uslp progress report 2012

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PRORESSREPORT 2012

UNILEVER

SUSTAINABLELIVIN PLAN


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ABOUT OUR REPORTIN

The Unlever Sustanable Lvng PlanProgress Report 2012, publshed n Aprl 2013, s complemented by

The onlne Unlever Sustanable Lvng Report for 2012Our webste s our prncpal means of reportngIt ncludes more background to our progress on the USLP and the scope of our assurance programmeas well as more detaled nformaton on our approach to runnng a responsble busness It also contansndces that cross reference our performance to the UN lobalompact Prncples, the MllennumDevelopment oals and lobal Reportng Intatve ndcatorswwwunlevercom/sustanable-lvng

Unlevers Annual Report and Accounts 2012 Makng Sustanable Lvng ommonplace, whch outlnesour busness and fnancal performance ncludng key fnancal and non-fnancal performance ndcatorswwwunlevercom/nvestorrelatons

Boundares for reportng

Ths Progress Report 2012 covers Unlevers globaloperatons for the perod 1 January-31 December2012 unless otherwse stated Data s provded forUnlevers wholly owned companes, subsdaresand keyont ventures and lsted enttes wherewe have a maorty ownershp

The Unlever Sustanable Lvng Plan sndependently assured Further nformatonon our approach to assurance can be found onpage 52

In November 2010 we set out the Unlever Sustanable Lvng Plan (USLP),our blueprnt for achevng our vson to double the sze of the busness whlst

reducng our envronmental footprnt and ncreasng our postve socal mpact

STRATEYSTRATEY OVERNANE >PRORESS ON THE PLAN >

1 Ourhangng World

2 hef Executve Offcers Revew

4 Ourompass Strategy

5 Our Busness Model

6 Embeddng Sustanablty

8 Operatonal Hghlghts

10 Unlever Sustanable Lvng Plan n 2012

12 Health and Hygene

Improvng hygene and promotng well-beng

18 Nutrton

Helpng people make healthy choces

24 reenhouseases

Helpng to tackle clmate change

30 Water

Reducng our water use where t matters most

34 Waste

Reduce, reuse, recycle

40 Sustanable Sourcng

rowng for the future46 Better Lvelhoods

Supportng economc development

50 overnance and External ommentary

52 Verfcaton and Metrcs

WWWUNILEVEROM/SUSTAINABLELIVIN


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STRATEY

1

OURHANINWORLD

9 bllonPeople expected on the planet by 2050populaton s growng by 200,000 a day

200 mllonUnemployed today 600 mllonobsneed to be created over the next decade

2 mllonhldren de every year from darrhoeaand pneumona

lmate changeIs acceleratng towards a temperaturerse greater than 2 degrees

Two-thrdsOf the world could be lvng nwater-stressed condtons by 2025

40%Of the worlds agrcultural land sserously degraded

40% rseIn food prces expected 2010-20

1 n 10Of the adult populaton s obese whlealmost 1 bllon people go hungry

THEONTEXT

The Unlever Sustanable LvngPlan s our strategc response tothe unprecedented challenges theworld faces It s at the heart of ourompass strategy whch sets outour ambtous vson and purpose

OUR PURPOSETO MAKE SUSTAINABLELIVINOMMONPLAE

We work to create a better future every day,wth brands and servces that help peoplefeel good, look good and get more out of lfe

Our frst prorty s to our consumers thencustomers, employees, supplers andcommuntesWhen we fulfl our responsbltesto them, we beleve that our shareholders wllbe rewarded

OUR RESPONSE

Unlever Sustanable Lvng Plan Progress Report 2012 Our hangng World

OVERNANE >PRORESS ON THE PLAN >


4/56Unlever Sustanable Lvng Plan Progress Report 2012hef Executve Offcers Revew2

VOLATILITY AND UNERTAINTYTHE NEW NORMAL2012 proved to be another challengngyear for the global economyommodtymarkets remaned volatle and costs rosesgnfcantly n excess of expectatonsThe threat of the worlds largest economygong over a fscal clff and the euro crss

added uncertanty and undermned fragleconsumer confdence

Overall we contnue to see sluggsh growthn most developed markets contrasted byrelatvely healthy consumpton and growthn asprng markets These both haveconsequences n terms of the worldssocal and envronmental equlbrum

Inequalty and rsng levels of unemployment especally among young people placeadded strans on socal coheson But thebggest challenge s the contnung threat toplanetary boundares, resultng n extremeweather patterns and growng resourceconstrants These have an ncreasngmpact on peoples lves

Put smply, we cannot thrve as a busnessn a world where too many people arestll excluded, margnalsed or penalsedthrough global economc actvty wherenearly 1 bllon go to bed hungry every nght,28 bllon are short of water and ncreasngnumbers of people are excluded from theopportunty to work

OUR VISION FOR ROWTHWe reman convnced that busnesses thataddress both the drect concerns of ctzens

and the needs of the envronment wllprosper over the long term We need tobuld new busness models that enableresponsble, equtable growth that sdecoupled from envronmental mpact

Ths thnkng les at the heart of the UnleverSustanable Lvng Plan and ourompassvson of doublng the sze of the busnesswhlst reducng our envronmental footprntand ncreasng our postve socal mpact

To acheve our vson, we have set cleargoals to halve the envronmental footprntof our products, to help more than 1 bllonpeople take acton to mprove ther health

and well-beng, to source 100% of ouragrcultural raw materals sustanably andto enhance the lvelhoods of people acrossour value chan

As the thnkng becomes embedded nour busness, there s ncreasng evdencethat t s acceleratng our growth n waysthat contrbute to postve change npeoples lves

STRON BUSINESS PERFORMANEUnlever performed well n 2012, despte

dffcult economc condtons

Turnover ncreased by 105%, takngUnlever through the 50 bllon barrer,a sgnfcant mlestone to becomng an80 bllon company Emergng marketsgrew for the second consecutve year bymore than 11% and now account for 55%of total busness Personalare andHomeare showed double-dgt growth,n lne wth our strategc prortes

UNILEVER SUSTAINABLE LIVINPLANThe Unlever Sustanable Lvng Plan(USLP) nspres us to grow n lne wth our

new purpose to make sustanable lvngcommonplace The lens of sustanablelvng s helpng us to drve brands that havea strong purpose n peoples lves, to reducecosts and take waste out of the system andto drve nnovaton that wll make a postvedfference to the envronmental and socalchallenges facng us all The Plan pushesus to thnk ahead, reducng rsk andmakng the busness more reslent forthe long term

