVANCING RIGHTS PROGRESS linked with sustainable business HUMAN REPORT 2017 success - and that economic, RIGHTS 2020
HUMAN RIGHTS REPORT 2015 social and environmental UNILEVER HUMAN RIGHTS PROGRESS REPORT 2017 1 sustainability, anchored on human rights, are increasingly recognised by financial markets as the only long-term business strategy. The respect and promotion of human rights must be mainstreamed and embedded in every new business model. We will continue to demonstrate the value and positive impact of our approach to all stakeholders, including investors.
STATUS: IN PROGRESS
UNILEVER HUMAN RIGHTS REPORT 2020 9 Our strategy Our five focus areas
We have consistently adopted five areas of focus for our work in embedding human rights across our business.
Our five focus areas have become Shared Responsibility (previously These new business models carry mainstream ways of working for described as “Collective responsibility with them the dangers of fewer social responsible business. models”) proposes a coordinated protections for workers. If we want to response by businesses, governments, have a less polarised world, we need Transparency is critical in allowing us international organisations, to understand these issues to advance to discuss the root causes of human philanthropic groups, unions and other new and better business models. We rights concerns and abuses, so we can interested parties to devise collective need to ask ourselves what it means to develop effective solutions. Benchmarks solutions and share the financial costs put human rights front and centre of and indices increase in importance of addressing the most entrenched new business models and ensure that alongside product information apps and human rights problems in complex every job is a ‘good’ job, and meets labels that disclose the social impacts supply chains. Key to this is making social protection requirements such as of products which trace supply chains. these problems visible and addressing those of the ILO core conventions. The Technology will continue to drive and not just the problem itself but also the role of financial markets and investors support increased transparency. underlying cause. By taking an industry- will be critical as we build back better Stakeholder consultation has become wide approach and acting together, as capitalism evolves. Meanwhile we integral to our way of working and our our progress is likely to be quicker and continue to build capability within our multi-stakeholder value creation model more sustainable. operations and throughout our value – as shown by our extensive internal chain, so that people can recognise and Through our partnerships with other and external consultation in advance act on human rights issues. This includes companies, civil society organisations, of the launch of our new Compass improving people’s access to grievance governments, development agencies commitments (see page 11). We’re mechanisms and remedy, which play and multinational initiatives, we committed to a frank and open dialogue a critical role in opening channels for continue to scale up our efforts to with all our stakeholders about progress, dialogue, investigation, problem solving promote universal human rights challenges and solutions, so that we and, when required, providing remedy. principles, create positive social impact can take combined action. We carry and search for solutions that build on More information on transparency and out independent human rights impact local knowledge, lead to better decisions reporting can be found in Appendix VI. assessments where engagement with and create lasting change. stakeholders and rights-holders is an integral element. Stakeholder dialogue As 2020 has shown, the world of business informs our work. is changing fast, with an increased focus on e-commerce and automated factories, greater flexibility and platform or gig employment.
10 UNILEVER HUMAN RIGHTS REPORT 2020 Our strategy Building a more equitable and inclusive society, founded on human rights
At the heart of our business strategy is the ambition to help build a more equitable “There is much to welcome in these new and inclusive society by raising living commitments from standards across our value chain, creating Unilever, not least its opportunities through inclusivity, and robust readiness to give preparing people for the future of work. real substance to the notion of ‘fair value’ This can only be achieved based on a through its supply chains, foundation of respect for human rights. and to do so in a way that gives equal weight to social justice as it Accelerating our ambition Taking action against does to climate justice through our social compass social inequality – across a decade that We know that social inequality and Among a wide range of social ambitions will undoubtedly climate change remain the biggest that show how our journey to embed decide the future challenges of our time – so in early respect for human rights has driven our 2021 we announced commitments strategy, we have committed to: of humankind.” and actions that would take us a step – ensure that everyone who directly further towards the fairer and more provides goods and services to the inclusive world we want to see. These Jonathon Porritt company earns at least a living social ambitions build on our Unilever Founding Director of Forum wage or income, by 2030 Sustainable Living Plan which ran until for the Future, leading 2020 and are informed and driven by – spend €2 billion annually with suppliers sustainability expert and our continuing journey to embed human owned and managed by people from member of the Unilever rights across the company, making under-represented groups, by 2025 Sustainability Advisory Council human rights the foundation of our – pioneer new employment models for business strategy.
UNILEVER HUMAN RIGHTS REPORT 2020 11 our employees, and equipping 10 million evolution of our human rights strategy to our direct employees. As we extend young people with essential skills to from ‘doing no harm’ to ‘doing good’. our ambition, we will focus on the most prepare them for job opportunities, vulnerable workers in manufacturing and A living wage is sufficient to afford a by 2030 agriculture, working with stakeholders decent standard of living for a family’s to create systemic solutions to raising basic needs including food, water, living standards through purchasing Focus on a living wage housing, education, healthcare, practices, collaboration and advocacy transportation, clothing and other wherever we operate. Our approach to One of our key commitments is that essential needs including provision for extending our ambition on living wages everyone who directly provides goods unexpected events. beyond our direct employees builds on and services to Unilever will earn a living Enabling people to earn a living our requirement, enshrined in our RSP, wage or a living income by 2030. wage will support and help stimulate that our suppliers must pay their workers We believe this is a vital contribution to economic recovery in the communities the legal minimum wage or prevailing the global effort to eradicate poverty where we operate. This in turn will fuel industry standard, whichever is higher. wages from value chains, and an consumer demand and kickstart the We describe our work in this area in enabler for advancing respect for human engine of responsible and sustainable Fair wages, page 25. rights in many areas. And it is a critical economic growth. step forward for the work we’ve done We have already achieved our since 2014 to advance human rights commitment to providing a living wage throughout our value chain, showing the
“The right to an adequate standard of “Inclusive growth relies on business living is a fundamental human right sharing their profits and therefore – sadly one that many of millions of ensuring broader prosperity built people around the world are unable to through labour. A minimum living wage access. Decent work, enough to is fundamental to escape poverty, adequately maintain yourself and your ensure dignity of work and to facilitate family not only helps people escape the capacity for working families poverty but helps economic and social to participate in sustainable economies. development too. So I commend Unilever’s leadership on this Unilever for its foresighted commitment commitment along with their as it continues the evolution of its unwavering support for mandated social ambition, founded on the human rights due diligence is a respect for human rights.” social platform that all business must implement.” Professor John Ruggie Harvard University, Former U.N. Secretary General’s Sharan Burrow Special Representative for Business and Human Rights, ITUC General Secretary member of the Unilever Sustainability Advisory Council
12 UNILEVER HUMAN RIGHTS REPORT 2020 Our strategy Looking to the future
We want to see economies that provide people with decent jobs and sustainable livelihoods through a fair distribution of income and wealth. These economies help build social cohesion and create opportunities for inclusive growth and development that is good for both society and business. We are taking a holistic approach to tackling social challenges, and we will deliver this approach across our entire business.
As we look ahead at the future of our business, we can see both challenges and opportunities in the field of human rights work and reporting. In this section we look at some of the trends that we believe will shape the future of our work.
How do we ensure How do we support How do we improve a fairer future for human rights due our measurement workers? diligence? and reporting so we can see, and share, our impact on people’s lives?
UNILEVER HUMAN RIGHTS REPORT 2020 13 The trend How do we ensure Our four principles for a fairer future for The world of work is changing fast. More responsible automation: and more people are hired as contract workers? workers rather than in traditional Our responsibility as an enterprise full-time roles, accelerating the move operating in local communities. towards a gig economy. At the same Business decisions impact those time, increasing automation continues communities and they need to be to change people’s roles and create taken with integrity and respect. shifts in the demand for workers and for certain types of employment. Both Our commitment to support people trends threaten to converge in ways to increase their employability and that weaken people’s access to their entrepreneurship and create new rights, including their right to freedom of opportunities. association. This risk is compounded by Our openness to establishing many other factors, including legislation transparent communication that bans or hinders trade unions and with our employees, unions, the social practices that shape perceptions community and other relevant around union activity. stakeholders.
We have seen these risks to workers’ Our values of integrity, respect, rights increase as economies are responsibility and pioneering. disrupted by COVID-19.
Our action
We recognise the shifts that are governments and academia, as well taking place in the workplace, and as working with trade unions. We have our responsibility to respect the rights Future of Work plans tailored for each of workers in our business and supply country in which we operate, supported chain. We need to ask ourselves how we by our Social Impact Playbook, which put human rights front and centre of new will guide implementation. In addition “Gig economy in business models – particularly as we to skills development, we will pioneer Britain doubles, contribute to building back better after new employment models and provide accounting for COVID-19. our people with flexible employment options, by 2025. 4.7 million workers.” We’ve committed to ensuring that all our employees are reskilled or Any country transformation plan must upskilled to have a future-fit skillset, include a responsible automation plan The Guardian newspaper by 2025. While we may not be able to to manage its social impact responsibly. reporting a study from offer permanent, full-time, fixed jobs It must provide effective and agile the TUC and academics for life, we want to ensure that our solutions for the repositioning of at the University of employees are equipped with the skills employees impacted by transformation Hertfordshire, July 2019. required to protect their livelihoods, and must increase redundant workers’ whether within or outside Unilever. employability while supporting their We’re engaging with other businesses, transition to new employment.
14 UNILEVER HUMAN RIGHTS REPORT 2020 We have developed our guidelines the ground. In September 2020 we for our approach to responsible How do we support signed a Statement relating to the automation, based on four core EU framework on mandatory human principles. We’re also developing digital human rights due rights and environmental due diligence, ways for qualitative and quantitative diligence? supporting legislation that will require feedback from workers on their progress businesses to address their actual and in finding replacement jobs. potential human rights impacts and, where legally permissible, scale up Our work with unions on responsible collaboration between brands, suppliers automation is described on page 31. and other stakeholders to improve the sustainability of supply chains. We The challenges ahead also gave our public support to this in relation to cocoa and as members of We know that we need to improve our AIM-Progress and B4IG, we also support visibility of conditions for workers in our their contribution to this debate. supply chain, especially as the economic The trend impacts of COVID-19 could create scope The challenges ahead for weakening rights in communities Under the UN Guiding Principles on facing high unemployment. We also Business and Human Rights companies There remain significant challenges in know that the trends towards contract have a responsibility to undertake operating in countries where national labour and automation are likely to human rights due diligence. Worldwide, law is either non-existent in certain accelerate, and that our Framework and particularly in Europe, there is a areas, or deviates from internationally for the Future of Work must continually growing movement for mandatory due recognised human rights standards. It is adapt to stay ahead of them. This diligence – that is, legal requirements for also vital that mandatory human rights underlines the importance of remaining companies to show that they are taking due diligence results in processes that open to transparent communication action to address human rights risks in are fully embedded in governance and with our employees, unions, the their value chains. company culture, ultimately leading to community and other rights-holders better outcomes for people. and stakeholders. Our action
We support due diligence frameworks that address the root causes of human rights violations, lead to real shifts in companies’ practices and bring about positive change on
UNILEVER HUMAN RIGHTS REPORT 2020 15 Our action The challenges ahead
How do we improve There is a consistent challenge for We are building on the ways we hear our measurement business in this area: the impact on directly from people on the ground who the individual rights-holder is difficult and reporting so are impacted by our business. Some of to measure and very personal. Robust the ways we do this are described on we can see, and social impact metrics will help better pages 75 and 77. Social dialogue with capture complexities, enabling clearer share, our impact workers’ representatives is also vital, and measurement of effectiveness as we on people’s lives? we describe our engagement with trade continue to work on strengthening on unions in Freedom of association, on the ground verification. This includes pages 30–32. a greater role for technology to bring We align our reporting with the United transparency, as well as continuing Nations Guiding Principles Reporting expansion of community-based Framework, producing a first human monitoring engagement, including The trend rights report in 2015, a progress report in ‘ground-truthing’. 2017 and a series of updates on progress Stakeholders focus on transparency, each year. Following our engagement The new Unilever Compass in the consultation process for auditing quantitative reporting and impact Building on the progress we made and implementation of the UNGPs, our measurement. They, like us, want to see the lessons we learnt throughout the progress is reviewed and validated evidence of progress on the ground in ten years of the USLP, the Compass (not verified) by our sustainable finance the form of improved working conditions is our fully integrated corporate team and independently assured and better lives in our value chain. Social strategy, which includes actions and (not audited). Details of our Basis of impact, however, remains difficult to commitments designed to help build a Preparation can be found here. From measure and report in meaningful ways. fairer, more inclusive world. Giving focus 2021 we will continue with these to the Compass will be 15 multi-year principles as we integrate our human priorities that cover the full spectrum of rights reporting into the business’s core our business and wider ecosystem, with reporting framework through the Annual a new set of industry-leading, company- Report and the new Planet & Society hub wide social and environmental on Unilever’s global website. Our aim is commitments. These commitments will to make our reporting more interactive, tackle the key challenges of our time with regular updates, and to incorporate including human rights, social inclusion more quantitative reporting and impact and fair value distribution. We describe measurement. our social ambitions on page 11.
16 UNILEVER HUMAN RIGHTS REPORT 2020 Our strategy Collaborative action
The Consumer World Economic AIM–Progress Leadership Group Business for
Goods Forum Forum (WEF) RESPONSIBLE for Responsible Inclusive Growth (CGF) HUMAN RIGHTS; EQUITY SOURCING Recruitment (B4IG) AND SOCIAL JUSTICE; (LGRR) INCLUSIVE HUMAN RIGHTS AND FUTURE OF WORK; GROWTH SUSTAINABLE SUPPLY TRANSPARENCY AND RESPONSIBLE CHAINS ANTI-CORRUPTION RECRUITMENT
For more details see Appendix V.
Taking action to achieve Steering Group, providing strategic Supply Chain Initiative (SSCI), focused systems change direction to the organisation. on providing clear guidance to buyers and suppliers in the consumer goods Priority areas include: industry on third-party auditing and The lasting, systemic changes needed – Human rights due diligence certification schemes that cover to make a positive difference to millions sustainability requirements and apply of people can only come about through – Eradication of forced labour and relevant governance and verification. collaborative action at scale. That’s promotion of responsible recruitment why we work with a wide range of – Understanding the impact of climate Business for Inclusive Growth (B4IG) stakeholders. change on human rights We are members of the working In addition to our global partnerships, – Working towards a living wage in groups on Building an inclusive our brands have many local supply chains recovery; Inclusive sourcing and partnerships. Impact measurement. – Developing worker voice solutions Institute for Human Rights and and grievance mechanisms Business Working with partners to – Measuring and reporting outcomes We have worked with the Institute for and impact for people in member achieve social impact Human Rights and Business since 2014, supply chains including as a founding member of Our strategy involves working the Leadership Group for Responsible The Consumer Goods Forum (CGF) with multiple partners to achieve Recruitment, see Appendix V. positive social impact, implement We are members of CGF and participate programmes on the ground, advocate actively in its committees including the AIM-Progress for policy changes and create powerful Human Rights Coalition – Working to campaigns to raise awareness and drive We are members of the Human Rights End Forced Labour and the Sustainable consumer engagement.
UNILEVER HUMAN RIGHTS REPORT 2020 17 Public–private partnerships for – India: Supporting Dharma Life to Spaces. Launched in 2018, this aims change promote ‘Clean and Connected Homes’ to increase the safety of women in and scale awareness and behaviour agricultural value chains, as we describe We see public–private partnerships change among rural low-income on page 34. We were also a founding as a core part of our approach. In households on good health, hygiene, member of the UN Women-convened 2015, for example, Unilever and the water and sanitation habits, and Unstereotype Alliance and are proud UK government’s Department for provide access to relevant products. to be a vice chair today. Launched in International Development (DFID, now 2017, the Alliance aims to eradicate UK Aid*) founded TRANSFORM, an – India : Working with Frontier Markets’ stereotypes and adverse social norms innovation programme which supports network of 300 women entrepreneurs from the advertising industry. We social entrepreneurs to bring private to distribute Pureit water filters in rural describe our work to combat gender- sector creativity and commercial Rajasthan for the first time. based violence in Harassment. approaches to solve persistent global – Bangladesh: Supporting Drinkwell development challenges. By aiming to to scale its micro-franchise model of Oxfam enable millions of people in sub-Saharan community water kiosks to sell clean Africa and South Asia to gain access to We have worked with Oxfam on a range drinking water, aiming to impact 100 products and services that have been of projects and relating to workers million lives globally by 2030. shown to improve health, livelihoods, the and farmers in our supply chain. These environment or well-being, it addresses – Rwanda: Improving the business include a poverty footprint study in a wide range of the UN Sustainable model of Pit Vidura which promotes Indonesia in 2004; a joint project on Development Goals (SDGs). sanitation and health for low-income sustainable agriculture including communities by offering safe and through the Enhancing Livelihoods In 2018 TRANSFORM scaled up and affordable pit latrine emptying services Fund; a ground-breaking report looking quadrupled the value of the programme in dense informal settlements. into labour rights in our supply chain in to £40 million, and by 2020 TRANSFORM Vietnam in 2013 with a follow-up report had supported over 50 projects in Shift in 2016; and extensive work around thirteen countries – including these women’s rights, including making the crucial projects with innovative social Shift, the leading centre of expertise case for businesses to address unpaid entreprises to enhance access to water on the UN Guiding Principles, has acted care work. Oxfam continues to be a key and sanitation in Africa and Asia. as a trusted adviser to Unilever on the partner and help us bring the voices of UN Guiding Principles on Business and – K enya: working with the Malindi Water workers to our discussions. Human Rights and on overall human and Sewage Company (MAWASCO) rights issues for many years. Shift has to showcase innovative models for WEF facilitated multiple workshops and scaling up sanitation services. helped to develop a guide to integrate We sit on the WEF Global Future Councils – Zambia: working with Southern Water human rights into our M&A processes. on Human Rights; Equity and Social and Sanitation Company Limited on Justice; Future of Work; Transparency Most recently, they helped create waste management models. and Anti-corruption. We have worked our Business & Human Rights Training with the WEF to incorporate human – Nigeria: 16 Sunlight Water Centres in 2019. rights considerations into mainstream providing clean water through discussions, including those of other solar-powered boreholes in remote Working with UN Women to increase WEF councils. communities. women’s safety and advance equality
We have worked on a range of initiatives While we have seen significant progress * This project was funded with UK aid from the with UN Women, including A Global UK government, however the views expressed through these collaborations, we Women’s Safety Framework in Rural do not necessarily reflect the UK government’s recognise that they do not provide official policies.
18 UNILEVER HUMAN RIGHTS REPORT 2020 Some of our partners “Unilever is one of the (Click on logo for link) most engaged companies on human rights, living wages and gender equality that I have worked with in my time at Oxfam.” UNICEF Save the Children GAIN
Rachel Wilshaw Workers’ Rights Senior Manager, Oxfam
GAVI IDH UN Women “Poverty eradication and universal human rights lie at the core of the Sustainable Development Goals.
