CSR Unilever

A CORPORATE SOCIAL RESPONSIBILITY REPORT Submitted by: BALURAN, Patricia Mae DALIRE, Randell Dan DE LA CRUZ, Christian Jay MARQUEZ, Karmela RALLECA, Bryan Submitted to: DR. NINFA S. ASIA

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CONTENTS 1. INTRODUCTION 1.1 History of Unilever 1.2 Unilever Logo 1.2.1 Unilever Icons 1.3 Company Vision 1.4 Purpose and Principles 1.4.1 Code of Business Principles 1.5Company Structure 1.5.1 Legal Structure 1.5.2 Management Structure 1.5.3 Executive Directors 1.5.4 Non-executive Directors 1.5.5 Unilever Executive (UEx) 1.5.6 Senior Corporate Officers 1.6 Unilever Brands 1.6.1 Food Brands 1.6.2 Home Care Brands 1.6.3 Personal Care Brands 2. CORPORATE SOCIAL RESPONSIBILITY 2.1 Philanthropy 2.2 Employee Development 2.3 Unilever Sustainable Living Plan

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2.3.1 Improving Health and Well-being 2.3.1.1 Health and Hygiene 2.3.1.2 Nutrition 2.3.2 Reducing Environmental Impact 2.3.2.1 Greenhouse Gases 2.3.2.2 Water 2.3.2.3 Packaging and Waste 2.3.2.4 Sustainable Sourcing 2.3.3 Enhancing Livelihoods 2.3.3.1 Smallholder Farmers 2.3.3.2 Micro-entrepreneurs 2.4 Unilever Philippines’ CSR 2.4.1 Environmental Sustainability 2.4.2 Solid Waste Management 2.4.3 Clean Water Sustainability

1. INTRODUCTION 1.1 History of Unilever 1885-1900s In the late 19th Century, at Oss in Brabant, the Netherlands, Jurgens and Van den Bergh – two family businesses of butter merchants – have thriving export trades to the UK. Product innovation, 19th century style In the early 1870s, they become interested in a new product made from beef fat and milk – margarine – which, they realize could be mass-produced as an affordable substitute for butter. Later, over in the north of England in the mid-1880s, a successful wholesale family grocery business run by William Lever starts producing a new type of household soap. The product contains copra or pine kernel oil, which helps it lather more easily than traditional soaps made of animal fats. Unusually for the time, Lever gives the soap a brand name – Sunlight – and sells it wrapped in distinctive packs. Highlights 1872 In the Netherlands, Jurgens and Van den Bergh open their first factories to produce margarine. 1884 Lever & Co starts producing Sunlight soap. 1886 Knorr – which will become part of Unilever – launches soup tablets with meat extract to provide nutritious food for low-income consumers.

1888 Jurgens and Van den Bergh both move into another prosperous market, Germany, and build factories there. 1890

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1887 By the end of this year Lever & Co is making 450 tons of Sunlight soap a week and William Lever buys the site on which he'll build Port Sunlight – a large factory on the banks of the Mersey opposite Liverpool, with a purpose-built village for its workers providing a high standard of housing, amenities and leisure facilities.

Lever & Co becomes a limited company – Lever Brothers Ltd. 1891 Van den Bergh moves to new headquarters in Rotterdam. 1894 To support and promote the growing interest in personal hygiene, Lever & Co creates an affordable new product – Lifebuoy Soap. Lever Brothers becomes a public company. Mid 1890s In the UK Lever Brothers is selling nearly 40 000 tons of Sunlight soap a year and starts expanding into Europe, America and the British colonies with factories, export businesses and plantations. 1898 By this time Van den Bergh already has a 750-strong sales force and launches a new branded margarine – Vitello. 1899 Lever Brothers introduces a new type of product, Sunlight Flakes – which makes housework easier than with the traditional hard soap bars. In 1900 Sunlight Flakes would become Lux Flakes.

1900s In the early part of the 20th Century, margarine and soap producing businesses start to move further into each other's markets. New focus on raw materials Competition and a sudden sharp rise in the cost of raw materials leads many to set up associations, promoting their interests and defending themselves against supplier monopolies.

Highlights 1904 In the UK, Lever Brothers launch another product to make housework easier - Vim, one of the first scouring powders. The company is incorporated in South Africa. 1906

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With supplies of oils and fats struggling to meet the demand created by fast growing soap and margarine production, the companies that will one day become Unilever focus on securing stable sources of raw materials.

By now Lever Brothers has a thriving export trade and factories in three European countries as well as one each in Canada, Australia and the US. It has also started enterprises in the Pacific.

1906 The same year Lever Brothers comes to an agreement with three other manufacturers to limit competition for raw materials, but is attacked by the press who, dubbing them 'The Soap Trust', accuse them of driving up prices. Lever Brothers subsequently sues the Daily Mail and in 1907 wins £50 000 damages – a massive settlement by the standards of the time. 1908 Jurgens and Van den Bergh strike a deal to form an association and share profits while continuing to compete against each other. 1909 Lever Brothers develops a palm plantation in the Solomon Islands and at the same time Jurgens and Van den Bergh set up a joint palm-planting venture in German Africa.

1910s The UK market for soap reaches saturation point, so Lever Brothers concentrates on acquisitions instead. A decade of change Meanwhile demand for margarine continues to escalate and Lever Brothers, Jurgens and Van den Bergh increase their interests in the production of raw materials. Tough market conditions also lead to the further growth of trade associations. When new technology is invented to solidify whale oil, businesses join together in the Whale Oil Pool to regulate the distribution of this important new commodity.

Highlights 1910 Lever Brothers buys its first company in West Africa, WB MacIver Ltd, to secure supplies of palm oil for Port Sunlight. 1911

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But the clouds of war are gathering. The First World War is set to make a big impact, firstly through increasing demand for soap and margarine - vital wartime supplies - and secondly through the intervention of British and German governments, which effectively place the oil and fats industry under government control.

Lever Brother's first purpose-built research laboratory is constructed at Port Sunlight. 1912 The first profit-sharing deal between Jurgens and Van den Bergh is terminated but the two companies continue to work together. 1913 Leading businesses in Europe join forces to create the Whale Oil Pool. 1914 In the year that war breaks out, companies controlled by Lever Brothers are making about 135 000 tons of soap a year, while in the Netherlands Jurgens and Van den Bergh have both acquired a number of smaller businesses and each also controls seven margarine factories in Germany. 1917 Lever Brothers acquires Pears Soap, a company founded in 1789, and Jurgens forms an alliance with Kellogg's in preparation for expansion into North America. Around this time Jurgens and Van den Bergh both establish factories in England, with one in Purfleet, Essex still manufacturing margarine today. Lever Brothers also expands into the margarine market with the launch of Planters, increases operations in South Africa and sees its American business start to move into profit.

1920s By the end of the 1920s Jurgens owns margarine factories in Scotland, Ireland and England and Lord Leverhulme controls 60% of the output of UK soap manufacturing. Unilever is formed But during the decade the margarine market suffers declining demand as butter becomes more affordable.

At the end of the decade alliances reach their ultimate conclusion and the official history of Unilever begins. First, Jurgens and Van den Bergh join together to create Margarine Unie. Then two years later - in one of the largest mergers of its time Margarine Unie teams up with Lever Brothers to create Unilever. Highlights 1920

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Before his death in 1925, Lever Brothers founder Lord Leverhulme builds up a private portfolio of companies that include some dealing with produce from his newly acquired estate in Scotland's Western Isles. Many of these, including Mac Fisheries Ltd, will eventually be bought by Lever Brothers.

Lever Brothers gains control of the Niger Company, which later became part of the United Africa Company. 1922 Lever Brothers buys Wall's, a popular sausage company which is beginning to produce ice cream to sell in the summer when demand for sausages falls. 1923 The collapse of the German economy creates even harsher trading conditions for Jurgens and Van den Bergh. 1925 Lever Brothers buys British Oil & Cake Mills, one of its major competitors and the manufacturer of New Pin Soap. 1926 Lever Brothers launches its Clean Hands Campaign. Part of its child health policy, it educates children about dirt and germs and encouraging them to wash their hands 'before breakfast, before dinner and after school.' 1927 Jurgens and Van den Bergh, who have already teamed up with two European businesses, Centra and Schicht, join forces to create Margarine Unie - the Margarine Union. The union quickly gains new members, creating a large group of European businesses involved in the production of almost all goods created from oils and fats. Planters Ltd, a Lever Brothers company, launches the first vitamin-enriched margarine - Viking. 1928 Margarine Unie acquires the French-Dutch Calvé-Delft group with factories in the Netherlands, France, Belgium and Czechoslovakia. The following year the Union also acquires the firm Hartog's.

1930s The 1930s is a tough decade – it starts with the Great Depression and ends with a new world war. Overcoming challenges These conditions make the newly merged business's need to rationalize even more urgent. So in the UK Unilever cuts its 50 soap-manufacturing companies to concentrate on fewer brands, while governments in

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1929 On 2 September Lever Brothers and Margarine Unie sign an agreement to create Unilever. The businesses initially aim to negotiate an arrangement to keep out of each other's principal interests of soap and margarine production, but ultimately decide on an amalgamation instead.

continental Europe protect local butter production through taxes, excise duties and limits on production. The end result is that Unilever's margarine and edible fat plants are cut from ten to five. But despite the recession the business continues to expand: partly through the development of new products in its established markets, and partly by acquiring companies to take it into emerging categories like frozen and convenience foods.

Highlights 1930 On 1 January Unilever is officially established. Procter & Gamble enters the UK market with the acquisition of Thomas Hedley Ltd of Newcastle and becomes one of Unilever's largest rivals. Mid 30s Soap production moves further from hard soaps to flakes and powders designed to make lighter work of household cleaning. This leads to expansion in the soap market. 1935 Vitamins A & D are added to margarine, to levels equivalent to those found in butter. 1938 After a campaign to improve public perceptions of margarine and the growth of vitamin-enriched brands including Stork in the UK and Blue Band in the Netherlands, sales of margarine rise to levels close to the highs of 1929. Late 30s With the advent of World War II, exchange controls and frozen currencies make international trading increasingly complex. In Germany, Unilever is unable to move profits out of the country and has to invest instead in enterprises unconnected with oils and fats including public utilities.

During the war years Unilever is effectively broken up, with businesses in German and Japanese-occupied territory cut off from London and Rotterdam. Focusing on local needs This leads to the development of a corporate structure in which local Unilever businesses act with a high level of independence and focus on the needs of local markets. After the war, Unilever's interests in Eastern Europe are lost with nationalization and the control exerted by the Soviet Union. The Chinese market is affected in a similar way.

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1940s

Yet throughout the 1940s Unilever continues to expand in the food market. New businesses with a diverse range of products are acquired, and resources are put into research and development for new materials and production techniques. Highlights 1941 During the Blitz, Lifebuoy soap provides a free emergency washing service to Londoners. Lifebuoy vans equipped with hot showers, soap and towels visit bombstruck areas of the capital to offer much-needed mobile washing facilities. 1943 Unilever becomes the majority shareholder in Frosted Foods which owns Birds Eye and the UK rights to a method of food preservation new to mass markets - deepfreezing. Years later, freezing will enjoy a resurgence of popularity when it's shown to be one of the best ways of naturally preserving the goodness of fresh food. Around the same time Unilever acquires Batchelor's, which specializes in freezedried vegetables and canned goods. 1945 At the end of the war, Unilever is able to regain control of its international network although remains shut out from Eastern Europe and China. The decentralization of the business that was unavoidable during wartime is continued as a policy decision. 1946 Birds Eye launches the first frozen peas in the UK. At this time meat, fish, ice cream and canned goods account for only 9% of Unilever's total turnover.

1950s From the late 40s into the 50s the development of new mass markets for consumer goods - including Africa and Asia - provide opportunities for expansion.

As new scientific advances come thick and fast, Unilever increases its focus on technology, making Port Sunlight Research its Research Division with responsibility for both UK and Dutch laboratories. It also establishes a nutrition research group in the Netherlands which later becomes the Unilever Food and Health Research Institute - a center of excellence in nutrition. During the 1950s new types of food – most famously the fish finger – are developed as a direct response to the need for nutritious food that makes use of

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A post-war consumer boom Unilever's United Africa Company grows fast, producing goods for sale in the newly independent African states, which helps create new local manufacturing industries. Meanwhile post-war prosperity in Europe, spurred by the start of the European Community, leads to a consumer boom and rising standards of living.

ingredients available in the wake of post-war rationing. Some of these are then marketed through a promising new channel – commercial TV. Highlights 1954 Sunsilk shampoo is launched in the UK and will become our leading shampoo brand – by 1959 it's available in 18 countries worldwide. 1955 On the 22 September Unilever airs the very first advertisement on UK commercial TV, which is for Gibbs SR toothpaste. 1955 Fish fingers are introduced in the UK and within a decade they account for 10% of British fish consumption. Dove soap is launched in US. 1956 Unilever Research establishes its Biology Department, which in the 1980s will become the BioScience, Nutrition and Safety unit. The PG Tips chimps make their debut appearance on the UK's newly launched commercial TV station. Aired on Christmas Day, the commercial is inspired by London Zoo's chimpanzees' tea party. It results in PG Tips becoming the UK's biggest selling tea brand. The first Miss Pears is crowned in the famous Pear's Soap beauty contest celebrating the beauty of natural, clear complexions. 1958 In the Netherlands Unilever expands into frozen foods and ice cream through the acquisition of Vita NV, which was later to become the Iglo Mora Group. 1959 Unilever launches its first margarine in a tub, replacing the traditional block wrapped in greaseproof paper, with Blauband in Germany followed by Flora in Britain.

The 1960s brings optimism and new ideas as the world economy expands and standards of living continue to rise. A time for growth As a result Unilever expands and diversifies through innovation and acquisition, setting up advertising agencies, market research companies and packaging businesses. In 1968 it tries to merge with Allied Breweries in a truly ambitious acquisition bid. But maintaining profit stability is

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1960s

difficult as the gap widens between best and worst performing operations, and funds are invested to maintain low-yield businesses. In the mid-60s, a restructure increases opportunities to grow brands internationally. Control and European profit responsibility for the biggest brands are subsequently moved from individual operating companies to category-focused teams called Co-ordinations. Highlights 1960 All washing-related brands are placed under the control of a single company, Lever Brothers and Associates. Becel, the pioneering 'health' margarine, is launched after the medical community asks Unilever to develop a cholesterol-lowering food product. Initially it's only available from pharmacies. 1961 Good Humor ice cream is acquired in the US. 1963 Cornetto, the first packaged and branded ice cream cone, launches in Europe. Becel is repositioned as diet margarine and distribution is widened to include the grocery sector. 1965 Unilever forms its own specialist packaging business, the 4P Group, turning an internal service provider into a profit earning business. Cif is launched, starting in France. 1967 Captain Birds Eye/Iglo/Frudesa makes his first appearance in TV commercials. 1968 Unilever attempts unsuccessfully to merge with Allied Breweries, one of the UK's largest brewing companies. 1969 Unilever airs the UK's first color TV commercial, which is for Birds Eye peas.

During the 1970s, hard economic conditions – including high inflation in the wake of the 1973 oil crisis – leads to flat sales. Diversifying in a tough climate The growth of large retailers including supermarkets also starts a shift in negotiating power away from manufacturers. So Unilever continues to build consumer goods businesses in sectors including transport and packaging and has a major thrust into North America with the purchase of

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1970s

National Starch. Fortunately the subsidiary United Africa Company yields large profits in oil-booming Nigeria, helping balance out the costs of businesses in Europe and the United States. But while Unilever continues to diversify in the 1970s, it stops expanding along the supply chain as third party suppliers become larger and better equipped to take over non-core tasks. Highlights 1970 Unilever acquires the meat business Zwanenberg's at Oss, which would eventually become the Unilever meat group UVG.

1971 Lipton International is acquired and Unilever's tea business becomes one of the largest in the world. Impulse deodorant is launched, starting in South Africa. By 1985 it will be sold in 30 countries. Mentadent is launched in Austria as a revolutionary gum health brand. 1973 Frigo ice cream is acquired in Spain. Unilever's subsidiary, the United Africa Company, becomes UAC International – having expanded since its inception in the 1920s to trade in 43 countries. 1977 By now, across the nine members of the European Economic Community, Unilever employs nearly 177,000 people in 200 offices and factories, investing in fixed assets at a rate of about UK £30million a year and spending about UK £1bn on supplies.