In 2012 we contnued to make good progressdelverng the Plans commtmentsOur factores made great strdes n cuttng

energy, water and wasteFor example allour US operatons have moved to purchasng

ther energy from certfed, renewablesources and more than half our stesworldwde have acheved zero non-hazardous waste to landfll

What makes our commtment unques that t s across the total value chanWe are not only managng our own andupstream operatons, but we are alsodetermned to help people to lve moresustanably through the mpact of ourproducts n ther lves

We have mantaned the momentum

towards our target of sourcng all ouragrcultural raw materals sustanably,reachng 36% by the end of 2012 All ourpalm ol s now covered by reenPalmcertfcates We have made a start n buyng

HIEFEXEUTIVEOFFIERS

REVIEW


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STRATEY

3Unlever Sustanable Lvng Plan Progress Report 2012 hef Executve Offcers Revew

Ths s why we are workng wth organsatonsand ntatves such as the onsumeroodsForum, the World Busness ouncl forSustanable Development, the WorldEconomc Forum, the Tropcal Forest Allance2020, Refrgerants, Naturally, thelobalreen rowth Forum and the UNs ZeroHungerhallenge and Scalng Up Nutrtonntatves Ths s also why I agreed toonthe UN Secretaryenerals Hgh Level Panelto revew the Post-2015 Development Agenda

LOOKIN AHEADDespte the scale of the task, I belevewe are on track to become a sustanablegrowth company But one thng s sure ths wll not be possble wthout thededcaton and hard work of our 173,000colleagues and our many partners aroundthe world They are demonstratng thepower of purpose, makng Unlever aganft to wn

I hope ths report gves you a good senseof the progress we are makng, and ourambton for the future Please contact mef you have comments and suggestons thatwll help us at

Paul_PolmanSustanableLvngunlevercom

Warm regards

Paul Polman

hef Executve Offcer

traceable ol Investment n a new palm olprocessng factory n Indonesa, workngwth partners and other ntatves are allhelpng us to make progress towards ournew commtment to 100% certfedsustanable palm ol whch s traceableback to the plantatons on whch t s grown

We are also helpng to mprove thelvelhoods of farmers whle guaranteengfuture supples, and we wll ncreasnglyplace a specal focus on women, due to themultpler effect we know that women haven developng socetes We are workng wthmany partners, ncludng wth RanforestAllance on tea for Lpton, wth Barryallebaut on cocoa for Magnum and wthvegetable farmers through KnorrsSustanablty Partnershp Fund

Brands that are startng to put thersustanable lvng ambton at the heart ofther proposton not surprsngly enoyedstrong growth Lfebuoy soap delveredanother year of double-dgt growth whlescalng up ts handwashng campagnsOur Brush Day and Nght oral healthcampagn, whch encourages parents andchldren to adopt good brushng habts,reached 49 mllon people and has helpedour Sgnal brand grow by 22% snce 2008

We see an equal acceleraton nsustanablty-led nnovatons, such asgreat-tastng low fat margarnes wthup to 80% less saturated fat than butter(and less envronmental mpact) and moreconcentrated detergents

HALLENES REMAINWe stll face challenges n somemportant areas

Scalng up to reach 1 bllon peoplecost-effectvely wth hygene programmesthat make handwashng a habt remansa challengeEqually, we are fndng thathelpng people to use less hot water andenergy when washng, showerng and dongthe laundry s challengngWe contnue toexperment wth ways to tackle ths, suchas detergents whch perform well n shorterwash cycles, and dry shampoo whch mghtencourage people to wash ther har wth hot

water less often

Through workng wth Oxfam on a studyof our busness n Vetnam over 2011-12 wehave ganed mportant nsghts nto humanand labour rghts n our own and oursupplers operatons The study hasmplcatons for our global busnessWe are dentfyng how we can promotesustanable lvelhoods for all our workers

and those n our value chans

In areas where bg breakthroughs areneeded, we must step upont workng wthothers Makng more progress on healthyeatng, for example, wll requre actonacross the ndustry whlst governmentswll need to take a bgger lead on acton tocombat clmate change and decarbonseenergy supples

Overall t s clear that we wll need creatveas well as scence-based solutons f weare to acheve our full ambton by the endof the decade

WORKIN WITH PARTNERSPartnershps are key to unlockng thesesolutons So I partcularly want to thank thepartners who are assstng us to delver thsnew busness modelNOs who are helpngus to address real ssues, supplers who arebrngng us solutons for sustanable lvng,and our customers wth whom we share anambton to reach consumers at scale

Wth scale comes responsblty so wemust contnue to play a leadershp role nseekng solutons for global transformatonalssues lke clmate change, food securty andpoverty allevaton

Our Plan has three bg goals to acheve by 2020

Help more than 1 bllon people mprovether health and well-beng

Halve the envronmental footprnt ofour products

Source 100% of our agrcultural rawmaterals sustanably and enhancethe lvelhoods of people across our

value chan

THE UNILEVER SUSTAINABLE LIVIN PLAN



6/564 Unlever Sustanable Lvng Plan Progress Report 2012Our ompass Strategy

REDUCE

ENVIRONMENTAL

FOOTPRINT

DOUBLE THE

BUSINESS

POSITIVE

SOCIAL IMPACT

OUR VISIONDOUBLE THESIZE OF THE BUSINESS, WHILSTREDUIN OUR ENVIRONMENTALFOOTPRINT AND INREASIN

OUR POSITIVE SOIAL IMPATWe wll lead for responsble growth, nsprng people to take smalleveryday actons that wll add up to a bg dfference

We wll grow by wnnng shares and buldng markets everywhere

OUROMPASS

OUROMPASSSTRATEY

The volatlty and uncertanty facng theworld reman the new normal and areset to last for the medum term Theseongong pressures economc, socal andenvronmental frame our approach to ourbusness strategy and our busness model

We call our busness strategy the ompass,snce t sets out a constant path for Unleverfor the long term Theompass lays out ourambtous vson and purpose, and defnesfour Wnnng wth pllars wthn thebusness that wll help us acheve both

brands and nnovaton marketplacecontnuous mprovement and peopleOur performance aganst these pllarss explaned n our Annual Report andAccounts 2012 Frst developed n 2009,theompass was sharpened n 2012 butts core elements remaned the same

In 2012 we added our new purpose To make sustanable lvng commonplaceThs bulds on the orgnal purpose ofour 19th century founder, Wllam Lever,to make cleanlness commonplace