International Center for WEConnect International CARE International Businesses like Unilever Research on Women must leverage their scale and influence to improve society and the environment. If a critical mass joins the
bop inc UNHCR SDG movement and we all work together to drive transformational change, it will create the solution to every issue. There can of partnership and engagement, we an unstoppable force be challenges in working in coalitions are committed to work in collaboration in terms of speed, agreement on with multiple stakeholders, and we will for good.” overall vision and ambition, and the continue to seek innovative approaches implementation of measures on the to achieve shared goals. Rebecca Marmot ground. Competing organisations Chief Sustainability Officer, may also take individual approaches Unilever rather than coming together on issues. Nonetheless, we believe in the impact
UNILEVER HUMAN RIGHTS REPORT 2020 19 Our salient human rights issues
What are salient human In the lead up to our first human rights On the following pages we look back rights issues? report in 2015, we worked with a range at highlights of our recent work to of expert external stakeholders and address our salient human rights issues, internal leaders to identify where, and the challenges we’ve faced and the The UN Guiding Principles (UNGPs) how, our business activities could result opportunities we see for the future. They define them as the human rights that in salient human rights risks. In our 2015 are a snapshot of a far wider range of are at risk of the most severe negative Report we gave an introduction to each activities around the world. For more impacts through a company’s activities issue and how we were responding to information on the progress we have or business relationships. it. In our 2017 Report, we gave progress made on our salient issues, please go to Unilever’s salient issues are: highlights of our work and outcomes, our Salient Issues timeline – Appendix II. and linked them to the SDGs. We have Our Supplier Audit Results 2019 can be – those identified and prioritised in reported annually on our progress on found here. alignment with the UNGP process. our global website. They are not: As part of our new Compass ambition, – an exhaustive list of all issues that we have conducted a review of the exist across our business. We continue global salient issues and conducted to address all human rights issues. regional stakeholder consultations to map out relevance and impact at the regional level. As a result, comprehensive multi-year action plans are in place.
20 UNILEVER HUMAN RIGHTS REPORT 2020 Fair Discrimination wages
Working Forced hours labour Our salient human rights issues Land Freedom of rights association
Health & safety Harassment
UNILEVER HUMAN RIGHTS REPORT 2020 21 Our salient issues Discrimination
RESPONSIBLE SOURCING Discrimination holds POLICY: people back and has #3 All workers are serious consequences for treated equally and people’s life-chances. As with respect and dignity the events of 2020 have shown, systemic injustice #10 All workers have continues to impact access to fair people’s rights around procedures and the world. remedies
An inclusive world, with no the fundamental dignity and worth of including through our commitments to discrimination individuals from all identities, spend €2 billion annually with diverse backgrounds and walks of life, while suppliers, and increase the number of working to eliminate the institutional our advertisements that include people Eradicating discrimination and and unconscious barriers that limit from diverse groups, by 2025. advancing diversity are vital to the employees’ ability to achieve their full communities where we operate, to our To achieve this, we understand that we potential. We are committed to removing wider ambition to challenge outdated must drive systemic change through barriers and increasing inclusivity for cultural norms throughout our value our practices, policies and behaviours underrepresented groups. We have chain – and to contributing to a more to ensure that our culture promotes identified four Strategic Identity Groups prosperous and just society. psychological safety and a deep sense (Gender, Race and Ethnicity, Persons of belonging for employees across with Disabilities and members of all of our operating companies and Removing barriers and the LGBTQI+ communities) which will functions. It requires accountability require global focus in order to address challenging harmful norms from our most senior leaders in the challenges of underrepresentation at organisation, who can set the tone and all levels of our organisation, career We’re committed to eliminating lead by example with their actions, as progression, perception of inclusion discrimination of all kinds, including by well as the commitment of all managers and levels of voluntary attrition. Our gender, and to building a culture that and employees to proactively work overall aim is to be a beacon of equity, empowers people in our business and towards dismantling the barriers faced inclusion and diversity. That ambition beyond. Our ambition is to establish by underrepresented identity groups. equitable workplaces that recognise extends beyond our own business,
22 UNILEVER HUMAN RIGHTS REPORT 2020 In 2014 we launched the Opportunities Approximate number of workers for Women pillar of the Unilever in our extended supply chain Sustainable Living Plan, based on the potentially impacted: tripod of rights, skills and opportunities and underpinned by our belief that women’s empowerment is the single 77,000 greatest enabler of human development and economic growth. Top three countries where issues are found: Our work builds on the progress we’ve made through our USLP, in which India challenging harmful stereotypes and Brazil other forms of discrimination have Indonesia been key elements in our work to create fairness in the workplace and opportunities for women – work informed by our 2017 report, ‘Opportunities for Women: Challenging harmful social norms and gender stereotypes to unlock women’s potential’. In 2020, in the US, When a non-compliance is found we estimate the we committed more than $7 million to possible number of people impacted. See Appendix III for details. Our suppliers put remediation plans organisations working towards social in place for every non-compliance. Data source: justice and racial equity. In support Brands in action USQS Global Responsible Sourcing Report NC Audit of our aim to be the No.1 employer of data 2016-YTD 2020 audits. people with disabilities, we are building In 2019, Dove partnered with UNICEF a culture where there is no stigma in with a a shared vision/goal to educate sharing a disability, where employees 10 million more young people by 2022 can have open and honest conversations on self-esteem and body confidence to “The burden to end regarding their abilities, and where our help them reach their full potential. Dove institutionalised racism workplaces, systems, and processes also created Project #ShowUs, an image cannot fall only on Black do not present obstacles. In 2018 we library created by women, female- and African American signed the UN Standards of Conduct identifying and non-binary individuals. for Business: Tackling Discrimination communities. We must In 2018, Ben & Jerry’s partnered with against Lesbian, Gay, Bi, Trans, & Milość Nie Wyklucza (Love Does Not do more both within Intersex People. In 2020, we also used Exclude Association) and Fundacja external guidance including from ILGA, and outside the Unilever Wolontariat Rowności to install a Stonewall and Open for Business to ecosystem to use our colourful water unbreakable rainbow zone all the markets we operate in light projection just in time for Warsaw’s economic power for good depending on four factors: same sex Pride parade. and help tackle the root acts being legal; protection against causes of social injustice.” hate crime; employment protection; and In 2019, Hindustan Unilever joined in legality of same-sex marriages and/or the country’s first-ever Pride campaign civil unions. This informs how we engage to create awareness and support Fabian Garcia on LGBTQI+ issues in each of our markets. colleagues who identify as being part President, Unilever North America of the LGBTQI+ community.
UNILEVER HUMAN RIGHTS REPORT 2020 23 Equal pay for equal work Our future direction We have a longstanding commitment to equal pay for equal work, which is one of The events of 2020 have shown that the journey towards the five principles of our Framework for social justice and gender equality is far from over. At Fair Compensation. the same time, movements such as Black Lives Matter demonstrate the power and commitment of citizens around If our analysis indicates any average the world in demanding equity and justice. pay differences between genders at a country or grade level (a ‘gender We understand that discrimination is an intricate system pay gap’), we support and identify resulting in the exclusion of people of colour from positions opportunities to address gaps through of power, access to services, global decision makers, our diversity and inclusion initiatives. etc. Aligned with our expressed values and standards of leadership we believe that it is our responsibility to We also cascade the principles of our understand and eliminate discrimination based on race and Framework to our suppliers through ethnicity in our company and in those organisations that our Responsible Sourcing Policy, which partner with us. Given the social relevance of the issues requires that fair wages are paid. of racism and institutionalised discrimination, Racial and We have identified temporary workers Ethnic Equity has been established as one of four Strategic as an area of focus both in our own Identity Groups in our Global Equity, Inclusion and Diversity operations and in our extended supply (EI&D) strategy and we have developed a strategic chain. In 2018 we rolled out our internal framework to ensure visible, measurable, sustainable policy and process for the Sustainable actions to impact representation, employee experience and Employment of Temporary Workers, career progression of Black and Brown Talent. which sets out 10 Golden Standards that The job to address women’s inequality and lack of include fair and equal treatment, gender opportunity in some areas is still not done. For example equality, diversity and freedom of we have made good progress in addressing the legacy of association. By linking this to extensive underrepresentation of women in leadership positions work to collect global granular data in our Supply Chain function, but we still have work to relating to the employment of temporary do. Another challenge we face as a global business is workers in our factories, we’ve gained implementing global positions on issues such as LGBTIQ+ greater insight and understanding of rights at the local level, where we need to remain true to how temporary workers are employed. our beliefs while being sensitive to the local situation. In 2019, we enhanced the assessment Working with expert organisations, sharing experiences process for labour agencies providing and learning from others has helped us create clear plans in-sourced temporary workers, checking in this area. that they are compliant with our RSP and using a specifically designed The casualisation of employment and unequal working Self-Assessment Questionnaire (SAQ) conditions continue to be at the heart of many labour and subsequent risk-rating for labour issues in global supply chains. As we build on our internal agencies, followed by independent policy on the Sustainable Employment of Temporary on-site assessments. In 2020, because Workers, a focus going forward will be ensuring of COVID-19, these assessments were comparable terms and conditions for temporary workers done remotely. in our extended supply chain.
24 UNILEVER HUMAN RIGHTS REPORT 2020 Our salient issues Fair wages
RESPONSIBLE Fair wages are a crucial SOURCING POLICY: element of raising living #6 All workers are standards and creating a paid fair wages fairer, more inclusive world. They also benefit the broader economy by stimulating consumer spending, creating a virtuous economic growth cycle.
Our living wage vision most important, and most challenging country business to report its status contributions our company can make against the standards of our Framework Fair wages are the bedrock of a truly to building a fairer and more inclusive each year, and where appropriate, responsible and sustainable business – world. To achieve this vision, we will country reports must include a and a vital gateway to more equitable build on the work we’ve already done remediation plan to rectify any issues societies. to pay all our employees a living wage, of concern. everywhere in the world – and work with Our ambition is to improve living others to change the global systems standards for low-paid workers Fair wages, for decent living that currently hold people’s incomes worldwide, allowing people to and opportunities back. standards participate more fully in their communities and helping them Central to our Framework is the principle break the cycle of poverty. Alongside Our Framework for of a ‘living wage’ – that is “remuneration programmes aimed at empowering Fair Compensation received for a standard workweek by a millions of small and medium worker in a particular place sufficient to enterprises in our value chain for In 2014 we created a Framework for afford a decent standard of living for the growth, we’ve committed to ensuring Fair Compensation, which included our worker and her or his family. Elements that everyone who directly provides commitment to be a living wage of a decent standard of living include goods and services to Unilever earns employer. This outlines how we should food, water, housing, education, health at least a living wage or income by deliver fair compensation by listing a care, transportation, clothing, and other 2030. We believe it is one of the biggest, number of standards. We require each essential needs including provision
UNILEVER HUMAN RIGHTS REPORT 2020 25 for unexpected events.” (Global Living done this in the UAE, Vietnam, Rwanda “We will work with our Wage Coalition) and India, where we are working with the FWN across 17 states. partners to raise standards so that their Expanding our vision across employees are paid a NETWORK our value chain living wage and are not subject to forced, We have continued our work with To make our living wage and living compulsory, trafficked the independent Fair Wage Network income ambition a reality, we’ve put (FWN) and use their global living or child labour.” an action plan in place that builds on wage database to monitor our own the progress we’ve made through our operations. Our initial assessment, in RSP. We’re looking at where the gaps From our Code of Business 2015, identified 37 countries with living between legal minimum wages and Principles, updated 2020 wage concerns, amounting to just under living wages are the greatest, where 12,000 of our direct employees receiving the social safety net for workers is less than a living wage. These concerns weakest, and where we can make the have now been addressed. most impact, based on our presence and scale in local markets. We will Building on our work with focus on the most vulnerable workers in manufacturing and agriculture, suppliers and we will work with our suppliers, other businesses, governments and The payment of either the legal civil society – through our purchasing minimum wage or the prevailing industry Approximate number of workers practices, collaboration and advocacy standard (whichever is higher) has in our extended supply chain – to create systemic change and the potentially impacted: always been a mandatory requirement global adoption of living wage practices. of our Responsible Sourcing Policy. Over the years we’ve worked with suppliers Spotlight on Malawi 260,000 to ensure this requirement is met – but it is not always straightforward. In some Malawi Tea 2020 was a multi- Top three countries where countries, including those under the stakeholder partnership that aimed issues are found: China Gulf Cooperation Council (GCC), there to improve the competitiveness and India are no legal minimum wages mandated sustainability of the Malawian industry by the government, so there is no legal so that workers earn a living wage and
Indonesia framework. This meant we needed to small-scale farmers earn a living income. identify a substitute for the legal At the end of the 5 year programme, minimum wage as an initial wage floor a third of the living wage gap has or starting level. been closed for 50,000 tea workers. Highlighting progress but also on-going We are working with the FWN to achieve challenges. Learnings from the Malawi this and have conducted a study to 2020 programme partnership included identify the gap between the lowest When a non-compliance is found we estimate the the importance of agreement on living wage paid by our suppliers and the possible number of people impacted. See Appendix wage methodologies, the important V for details. Our suppliers put remediation plans value we have identified. The FWN carry in place for every non-compliance. Data source: link between improved product quality out interviews with workers to better USQS Global Responsible Sourcing Report NC and wages, and, critically, verification Audit data 2016-YTD 2020 audits. understand their expenditure and have from producers that they benefitted from
26 UNILEVER HUMAN RIGHTS REPORT 2020 Our future direction
Rolling out our internal Framework for Fair Compensation of the concept, by encouraging industry and stakeholder across the full breadth and diversity of our global collaboration, particularly around aligned methodologies operations has underlined the importance of strong and benchmarks, and by working towards transparent and governance and of building internal understanding of widely available wage data. We see the inclusion of living which elements contribute to a living wage. wage requirements in certification schemes as a positive move, but one that needs further development. We’ve found it has been critical to have a clear framework, policy and process in place, which we continued to review We are clear that paying a living wage is not only the right and strengthen. Few companies have attempted an thing to do but also makes business sense. We need to ambition on this scale, and it required a rapid learning continue to drive systemic solutions, including addressing process, including when it came to regional differences purchasing practices and fair pricing models, while where gaps with the living wage were largest. Progress in creating an enabling environment for fair wages, including some areas was slower than we wanted, for example in our through government advocacy to raise wages above sales-force teams where pay structures were different. poverty level.
We’ve laid important foundations for our new living wage commitment, by building awareness and understanding
improved quality. Obtaining feedback from workers is an area that needs to “Malawi 2020 is a good be strengthened. Engagement with trade unions and support for collective example of Unilever’s new bargaining was a vital element of this vision for procurement – work as was the development of an a procurement with innovative sustainable procurement purpose – driving impact model. Another concern was potential unintended consequences of focusing on every day, everywhere, for wage increases in one country due to its everyone. It is critical that effect on sourcing from other countries. additional value is passed A further consequence of increased onto the workers, and we wages in Malawi was that it pushed workers into a higher tax band. continue to work with our suppliers to include this in These issues underline the importance of a multi-stakeholder approach our contracts with them.” – including producers, traders, buyers, retailers, trade unions, NGOs,development partners and John Mutua governments – when working to increase Head of Tea Procurement, Africa wage standards sustainably in global supply chains.
See Appendix IV for more information.
UNILEVER HUMAN RIGHTS REPORT 2020 27 Our salient issues Forced labour
RESPONSIBLE SOURCING POLICY: Forced labour can be found in global value #2 Work is conducted on the basis chains in all regions of of freely agreed and documented the world – and we’re terms of employment committed to playing a #4 Work is conducted on lead role in its a voluntary basis prevention and eradication. #5 All workers are of an appropriate age
Forced labour: a constant employees have obtained employment external auditors to underline that risk, in a changing world with Unilever without the employee there should be no retention by the having paid a recruitment fee or related employer of personal documents, or cost directly or indirectly, as guided by other personal items of value, under The movement and recruitment of the International Labour Organization any circumstances, and that workers migrant workers are often poorly standards. This requirement is also in our should always keep their personal regulated and informal, and they can RSP for our suppliers. documents with them or be provided leave people vulnerable to forced with a safe place to keep them that they labour – that is, being coerced or Our RSP contains benchmarks that have 24-hour access to. Workers living deceived into jobs which they cannot guide suppliers to establish preventative in dormitories should be provided with leave. COVID-19 has heightened the risk mechanisms and strong internal a secure locker to store their personal to vulnerable workers. control systems, including responsible belongings in. This is particularly recruitment practices. However, we important for migrant workers. We also found that issues relating to forced Championing responsible developed a questionnaire that provides labour were not always being picked up guidance for our teams on the standards recruitment by external auditors. we expect when they are visiting A key element of our work is To address this, we conducted shadow accommodation for migrant workers, implementing the Employer Pays audits to understand how RSP auditors and what needs to happen where those Principle (EPP), that no worker should were identifying abusive issues related standards aren’t met. to recruitment processes, fees and pay for a job. Our Respect, Dignity and Effective and accessible grievance passport retention. We engaged our Fair Treatment policy requires that all mechanisms are essential. We recognise
28 UNILEVER HUMAN RIGHTS REPORT 2020 work remains to be done to strengthen grievance mechanisms for migrant workers Our future direction in particular. To understand our position further, please see our UK Modern Slavery Regional or industry approaches to addressing human Transparency Statements. rights issues for migrant workers, such as those taken in the palm oil sector, can drive change at scale. These must take action in both the migrant workers’ home and Harvesting the Future Project (Turkey) destination countries. 2019 and 2020 While we are seeing progress on issues such as passport Crops: Worker Groups Labour retention and an increasing understanding among suppliers 6 Accessed: Contractors that fee payment is not acceptable, we need to do more 528 Accessed: work to demonstrate both the moral and the business case Participant 363 for suppliers to practise responsible recruitment. Demand Brands: Workers from businesses like ours helps create an ethical recruitment Accessed: Producers industry, especially where systems have previously relied 5 Accessed: Participant 9,440 on fees. Suppliers must have processes in place to fully Suppliers: 746 understand the recruitment journey of workers, and workers 20 must fully understand their rights and understand the work they are being recruited to do. This project aims to improve recruitment and employment One of the biggest challenges we have found relates to the practices among seasonal migrant agriculture workers in Turkey remediation of fees paid, a key element of the Employer Pays Principle. The large amounts of money involved, often relating to several years, means that a sustainable fee repayment plan has to be created, involving both Approximate number of workers We used the key suppliers and workers. Workers are often concerned in our extended supply chain incident of passport about being open about the fees they have paid for potentially impacted: retention. We fear of retaliation. We also need to be aware of possible recognise this is tension between migrant and local workers who may not just one indicator of understand why fees are being reimbursed. forced labour. The 1,800 number of workers We are working with ethical trade management consultancy potentially affected Impactt to create a fee remediation toolkit, based on the Top three countries where by these issues is issues are found: far higher. Audit experiences in our supply chain, which we will share with all reports estimate suppliers who recruit migrant workers. At the same time, we Saudi United Malaysia over 23,000 migrant will continue to promote prevention as well as remediation. Arabia Arab workers in our Gaps in legislation also need to be effectively addressed, Emirates extended supply chain in Malaysia, putting in place safeguards to protect and respect the rights Thailand, UAE of migrant workers: for example, local laws do not prohibit and KSA. fee payment in some instances. This means transparency and clarity from governments are critical. See Appendix III for details. In 2021, we will continue to implement our multi-year strategy to eradicate forced labour, including our EPP operational framework. When a non-compliance is found we estimate the possible number of people impacted. See Appendix III for details. Our suppliers put remediation plans in place for every non-compliance. Data source: USQS Global Responsible Sourcing Report NC Audit data 2016-YTD 2020 audits.