1980s At the start of the 1980s, Unilever is the world's 26th largest business. Focusing on the core Its interests include plastics, packaging, tropical plantations and a shipping line, as well as a wide range of foods, home and personal care products.

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1978 Signaling intentions to increase its presence in the US, Unilever acquires National Starch, a leading producer of adhesives, starch and special organic chemicals. It's the largest acquisition by a European company in the US at this time.

Early in the decade in a bold change of strategy it decides to refocus on core product areas with strong markets and equally strong growth potential. The necessary rationalization leads to large acquisitions and equally large divestments, including the sale of animal feeds, packaging, transport and fish farming businesses. But by 1989 the resulting growth of core businesses is clearly evident. Highlights 1982 Viennetta ice cream gateaux is first launched, starting in Britain as a Christmas specialty. 1983 Axe body spray for men (Lynx in the UK) is first launched, starting in France. 1984 Unilever announces its Core Business Strategy and large acquisitions and disposals follow over next decade. Brooke Bond is acquired in Unilever's first hostile take-over. 1985 Unipath launches a home pregnancy testing kit Clearblue, which is sold through pharmaceutical outlets in Britain. 1986 The acquisition of Naarden doubles Unilever's business in fragrances and food flavors. Chesebrough-Pond's, which owns Pond's and Vaseline, is acquired in the US. 1987 Dove is relaunched in Europe, starting in Italy.

1990s The new business focus continues with the number of categories in which Unilever competes cut from over 50 to just 13 by the end of the decade. Restructuring and consolidating This includes the decision to sell or withdraw many brands and concentrate on those with the biggest potential. Restructuring creates four core business areas: Home Care, Personal Care, Foods and Speciality Chemicals. The new

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1989 Calvin Klein and Elizabeth Arden/Fabergé are acquired while Magnum ice cream is launched in Germany.

structure is led by a new team, ExCo (the Executive Committee) and includes 12 business groups, each responsible for a mix of geographical and product areas. Also during this decade Unilever sets up a sustainable agriculture program in light of growing environmental pressures and consumer concerns about the food chain. Other initiatives to preserve water resource and source fish from sustainable stocks soon follow. Highlights 1992 Unilever enters the Czech Republic and Hungary, and establishes UniRus in Russia. 1993 Breyers ice cream is acquired in the US and Organics shampoo is first launched in Thailand. By 1995 Organics is sold in over 40 countries. 1994 The disposal of United Africa Company, Unilever's huge West African trading, brewing and textiles company, is completed. 1995 Unilever publishes its Code of Business Principles. The unprecedented decision is taken to practically eliminate trans-fats from food production in a rapid response to new research suggesting that their effect on blood cholesterol is at least as adverse as that of saturated fats. 1996 Unilever makes an ambitious commitment to source all fish from sustainable stocks and starts working with the WWF to establish a certification program for sustainable fisheries known as the Marine Stewardship Council (MSC). 1996 Hindustan Lever and Brooke Bond Lipton India merge to create India’s largest private sector company, and the Helene Curtis hair care business in the US is acquired.

Annapurna iodized salt is launched in India and starts to make a big impact on redressing iodine deficiency. 1997 Kibon ice cream is acquired in Brazil. Unilever's chemicals businesses including National Starch and Quest International are sold. 1999 Shareholders authorize a special dividend of €7.4 billion and a share consolidation to reduce the number of shares per issue.

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The Unilever Nutrition Centre is created.

2000s The 2000s have been a period of great transformation for Unilever, seeing significant organizational change – particularly the 'Path to Growth' and implementation of the ‘One Unilever’ program. Forging new paths The 21st century started with the launch of Path to Growth – a strategy to transform the business, leading to more acquisitions and the rationalization of manufacturing and production sites to form centers of excellence. This was followed by the One Unilever program, aligning the organization behind a single strategy, simplifying our business and leveraging our scale more effectively.

Our mission 'to meet every day needs for nutrition, hygiene and personal care with brands that help people look good, feel good and get more out of life' was launched in 2004. Reaching across the whole organization, how we are 'bringing Vitality to life' continues to provide the basis for our category, regional and functional strategies today. The last decade has seen a fundamental shift in people’s shopping and purchasing habits. With consumers becoming more socially, environmentally and civically motivated, we are increasingly embedding sustainable thinking into our day-to-day activities. In 2002, the Lifebuoy brand launched its hygiene education program, SwasthyaChetna. This has reached nearly 51,000 villages and made a difference to the lives of 120 million people in rural areas of India.

As the end of the 2000s draw to a close, the whole world is experiencing unprecedented economic uncertainty. Unilever was born at the time of the Great Depression of the 1930s and has had to deal with many economic and financial crises since. Being able to respond quickly to rapidly changing market conditions will ensure it emerges from the recession stronger than ever.

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In 2004, we became a founding member of the Roundtable on Sustainable Palm Oil (RSPO) – a body which we currently chair. In 2008, in an effort to halt deforestation, we announced our commitment to draw all our palm oil from certified sustainable sources by 2015. In 2007, Lipton launched a sustainable tea partnership with the Rainforest Alliance, announcing our aim to have all Lipton Yellow Label and PG Tips tea bags in Western Europe sourced from Rainforest Alliance Certified™ farms by 2010 and all Lipton tea bags globally similarly sourced by 2015.

Highlights 2000 Bestfoods is acquired in the second-largest cash acquisition in history. Other acquisitions include Slim-Fast Foods, Ben & Jerry's and the Amora-Maille culinary business in France. The Unilever Health Institute – a center of excellence in nutrition, health and Vitality – is launched. 2001 By 2001 Unilever has cut its brands from 1,600 to 900. DiverseyLever, Elizabeth Arden and Unipath are sold. 2002 The portfolio is reshaped and enhanced through acquisitions and the sale of 87 businesses without acceptable growth or margin potential, generating €6.3 billion of sale proceeds. 2003 Unilever Health Institute opens regional centers in Bangkok and Accra, Ghana. Unilever is consulted by the World Health Organization regarding the development of a Global Strategy on Diet, Physical Activity and Health (published May 2004). Our Nutrition Policy and Nutrition and Health Academy are launched. 2004 The Vitality mission is launched and the new Unilever brand rolled out, including the new logo which represents the diversity of Unilever, our products and our people. 2005 Antony Burgmans becomes non-executive chairman of both Unilever N.V. and Unilever PLC while Patrick Cescau takes on the new role of group chief executive, responsible for all operations.

The Nutrition Enhancement Programme is completed, through which 16,000 products are assessed for levels of trans fats, saturated fats, sodium and sugars, and where necessary, action taken. 2006 Antony Burgmans steps down as Chairman of Unilever after being with the company for over 35 years. Michael Treschow succeeds him as the first independent Chairman of the Boards of Unilever.

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Unilever sells its global prestige fragrance business, Unilever Cosmetics International (UCI), to Coty Inc., of the US. The sale is in line with Unilever’s strategy to focus on core categories.

New technology helps create Small & Mighty, the first super-concentrated liquid laundry detergent that uses one-third the packaging, one-third the water and onethird of the transport of dilute liquids. 2007 Unilever announces agreements to acquire the Buavita vitality drinks brand in Indonesia and Inmarko, the leading ice cream business in Russia. Unilever commits to source all of its tea from sustainable, ethical sources, asking the Rainforest Alliance to start auditing its tea suppliers with immediate effect. The company aims to win certification for all Lipton Yellow Label and PG Tips tea bags sold in Western Europe by 2010 and all Lipton tea bags sold globally by 2015. 2008 Home & Personal Care and Foods are combined into a single category structure, and Central & Eastern Europe is managed within an enlarged region along with Asia and Africa. Western Europe becomes a standalone region. Unilever announces the sale of several of its businesses including its North American laundry business, its edible oil business in Côte d'Ivoire together with its interests in local oil palm plantations, Palmci and PHCI, and its Bertolli olive oil and vinegar business with Grupo SOS. The company commits to move to sustainable palm oil sourcing by 2015, purchasing its first batch of certified sustainable palm oil already in November. 2008 For the tenth year running, Unilever is named foods sector leader in the Dow Jones Sustainability Indexes – the only company ever to achieve such an accolade. 2009 Paul Polman takes over as Chief Executive Officer on 1 January, the first time the Boards chose an external candidate to this position and succeeding Patrick Cescau who retired after 35 years of service to the company.

The company purchased 185,000 tons of sustainable palm oil via GreenPalm certificates, accounting for around 15% of its total needs. Around 80% of Lipton yellow Label and PG Tips tea bags sold in Western Europe was sourced from certified farms. Rainforest Alliance Certified tea also became available in the US, Japan and Australia. Nearly 17 million school meals were delivered to 80,000 children through the company’s partnership with the World Food program.

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Unilever sharpened its portfolio with the announced acquisitions of Sara Lee’s personal care brands, the TIGI professional hair care brands and the Baltimor ketchup business in Russia.

Towards the end of the year, the company launched a renewed vision: to double the size of its business while reducing its overall impact on the environment.

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1.2 Unilever Logo 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. Our identity expresses Unilever's core values, with each icon representing an aspect of the business. Obviously the big blue ‘U’ of our logo stands for Unilever. But look a little closer and you’ll see there’s much more to it. Our logo was designed to include 24 icons, each of which represents something important to Unilever. From a lock of hair symbolizing our shampoo brands to a spoon, an ice cream, a jar, a tea leaf, a hand and much more, the little icons all have a meaning.

1.2.1 Unilever Icons Sun Our primary natural resource, the sun evokes Unilever's origins in Port Sunlight and can represent a number of our brands. Flora, Slim-Fast and Omo all use radiance to communicate their benefits.

Hair A symbol of beauty and looking good. Placed next to the flower it evokes cleanliness and fragrance; placed near the hand it suggests softness. Sauces or spreads Represents mixing or stirring. It suggests blending in flavors and adding taste.

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Bee Represents creation, pollination, hard work and bio-diversity. Bees symbolize both environmental challenges and opportunities.

Spoon A symbol of nutrition, tasting and cooking.

Fish Represents food, sea or fresh water.

Bird A symbol of freedom. It suggests a relief from daily chores, and getting more out of life. Lips Represent beauty, looking good and taste.

Recycle Part of our commitment to sustainability.

Frozen The plant is a symbol of freshness, the snowflake represents freezing. A transformational symbol. Heart A symbol of love, care and health.

Wave and Liquid Symbolizes cleanliness, freshness and vigor; a reference to clean water and purity

DNA The double helix, the genetic blueprint of life and a symbol of bioscience. It is the key to a healthy life. The sun is the biggest ingredient of life, and DNA the smallest.

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Hand A symbol of sensitivity, care and need. It represents both skin and touch. Flower Represents fragrance. When seen with the hand, it represents moisturizers or cream.

Palm tree A nurtured resource. It produces palm oil as well as many fruits – coconuts and dates – and also symbolizes paradise. Bowl A bowl of delicious-smelling food. It can also represent a ready meal, hot drink or soup. Spice & flavors Represents chili or fresh ingredients.

Sparkle Clean, healthy and sparkling with energy.

Tea A plant or an extract of a plant, such as tea. Also a symbol of growing and farming. Ice cream A treat, pleasure and enjoyment.

Particles A reference to science; bubbles and fizz.

Container Symbolizes packaging - a pot of cream associated with personal care.

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Clothes Represent fresh laundry and looking good.

1.3 Company Vision Unilever products touch the lives of over 2 billion people every day – whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

A clear direction The four pillars of our vision set out the long term direction for the company – where we want to go and how we are going to get there: We work to create a better future every day

We will inspire people to take small everyday actions that can add up to a big difference for the world. We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact. We've always believed in the power of our brands to improve the quality of people’s lives and in doing the right thing. As our business grows, so do our responsibilities. We recognize that global challenges such as climate change

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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.

concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are.

1.4 Purpose and Principles Our corporate purpose states that to succeed requires "the highest standards of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact." Always working with integrity Conducting our operations with integrity and with respect for the many people, organizations and environments our business touches has always been at the heart of our corporate responsibility.

Positive impact We aim to make a positive impact in many ways: through our brands, our commercial operations and relationships, through voluntary contributions, and through the various other ways in which we engage with society. Continuous commitment We're also committed to continuously improving the way we manage our environmental impacts and are working towards our longer-term goal of developing a sustainable business. Setting out our aspirations Our corporate purpose sets out our aspirations in running our business. It's underpinned by our code of business Principles which describes the operational standards that everyone at Unilever follows, wherever they are in the world. The code also supports our approach to governance and corporate responsibility.

1.4.1 Code of Business Principles Our code of business principles describes the operational standards that everyone at Unilever follows, wherever they are in the world. It also supports our approach to governance and corporate responsibility. Standard of conduct

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Working with others We want to work with suppliers who have values similar to our own and work to the same standards we do. Our Business partner code, aligned to our own Code of business principles, comprises ten principles covering business integrity and responsibilities relating to employees, consumers and the environment.

We conduct our operations with honesty, integrity and openness, and with respect for the human rights and interests of our employees. We shall similarly respect the legitimate interests of those with whom we have relationships. Obeying the law Unilever companies and our employees are required to comply with the laws and regulations of the countries in which we operate. Employees Unilever is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of our company. We will recruit, employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed. We are committed to safe and healthy working conditions for all employees. We will not use any form of forced, compulsory or child labor. We are committed to working with employees to develop and enhance each individual’s skills and capabilities. We respect the dignity of the individual and the right of employees to freedom of association. We will maintain good communications with employees through company based information and consultation procedures.

Consumers Unilever is committed to providing branded products and services which consistently offer value in terms of price and quality, and which are safe for their intended use. Products and services will be accurately and properly labeled, advertised and communicated. Shareholders Unilever will conduct its operations in accordance with internationally accepted principles of good corporate governance. We will provide timely, regular and reliable information on our activities, structure, financial situation and performance to all shareholders. Business partners Unilever is committed to establishing mutually beneficial relations with our suppliers, customers and business partners. In our business dealings we expect our partners to adhere to business principles consistent with our own.

Public activities Unilever companies are encouraged to promote and defend their legitimate business interests. Unilever will co-operate with governments and other organizations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect legitimate business interests. Unilever neither supports political parties nor

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Community involvement Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfill our responsibilities to the societies and communities in which we operate.

contributes to the funds of groups whose activities are calculated to promote party interests. The environment Unilever is committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustainable business. Unilever will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. Innovation In our scientific innovation to meet consumer needs we will respect the concerns of our consumers and of society. We will work on the basis of sound science, applying rigorous standards of product safety. Competition Unilever believes in vigorous yet fair competition and supports the development of appropriate competition laws. Unilever companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations.

Business integrity Unilever does not give or receive, whether directly or indirectly, bribes or other improper advantages for business or financial gain. No employee may offer, give or receive any gift or payment which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected immediately and reported to management. Unilever accounting records and supporting documents must accurately describe and reflect the nature of the underlying transactions. No undisclosed or unrecorded account, fund or asset will be established or maintained.

Compliance - monitoring - reporting Compliance with these principles is an essential element in our business success. The Unilever Board is responsible for ensuring these principles are applied throughout Unilever. The Chief Executive Officer is responsible for implementing these principles and is supported in this by the Corporate Code Committee chaired by the Chief Legal Officer. Members of the Committee are the Group Secretary, the Chief Auditor, the SVP HR and the SVP Communications. The Global Code Officer is Secretary to the Committee. The Committee presents quarterly updates to the

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Conflicts of interests All Unilever employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. Unilever employees must not seek gain for themselves or others through misuse of their positions.

Corporate Responsibility and Reputation and the Audit Committee, half-yearly reports to the Unilever Executive and an annual report to the Board. Day to day responsibility is delegated to all senior management of the regions, categories, functions, and operating companies. They are responsible for implementing these principles, if necessary through more detailed guidance tailored to local needs, and are supported in this by Regional Code Committees comprising the Regional General Counsel together with representatives from all relevant functions and categories. Assurance of compliance is given and monitored each year. Compliance with the Code is subject to review by the Board supported by the Corporate Responsibility and Reputation Committee and for financial and accounting issues the Audit Committee. Any breaches of the Code must be reported in accordance with the procedures specified by the Chief Legal Officer. The Board of Unilever will not criticize management for any loss of business resulting from adherence to these principles and other mandatory policies and instructions. The Board of Unilever expects employees to bring to their attention, or to that of senior management, any breach or suspected breach of these principles. Provision has been made for employees to be able to report in confidence and no employee will suffer as a consequence of doing so.