Theompass gves lfe to our determnatonto buld a sustanable busness for the longterm and to fnd new ways to operate thatdo notust take from socety and theenvronment Ths s captured n theUnlever Sustanable Lvng Plan (USLP)


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STRATEY

5Unlever Sustanable Lvng Plan Progress Report 2012 Our Busness Model

PROFITABLE VOLUME GROWTHProftable volume growth s the bass of thevrtuous crcle of growth Stronger brandsand nnovaton are the key drvers behnd t

onsstently strong volume growth buldsbrand equty as we reach more consumers,more often

COST LEVERAGE + EFFICIENCYProftable volume growth allows usto optmse the utlsaton of ournfrastructure and spread fxed costs

over a larger number of unts produced,reducng the average cost per untIt mproves our proftablty and allowsus to nvest n the busness

INNOVATION + MARKETINGINVESTMENTLower costs and mproved effcency enableus to strengthen our busness further

New and mproved products are the resultof nvestment n R&D and, together wtheffectve marketng, strengthen our brandequty Ths results n proftable volumegrowth, self-perpetuatng the vrtuous crcleof growth

A VIRTUOUS IRLE OF ROWTH

OURBUSINESSMODEL

SUSTAINABLE

LIVING

PROFITABLE

VOLUME

GROWTH

COST

LEVERAGE +

EFFICIENCY

INNOVATION +

MARKETING

INVESTMENT

OURBRANDS

OUR

OPER

AT

IONS

OURP

EOPLE

OUR BRANDSStrong brands and nnovatonare central to our ambton todouble n sze We are nvestngn brand equty, fndng andstrengthenng the connectonsbetween consumers and theproducts they buy Where equty

s strong, we are leveragng t creatng effcences by focusngon fewer, bgger proects thatenhance margns And we areseekng superor productswhch consumers wll prefer,drvng proftable growth

OUR OPERATIONSOn any gven day 2 bllonconsumers use our productsand we want to reach manymore, by developng nnovatveproducts that address dfferentconsumer needs at dfferentprce ponts To do ths we use

our global scale to help delversustanable, proftable growthby seekng to add value atevery step n the value chanby enhancng product qualtyand customer servce, androllng out nnovatons fasteracross all markets

OUR PEOPLESustanable, proftable growthcan only be acheved wth therght people workng n anorgansaton that s ft to wn,wth a culture n whchperformance s algned wthvalues We are ncreasngly

an agle and dverse busnesswth people motvated by donggood whle dong well Weare buldng capablty andleadershp among our peopleand attractng some of the besttalent n the market place

SUSTAINABLE LIVINGFor us, sustanable, equtablegrowth s the only acceptablebusness model Busnessneeds to be a regeneratveforce n the system that gvest lfe For example, by reducngwaste, we create effcences

and reduce costs, helpngto mprove margns whlereducng rsk Meanwhle,lookng at more sustanableways of developng products,sourcng and manufacturngopens up opportuntes fornnovaton whle mprovngthe lvelhoods of our supplers

Our busness model s desgnedto delver sustanable growthFor us, sustanablty s ntegralto how we do busness In aworld where temperaturesare rsng, water s scarce,energy s expensve, santatons poor n many areas and foodsupples are uncertan and

expensve, we have botha duty and an opportunty toaddress these ssues n theway we do busness

The nputs to the model, lkethose of all maor packagedgoods manufacturers, arethreefold brands people andoperatons These map drectlyon to ourompass Wnnngwth pllars both contnuousmprovement and the marketplace pllars support the

operatons strand of the modelThe dfferentator n ourbusness model s our USLP andthe goal of sustanable lvng

The outputs of the model arethreefold sustaned growthlower envronmental mpactand postve socal mpactThese algn drectly wthour vson statement

The dagram below representsour vrtuous crcle of growthIt summarses, smply, how wederve proft from the applcatonof our busness model



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EMBEDDINSUSTAINABILITY

6 Unlever Sustanable Lvng Plan Progress Report 2012Embeddng Sustanablty

In order to realse sustanable growth,we are ntegratng sustanablty ntoour strategy, brands and nnovatonWe are workng wth our customersand supplers, engagng employeesand forgng new partnershps

OUR BUSINESS STRATEY

Wth 7 bllon people on our planet, the earthsresources can be straned Ths meanssustanable, equtable growth s the onlyacceptable model of growth for our busnessWe beleve growth and sustanablty arenot n conflct In fact, n our experence,sustanablty drves growth

By focusng on sustanable lvng needs,we can buld brands wth a sgnfcantpurposeBy reducng waste, we create

effcences and reduce costs, whchhelps to mprove our margnsBy takng

a long-term vew, we can reduce rsk,for example securng raw materal supplythrough sustanable sourcngAnd we havefound that once we start lookng at productdevelopment, sourcng and manufacturngthrough a sustanablty lens, t opens upgreat opportuntes for nnovaton

Our product category and functonalteams are playng a central role n drvngsustanable growth They revew progressaganst ther targets quarterly And n2012 we asked our busnesses n ourlargest markets to dentfy a small numberof prorty areas where they can harnessthe Plan to drve growth, such ashandwashng wth Lfebuoy soap n Indaand the Dove Self-Esteem Proect nthe US

We are lnkng progress to reward wthsustanable busness goals n the remuneratonof a growng number of managers Thsncludes theEO and several members ofthe Unlever Leadershp ExecutveWe havesustanablty champons coverng everykey functon, category and country

BRANDS AND INNOVATIONWe are acceleratng the ntegraton ofsustanablty nto our brandsBrands aredevelopng ther own USLP ambton forexample Knorr has chosen sustanablesourcngOur Brand Imprnt model enablesus to take a 360-degree vew of the socal,envronmental and economc mpactsof brands and among other outputs trggered Lptons decson to source ts

tea sustanablyWe are now applyng themethodology to help brands make a

sustanable busness contrbutonn lne wth ther postonngSmlarly,our Fve Levers forhange methodologys helpng our brands prompt consumersto adopt new behavours (see page 15)

Innovaton s crtcal to achevng oursustanable lvng goalsWe are commttng

a sgnfcant proporton of our R&D budgetto fndng sustanablty-led technologesWe are also supportng the commercalsatonof nnovatve technologes through ournvestment arm, Unlever Ventures

In 2012 our Open Innovaton team launchedan onlne system whch offers outsdeexperts the chance to work wth Unleveron research proects n a number of areasthat wll promote sustanable lvng, suchas cold-water wash laundry productsWe have receved 150 submssons rangngfrom packagng desgn to energy-effcentprocesses