UNILEVER HUMAN RIGHTS REPORT 2020 29 Our salient issues Freedom of association
RESPONSIBLE SOURCING The world of work is POLICY: changing – and we need #8 All workers are to continue to uphold free to exercise their fundamental rights and right to form and/or effectively implement join trade unions or ILO core conventions, to refrain from including the right to doing so and to freedom of association. bargain collectively
Respecting the right to Working with trade unions freedom of association at the global, regional and local level Freedom of association means that No place for sexual harassmeNt workers are able to form and/or join We work extensively with trade unions, trade unions of their choice, and to including through joint working groups at uNilever bargain collectively. It is a fundamental and formal consultations, as well as human right. through the day-to-day interactions that Trade unions play a critical role in our leadership teams have with union representing and supporting workers. representatives in the workplace. We Around 80% of our total workforce have working groups in place to address and around 89% of our manufacturing the well-being of our employees, the employees are covered by an rights of temporary labour employees, independent trade union or collective sustainable employment, women’s bargaining agreements. This equates to rights and sexual harassment in the 285 independent trade unions that we workplace. Our relationships with engage and negotiate with on an annual trade unions help us have constructive basis around the world. engagements on workplace practices, enabling us to be proactive and pre- emptive in solving industrial and employment relations issues.
30 UNILEVER HUMAN RIGHTS REPORT 2020 The Memorandum of Understanding In Europe, we work with the Unilever Approximate number of workers that we have with the IUF (International European Works Council (UEWC), in our extended supply chain Union of Food, Agricultural, Hotel, an annual forum in which union potentially impacted: Restaurant, Catering, Tobacco and representatives and management Allied Workers’ Associations) and from all countries and sites of Unilever IndustriALL confirms our commitment to in Europe come together. In 2019, the 50,000 biannual meetings and communications UEWC signed the declaration on the between meetings as deemed necessary. Future Framework of Work to further Top three countries where These biannual meetings are a face-to- strengthen the position of individual issues are found: face engagement between Unilever’s employees in times of change and to senior executive and industrial relations prepare employees for the future of work. Turkey India leaders and IUF and IndustriALL We also work through the European leadership and representatives. These Core Committee (ECC), a monthly forum Indonesia discussions allow us to address human where we discuss ongoing topics such as and trade union rights arising within employee rights, organisational changes the Group’s operations and overarching and strategy. issues and set the tone for local In the USA, we have recently committed management/trade union relations. to the IUF and affiliated UFCW union that In 2020, to meet the challenges created we will continue to recognise employee by the COVID-19 pandemic, we had rights through a transparent process regular communication with employees should employees on our sites wish and local union representatives on the to unionise. In all other countries with When a non-compliance is found we estimate the ground. This enabled us to deep dive unionised sites, we will either undertake possible number of people impacted. See Appendix in specific countries and sites, and local trade union negotiations at site III for details. Our suppliers put remediation plans in place for every non-compliance. Data source: to work with local teams and union level or regional/sector negotiations at USQS Global Responsible Sourcing Report NC representatives to resolve issues. national bargaining level. Audit data 2016-YTD 2020 audits.
“It is important that we continue to work with a partnership mindset with our unions around the world in order to build a more collaborative approach to jointly solve Future of Work requirements.”
Antoinette Irvine VP HR Global Supply Chain, Unilever
UNILEVER HUMAN RIGHTS REPORT 2020 31 Making progress on key issues Our future direction
In the last few years, we have regularly Engagement with local and global trade unions has enabled come together with trade unions to us to respect and advance workers’ rights through joint address critical rights issues in the working groups, commitments and MOUs. When issues workplace, including diversity and arise, we work together to resolve them in a collaborative sustainable employment. These and effective manner, both in our own operations and with engagements have led to progress in our suppliers. It is important to work with trade union and several areas. worker representatives to effectively address labour rights and non-compliance concerns. In 2019, as part of the Joint Working Group on Sustainable Temporary In 2019, 107 out of 145 countries surveyed by the Employment, we agreed to undertake International Trade Union Confederation (ITUC) excluded joint independent assessments at certain categories of workers from the right to freedom of some of our factories to review the association, often based on their employment status. 74% policy and practices for fair treatment of countries exclude workers from the right to establish or of Unilever temporary employees. join a trade union. The Middle East and North Africa were Recommendations for best practices described as the worst regions for working people and sharing, and/or risks worth mitigating 10 countries ranked as the worst countries for working against, are communicated to other people. Like many other businesses, we work in all of these Unilever sites around the world. countries and must remain diligent.
In 2018, we started working with the One of the challenges continues to be working in those International Transport Workers’ countries where, due to legal frameworks, unions are neither Federation (ITF), the International Union free nor fair, there are no effective collective bargaining of Food Workers (IUF) and FNV-Stichting mechanisms and/or workers are not free to join a union of VNB to better understand and act on their choice. In such cases, we recognise that we need to poor working and safety conditions ensure that other credible means of worker engagement are for truck drivers, including migrant available, while always supporting independent unions and drivers in Europe. We piloted new ways respecting the right to freedom of association. of conducting worker-centred, human As technology rapidly changes the workplace and new rights due diligence in our supply chain, business models develop, the rights of all workers need to so we will be better able to identify and be respected and promoted, including platform workers and remediate issues of human and labour those working in the so-called gig economy. We will continue rights abuses, specifically for drivers to work in collaboration with others including trade union of HGV vehicles. This work is unique partners and governments to enable the same protections and represents a new way of assessing and benefits for workers in non-traditional settings, human rights risks by working with including at home. Our new employment models linking trade unions. flexibility and security, upskilling due to automation and We also supported dialogue between access to learning are currently being piloted in countries workers and management to improve around the world and will be accelerated in 2021. Unions water and sanitation in tea estates are important partners in supporting the reskilling and in Assam. This kind of engagement is upskilling of workers as we prepare for the work of the future. important to systematically address human rights impacts.
32 UNILEVER HUMAN RIGHTS REPORT 2020 Our salient issues Harassment
RESPONSIBLE SOURCING Harassment and bullying have severe POLICY: effects on survivors and on those #3 All workers are around them. We have zero tolerance treated equally and for harassment of any kind. We with respect and know that harassment can take place dignity anywhere, in any sector, industry and workplace, and we are committed to addressing it throughout our value chain.
Safety for women: addressing women the simple question: “What comprising welfare, business integrity, root causes would it take to make you feel safe?” security and legal representatives. This has improved information-sharing and We engaged an independent helped us to address the root causes of We’re taking action to improve women’s ombudsman to investigate past and issues by taking a holistic approach and rights and safety in the communities in current cases of gender-based violence sharing lessons. which we operate. and hired external experts to lead our safety programme. Our work on safety for women started in our tea plantations in Kericho in 2014. In our tea plantations, the welfare One in three women While we believed that women living management team supports managers and working on our tea plantations were to implement our safety programme and one in seven men safe, in reality more needed to be done. for women, boys and girls. The team will encounter abuse We had also thought that our grievance leads training and other programmes at some point in their mechanisms were effective and trusted, on gender and related topics, with but again, in reality, they were not. As 100% of employees trained on sexual lifetime. These numbers in many parts of the agricultural sector, and gender-based violence and related are currently on the rise. women in and around tea plantations topics every year. All survivors and are too often disempowered and denied families are provided with psycho- access to rights or remedies. social support, including counselling, grievance handling and monitoring. We Our response was to create a have formed plantation committees programme for women’s safety, asking
UNILEVER HUMAN RIGHTS REPORT 2020 33 Working with partners to 200,000 women workers on almost 300 Approximate number of workers make women safer tea estates in Assam by the end of 2023. inour extended supply chain potentially impacted: In November 2020 we published our To promote an industry-wide global position on domestic violence commitment to tackle safety in the tea accompanied by a comprehensive 4,500 sector, we supported the formation of guide and the domestic violence the Gender-Empowerment Platform learning pathway on Degreed – our This refers to RSP audit results only. (GEP) in Kenya, led by IDH – the global learning system. Our global Sustainable Trade Initiative. Since 2017, position includes special paid leave of Top three countries where issues are found: the GEP has brought together Kenya’s up to 10 days for relevant appointments, biggest tea-producing companies and including with support agencies, relevant civil society. We have led and solicitors, to rearrange housing or Mexico Brazil India participated in various peer learning childcare, and for court appointments. sessions to build dialogue and uptake Up to an additional five days’ paid of the women’s safety agenda in the special leave and temporary or tea industry in Kenya. The platform will permanent changes to working times help tea to become the first agricultural and patterns may be provided to supply chain in Kenya to address and someone escaping an abusive situation. develop solutions to gender-based violence-related issues, by being Spotlight on women’s safety effective in response but even stronger When a non-compliance is found we estimate in prevention. It was clear the issues in last-mile distribution the possible number of people impacted. See were endemic, and we wanted to trigger Appendix III for details. Our suppliers put remediation channels plans in place for every non-compliance. Data change across the sector. source: USQS Global Responsible Sourcing Report Since 2018 Unilever has partnered with NC Audit data 2016-YTD 2020 audits. Working with UN Women, we reviewed CARE International to support women’s and expanded our programme to economic empowerment and provide PHOTO: SALINA WILSON/UN WOMEN all our tea plantations in Africa, and solutions to the issue of women’s engaged our tea suppliers in Kenya and safety as part of the development and Assam, India. In Assam we have reached implementation of Unilever’s last-mile approximately 15,000 workers directly distribution models, such as Shakti. Our and 296,000 indirectly. Shakti programme enables women in In Assam, we are developing the remote rural areas to become micro- Women’s Safety Accelerator Fund retail entrepreneurs and earn income by (WSAF) – a bold new programme to selling Unilever products. As part of this address women’s safety and gender- project in Guatemala, CARE International based violence in the Indian tea sector. conducted a socio-economic assessment The impact fund has been set up in in two pilot locations, focusing on partnership by Unilever and IDH, and violence against women, economic will support tea producers and local decision-making, women in leadership implementation partners to set up and gendered division of labour. mechanisms to address gender-based This baseline study found that violence violence, strengthen prevention and had been so normalised in communities support women’s empowerment in that the women participating in the the tea gardens. It aims to impact study had difficulty sharing their
34 UNILEVER HUMAN RIGHTS REPORT 2020 “A thriving society is one Our future direction where everyone has equal We have learnt a great deal from our work to combat access to rights, skills and harassment and promote safety for women. Two key opportunities. This cannot insights have been the importance of involving men be achieved without and boys in programmes, and the realisation that little will change unless women are able to access positions ensuring the safety of of leadership in both the workplace and community. marginalised communities. We’ve also seen from our work on financial inclusion Unilever is committed that men often control women’s accounts and mobile to leading on this and phones, which are frequently used in cash transfers. It is critical that this cultural norm is addressed in a careful ensuring that we continue and sensitive way as part of our work to improve the to design, implement and economic independence of women.
advocate for progressive Cases continue to be raised by women working for policies which help to suppliers, and many cases are raised directly to respect the human rights Unilever. We must have an ongoing focus on developing of everyone.” and supporting grievance channels within our suppliers’ organisations. It is important that these channels are developed with input from workers. In Leena Nair Kenya, we are working with tea workers, smallholder Chief Human Resources Officer, farmers and UN Women to build and strengthen Unilever grievance mechanisms among suppliers so that workers can report grievances and seek essential health and legal services. experiences and understanding that they have the right to live a life free from Looking ahead, we will expand our work on safety for violence. The study indicated that 65% of women to all our key agricultural commodities. Palm the participants had experienced gender- oil will be our next focus for rolling out the Global based violence. We then embarked on a Women’s Safety Framework in Rural Spaces. We will deeper study to understand the specific also risk-map our other non-agricultural commodities. risks related to violence against women Although much of our work has focused on agriculture, and the opportunities offered by last- we recognise that harassment exists everywhere mile distribution interventions. Learning and has the potential to affect anyone, regardless from the information shared by women of gender. COVID-19 has increased the vulnerability participants, we were able to design of many workers. social norms interventions addressing Women have been put in even more vulnerable violence against women which will situations, with statistics showing that reports of be embedded in ‘foundational’ and domestic abuse are up over 20% in many countries. ‘accelerator’ entrepreneurship training As we look to our new Social Ambition, safety for curriculums, with business and life skills women will continue to be one of our key priorities. sessions. The findings from Guatemala are supporting the further development of a blueprint for women’s safety recommendations and guidance.
UNILEVER HUMAN RIGHTS REPORT 2020 35 Our salient issues Health & safety
RESPONSIBLE SOURCING Safety is a Every year, there POLICY: non-negotiable are more than #9 All workers’ health commitment, 2.78 million and safety are shared by deaths from protected at work everyone at occupational Unilever. accidents or work-related diseases
ILO 2018
A moral obligation at the In our supplier audits, health and safety At the same time, we aim to promote heart of our business continue to be the non-compliance most a positive physical and mental health often reported. This may be because environment in the workplace, to enable they are easier to identify in audits than our people to thrive. Any employee should be able to live other non-compliances. We know that and work free from the risk of injuries as financial pressures on businesses No acceptable level of accidents or accidents. It is a moral obligation increase, health and safety can often that is reflected in our Code of Business We measure accidents in our factories suffer, so much of our engagement with Principles, and our RSP. We require and offices using our Total Recordable suppliers is around improving health that everyone who works for or with Frequency Rate (TRFR), which counts and safety, sharing our knowledge and us embeds health and safety as core all workplace injuries except those best practice. elements in everything they do. requiring only simple first aid treatment. This was 0.64 per million hours worked Within our operations, it is Unilever’s Supporting physical and mental in 2020. This meets the target set in our responsibility to provide a healthy and health, as well as safety USLP, which was to halve the 2008 TRFR safe environment, but individuals must Within our business, the five pillars of of 2.10 in our factories and offices by also adhere to our requirements to drive our safety programme address safe 2020, a target we first achieved in 2013. our vision of an injury- and accident-free travel and transport, behaviour-based However, we will not settle for any rate workplace. That’s why we implemented safety, and safety related to contractors while accidents are still occurring, and ‘safety moments’ to learn from examples and construction, processes and we continue to pursue our Vision Zero and continually improve. We have no machinery, in pursuit of our Vision Zero strategy. tolerance for lack of implementation, safety ambition. and expect the same from our suppliers.
36 UNILEVER HUMAN RIGHTS REPORT 2020 Supporting well-being Approximate number of workers in We have a global strategy for medical our extended supply chain potentially impacted: and occupational health, which focuses on both health protection and health promotion. 108,000 Mental health is one of our top three Data does not relate to all H&S issues that health issues and is a central focus were reported in audits but to Key Incidents. of our programme, which recognises that mental health is especially Top three countries where issues important in times of change or are found: uncertainty. We actively encourage China talking about mental health with India the same comfort as we do about physical health at the workplace. We Indonesia train our leaders and line managers to understand the impact of mental health issues, recognise signs and signpost the support available to their teams. This has been particularly important in 2020, during the COVID-19 pandemic.
Health and safety in our extended When a non-compliance is found we estimate the supply chain possible number of people impacted. See Appendix Supporting our people and III for details. Our suppliers put remediation plans in place for every non-compliance. Data source: communities during COVID-19 Our audits of suppliers’ facilities USQS Global Responsible Sourcing Report NC consistently find that health and Audit data 2016-YTD 2020 audits. In the face of COVID-19, we’re taking safety issues represent the greatest action across a number of fronts to help number of non-conformances with protect the lives and livelihoods of our our policies. Too often, we find that stakeholders – including our employees, Vision Zero suppliers’ facilities are addressing only consumers and communities, our the symptoms of the issue and not the customers and our suppliers. We’ve put The right to a safe and healthy work root cause. In many cases, that root in place a set of measures to support environment is non-negotiable. cause is a lack of a ‘health and safety global and national efforts to tackle We are transforming safety with mindset’ among both workers and the pandemic. our Vision Zero strategy which management. Even with good processes underpins everything we do as a All of our sourcing units and distribution in place, a lack of accountability from business. It aims for: centres apply specialist tiered protocols senior leaders increases accidents in n zero fatalities to protect our workers while supporting any company. business continuity. Our country n zero injuries Unilever safety experts often visit leadership teams continue to monitor n zero motor vehicle accidents supplier sites to provide support, and we the situation carefully and engage with have designed a guidance document to n zero process incidents site leads as appropriate. We’ve also put help suppliers create their own Health n z ero tolerance of unsafe in place strict site protocols for hygiene & Safety committees, sharing best behaviour and practices. and social distancing.
UNILEVER HUMAN RIGHTS REPORT 2020 37 “Safety is first and Our future direction foremost a matter of Despite the significant progress we’ve made in mindset. It must be reducing injuries, we’re still having serious accidents. integrated in every These are not acceptable and we’re determined decision we make and to prevent them by continually improving our programmes. In 2019, to demonstrate the every action we take. commitment of the leadership of our organisation, No one should think we introduced a one-hour stand-down (a scheduled of it in terms of a stop) across all Unilever’s operations worldwide programme that to mark any fatality happening at work. Alongside this, a Unilever Leadership Executive member or the somebody else will drive country’s General Manager will travel to the location within an organisation. of any fatality to review the case and the actions Zero accidents do not being taken. happen by chance. We have applied the same lessons-learnt process I believe safety is following any kind of incident. We have also made and must be the first good progress relating to our MoMo (Motor on, Mobile off) programme. Self-discipline remains one leadership value of of the biggest challenges. To support our efforts we every organisation.” are piloting an app which will stop any incoming calls/texts when driving. Overall, we are also moving to increased real-time reporting of accidents or near- Olivier Carnet misses in order to further reduce unsafe behaviour. Head of SHE, Logistics, Another focus of our work has related to acquisitions Manufacturing and SEAA SC and building the capabilities and competencies operations, Unilever of new businesses. We continue to work with our suppliers in developing a safety mindset and making their workplaces safer practices from the industry and from As we look to the future, increased automation Unilever. We will roll this out globally by and digital factories have the potential to reduce the second quarter of 2021 by providing accident rates. Digital factories are based on online training and organising safety integrating diverse digital methodologies and webinars for suppliers, and and continue tools in production and engineering. They include to monitor safety results at supplier sites an operating system with real-time tracking of through our RSP process. line performance and online tracking of quality Engagement of workers and their and safety. However, they also bring challenges in representatives is vital to prevent and, terms of the changing world of work and its impact where needed, remediate health and on people. We describe our work on responsible safety issues. automation in Looking to the Future.
