Sustainable Living Plan SUMMARY of PROGRESS 2015 ABOUT US
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MOBILISING COLLECTIVE ACTION unilever sUSTAINABLE living plan SUMMARY OF PROGRESS 2015 ABOUT US €53.3 BILLION SALES IN 2015 190 COUNTRIES WHERE OUR PRODUCTS ARE SOLD 2 BILLION O CONSUMERS N 1 IN OUR INDUSTRY USE OUR GROUP IN THE 2015 PRODUCTS DOW JONES SUSTAINABILITY EVERY DAY 169,000 INDEX EMPLOYEES WORLDWIDE PERSONAL CARE FOODS 13 BRANDS WITH SALES OF MORE THAN €1 BILLION A YEAR REFRESHMENT HOME CARE CONTENTS A call to action 2 7/10 Our strategy 4 HOUSEHOLDS Sustainable Living brands drive growth 8 AROUND THE WORLD HAVE A UNILEVER Delivering our Plan 10 PRODUCT Mobilising collective action 16 USLP Summary of Progress 2015 – Benelux facts 20 Unilever Sustainable Living Plan: Progress in 2015 26 A CALL TO ACTION WE OPERATE IN A VOLATILE BUSINESS ENVIRONMENT, CHARACTERISED BY GROWING SOCIAL INEQUALITY, LOW TRUST 2015 IN BUSINESS AND A REMARKABLE INSTITUTIONS, AND THE YEAR FOR HUMANITY AND INCREASING EFFECTS THE PLANET OF CLIMATE CHANGE. 2 Unilever Sustainable Living Plan 2015 Unilever has a simple but clear 2015 was a remarkable year for humanity certainly reaffirmed our own belief in the and greenhouse gas emissions in our purpose – to make sustainable and the planet. Two historic moments at relevance of the Unilever Sustainable factories, reducing the environmental impact of consumers using our products living commonplace. We believe the end of the year have given us the Living Plan (USLP), acting as a further opportunity to pursue a more sustainable catalyst to our own action. Indeed, many remains a challenge. Despite this, we are that this is the best way to and equitable future. of our own goals mirror those of the SDGs. committed to a full value chain approach to ensure long-term growth. Now entering its sixth year, the USLP is reducing environmental impact – as this The adoption of the UN Sustainable proving that there is no trade-off between most meaningfully reflects the true impact Development Goals (SDGs), to which I had sustainability and profitable growth. It is of our business. the honour of contributing, provided for also helping us to save costs, fuel Our targets, and indeed those built into the first time in history a clear global innovation and recruit and retain the the SDGs, will only be achieved by tackling framework to resolve the world’s biggest best talent. Let me share some of global issues in a systemic way. But challenges. Indeed they are ambitious, our successes. but if we achieve the Goals we could end systemic change cannot be realised poverty, fight inequality and tackle climate Continued climate-related challenges, without collective action. It is in the interest change once and for all. uncertainty in markets and fluctuating of business, government and civil society commodity prices have made securing alike to accelerate progress towards this The first test of the Goals came at COP21, our own supply more important than ever vision. In fact, enormous opportunities when 190 nations agreed the historic before. That’s why we are delighted that exist for those who commit to taking Paris Agreement on climate, setting the 61% of our agricultural raw materials are action. After all, there is no business world firmly on the path towards a now sourced sustainably. Water, waste case for enduring poverty and runaway decarbonised economy. and energy efficiencies across our global climate change. factory network have avoided costs of Unilever played its part in both It will take much more than one company, more than €600 million since 2008. And agreements, alongside many other government or community to solve the our ‘Sustainable Living’ brands, such as companies, announcing our new goal challenges that face us. We need entirely Dove and Knorr, continued to grow. We to become ‘carbon positive’ in our own new types of collaboration, innovation and have continued our efforts to enhance operations by 2030. The unprecedented partnership between these bodies if we are livelihoods in our extended value chain level of support from the business to drive collective action for a brighter and by advancing human rights, focusing on community demonstrated that it will no more sustainable future for all. longer stand on the sidelines. This in turn women’s empowerment and developing helped to de-risk the political process, inclusive business models. In 2015, we giving governments the confidence to were the first company to produce a be bold in their commitments. stand-alone human rights report using the UN Guiding Principles Reporting These two significant turning points set Framework. out a positive vision for the future. At the same time, these developments illustrated Other areas, however, are proving more more than ever the importance of difficult. While we continue to make good Paul Polman sustainable business models. They progress with reducing water use, waste Chief Executive Officer, Unilever Unilever Sustainable Living Plan 2015 3 OUR STRATEGY OUR PURPOSE IS TO OUR VISION MAKE SUSTAINABLE is to grow our business, whilst decoupling