We have updated the tools we use to evaluatethe envronmental mpacts of new productsand packagng, known as Innovaton ProcessManagementWe use a smple traffc lghtsystem to compare the potental mpacts ofan nnovaton wth the products we currentlymarket as well as the mpacts on ourcategory portfolo

THE MARKETPLAEMany retalers have sustanablty goalsFor the last three years we have workedon A Better Future Starts at Home, a ontshopper programme wth Tesco It combnesadvce on sustanable lvng wth promotons

of sustanable products Nne countres fromthe UK to hna have run the programme

INVESTING IN SUSTAINABLE BUSINESSThrough Unlever Ventures, we are nvestng n early and md-stagecompanes wth new technologes and compellng busness modelsthat are of strategc relevance to UnleverSustanable busness sa key factor n ths mx

Our portfolo ncludes a number of nnovatve start-ups from the greentech and low-carbon sectors, such as Recyclebank (see page 37)In 2013 we are launchng a new Sustanable Busness Venture Fundwth50 mllon allocated to nvestment n new busnesses whchspecfcally support our USLP goals

INNOVATION IN MANUFACTURINGMany employees have sustanable busness deas and ourManufacturng team has set up a Small Actons, Bg Dfferencebudget to make them happen

Factory employees can apply for nvestment for ther deas whch areevaluated on the bass of envronmental beneft and fnancal returnIn 2012 over 600 proects were dentfed and the best 100 wll bemplemented n 2013 Ther combned benefts wll delver savngsof around 1% of our global energy and water use and acheve anaverage pay back of under two years

SUSTAINABLE

LIVING

INNOVATION +

MARKETING

INVESTMENT

SUSTA

INAB

ILITY

LEDGROWTH

LESSW

ASTE

,LESSRISK

SUSTA

INABLEINNOVATION&COLLABORATION

PROFITABLE

VOLUME

GROWTH

COST

LEVERAGE +

EFFICIENCY


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STRATEY

7Unlever Sustanable Lvng Plan Progress Report 2012 Embeddng Sustanablty

In 2012 we launched aont programme wthWalmart, The Lvng Proect, that wll help200 mllon shoppers every week makesustanable chocesSo far t has beenmplemented n Brazl,hna and the US

WORKIN WITH OUR SUPPLIERSIn 2011 Unlever launched a programme

called Partner to Wn, to work moreclosely wth ts key supplers, ncludng onsustanable practces In partcular, we aredevelopng partnershps wth our agrculturalraw materal supplers to acheve oursustanable sourcng goal For example,we establshed the Knorr SustanabltyPartnershp Fund to support vegetablesupplers on complex sustanable agrcultureproects that they are unable to tackle alone

PEOPLEOur vson of creatng a sustanable busnesss motvatng for employees, but t s notalways clear to them how to apply t to therroleWe ntegrate sustanablty nto exstngtranng and have created bespoke tranng,for example, new brand managers engagen a week-long sustanable marketngchallenge durng ther foundaton course

OLLABORATION WITH PARTNERSHIPSlobal ssues such as deforestaton, waterscarcty and under-nutrton are too complexfor any sngle organsaton to tackle aloneWe are engagng wth governments tocreate an envronment n whch the bgsustanablty challenges can be tackled

At the UN onference on Sustanable

Development n Ro n 2012 we urgedcollaboraton to agree Sustanable

Developmentoals to succeed theMllennum Development oals OurEO was subsequently nvted toon theUN Secretary enerals Hgh Level Panel torevew the post-2015 Development Agenda

We recognse the scale of change thats needed and we are steppng up ourengagement n mult-sector and cross-sector stakeholder groups, such as theTropcal Forest Allance 2020, Refrgerants,Naturally and the Roundtable on SustanablePalm Ol We take part n ntatves such asthe World Economc Forums New Vson forAgrculture and the UNs Scalng up Nutrton(SUN) and Zero Hunger hallenge whch

tackle the challenge of hgh levels ofunder-nutrton and hunger n the world

UNILEVER FOUNDATIONEstablshed n 2012, the Unlever Foundatons msson s to mprovethe qualty of lfe for communtes through the provson of hygene,santaton, access to clean drnkng water and basc nutrton, andby enhancng self-esteem

Workng wth fve partners Oxfam, PSI (Populaton ServcesInternatonal), Save thehldren, UNIEF and the World FoodProgramme (WFP) the Foundaton s developng programmesdesgned to grow the busness and support the USLPs goal to helpmore than 1 bllon people take acton to mprove ther health andwell-beng

TROPICAL FOREST ALLIANCE 2020Unlever has led the process of buldng the Tropcal Forest Allance2020, a publc-prvate partnershp between the US government andtheonsumer oods Forum (F)TheF s a large ndustry bodymade up of almost all the maor retal and consumer goods companesn the world, wth revenues amountng to more than $3 trllon

The Tropcal Forest Allance 2020 was announced at the Ro+20summt It ams to reduce and eventually elmnate the deforestatonassocated wth the sourcng of commodty crops such as soy, palmol, beef, pulp and paperThe Dutch and Norwegan governments havesgned up and companes, NOs and other governments wll benvted toon The Indonesan government s co-hostng a workshopon the palm and paper value chans n 2013

UNILEVERS REENHOUSE AS FOOTPRINT (SEE PAE 25)

Spans our entre portfolo of brands and all countres n whch we sell our products

Has a socal and economc dmenson our products make a dfference to health andwell-beng, and our extended supply chan supports the lvelhoods of many people

When t comes to the envronment, we work across the whole value chan from thesourcng of raw materals to the way consumers use our products

THREE KEY FEATURES OF OUR PLAN

WE WORK AROSS THE VALUE HAIN

+ + + +

25% 4% 2% 1%68%

Raw materals Manufacture Transport onsumer use Dsposal



10/568

OPERATIONALHIHLIHTS

* Further detals of our key fnancal ndcators can be found n our Annual Report and Accounts 2012

These key non-fnancal ndcators form part of the Un lever Sustanable Lvng Plan

Measured January-September 2012 In 2012 we moved to full volume-based (tonnes sold) report ng for ths target Ths number s not comparable to prevouslyreported numbers measured by product (stock keep ng unt), see page 20

NAMET refers to North Afrca, Mddle East and Turkey AMET refers to Afrca, Mddle East and Turkey and RUB refers to Russa, Ukrane and Belarus