1.5 Company Structure 1.5.1 Legal Structure Unilever operates as a single business entity. NV and PLC are the two parent companies of the Unilever Group, having separate legal identities and separate stock exchange listings for their shares. To ensure unity of governance and management, they have the same Directors and are linked by agreements. The Equalization Agreement regulates the mutual rights of the two sets of shareholders, including dividends. There is a one-for-one equivalence between the shares.

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Jointly-owned PLC-owned NV-owned PLC NV operating operating shareholders shareholders operating PLC NV companies companies companies

Equaliza

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Figure 1. Legal Structure of Unilever Group

1.5.2 Management Structure Category President for Foods, Home and Personal Care is responsible for Category strategies, brand development and innovation. Regional Presidents are responsible for managing the business, deploying brands and innovations effectively and winning with customers. They are supported by the Finance and Human Resource functions.

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President PresidentChief Asia, Group Global President Chief Africa, Human Chief Foods, Financial President Western Central Executive Resource Home Officer and Europe and Officer Eastern Personal Europe Care Americas

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Figure 2. Management Structure of Unilever

1.5.3 Executive Directors The Executive directors are those members of the Unilever executive (UEX), including the group chief executive, who are also directors of Unilever. Paul Polman – Chief Executive Officer Paul Polman, Chief Executive Officer, was appointed an Executive Director to the Boards of Unilever PLC and Unilever NV in October 2008, the first time an external candidate was chosen for the role. Jean-Marc Huët - Chief Financial Officer Jean-Marc Huët joined Unilever in February 2010 as Chief Financial Officer.

The non-executive directors are the independent element in Unilever's governance. Michael Treschow – Chairman Unilever N.V. and PLC Michael has had a distinguished career with a range of multinational companies in both Executive and Non-Executive roles. He has been awarded prestigious honors by Sweden, Spain and France in recognition of his contribution to trade relations.

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1.5.4 Non-executive Directors

Louise Fresco Louise Fresco is an agricultural scientist and a Professor of International Development and Sustainability at the University of Amsterdam. Ann Fudge An MBA graduate of Harvard University, Ann M. Fudge is an honorary director of Catalyst, a director of The Rockefeller Foundation and is on the board of overseers of Harvard University. Charles E. Golden An MBA graduate of Lehigh University in Pennsylvania, Charles E. Golden subsequently distinguished himself in two industries: automotive and pharmaceutical. Dr. Byron E. Grote Byron Grote has a PhD in Quantitative Analysis from Cornell University. After holding various executive posts within BP, he was appointed as a Managing Director in 2000 and became Chief Financial Officer in 2002. Hixonia Nyasulu A former Unilever marketing employee, Hixonia Nyasulu now chairs the Board of Sasol Ltd and serves on the JPMorgan SA Advisory Board.

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The Rt. Hon Sir Malcolm Rifkind, MP Sir Malcolm Rifkind has been a Member of the UK Parliament since 1974 and served as a minister under Conservative governments over an 18-year period, eventually becoming Foreign Secretary. He is also a qualified barrister and Queen’s Counsel. Kees J. Storm Kees J. Storm’s financial career saw him rise to become Chairman at AEGON in 1993 – a position which he held with great distinction until 2002. He now serves on supervisory Boards at KLM, PON Holdings, AEGON, Baxter and InBev, as well as at Unilever. Jeroen van der Veer Jeroen van der Veer studied mechanical engineering at Delft University and economics at Rotterdam University and has an honorary doctorate from Port Harcourt University (Nigeria). He joined Shell in 1971, was appointed as Chief Executive in 2004 and retired in 2009.

Paul Walsh Paul Walsh was appointed Chief Executive Officer of Diageo in 2000. Recognizing his success in building Diageo into a world renowned company, Paul received the ‘Decade of Excellence Award’ at the UK National Business Awards in 2008.

1.5.5 Non-executive Directors The Unilever Executive (UEx) is responsible for managing profit and loss, and delivering growth across our regions, categories and functions. Paul Polman – Chief Executive Officer Paul Polman, Chief Executive Officer, was appointed an Executive Director to the Boards of Unilever PLC and Unilever NV in October 2008, the first time an external candidate was chosen for the role. Douglas Anderson Baillie – Chief Human Resource Officer Douglas Baillie is a British national, born (1955) and educated in Zimbabwe. Doug graduated from the University of Natal with majors in Business Finance, Marketing and Business Administration and joined Unilever South Africa in 1978. Professor Geneviève Berger – Chief Research & Development Officer Geneviève Berger was educated in physics and medicine, and holds three doctorates: a PhD in Physics, a PhD in Human Biology and a Medical Doctorate. Jean-Marc Huët - Chief Financial Officer Jean-Marc Huët joined Unilever in February 2010 as Chief Financial Officer.

Harish Manwani – President, Asia, Africa, Central and Eastern Europe Harish Manwani is an honors graduate from Mumbai University and has a master's degree in management studies. He also attended the Advanced Management Programme at the Harvard Business School.

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Dave Lewis - President, Americas Dave Lewis has had a long career at Unilever, starting in 1987 and moving through different roles in home and personal care in Europe, South America and Asia before being appointed to UEx in 2010.

Michael B. Polk – President Global Foods, Home & Personal Care Michael Polk serves on the Executive Board (UEx) of Unilever. He was appointed President, Global Foods, Home and Personal Care in June 2010. Pier Luigi Sigismondi - Chief Supply Chain Officer Pier Luigi Sigismondi was appointed Chief Supply Chain Officer and a member of the Unilever Executive in September 2009. An Italian national, he holds a Masters in Industrial & Systems Engineering from the Georgia Institute of Technology, Atlanta, Georgia. Keith Weed - Chief Marketing and Communication Officer Keith Weed began his career with Michelin and joined Unilever in 1983, moving on to senior positions in France and the USA and global roles. He holds a first-class degree in engineering from the University of Liverpool. Jan Zijderveld - President, Unilever Western Europe Jan Zijderveld was appointed President, Unilever Western Europe, and joined the Unilever Executive in February 2011.

1.5.6 Senior Corporate Officers Unilever's senior corporate officers are responsible for ensuring that Board meetings and Board committee meetings are supplied with the information they need. Tonia Lovell - Chief Legal Officer & Group Secretary Tonia Lovell has a degree in law from Sidney Sussex College, Cambridge and was admitted as a solicitor and a member of the Law Society in November 1993.

1.6 Unilever Brands From sumptuous soups to sensuous soaps, our products all have one thing in common. They help you get more out of life.

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Charles Nichols - Group Controller Charles Nichols was born in the UK in 1961. He has a degree in chemistry from Jesus College, Oxford and is a fellow of the Chartered Association of Certified Accountants.

1.6.1 Food Brands Unilever is one of the world's leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice.

The Becel/Flora brand offers consumers heart-healthy products, so take 'heart for living!'. Heart-healthy choice For more than 40 years Unilever has played a leading role in helping consumers maintain healthy hearts. Recognizing Unilever as a world leader in nutritional research, the medical profession asked the company to create a healthy alternative to butter, lard and hard margarines.

Bringing the Mediterranean lifestyle into your home.

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The pleasure principle Everything we do at Bertolli is rooted in the pleasures and principles of Italian cuisine. Like the Italians, we take fine ingredients, combine them with specially selected olive oil, and produce foods that are deceptively simple and totally delicious. So add some Bertolli magic, with pasta and bruschetta dishes that form an important part of Italian cooking.

For decades, our products, ranging from margarine spreads and cooking margarine to cream alternatives and cheese spreads, have been a daily source of essential nutrients that help every family member to grow, develop and thrive. Healthy growth & development Our margarine is made from high quality vegetable oils, so it is an important source of essential fats and vitamins A, D and E for which there are not many other dietary sources. A thin layer of spread on bread every day makes a big contribution to the healthy growth and development of the whole family.

Heartbrand ice creams bring a taste of the summer to any day. Taste the fun side of life Mention ice cream and most people think of the Heartbrand. The brand with the big red heart logo is behind many much-loved ice cream classics from indulgent treats like Magnum and Cornetto to the refreshing fruit tastes of Solero and family favorites like Viennetta.

Sensational food providing sensational moods.

At Knorr, we want people to enjoy good food, any day, any time. Good food matters

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Bringing out the best in dressings The Hellmann's worldwide brand family, consisting of Hellmann's, Amora, Calvé and Wish-Bone, is the largest dressings business around the globe. Hellmann's is also the world's number one mayonnaise brand.

Knorr believes that good food matters. It adds untold pleasure to our lives. And everyday meals can be just as magical as special occasions. Food is not just fuel; it really is the glue of life. This conviction lies at the heart of Knorr's success - it is Unilever's number one brand.

Lipton is one of the world's great refreshment brands, making a big splash in the global beverages market with tea-based drinks including leaf tea, infusions, readyto-drink tea and other healthy, refreshing alternatives to soft drinks. Making a big splash in the global beverages market Lipton continues to lead as the global tea beverage market, making a big splash with a variety of tea-based drinks.

Millions of people all over the world have lost weight with Slim·Fast. Managing your weight For more than 25 years, Slim·Fast has been helping people lose weight – and keep it off!

1.6.2 Home Care Brands

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In many parts of the world we lead the home care market, with brands such as Omo, Surf, Comfort and Cif. It's more than just hygiene – with homes and clothes that are clean and cared for, we help you get more out of life.

Everyone knows real life is dirty. And there's no point in pretending it's easily taken care of – it has to be cleaned thoroughly. Cif is the only everyday cleaner that deals with even the toughest dirt without damaging surfaces. A history of innovation The arrival of Cif in 1969, first launched in France and later rolled out in 45 countries, heralded the end of scouring powders. Initially, the brand focused on cream cleansers for the kitchen and bathroom, underpinned by its famous 'Skater' ads, which highlighted how scouring powders can 'scratch like skates on ice'.

Caring for your clothes is important as it allows you and your family to look and feel fresh and clean. But Comfort does more than this. It helps you and your loved ones feel cared for every day. New ideas to soften everyday life As well as delivering exceptional softness, our range of fabric conditioners now includes a variety of sensuous fragrances, enabling you to give your family's clothes that little bit of extra care and freshness. 'Wild pear and gingko', 'lily and rice flower' and 'passion flower and ylang-ylang' are just some of the new versions we've unveiled.

Protecting families for nearly 100 years Available in 35 countries worldwide, from the Netherlands and India to the Philippines, Domestos has a long history. In the 1920s it was sold door to door in the UK. Originally it was used by housewives as a cotton and household surface whitener.

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The sheer power of Domestos bleach gives you the confidence you need, eradicating all known germs. With Domestos, you can be absolutely certain that the job is done.

Remember when you were a child? How you were free to explore, returning home covered in dirt and other stains that you wore like the badges of an intrepid discoverer? Dirt is good! Although it might sound strange for a leading laundry brand like OMO to say this, we believe, like you, that this type of dirt is good: it's an important part of a child's development. It's how kids learn, express their creativity and even bolster their immune systems. At a time when growing numbers of children are leading sedentary lives, often cocooned in the home, glued to the TV and the web, we're not afraid to celebrate this time-honored truth.

Radiant knows that whiteness and brightness can shine in, not just out. There's something about brilliantly white clothes that gives you that extra lift and confidence to take on the day's challenges. And no other brand knows more about delivering superior whiteness than Radiant.

Created in 1885, the Sunlight brand is still innovating and using the magic of natural ingredients to create unbeatable results over a hundred years later.

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Giving you that extra confidence Radiant's 'pure clean technology' produces the purest of whites without leaving behind any unsightly or wasteful residue - a common problem in developing markets where rival products often contain contaminated ingredients.

A remarkable history William Hesketh Lever was determined to revolutionize Victorian England's standards of cleanliness and hygiene: so he created Sunlight Soap. His revolutionary product was the first one ever created by the company that is now Unilever, and today's hand dishwashing products build on this illustrious heritage.

Surf is on a mission to make everything it touches brighter – through cleaning and more! Brightening up the laundry A generous, big hearted brand that always looks on the bright side – Surf believes in giving you more than just cleaning. It delivers little feel good moments when it comes to laundry – gems of sensory pleasure that make the process and end result more enjoyable.

1.6.3 Personal Care Brands Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are recognised and respected around the world. They help consumers to look good and feel good – and in turn get more out of life.

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In the film The Matrix, Keanu Reeves is given two choices. He can either take a blue pill and wake up in the morning as if nothing has happened or pop a red pill and enter the unpredictable 'wonderland' of the Matrix. As millions of guys around the world know, Axe has taken the red pill. Axe takes the 'red pill' With its coolly seductive fragrances and packaging, the brand has established itself as the world's top male grooming brand by coming up with a constant stream of new ideas to keep guys a step ahead in the mating game. Each year, for example, we launch a new deodorant fragrance.

In a world of hype and stereotypes, Dove provides a refreshingly real alternative for women who recognize that beauty comes in all shapes and sizes. A brand that keeps to its clinically proven promises To help you enjoy your own brand of beauty, Dove provides a wide range of cleansing and personal care products that make a genuine difference to the condition and feel of your skin and hair. Now the world's top cleansing brand, Dove started its life in 1957 as a beauty soap bar that was clinically proven to be milder for dry, sensitive skin than other leading soaps: half of women have dry skin.

Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions that enable people to lead a life without fear of hygiene anxieties and health consequences. Improving health & hygiene for over 100 years Lifebuoy is one of Unilever's oldest brands, a brand that was truly 'global' before the term 'global brand' was invented. Lifebuoy Royal Disinfectant Soap was launched in 1894 as an affordable new product in the UK, to support people in their quest for better personal hygiene. Soon after launch, Lifebuoy soap travelled across the world, reaching countries such as India, where even today it is still the market leading brand.

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Lux provides prestige-inspired beauty products made accessible to all which indulge the senses to make your skin and hair smell, look and feel more alluring and attractive, and inspire you to revel in the pleasure of expressing your beauty.

A starring role Since its launch in 1924, Lux has had a glittering connection to some of the most beautiful and best-known stars in history. Through the years, actresses including Elizabeth Taylor, Marilyn Monroe, Brigitte Bardot and more recently Sarah Jessica Parker, Catherine Zeta Jones and Jennifer Lopez have endorsed the brand. In Asia, where Lux is one of the continent’s leading beauty brand names, a selection of stunning Bollywood actresses have endorsed Lux products, with AishwaryaRai one of the best-known brand ambassadors.

Pond's delivers products that make a real difference to women's skin and the way they live their lives. A rich heritage The impressive track record of Pond's began when Theron T. Pond, a pharmacist from Utica New York, introduced 'Pond's Golden Treasure' in 1846, a witch-hazel based wonder product. In 1886 it was relaunched as Pond's Extract and in 1914 Pond's Cold Cream and Vanishing Cream marked the brand's evolution to a beauty icon. By the mid-1920s it was reflecting this positioning with endorsements by society beauties. Its stylish image was underpinned by guarantees of product delivery and an understanding of women's beauty routines and needs.

What makes Rexona tick? They happen every day. Those unexpected moments when the adrenalin starts to pump and the sweat starts to flow. With Rexona's unique body-responsive technology, which releases extra protection as you need it, you'll know that your deodorant won't let you down. Better still, everyone can enjoy this peace of mind

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Rexona gives you the confidence to handle whatever the day has in store because you know your deodorant won't let you down.

as Rexona is the only deodorant tailored to the needs of both sexes, with separate product ranges for each.

Protecting and enhancing your oral health 24 hours a day. Signal – bringing mouths to life Signal believes your mouth is the most expressive part of you. Through products such as Signal White System we keep your mouth at its healthiest best, letting your mouth live to its full potential. Close Up – the closer, the better Close Up knows that being close is a fundamental human need. Each Close Up product, like the red gel with long lasting freshness, gives you the social confidence you need to get closer to others.

Sunsilk provides real solutions to women's everyday hair needs everywhere.