38 UNILEVER HUMAN RIGHTS REPORT 2020 Our salient issues Land rights
RESPONSIBLE SOURCING Legal or customary POLICY: rights to land #11 Land rights of protect people’s communities, livelihoods including indigenous peoples, will be protected and promoted
Respecting land rights Landesa, we created the Global Land Rights Principles and Due Diligence UNILEVER We are committed to the principle of Implementation Guidance for our own free, prior and informed consent (FPIC): operations. In 2017, we rolled these out, LAND the principle that a community has the using awareness-raising and capacity- PRINCIPLES IMPLEMENTATION GUIDANCE: building materials. IMPLEMENTER LEVEL right to give or withhold its consent to DECEMBER 2017 proposed projects that may affect the We put in place a standard operating lands it customarily owns, occupies procedure and due diligence applicable or otherwise uses. That’s because we to all land transactions, requiring recognise that millions of people depend adherence to our Land Rights Principles on their land for their livelihoods – and and Implementation Guidance, geared we have a responsibility to respect to identify and properly address any their rights. case of expropriation from individuals or communities, or where land-rights Our global principles holders or users are identified. We have since completed seven land We want to ensure that land rights rights investigations relating to land are respected throughout our value acquisitions and disposals, putting in chain, and in 2016 we developed a place appropriate actions to ensure the comprehensive roadmap for our work. FPIC principles are followed when we With the aid of non-profit organisation
UNILEVER HUMAN RIGHTS REPORT 2020 39 are buying a piece of land, and ensuring we take responsibility to dispose of land ethically when no longer required.
Alongside this work, we are piloting the use of technology to create predictive models to better understand the implications of land change, for example in terms of deforestation and water use.
Spotlight on land rights and tea
In 2016, we put our Land Rights Principles into action in Rwanda when Unilever successfully bid for a Rwandan government concession to set up a tea-processing factory and commercial estates that will support extensive smallholder tea development in South-West Rwanda. This project has transformed one of the poorest areas engaged and appropriate remedial occupied by families or traditional of Rwanda by creating around 1,000 measures were in place. This included communities. We are using a cross- jobs, and will provide financial and a risk-mapping plan and a socio- functional approach that includes agricultural support to smallholder economic survey focusing on vulnerable our Legal and Real Estate teams to farmers, who will provide 70% of the groups to ensure that no one in the understand how to secure the right to tea produced. local communities is left worse off by the land for all parties, especially where the project. New model villages with there has been an illegal occupation The land for the core estate and factory infrastructure were constructed by the but the family or community won’t site is leased by Unilever and was government, and livelihood support have anywhere to live if a resettlement expropriated by the government for programmes were created. Unilever takes place. the project. As a condition of the bid, gave priority for employment to people we required that land acquisition and affected by the project. Due diligence Working with partners and resettlement would be implemented around this work is ongoing and we’ve in line with International Finance put in place a local Unilever welfare communities Corporation (IFC) Performance manager to work with communities and Standards. We worked closely local authorities. It is vital that our work on land rights with the government during their includes involving local communities expropriation process. and working with suppliers and Working with legal and real other partners. In Côte d’Ivoire, for We used external experts to example, we work with CLAP (Côte independently verify that the estate teams d’Ivoire Land Partnership) on an early- Resettlement Action Plan (including In Latin America, we’ve seen challenges scale implementation of land tenure the Livelihoods Restoration Plan and relating to lands acquired by Unilever education and documentation for cocoa Grievance Mechanism) properly ensured through M&A or debt recovery from smallholder families. that potentially affected persons our clients which have been illegally and communities were identified and
40 UNILEVER HUMAN RIGHTS REPORT 2020 Central Kalimantan, Indonesia (with Yayasan Penelitian Inovasi Bumi Our future direction – Inobu) We know that resolving social conflicts Since 2016, in Central Kalimantan, relating to the land rights of indigenous Indonesia, which is an important peoples and local communities is critical to source of our palm oil, we have been reaching our ambition for a fairer world, and collaborating with the non-profit in particular our commitment to the principles research institute, Inobu to support of no deforestation, no development on the provincial government of Central peat and no exploitation of people and Kalimantan and the district governments communities (NDPE). This will be a key area of of Kotawaringin Barat and Seruyan our work for 2021 and beyond. through a jurisdictional approach to One of the challenges we’ve faced is the sourcing sustainable palm oil. Since 2019, frequent lack of either formal or informal the project has included a workstream conflict resolution mechanisms. We continue on enhancing customary and community to seek guidance on how business can land rights by establishing a system with best help resolve conflicts, and on which the local governments to respond to interventions are most appropriate. We and mitigate conflict as well as mapping have engaged The Forest Institute (TFI) to and registering customary-owned and conduct a qualitative analysis of social community lands. and land conflicts relating to the palm oil Key barriers include the lack of industry in Indonesia, and to research global recognition of community rights to land best practices and innovations in order to and resources; lack of clear standard develop concrete recommendations on where, operating procedures for handling, when and how the private sector could best reporting and managing conflict; and intervene to help reduce or resolve conflicts. lack of accessible and transparent This will help inform not just our own palm oil databases for recording and monitoring strategies but also those of the wider palm the progress of conflict resolution oil sector. We will continue to focus on the processes. Inobu has also contracted impacts of formal and informal land tenure The Forest Peoples Programme to carry on women and continue to support human out an independent human rights impact rights defenders (see page 57). Although assessment to identify any additional many issues relating to land rights are in rural human rights impacts that need to areas, issues around compulsory purchase, be addressed beyond land rights. The eviction and land ownership can also be found involvement of local communities and in other sectors, including peri-urban areas or the creation of a truly participatory so-called ‘urban sprawl’. We will continue to process will be integral to this work. review land transactions across our business Please see our section on palm oil for and implement our requirements across our background information on jurisdictional extended supply chain. and landscape approaches and examples of other programmes we are using to pursue common environmental, social, and economic goals.
UNILEVER HUMAN RIGHTS REPORT 2020 41 Our salient issues Working hours
RESPONSIBLE SOURCING Excessive working hours POLICY: can take many forms, #7 Working hours including excessive and for all workers are sometimes mandatory reasonable overtime, back-to-back shifts, lack of rest days or a lack of breaks during the day.
When home and work merge hours to cover absenteeism prompted into one by illness, fear or lockdown rules. We know that this is an issue in our business and supply chain that we must address For many people, the working day is responsibly to ensure the well-being far too long. Whether it is the pressures and safety of employees, in alignment of an ‘always on’ office environment with our ambition for a fairer and more where home and work blend into one, socially inclusive world. or the need to work as many shifts as possible during harvest time, too many people are subject to long working hours Collaborating with suppliers beyond legal requirements – if indeed on working hours those legal limits exist.
There is plenty of evidence that excessive Under our RSP guidelines for suppliers, hours of work and inadequate periods following national law on working of rest can damage health and increase hours is non-negotiable. However, in the risk of accidents. And often, there is a reality, national law can often allow significant link between low wages and a high number of working hours per excessive working time, a risk that has week – which is one of the reasons become increasingly apparent during that reducing working hours, including 2020 as a result of COVID-19, which has to ILO recommendations, is among also meant some workers working extra the biggest challenges we face in our
42 UNILEVER HUMAN RIGHTS REPORT 2020 own operations and in our extended suppliers to share best practice and Approximate number of workers supply chain. Since working hours are business toolkits. All participants in our extended supply chain often directly connected to income, committed to move towards working potentially impacted: there is a frequent issue with workers within the limits of 60 hours per week for moving to other jobs if their working regular and overtime hours. We will work hours, which may include overtime, with our suppliers on making progress. 190,000 are reduced. That’s why any discussion In the Philippines, where there are around working hours must be linked no legal limits to working hours, we Top three countries where to wage levels. Overtime must always issues are found: conducted a study of eight suppliers in be voluntary with the worker’s consent, India 2020, and found that three had workers and health and safety must always Brazil working more than 60 hours per week. China be paramount. Remediation plans were put in place.
Understanding local laws Guidelines to support
Working hours legislation varies by workers’ well-being and region, and very often by country. help suppliers
When a non-compliance is found we estimate the In Kenya, for example, where local law possible number of people impacted. See Appendix To drive better practices, we created a III for details. Our suppliers put remediation plans does not prevent people working more guidance document to reduce working in place for every non-compliance. Data source: than 60 hours per week, we held a USQS Global Responsible Sourcing Report NC hours. This summarises the rest days and Audit data 2016-YTD 2020 audits. roundtable event in 2019 with packaging maximum working hours per day and
UNILEVER HUMAN RIGHTS REPORT 2020 43 per week, and specifies the conditions which must be in place to qualify for an Our future direction exemption for a limited time, such as additional overtime for a limited period There are several challenges to reduce during peak harvest season. Exemptions excessive working hours. One is that workers could also apply to exceptional, are not given the appropriate number of force majeure circumstances that are rest days because suppliers require existing unforeseeable or cannot be prevented, employees to work extra hours (sometimes such as recovering production after back-to-back shifts) rather than hire industrial action, machinery breakdown additional staff to cover an extra shifts. or power failure. We have also helped This is also a health and safety risk, which suppliers improve their production we raise with suppliers in our discussions. processes to reduce the burden of It is often compounded by a lack of clarity excessive working hours, including or rigour in local legislation, allowing through planning, employing additional companies to propose shift rotations that workers and changing shift patterns require employees to work, for instance, (eg new rotation systems). 14 consecutive days without any 24-hour rest days. To meet our RSP’s good practice level, suppliers need to implement the ILO Workers frequently want or need to work conventions of 48 hours of normal extra shifts in order to earn more money and, working hours and a maximum of in many cases, secure a decent livelihood, 12 hours of overtime per week, or especially in countries facing recession national law if this is stricter. To and high rates of unemployment, or when demonstrate best practice under our people have temporary contracts. We RSP, suppliers must show they have support working hour reductions by supplier conducted an effective study to avoid engagement, site visits and constant follow- the need for overtime altogether, up on practices and policies. Issues such as except in exceptional circumstances. excessive working hours are increasingly This aims to enable workers to enjoy prevalent and difficult to monitor the further a proper work–life balance. Our aim is up a company supply chain you go. The for suppliers to move beyond national traceability of global supply chains is an requirements to the good and best area where we have made progress (see our practice standards of our RSP. agriculture commodity supplier lists), but this remains one of our key challenges, and one Much of our work relating to working where both collaboration and technology hours is done on a case-by-case basis must play a role. with our suppliers, helping them to understand root causes and to address the issue in a systematic way. As such our ‘key areas of progress’ are more at an individual supplier level.
44 UNILEVER HUMAN RIGHTS REPORT 2020 Keeping our salient human rights issues under review
As well as addressing the salient issues we’ve identified, we know we need to keep monitoring them to make sure “Being a truly responsible and they’re still relevant. Are there any new, emerging issues we need to consider – such as those relating to technology socially sustainable business or new ways of working? And if so, are these relevant means meaningfully engaging globally? Or do we need to take a more local approach? with, listening to and learning To answer this, we re-mapped our salient issues in each of from rights-holders in order to our country clusters so we can focus our efforts on what collaboratively solve issues” matters most in those countries.
In 2018, we started a review of our salient human rights issues, carrying out internal and external consultations Rachel Cowburn-Walden with rights-holders and organisations that could give Global Director, Human Rights Stewardship, insight into rights-holders’ perspectives, beginning Integrated Social Sustainability, Unilever with an initial consultation in London facilitated by the consultancy, Shift. This included participants from civil society and worker representatives.
In 2019 we held internal and external stakeholder meetings in Kenya and Thailand, also facilitated by Shift and involving engagement with workers in our own and our suppliers’ businesses. In 2019 we carried out a salient issue review in Brazil, while in other clusters our Social Accountability team reviewed the local salient human rights issues through understanding audit outcomes, conducting research and speaking with Procurement. While we found that the main issues remained the same, going forward we will also focus on local salient human rights issues. We also discussed emerging issues such as human rights and plastic collection and the increasing link between human rights and climate change.
We know that regular engagement with rights-holders and their representatives and other stakeholders is critical to keeping our salient issues under review and needs to be an ongoing process.
UNILEVER HUMAN RIGHTS REPORT 2020 45 Spotlight on issues Understanding the trends. Taking action to promote human rights.
Our business has impacts on millions COVID-19 Water Palm oil of people’s lives, every day. While our manufacturing and supply chain creates opportunity, we know that we operate in systems where human rights risks are often deep-rooted and endemic. In this section, we shine the spotlight on some of the key risks associated with Tea Cocoa Non- our business activities – and the actions renewables we’re taking to address them.
Human rights Traceability Plastic defenders and transparency
46 UNILEVER HUMAN RIGHTS REPORT 2020 UNILEVERUNILEVER HUMAN HUMAN RIGHTS RIGHTS REPORT REPORT 2020 2020 47 Spotlight on COVID-19
Protecting health, respecting people’s rights
COVID-19 is presenting an As the world’s biggest soap company, handwash effectively, whichever brand unprecedented challenge to people’s we have a particular role to play, they choose to use, to protect lives and lives, livelihoods and rights. We believe as washing hands thoroughly and to protect livelihoods – and in March everyone in society has a part to play frequently with soap is one of the most 2020, we committed to provide free to overcome this challenge, and we effective ways to arrest the spread soap, sanitiser, bleach and food to the are focused on protecting our people of infection. value of €100 million. and those in our value chains, the From the outset, we have aimed to use communities we operate in and the our expertise in how to teach people to continuity of our business.
Global partnerships to soap and handwashing information seafarers were either left stranded on promote handwashing at bus terminals so people can wash vessels or prevented from returning their hands before and after travelling. to ships during the crisis. It was a In Bangladesh, we’re working with humanitarian emergency, as these men In March 2020, we teamed up with the NGO BRAC, to raise awareness of and women were at risk of becoming UK government to promote handwashing personal hygiene, social distancing physically and mentally exhausted, and surface hygiene in response to the and respiratory etiquette, and to away from their families and loved ones pandemic. Building on the longstanding change behaviours in marginalised for periods far beyond the standards work of our soap and detergent communities. We reached approximately stipulated in international conventions. brands, Lifebuoy and Domestos, the 1 million people through door-to- programme is backed by contributions of We believed governments should door dissemination of key messages up to £50 million each from both the UK’s step in and organise the facilitation to combat the virus, and distributed Foreign, Commonwealth & Development of crew changes, and work together 500,000 sachets of Lifebuoy handwash. Office and Unilever. with the shipping industry in ways that recognised seafarers’ rights and averted Lifebuoy is taking action across Africa Seafarers: a human rights the risk of widespread disruption to the and Asia. In Ghana, for example, global economy. crisis in the midst of pandemic we have extended the reach of our In September 2020, we joined 30 Lifebuoy handwashing programme COVID-19 restrictions on travel and Consumer Goods Forum (CGF) by placing hygiene stations with free transit meant that around 300,000 companies in a joint letter to the
48 UNILEVER HUMAN RIGHTS REPORT 2020 UN calling for governments to relevant suppliers. We also changed the Brands in action against designate seafarers as ‘key workers’ audit process for our RSP, removing the COVID-19 and grant exemptions from government- requirement for in-person audits which imposed travel restrictions and were unable to take place due to the While health and hygiene brands such quarantine measures. COVID-restrictions, but continuing with as Lifebuoy and Domestos have led our remote assessments. contribution against COVID-19, brands Supporting workers in India We also committed to protect our from across our portfolio have also workforce from sudden drops in pay played their part. In India, we worked with UNICEF, the as a result of market disruption or In Brazil, for example, Cif is working Indian Tea Association and other being unable to perform their role, for with Heineken, the country’s second- producer associations to support tea up to three months. We covered our largest brewing company, to workers in Assam with hygiene products employees, contractors and others manufacture a special batch of Cif and information on the proper response who we manage or who work on our household cleaner to donate to people to and containment of COVID-19. sites, on a full or part-time basis. For who live in some of São Paulo’s most our customers and suppliers, we have More widely, Hindustan Unilever has socially vulnerable towns. offered €500 million of cash flow relief partnered with UNICEF through the to support livelihoods across our #BreakTheChains / #VirusKiKadiTodo extended value chain. That includes Supporting our communities mass media campaign to inform and early payment for our most vulnerable empower people during the pandemic small and medium-sized suppliers to In the US, we worked with over 100 to be aware of the causes and help them with financial liquidity, and suppliers and partners for our first implications of COVID-19. extending credit to selected small-scale Day of Service to provide products, We’ve also worked together with retail customers whose business relies time and gratitude for those affected UNICEF and the government to on Unilever, to help them manage and by COVID-19. The equivalent of one make essentials like Lifebuoy soaps, protect jobs. day’s worth of products produced at the hand sanitisers and Domex cleaners 14 Unilever factories across America, available across the country.* approximately $12 million, were donated Innovating to adapt to to our partners at Feeding America or the pandemic Direct Relief so that American families Practical support for could get the food and personal care our workforce and our In the UK, we adapted production and hygiene products they needed. value chain lines to make hand sanitiser to donate to the NHS and joined a consortium In response to the pandemic, we made making ventilators. a range of changes to the way we In Myanmar, we used an almost fully operate so we could keep people safe dedicated train of the national rail and support workers. We created a system as a solution to the shortage four-tier system for our factories linked of truck drivers and trucks during to the WHO rate of human transmission lockdown. This meant we were still able of the COVID-19 virus and, in a spirit of to transport finished products from our collaboration, shared this and our other manufacturing plant in Mandalay to practices and control measures with Yangon and serve communities in the southern part of the country.
* UNICEF does not endorse any brand, product, company or service.
UNILEVER HUMAN RIGHTS REPORT 2020 49 Spotlight on Water
Water: a basic human right to the world’s most precious resource
Far too many people still do not have This is a clear human rights issue – and Through our brands, operations and their basic water needs met. improvements are not coming fast supply chain, we’re committed to enough. In 2020, UN-Water announced respecting people’s rights to water, and Worldwide, one in three people do not that the world was “alarmingly to acting as water stewards. We want have access to safe drinking water. off-track” in meeting Sustainable to make sure we’re using water in ways Two out of five do not have basic Development Goal 6 (SDG 6), which that enable everyone not just to survive, handwashing facilities, and more than seeks to ensure availability and but to thrive. 673 million people still have to resort sustainable management of water to open defecation. Water insecurity and sanitation for all by 2030. affects 40% of the global population and is projected to rise into the future.
50 UNILEVER HUMAN RIGHTS REPORT 2020 Respecting the right to water Our brands in action Harnessing the power of partnership In July 2010, through Resolution 64/292, Through our Lifebuoy soap brand, the UN General Assembly explicitly we have helped over 1 billion people Our public–private partnership with recognised the human right to water around the world improve their TRANSFORM, described on page 18, and sanitation. We respect these rights handwashing habits. includes a focus on water and sanitation. by operating our business in a way Our Pureit brand is available in We’re currently working with WASH social that fulfils the human right to water, 12 countries and plays a key role in enterprises in India, Bangladesh, Kenya, as defined by the UN Human Right to providing safe drinking water. Rwanda, Nigeria, Madagascar and Water Policy. We’ve also signed the Zambia. TRANSFORM has provided grant World Business Council for Sustainable And through Domestos, by the end of funding and tailored business support Development WASH Pledge to provide 2019 we had helped over 28 million to help these enterprises scale up their access to Water, Sanitation and Hygiene people gain access to better toilets. ideas. (WASH) in all our factories, plantations Our brands are also helping our and workplaces. consumers cut water use at home.