69%2011 65%

71mllon2011 345 mllon

385kg2011 496kg

34%2011 16%

80%

2011 See below

100%2011 64%

138%2011 135%

9997kg2011 11831kg

48,0002011 45,000

43 bllon201131 bllon

223m32011 240m3

1162011 127 per 1mhours worked

per 1mhours worked

UNDERLYIN

SALES ROWTH

HEALTH AND HYIENEPeople reached wth Lfebuoyhandwashng programmes

WASTE

Total waste per tonneof producton

UNDERLYIN

VOLUMEROWTH

NUTRITIONPortfolo by volume meetng saltlevels equvalent to 5 g per day

SUSTAINABLE SOURIN

Palm ol purchases fromsustanable sources

ORE OPERATIN

MARIN

REENHOUSEASESO2 from energy per tonneof producton

BETTER LIVELIHOODS

Number of Shakt

entrepreneurs(cumulatve snce 2010)

FREE

ASH FLOW

WATERWater per tonne of producton

PEOPLE

Total recordable accdentfrequency rate

KEY FINANIAL INDIATORS*

KEY NONFINANIAL INDIATORS

In 2012, we contnued to make good progressn the transformaton of Unlever to a sustanablegrowth company We exceeded 50 bllon turnover,wth all regons and categores contrbutng togrowth Despte further cost ncreases and volatlecommodty markets, our gross margn rose by 01percentage ponts and our core operatng margnby 03 percentage ponts, reflectng the dscplnedmplementaton of our strategy

Turnover s up 105% at 513 bllon wth netacqustons contrbutng 11% and currencychanges 22%

Underlyng sales growth of 69% s well balancedbetween volume +34% and prce +33%

Emergng markets grew underlyng salesby 114%, now representng 55% of turnover

Unlever Sustanable Lvng Plan Progress Report 2012Operatonal Hghlghts


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STRATEY

On any gven day

2 bllonconsumers worldwde usea Unlever product

Around

173,000employees at the end of 2012

Turnover of

51 bllonfor 2012

Products sold n over

190countres worldwde

Asia/AMET/RUB

Turnover 204 bllon Underlyng sales growth 106% Underlyng volume growth 57%

The Americas Turnover 171 bllon Underlyng sales growth 79% Underlyng volume growth 31%

Europe Turnover 139 bllon Underlyng sales growth 08% Underlyng volume growth 09%

OUREORAPHIAL AREAS

9

HOME CAREREFRESHMENT

OURATEORIES

Turnover 181 bllon Underlyng sales

growth 100% Underlyng volume

growth 65%

Market shares ncreasedacross geographes, wthstrong gans n LatnAmerca, NAMET & RUBand North Amerca drvenby har care, deodorantsand skn cleansng



growth 62% Market share gans

were drven by powerfulperformance n nearly allour marketsn laundryn partcular n Europe,hna and South Afrca



growth (09)%

Market shares were downslghtly, reflectng a mxedperformance wth volumegans n dressngs, offsetby declnes n savoury andvolume share stablsatonn spreads



growth 24% Market shares were

slghtly down overall,reflectng prce aggressvecompetton n ce creamn developed markets

PERSONAL CARE

HOME CARE

FOODS

REFRESHMENT

Unlever Sustanable Lvng Plan Progress Report 2012 Operatonal Hghlghts


FOR MORE: WWW.UNILEVER.COM/

INVESTORRELATIONS


12/56

For more see page 12 >




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STRATEY

5 WASTE

Halve the waste assocated wththe dsposal of our productsby 2020*

OUR WASTE IMPAT PER ONSUMER USE HAS

REDUED BY AROUND 7%SINE 2010*

Reduce packaging

Recycle packagngIncrease recyclng andrecovery ratesIncrease recycled content

Reuse packagng

Tackle sachet waste

Reduce waste frommanufacturng

Reduce total wasteZero non-hazardous wasteto landfllNew factores

99 Elmnate PV

Reduce offce wasteRecycle, reuse, recoverReduce paper consumptonElmnate paper n processes

4 WATER

Halve the water assocated wthhe consumer use of our productsy 2020*+

OUR WATER IMPAT PERONSUMER USE HASREMAINED BROADLYUNHANED SINE 2010*

Reduce water use n thelaundry process

Easy rnse productsProducts that use less water

Reduce water use n skncleansng and har washng

Reduce water usen agrculture

Reduce water use nmanufacturng process

Reduce abstractonNew factores

6 SUSTAINABLESOURIN

By 2020 we wll source 100% ofour agrcultural raw materalssustanably

36% OF ARIULTURALRAW MATERIALSSUSTAINABLY SOUREDBY END 2012

Palm olSustanableTraceable

Paper and board

Soy beans and soy ol

Tea

Frut

Vegetables

ocoa

Sugar

Sunflower ol

Rapeseed ol

Dary

Fartrade Ben & Jerrys

age-free eggs

Increase sustanable sourcngof offce materals

7 BETTERLIVELIHOODS

By 2020 we wll engage wth atleast 500,000 smallholderfarmers and 75,000 small-scale

dstrbutors n our supply network

450,000 SMALLHOLDERFARMERS TRAINEDSMALLHOLDERS METRIIN DEVELOPMENT48,000 SMALLSALESHAKTI DISTRIBUTORSBY END 2012

Smallholder farmers

Small-scale dstrbutors

Unlever Sustanable Lvng Plan Progress Report 2012 Unlever Sustanable Lvng Plan n 2012 11

By 2020 our goal s to halve the envronmental footprnt of the makng anduse of our products as we grow our busness*

Our greenhouse gas and waste impacts per consumer use have reduced

and our water impact per consumer use has remained broadly unchanged.*

REDUINENVIRONMENTAL IMPAT

By 2020 we wll enhance the lvelhoodsof hundreds of thousands of people aswe grow our busness

We have trained around 450,000smallholder farmers.

ENHANINLIVELIHOODS







14/56Unlever Sustanable Lvng Plan Progress Report 2012Health and Hygene

HEALTH ANDHYIENEIMPROVINHYIENE

AND PROMOTINWELLBEIN

1

12


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OVERNANE >STRATEYSTRATEY >



HEALTH AND HYIENE1

During 2012 Lifebuoy launched handwashing programmes in seven new countries:Egypt, Ghana, Nigeria, South Sudan, Uganda, Zambia and Zimbabwe.

Our behaviour change programmes are now running in 16 countries, reaching eightof the top ten countries most affected by child mortality.