TIGI® is a hair care brand that is strongly influenced by fashion and sold only through professional hairdressing salons. With its unique position in the global

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Understanding what girls want & how girls feel For 20-something single girls, hair is often an emotional rollercoaster. Sunsilk understands and has designed its wash, care and styling collections to address the most common hair dramas in 80 countries around the globe.

professional hairdressing opportunities for Unilever.

market,

TIGI®

presents

exciting

new

business

Designed by hairdressers for hairdressers TIGI® was conceived by the four Mascolo brothers, providing them with the 'liquid tools' to style and finish their clients' hairstyles. The brand’s comprehensive educational programs motivate and inspire hairdressers to create the latest looks using TIGI® products. The products are promoted by hair 'collections' from the TIGI® Creative Team, photographed by Anthony Mascolo who leads the image and creative side of the business.

At any age, at any time, no matter what your skin need, the Vaseline skin care team wants everybody to be able to enjoy great, healthy skin every day. Healthy skin everyday In 1869, Robert Chesebrough, a dispensing chemist, discovered something amazing. He discovered a 100% natural product, rich in minerals from deep within the earth yet totally pure, which had remarkable healing properties when applied to cuts, burns and abrasions of the skin. That product was branded Vaseline petroleum jelly.

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2. CORPORATE SOCIAL RESPONSIBILITY 2.1 Philanthropy “A notable trend emerging from the CSR policies of each brand is an emphasis on philanthropy and the development of partnerships with charities and community organizations.” –Leah Armstrong, Sustainability and philanthropy top CSR agenda

2.1.1 Unilever United States Foundation The Foundation makes contributions to recipients with clearly defined, achievable goals that have demonstrated their effectiveness and fiscal responsibility.

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Sample grants: $ 15,000 to African Medical & Research Fund , New York , NY American Cancer Society, Multiple Locations $ 4,000 to Cardinal Shehan Center , Bridgeport , CT $ 10,000 to Educational Broadcasting Corporation , New York , NY $ 20,000 to Food Research & Action Center , Washington , DC $ 1,500 to Greater Chicago Food Depository , Chicago , IL Habitat for Humanity, Multiple Locations $ 6,000 to Jackie Robinson Foundation , New York , NY $ 1,500 to Jefferson City Community Concert Association , Jefferson City , MO $ 60,000 to Juvenile Diabetes Research Foundation of New York , New York , NY $ 15,000 to Kids in Crisis , Cos Cob , CT $ 3,000 to Larkin Center (IL) , Elgin , IL $ 5,000 to Liberty Science Center , Jersey City , NJ $ 3,000 to Manhattan Institute for Policy Research , New York , NY $ 1,000 to Maryland School for the Blind , Baltimore , MD $ 3,000 to NOW Legal Defense & Education Fund , New York , NY $ 21,000 to National Black MBA Association , Chicago , IL $ 3,000 to National Legal Center for the Public Interest $ 3,000 to National Womens Law Center , Washington , DC $ 5,000 to New York Botanical Garden , New York , NY Special Olympics, Several Locations $ 5,000 to Stevens Institute of Technology , Hoboken , NJ $ 63,000 to Student Conservation Association , Charlestown , NH $ 25,000 to Third Way Foundation , Washington , DC $ 4,000 to Tuskegee University , Tuskegee , AL $ 6,000 to United Way of Central Maryland , Baltimore , MD

$ 5,000 to Victory Junction Gang Camp , Randleman , NC $ 3,000 to Washington Legal Foundation , Washington , DC (Source: http://www.accessphilanthropy.com/funderinnews.php?funderID=1248)

2.1.2 Internet News Knorr Donates P1 Million to a Feeding Program If you watch local TV channels regularly, you've probably seen the Knorr Cubes commercial where Chef Tristan Encarnacion challenged Filipino consumers to present a seasoning granule with more meat content than Knorr Chicken Cubes. The deal was, if a consumer finds a seasoning granule meatier than Knorr Chicken Cubes, he or she can get a prize of P1 million. But, should there be no product proven to be meatier, the P1 million prize will be donated to fund a feeding program to help improve the nutritional level of Filipino kids. Unilever Philippines tapped Eurofins Analytik Gmbh, an independent third party testing firm in Germany, and worked in accordance with an FDA-approved testing protocol for meat content analysis to ensure credibility. Despite the entries submitted, results showed that Knorr Chicken Cubes' meat content is at least five times more than other local brands'. Chef Tristan affirms, “When it comes to making great soups, no other brand beats Knorr Cubes! For me, soup is not a good enough soup without the very meaty taste of Knorr Cubes.” And since no one won the challenge prize, Knorr Cubes donated P1 million to Kabisig ng Kalahi – a non-government organization that does community-based feeding programs in selected depressed communities in the Philippines.

According to Ms. Bajeng Cruz, Knorr Brand Manager, they chose Kabisig because it "has a module that's already working so we need not reinvent the wheel to do something about children's malnutrition." Knorr has been partnering with Kabisig since 2002 in operationalizing a feeding program. The P1 million donation will provide hundreds of children with nutritious meals and will help in training more parents to

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The money will greatly help address hunger and malnutrition, which continue to affect thousands of school-age Filipino children. One province at a time, Knorr is making a dent in reducing the national malnutrition level among school children through its Makulay ang Buhay ng Batang Pinoy (MBBP) feeding program.

prepare healthy, affordable meals for their families. To date, the MBBP feeding program has already benefited more than 20,000 malnourished Filipino children.

“Our commitment to good food goes beyond providing excellent cooking aids,” says Cruz. “We believe that good food matters and the Sabaw Challenge gave us an opportunity to live out that commitment by offering undernourished kids and their families the value of quality and healthful cooking. We can only be very happy and proud to be of help in this way.” The P1 million donation was turned over to Ms. Vicky Wieneke of Kabisig ng Kalahi last March 16 in a ceremony witnessed by members of the media in the Magkaibigan Hall at the Unilever compound in Manila. (Source: http://mommywrites.blogspot.com/2011/03/if-you-watch-local-tv-channels.html)

Unilever Vitality Village at Gawad Kalinga The Unilever Vitality Village is a long-term commitment of Unilever Philippines to community building in the city of Manila, particularly in the community of Baseco, Tondo. Through the years, more and more families have benefitted from the houses that the employees have helped built – either by volunteering their time or raising funds to help finance the construction. Last 1 April 2011, Manila Mayor Alfredo Lim together with Unilever Chairman and CEO Fernando Fernandez welcomed eight (8) more families into the existing 30-family community.

The recipients of the new houses are the following: Lolito and Mary Anne Razos, Teofisto and Adelaida Nedic, Rogelio and Rosalina Garcia, Crispina Raco, Norodin and Michelle Joy Pakil, Aurelio and Violeta Brimon Jr., Catherine Hispano and Katrina Hispano. Unilever shares Gawad Kalinga’s mission of building the nation through creating peaceful and productive communities. And now, it hopes to make it an ecoconscious community as well.

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Building houses for the community is not enough. “Unilever aims to inspire people to create a big difference through small everyday actions. The company hopes to achieve this by encouraging the families of the Vitality Village to be a model community when it comes to protecting the environment,” shares Fernando Fernandez. Together with turning over the new houses, Unilever has also donated trash bins for each of the 38 families who reside in the Vitality Village, encouraging everyone to properly segregate and dispose of their wastes. A sachet recovery program was also launched where all flexible wastes recovered will be converted into pavers that will be given back to the community.

(Source:

http://rictandag.wordpress.com/2011/04/21/unilever-vitality-village-at-gawad-

kalinga/)

Gawad Kalinga house turnover Residents of Baseco Compound in Port Area, Manila were given a reason to celebrate as ten (10) more families from this community were granted houses in the Unilever Vitality Village of Gawad Kalinga. Present during the official turnover of houses were Manila Mayor Alfredo Lim, Gawad Kalinga Executive Director Tony Meloto and Unilever Chairman and CEO Fernando Fernandez. “We share Gawad Kalinga’s mission of building the nation through creating peaceful and productive communities. The small actions that each Unilever employee has undertaken in contributing to the building of these homes have made a big difference in the lives of the people who will now have a place to call their home. And we are happy to have been a part of it”, shares Fernandez. The Unilever Vitality Village is the company’s commitment to the residents of Baseco, done in partnership with the City of Manila and Gawad Kalinga. The site is the first of its kind, with a community complex composed of a daycare center, youth and sports area and a plaza which will help develop the community further. Funding for the village comes from the contributions of Unilever employees from various fund raising activities and which were matched by the company To date, Unilever has turned over 30 houses with the remaining commitment of 30 more houses and two commercial buildings to be finished in the next two years. (Source: http://www.unilever.ph/aboutus/newsandmedia/pressreleases/gawadkalingahouseturnover .aspx)

Unilever hosts Rotary Club of Manila

As the first ever Rotary Club in Asia and the biggest in the Philippines, the Rotary Club of Manila boasts of a membership that consists of government officials, chief executives and operating officers of various local and multi-national companies, members of the diplomatic corps, the judiciary and heads of financial institutions.

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The Rotary Club of Manila recently had its weekly meeting at Casino Español. Hosted by Unilever Philippines, represented by its chairman Mr. Fernando Fernandez, distinguished members who were past-Unilever employees came in full force including former chairmen Ambassador Cesar Bautista and Howard Belton, former HR Director Reynaldo Alejandro and former Foods Marketing Manager Obet Pagdanganan.

As the host of the afternoon’s assembly, Fernando was invited to speak and to share with the group the various Unilever initiatives that are also close to the Rotary’s heart – the environment. He expressed to them that in Unilever’s quest for sustainable growth, it realized that doing good for society is essential to doing well in business. Particularly now during these difficult times where the company’s help is needed most – many are in areas where it can make a difference and, at the same time, create opportunities for its business and brands. The Rotary Club represented by its president Mr. Romy Batino expressed its thanks to Unilever by presenting Fernando with a commemorative china plate and a caricature specially made for him. On his part, Fernando turned over complete sets of books on the Clean Water Project of Unilever Philippines for the Rotary’s library. (Source: http://www.unilever.ph/aboutus/newsandmedia/pressreleases/unilever_host_rotary_club.as px)

2.2 Employee Development People provide the skills and creativity which drive our business. To ensure our long-term prosperity we want everyone to be healthy, motivated and committed. Winning with people It is vital we have people with the right talent, skills and creativity to support our growth ambitions. To ensure our long-term prosperity, we want everyone to be healthy, motivated and committed. As part of our Sustainable Living Plan, we have set ourselves new targets for creating a better workplace. These include reducing workplace injuries and accidents and improving employee health and nutrition.

Our strategy We are developing the right people, teams and structures to enable us to succeed in doubling the size of our business. A values-led approach The number of people we employ worldwide totaled 167,000 at the end of 2010, up from 164,000 in 2009.

Our new Compass strategy Our mission aims to double the size of our business while reducing our environmental impact. To achieve this we have placed a renewed focus on the

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We believe in providing an environment where individuals can achieve their goals, both professionally and personally. To attract and retain the best people, we need to offer people room to grow and succeed, and a varied set of career options. Our Corporate Purpose and Code of Business Principles commit us to treating our people with respect, integrity and fairness. We in turn expect all our employees to observe high standards of behavior and integrity in their everyday work. Similarly, Unilever’s Supplier Code outlines what we expect of our suppliers.

consumer and customer and on driving a performance culture. We have called this our Compass strategy. Having the right people with the right skills is essential if we are to deliver on our ambitious growth plans. So ‘Winning with people’ is a core part of the Compass strategy. We are reshaping our organization to support our vision by creating a simpler, more streamlined structure, developing the necessary talent and skills, and embedding a performance culture that rewards success. Making the most of the size and scale of our business A key element of our Compass strategy is to get better efficiencies through our global scale. We need to get the right balance between becoming more efficient and remaining close to the local nuances of our consumer needs. In 2010 we assessed the effectiveness of some of our most critical teams, such as the global and local marketing teams. Our focus has also been on streamlining essential business support functions, such as procurement and supply chain, HR, IT and finance. This not only helps save costs but also makes us better able to respond to our customers and consumers. For example, during 2010 we made important changes to how we run our supply chain function, bringing in common systems and processes across the whole of Unilever. This helped us save €300 million. The Compass builds on the work we have been carrying out over the past few years under our One Unilever program.

Developing and engaging our people A skilled, motivated and engaged workforce is essential to achieving our growth ambition.

Developing a team fit for growth Developing and retaining the right quantity, quality and diversity of people is going to be crucial to our growth strategy.

In 2010 we rolled out this program across our business. By the end of 2010 talent and organization readiness assessments had been conducted in countries making up around 75% of Unilever’s turnover. These assessments have given us important

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In 2009 we launched our ‘talent and organization readiness’ program. This helps ensure our people have the right skill sets to manage the business through a period of growth. We are assessing those areas of the business most crucial to our strategy and whether we have the structure and the talent. Where we identify gaps, we focus on: changing organizational structures revising our recruitment strategy and approach reviewing our retention schemes improving core processes such as decision-making focusing on culture and employee engagement using development and training programs to build capability levels.

new insights and are now fully integrated into our core business planning and HR processes. In China, for example, we identified a shortage of talent in the leadership pipeline, and difficulties in retaining young talent. So we developed a recruitment scheme for students studying overseas, offering opportunities back home once they have finished their initial training at Unilever. In Latin America, our ‘Unilever in your class’ campus program targeted college students across eight countries. The program has helped almost 1 700 students learn more about Unilever and the consumer goods industry. We will roll it out to more countries in 2011. Investing in learning In 2010 we developed our Learning and Leadership Programmes. Through our Learning Management System (LMS), our core learning programs are now available in 22 languages to over than 120 000 employees in 109 countries. The system provides nearly 300 instructor-led programs a month, and offers more than 100 elearning modules. All employees with corporate intranet access now have a ‘learning passport’ that enables them to manage their own skills development, while at the same time allowing the company to drive specific training that is strategically or legally required. For example, during 2009 and 2010 we carried out targeted training programs in China and Russia on sales skills, while in Thailand we focused on leadership development. In December 2010 we formed the Unilever Learning Academy (ULA), bringing together all our major functional academies (Marketing, Supply Chain, R&D, Finance, HR, IT, Customer Development) with our Leadership Skills and General Skills teams to share best practices and to adopt common processes and standards for learning. All functions have completed work to identify the skills that define their areas of expertise. These are available for employees to assess themselves against to help them with their career planning and personal development.

Leadership development In 2010, we introduced the Unilever Leadership Development Programme (ULDP), specifically to align the personal development plans and careers of our most senior leaders to our new Compass strategy. Approximately 100 of our most senior executives participated in the program in 2010. Based on the success of the

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Sustainability training Our sustainability training courses continue to be well attended, with around 400 people registering for sustainability awareness e-learning (twice as many as in 2009). More than 100 employees attended the higher level Sustainability Foundation course, and a further 132 registered for a virtual sustainability course targeted at our employees in the Africa, Middle East and Turkey region, where a series of live presentations were broadcast to delegates. Globally, around 600 delegates logged on to a single 30-minute broadcast covering the basic principles of sustainability in Unilever.

program, which is delivered with the active participation of our CEO Paul Polman and the Unilever Executive, and with contributions from Harvard Business School academics, plans are underway to roll out the ULDP to the next level of 500 executives through 2011 and 2012. Additionally, we have continued our successful leadership programs for those employees who we see as ‘high potential’ for becoming senior leaders in the future. We now have 11 programs covering more than 250 high ‘potential’ individuals. Our Four Acres training and leadership development facility in the UK continues to provide high-quality training opportunities for our senior leadership and others. In 2010, we announced plans to open a similar leadership development facility in Singapore – called Four Acres Singapore - to support our talent development efforts in Asia, a region where we are likely to see much of our future growth. Employee engagement We put great effort into engaging with employees to find out whether they understand the company’s mission and their role within it, what their views of Unilever are and what they believe needs to change to achieve our ambitions. We gather feedback from our employees through our Global People Survey (GPS). The results of our latest employee survey in 2010 showed that the level of employee engagement, one of our key indicators, saw a significant increase. Our score had hovered around the 65% for several years, but in 2010 we saw a marked jump to 73%. Results also showed that 78% of managers feel that Unilever’s leadership has communicated a motivating vision for the future and 83% of employees felt proud to work for Unilever. The survey confirmed the areas for further improvement, such as the need for faster decision-making, addressing poor performance and regular feedback from managers. We expect to see improvements in these scores as we achieve results from the programs we put in place in 2010. These focus on embedding a performance culture and streamlining decision-making. Our next GPS will take place in 2012. During 2011 we will continue to carry out interim or ‘Pulse’ surveys with our management teams across the business.

