UNILEVERS SUSTAINABLE LIVING PLAN:

THE BUSINESS CASE FOR

SUSTAINABILITY
STRATEGIC MARKETING CONFERENCE
Louise Duys, Corporate Sustainability Manager Elangeni Hotel, Durban 26th September 2012

ABOUT UNILEVER
Founded in 1884 by William Lever who left a legacy of Corporate Responsibility which has been central to our way of doing business since we started out making soap.

With operations in over 150 countries, 160 million times a day, someone will choose one of our 400 brands across foods, home and personal care categories
We have been in South Africa for over 100 years with deep roots in South African communities. We are market leader in 12 of the 17 product categories in which we operate.

BIG CHALLENGES

BIG OPPORTUNITIES FOR OUR BRANDS

In 2010 we launched the Unilever Sustainable Living Plan

Our business plan for doubling our business, reducing our environmental footprint and increasing our positive social impact.

OUR VISION

ALL BRANDS, ALL COUNTRIES

NOT JUST THE ENVIRONMENT

RESPONSIBILITY ACROSS THE FULL VALUE CHAIN

Unilevers Greenhouse Gas Footprint

RESPONSIBILITY ACROSS THE FULL VALUE CHAIN

Unilevers Greenhouse Gas Footprint

THREE BIG GOALS BY 2020

The business case for sustainability

BUT WHY?

The business case for sustainability THE BUSINESS CASE FOR SUSTAINABILITY

It inspires our people IT INSPIRES US

Manufacturing eco-efficiency c.200m savings 2006-10

Customers want it CUSTOMERS WANT IT

It saves money IT SAVES MONEY

REDUCING OUT TOTAL VALUE CHAIN IMPACTS

3%
GHGS WATER WASTE

-43%
CO2 from energy use (kg/tonne production)

-75%
Water use (m3/tonne production)

-63%
Waste (kg/tonne production)

INDONSA SAVOURY FOODS FACTORY

Opened in Riverhorse Valley in 2011, this factory is Unilevers second largest savoury factory in the world and the first designed to double production yet significantly reduce carbon emissions and water and send zero waste to landfill once fully operational. This R700 million investment will result in significant cost savings for the business

REDUCING PACKAGING

18%
Reduction in pack weight

CONSUMERS WANT IT

The business case for sustainability

THE CONSUMER IS WILLING

I have made it a top priority to live a more environmentally conscious lifestyle

I have made it a top priority to live a more environmentally conscious lifestyle

10

I never worry about green and environmental issues very much; I have other priorities in life

Mean

South Africa

37%

21

16

18

13

10

4 4 23

7.2

China India Turkey Brazil UK USA

% of consumers

54% 39% 37% 18

28 21 27 20 5 7 15 17 13 21 10

26 24 19 21 16 19 13

25 14 17 16 19 17 10

10 10 10

5 4 1 7 11 10 4 3 4 5 31

8.3 7.7

7.6
7.3 6.0 6.0

33% 9% 4
12% 5

6
7

7
6 4

2009

20

40

60

80

100

Making the world a better place is important to consumers

% extremely/ very important 100

Making the world a better place

80 65 68 63 64 61 64 61 61 60 71 66

75 64

76

64

60

40

20

n/a 0 2008 2009 2010

n/a 2008 2009 2010 2008 2009 2010

n/a 2008 2009 2010 2008 2009 2010 2008 2009 2010

16 market average

Asia

Eastern Europe

Western Europe

North America

Latin America

22

Source: Global Monitor 2010 (Standardised data)

Consumers intend to take action

% all agree 100

I feel that I can make a difference to the world around me through the choices I make and the actions I take
79 71 59 55 68 68 57 49 52

80

76

78

60

58

56

56

56

40

20

n/a 0 2008 2009 2010 2008 2009 2010 2008 2009 2010

n/a 2008 2009 2010 2008 2009 2010

n/a 2008 2009 2010

16 market average

North America

Latin America

Western Europe

Eastern Europe

Asia

23

Source: Global Monitor 2010 (Standardised data)

The business case for sustainability

BUT WITH SOME PRE-CONDITIONS

Consumers will not compromise on price, quality or convenience

Which of the following is holding you back from leading a more environmentally conscious lifestyle?
80 82 76 73 73 67 67 67 66 86