LIFEBUOY TARGETS COUNTRIES WITHHIGH CHILD MORTALITY

OUR TARETS By 2015, our Lfebuoy brand ams

to change the hygene behavour of1 bllon consumers across Asa, Afrcaand Latn Amerca by promotng thebenefts of handwashng wth soap atkey tmes

OUR PERFORMANE

119 mllon people reached snce2010, of whom 71 mllon werereached n 2012

OUR PERSPETIVEThe maor challenge we face s scalng

up our handwashng programmes cost-effectvely Snce 2010, we have madestrong progress, developng modelswhch more than halve the costWe haveexpanded the programme to 16 countresn 2012 and have reached fve tmes asmany people as we dd n 2010 Our mostsgnfcant expanson s n Afrca whereprogrammes are now runnng n nnecountres, reachng more than 11 mllonpeople n 2012, compared to 400,000 over2010-11 Ths has contrbuted to Lfebuoyscontnued double-dgt busness growthn 2012

Partnershps wth NOs and government

are crtcal by tappng nto exstngon-ground networks and expertse wecan reduce costs and reach more peopleIn Afrca, Unlever Foundaton partner PSI(Populaton Servces Internatonal) andthe Mllennum Vllages Proect arehelpng us to adapt our programmes fordfferent contexts In Inda we are workngwth the government and Foundatonpartner UNIEF to promote handwashngn Madhya Pradesh and n Afrca andSouth Asa, wth Water & Santaton forthe Urban Poor These partnershps arealso buldng local capabltes to sustanthe programmes for the long term

We contnue to evaluate mpact In Indonesawe conducted a quanttatve study wthTNS, a market research company,to assess mpact when the programme

REDUE DIARRHOEALAND RESPIRATORYDISEASE THROUHHANDWASHIN

14

Lfebuoy has ambtous plans to scale upthe reach of ts school hygene promotonprogrammes n AfrcaHowever, n somecountres the brand has been launched

or re-ntroduced only recently and s stlla relatvely small brandA mult-brandprogramme s more cost-effcent and san opportunty to connect people to moreof our brands that have a socal mpact

Ourentral Afrcan busness and Lfebuoyhave ploted a programme wth ourlose Uptoothpaste and Blue Band margarne brandsn Ngera and an external partner, Dlte,whch produces solar lanterns to enablechldren to do homework after dark

The 21-day programme uses multpleclassroom contacts to help chldren practsenew behavourshandwashng wth soap,

brushng teeth day and nght, and eatngwellWe have been able to reduce our costper contact sgnfcantly by sharng costsacross brands The programme has hugepotental for roll-out n other countres nAfrcaSchools, governments and NOssupport ths approach as, by promotnga number of healthy behavours together,t has the potental to delver sgnfcanthealth mpact at lower cost

Some communtes can be dffcult andcostly for Lfebuoy to reach by tselfWe arecollaboratng wth the Mllennum VllagesProect to promote handwashng wth soapn rural communtes across Afrca

The proect wll enable us to adapt ourcurrent handwashng programme and

advocacy to ths settng, reachng 475,000people across ten countres by 2015Ouram s to work together to develop scalable,cost-effectve water, santaton and hygenenterventons whch can then be rolled outat natonal level and to new countres,mprovng health through better hygene

The frst 28 days of lfe s the perod whenchldren are most vulnerable to dseaseand nfant mortalty s hghestEvery yearan estmated 36 mllon newborn babesde n the frst month of ther lvesSmple,low-cost health nterventons such ashandwashng wth soap can reduce ths

fgure by up to 44% In Indonesa we havedeveloped a new partnershp wth USAIDand the Maternal and hld HealthIntegrated Program to reach new mothersand brth attendants wth hygene educaton

REACHING NEWCOMMUNITIESA LOWERCOST MODEL

FOR OUR SCHOOLSPROGRAMMES

s run at scaleWe found that handwashngwth soap at key occasons ncreasedsgnfcantly after the schools hygenepromoton programmeSoap usencreased from 53% to 75% Ths ncreasewas sustaned at the same level more thansx months after the programme ended

To be ndependently assured by Pwn 2013, see page 52

Reachng more for less


17/56

PRORESS ON THE PLAN

Unlever Sustanable Lvng Plan Progress Report 2012 Health and Hygene

Puret offers a range of n-home water purfers thatprovde water as safe as boled wthout the need forelectrcty or a pressursed water supply by removngharmful vruses, bactera and parastes

Puret offers envronmental benefts too our detaledlfecycle analyss shows that ts total carbon footprnt sat least 80% lower than boled or bottled water

SAFE DRINKING WATER

15

Encouraging people to adopt new behavioursis essential if we are to achieve our goals.

Underpinning our approach is our model of

behaviour change, Unilevers Five Levers forChange a set of principles which, if appliedconsistently, increases the likelihood ofcreating a lasting impact.

We first used this model to develop ourbehaviour change programmes withLifebuoy soap and our oral care brands.We have learned a great deal through ourhealth and hygiene campaigns and we arenow applying the methodology to improveour performance in other areas, for examplewe are using it to understand how wecan motivate consumers to reduce theirsalt intake.

OUR FIVE LEVERS FORCHANGE MODEL More than 2,000 children die every dayfrom diarrhoea, which is linked, among

other things, to a lack of clean toilets forover 2 billion people worldwide.

In November 2012, Domestos and our partner,

the World Toilet Organization, opened theworlds first Domestos toilet academiesin Vietnam, the first stage in a globalprogramme to train local entrepreneursto set up hygienic toilet businesses.

The academies leverage the SaniShopbusiness model developed and proven bythe World Toilet Organization in Cambodia.Training local entrepreneurs to supplylatrines, toilet cleaner and sanitationeducation is an innovative market-basedmodel which creates demand for improvedsanitation within local communities andprovides jobs.