We are committed to developing a safe, healthy and motivated workforce. Our approach The health, safety and well-being of our workforce are essential elements of a successful and sustainable business. We are committed to providing a safe workplace for our employees and improving their health through better diets, work practices and lifestyles. SAFETY IN THE WORKPLACE

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Employee safety, health & well-being

The safety of our employees remains a priority for us. We aim for zero workplace injuries. Our strategy The health and safety of our workforce is an essential element of a successful, growing and sustainable business. We are committed to providing a safe workplace for our employees. In November 2010 we set two new targets as part of the Unilever Sustainable Living Plan: We aim for zero workplace injuries By 2020 we will reduce the Total Recordable Frequency Rate (TRFR) for accidents in our factories and offices by 50% vs 2008. With the exception of 2001, we have achieved continuous improvement in our health and safety record since 1996 and we are among the leaders in our industry on safety performance. Therefore the target to further halve our accident rate (TRFR) is a stretching one. Leadership and governance Our commitment to safety comes from the most senior levels in our organisation. Ultimate responsibility for our safety performance rests with our CEO. The senior leader responsible for health and safety is our Chief Supply Chain Officer, who is also a member of the Unilever Executive. Unilever has a global health and safety policy and a set of mandatory standards based on the international standard OHSAS 18001. We also have detailed guidelines on individual aspects of health and safety. All these are made available to all Unilever locations worldwide on an intranet-based system. We have an IT system to collate health and safety data from each of our sites.

We are also embedding responsibility for health and safety with our line managers. Central safety committees at every site carry out engagement and consultation with employees at all levels. Our performance in 2010 A key measure of our progress is the Total Recordable Frequency Rate (TRFR) which counts all workplace accidents except those requiring only simple first aid

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Our senior health and safety professionals meet regularly as the Unilever Group Safety and Health Leadership Team. The Team is chaired by our Vice President for Safety, Security & Brand Protection, who reports to our Chief Supply Chain Officer. Its role includes: advising our Supply Chain Leadership Team of areas of focus and recommending and supporting specific improvement projects reviewing progress against targets and recommending specific remedial actions following up on serious accidents and ensuring wide dissemination and adoption of the lessons learned.

treatment. In addition to halving our TRFR by 2020, we also aim to eliminate all employee and contractor fatalities. We continue to focus our support on those sites with the poorest health and safety performance. Accident rates (1998-2010) In 2010, our TRFR decreased to 1.61 accidents per 1 million hours worked, a drop of 15.7% compared with the 2009 figure of 1.91. Total Recordable Frequency Rate (TRFR) is one of two occupational safety and eight environmental performance indicators that will be independently assured by Deloitte LLP and reported here in May 2011. Some of our sites are achieving zero recordable injuries on an ongoing basis. For example, at our factory in Auerbach, Germany, our workforce of 215 employees produced 20 000 tons of food products a year without experiencing a single recordable injury between 2006 and mid-2009. Fatal accidents (1998-2010) Regrettably, in 2010, two employees and one contractor lost their lives while working for Unilever. The lessons learned from these deaths were communicated across our business. Fatal accidents are one of two occupational safety and eight environmental performance indicators that will be independently assured by Deloitte LLP and reported here in May 2011. In addition to the recordable fatality data in the above chart, Unilever requires its organizations to report fatal accidents involving members of the public where these fatal accidents may be deemed associated with our operations, and those which occur at third-party contract manufacturers producing goods and services for Unilever. In common with the other companies in our industrial sector, these incidents are only reportable internally. This reporting practice helps us to identify ways in which such accidents might be prevented in the future. We also benchmark ourselves against other companies in our sector and in wider industry, and work collaboratively to share best safety practice.

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Behavioral-based safety All our regions have adopted a behavioral-based approach to health and safety. This approach recognizes that best practice guidelines and policies are not enough to achieve a safe working environment. It is how well people adhere to them which makes the difference. The example set by leadership is crucial in achieving adherence. We make safety the responsibility of every manager. Each manager is expected to set a personal example. We are investing in safety leadership training – this will become mandatory from 2011 for senior leaders in our Supply Chain function, with other senior leaders to follow in future years. In addition, safety professionals will provide advice, data and tools for managers. These tools are designed to encourage managers and employees to identify unsafe behaviors and make the

consequences of such behavior more immediate and personal for everyone in the organization.

Process safety Process safety concerns the safety of manufacturing processes which can be potentially hazardous. For example, the manufacture of aerosol sprays (because of the flammable nature of the materials used) and the refrigeration in ice cream manufacture (because of the toxicity of the ammonia refrigerant). Our aim is to prevent any incident which would result in fatalities, serious occupational injuries or a threat to the local community, such as a major fire, explosion or leakage. Our approach to process safety informs the way we design, develop, construct and operate our manufacturing sites. It also ensures any modifications to sites are managed correctly. We have developed new indicators for measuring process safety to complement our existing measures for occupational health and safety. These have been used first for processes that are potentially the most hazardous, such as aerosol manufacture, sulphonation, the handling of enzymes in our laundry products manufacture and ammonia refrigeration. They include both lagging indicators (which record incidents and near misses) and leading indicators (which measure the rigor and effectiveness of preventative measures). Safe travel & transport Safe travel and transport continue to be a priority for us. Around half our business is in the developing world, where countries often lack a culture of safe driving, basic road safety infrastructure and enforcement. The risk to our employees from personal street attacks is also rising. We are currently reviewing our security arrangements in those countries where this risk is significant and putting additional measures in place.

EMPLOYEE HEALTH AND WELL-BEING

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We have a Safe Driving Teams initiative that is led by a senior manager in the highest risk countries. These teams identify local risk, then develop and implement safe driving standards. The assessments take into account not only the specific circumstances in each country, but also the risks associated with certain routes. Drivers are provided with training based on this risk assessment. We have banned the making of calls using mobile phones while driving to improve road safety. We also require all our professional drivers worldwide to have regular medical check-ups to ensure their fitness to drive. Each Unilever organization ensures that their providers of outsourced driving services provide safe and reliable vehicles and qualified drivers. Where accidents do occur, we are keen that any lessons are learned swiftly and the findings shared throughout the company to prevent recurrence.

We are committed to protecting our employees from work-related hazards as well as promoting their health so that they can enjoy fit and healthy lives, both at work and at home. Our strategy We seek to earn a global reputation for best practice in medical and occupational health. We have developed a global medical and occupational health strategy, aligned to our Compass strategy in the areas of Winning with People and Winning through Continuous Improvement. Our strategy rests on two pillars: health protection and health promotion. Following an extensive internal and external stakeholder review, and in order to align our medical and occupational health services with the Compass strategy, our strategy covers three key areas: Health, well-being and performance Our goals are to: promote the health of our employees, which brings both individual and business benefits roll out our employee health program (Lamplighter) further promote mental well-being and resilience tackle local health risks such as HIV, malaria, dengue fever and tuberculosis ensure business continuity in the event of a health pandemic support the concept of ‘agile working’ for our employees. Prevention of occupational ill-health We aim to: prevent work-related illness and occupational diseases formulate new occupational health key performance indicators (KPIs) which will measure occupational health performance ensure good ergonomics at the workplace control specific risks such as noise and allergens. Travel- related activities For Unilever employees who have to travel, we: provide advice on immunization and (chemoprophylaxis) for all business travel offer advice before, during and after travel.

preventative

measures

Employee health and well-being (Lamplighter) program Improving the health and well-being of our employees is essential for our continued business success. The ambitious goals in our mission will only be achieved through a ‘performance culture’. We believe that healthy employees contribute to a healthy company. We encourage employees to engage in healthy activities at work – often through on-site

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We are developing KPIs to measure our achievements in these three areas.

facilities or access to local amenities – and we provide information and tools to help them make well-informed decisions on a healthy lifestyle. We have developed a global health and well-being framework that Unilever operating companies is encouraged to make available to all their employees. This is the Lamplighter program, in which employees are individually coached on their exercise regime, nutrition and mental resilience. An initial check-up is followed by six-monthly visits where progress is monitored. Since 2005 the Lamplighter program has been rolled out from our London head office to 30 countries in Asia, Africa, Latin America and Western Europe, reaching 35 000 people. As part of our Unilever Sustainable Living Plan we have set a target to extend Lamplighter from 30 to a further eight countries in 2011. Our longer-term goal is to extend it to all the countries where we operate. How do we encourage our employees to change their habits? Our challenge is to encourage employees to change their behavior and sustain new habits, through regular exercise, better eating habits and managing pressure, both at work and outside it. We have found that if we can keep employees motivated during the first six months of a program of change, positive changes are likely to remain. An important factor in the success of the Lamplighter program is leadership behaviors. People at work often follow the patterns of behavior set by their managers, so we started our roll-out with senior managers and asked them to encourage their teams to join the program. "I have learnt, many times over, that you will get results back if you invest in others, because they will invest in you. Lamplighter is an integral part of that strategy." -Paul Polman,CEO, Unilever

Under the program, we rate employees as low, medium or high risk. Low risk means that a person has between zero and two risk factors – such as smoking or a failure to take any exercise. Medium risk is caused by two to four risk factors and high risk by five or more.

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How do we measure the success of Lamplighter? The single most important factor in evaluating the outcome of Lamplighter is the improved health risk status of employees. We start by determining the health risks that an individual faces. Risks are assigned to a number of factors: lifestyle (alcohol and smoking), non-modifiable (age and ethnicity), nutritional (e.g. consumption of fruit and vegetables), physiological (heart rate and body mass index), biochemistry (cholesterol and diabetes) and workplace (stress and engagement).

We then educate and support people in making changes to reduce these risks. Between 2005 and 2010, our analysis highlighted improvements in health status, through Lamplighter, across 30 countries, reaching approximately 35 000 employees. These changes in health risks translate into improvements such as: Reductions in: overweight / obesity: 8% (2 800 people) hypertension: 16% (5 600 people) hypercholesterolemia: 12% (4 200 people) smoking: 3% (1 050 people). People have also increased their: physical activity: 5% (1 750 people) and improved their: nutrition: 17% (5 950 people) An independent evaluation of effectiveness In 2009 we commissioned the Lancaster University Centre for Organizational Health & Well-Being in the UK to carry out an independent study of the effectiveness of the Lamplighter program. The study was based on results from employees who had taken part in the program at our London headquarters. The findings are to be published in a book entitled Innovations in Stress and Well-Being in 2011. The analysis showed a number of significant improvements in employees’ health after participating in the program. They included positive improvements in eating habits, fitness levels and how engaged people felt at work. The results showed a strong correlation between employee health, engagement and work performance. The Centre concluded that “the Unilever Lamplighter program can be considered to be a good example of a comprehensive organizational wellness program that incorporates both fitness and educational components, to improve individual health and well-being”.

External recognition In March 2010, Unilever received the Level II International Corporate Health & Productivity Management Award, made by the Institute for Health and Productivity Management (IHPM) for our Lamplighter program. This is the highest international level of recognition available.

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Programs such as Lamplighter have important short- and long-term health and business benefits. In the short term we expect to see healthier, more motivated and more productive employees, with lower levels of sick leave. The long-term benefits are in lower healthcare costs for companies and society. An earlier study we conducted in the UK, published in the American Journal of Health Promotion, estimated that the return on investment for these kinds of employee well-being programs is in the region of £3.73 for every £1 invested. See external link to read more.

Responding to pandemics and protecting employee health Taking care of our employees’ health becomes even more crucial at times of pandemics. We have a clearly articulated plan of action to protect employee health and business continuity. During the outbreak of the influenza A (H1N1) virus around the world in 2009 and early 2010, we implemented a co-ordinated response across all our operations. We provided clear guidelines to our operations on how to respond to the pandemic and monitored travel in and out of the countries that were affected. We posted materials across our office and factory sites to highlight the simple steps individuals could take to protect themselves. We also made soap and hand gel widely available. During the earlier outbreaks of avian flu, we ran business continuity exercises in countries such as Vietnam, Thailand, China, Turkey and Egypt. The lessons learned from the outbreaks of 2009 and 2010 have led to a review and a strengthening of our guidelines for managing a future flu pandemic. Agile working Our aim is to create a working environment supportive of family life, while meeting our business needs. One of the ways we do this is through flexible working arrangements, such as job-sharing, flexible or reduced hours and home working.

How

are

we

tracking

occupational

health

performance? We have adopted new indicators to track our occupational health performance. A global pilot was launched in 2008, using both leading and lagging indicators, which include compliance with our occupational health standards as well as the incidence of occupational illness.

Our lagging indicators include the number of work-related illnesses caused or exacerbated by work, and the number of days taken off due to work-related illness. We plan to improve our data collection by incorporating our occupational health indicators into our existing health and safety IT system in 2011. This will allow occupational health doctors to record data ‘as it happens’. Timelier reporting will also allow us to manage and reduce occupational illnesses. We plan to report

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Our leading indicators include the percentage of people who attend a health check as a proportion of total employees, and the number of sites that pass an audit. Audits contain safety and environmental questions and have been adapted to include questions on occupational health. These audits must be signed off by the country chairman.

globally for all Unilever sites once we are confident that the data is robust and accurate ― our aim is to report the results in 2012. TACKLING HIV/AIDS HIV/AIDS has an impact on our business, not only in terms of our own employees, but also in wider socio-economic terms in many of our markets. Our approach to HIV/AIDS & occupational health Occupational health is a worldwide responsibility for Unilever and covers: access to primary healthcare protecting health in the workplace ensuring medical fitness for the job, and actively promoting health and well-being. Unilever HIV/AIDS programs are an integral component of our Medical and Occupational Health strategy. During 2009 we introduced a new corporate strategy for HIV/AIDS, together with three regional teams to implement it. As there is currently no cure for AIDS, education and prevention are critical to halt the spread of the disease and are the main line of defense against it. These should also be supported by counseling and sustainable programs to care for those already infected. Therefore, in the fight against HIV/AIDS, Unilever is committed to deploying effective programs of health education (using our skills in communication) and to securing access to appropriate treatment for our employees at all stages of the disease. Countries differ greatly in the quality of clinical infrastructure, in national health priorities and in the cultural sensitivities which surround HIV/AIDS. The role of the private sector varies accordingly – where public health systems prevail, for example, Unilever's contribution will concentrate on education and prevention schemes. Elsewhere, direct involvement in treatment and care may be necessary. Unilever's policies respond to these differences and adapt to fit local needs. In each country, health professionals are responsible for determining the mix of provision for employees in line with local cultural, social and operating requirements.

Over a decade ago we developed a road map for implementing our programs of health education in the fight against HIV/AIDS. In 2010 we revised this to provide a more tailored road map dependent upon the HIV/AIDS risk in different countries. Unilever's approach to HIV/AIDS in sub-Saharan Africa In sub-Saharan Africa, Unilever companies have developed a comprehensive framework to manage the HIV/AIDS program, which addresses the needs of individuals at key stages of prevention and treatment. These are: awareness (through educational programs for all employees)

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Our policies have been most developed in sub-Saharan Africa, where the company's programs have been developed over many years and are shared widely both with other companies and in society.

prevention (including prevention and treatment of occupational exposures and distribution of condoms) acceptance of status (encouraging HIV-positive individuals to seek treatment), and treatment and care (including access to anti-retroviral therapy). In the case of pregnant women, Unilever helps with treatment to prevent motherto-child transmission. These policies are aligned with the key principles of the International Labor Organization (ILO) Code of Practice on HIV/AIDS. Today, across our sites in sub-Saharan countries, the company offers free HIV testing, as well as education programs to raise awareness, teach safe practices and prevent discrimination. We support the destigmatization of HIV/AIDS through voluntary confidential testing by healthcare providers. Activities in 2010: World AIDS Day: 1 December Unilever marks World AIDS Day each year. Using a combination of the Global Business Coalition on HIV/AIDS campaign materials, local NGOs and government messages, our site contributed to global and national awareness campaigns. Engaging with others: Global Business Coalition on HIV/AIDS Given the scale of the challenge, our approach is to work in partnership with others, and to share expertise and learning. Unilever was one of the founding members of the Global Business Coalition on HIV/AIDS, Tuberculosis and Malaria (GBC), which aims to mobilize the networks and resources of multinationals to combat and raise awareness of these diseases. Our Vice President for Global Medical and Occupational Health is a member of the advisory board of the GBC. National coalitions on HIV/AIDS We support 11 business coalitions on AIDS across Africa (Cote d’Ivoire, Ghana, Kenya, Malawi, Mozambique, Nigeria, South Africa, Tanzania, Uganda, Zambia and Zimbabwe).

