RSPO Annual Communication of Progress 1.

Profile
Name of the organisation (as appears on
www.rspo.org : UNILEVER

Membership type (tick one only):

X Ordinary

Affiliate
Membership category (tick one only):
Oil palm growers
Palm oil processors and traders
X Consumer goods manufacturers
Retailers
Banks and investors
Environmental/nature conservation
organisations(NGOs)
Social/development organisations (NGOs)

Operational structure of the organisation:

Responsible Contact(s)
Primary contact for questions, feedback: Name: Benny-PH Tan
Address: Unilever (Malaysia) Holdings Sdn Bhd
Level 33-35 Menara TM Jalan Pantai
Baru 59200 Lumpur Malaysia
Telephone: +603-22462485
Email: Benny-PH.Tan@unilever.com
Senior representative, authorising Marc Engel
commitments: Chief Procurement Officer
Person submitting progress report: Zoltan Klagyivik, Supply Manager
Financial contact for membership fee: Jan Kees Vis
Reporting Period: 2010
Date of Report: 07/07/2010

2. Details of Progress
A. Analysis and Strategy for Sustainable Palm Oil

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1. High-level strategic view of the organisation's relation to sustainable palm oil and related
longer term objective.
Unilever’s overall commitment is to buy all its palm oil from certified sustainable sources by 2015.

2. Time bound plan with milestones/targets.

· We bought some of the first shipment of Certified Sustainable Palm Oil in Nov 2008.
· In Europe, we will have fully traceable supply chains in place by 2012
· All of our palm oil will be certified sustainable by 2015
· We support the call for an immediate moratorium on any further deforestation in Indonesia for
palm oil.

3. Targets for the next reporting period.

Continue with the purchasing of Greenpalm certificates and physical segregated certified sustainable
palm oil to meet our 2012 and 2015 target.

4. Statement from the organisation's senior representative.

Unilever is absolutely committed to sourcing 100% sustainable palm oil. This builds on our strong track-
record in developing sustainability over more than a decade. We believe in constructive engagement with
our suppliers and we work in partnership with governments, NGOs and other users to make the journey to
sustainable palm oil and to break the link between cultivation of palm oil and climate change. We will
continue to drive industry change and set high sustainability standards through working with RSPO.

B. Progress made in producing, procuring and/or utilizing sustainable palm oil

In 2009 Unilever bought and redeemed 185.000 GreenPalm certificates.

For 2010 Unilever is committed to double its volume to cover 30% of its global palm oil consumption
with Greenpalm certificates. To date, It had bought and redeemed 176,110 GreenPalm certificates for
cspo and 15,600 Greenpalm certificates for cspko. We will continue to buy and redeem on a regular
basis.
In Apr 2010, Unilever announced it has secured enough GreenPalm certificates to supply its European,
Australia and New Zealand businesses with sustainable palm oil
In May 2010 Unilever has obtain RSPO Supply Chain Certification for 4 of own sourcing units
(Nassaukade, Gloucester. Purfleet and Helsingborg) in Europe in order to be able to declare having
received segregated physical sustainable palm oil.

C. Challenges

1. Significant economic, social or environmental obstacles encountered in production,

procurement and/or use of sustainable palm oil and efforts made to mitigate or resolve them.
1. Although there are now significant quantities of certified sustainable palm oil available on the market,
there isn’t yet sufficient critical mass coming through the segregated supply chains.
2. Unilever is facing obstacles with regards to the availability of palm oil fractions and derivatives in
fully physical segregated sustainable form.

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2. Suggestions on how the RSPO can assist your organisation’s sustainability performance.
- To expedite the certification processes of audited plantations and oilmills so to allow more
supply of certified sustainable palm oil
- To encourage further uptake of certified sustainable palm oil, the buyer scorecard should be
made updated regularly (at least once a month) and made available in the website
- To encourage buying, the commission levy by GreenPalm and Utz of $2/mt is very high by any
trading standard and should be reduced to $1 since the volume of certified sustainable palm oil
transacted at more than double (perhaps triple) in 2010. A gradual reduction of commission
table should be agreed with step-up volume increase
- Support the extension of auditor services.

3. Suggestions on how your organisation can assist RSPO’s overall progress.

- Financial contribution by buying sustainable palm or palm kernel oil