DOMESTOS TACKLESSANITATION CRISIS

OUR TARETS We am to make safe drnkng water

avalable and affordable to 500 mllonpeople through our Puret n-homewater purfer by 2020

OUR PERFORMANE

45 mllon people have ganed accessto safe drnkng water from Puretsnce ts launch n 2005, of whom10 mllon were reached n 2012

OUR PERSPETIVEThe lack of safe drnkng water s a maorpublc health ssue, partcularly ndevelopng countres where around 80% ofdseases are water borneAn ndependent

study has shown that Puret can reducethe ncdence of darrhoeal dsease by upto 50%*

Durng 2012 Puret focused on dstrbutonexpanson n exstng markets Inda,Bangladesh, Indonesa, Mexco and Brazl and also launched n new markets suchas SrLanka and Ngera

Expanson n Inda was the bggestcontrbutor to performance n 2012, whereconsumers have been attracted to ourwder product range

The most affordable model costs 20(1,400 rupees) n IndaWe are workng wth

a range of mcrofnance and NO partnersto mprove the affordablty of the purferfor those for whom the prce remansa barrer to purchase

Our ambton to reach 500 mllon peopleremans demandng To acheve our targetwe plan to expand nto more new marketsn Afrca, whle contnung to grow nexstng markets


* Randomsed tral by the Natonal Insttute of Epdemology,based on 430 chldren nhenna, Inda, 2005-06

PROVIDE SAFEDRINKIN WATER




Poor oral health s a wdespread problemn Indonesa Ths leads to tooth decay and,n some cases, more serous llnessesIn 2009 Unlever collaborated wth PDI(the Indonesan Dental Assocaton) to

ntate the Brush Day and Nght campagn

The campagns consstent messages acrossmultple channels are helpng people tochange ther habts In 2012, Indonesansused 7% more toothpaste than n 2011,ndcatng a gradual ncrease n toothbrushng

Brand equty has also strengthenedBy offerng parents effectve productsand by helpng them to pass on the habt ofbrushng day and nght, we have ncreasedthe proporton of people who rate Pepsodentas the most effectve toothpaste

BUILDING BRANDS

OUR TARETSWth our Dove brand we are helpng mllonsof young people to mprove ther self-esteemthrough educatonal programmes

By 2015 we am to have helped 15 mllonyoung people

OUR PERFORMANE

Over 11 mllon young people havereceved our help snce 2005 Over2 mllon partcpated n the programmen 16 countres n 2012

OUR PERSPETIVEDove s commtted to helpng womenlook and feel ther best It has made goodprogress n helpng to rase the self-esteemof mllons of young people worldwde ands on track to meet ts target

In 2012 Dove redesgned ts self-esteemprogramme to captalse better on medaand educatonal nnovaton and reach moregrls wth a greater mpact whle reducngthe costs for each nterventon

The redesgned programme now calledthe Dove Self-Esteem Proect s launchngn early 2013We have worked wth experts tomake the programme content more rgorousand engagngDevelopng global partnershpsas well as creatng local communtes ofadvocates among mothers and teachers wll

help Dove reach more peopleIt s dffcult to measure changes n atttudeWe are partnerng wth academc thoughtleaders n the US and the UK to conductstudes to track the longer-term mpactof our programme

IMPROVE SELFESTEEM

OUR TARETS We wll use our toothpaste and

toothbrush brands and oral healthmprovement programmes to encourage

chldren and ther parents to brushday and nght We am to change thebehavour of 50 mllon people by 2020

OUR PERFORMANE

49 mllon people reached snce 2010,of whom 47 mllon were reached n 2012

OUR PERSPETIVEOur Brush Day and Nght campagns haveproved very effectve and we are set toacheve our target early Many addtonalcountres ran the campagn after observngthe strong lnk between the campagnssocal mpact and busness growth, helpngus to reach more people than antcpated

The campagns, whch focus on brushngtwce a day wth fluorde toothpaste,were extended to new countres such aste dIvore n 2012ountres wth exstngprogrammes such as Indonesa and Francesaw an mprovement n brushng frequencyand an ncrease n market share and salesgrowth followng the campagn In Francethe oral care market has grown by nearly5% over 2009-12 and sales of our Sgnalbrand ncreased by nearly 7% over 2009-12,and by 4% n 2012 alone

We contnue to work n a global partnershpwth the FDI World Dental FederatonIn 2012, 28 local oral health promotonproects wth natonal dental assocatonsfocused on communcatng the mportanceof twce-daly brushng wth fluordetoothpaste through dental practces,schools, hosptals and communtes across25 countresWe are evaluatng the mpacton over 28,000 people nvolved n theseprogrammes around the world

A new campagn n 2013 s desgned toaddress parents as the prmary target toencourage behavour change

IMPROVE ORAL HEALTH

16

Our leadng famly health toothpaste brands,Sgnal and Pepsodent, are growng stronglythanks to our Brush Day and Nght oral healthcampagnsOver 2008-12, Sgnal grew by 22%

worldwde In Indonesa, one of our bggestmarkets, sales of Pepsodent rose by nearly16% n 2012 compared to the prevous year

BRUSH DAY AND NIGHTPROMOTES GROWTH

HEALTH AND HYIENE1


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PRORESS ON THE PLAN

Unlever Sustanable Lvng Plan Progress Report 2012 Health and Hygene

Part of the success of our Dove Self-EsteemProect has been an ncreased wllngnessamong consumers to spread the brandsaffrmatve message and to purchase

Doves productsResearch by Mllward Brown, a researchcompany, shows that among women n theUS who are aware of the Dove Self-EsteemProect, 62% would recommend the Dovebrand to others 16% more than amongthose who are not aware of the proect

Among women nanada who are awareof the proect, 82% would be more lkely topurchase Dove These results motvate usto contnue to nvest n the Proect

DOVE BOOSTSSELFESTEEM ANDBUSINESS SUCCESS

OUR TARETS We am for zero workplace nures

By 2020 we wll reduce the TotalRecordable Frequency Rate (TRFR)

for accdents n our factores and offcesby 50% versus 2008

OUR PERFORMANE

45% reducton n TRFR at end 2012compared to 2008, down from 21 to 116accdents per 1 mllon hours worked

OUR PERSPETIVEWe are among the leaders n our ndustryon safety Therefore the target to halve ournury rate s a stretchng one and becomesprogressvely harder as we get closer toour am

We measure our progress usng an accdentrate (TRFR) whch counts all workplacenures except those requrng only smplefrst ad treatmentWth the excepton of 2001,we have acheved contnuous mprovementn our health and safety record snce 1996In 2012 we contnued ths progress, reducngTRFR by 9% compared to 2011, from 127 to116 per 1 mllon hours worked

However, reducng road traffc accdentsremans a prorty for protectng our peopleMuch of our busness growth comes fromdevelopng markets where our sales peopleare at ncreased rsk because the local road

nfrastructure can be poorWe have been workng wthranfeldUnversty n the UK and other partners todevelop a holstc approach that tacklesnternal rsks as well as collaboratng wthothers to address external rsks, such aslocal road safety blackspots