New collaborations WASH during COVID-19 tackling water security and stewardship In March 2020, we announced that we’re providing free soap, sanitiser, bleach In 2020, we announced two new and food to the value of €100 million partnerships to address water to help tackle the COVID-19 pandemic. stewardship. The 2030 Water Resources See page 48. Group (2030 WRG) will see us engage in collective action to achieve water security for all by 2030. We will work in “We are using our voice five markets of strategic importance, taking action to address shared and networks to water risks in and around 100 of our remind the world that water-stressed manufacturing sites by access to clean water, collaborating with other stakeholders safe sanitation and in the catchment area. To support this we have joined the Alliance for Water hygiene is a right, not Stewardship (AWS). a privilege.”
Peter Ter-Kulve President, Home Care, Unilever
UNILEVER HUMAN RIGHTS REPORT 2020 51 Spotlight on Commodities
Our supply chain connects us to millions Certification will continue to play an In particular, principle two – Respecting of people whose livelihoods depend important role in providing a level of and promoting human rights – sets on producing agricultural and non- sustainable practices assurance, but out the necessity to scale up efforts renewable commodities. We know that it has proved to be insufficient as a and drive the implementation there are systemic human rights abuses stand-alone mechanism for addressing of improved working and living in commodity supply chains such as deforestation, human rights or land conditions, particularly by protecting forced labour, inadequate health rights holistically. That is why we also vulnerable workers (including women, and safety protections, harassment, take an impact programme approach, migrants, temporary and informal discrimination and child labour. Dealing working with a range of stakeholders to workers), eradicating forced and child with the scale and intricacy of these implement a range of initiatives on the labour, and safeguarding land and commodity supply chains is one of our ground. Alongside, we’ve taken steps community rights. biggest challenges, but we believe we to strengthen the social element of Building on our existing work, we can use our influence and purchasing certification schemes and its effective are developing a matrix for sourcing power to create positive change. In monitoring, grievance mechanisms and specific commodities including soy, cases where we do not source directly, remedial actions. paper and board, which will cross- we use the influence we have with our Our new People and Nature (cross- reference key human rights issues direct suppliers to ask that they in commodity) Policy strengthens against our ability to have a positive turn work with their suppliers to drive existing mandatory requirements of influence in terms of transparency to sustainable change, implementing our suppliers and adds new ones to origin, our contractual terms and our the principles and requirements of the ensure a clear and robust approach purchasing power. This will enable RSP across their own corporate group to deforestation and respecting and us to create specific actions plans for operations and their third-party supply promoting human rights. It focuses on these commodities. chains that are supplying materials four key principles: to Unilever. The following pages give a snapshot of 1 Protecting natural ecosystems from our recent work with, and challenges Our Sustainable Agriculture deforestation and conversion; in, sourcing some key commodities. Programme, our Unilever Sustainable In our future work, we also intend to Agriculture Code (SAC) and our 2 Respecting and promoting place a stronger focus on additional Responsible Sourcing Policy (RSP) human rights; commodities such as sugar. are at the heart of our approach to 3 Maintaining transparency and sustainable sourcing. traceability; and
4 Being a force for good for people and nature.
52 UNILEVER HUMAN RIGHTS REPORT 2020 Palm oil Collaboration remains key. We are also members of the RSPO Human Rights Plantation workers and smallholder Working Group, where the focus includes farmers in the palm oil sector are the rights of the following vulnerable vulnerable to exploitation, and there groups: indigenous peoples and local continue to be abuses in the industry, communities; plantation workers; as well as environmental issues, that women; smallholders; human rights impact the rights of indigenous people, defenders; and whistleblowers. communities and women. Human rights The RSPO Human Rights Working Group defenders and whistle-blowers are also recently commissioned the development at risk. of a Practical Guidance on Gender Recent reports have again shown the Inclusion and Compliance with the vulnerability of women workers in the 2018 Principles and Criteria and 2019 palm oil sector. The safety of women Independent Smallholder Standard. in global agricultural supply chains The roll-out of auditing against the new and the particular issues that women Principles and Criteria is in process. face remain a key concern for us, and We work with the Consumer Goods we recognise that more still needs to Forum’s Human Rights Coalition Palm be done, and done quickly. We are Oil Working Group – Working to End committed to working with governments, Forced Labour. As members of the certifiers, civil society, suppliers and Palm Oil Collaboration Group, we peers to drive the promotion of the launched and co-convened the Social rights and safety of women and girls. We Issues Working Group (dedicated to describe our work on safety for women Principles and Criteria which are labour and land issues). The Palm Oil under the salient issue, Harassment. now aligned with the UNGPs and our Collaboration Group (POCG) brings While there are many opinions on the RSP, and continue to push for their together companies from every stage of approach to and importance of palm effective implementation including by the palm oil supply chain to accelerate oil, including calls for the removal of developing and improving guidance effective implementation of the NDPE all palm oil from products, we believe for assessors and strengthening RSPO’s commitments. The POCG meets regularly that palm oil has a very important role verification and complaint mechanisms. to discuss ways to align and collaborate, to play provided it is produced and Read more about our work to transform and is facilitated by an independent, sourced responsibly and sustainably, the palm oil industry. expert organisation. As members of the particularly since approximately 16 POCG, we launched and co-convened million people and their families rely on Collaboration key to driving change the Social Issues Working Group the palm oil industry to make their living. (dedicated to labour and land issues). The scale and expansion of the industry Our approach has always been, working and the remoteness of some workers in partnership with others, to increase Engaging more stakeholders through continue to create challenges in the traceability and transparency of a ‘landscape’ approach assessing and remediating human rights our palm oil and to improve living and risks. In our own value chain, we observe We increasingly take a ‘landscape and working conditions. an increase in grievances relating to jurisdictional’ approach to address We are actively involved in the social issues, and more connections both environmental and social impacts Roundtable on Sustainable Palm Oil between social and environmental in palm oil. These approaches bring (RSPO), where we successfully drove issues. Read more about our palm oil together diverse stakeholders to develop improvement of the certification’s grievance mechanism. and pursue common environmental,
UNILEVER HUMAN RIGHTS REPORT 2020 53 social and economic goals in specific Aceh, Indonesia (with IDH – The harassment, and further denied their geographic areas. Through collaboration Sustainable Trade Initiative) rights by inadequate or non-existent with government, civil society and grievance mechanisms and safe spaces. Through our partnership with IDH, local communities, these initiatives Our work in this area is described in The Sustainable Trade Initiative and can help address risks and impacts the Harassment section. other industry representatives, we are of commodity production that are supporting the Aceh Tamiang and Aceh Unilever is a member of the Ethical beyond the full control of individual Timur district governments in Indonesia Tea Partnership (ETP), a not-for-profit companies. Jurisdictional and landscape to accelerate efforts to achieve a organisation which brings together the approaches offer the potential to successful production–protection– tea industry with development partners, accelerate and scale up sustainable inclusion model and Verified Sourcing NGOs and governments to improve commodity production initiatives, to Area readiness pilot. With various the lives of tea workers, farmers and promote conservation and restoration local partners, the project will include the environment in which they live and activities, and to be more inclusive of the development of a deforestation work. This helps us make a difference smallholder producers. We are currently monitoring tool for the local government at scale: to take one example, our working on five landscape approaches. and local stakeholders, an RSPO partnership with ETP on housing and We highlight two in Indonesia below, certification programme for independent sanitation in Assam, India, aims to reach and discuss a third in the Land Rights smallholder farmers and forest a total population of 9,800. We also section of this report. restoration with an agroforestry-based chair the Living Wage Working Group. We will extend the social impact work livelihood model. In Bangladesh, we are also working we’re doing in South East Asia to Latin with UN Women and UNDP on a needs In 2021, the project will include the America, particularly focusing on women assessment of living and working creation of a database of land and in the palm oil sector. conditions in six tea gardens, in order to labour conflict related to agriculture make improvements across the industry. development in the district of Aceh North Sumatra, Indonesia Tamiang, with a focus on large-scale In 2020, following a review, Unilever (with Conservation International) oil palm development. This will be decided that much of our tea business We are partnering with Conservation available to the local government and could best achieve its potential as a International (CI) to advance local stakeholders, including civil society separate entity, and given its business sustainable palm oil production through organisations and the private sector, structure, we would retain our tea strengthening a multi-stakeholder with the aim of improving land conflict business in India and Indonesia. We initiative known as the Coalition for resolutions in the oil palm sector. remain committed to completing our Sustainable Livelihoods (CSL). The existing programmes and carrying CSL supports economic development, Tea out the separation of the tea business poverty reduction and natural resource responsibly. management in North Sumatra and Aceh. Living and working conditions in the tea Within this, we are helping form a industry remain a challenge. Around working group to strengthen the the world, we’re working on a range of integration of labour and social sustainable tea programmes that aim considerations into CSL’s work. The to create better lives for people in the group will work to understand what tea supply chain. Our work is focused labour and/or land rights issues local on wages, housing and sanitation, and communities and farmers are facing and nutrition – and improving safety for develop solutions together with local women and girls in the tea industry as actors and government. a priority. Women working in the industry are too often subjected to violence and
54 UNILEVER HUMAN RIGHTS REPORT 2020 Kericho Tea Plantation, Kenya.
Oil palm fruit, Aceh, Indonesia.
UNILEVER HUMAN RIGHTS REPORT 2020 55 Salt pan workers, India.
Cocoa pods, Côte d’Ivoire.
56 UNILEVER HUMAN RIGHTS REPORT 2020 Cocoa source from. We are working with our We also support initiatives that help suppliers Barry Callebaut and Cargill extraction workers on the ground. Our In line with our USLP commitment to on these programmes, alongside Lifebuoy brand, for example, partnered source 100% of our cocoa sustainably, NGOs CARE International and 100 with Solidaridad and our suppliers in as at 2019, 89% of all our cocoa was WEEKS. In November 2020, our brand 2019 on a handwashing campaign in sourced sustainably, up from 82% in 2018. Ben & Jerry’s committed to paying Kutch, India, reaching approximately farmers a third-party benchmarked 1,200 workers. And in 2020, again in Working with our partners we are income reference price for their cocoa partnership with suppliers, we launched increasing our social impact in cocoa beans in West Africa, with 5,000 cocoa mobile health clinics for mines, through programmes that complement farmers in Côte d’Ivoire receiving the addressing the fact that workers in the work of certification and bring us additional premium, which, coupled remote mines sometimes lack access to closer to the people who grow our with productivity projects, will support healthcare and providing preventative ingredients. To better address issues at closing the gap towards a living income. check-ups and vaccinations. We have an industry level, we became members Supporting Our Cocoa Farmers to Build covered 26 villages, reaching 11,317 of the World Cocoa Foundation, Better Futures. beneficiaries including salt pan workers, International Cocoa Initiative and the mine workers and their families through Cocoa & Forests Initiative in 2018. By these mobile clinics. We plan to expand 2025, we aim to have reached at least Non-renewables our current focus from the north-west to a third of the cocoa farmers in our the south of India. direct sourcing with tailored impact Many of the raw materials we use each programmes that: year to make our products are classified as non-renewable. Around 6 million Human rights defenders – close the gap to a living income tonnes of these originate from minerals – eliminate child labour or metals extracted from the earth. Human rights defenders (HRDs) champion the rights of others such as – halt deforestation and they The extraction and processing of the rights of workers and individuals, often champion forest protection minerals can have negative human often in commodity supply chains. They and conservation. rights impacts. In 2015, we co-created champion labour rights, improvements the Code for Responsible Extraction We know that child labour exists within in working conditions, land rights, (CORE), working in close collaboration the cocoa sector, so we’re developing freedom of association and collective with the NGO Solidaridad, suppliers and impact programmes with our partners, bargaining, and the rights of indigenous the industry. certifiers and suppliers to ensure that peoples. In many places they face we source from cocoa co-operatives CORE is one of the first independently persecution and violence. that have monitoring and remediation auditable global codes for minerals at Businesses are actively stepping up systems in place that assess and address the extraction site. Its goal is to drive efforts in support of human rights child labour cases. By 2023, all the co- greater traceability and transparency, defenders around the world. In 2019, we operatives we directly source from will push for higher standards and minimise signed a declaration led by the B-Team have such a system in place. negative environmental impact. It also in support of human rights defenders aims to protect the health, safety and Women’s economic empowerment is and civic freedoms. We will continue rights of the millions of workers who critical for child labour prevention, to work with multiple stakeholders to depend on these industries for their so we aim to reach 2,000 women in seek the effective implementation of livelihoods. cocoa households through training and protections, and speak up for those who income diversification opportunities. So far, CORE certification has been put their lives in danger in support of We are also committed to increasing achieved at 45 extraction sites in human rights. We will publish a separate the number of village savings and loans India and seven in China, reaching policy on human rights defenders in associations in the communities we 4,895 workers. early 2021.
UNILEVER HUMAN RIGHTS REPORT 2020 57 Traceability and Our Responsible Sourcing Policy sets each country’s value chain, building transparency out our expectations and commitment on existing work and partnerships to conduct business with integrity, where relevant. openness and respect for universal Through consolidation of our supply human rights. That means it covers chain we are improving traceability. some of the key issues faced by waste Greater traceability, transparency “Our strategy is to collectors today, such as health and and scrutiny of our commodity supply safety, fair wages and working age. achieve ‘Procurement chains help us work more effectively To drive change on the ground, however, with Purpose’, therefore with partners and suppliers to address we need a tailored approach to waste human rights issues and bring about respecting and collectors and other workers involved positive change. These are the reasons promoting human rights, in waste supply chains, based on who why we publish our supplier lists. they are and the particular challenges inclusion, equality and In 2018, we led the way in disclosing they face, which can include a lack improving livelihoods is a full list of our palm oil suppliers of financial skills and exclusion from absolutely fundamental on our website. We also publish a list social security schemes. This targeted to meeting this ambition. of suspended palm oil suppliers. For approach is one we have taken with more details of our work in this area, workers in the extractive and transport It’s our responsibility to see Partnership and technology-led sectors, and in this case is part of work in partnership with traceability. holistically addressing human rights suppliers, peers and impacts in the plastic value chain. In 2019, we published our Tea supplier industry bodies so that list, supported by an interactive map, Following interviews with relevant everyone connected to which shows people where their tea internal stakeholders and key external our value chain is comes from. And in March 2020 we experts, we created an internal published a list of our cocoa suppliers cross-functional group, which will treated with respect, (Tiers 1 and 2). develop a ‘People behind the plastic’ dignity and given equal global framework. opportunity. We must Plastic The framework will start with also continue to improve traceability and transparency. That transparency and Our business wants to lead the way means discovering the ‘who, where on the shift to ‘less plastic’, ‘no plastic’ and what’ of our plastic value chain: accountability, changing and plastic recycling. But we know that who is involved, where the plastic the way we partner to there are potential social and human comes from and what are the human drive positive and rights impacts, as plastic is frequently rights risks and opportunities. There is lasting change.” collected by waste collectors in the currently a lack of both economic and informal economy, often working under social data, for example, how much dirty and dangerous conditions and waste pickers are paid and an in-depth Dave Ingram without earning adequate wages or understanding of the issues they face. Chief Procurement Officer, receiving social benefits. Once we have this information, we can Unilever develop a typology of stakeholders These individuals and their communities and rights-holders, and the economics, are an integral part of the plastics risks and opportunities on which we solution, because without them we will can build models of intervention. not be able to scale up our collection These models can then be adapted efforts to meet our goals for a waste- and implemented locally, based on free world.
58 UNILEVER HUMAN RIGHTS REPORT 2020 Oil palm grove at the edge of the rainforest.
Plastic waste collector, Thailand.
UNILEVERUNILEVER HUMAN HUMAN RIGHTS RIGHTS REPORT REPORT 2020 2020 59 Brands with purpose Walking the talk on ‘purposeful brands’
One of our founding companies, Lever Brothers, created Sunlight Soap with an “I have always been passionate explicit purpose: ‘to make cleanliness commonplace’. about human rights. In my role at Unilever, I know that brand We want to use our brands to have a positive social impact into the future. performance by itself is no longer Leveraging the power of our purposeful enough. Consumers, citizens, brands – some of which reach billions of indeed people are looking for people every day – is a core part of our more. Today, brands need both Compass ambition. performance and genuine purpose to thrive.”
Hanneke Faber President, Foods and Refreshment, Unilever
60 UNILEVER HUMAN RIGHTS REPORT 2020 UNILEVER HUMAN RIGHTS REPORT 2020 61 Brands in action Putting purpose into action
Ben & Jerry’s: – worker-authored labour standards Joining Milk – worker-to-worker education “We must take responsibility for the with Dignity – independent monitoring, complaint resolution, and market consequences entirety of our impact in the world. Purpose: social justice and – premium paid by buyer to farmers and farmworkers ‘Externalities’ are a climate change – legally binding agreement. dangerous fiction. Too many farmworkers across the Business is the most US face poverty-level wages, long Thus far, the Milk with Dignity premiums, work hours, and inhumane labour paid by Ben & Jerry’s to its participating powerful force in and housing conditions. In 2020, farmers, have enabled over $1million society – and leaders Ben & Jerry’s celebrated its third to be invested directly in increasing must step directly into farmworker wages and bonuses, as anniversary of becoming the first the intersections of company to join the pioneering Milk well as improving labour and housing with Dignity Programme. Founded conditions. social & climate justice by Migrant Justice, Milk with Dignity and commit to being epitomises Worker-Social Responsibility part of the solutions.” which comprises:
Matthew McCarthy CEO, Ben & Jerry’s
62 UNILEVER HUMAN RIGHTS REPORT 2020 Dove: Creating a The CROWN Act was first passed into law on 3 July 2019 in California, and respectful and open despite the limitations of COVID-19, the world for natural hair Crown Act is now law in seven states. The CROWN Act passed the US House of (CROWN) Representatives just nine months after it was introduced.
Purpose: to make universally The Coalition now includes strategic accessible to every woman a alliances with over 70 community and positive experience of beauty advocacy organisations that work to advance racial equity and is pressing on Dove supports natural beauty and until hair discrimination is illegal in all opposes discrimination – so in 2019, it US states: people can show support and put its purpose into action by helping sign their petition at TheCrownAct.com. make hair discrimination illegal.
The CROWN Coalition, a national alliance in the US, created by founding members Dove, National Urban League, “Brands with purpose Color Of Change and Western Center on grow – the evidence is Law & Poverty, set out to create a more clear and compelling. equitable and inclusive experience for Purposeful brands are Black people by advancing legislation against hair discrimination, known a force for good, in as the CROWN Act. The Act ensures helping to address key protection against discrimination based social issues that our on race-based hairstyles by extending consumers care about statutory protection to hair texture and protective styles such as and driving positive braids, locs, twists and impact throughout knots in the workplace their supply chains.” and public schools.
