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

Page1
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
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 Page2
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.

1887 Page3
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.

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

1890
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.

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 Page4
securing stable sources of raw materials.

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
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.

But the clouds of war are gathering. The First World War is set to make a big Page5
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.

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

1911
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.

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 Page6
acquired estate in Scotland's Western Isles. Many of these,
including Mac Fisheries Ltd, will eventually be bought by
Lever Brothers.

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
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.

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. Page7

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
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.

1940s Page8
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.
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 bomb-
struck 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 - deep-
freezing. 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 freeze-
dried 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.

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 Page9
Community, leads to a consumer boom and rising standards of
living.

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
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.
Page10
1960s
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
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.

1970s Page11
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
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.

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 Page12
the largest acquisition by a European company in the US at this time.

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.
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.

1989
Calvin Klein and Elizabeth Arden/Fabergé are acquired while Magnum ice cream is
launched in Germany.
Page13

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
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.

The Unilever Nutrition Centre is created.

Page14
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.
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.

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 Page15
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.

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.
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.

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. Page16

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.
New technology helps create Small & Mighty, the first super-concentrated liquid
laundry detergent that uses one-third the packaging, one-third the water and one-
third 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.

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.
Page17
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.
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.

Page18
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.
Bee
Represents creation, pollination, hard work and bio-diversity. Bees
symbolize both environmental challenges and opportunities.
Page19

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.
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

Hand
A symbol of sensitivity, care and need. It represents both skin and
touch. Page20
Flower
Represents fragrance. When seen with the hand, it represents
moisturizers or cream.
DNA
The double helix, the genetic blueprint of life and a symbol of bio-
science. It is the key to a healthy life. The sun is the biggest ingredient
of life, and DNA the smallest.
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.

Clothes
Represent fresh laundry and looking good.
Page21
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 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.
Page22
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
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.

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 Page23
business principles, comprises ten principles covering business integrity and
responsibilities relating to employees, consumers and the environment.

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
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.

Community involvement Page24

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.

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
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.

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 Page25
positions.

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
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.

Page26
Page27
Jointly-owned
PLC-owned
NV-ownedPLC
NV operating
operating
shareholders
shareholders
operating
PLC
NV companies
companies
companies Equaliza

Page28
 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.

Page29
President
PresidentChief
Asia,
Group
Global
President
Chief
Africa,
Human
Chief
Foods,
Financial
President
Western
Central
Executive
Resource
Home Officer
and
Europe
andOfficer
Eastern
Personal
Europe
Care
Americas

Page30
 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.

1.5.4 Non-executive Directors

The non-executive directors are the independent element in Unilever's Page31
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.
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.

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 Page32
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.

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 Page33
in Europe, South America and Asia before being appointed to
UEx in 2010.
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.
 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.

Charles Nichols - Group Controller

Charles Nichols was born in the UK in 1961. He has a degree Page34
in chemistry from Jesus College, Oxford and is a fellow of the
Chartered Association of Certified Accountants.

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.
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.

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 Page35
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.

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. Page36

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

Good food matters

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, ready-
to-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

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 Page37
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.

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. Page38

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.
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.

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.
Page39

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.
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.

In the film The Matrix, Keanu Reeves is given two choices. He can either take a Page40
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.

Page41

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.

Page42

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

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
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.

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. Page43

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
professional hairdressing market, TIGI® presents exciting new business
opportunities for Unilever.

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.

Page44
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.

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 Page45
$ 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.

The money will greatly help address hunger and

malnutrition, which continue to affect thousands
of school-age Filipino children. One province at a Page46
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.

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
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.

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 Page47
into pavers that will be given back to the 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 eco-
conscious community as well.
(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

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 Page48
force including former chairmen Ambassador Cesar Bautista and Howard Belton,
former HR Director Reynaldo Alejandro and former Foods Marketing Manager Obet
Pagdanganan.

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.
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.

We believe in providing an environment where individuals can achieve their goals,

Page49
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.

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
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 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 Page50
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.

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
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 e-
learning 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.

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 Page51
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.

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
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.

Page52
Employee safety, health & well-being
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

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.

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 Page53
adoption of the lessons learned.

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
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.

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 Page54
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.

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 Page55
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.

EMPLOYEE HEALTH AND WELL-BEING

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 preventative measures
(chemoprophylaxis) for all business travel
offer advice before, during and after travel.

We are developing KPIs to measure our achievements in these three areas. Page56

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
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

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. Page57
consumption of fruit and vegetables), physiological (heart rate and body mass
index), biochemistry (cholesterol and diabetes) and workplace (stress and
engagement).

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.
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”.

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, Page58
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.

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.
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 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 Page59
country chairman.

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
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.

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. Page60

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)
 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 mother-
to-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).

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 co-
ordinate 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 Page61
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.

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
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.

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 Page62
Business Coalition and the Global Health Initiative websites.

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.
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 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.
Page63
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.
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 well-

being
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

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.
Page64
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
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).

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 Page65
before breakfast
before lunch
before dinner and
after going to the toilet.

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
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.
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 Page66
Unite Against Germs).

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.
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.

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 Page67
campaign, seek to improve oral health through encouraging twice-daily
toothbrushing with fluoride toothpaste.

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
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.

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 Page68
self-sustaining. Over 12 000 girls benefited from 696 workshops over a weekend in
October 2010.

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
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.

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 Page69
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.

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.
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.

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.
Page70

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
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.

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. Page71

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.
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.

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 Page72
health through making small changes in their diet and lifestyle.

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
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.

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 Page73
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.

2.3.2 Reducing environmental Page74

impact
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
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.

Cleaner Planet Plan

Our Cleaner Planet campaign is rolling out worldwide, reminding
consumers that they can enjoy clean clothes with a reduced Page75
environmental impact.

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
 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
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.
Page76
Meeting our target
Transforming a logistics network as complex and far-
reaching 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.
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 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 Page77
businesses to derive an industry standard way to measure water impacts. Some of
our product lifecycle results have fed the WFN’s work.

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.
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.

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. Page78

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

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.

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.
Page79
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.
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.

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 Page80
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.

2.3.2.4 Sustainable Sourcing

By 2020 we will source 100% of our agricultural raw materials
sustainably.
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.

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 Page81
farms. The Code is incorporated into our contracts with our own growers. See
downloads for more information.

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.
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.
Page82
2.3.3 Enhancing livelihoods
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
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.

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 Page83
whose holdings are close to our estates or factories.

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.
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 self-
help 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.

Shakti is a proven model for taking a global brand into difficult terrain, such as Page84
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.

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

Garbage is one of the biggest environmental issues facing Metro Manila and many Page85
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

Page86
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.

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 Page87
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.

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.
Page88