Boosting HIV testing in South Africa In April 2010, the South African government and the South African National AIDS Council (SANAC) announced the launch of a wide-scale HIV Counseling and Testing (HCT) campaign. This was a groundbreaking step by the government and will help

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One example is the South African Business Coalition on HIV/AIDS (SABCOHA), which we have been a member of since its inception in 2007. Its aim is to coordinate a private sector response to the HIV/AIDS epidemic and to help companies, both large and small, in their efforts to combat the epidemic through workplace initiatives. The business environment offers a unique opportunity to target the millions of employees affected by the pandemic. We regularly participate in SABHOCA initiatives and use this forum to share best practice with other companies.

to achieve the targets of the National Strategic Plan on HIV, AIDS and Sexually Transmitted Infections. The campaign aims to encourage 15 million people to take an HIV test. The business sector will contribute to this national target by mobilizing 2 million people to check their HIV status. Unilever South Africa has fully aligned its practices with the government’s campaign. External recognition in India In India, the ILO recognized Hindustan Unilever with a commendation certificate for the leadership it had provided in the successful implementation of the ILO’s Prevention of HIV/AIDS in the World of Work program. Working with suppliers in Nigeria Over 2007–2009, Unilever, Guinness and Nigerian Breweries have been working with the German organization for technical co-operation (GTZ) to address the impact of HIV/AIDS on key suppliers in Nigeria. We conducted an assessment of how our suppliers generally perceived HIV/AIDS as well as their knowledge and workplace practices. The findings were used to select three companies who would most benefit from HIV/AIDS workplace programs. We then helped them to develop and establish a suitable program for their business. Public–private partnerships We continue our work with a variety of international agencies across the whole region, in particular where we are involved in primary health care in plantations and remote locations. Co-investment Co-investment is an innovative approach that consists of leveraging private sector infrastructure and assets to benefit the community beyond the company’s labour force. In Tanzania, one example of co-investment is the collaboration of the national government, various international organizations, NGOs and the private sector – Unilever Tea Tanzania Ltd – to scale up HIV/AIDS treatment.

2.3 Unilever Sustainable Living Plan Two billion times a day, somebody, somewhere, uses a Unilever brand. Our products make small but important differences to the quality of people’s everyday lives.

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Wider engagement We work with a range of international organizations on AIDS, such as the World Health Organization, the World Economic Forum, the Gates Foundation and the Institute of Health & Productivity Management. We also take part in international conferences such as the International AIDS Conference and share our learning with other businesses – our programs are available as models on both the Global Business Coalition and the Global Health Initiative websites.

We have ambitious plans to grow our company, creating jobs and income for all whose livelihoods are linked to our success. But growth at any cost is not viable. We have to develop new ways of doing business which will increase the social benefits from Unilever’s activities while at the same time reducing our environmental impacts. This is why we have created the Unilever Sustainable Living Plan.

The Opportunity Our vision is to create a better future in which billions of people can increase their quality of life without increasing their environmental footprint. However, our plan isn’t just the right thing to do for people and the environment. It’s also right for Unilever: the business case for integrating sustainability into our brands is clear and persuasive. Consumers want it Consumers around the world want reassurance that the products they buy are ethically sourced and protect the earth’s natural resources. A growing number are choosing to buy brands such as Rainforest Alliance Certified™ Lipton tea, Ben & Jerry’s Fairtrade ice cream, and ‘small & mighty’ concentrated laundry detergents. A more sustainable brand is often a more desirable brand. Customers want it Many retailers have sustainability goals of their own. They need the support of suppliers like Unilever if they are to achieve them. We share our expertise in areas such as sustainable agriculture and lifecycle analysis. This collaboration is broadening and deepening the relationships we have with our customers. It fuels innovation Sustainability is a fertile area for innovations in both products and packaging. It is allowing us to deliver new products with new consumer benefits.

It saves money Managing our business sustainably reduces energy use, minimises packaging and drives down waste. It not only generates cost savings, it can also save consumers money. The launch of the Plan On Monday 15 November 2010, Unilever hosted four simultaneous live debates in London, Rotterdam, New Delhi and New York around the question: can consumption become sustainable? We simultaneously took the opportunity to launch Unilever’s ten-year Sustainable Living Plan.

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It helps us grow our markets Over half Unilever’s sales are in developing countries, the very places which face the greatest sustainability challenges – deforestation, water scarcity, poor sanitation. These countries represent major growth markets for Unilever. If we can develop products today that help people adapt to the changing environment of tomorrow, it will help us grow faster in future.

The Plan We have ambitious plans to grow our company, creating jobs and income for all whose livelihoods are linked to our success – employees, suppliers, customers, investors, and thousands of farmers around the world. But growth at any cost is not viable. We want to be a sustainable business in every sense of the word. So we have developed a plan – the “Unilever Sustainable Living Plan” – that will enable billions of people to increase their quality of life – without increasing their environmental impact. The Unilever Sustainable Living Plan will result in three significant outcomes by 2020: Help more than one billion people improve their health and well-being Halve the environmental impact of our products Source 100% of our agricultural raw materials sustainably

2.3.1 Improving health and wellbeing Unilever's unique portfolio of food, home and personal care products can make a difference to the health and well-being of people everywhere. Making a difference Every day people all around the world use our products from their first cup of tea in the morning, to when they brush their teeth at night before going to bed. Many of our products have clear health benefits: eating margarine instead of butter can help reduce your daily intake of saturated fats while using fluoridated toothpaste can help protect teeth from decay. As part of our Unilever Sustainable Living Plan (launched in November 2010), we have set ourselves a bold new target for improving health and well-being: By 2020 we will help more than a billion people take action to improve their health and well-being.

2.3.1.1 Health and hygiene An ambitious target Our brands have built health, hygiene and well-being into their identity since the launch of Lifebuoy soap, over 100 years ago. As part of our Unilever Sustainable Living Plan launched in November 2010, we have set ourselves a bold new target to help more than a billion people to improve their hygiene habits and bring safe drinking water to 500 million people by 2020.

Promoting handwashing

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Products such as soap and toothpaste can help prevent disease and improve health and well-being, ultimately helping to save lives. But this relies on people changing their everyday habits.

Unilever is working with governments, health agencies and non-profit groups to promote the importance and practice of handwashing with soap at the right times during the day.

Reaching 1 billion people In 2010 Lifebuoy launched the Delta Strike Mass Activation Programme (DSMAP), a new mass behavior-change program based on its four-step process. This program builds on the success of Lifebuoy’s hygiene promotion activities that have been run in countries such as India, Bangladesh, Sri Lanka, Pakistan, Indonesia, Vietnam and South Africa. Lifebuoy has been running the Swasthya Chetna (‘Health Awakening’) program since 2002. As India’s largest rural education initiative, the Swasthya Chetna program has reached more than 120 million people since it began, raising awareness of the importance of handwashing with soap through live demonstrations and workshops. One of the key elements of Lifebuoy’s hygiene education approach is the ‘glowgerm’ demonstration. This counters the common misconception that ‘visibly clean’ is ‘hygienically clean’. When held under ultra-violet light, glowgerm powder glows on the dirt left behind on hands washed only with water, providing a powerful emotional reminder that handwashing with soap provides greater protection against germs than washing with water alone. Our new DSMAP uses different approaches across each of the four steps: • mass media (to drive awareness and benefits) • school programs (to drive active behavior change) • mother’s programs (to allow mothers to partner with children in the program and involve doctors/medical staff in the awareness of the five daily occasions when people should wash their hands) • packaging (to increase involvement in the program).

A television and poster advertising campaign featuring the popular actress, Hong Van, was used at the start of the program to build awareness. Lifebuoy also launched a schools program in partnership with the Vietnamese Ministry of Education and Training and the Ministry of Health. Both teachers and parents are involved in ensuring that children wash their hands with soap. Parents are

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Vietnam was the first country to launch the program. The campaign aims to build awareness of the five important times in the day when people should wash their hands with soap: when bathing before breakfast before lunch before dinner and after going to the toilet.

encouraged to supervise and track their children’s commitment at home. Using a timetable as a tracking device, children are encouraged to fill in the timetable either with a sticker or a parent’s signature every time they have washed their hands with soap. Completed timetables are then handed in to teachers who reward the children with small gifts. The program was also launched in Pakistan, building on the successful hygiene promotion program, Mahfooz (‘Rural Neighbourhoods’), Pakistan that Lifebuoy has been running in the country since 2005. The campaign was launched with a television commercial featuring cricketer Wasim Akram. A schools program has been established and special limited edition Lifebuoy soap packaging introduced featuring Wasim Akram and handwashing messages. Partnerships have been built with NGOs ITA (Idara-e-Taleem-o-Agahi), Friendship International and the UN World Food Programme to help ensure that the program reaches as many people as possible in the most effective way. The Delta Strike program will be rolled out more widely from 2011 onwards. Global Handwashing Day Launched in 2008, Global Handwashing Day is an annual event backed by the Public-Private Partnership for Handwashing with Soap, of which Unilever is a founding partner. In 2010, more than 80 countries celebrated Global Handwashing Day. Lifebuoy co-ordinated efforts with more than 50 organizations in 19 countries. Millions of school children took part in awareness-raising activities and were encouraged to make handwashing pledges.

And for the first time, Lifebuoy helped to spread the Global Handwashing Day message more widely using Facebook and Twitter.

Improving oral health The consequences of poor oral hygiene can begin with discomfort and pain, but can lead to life-threatening illnesses. Our products and brand communication activity can make a real difference.

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Examples include: in Indonesia over 3 million school children participated in school competitions in Kenya, 19 352 people gathered in a school to wash their hands with soap, and secured the Guinness World Record for the most people washing their hands at one time in a single location in Bangladesh, a third Guinness World Record attempt was made with over 86 000 school children across the country simultaneously washing their hands in South Africa, well-known singer Yvonne Chakka Chakka performed a song especially created for Global Handwashing Day, called “Bumbanani” (Let’s Unite Against Germs).

Our target As part of our Sustainable Living Plan we have set the following target: We will use our toothpaste and toothbrush brands and oral health improvement programs to encourage children and their parents to brush day and night. We aim to change the behavior of 50 million people by 2020. Brush Day and Night Signal, Pepsodent and Close Up's mission is to improve oral health by getting children and their families around the world to brush day and night using fluoride toothpaste. Brushing habits that last are best forged during childhood, so we are focusing our campaigns on instilling good habits from an early age. The Brush Day and Night message focuses on the single change that World Dental Federation (FDI) experts and dental professionals agree will improve oral health globally. The campaign is built around the insight that parents often find it difficult to get children to brush their teeth. Rather than being a chore, brushing teeth together at night can become an opportunity for passing on good habits through shared fun. The Brush Day and Night television campaign shows the amusing times that a father and son share when brushing their teeth together at night. The campaign has been supported by a website where people can share their own videos and experiences. The campaign is already established in France, Italy, Greece, Indonesia, Vietnam and Morocco and will be extended to more than ten countries in 2011. In 2010 we estimate that the campaign effectively reached 10 million children.

We also run oral hygiene programs based in schools. We estimate that these reach more than 4 million children a year. Affordability Our products are priced very competitively and offer good value for money by giving consumers performance they can depend on at an affordable price. We offer small pack sizes of Close Up and Pepsodent which bring our products within reach

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The Brush Day and Night campaign builds on our unique partnership with the FDI World Dental Federation, known as ‘Live.Learn.Laugh’, that was first established in 2004 to promote oral health. 2010 marked the start of a second phase of partnership with the FDI that will again support national dental associations around the world to work with their local Unilever oral care brand. The partnership provides funding for oral health promotion projects, the national dental associations identify suitable projects and then develop and promote them with Unilever and the FDI. In 2011 more than 30 country teams are set to launch projects which, like our Brush Day and Night campaign, seek to improve oral health through encouraging twice-daily toothbrushing with fluoride toothpaste.

of low- income consumers. We also develop new products, for example in 2008 we launched the Pepsodent Smart Clean, a quality toothbrush that costs just 10 rupees in India (or approximately 16 euro cents).

Improving self-esteem Low self-esteem is a common issue, especially among young girls, and can increase the risk of problems such as eating disorders. Brands such as Dove are pioneering new ways to engage with consumers. Dove – a clear mission The vision of one of our founders, William Lever, was to improve women's well-being by making everyday products more affordable. Today Dove is committed to helping young people to develop a positive self-image from an early age.

The long-standing Dove Self-Esteem Fund (DSEF) campaign is educating and encouraging young people to help raise their self-esteem and build a positive relationship with beauty, enabling them to realize their full potential in life. The initiative had already helped 6.9 million young people through educational programs by the end of 2010. As part of the Unilever Sustainable Living Plan, we have set a target to help 15 million young people by 2015. The Fund has supported partners in 26 countries. Successes in 2010 have included: • sending a Self-Esteem Workshop Guide for Teachers to 9 000 junior high schools in France • training teachers and youth workers with the Dove BodyThink materials in Australia • reaching over 70 000 young people and their mentors in Mexico with a variety of body confidence programs.

Our analysis shows that supporting this cause is good for business too. 56% of women are more likely to buy Dove following campaigns such as the Campaign for Real Beauty Vaseline Skin Fund Skin conditions such as eczema often cause great discomfort and can have a negative impact on people's well-being. Vaseline has been an expert in caring for skin since 1870 and has built a

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People can also join the online Dove Movement for Self-Esteem, launched in the US and Canada. Members help run youth groups and school programs and projects such as mother-and-daughter workshops, the idea being to make such schemes self-sustaining. Over 12 000 girls benefited from 696 workshops over a weekend in October 2010.

reputation for trust; it is therefore well placed to provide support and information on many aspects of skincare. With this in mind, the Vaseline skincare brand team established the Vaseline Skin Fund to improve the lives of those affected by skin conditions. Guided by an external advisory board, the Vaseline Skin Fund (VSF) aims to provide access to knowledge, advice and support for 3 million people suffering from skin conditions by the end of 2012. The Fund works with not-for-profit and educational organizations to support people living with conditions such as eczema and ichthyosis. It also supports patient advocacy organizations such as the Coalition of Skin Diseases in the US. Among other activities, the VSF donated funds to allow 126 children with serious genetic skin disorders, and their families, to attend an activity camp and receive specialist advice in the US. We estimate that more than 1.3 million sufferers benefited in 2010, either directly or via their health practitioner. An educational film called ‘Starting from Scratch’ produced with the US’s National Eczema Association, reached an estimated 156 000 patients and their careers. In Portugal, the Vaseline Skin Fund supported psoriasis charity PsoPortugal in their efforts to get the condition recognized as a chronic disease, thus helping at least 5 000 sufferers. And over a million people were the end beneficiaries of a continuing medical education unit on psychodermatology and skin care, a web-based education program that leads to a certificate for doctors. The program was accessed by medical practitioners in more than 100 countries including the US, Saudi Arabia, India and Egypt.

Providing safe drinking water Safe drinking water is a scarce resource in many countries. Water-borne diseases can be life-threatening so we are focused on finding ways to provide people with an affordable source. A global imperative In 2010, the United Nations declared that access to “safe and clean drinking water and sanitation is a human right essential to the full enjoyment of life”. One of the Millennium Development Goals (MDGs) is to halve, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation.

We spent five years developing a scalable solution to the problem of providing access to safe, clean drinking water. The biggest issue was to create a solution that removed harmful germs in line with stringent international standards, at a price that was affordable to the consumers who needed it most. The result is the unique in-home water purifier, Pureit that provides water 'as safe as boiled' without needing electricity or pressurized tap water.

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However, the UN estimates that the number of people without access to safe drinking water could double by 2025. For the 1 billion people around the world currently without such access, one issue is the affordability of water purifying systems. Many people rely on boiling water or bottled water, which can be expensive.