73

43

41

It costs too much

India Brazil UK USA

I don't have enough time

I don't want to compromise on quality or convenience of products and services I buy

25

Source: The Futures Company, Global SEE Monitor 2009

SUSTAINABILITY BUILDS CONSUMER PREFERENCE CONSUMERS WONT COMPROMISE

She expects from companies like Unilever that our products are responsibly sourced, made & delivered. She is not prepared to pay more for the product

but

The business case for sustainability

So, if we dont ask consumers to compromise AND we make it easy for them to buy & use then we can help answer their desire to take action

The business case for sustainability

CONSUMER Quality Value Convenience

SWEE T SPOT

PLANET Reduced Impact

It fuels innovation IT FUELS INNOVATION

INNOVATION - REDUCING WATER IN LAUNDRY

INNOVATION - REDUCING GHG IN LAUNDRY

INNOVATION - REDUCING HOT WATER FROM SHOWERS

The business case for sustainability

BUT IS INNOVATION ENOUGH TO ADDRESS OUR BIGGEST CHALLENGE?

OUR BIGGEST CHALLENGE: CONSUMER USAGE!

Unilevers Greenhouse Gas Footprint

CONSUMER USAGE OUR BIGGEST CHALLENGE

INNOVATION

CONSUMER BEHAVIOUR CHANGE

Unilevers Greenhouse Gas Footprint

THE 5 LEVERS FOR CHANGE VIDEO

LIFEBUOY CASE STUDY LIFEBUOYS 5 NON NEGOTIABLES

Make it Understoo d Make it Easy

Make it Desirable

Make it Rewarding

Make it a Habit

REDUCE WATER USED BY OUR CONSUMERS: RADOX SHOWER AERATOR

INITIATIVE
Reducing consumer water usage (17bn litres) through distribution of 120,000 shower aerators through a partnership with PICK n PAY. Potential to double sales of RADOX.
WATER & GHG

REDUCE GHG IMPACT OF OUR CONSUMERS: LAUNDRY LIQUIDS INDUSTRY

INITIATIVE
An industry initiative, in partnership with machine manufacturers and a customer, to reduce consumers GHG emissions of every laundry wash by 90% by using the right machine (front loader), right cycle (cold), and most importantly, the right product (liquids).
WATER & GHG

THREE NONNEGOTIABLES OF SUSTAINABILITY

#1
It must work for UNILEVER
i.e. Make business sense

#2
It must work for the CONSUMER
Consumers will not compromise on price, quality or convenience

#3
It must change PERCEPTIONS and BEHAVIOUR
The success of the plan rides on it!

WHAT HAS THIS PLAN RESULTED IN?

GOOD BUSINESS GROWTH

2012: 50 BILLION EUROS

OUR VISION

24%
of the companys agricultural raw materials were sustainably sourced last year.
46

48m
people reached by Lifebuoys hand washing programme.
47

35m
people reached by Pure-It water purifying technology.
48

100%
of electricity purchased in Europe comes from renewable sources
49

100%
of Palm Oil will have Green Palm certificates by the end of 2012
50

AMONGST KEY OPINION FORMERS WE ARE LEADERS

Unilever

Interface
Walmart Patagonia GE Marks & Spencer Toyota Siemens Novo Nordisk Nike Natura Nestl IBM
Source: Globescan Sustainability Survey 2012

outright sustainability leader

by Key Opinion Formers

Unilever voted

SO, SUSTAINABILITY WHAT DOES IT MEAN FOR US?

a sustainable business is a

growing and profitable business

social, economical and environmental outcomes
that delivers positive

A NEW PARADIGM FOR SUSTAINABILITY

What we firmly believe is that if we focus our company on improving the lives of the world's citizens and come up with genuine sustainable solutions, we are more in synch with consumers and society and ultimately this will result in good shareholder returns.
Paul Polman, CEO, Unilever The Guardian, April 2012

ITS A JOURNEY AND EVERYONE HAS A ROLE TO PLAY

THANK YOU
LOUISE DUYS CORPORATE SUSTAINABILITY MANAGER 26 SEPTEMBER 2012