Sunny Jain President, Beauty and Personal Care, Unilever
UNILEVER HUMAN RIGHTS REPORT 2020 63 Bango: helping 10,500 Sir Kensington’s: making soy bean farmers sustainability targets mainstream Purpose: every Bango supports farmer training Purpose: we believe food is In Indonesia, we have worked with the most powerful human farmers to develop a high-quality connector. To protect that sustainable supply of black soy bean superpower, we work to for Bango, our market-leading sweet soy sauce brand, while also supporting defend the dignity of food. training and women’s empowerment. Businesses need to link sustainability In 2000, we started working with Gadjah performance authentically with their Mada University to engage local farmers people’s everyday work. In 2020, our – beginning with just 12. We provided Sir Kensington’s brand, which makes technical assistance and financing to premium condiments and dressings, help them improve their productivity set itself a range of targets focused on and boost their incomes from black soy sustainable agriculture and responsible beans. We run education programmes packaging – and directly aligned them that give farmers planting advice, with performance incentives for 100% teach them how to increase yields, and of its team. A certified B Corporation, improve quality and efficiency. We’ve Sir Kensington’s set out how every now reached over 10,500 smallholder leader and individual must consider farmers, including through a women’s environmental and social responsibility empowerment programme that has as part of their jobs with a public target: helped more than 3,000 women farmers. “Link performance incentives for 100% of team members to sustainability and diversity, equity, and inclusion (DEI) indicators by the end of 2020.”
The priorities for Sir Kensington’s are guided by its Director of Impact Strategy and its six-member Integrity Board, which includes external sustainability experts and Unilever business partners. The Integrity Board was founded in 2019 to build better governance structures around impact, help champion Sir Kensington’s initiatives and ensure rigorous measurement for its sustainability targets.
64 UNILEVER HUMAN RIGHTS REPORT 2020 Joko Tea: (People Opposing Women Abuse) to make a significant impact on ending the #EndDomesticSilence silence surrounding domestic violence. Founded on the link between tea and Purpose: to leverage the conversations, Joko has produced branded red and purple packs to drive strength of Joko tea to awareness, and donates R1 to POWA harness the power of from every Joko 100s pack sold to create conversations to help reduce more safe spaces. domestic violence and the In Nov 2020, Joko announced its support stigma faced by survivors. for the 16 days of activism campaign to urge government to accelerate the In South Africa, one in five women has passing of three pieces of proposed experienced physical violence, and legislation to protect women and 60,000 women and children are victims children from domestic violence. Joko’s of domestic violence. website provides essential information on domestic violence and advice Our Joko brand is committed to on how to either get or to give help: supporting women in abusive www joko.co.za. relationships by helping create safe spaces for women to be heard. Its We describe our work on Harassment in #EndDomesticSilence campaign is an Salient Issues. initiative in partnership with POWA
UNILEVER HUMAN RIGHTS REPORT 2020 65 Responsible and socially sustainable business
Our Our policy Our governance framework Responsible Sourcing Policy
Reviewing Building risk, raising capacity within concerns and and beyond access to Unilever remedy
66 UNILEVER HUMAN RIGHTS PROGRESS REPORT 2020 Responsible business Our governance
We’ve embedded human rights into our organisational structure, and we continue to listen to the advice, concerns and criticism of people outside Unilever.
Oversight by the Board and critical and endemic issues to move from Our Sustainable Sourcing Advisory business leaders good to best practice. Board provides independent advice and judgement and helps strengthen The Procurement Business Integrity policy-making within Unilever. See Our Our human rights governance is led Committee (PBIC) is a tripartite internal approach to sustainable sourcing. from the top, overseen by our CEO and body comprising representatives from supported by our Unilever Leadership Supply Chain (including Procurement), Executive (ULE), the most senior leaders Business Integrity and Human Resources. of our business. As well as providing It provides guidance and direction on “It is essential to our strategic direction, the ULE is consulted difficult and complex situations where business success that on human rights issues when the severity remediation, escalation and sanctions of an actual or potential impact is are required with respect to sourcing we conduct every part high, where a business-critical decision in line with our RSP. The PBIC is the of our operations with needs to be taken, or where substantial final arbiter for these cases and is respect for human financial investment may be needed to responsible for upholding the principles rights and expect our address an impact. Additional Board- that govern the implementation of level oversight is provided by the the RSP by the Procurement function, business partners to Corporate Responsibility Committee. and for ensuring a consistent, fair and do the same.” appropriate approach. At a strategic and operational level, Unilever’s human rights work is led by the Global Vice President, Integrated Seeking expert external Ritva Sotamaa Chief Legal Officer Social Sustainability. Monitoring third- insights party compliance to the mandatory Unilever standards of our Responsible Sourcing Our Sustainability Advisory Council Policy (RSP) is now delivered by our is a key channel for gathering external Legal – Business Integrity function. Our insight and advice from independent Integrated Social Sustainability team specialists. It is chaired by our Chief focuses on addressing the root causes Sustainability Officer, and among of endemic business and human rights its distinguished expert members issues and social impact programmes, is Professor John Ruggie, Harvard and on working with our suppliers on Kennedy School of Government, who joined in 2019.
UNILEVER HUMAN RIGHTS REPORT 2020 67 Responsible business Our policy framework
Clear policies help us set consistent expectations and standards, for ourselves and for our partners. They help drive the positive behaviour that we expect from everyone in our value chain, and they underpin our positive social impact, assigning clear responsibility and accountability.
We keep our policy and guidance framework under review and strengthen it where necessary. Our full policy framework and whose rights these address is described in our first Human Rights Report.
Key Policies (supported by commodity or issues specific policies)
Respect,Code of ModernRespect, slavery New guidance Responsible ResponsibleHuman Rights dignityBusiness and fair andDignity human and Fair on mergers and Sourcing Policy BusinessPolicy treatmentPrinciples and code traffickingTreatment acquisitions (RSP) PartnerStatement Policy policyCode Policies statementCode Policy (RBPP)
In 2020 we updated In 2020 we updated our In 2017 we created For all Unilever suppliers. Our Human Rights Policy our Code of Business Respect, Dignity and Fair guidance to help when Created in 2014. Statement was createed Principles & Code Policies. Treatment Code Policy engaging in potential in 2015 and describes our with wording that we will wording stating that mergers, acquisitions commitment to respect work with our partners employees must have or joint ventures (pre- universal principles, our to raise standards so obtained employment transaction, during due diligence processes that their employees are with Unilever without due diligence, contract Responsible and our governance. paid a living wage and having paid a recruitment negotiation and post- Business are not subject to forced, fee or related cost directly acquisition/joint venture compulsory, trafficked or indirectly, as guided by governance). Partner Policy or child labour. We also the International Labour (RBPP) recognised privacy as a Organization standards. human right with respect to how we collect and use data.
For all Unilever business partners. Created in 2016.
68 UNILEVER HUMAN RIGHTS REPORT 2020 Responsible business Our Responsible Sourcing Policy
Our Responsible Sourcing Policy (RSP) and Responsible Business Partner Policy (RBPP), have been the keystones of our work to do business responsibly and drive up standards.
Our RSP journey 2014 2017 2019 2020
We launched our RSP In 2017 we re-launched We introduced stronger We started to better to bring our policy and our RSP, having simplified due diligence screening integrate our spend and processes into one some of the processes relating to anti-bribery compliance systems document. It included a to onboard suppliers and corruption and towards enforcing our ladder for our suppliers into our compliance formalised the internal requirements of sourcing to move from mandatory database and expanded processes to review and only from compliant requirements to good and the programme to cover address findings. We suppliers (“Responsible best practices. all our suppliers (i.e. both continue to track our Sourcing Policy before production and service total compliance levels, Purchase Order”). Our suppliers). and at the end of 2019 we 2020 compliance figure stood at approximately will be published in 70% of spend from our Q1 2021. In 2017 and 2018 we approximately 60,000 expanded our audit suppliers being compliant verification to use with our Responsible mutually recognised Sourcing Policy. industry standards to ease audit fatigue and allow suppliers to focus on the remediation of identified issues.
UNILEVER RESP NSI LE S URCIN P LIC WORKING IN PARTNERSHIP WITH OUR SUPPLIERS
2017 | ENGLISH VERSION
UNILEVER HUMAN RIGHTS REPORT 2020 69 Our RSP consists of 12 fundamental Since its launch, the RSP has been a have policies or programmes that align principles covering business and driver of change inside and outside with our RSP, then they are free to adopt human rights, and states mandatory Unilever. We have worked with suppliers the RSP as a starting point, and we aim requirements for each fundamental and others to continue to develop the to support them through capability principle which suppliers must meet RSP, and it is now entering a new period building. Suppliers who are unwilling in order to maintain a business of revision to incorporate our next level or unable to comply or progress with relationship with Unilever. Our ambition of ambition. We will be moving away Responsible Sourcing requirements are is for our suppliers to progress from from asking suppliers to ‘sign up’ to reviewed by the Procurement Business mandatory to good and to best practice, our policy and instead asking them Integrity Code Committee for further and our RSP provides guidelines they can to confirm they meet the mandatory work or eventual delisting. follow on this journey. We are committed requirements with their own policies and We’ve refreshed the RSP to reflect one to applying our RSP to our entire supply practices. This reflects the fact that many of the key lessons we’ve learnt: if we chain and to being able to govern the suppliers have comparable programmes, want to change behaviour in real ways, requirement that we are sourcing only and shifts the emphasis from basic we need to move as far as possible through compliant suppliers. To this end, compliance to a deeper understanding from a tick-box approach to one which we have integrated our various spend of what Unilever, as a customer, is trying puts preventative mechanisms in place. systems with our compliance database to achieve. A supplier with their own While we’ve been clear that we should – the Unilever Supplier Qualification policies and practices is more likely to not source from suppliers that were not System (USQS) govern and implement them throughout compliant with our RSP, in order to drive their organisation. If a supplier does not
The 12 Fundamental Principles of our Responsible Sourcing Policy
Lawful Terms of Equal Voluntary 1 business 2 employment 3 treatment 4 work with integrity Documented & with respect No forced or Anti-bribery & freely agreed & dignity slave labour corruption contracts No discrimination
5 Appropriate 6 Fair wages 7 Working 8 Freedom of age Ensuring wages, hours association No child labour overtime pay & Controlling all Trade unions benefits working hours & & collective rest days bargaining
Health & Fair Land Sustainability 9 safety 10 procedures 11 rights 12 & environment H&S mindset & remedies Respecting land Protect & preserve & practices Grievance titles & user rights the environment mechanisms to land
70 UNILEVER HUMAN RIGHTS REPORT 2020 change, we adjusted our systems to require a commitment to RSP compliance Our Responsible Business Partner Policy as a condition for transacting business. Our RBPP shares the principles of the As we continue to develop our RSP, we RSP, and applies to distributors and will advance our broader ambitions other partners in our value chain that RESP NSI LE USINESS PAR NER P LIC in areas such as the living wage, the are not covered by the RSP. environment, carbon, plastics and By the end of 2020, approximately animal testing, giving suppliers insight 2,000 employees were trained on our into our ambitions to prepare for future Responsible Business Partner Policy, requirements. We will go deeper into and 12,000 distributors were risk our supply chain, where human rights assessed. Further due diligence and risks are often less visible or more actions were carried out where our prevalent, including where we have required standards were not met. a contract but are not invoiced, ie Resolution of these issues involves where we have a relationship but the agreeing a mitigation plan with invoicing goes through our Tier 1 or the distributors and working jointly where the Tier 1 supplier sub-contracts to upskill and drive an improved and work for Unilever is carried out by understanding and approach on a Tier 2 supplier. ethical and responsible behaviours. In December 2020 we launched our new During 2020, we extended the RBPP Partner with Purpose strategy. This programme to cover direct customers will see us take more of a partnership and recipients of funding (e.g. NGOs). approach with our suppliers as we These programmess are being collaborate with transparency and trust deployed according to a phased and on our responsible sourcing ambitions. risk-based approach. Our aim is that we work together with suppliers to contribute to a fairer and more socially inclusive world, fight Chain Initiative (SSCI), we also work climate change, regenerate nature and Mutual recognition with others to set an industry baseline preserve resources. We will also review through a benchmark process for third- our own purchasing practices, including When we launched the RSP in 2014, party sourcing standards in order to a review of supplier feedback on the we created a Unilever-specific audit improve the quality of the management relationship with our buyers as part of process because, at the time, other audit system of these standards as well as the regular score-cards. processes did not cover all elements of our RSP. By 2017 the SMETA audit work of auditors, including aligning with processes had developed enough to the Association of Professional Social enable us to also accept SMETA audits. Compliance Auditors (APSCA). This mutual recognition helps lessen In 2018, we incorporated the use of the assessment burden on suppliers, EcoVadis assessments for suppliers reduce duplication and create common of services, widening our verification expectations through comparing methodologies to make them more and converging our approaches. This appropriate to these suppliers. has been a key area of our work with AIM-Progress. Through the Consumer Goods Forum Sustainable Supply
UNILEVER HUMAN RIGHTS REPORT 2020 71 Responsible business Reviewing risk, raising concerns and access to remedy
We continue to look for ways to improve how we review risk to make sure we can identify any trends, hot spots and root causes and remediate issues effectively.
This process is built on the foundation of also consider historic Code breaches, trusted, robust mechanisms for raising training completion statistics, local and addressing concerns. Grievance activations to drive awareness and mechanisms play a critical role in visibility, and the procedures in place to opening channels for dialogue, problem respond to issues. solving, investigation and, when We assess risk geographically, for both required, providing remedy. They enable our own operations and extended workers and other rights-holders to raise supply chain. This means we can focus complaints freely and obtain effective on our highest-risk operations and work and transparent resolutions. They can with leadership and Business Integrity also help identify country-specific committees to drive awareness, enable solutions and pre-emptive action. mandatory training and review internal structures and procedures. Reviewing risk Every two years we do operational country self-assessments of adherence Internal risk to our code policies. These incorporate Our risk assessments take many both external indexes and internal factors into account. These include data such as training records and external country-level human rights risk historic code cases, to identify high-risk indicators, such as those provided by the countries with a potentially increased risk organisation Verisk Maplecroft, as chance of a code breach. These results well as the views of the local leadership are analysed and any necessary action team, our Business Integrity committees, plans drawn up and deployed. and internal functional experts. They
72 UNILEVER HUMAN RIGHTS REPORT 2020 issues had been identified as requiring behaviour by the customer. We perform “Unilever’s Code of action, or to request support to assess further due diligence on higher-risk and close potential gaps. From our 329 customers, validating the information Business Principles and factories, approximately 73 site leaders they provide and doing broader research Code Policies are either reported that issues had been from a wider range of sources including underpinned by our identified and were being remediated, NGOs and action group websites. Values. They provide a or requested assistance from experts to Support to remediate any negative resolve. Issues mainly concerned working human rights impacts is provided by the framework of support to hours, recruitment fees, and terms Integrated Social Sustainability team. our employees so that and conditions for temporary workers. they can work in a safe, Remediation included new shift patterns Human rights impact assessments and fee reimbursement. healthy and thriving Our audit processes are supplemented by human rights impact assessments environment without Supply and value chain risk (HRIAs). HRIAs are carried out by fear of retaliation if they We review our risk indices each year independent expert organisations who raise concerns. Having a and consider industry, commodity, visit a representative sample of our own culture of integrity supplier, geography and specific risk operations, our suppliers and other strengthens Unilever’s issues. As a business, we are evolving business partners. Engagement with our risk assessments to broaden the workers and other rights-holders are an sustainable growth and geographies that are considered as integral element of HRIAs. works to raise standards high risk, and balance this with a We have carried out HRIAs in Myanmar, more focused assessment relating to in the communities in Guatemala, Honduras, Kenya, Turkey the risk of particular industries. This which we operate.” and Thailand. means we will assess risk through distinct lenses rather than providing a What our HRIAs have identified Kim Morgan-Verlaque broader, average risk. We will evaluate Chief Business Integrity Officer, risk with regard to three areas: legal Issues identified included: excessive Unilever and business integrity risk; human working hours and inadequate periods rights; and environment and planet. of rest; discrimination (including relating Where we outsource our manufacturing to pregnancy); constraints on the production to third parties, we will ability to associate freely and bargain Assessing our own factories require independent onsite audit collectively; recruitment fees; lack of verification of their compliance with our minimum hiring age policies; lack of Building on our existing risk assessment RSP standards, regardless of what they contracts; no overtime payments; lack and tracking process for factories, in are manufacturing or in which country of grievance mechanisms; lack of 2019 we assessed potential human they operate. social security payments; high levels rights issues through a site pledge of contract work leading to an inability signed by the leaders of each of The current scope of the RBPP includes for some workers to access their rights; our factories. The pledge asked site distributors, joint ventures, franchises, and a disproportionately low number of leaders to confirm that they had read, importers, agents and direct customers. women workers. understood and implemented all Our risk profiling considers Maplecroft relevant Unilever policies, standards and country ratings, which incorporate We create country-specific, time-bound commitments relating to human rights, measures related to human rights, Corrective Action Plans to address the including relevant Code policies and RSP internal relationship manager identified issues, assigning responsibility principles, and provided an opportunity knowledge, Dow Jones and desktop for implementation and progress for site leaders to either report that screening identification of unethical measurement at the local level.
UNILEVER HUMAN RIGHTS REPORT 2020 73 Raising concerns and access provider for our hotline and online to remedy reporting process in an effort to make Our palm oil grievance whistle-blowing and the reporting mechanism of issues easier, including through Investigating Code breaches mobile channels. We routinely provide Our grievance mechanism for palm Our Code procedure enables individuals training and organise global ‘speak oil is part of a grievance eco-system to raise concerns about our Respect, up’ awareness programmes on how which should start with workers Dignity and Fair Treatment (RDFT) Code concerns can be raised. being able to access remedy Policy, or related policies, following an directly with their employer. established process led by our Chief A speaking-up culture If that fails and the supplier is Business Integrity Officer. a certified agricultural supplier We believe in a speaking-up culture then, this should also provide a Under our Code procedures, our market- which is based on safeguarding the route for remedy. Our own palm based Business Integrity Committees rights of the individual who has raised oil grievance mechanisms, which oversee investigations of all potential the concern, and on ensuring that a we have strengthened, can be breaches of our Code and Code Policies, transparent and predictable process accessed by third parties in our except where senior executives are which is fair to all those involved value chain or those who support involved. In such cases, our Chief is followed. or represent them. We engage Legal Officer and Chief Business Disciplinary consequences of where other options have not Integrity Officer oversee investigations substantiated Code breaches range been successful. and a global code policy committee from verbal warnings to termination determines any sanctions regardless of We publish details of our Palm oil by dismissal. where the executives are located. The grievance procedure, including how ability of individuals to raise human We publish details on both opened to lodge a Palm oil grievance, and rights-related issues is underpinned by and substantiated Code cases by our Palm oil grievance tracker. our Respect, Dignity and Fair Treatment relevant theme. See more on our work in palm oil. Code Policy (RDFT). In 2019, we investigated and closed 591 We offer both internal and external cases related to our Respect, Dignity channels for raising concerns and Fair Treatment Code Policy (RDFT) confidentially via our 24/7 hotline or received through our hotline and online our online reporting tool. We encourage reporting systems. Of these, 283 were individuals and communities to raise confirmed as breaches. In 2019, bullying, any concerns with us directly. On harassment and performance pressure occasions where they feel they aren’t were our highest reported salient issues able to do this, we would never seek under RDFT, with a high number of to impede access to state-based reported breaches coming from Latin judicial or non-judicial mechanisms America, North America and East Africa. for those who feel human rights have We analyse our case data including been impacted, and we aim to co- both organisational and behavioural operate with competent authorities in drivers at a geography level, carrying investigating or adjudicating alleged out targeted regular awareness-raising human rights impacts. sessions and training. If cases relating to third parties that don’t involve a Unilever We have continued to enhance employee are raised, after an initial our reporting since 2017, when we review by Business Integrity Officers they transitioned to a new third-party service
74 UNILEVER HUMAN RIGHTS REPORT 2020 are passed on to the relevant expertise team to investigate, liaise with the third Getting closer to workers through interviews party and resolve. and technology
In 2019, we continued to develop and In 2018 we began working with the introduce an enhanced vetting publish new guidance and training International Transport Workers’ process for labour agencies, initially for our Business Integrity Officers Federation (ITF), the International focusing on those providing workers on classifying and handling RDFT Union of Food Workers (IUF) and FNV- to our manufacturing sites. This Code matters and Human Resources Stichting VNB to tackle exploitation included specific Self-Assessment grievances. Since the launch of the RDFT in the trucking industry. Alongside Questionnaires (SAQs), scoring Code policy, there has been a significant this work, we started working with systems and audit protocols, and a influx of cases that are initially classified ELEVATE, and developed a new worker survey that can be accessed as RDFT. Most of these cases have been audit protocol that reflected the by using a mobile phone by scanning found to be unsubstantiated, and many complex structure of the industry a QR Code. We hope programmes like of them turn out not to raise Code Policy and included interviewing workers these can help drive industry-wide concerns. In 2019, we started collecting using mobile technology. We also approaches, open to others to join so both behavioural and organisational started to work with ELEVATE to that we can create change at scale. drivers to provide greater insights and enable root cause solutions to be explored. We believe it is important to have an anonymous forum for raising general concerns about inappropriate conduct, regardless of whether the behaviour rises to the level of a Code violation. For matters that amount to Human Resources grievances, rather than RDFT Code complaints, however, it is more effective to have a Human Resources expert immediately investigate and manage the concerns.