What makes Pureit unique? Pureit removes harmful viruses, bacteria, parasites and pesticide impurities. An independent scientific study by the National Institute of Epidemiology1 showed that Pureit can reduce the incidence of diarrheal disease by up to 50%. It also meets the US Environmental Protection Agency’s strict criteria of safety from germs. Pureit’s new technology represents a critical breakthrough because it meets international germkill requirements at prices that low-income consumers can afford. Consumers typically get safe water in two ways – either they can boil their drinking water or buy bottled water. In India (where Pureit was first launched), the purifier is available for just 1 000 rupees (€17) with an ongoing running cost of just one euro cent for more than 2 liters of safe drinking water. This is significantly lower than the cost of boiling water or buying bottled water. Importantly, Pureit water also tastes good compared to alternatives such as water purifying tablets. There are environmental benefits too. We have carried out a detailed lifecycle analysis of Pureit which shows that its total carbon footprint is at least 80% lower than boiled or bottled water.

2.3.1.2 Nutrition Our aim is to make great-tasting food which makes a positive contribution to a healthy diet. We will continually work to improve the taste and nutritional quality of our products.

Reformulation and developing new products Our Nutrition Enhancement Programme drives improvements in the nutritional quality of our foods. Our Nutrition Enhancement Programme In 2003 we began developing our Nutrition Enhancement Programme (NEP). Through it we have reviewed the nutritional quality of our foods portfolio and assessed the levels of four key nutrients: saturated and trans fat, salt and sugar. The nutrition benchmarks used in our assessment are based on a range of national

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Helping people make healthy choices We continually work to improve the nutritional quality and taste of all our products, using globally recognized dietary guidelines. We develop new products, increase consumer choice, provide consumers with clear information and seek to use advertising to encourage our consumers to adopt healthy habits. We have set ourselves stretching targets for improving nutrition – to double the proportion of our portfolio that meets the highest nutritional standards, based on globally recognized dietary guidelines, by 2020. This will help hundreds of millions of people to achieve a healthier diet.

and international dietary guidelines. We have made reductions in all these nutrients across our portfolio. When we developed our NEP, we defined two levels of nutritional benchmark: national and globally recognized dietary guidelines. Our methodology has been published in a peer-reviewed scientific journal (European Journal of Clinical Nutrition 2007). In 2005 we started reporting our achievements against the set of benchmarks based on a combination of national and international dietary guidelines. This showed we had made significant improvements in reducing saturated and trans fat, salt and sugar. By the end of 2010, around 44% of our products met these benchmarks, an increase from just over a third in 2005. In 2010 we again made improvements to hundreds of products. Raising the bar In 2010 we announced that we will raise our ambition by moving to measure progress against strict international recommendations only. As part of our Sustainable Living Plan, we set ourselves new targets to double the proportion of our portfolio that meets the highest nutritional standards, based on globally recognized dietary guidelines. Around 20% of our portfolio met these more stringent criteria in 2010. Our aim is to double this to 40% by 2020. Given the reductions we have already made since we began our NEP, this will be a challenging task.

Communication and labeling Clear and easy-to-understand information is essential if consumers are to make healthier choices.

Choices Unilever co-founded the Choices Programme in 2006, creating a front-of-pack stamp to help consumers identify healthier products and stimulate the food industry to develop healthy options. Today, Choices is governed by an international independent foundation alongside a number of country-level foundations. The Choices stamp can be found on some 5 500 products from around 130 manufacturers, retailers and caterers.

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The power of communication Brand communication can be a powerful force for behavior change. Through it, we have the opportunity to promote healthy lifestyles among our millions of consumers. At the same time we have a duty to market our products responsibly and provide our consumers with clear and simple information about the products we make and how they can fit into a healthy and balanced diet.

An independent scientific committee regularly reviews the criteria that make a product eligible for the stamp. In 2009, the committee developed its first set of global criteria, which take into account international dietary recommendations for saturated and trans fat, sugar and salt, and, in some categories, fiber and energy. In 2010, four well-known Latin American scientists joined the committee to help introduce suitable criteria for the Latin American region. An accomplishment for Unilever in 2010 was that our Knorr Stock Pot became the first bouillon to receive the Choices stamp in Brazil – this product has 0% fat and 25% less salt than the traditional version. In Asia scientific discussions on Choices are taking place. Responsible marketing Our marketing and advertising helps to tell people about the benefits of our products and innovations. At the same time, our marketing can influence consumer choices so we need to advertise and market our products responsibly. Advertising food products to children has become an issue of particular concern.

Encouraging behavior change Targeted marketing and advertising campaigns can promote behavior change, encouraging consumers to adopt healthy habits. Promoting the heart health over the years Heart Age is the latest of many programs that Becel/Flora has run. 2010 marked the fiftieth anniversary of the launch of Becel’s first heart health margarine in the Netherlands. The continuing success of our brands today is underpinned by a huge body of scientific and technological knowledge, combined with effective campaigns targeting consumers and health professionals. In South Africa we work with the Heart and Stroke Foundation to raise awareness of cardiovascular disease and the importance of a healthy diet and lifestyle through our Flora ‘Test the Nation’ campaign. In 2010 we tested the cholesterol levels of approximately 22 000 people across the country. We intend to reach approximately 1 million more people by 2015.

Knorr's Power of Mealtimes The ‘Power of Mealtimes’ campaign is a global initiative created by Knorr, our savory food products brand, to inspire families to share more meals together. Research shows that the act of sharing a meal can have wide-ranging social, nutritional and well-being benefits. Knorr worked with Dr. Claude Fischler and Dr. France Bellisle – experts in sociology and human food intake and behavior – to undertake a global study exploring the

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In the UK and Ireland, Flora has worked with cholesterol charity HEART UK on a range of initiatives. Flora pro.activ and HEART UK have teamed up with the Primary Care Cardiovascular Society (PCCS) to create activheart – a behavioral change program for health professionals to encourage patients to improve their heart health through making small changes in their diet and lifestyle.

factors affecting modern mealtimes across the world. The study revealed a significant decline in the number of shared, quality meals around the world. In 2010 we conducted a study of 26 Brazilian families to explore the benefits associated with sharing mealtimes more often. Families involved in the research normally had two or fewer meals together per week. During the study, mothers were asked to organize two shared family mealtimes per week for a period of four weeks, without television or mobile phones. At the end of the study, participants reported benefits such as better conversation, greater proximity to fathers, better nutrition, and greater co-operation among family members, a better social life and improved school results for the adolescents. Families were also reported to have continued having more shared, quality mealtimes after the study ended. How can we promote health and nutrition to children? A balanced diet and lifestyle can help children to reach their full potential. The effects of poor nutrition at a young age can have lifelong implications. Healthy eating habits and active lifestyles need to start as early as possible in life.

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Here are some examples of nutrition and health education programs designed for children. In Turkey our ice cream brand Max worked with the Ministry of Education to implement a program called Action at School. This aims to increase children’s knowledge and awareness of healthy eating and physical activity. The education program was initially conducted at 59 schools in Izmid reaching over 52 000 children and their teachers. It was then adapted and extended to 1 000 schools, 3 600 teachers and over 138 000 students. Meanwhile in Canada, Popsicle ice cream is promoting physical activity by sponsoring grassroots community soccer involving over 20 000 children and their families. Unilever Foodsolutions Thailand has set up a training program for teachers and culinary staff in primary schools to help them serve lunches that improve children’s health. This project has been developed with the School of Bangkok Metropolitan Administration in Thailand. A Perfect Fit is a partnership between Unilever Israel, the Israeli Ministries of Health and Education and various pediatric and education associations to foster healthy eating habits for life. A Perfect Fit has been implemented in 1 000 primary schools and kindergartens. Involving teachers, students and nutrition experts, the partnership promotes the benefits of a healthy breakfast and a healthy lifestyle. Our Family Goodness brand in Latin America developed Clara in Foodland to promote an understanding of essential fats and their benefits. This unbranded series of animations which follows the adventures of Clara, an inquisitive seven-year-old. In her dreams Clara explores Foodland, where she has adventures and learns about nutrition and essential fats for growth. Clara in Foodland became a highly rated show on the Kids TV Network. Qualitative research revealed that mothers saw Clara as a trusted character and children engaged with the messages in the TV episodes and its digital version. It won the Prix Jeunesse Award which recognises high-quality

productions for children. Clara in Foodland helped to demonstrate that complex, nutritional messages can be communicated in an entertaining, engaging and meaningful way.

Addressing under-nutrition Under-nutrition is caused by a range of socio-economic issues and affects people all over the world. We aim to make an impact through the fortification of our products. Project Laser Beam Project Laser Beam (PLB) is a five-year $50 million (€36 million) initiative that was launched at the Clinton Global Initiative in 2009. It aims to reach 500 000 malnourished children via a public – private partnership between the UN World Food Programme (WFP), Unilever, Kraft Foods, DSM and the GAIN. Between 2007 and 2010 we worked with WFP through Together for Child Vitality. Project Laser Beam is the next step in our partnership with WFP. The new five-year agreement was signed at the World Economic Forum in Switzerland in January 2011. At the same time, Unilever CEO Paul Polman accepted WFP’s 2010 Hunger Champion Award in recognition of our work on child nutrition. Project Laser Beam has four pillars: • food: providing school meals • water: providing clean drinking water • hygiene: changing behavior and encouraging handwashing with soap • jobs: creating sustainable income for women. Employee engagement programs and our brands’ cause-related marketing campaigns will continue to support this partnership, for example through in-store activation campaigns, which will raise funds for PLB while generating business benefits such as increased brand recognition and sales. PLB is starting in Bangladesh and subsequently Indonesia. Together, both countries account for almost a quarter (24%) of the world’s malnourished children under five. Bangladesh is one of the worst-affected countries for chronic child malnutrition, with 7 million children battling hunger every day.

Climate change is having an increase on the planet. Our aim is to make our own activities more sustainable and encourage our consumers, suppliers and others to do the same. Reducing the impact of our products Our aim is to double the size of our business, but to do this in a way that reduces our total environmental impact. We have studied the lifecycle of our products, from how we source raw materials to how consumers use and dispose of the products and have identified the most significant environmental impacts. As part of our

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2.3.2 Reducing environmental impact

Sustainable Living Plan, we have set ourselves a target to halve the environmental footprint from the making and use of our products as we grow our business.

2.3.2.1 Greenhouse gases Climate change will have a growing impact on our business. We have set ourselves a bold reduction target for greenhouse gas emissions. By 2020 we aim to halve the greenhouse gas impact of our products across the lifecycle – from the sourcing of raw materials, through to consumer use and disposal.

Body and hair washing By 2015 we aim to reach 200 million consumers with products and tools that will help them to reduce their GHG emissions while washing and showering. Our plan is to reach 400 million people by 2020. Turn off the Tap By the end of 2011, our ‘Turn off the Tap’ campaign will be launched in the US through our Suave products, aiming to encourage people to turn off the shower while they lather, saving 30 seconds to a minute of shower time. ‘Turn off the Tap’ will be just one of a range of similar programs. We aim to reach and persuade 400 million consumers to change their shower habits by 2020, using the power of our brands to reach into households across the world, and our influence to help prevent the rise of greenhouse gases in the atmosphere.

Washing clothes We will reduce the GHG impact of the laundry process by: Concentrating our liquids and compacting our powders. Reformulating our products to reduce GHG emissions by 15% by 2012. Encouraging our consumers to wash at lower temperatures and at the correct dosage in 70% of machine washes by 2020.

But we are very conscious that consumer behavior is not in our direct control, and we need to find ways to measure the success of our products and campaigns. We carry out regular surveys and observational studies to see how people are using our products, and we are trialing a variety of ‘loggers’ – devices that consumers use in their washing machines to monitor use.

Manufacturing

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Cleaner Planet Plan Our Cleaner Planet campaign is rolling out worldwide, reminding consumers that they can enjoy clean clothes with a reduced environmental impact.

By 2020 CO2 emissions from energy from our factories will be at or below 2008 levels despite significantly higher volumes. This represents a 63% reduction per ton of production and a 43% absolute reduction (versus a 1995 baseline). We will more than double our use of renewable energy to 40% of our total energy requirement by 2020. We recognize that this is only a first step towards a long-term goal of 100% renewable energy. All newly built factories will aim to have less than half the impact of current ones. Meeting our target Change is already underway. We have reported significant reductions in GHG emissions since we first externally reported our energy use for all our factories in 1995. Reducing our impact further means continuing to invest in the most efficient technology and processes. We have invested in high-efficiency and biomass boilers, better energy conservation processes, and purchased certified green renewable energy. In Europe, we have installed five combined heat and power plants, and have another seven planned. In Vietnam, our Cu Chi factory is now partly powered by solar panels. And in Hefei, China, we installed a biomass-powered boiler that burns agricultural waste, reducing CO2 emissions by 14 000 tons per annum. We will expand on our program of renewable energy, pioneered by green electricity buying in Europe, until it reaches at least 40% of our total energy requirement. And where we build new lines or factories, we will design and engineer them to reduce their carbon footprint by at least 50% compared to current sites.

Transport

Meeting our target Transforming a logistics network as complex and farreaching as Unilever’s will take a huge effort. But some of the steps we will take appear very small. We estimate that as much as 80% of our logistics CO2 emissions relates to transport. A significant proportion of our savings will therefore come from improving ‘loadfill’ – making the most of a freight vehicle’s capacity on every journey.

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By 2020 CO2 emissions from our global logistics network will be at or below 2010 levels despite significantly higher volumes. This will represent a 40% improvement in CO2 efficiency. We will achieve this by reducing truck mileage; using lower emission vehicles; employing alternative transport such as rail or ship; and improving the energy efficiency of our warehouses.

Although that sounds simple, it is the abiding challenge of logistics networks everywhere – but one that we have met before. In 2008 we sat alongside Tesco as haulage co-chairs of a UK industry-wide initiative that saved 53 million road miles through vehicle-sharing and more efficient warehousing; and in Europe, our transport management company UltraLogistik has achieved a shift of around 30% of freight off the roads and onto rail. We are also improving our warehousing – both in terms of location and energy efficiency – and our equipment. At our Gebze DC site in Turkey, for example, we have switched from diesel to natural gas to heat our warehouse, reducing our annual CO2 emissions from the site by approximately 3%. Making logistics more carbon-efficient requires this kind of strategic approach – which is why we have re-organized internally, establishing a global overview of the sustainability of our network of thousands of contractors.

2.3.2.2 Water Water scarcity is a growing concern around the world, particularly in developing countries where much of our future growth is expected to come from. Reducing our water use where it matters most To grow our business sustainably we need to reduce the total amount of water used across our value chain, especially in water-scarce regions. In November 2010 we set a bold new target to halve the water associated with the consumer use of our products by 2020 as part of our Sustainable Living Plan.

Agriculture We will develop comprehensive plans with our suppliers and partners to reduce the water used to grow our crops in water-scarce countries.

Water has been at the heart of our Sustainable Agriculture Code since we started work in this area, with three of our eleven indicators ensuring that water use is monitored for quality as well as quantity. Trials continue worldwide – in California, for example, we have spent two years working with tomato growers, academics, suppliers and local agencies to pilot drip and furrow irrigation systems. Results from these experiments will help our business achieve our sustainability targets – but could also contribute significantly to the wider context of sustainable agriculture.

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Water Footprint Network Accurate measurement of the water used in agriculture is still in its infancy, but will be vital to gauging our progress. To address this Unilever was a co-founder of the Water Footprint Network (WFN), which draws on expertise from the International Finance Corporation, WBCSD, WWF and UNESCO as well as businesses to derive an industry standard way to measure water impacts. Some of our product lifecycle results have fed the WFN’s work.

Washing Clothes We will reduce the water required in the laundry process by: Making easier rinsing products more widely available. Providing 50 million households in water-scarce countries with detergents that deliver excellent cleaning but use less water by 2020. Meeting our target We want to ease the demand on water in water scarce regions in two main ways – by reformulating our products, so they require less water; and by informing consumers of the most water-efficient way to use them. We have already had some significant successes in design, many aimed at reducing rinsing – which uses 75% of the water in a wash. In India, where many consumers hand wash clothes, our Surf Excel Quick Wash formulation has been designed to save up to two buckets of water per wash – with overall savings of around 14 billion liters of water a year. Comfort easy Rinse, sold in Vietnam, has delivered similar savings. Product design can also reduce the amount of water actually contained in our detergents – by moving from dilutes to Persil Small and Mighty concentrated detergent we have saved 35 million liters of water a year in Europe.

