Unilever’s Sustainable Living Plan & Sustainable Sourcing

Keurmerken

Jan Kees VisGlobal Director Sustainable Sourcing Development

• We work to create a better future every day.

• We help people feel good, look good and get more out of life with brands and services that are good for them and good for others.

• We will inspire people to take small, everyday actions that can add up to a big difference for the world.

Our vision: The Compass

We will develop new ways of doing business with the aim of doubling the size of our company while reducing our

environmental impact.

Unilever’s Sustainable Living Plan (USLP)

what does it mean?

a sustainable business is a growing and profitable business

that delivers positive social, economicaland environmental outcomes

sustainability

• fuels innovation & growth, with huge

potential in developing & emerging markets• builds consumer preference - consumers

won’t compromise• ensures you win with customers

and shareholders• reduces waste - reduce, reuse, recycle

why?

Three Key Features

ALL BRANDS ALL

COUNTRIES

DisposalRaw Materials Manufacture Transport Consumer Use

Three Key Features

LIFECYCLE IMPACTS

ALL BRANDS ALL

COUNTRIES

Three Key Features

ECONOMIC

SOCIAL

ENVIRONMENTAL

LIFECYCLE IMPACTS

ALL BRANDS ALL

COUNTRIES

Three Big Goals by 2020

SOURCE

100% OF AGRICULTURAL RAW MATERIALS

SUSTAINABLY

HALVEENVIRONMENTALFOOTPRINT OFOUR PRODUCTS

HELP

1 BILLION PEOPLE IMPROVE THEIR HEALTH & WELLBEING

Halve Environmental Footprint of our Products

In

Greenhouse Gases

Raw materials Manufacture Consumer use DisposalDistrib./ retail

26% 1%68%2%3%

Water used by consumers Water we add to the product

1% 87%

LeftoversPrimary packagingmaterials recycled, reused or recovered

-54% 13% 34% X%

Secondary packaging

+ +

Water use

Waste

Raw materials

12%

In water scarce countries

SWEET SPOT

CONSUMERQuality

ValueConvenience

PLANETReduced impact

Drive GROWTH and BRAND preference by hitting the consumer sweet spot

Drive GROWTH and BRAND preference by hitting the consumer sweet spot

SWEET SPOT

CONSUMERQuality

ValueConvenience

PEOPLEBetterLivelihoods

1. Certification• Why? – Unilever want brand driven or supply market entry• Applicable to a limited number of raw materials• Independent standard• Audit – pass or fail• Make part of specification• E.g. Rainforest Alliance, RSPO, MSC, FSC, RTRS, Fairtrade

2. Self-verification• Why? – Unilever want supply driven• Applicable to all raw materials• Unilever Sustainable Agriculture Code (UL SAC) – externally endorsed• Continuous improvement based – no definitive end points• Suppliers sign up to work on sustainable development• Performance reporting

3. In the end it is all about evidence-based sustainability4. Important to make the right choice for Unilever materials

Sustainable Sourcing mechanisms to substantiate

Two options for implementation

Certification

• In or out

• Do’s and don’ts

• Independent

• The seal is the story

• System costs

Verification

• Measured improvement

• Action plans

• Unilever driven

• Tell your own stories

• Value chain investment*See latest version of scheme rules

Standards Assessment

• Coordinated by ISEAL• Large Steering Group• Paid for by donors• Published in June 2012

http://www.resolv.org/towardsustainability/.

Increasing Proliferation of Standards and Certification Systems

Direct and

Indirect Impacts

Evidence of impact?

• Substantial evidence of improvement in practices on site or at the enterprise level.

• Limited evidence of longer term outcomes or impacts– Difficult to attribute outcomes to certification– Few studies on durability of impacts

• Methodological challenges– Dynamic nature of ecosystems and communities– Difficulty identifying an appropriate counterfactual– Financial costs and complexity

• What is it you want? • Be different from others?• Make sustainability mainstream?• Will we create 40 more roundtables?• Will we certify every farmer on the planet?

Role of standards systems

Unilever’s Sustainable Living Plan