While we require our suppliers to provide their workers with their own robust internal procedures to raise issues, our Code support line is also open to third parties. That means our suppliers and distributors and their employees can contact us if they’re concerned about any breaches (by us or within their own operations) of our Code, RSP or RBPP. If cases relating to third parties (rather than Unilever employees) are raised, these follow the RSP/RBPP process.
We regularly review the effectiveness of our grievance programme to ensure it is trusted and effective and this includes
UNILEVER HUMAN RIGHTS REPORT 2020 75 Exploring new ways to hear from workers through social media
Our social impact and human currently use to understand what workers were posting privately, as is rights programme is based on consumers think and feel – through most likely the case if they don’t feel understanding the true working and social media posts. We haven’t found safe or empowered to speak publicly living conditions of the workers in the answer yet – but we’ve explored about poor working conditions or our immediate and extended supply some options. In 2018, for example, treatment. And those are the issues we chain. Audits, while important and we partnered with a social listening want to know about, so we can have necessary, can be more reactive than firm, and enlisted colleagues and a greater impact. proactive – and they’re not always the local human rights experts on the We believe in the power of technology best way to connect with workers. ground. We found that social listening for good, so we’ll continue to explore technology works well in picking We work in a number of ways to appropriate uses of social listening up public social media posts that overcome this gap, including using technology – and technologies out clearly identify a particular issue, and anonymous surveys and working there to help us better understand we could hear workers’ sentiments with suppliers to improve grievance the conditions of the workers in our directly – but the conversations were mechanisms. But we’re convinced value chain. about issues we already knew about. there’s more we can do, including The technology didn’t help when through technology of the kind brands
76 UNILEVER HUMAN RIGHTS REPORT 2020 regular testing of our hotlines and Reaching out to more workers on We also recognise that grievance connectivity to interpreter services to the ground mechanisms are only used when a ensure they are operational. negative human rights impact has We have learnt that it is vitally important potentially happened, so we will We biennially undertake operational to understand the needs of different continually strengthen our ongoing due country self-assessments related to the groups of people and how best to reach diligence to pro-actively identify issues. adherence to our Code policies which them. For example, it is very difficult incorporate both external indexes and physically to reach some remote internal data such as training records communities in order to understand Tracking and historic code cases, to identify the situation on the ground and any Tracking and monitoring issues are high-risk countries with a potentially negative human rights impacts. One a vital part of measuring progress in increased chance of a Code breach. of the areas we are exploring is the remediation and addressing grievances. In line with our Business Integrity idea of ‘ground-truthing’ – collecting Within our own operations we track governance, these results are analysed data directly from the field as a way to reported issues through Code breaches, and any necessary action plans drawn independently verify information, using grievances reporting and engagement up and deployed. Corporate Audit different ways of engagement. We are with worker representatives, supported assesses our operations relating also increasing our use of technology to by regular training and monitoring. to awareness of Code Policies and connect with workers to address risks of effective functioning of Code breach abuse and exploitation. We follow the For our extended supply chain, we work reporting mechanisms. Breaches WEST principles for engaging workers with our RSP champions to monitor result in further site assessments through technology. progress against targets and review and remediation. suppliers’ registration and compliance The need to be pro-active status and action plans. We’ve been working on letting people outside our business, who are working We know that the third pillar of the with our third parties, know how to raise UN Guiding Principles on Business and grievances through our systems, so that Human Rights – access to remedy – is “As reflected in our they can feel confident to raise concerns. one where we still need to make much Code of Business More than 100 cases were raised in 2019 more progress. We have found that some Principles, personal data by employees speaking up against their grievance mechanisms are less effective own company. than we previously believed. We need of all individuals we more engagement in the design of our interact with is treated in Strengthening our grievance grievance mechanisms from workers, accordance with our mechanisms and we need to be clearer about process values, applicable laws and timelines. We have sought to strengthen our and above all with grievance mechanisms and the ways In our extended value chain, we need respect for Privacy as in which people can gain access to to continue to ensure that effective remedy. That includes through our Code grievance mechanisms are available to a human right. This procedures, and through our Code workers as issues are best dealt with at could not be more Support Line, which is open to third the local level. Where cases are complex relevant for trust in parties. Our RSP includes information on and sensitive, we have engaged support today’s environment.” grievance mechanisms, and our specific from independent experts, for example palm oil grievance mechanism is open to relating to cases of gender-based anyone in our palm oil value chain. violence on our Kericho tea plantation, Luis X Hernandez and sexual harassment in our extended Chief Privacy Officer, Unilever supply chain.
UNILEVER HUMAN RIGHTS REPORT 2020 77 Responsible business Building capability within and beyond Unilever
Capability building within Unilever and throughout our value chain is a critical element of embedding human rights. That capability building needs to reach businesses, but it is also vital it reaches workers, to make sure that they are aware of their rights.
Human rights training within (see factbox). We piloted this in the USA training for our suppliers on ethical our business and Singapore with the aim of rolling recruitment, with a focus on recruitment it out globally. We also ran various fees. The training gave insights into the training sessions related to our RSP and kinds of practices linked to potential We’ll only succeed in embedding human RBPP. A good example is our training forced labour conditions, and how rights across our business if everyone on how to respond to ‘red flags’ for responsible businesses are tackling understands how, and why, they matter our Procurement team and Business those challenges and driving best in their day-to-day jobs. That means Integrity Officers. Red flags are issues practice. In Turkey, we ran a webinar communicating on human rights to of concern relating to our suppliers or with representatives of Supply Chain, everyone in Unilever, as we do through other business partners following initial Procurement and Human Resources campaigns on our internal Yammer desktop assessments using various to discuss the findings of our Turkey site and other internal news sites and external databases. These include human rights impact assessment. We learning platforms. It also means issues around human rights, including will build on this through workshops creating and delivering training that labour rights. with our agricultural suppliers, brings the issues to life – and brings manufacturers and distributors to home exactly what our people need Training tailored for local issues increase awareness of key human to do, beginning with the question we rights issues and best practice. asked through internal videos led by our We run specific training to address CEO in 2013: “What does human rights risks that occur in individual regions Our RSP champions mean to you?” or countries. In 2019, for example, we commissioned ethical trade In 2017, we created RSP champions in In 2019, we developed a new five-stage management consultancy Impactt to our Procurement team. These champions training programme on business and run internal training in the United Arab are the first contact point for their human rights, using webinars, film and Emirates on the Employer Pays Principle colleagues, helping to strengthen face-to-face modules to provide both (EPP) for our Procurement and Human implementation of the RSP and our an overview and deep-dive training Resources teams, along with external ongoing due diligence. We run RSP into specific issues at regional level
78 UNILEVER HUMAN RIGHTS REPORT 2020 Our new five-part business and human rights training
In 2019, we worked with external experts to develop We created a short film introducing business and human a new training series to equip our people with an rights, and a web-based learning programme building essential understanding of human rights and apply this awareness about our salient human rights issues and knowledge within their roles. The training is case-based how we’re responding to them. We also developed a and regionallytailored, with a focus on salient issues and face-to-face training module which makes clear the emerging issues and on implementing a human rights relevance and significance of our policies to those who ‘lens’ in day-to-day work. need to implement them, and how everyday decisions such as purchasing practices and supplier choices can affect human rights.
The five parts:
100 series: 200 Series: 300 Series: 400 Series: 500 Series: Video Pre-recorded In-person Tailored Brands with webinar training training Purpose
Overview of Business Overview of Case-based and Deep dive into our Understanding our & Human Rights Unilever’s human regionally tailored salient human rights brand social footprint and the UN Guiding rights commitment, with a focus on issues Principles on Business policies and salient salient issues, and Human Rights human rights issues emerging issues, and implementing a human rights lens in day-to-day work
UNILEVER HUMAN RIGHTS REPORT 2020 79 champions’ calls and clinics to monitor manufacturers with common suppliers. Lessons learnt progress against targets, explain It works with suppliers to build their any process changes, and showcase capability, including through seminars We recognise that we need to strengthen best practices. and workshops. how we involve workers in the creation, We’ve sponsored a range of capability- as well as the completion, of training. Building capability among suppliers building events with suppliers around Internally, we have seen that engaging Working closely with suppliers, the world since 2010. Each covered our learning team as well as our alongside collaborations across responsible sourcing issues, including global communications is essential industries (see pages 17 and 87), helps recruiting and managing migrant for driving procurement awareness of raise understanding of human rights labour, anti-bribery and corruption, our Responsible Sourcing Policy and issues and ultimately drives standards. health and safety, contract labour salient human rights issues. We have management, wages and working hours. a solid plan and good engagement We work with suppliers in a number of AIM-Progress also facilitates responsible with internal stakeholders, which will ways, for example through workshops sourcing clinics where member make training structured, consistent to raise awareness and address specific companies can learn from each other and impactful. Externally, we will issues. In 2019 we ran workshops in and share best practices. continue to develop a more proactive Egypt and the UAE, providing training approach to suppliers’ training where we to our suppliers to help them gain a Since 2017 we have co-sponsored increasingly anticipate training needs. better understanding of our RSP and our training in countries including the UAE, This will include further collaboration due diligence process and to get their India, Malaysia, China and Brazil. We across industries and sectors to address feedback. For 2021, we are planning to were a founding member of the AIM- endemic issues. work with peer companies to develop Progress APAC hub which held a virtual a larger capabilty-building plan for responsible recruitment capacity- suppliers in the Gulf region that will building series in Malaysia in October cover responsible migrant workers 2020, and which included a kick-off recruitment and employment practices. webinar and three separate e-learning modules. The focus included information Working with suppliers through that migrant workers need to know, both AIM-Progress before departing for a job abroad and on arrival. AIM-Progress exists to enable and promote responsible sourcing practices and sustainable supply chains for fast-moving consumer goods (FMCG)
80 UNILEVER HUMAN RIGHTS REPORT 2020 “Working together, we can recover better. With strong solidarity, we can build a world that is more resilient, sustainable and just.”
MICHELLE BACHELET UN HIGH COMMISSIONER FOR HUMAN RIGHTS
UNILEVER HUMAN RIGHTS REPORT 2020 81 Appendix I Our journey
As we move forward, we will build on the significant milestones of our journey so far.
2010 2011 2012
UNILEVER SUSTAINABLE LIVING PLAN Small Actions. Big Difference. Launched the Unilever Endorsed the United Implemented a Unilever Sustainable Living Plan Nations Guiding specific scoring system for (USLP) Principles on Business non-conformances in our and Human Rights passed extended supply chain by the UN Human Rights Published the Unilever Council Sustainable Agriculture Code Established the Unilever Supplier Qualification Introduced a country- System (USQS) based risk matrix to evaluate suppliers Joined the LEAD group of UNGC Participants Joined the UN Global Compact (UNGC)
Joined AIM-Progress
82 UNILEVER HUMAN RIGH Our work on human rights has particular relevance to the goals highlighted above.
2013 2014 2015
Appointed a Global Expanded our social Published the first ENHANCING Vice President for ambition by creating the standalone human rights LIVELIHOODS, Social Impact Enhancing Livelihoods report using the UNGP ADVANCING pillar of our USLP, with reporting framework HUMAN goals for Fairness in the Devised a five-year Workplace, Opportunities RIGHTS strategy on human rights Launched our for Women, and Inclusive HUMAN RIGHTS REPORT 2015 Understanding Business Responsible Sourcing Began a review of our Audit (URSA) policy framework Launched the Responsible Sourcing Policy (RSP) RESP NSI LE USINESS Created the Framework PAR NER P LIC Implemented a Key for Fair Compensation Incident Process relating Created the Unilever to supplier audits Human Rights Policy Piloted the Responsible Statement Business Partner Policy Endorsed the Women’s (RBPP) Empowerment Principles Established the Procurement Code Changed the Procurement Agreed to Oxfam Committee Code Committee to the publishing a Procurement Business collaborative report Integrity Committee on labour standards in our Vietnam operations
UNILEVER HUMAN RIGHTS REPORT 2020 83 Appendix I: Our journey
2016 2017
Expanded the remit Launched RSP 2017 of the Social Impact MODERN team to Integrated No place for Published Human Rights SLAVERY & Social Sustainability, sexual harassmeNt Progress Report HUMAN moving from the Chief at uNilever Sustainability Office to TRAFFICKING
Supply Chain Created new internal STATEMENT UNILEVER RESP NSI LE S URCIN P LIC WORKING IN PARTNERSHIP guidance on human rights WITH OUR SUPPLIERS considerations in mergers 2017 | ENGLISH VERSION Founded the Leadership and acquisitions Group for Responsible Recruitment (LGRR) with UNILEVER peer companies Created internal land JANUARY 2017 rights policy LAND Signed Joint IUF/Unilever PRINCIPLES IMPLEMENTATION GUIDANCE: IMPLEMENTER LEVEL Commitment to fight HUMAN DECEMBER 2017 sexual harassment RIGHTS PROGRESS REPORT 2017
84 UNILEVER HUMAN RIGHTS REPORT 2020 2018 2019 2020 2021
Launched the Global Launched our Human Reorganised human Launched the new Women’s Safety Rights & Business training rights governance, with Unilever Compass and Framework in Rural series compliance moved to our Social Ambition Spaces with UN Women Legal – Business Integrity function. Integrated Joined the Business Social Sustainability Rolled out RSP to indirect for Inclusive Growth o (ISS) leads on capability o mp r an procurement suppliers Coalition se ie o s building/remediation/ p r A Global Women’s u it h Safety Framework endemic issues h t u in Rural Spaces: i ur r
p INFORMED BY EXPERIENCE IN THE TEA SECTOR
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UNILEVER HUMAN RIGHTS REPORT 2020 85 Appendix II Salient issues timelines
Discrimination Rolled out our enhanced vetting Introduced global guidelines inclusive working environments process for temporary labour to ensure accessibility for for LGBTQI+ people around the recruiters those with disabilities in IT, world and joined Stonewall recruitment, communications globally (expanding our UK 2013 Launched the Unstereotype and workplace design membership) and Open for Alliance Business Launched Global Reach with Created Enable@Unilever, Committed to challenging Local Roots: creating a gender- a resource and support group for Held a Global Virtual Pride Day harmful gender norms including balanced workforce in different employees with a disability and launched our global proUd through a changing mindsets cultural contexts network campaign which reached Increased the number of diverse 82,000 employees suppliers to our US business by Supported organisations and 2014 35% vs 2017 Published ‘Opportunities for activists working for social Launched the Opportunities for Women: Challenging harmful Doubled our spend in the US with justice and racial equity, Women pillar of our USLP social norms and gender diverse minority suppliers vs 2017 including $7 million pledged stereotypes’ by Unilever USA to Black Lives Launched ad campaigns for Matter, National Urban League, 2015 some of our biggest brands and The Bail Project (Unilever USA) Signed up to the UN Women’s 2018 including Dove, TREsemmé, and Empowerment Principles Magnum to address harmful Introduced our new Global gender norms and stereotypes Advocated for safe and fair Committed to UN Women’s Paternity Leave Standard access to voting in the 2020 HeForShe movement By 2019, in partnership with US election Signed the United Nations others, enabled 2.34 million Standards of Conduct for women to access initiatives Business: Tackling Discrimination Launched our new supplier 2016 aiming at promoting their diversity commitment and our against Lesbian, Gay, Bi, Trans & safety, developing their Intersex People commitment to increase the Reached 92,000 women with skills and expanding their number of advertisements that access to initiatives that opportunities Launched our internal policy on include people from diverse promote their rights and expand the Sustainable Employment of groups, both on screen and opportunities Temporary Workers behind the camera Launched ‘Winning with 2020 Diversity’ Award for our suppliers Announced our ambition to be the No. 1 employer of choice for Achieved our ambition for gender Launched our Supplier Diversity people with disabilities balance across our management Fair wages Program in the US, which aims globally, a year ahead of our to increase the presence of target historically underrepresented 2019 groups in our supply chain Announced as a winner of the 2014 Increased the number of women prestigious 2020 Catalyst Award, in management positions in which recognises companies Created and launched our supply chain from 31.95 to advancing women and diverse our Framework for Fair 2017 39.8% (compared to 2015) and groups through game-changing Compensation, applying to all direct Unilever Introduced our Global Maternal the number of women who lead initiatives employees globally Well-being Standard our factories from 11% in 2015 to 22% in 2019 Signed the Declaration of Amsterdam, calling for more