Manufacturing By 2020, water abstraction by our global factory network will be at or below 2008 levels, despite significantly growing our volumes. This represents a 78% reduction per ton of production and a 65% absolute reduction (versus a 1995 baseline). We will focus in particular on factories in water-scarce locations. All newly built factories will be designed to abstract less than half the water of current ones. Meeting our target The availability of water varies widely around the world, and the impact of abstraction varies with it.

We have also used the World Business Council for Sustainable Development’s global water tool to help us decide which factories should be a priority for water management. We will focus our water-saving measures on these sites in particular, seeking to achieve at least 40% of our reductions where they are most needed.

2.3.2.3 Packaging and Waste

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Of the 14 countries where we measure our water impact we have identified seven countries as particularly ‘water-scarce’. Between them they account for almost half the world’s population: China, India, Indonesia, Mexico, South Africa, Turkey, and the US.

From the factory floor to the shop shelf, we will use only the essential amount of packaging materials to contain our products and will continue to reduce, reuse, recycle and eliminate as much packaging materials as possible. The packing challenge In recent years, concern has been growing about the environmental impacts of packaging in terms of the resources used to make it and its contribution to waste. As part of the Unilever Sustainable Living Plan we have set ourselves a bold new target to halve the waste associated with our products by 2020. We will achieve this through a combination of reducing, reusing, recycling and eliminating certain packaging materials. We also continue to tackle the waste arising from our manufacturing operations through our eco-efficiency program. At the same time we are addressing waste in our offices and aiming to source 100% of the paper and board for our packaging from certified sustainably managed forests or from recycled material by 2020.

Reducing packaging By 2020 we will reduce the weight of packaging that we use by a third through: Lightweighting materials. Optimizing structural and material designs. Developing concentrated versions of our products. Eliminating unnecessary packaging. Meeting our target In many cases, this is a target we will meet by tiny fractions at a time. It may take significant investment to reduce the weight of a material by just one gram through reducing its density or increasing its strength: but that weight saving will be multiplied by the millions of times a product is sold.

But we are also looking at the issue in the round: another way to save packaging is to make the product it protects smaller – or more concentrated – as we have done with Persil Small and Mighty in the UK. We will keep looking for these savings, always ensuring that any new materials we use are at least as environmentally friendly as the ones we replace.

Reusing packaging We will provide consumers with refills in our home and personal care portfolio to make it possible to reuse the primary pack.

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We estimate that improvements in design like using stronger, lighter polymers, or more ergonomic package shapes, will help us find more than half of our weight savings – along with eliminating unnecessary packaging altogether. We have already made savings by introducing refill pouches for a range of brands: for example in Brazil, we replaced Knorr Pomarola cans weighing 53.1 g with pouches weighing only 7.5 g, saving nearly 4 000 tons of packaging a year.

Meeting our target Making reusable packaging requires two major efforts on our part: • design, ensuring that both our primary packaging and our refill pouches are robust, economic and simple to use; • education, so that consumers understand their benefits. We have already had successes. In China, our Hazeline shampoo refill pouch generates only a third of the waste of a normal pump bottle. Consumers are reusing their shampoo bottles, and sharing in the cost savings: a success recognized by the Walmart Gold Award for Sustainable Packaging.

Recycling packaging Working in partnership with industry governments and NGOs, we aim to increase recycling and recovery rates on average by 5% by 2015, and by 15% by 2020 in our top 14 countries. For some this means doubling or even tripling existing recycling rates. We will make it easier for consumers to recycle our packaging by using materials that best fit the end-of-life treatment facilities available in their countries. By 2020 we will increase the recycled material content in our packaging to maximum possible levels. This will act as a catalyst to increase recycling rates. Our aim is to double the amount of aerosols that get recycled around the world by 2020. Sustainable Packaging Coalition We are committed to working with others to ensure that as much of our packaging is recycled as possible. Unilever is a founding member of the Sustainable Packaging Coalition, which has more than 160 members including packaging producers, users and retailers.

2.3.2.4 Sustainable Sourcing By 2020 we sustainably.

will

source

100%

of

our

agricultural

raw

materials

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Last year, through our partnership with Alupro- the UK aluminum packaging recycling organization and BAMA- the British Aerosol Manufacturers’ Association, we increased the number of local authorities that accept aerosols as part of their kerbside collection scheme from 67% to 75%, with more expected to follow this year. In June 2010, we worked together in the city of Leeds to remind consumers to recycle their aerosols by posters on bus stops and collection vehicles In Mexico, we are working with other businesses, including Coca-Cola and Walmart, on a project called Grupo Transforma, which establishes recycling centers in stores.

Growing for the future Changing weather patterns, water scarcity and unsustainable farming practices are putting pressure on agricultural supplies. Food security is increasingly under threat as standards of living improve around the world and demand for food increases. Sustainable agricultural sourcing is therefore a strategic priority for our business and brands. Building on many years of work in this area and as part of our Sustainable Living Plan, we have set ourselves a new target to source 100% of our agricultural raw materials sustainably by 2020. What do we mean by sustainable sourcing? Each of our agricultural raw materials, whether tea, tomatoes or soy, has a different growing method. When we began working on this issue, there were no agreed definitions of what sustainable farming meant for these and other crops. We established our Sustainable Agriculture Programme over 15 years ago. In that time, we have developed detailed guidelines on what sustainable agriculture means for our key crops. We define sustainable sourcing using 11 social, economic and environmental indicators: 1. Soil health: improving the quality of soil and its ability to support plant and animal life. 2. Soil loss: reducing soil erosion which can lead to loss of nutrients. 3. Nutrients: reducing the loss of nutrients through harvesting, leaching, erosion and emissions to air. 4. Pest management: reducing the use of pesticides. 5. Biodiversity: helping to improve biodiversity. 6. Farm economics: improving the product quality and yield. 7. Energy: reducing the greenhouse gas emissions associated with farming. 8. Water: reducing the loss and contamination of water supplies from agriculture. 9. Social and human capital: ensuring the capacity of people to earn and sustain their livelihoods as well as enhancing farmers’ knowledge, training and confidence. 10.Local economy: helping sustain local communities. 11.Animal welfare: ensuring animal standards are based on the ‘five freedoms’ defined by the Farm Animal Welfare Council.

Our aim is to ensure continued access to our key agricultural raw materials and ultimately to develop market mechanisms that allow consumers and retailers to influence the sourcing of raw materials through their buying habits. We will expect all our suppliers of agricultural raw materials to commit to improving their sustainability and to demonstrate that they adopt minimum standards and improve performance over time.

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These are now formalized in the Unilever Sustainable Agriculture Code – detailed guidelines for agricultural best practice. The Code applies to all Unilever suppliers of agricultural goods, the farmers producing them and contractors working on farms. The Code is incorporated into our contracts with our own growers. See downloads for more information.

Meeting the criteria for sustainable sourcing We use a variety of ways to ensure that our supplies of raw materials meet our sustainable sourcing requirements. We can do this either through third-party certification, or through a combination of self-verification and performance reporting. We are working with certification organizations such as the Rainforest Alliance (for tea), the Roundtable on Sustainable Palm Oil (for certified sustainable palm oil) and Fairtrade (for Ben & Jerry’s ice cream ingredients). However, external certification will not work across the board. Sometimes these standards do not apply to all types of raw materials or geographies. And it is very difficult for us to work with hundreds of different national and crop-specific schemes. Where certification standards do not exist, our approach is to supplement our certified partnerships with a system based on self-verification. Laying the foundations of our Sustainable Agriculture Code Unilever has been carrying out research into sustainable agriculture since the mid-1990s. Our ‘Lead Agriculture Programmes’ have investigated a range of techniques to reduce the environmental impact of farming, while maintaining yield and profits for farmers. We started with a focus on five key crops – palm oil, peas, spinach, tea and tomatoes. While some of these programs continue today, we have now extended our work into other crops and ingredients, for example fruit and vegetables, gherkins, dairy, eggs and vegetable oils. Throughout we have worked closely with local growers and planters, research institutes, industry and farmers’ associations, local government, NGOs and sometimes community groups. We began publishing these techniques for all our key crops in Good Agricultural Practice Guidelines booklets. In 2004, we started engaging our growers in the use of these Guidelines, in co-operation with other partners. This led to several changes and improvements leading up to the publication of the Unilever Sustainable Agriculture Code in April 2010.

Our business generates wealth and creates jobs in the communities where we operate. Supporting economic development Employees, governments, investors and many others benefit economically from our activities. A growing opportunity for us is to meet the needs of low-income consumers in emerging markets. Whether it is through new distribution channels, using smaller, more affordable formats or creating new products, we are trying to develop business models to reach new consumers. We seek to raise the skills and

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2.3.3 Enhancing livelihoods

productivity of the farmers and small businesses we work with so they can increase their incomes and improve their standard of living. As part of our Sustainable Living Plan we have set the following target: by 2020 we will enhance the livelihoods of hundreds of thousands of people as we grow our business.

2.3.3.1 Smallholder farmers Our goal is to link 500 000 smallholder farmers into our supply network. We will help to improve their agricultural practices and thus enable them to supply into global markets at competitive prices. By doing so we will improve the quality of their livelihoods. Meeting our target We already work with 100 000 smallholders and we are in a good position to understand their challenges. We also have a unique overview of the global supply situation. This means we can approach smallholders with an authoritative judgment on the economic viability of increasing their production – and the practical tools to help them achieve it. Working with partners in local and national governments, academia, and NGOs is critical to this. With their help, we can provide training, access to markets, equipment, and other practical aids to increase the yields and income of smallholders. In Kenya, for example, where our Lipton brand is the country’s largest buyer of smallholder-produced tea, we began a project in 2006 with the Kenya Tea Development Agency (KTDA), training growers at farmer field schools with a specific emphasis on sustainability. By 2008, average profit had increased by between 5-15%, and 38 000 participants had achieved Rainforest Alliance certification for their crops. The KTDA plans to expand the program to 500 000 farmers by 2013.

Recently we have been working with partners to boost productivity for groups of smallholders further afield. In South Africa’s Eastern Cape, we are part of a public-private partnership involving government agencies and academics aimed at developing sustainable paprika production. In Ghana, Tanzania and Nigeria, we work with the Novella Partnership to support farmers who harvest Allanblackia seeds, which we use for oil.

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Where we are now We have bought from smallholders for decades, providing a market for tea, cassava, spices, fruit and vegetables and other ingredients, often for farmers whose holdings are close to our estates or factories.

And we are working with Oxfam to explore ways of opening global supply chains to groups of smallholders in Azerbaijan, allowing them access to increased incomes, and thereby supporting their communities.

2.3.3.2 Micro-entrepreneurs Shakti, our door-to-door selling operation in India, provides work to large numbers of people in poor rural communities. We will increase the number of Shakti entrepreneurs that we recruit, train and employ from 45 000 in 2010 to 75 000 in 2015. We operate similar schemes in Bangladesh, Sri Lanka and Vietnam which we are also committed to expanding. Meeting our target Shakti, a Sanskrit word meaning ‘strength’, is a fitting name for the empowerment of the women who become Unilever distributors for their village. Known as Shakti Ammas (‘mothers’, a term of respect), these women gain self-esteem and a place in their society by selling good, affordable, essential products from a trusted brand. Crucially, they can earn enough to make a real difference to their lives – to be able to send their children to school, for example. How it works: • Working with local NGOs, Shakti executives visit villages to meet local selfhelp groups, and individuals within those groups who are keen to sell our products. • With the help of micro-finance by local rural banks and self-help groups, Shakti entrepreneurs buy stock from our rural distributors at cost price. • The distributors deliver stock directly to the Shakti entrepreneurs. They sell our products door-to-door to households in their village and nearby smaller villages, and keep the profit. Where we are now The mutual benefits to our business and local communities are clear: • For Hindustan Unilever, the initiative has doubled the number of rural households it reaches • For the Shakti entrepreneurs, earnings typically double their household income, and boost their sense of self-esteem.

Our challenge now is to extend our geographical reach, and we are excited at the possibilities for taking the Shakti model worldwide.

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Shakti is a proven model for taking a global brand into difficult terrain, such as India’s hilly North East States. With local partners we currently operate similar, smaller-scale operations in: • Bangladesh – Aparajita • Sri Lanka – Saubhagya • Vietnam – Project Hope.

2.4 Unilever Philippines’ CSR 2.4.1 Environmental Sustainability We aim to manage our business successfully and sustainably as a trusted corporate citizen around the world, respected for the value and standards by which we behave. As a responsible business, we seek to understand and manage our social, environmental and economic impacts, working in partnership with our suppliers, customers, with governments and NGOs, and increasingly with consumers who are at the heart of everything we do. In living up to our vision of creating a better future every day, our Corporate Social Responsibility (CSR) efforts finds its overarching mandate from the United Nations’ Millennium Development Goals (MDG) call for the business sector to align CSR initiatives and contribute to the achievement of the country’s MDG targets in the areas of Poverty, Education, Health and Environment. In Unilever Philippines, we have focused our CSR on the Environment, Children’s Nutrition and Community Building. Reducing Environmental Impact Environment care is a primary concern on Unilever Philippines. The company is committed to the following: 1. Ensure that our operations do not pollute 2. Encourage our neighbors not to pollute 3. Encourage wider participation to support this agenda

2.4.2 Solid Waste Management Our factory in Paco, Manila adheres to environmentally compliant and ISO certified processes to ensure that no harmful wastes come out of Unilever’s plants. Project Eliminate Our factory in Paco, Manila adheres to environmentally compliant and ISO certified processes to ensure that no harmful wastes come out of Unilever’s plants.

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Garbage is one of the biggest environmental issues facing Metro Manila and many other cities. In Unilever, we want make sure that our operations have minimum possible effect on the environment. Project Eliminate was created to target ZERO LANDFILL in our plant and offices. The target was reached in 2004 and the company has maintained it since then, concentrating on the following goals: •Reduce / Avoid – through Total Productive Maintenance (TPM), we improved our process and reduced waste by 80%. Furthermore, as plastic is made from oil, we developed a process to use the residual packaging waste as a co-fuel for cement manufacture.

•Reuse – sort all recyclable which cannot be avoided and develop processes to treat the waste that cannot be recycled. •Recycle – a lot of our landfill can be recycled directly. Teams were put in place to improve sorting on the production lines. Now, we sell carton and plastic to recyclers and as a result, our garbage was reduced by 50%.

2.4.3 Clean Water Sustainability

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Unilever Philippines commitment to a cleaner, greener river starts within our plant. The factory continues to achieve reductions in amounts of water used and wastewater generated during manufacturing processes, Our factory in Paco is at the heart of the city of Manila straddling between small tributaries of the Pasig River – a 25km waterway stretching between Laguna de Bay and Manila Bay. The dreadful state and realities of the river are things that Unilever employees see and smell every day. Operations Unilever Philippines’ commitment to a cleaner, greener river starts within our plant. The factory continues to achieve reductions in amounts of water used and wastewater generated during manufacturing processes. Perhaps our best-known on-site contribution is the company’s Domestic Waste Water Treatment Plan – the first such plant in Metro Manila, completed in 1998. Neighbors Unilever conducts regular clean-up drives and community-based waste management training in neighboring communities. Some of the contributions that Unilever made in Paco market are the provision of a waste composting machine, provision of drums to collect items for recycling, repairing and maintaining the market’s restrooms and producing leaflets encouraging cleanliness and waste management. And every year, the company mobilizes at least 500 volunteers composed of employees, students and neighboring communities in cleaning up the Manila Bay shoreline. Wider Advocacy Unilever, together with the Sagip Pasig Movement (Revive the Pasig River Movement), launched a community based initiative called the Clean River Zones (CRZ) – these are organized communities composed of government, NGO’s, academe, media, industries and residents who work together to pursue the rehabilitation of the Pasig River.

Unilever also supports the reforestation of La Mesa Watershed. A total of 75 hectares have been adopted and repopulated by Unilever with locally grown trees.

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Efforts were also put into play to campaign for the sustainability of Laguna de Bay – the only alternative freshwater source for the Southern Metro Manila areas. It started with a quest to gain global membership for the lake with the Living Lakes Network. To comply with the challenges of the candidacy, a Conservation of Laguna de Bay’s Environment and Resources (CLEAR) was formed, a tripartite group composed of Unilever, Laguna Lake Development Authority and an NGO – the Society for the Conservation of Philippine Wetlands. It is this group that also launched the first ever Tree-preneur Program here in the country.

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