our environmental footprint from our LIVING COMMONPLACE. growth and increasing our positive social impact. We work to create a better future every day, with brands and services that help people feel good, look good and get more out of life. POSITIVE SOCIAL IMPACT BUSINESS GROWTH DECOUPLE ENVIRONMENTAL FOOTPRINT 4 Unilever Sustainable Living Plan 2015 In an uncertain and volatile world, we cannot achieve our vision UNILEVER SUSTAINABLE LIVING PLAN unless we find new ways to operate that do not just take from society and the environment. IMPROVING HEALTH REDUCING ENHANCING Launched in 2010, the Unilever Sustainable AND WELL-BEING ENVIRONMENTAL LIVELIHOODS Living Plan is our blueprint for sustainable growth. This Plan is helping to drive for more than IMPACT for profitable growth, reduce costs and by fuel innovation. MILLIONS Our Plan sets out three big goals. 1 BILLION 1/2 Underpinning these are nine commitments By 2020 we will help more than By 2030 our goal is to halve the By 2020 we will enhance the supported by targets spanning our social, a billion people take action to environmental footprint of the livelihoods of millions of people environmental and economic performance. improve their health and well-being. making and use of our products as we grow our business. Our Plan is distinctive in three ways. as we grow our business. ●● It spans our entire portfolio of brands and all countries in which we sell our products. ●● It has a social and economic dimension health and hygiene greenhouse gases fairness in the workplace – our products make a difference to health and well-being, and our business supports the livelihoods of many people nutrition water opportunities for women in the sourcing, production and distribution of our products. waste inclusive business ●● When it comes to the environment, we work across the whole value chain – from the sourcing of raw materials, sustainable sourcing to our factories and the way consumers use our products. UNILEVER GREENHOUSE GAS FOOTPRINT 2014-15 29% 2% 2% 5% 61% 1% Raw materials Manufacture Distribution Retail Consumer Disposal Unilever Sustainable Living Plan 2015 5 SUSTAINABILITY IS DELIVERING VALUE FOR OUR BUSINESS AND SOCIETY We have developed a simple four-point LOWER COSTS framework to help capture the ways in By cutting waste and reducing the use of energy, HELLMANN’S ‘GROW WITH US’ INSPIRES CONSUMERS which sustainability contributes to raw materials and natural resources, we create People are increasingly asking The campaign reinforced our our business success. efficiencies and cut costs, while becoming less fundamental questions about the commitment to sustainable exposed to the volatility of resource prices. Cost origins of their food. Rather than sourcing and transparency, avoidance and savings help to improve our margins. simply telling them that we use only building engagement and trust with consumers. And a 10% jump We have achieved cumulative cost avoidance of natural, sustainable tomatoes in in market share transformed our over €600 million through eco-efficiency in our Hellmann’s ketchup, we developed MORE ketchup business in Latin America factories since 2008. a fun and interactive campaign GROWTH called ‘Grow with Us’ so they could in 2015. LESS RISK see for themselves. Sustainable ways of doing business help us mitigate We opened the gates of our farm in risk across our operations. Operating sustainably Talca, Chile, placing cameras in key LESS MORE helps us to future-proof our supply chain against the locations – even on farmers’ hats – RISK TRUST risks associated with climate change and long-term to live-stream how our tomatoes are sourcing of raw materials. grown. People could interact with By 2015, 61% of our agricultural raw materials the growers, getting to know them, were sustainably sourced. asking questions and even ‘adopting’ LOWER tomatoes. We also partnered with COSTS MORE TRUST Spotify to crowdsource playlists that 80MILLION were played to the tomatoes on our interactions with consumers Placing sustainability at the heart of our business in two weeks model strengthens our relationships with stakeholders fields, inspired by the view that and helps us succeed as a business. It helps us plants respond to sound waves. maintain our value and relevance to consumers, while In only two weeks, we recorded MORE GROWTH inspiring Unilever’s current and future employees. over 80 million interactions with Consumers are responding to campaigns by brands In 2015, we maintained our status as the Graduate consumers – sparking interest from such as Hellmann’s, Breyers and Omo on issues Employer of Choice in the fast-moving consumer over 3,500 cities in 110 countries. ranging from sustainable sourcing to water scarcity. goods sector among our target universities across 10% Their interest and engagement are translating into 34 countries. JUMP IN sales growth and greater brand awareness. MARKET In fact, our Sustainable Living brands accounted for THE FRAMEWORK IN ACTION SHARE nearly half our growth in 2015 and grew faster than The following examples illustrate the framework the rest of our business.