86 UNILEVER HUMAN RIGHTS REPORT 2020 Ran Living Wage Studies with Conducted a ‘Prevention 2016 Collaborative Manufacturers 2017 and remediation’ workshop Joined the Malawi Tea 2020 (those who manufacture Rolled out a global internal for suppliers in Malaysia Programme products on behalf of Unilever) training programme to raise to implement the EPP, and awareness and build capacity developed a remediation Signed a Memorandum of Signed the Obama White House to identify and prevent forced plan for the reimbursement Understanding with IDH to work Equal Pay Pledge, supporting labour of recruitment fees to existing country-wide change to reduce on living wages and incomes workers wage inequality in the US Hosted joint supplier training events in India, Dubai, and Joined the Responsible Labour Achieved accreditation from the Malaysia in partnership with Initiative (RLI), including giving Living Wage Foundation (UK) AIM-Progress suppliers access to training Forced labour modules and, in Malaysia, a worker helpline 2017 2018 Brought forward our Fair 2015 Promoted best practices 2020 Compensation ambition that working in collaboration with Identified human trafficking as none of our direct employees the International Labour Co-convened a virtual a salient issue earn less than a living wage Organization (ILO), International responsible recruitment to 2018 Organization for Migration, capacity-building series in Strengthened our policy LGGR and the CGF Malaysia to help suppliers better framework by incorporating Joined the Ethical Tea understand brand expectations, prohibiting human trafficking Partnership to work with peers Advocated to governments of and provide practical guidance explicitly into relevant Code and stakeholders on achieving G20 and B20 countries to support on how to strengthen existing Policies and Statements a sustainable tea industry for change, including through due recruitment and employment workers and farmers diligence for public procurement, practices for migrant workers and by implementing the Three 2016 Priority Industry Principles Participated in LGRR activity to create a reporting framework 2019 Drove the establishment of to demonstrate activities and the CGF Three Priority Industry Joined the Ethical Tea Partnership impacts in promoting the EPP Principles and Action Framework, Living Wage Working Group to 2019 aimed at eradicating forced drive progress on fair wages Conducted training on ethical labour from supply chains recruitment, with a focus on best Freedom of Joined the World Cocoa practices for our Procurement Founding member of the Foundation and International and Human Resources teams, Leadership Group for Responsible assocation Cocoa Initiative whose aims and external training for our Recruitment (LGRR), promoting include driving progress on suppliers by Impactt ethical practices income and eradication of 2008+ child labour Developed a recruitment fees Published our first Modern action plan for the Gulf region Established a global forum with Slavery Statement, showing the International Union of Food Unilever’s actions to prevent, Signed a Memorandum of workers (IUF) and IndustriALL 2020 detect and respond to slavery Understanding with the Fair Global Union on labour rights and human trafficking within Joined the IDH Steering Labor Association (FLA) to to identify, discuss and address our business and throughout our Committee for the Roadmap participate in the Harvesting the issues and geographies of supply chain on Living Wages Future project in Turkey concern
UNILEVER HUMAN RIGHTS REPORT 2020 87 Appendix II: Salient issues timelines
areas including retraining, programme (Ending Violence Conducted a progress review 2017 employability programmes and Against Women), designed of our safety programme in our Signed a joint commitment new employment models to develop a human rights-based tea plantations in Tanzania in with the IUF and IndustriALL intervention programme across collaboration with UN Women Global Union on preventing our tea supply chain Trained, with local women’s sexual harassment at Unilever 2020 Launched the Kings and Queens rights partners, 2,282 women in workplaces Engaged unions on key worker Clubs (KQs) in schools near our Kenya on financial opportunities rights issues with a particular tea plantations in partnership to help reduce the risk factor of focus on locations in Africa, with the Gender Violence financial dependence associated 2018 LATAM and Asia Recovery Centre (Kenya) with gender-based violence Signed a joint memorandum of Collaborated on how best to Signed a joint commitment with Supported the creation of understanding (MOU) between manage the situation in our international union federations safe spaces for women and Unilever, the IUF, and IndustriALL factories created by COVID-19 IUF and IndustriALL Global Union adolescent girls, including Global Union, recognising and agreed joint standards to to prevent sexual harassment at their involvement in designing them as the internationally protect the health and safety Unilever workplaces a women’s safety programme representative bodies of of our employees relating in Assam, India, the unionised workers within our to COVID-19 implementation of women’s worldwide operations 2017 safety audits, and other Created new guidance on community mobilisation and Rolled out new internal working conditions in the Harassment awareness activities guidelines providing rapid trucking industry based on work assistance to create a safe Held consultation and feedback with the International Transport environment when harassment meetings with women tea Workers Federation (ITF), the concerns are raised workers and growers in Assam, International Union of Food 2013 India Workers (IUF) and FNV-Stichting Launched our Safety for Women Extended our work on combating VNB & Girls programme, which sexual harassment through included strengthening our supplier partnership in Assam, Carried out the first joint 2019 management team with more India assessment of our manufacturing female managers Launched the UN Women sites with the IUF, focusing on Supported the set up and and Unilever Tea Tanzania the employment conditions of the launch of the Gender partnership to strengthen the temporary workers 2015 Empowerment Platform existing model (GEP) co-ordinated by IDH. As Continued to engage the worker members, we contributed to the Supported the development 2019 community to build the women’s development of the plantations and launch of a practical safety programme in Kenya roadmap on women in the Guide to further support Signed Joint Commitment on and Tanzania and strengthen tea sector implementation of the UN Sustainable Employment in grievance mechanisms, Women’s Global Women’s Safety Unilever manufacturing with the embracing a more inclusive and Framework in Rural Spaces IUF and IndustriALL Global Union bottom-up approach 2018 with the aim of ensuring that Signed the European Framework- all our agricultural suppliers Supported the development and Agreement on the Future of implement it launch of the Global Women’s Work, agreed between Unilever’s 2016 Safety Framework in Rural Spaces management and its European Launched our global partnership in collaboration with UN Women Works Council, covering with UN Women‘s EVAW
88 UNILEVER HUMAN RIGHTS REPORT 2020 Health & safety leader’ programme, delivering Land rights 2020 e-learning to 500 Unilever senior Supported an awareness leaders in all markets, including campaign in Assam, India to our CEO address structural barriers to 2013 + 2015 Expanded our global ban on equality and attitudes/norms Achieved our USLP target of the use of mobile phones while Launched our Palm Oil Sourcing that perpetuate discrimination halving the number of accidents driving on company business to Policy, referring to land rights and violence against women and in our factories and offices vs hands-free phones (MoMo policy) girls, with over 7,171 community 2008 members reached (3,784 women, Launched our global Employee 3,387 men) 2017 Established a Global Safety and Assistance Programme (EAP), Health Executive Committee delivering mental well-being Created Global Land Rights Endorsed new ILO Convention to (GSHEC), which is chaired by our support 24 hours a day, 365 days Principles and Due Diligence end violence in the workplace Chief Executive Officer a year Implementation Guidelines for our own operations Created the Women’s Safety Introduced a mandatory safety Accelerator Fund in partnership training programme for all Co-founded the Food and Land with IDH in Assam, India Unilever leaders who manage 2018 Use Coalition (FOLU) a team Issued guidance for our suppliers Carried out a progress review to help them create effective with UN Women of our safety health and safety committees programme in our tea plantation 2018 in Rwanda 2014 Began operationalising our Created our four-pillar Well- Global Land Rights Principles Rolled out internal training being Framework, which 2019 and Implementation Guidance, for Human Resources and underpins everything we do to Defined our safety strategy and starting in our own operations Procurement on safety for support our employees’ health roadmap for new acquisitions, women with a focus on the and well-being and provided intensive training Applied our Land Rights effects of COVID-19, and for senior leaders as part of Principles to the expansion of supported women’s rights our BeSafe capability-building our tea business in Rwanda organisations on awareness- programme raising initiatives on COVID-19 2015 and on violence against women Implemented mobile phone use 2019 and girls in Kenya, Tanzania, ban when driving and Assam, India 2020 Created a new internal Created a tier system for our automated due diligence/sign- Facilitated an expert panel factories and distribution off procedure for any transaction discussion for our employees on 2016 centres to protect our workers involving land ending violence against women Launched our Safe Haven and respond to and safely project for truck drivers (USA), address COVID-19 Launched our Global Position on giving them a safe place to stop 2020 Domestic Violence and rest Began to work on the integration of our principles and 2017 implementation guidance into requirements for our suppliers Launched our ‘Safety as a core value: Being a responsible safety
UNILEVER HUMAN RIGHTS REPORT 2020 89 Appendix III Salient issues impact data
We analysed findings from the number of workers employed indirectly the rest of the workers, a sub-set of the total number audits conducted throughout at a suppliers’ site, we were able both now and in the future, of non-conformances from the our tier 1 supply chain of direct to extrapolate the number of due to improved conditions same data sets. These are the suppliers from 2016-2020 against people that were potentially and stronger management most serious non-conformances each of our salient issues. In impacted. Meaning, for example, systems. Because our suppliers and must be communicated by doing this we were able to see that where an auditor witnessed are subject to re-audit on a the auditor to Unilever within how many lives we both directly or found evidence relating to routine basis through our audit 24 hours. Internally these are and indirectly impacted within certain affected workers, the process, we are able to see if escalated to either a Director the “walls” of supplier sites remediation of the issue found these issues arise again. N.B. or Vice President. through our remediation efforts through the audit process would for Forced Labour and Health working with our supply partners. be expected to impact not only & Safety salient issues, we For most of the findings, using those workers directly, but also focused on the Key Incidents as
Appendix IV Malawi Tea 2020 achievements
1ST SUSTAINABLE MORE TEA PROCUREMENT MODEL 33% tool to facilitate OF THE LIVING 66% VOLUME buyers' contribution WAGE GAP HAS sourced from Malawi and commitment BEEN CLOSED by coalition buyers towards closing the living wage gap for 50,000 tea workers
ST 64% 350,000 $14.1M TREES GROWN INVESTED BY PRODUCERS 1 OF TEA FARMERS ATTENDED to mitigate deforestation for productivity, quality, replanting, COLLECTIVE BARGAINING FARMER FIELD SCHOOLS factories, irrigation, diversification AGREEMENT good agricultural practices, increased yields, higher quality for 10,564 between PAWU and TAML farmers (81% women) 925,880 TEA SEEDLINGS GROWN for planting in smallholder farms 1ST GENDER EQUALITY, SEXUAL HARASSMENT, AND 80% 12,500 DISCRIMINATION POLICY of workers receive FARMERS AND WORKERS 9,931 fortified meals (40,175 implemented across all tea estates through PARTICIPATE IN VILLAGE SAVINGS workers), More vegetables FUEL-EFFICIENT 144 Women’s Welfare Committees and 147 AND LOANS ASSOCIATIONS for all tea workers COOKSTOVES PRODUCED Gender Committees & introducing reporting increasing financial security mechanisms at all estates 80,000 ton CO2
See more details about the Malawi 2020 programme.
90 UNILEVER HUMAN RIGHTS REPORT 2020 Appendix V Collaborations
AIM-Progress – to reduce regional disparities, recruitment by raising awareness and; about the positive benefits of ethical practices and developing Focus area: – to fight gender discrimination Responsible sourcing tools to help companies and child labour. implement the Employer Desired outcome: Unilever’s input: Pays Principle; Formed to enable and promote We are members of the working responsible sourcing practices – increase supply of ethically groups on Building an inclusive and sustainable supply chains sourced labour by creating recovery; Inclusive sourcing and for fast-moving consumer an enabling environment and Impact measurement. goods (FMCG) manufacturers supporting the development and with common suppliers. One implementation of systems to of its key objectives is to build The Consumer Goods Forum identify, and; supply chain capability so that (CGF) – use ethical recruitment members and their suppliers agencies; improve protection are competent in executing Focus area: for migrant workers through robust responsible sourcing Sustainable supply chains effective regulation. programmes. Desired outcome: Unilever’s input: Drives global collaboration Founder member. Unilever’s input: between retailers and We are members of the Human manufacturers in identifying and Rights and Mutual Recognition tackling key social sustainability World Economic Forum Working Groups and play a issues such as the eradication of (WEF) Global Future key role in organising supplier forced labour. capacity building events. Council: The Future of Unilever’s input: Human Rights (SSC) Sponsored at Board level by our CEO Alan Jope. We are members Focus area: The Business for Inclusive of the Human Rights Coalition: Human rights; equity and Growth (B4IG) Working to end forced labour social justice; future of work; and the Sustainable Supply transparency and anti-corruption Focus area: Chain Initiative. Inclusive growth Desired outcome: The Global Future Council on Desired outcome: Human Rights will help to shape Leadership Group for The Business for Inclusive Growth the new corporate human rights (B4IG) coalition (hosted by the Responsible Recruitment agenda, particularly in the post OECD) was launched by President (LGRR) COVID-19 recovery. Emmanuel Macron in 2019 on the fringes of the G7 annual meeting Focus area: Unilever’s input: to bring pioneering businesses Responsible recruitment. We are members of the Global together with governments and Future Council on Human Rights other key stakeholders to drive Desired outcome: and the Equity and Social Justice inclusive growth and address Aims to drive positive change Future Councils. inequalities. in the international recruitment industry and a global prohibition Each member company pledges of recruitment fees being paid by to: workers. In particular, the LGRR works to: – t ackle persistent inequalities of opportunities; – create demand for responsible
UNILEVER HUMAN RIGHTS REPORT 2020 91 Appendix VI Transparency and reporting
We’ve applied the UNGP Business and Human Rights reporting framework since our first Human Rights Report in 2015.
It is a key element in a wider approach to transparency and reporting of social and Dow Jones Behind the Gartner – environmental issues described on our website Sustainability Brands Supply Chain in about our reporting. Index (DJSI) Top 25 Here are some highlights.
2018 2013 2018 Unilever has Personal Products When Behind the Brands Unilever scored the top industry leader started in February 2013, spot for the third year in been ranked the Unilever scored 49%. a row top of its sector In September 2013, we 2019 scored 56% 20 times in the Personal Products 2019
S&P Dow Jones industry leader After seven consecutive 2014 years of scoring in the top Sustainability In February we scored 63%. five of the Supply Chain 2020 In October we achieved Top 25, Unilever joined the Index (DJSI) Personal Products the joint top score of 70% ‘Masters’ category, which industry leader Gartner introduced in 2015
2015 to recognise sustained Unilever has been leadership over the last awarded leadership In March 2015, we 10 years achieved the top score 21 times since 1999 of 71% 2020 In the 16th edition of the 2016 Gartner Supply Chain Top In April 2016, we scored 25, we retained our spot 74%. In 3 years, we in the exclusive ‘Masters’ improved 24% category
92 UNILEVER HUMAN RIGHTS REPORT 2020 Voluntary third-party reporting Corporate Know the Chain Thomson We have participated in the Workforce Human Rights Reuters Stop Disclosure Initiative since its inception in 2017. Benchmark Slavery Award We believe that transparency on workforce (CHRB) issues across the value chain is key to unlocking progress on decent work and human rights in the workplace.
Supply chain traceability and transparency
We aim to make our supply chains more 2018 2018 2018 transparent, and we publish supplier lists Scored second highest in Ranked first out of Won Thomson Reuters for tea and palm oil (see Spotlight on the agricultural sector 20 companies Stop Slavery Award for Commodities). outstanding leadership of CEO Leadership Group for Responsible 2019 2019 Recruitment (LGRR) Scored second highest Ranked first out of in the agricultural sector 38 companies As active LGRR members, we work with and third in overall sectors other businesses and civil society partners to promote responsible recruitment and, in 2020 particular, an end to the common practice 2020 Ranked second out of of migrant workers paying large recruitment Scored highest in the 43 companies fees to secure employment. In 2020, we’ve agricultural sector been part of the development of a reporting and joint highest in framework for LGRR businesses to increase overall sectors transparency and demonstrate action and activities undertaken to promote the Employer Pays Principle (EPP). See the Forced Labour section of this report.
UNILEVER HUMAN RIGHTS REPORT 2020 93 Appendix VII RSP governance – segregation of duties
Business Integrity Global Code & Policy Unilever Metrics Team and Committee (GCPC) independent, external – R esponsible for the Compliance assurance & Governance of the RSP within – O wns the Code of Business Unilever Practices (CoPB) and 24 related – T he metrics team own the Code Policies performance measures used – Owns and sets the Anti-Bribery to track external commitments and Corruption standards for – Defines the responsibility of and ensure the validity of Unilever including in the RSP Unilever and employees in regard to implementing RSP measurements used – Business owner of the Systems as part of CoBP – Independent external used to hold the compliance auditors test and verify the database and Back-office validity and reliability of Outsourced Services to support Integrated Social data and calculations of the the systems and users Sustainability performance measures – Leads the risk management strategy and operations and – O wns and develops human assessment of the programme rights standards to ensure appropriate and – Develops and delivers capacity proportional measures are in building within Unilever place with input from relevant – Leads on Human Rights SMEs remediation issues within the – Chairs the Tripartite Steering Supply Chain Group responsible jointly for – Subject Matter Experts in Human alignment of the standards set Rights Endemic Issues and leads interventions to address them Corporate Responsibility – Leads on human rights Committee (CRC) advocacy, performance and public reporting – B oard level review and oversight of Third Party Compliance risk – Management Co-Investment Plan proposal to Compensation Committee based on performance against USLP metrics and other business relevant metrics
94 UNILEVER HUMAN RIGHTS REPORT 2020 Appendix VIII UN Guiding Principles Reporting Framework
This index is designed to help you identify the location of answers to questions according to the UN Guiding Principles Reporting Framework. Full details about the UNGP Reporting Framework.
Part A1: Policy Commitment
A1.1 See pages 3, 5–15
A1.2 See page 68
A1.3 See pages 68, 69–71, 78–79
Part A2: Embedding Respect for Human Rights
A2.1 See pages 16, 67-68, 69–71, 78–79, 86
A2.2 See page 67
A2.3 See pages 68, 78–79
A2.4 See pages 68, 69–79
A2.5 See pages 20, 22–24, 27, 29, 32, 35, 38, 41, 44–45, 69–71, 75–77
Part B: Defining the Focus of Reporting
B1 See pages 20–44
B2 See pages 20, 45
B3 See pages 20, 23–24, 25–27, 28-29, 32, 33-35, 40–41, 43–44, 53–54, 57, 73
B4 See pages 48–49
Part C1: Specific Policies
C1.1 See pages 34, 68, 69–71, 77–79
UNILEVER HUMAN RIGHTS REPORT 2020 95 Part C2: Stakeholder Engagement
C2.1 See pages 10, 18–19, 91–92, 31–32, 48–49, 51, 54, 57, 73–75, 85
C2.2 See pages 10, 32, 53–54, 73, 75
C2.3 See pages 25–26, 27–29
Part C3: Assessing Impacts
C3.1 See pages 16, 24, 28–30, 32, 70, 72, 74–75, 77
C3.2 See pages 29, 41, 43
Part C4: Integrating Findings and Taking Action
C4.1 See pages 53–54, 67, 84
C4.2 See page 67, 84
C4.3: See pages 39–40, 53, 69–71, 74
Part C5: Tracking Performance
C5.1 See pages 43, 58, 73, 77, 79, 91–92
Part C6: Remediation
C6.1 See pages 72–77
C6.2 See pages 72–77
C6.3 See pages 67, 72–75
C6.4 See pages 72–77
C6.5 See pages 28–29, 39
96 UNILEVER HUMAN RIGHTS REPORT 2020 The numbers used in this report have not been independently assured. Design: www.theayres.co.uk Print: www.scanplus.co.uk December 2020 Unilever PLC Head Office 100 Victoria Embankment London EC4Y 0DY United Kingdom T +44 (0)20 7822 5252 F +44 (0)20 7822 5951
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