REDUE WORKPLAEINJURIES AND AIDENTS FUTURE CHALLENGES

Achevng our targets to reach suchsgnfcant numbers of people wthhygene messages and safe drnkngwater was always gong to be challengngWhle we have made progress, we

recognse there s a consderable gapto fll to acheve our goal

Ths s partcularly true for Lfebuoywhere we need to reach a further881 mllon by 2015We reman confdentof our plans to scale up handwashngprogrammes at a faster rate over thenext few yearsLfebuoy s focusng on thefollowng prorty areas to meet ts target

ncreasng the mpact of rural outreachthrough partnershps and mult-brandprogrammes

creatng larger partnershps wth aponeerng approach to co-nvestment

rollng out a cost-effectve and scalableprogramme to new countres

learnng from evaluaton studes todentfy and roll out best practce

contnung to rase the profle ofhygene ssues wth governments,key opnon formers and wdercommuntes

To help more than a bllon people mprovether hygene habts, we also recognse theneed to develop a more holstc approach tothe nter-relatedssues of water, santatonand hygeneWe are lookng at how wecan promote affordable tolet provsonand good tolet hygene for mllons whlegrowng busness for our Domestos brandWe are workng wth partners such asUNIEF and the World Tolet Organzatonto develop approprate models to createand fulfl demand for tolets

17


Dove s our largest Personal are brand, avalable nover 70 countres and wth an annual turnover of over3 bllon It contnues to grow strongly, experencngts thrd consecutve year of double-dgt growth n 2012

DOVE: OUR LEADINGPERSONAL CARE BRAND


See our webste for more


20/56Unlever Sustanable Lvng Plan Progress Report 2012Nutrton

NUTRITIONHELPINPEOPLEMAKE HEALTHY

HOIES

2

18


21/56



22/56Unlever Sustanable Lvng Plan Progress Report 2012Nutrton

OUR TARETSPror to 2010 we had already sgnfcantlyreduced salt levels n our productsOur goal s to reduce the level further to

help consumers meet the recommendedlevel of 5 g of salt per day based onglobally recognsed detary gudelnes

Our frst mlestone was to reduce saltlevels to an nterm target of 6 g perday by the end of 2010 Ths requredreductons of up to 25% Our ambtons to reduce by a further 15-20% onaverage to meet the target of 5 g ofsalt per day between 2015 and 2020

OUR PERFORMANE

80%of our Foods and Refreshmentportfolo by volume met salt levelsequvalent to 5 g per day by endSeptember 2012 for our Foodsportfolo alone, more than 50%reached 5 g per day*

OUR PERSPETIVESalt consumpton n many countres remansmuch hgher than the recommended dalyamountAchevng our target wll requrea sgnfcant shft n consumer behavourand dfferent stakeholders to play ther part

We are usng the Unlever Fve Levers forhange model to help us dentfy whereto actWe beleve we have most mpact

through creatng great-tastng productsTypcally, to reduce the level of salt,we completely redesgn the recpe so ttastes better as well as beng healther

Our nutrton measurements cover ourFoods and Refreshment products to gvea rounded pcture of our portfoloHowever,the products n our Refreshment categoryof ce cream and beverages make verysmall contrbutons to salt ntakesWe dentfy the proporton of our Foodsportfolo that reached 5 g per daybecause ths s the most relevant areafor salt reducton

20

In 2012 we reformulated our extensve range ofsalad dressngs n Europe Knorr, Hellmanns,alv, Amora and Lgeresa to salt levels thatmeet our strngent 5 g per day targetUp to 35%

reducton n salt has been acheved whle delvernggreat taste These products wll be on the marketfrom early 2013

SALAD DRESSINGSWITH LESS SALT

Foods that need salt for preservaton or

preparaton can contr

bute s

gn

fcantlyto salt ntakesBut motvatng people to

choose products wth less salt s dffcult

Unlever ntated consumer surveys on saltreducton among 6,000 consumers n sevencountres The results nformed a seres ofont workshops wth the Internatonal Unonof Nutrtonal Scences, brngng togetherscentsts, polcy-makers, food ndustresand consumer groups to generate compellngcommuncaton on salt reducton forconsumers

Our surveys revealed that 80% of peopledo not see the need to reduce salt ntake

Results from the workshops confrmedthat we need to put taste at the heart ofour approach to salt reducton as peopleare worred that lower-salt foods wll nottaste as good

UNLOCKING THEREAL TASTE WITHREDUCEDSALTPRODUCTS

REDUE SALT LEVELS

OUR TARETSWe are commtted to mprovng the fatcomposton of our products by reducngsaturated fat as much as possble and

ncreasng levels of essental fats

By 2012 our leadng spreads wllcontan less than 33% saturated fatas a proporton of total fat

A daly porton wll provde at least15% of the essental fatty acdsrecommended by nternatonaldetary gudelnes

OUR PERFORMANE

9292% of our leadng spreads by volumecontaned less than 33% saturatedfat as a proporton of total fat by endSeptember 2012

9292% of our leadng spreads byvolume provded at least 15% of theessental fatty acds recommendedby nternatonal gudelnes by endSeptember 2012

OUR PERSPETIVEThe bggest contrbuton we can maketo reducng saturated fat ntake s toencourage people to swtch from butterto margarneWe have been able toreduce saturated fat levels n the vast

maorty of our leadng spreads to levelsof about half the saturated fat presentn butter

Our leadng spreads are those we sell ntubs under brands such as Flora, Becel,Rama and Blue Band, comprsng aroundtwo-thrds of our soft margarne by volume

The small proporton of our leadngbrands that do not meet our target aresold n tropcal countresA hghersaturated fat level s requred to make theproduct stable at ambent temperaturesWe are nvestgatng cost-effectvetechnologes that wll allow us to reduce

saturated fat by approxmately a thrd nthese countres takng the saturatedfat level to 38% whle stll keepngproducts affordable

REDUE SATURATED FAT

* Ths number s not comparable to the 61% reported for2011 measured by product (stock keepng unt)

NUTRITION2


23/56

PRORESS ON THE PLAN

Unlever Sustanable Lvng Plan Progress Report 2012 Nutrton

OUR TARETS By 2012 we wll have removed from all

our products any trans fat orgnatngfrom partally hydrogenated vegetable ol

OUR PERFORMANE

By September 2012, 100% of our portfoloby volume dd not contan trans fatsorgnatng from partally hydrogenatedvegetable ol

OUR PERSPETIVETo ensure we mantan our performanceaganst ths target, we have made the absenceof trans fats from partally hydrogenatedvegetable ol a standard reportng requrementfor all our supplers

REMOVE TRANS FAT

21

Steva, a sweetener derved from natural sources,s meetng consumer demand for ngredents fromnatural sources whle also delverng a reducton nsugarWhle reducng sugar, we also mproved the

taste of many of our Lpton ready-to-drnk teas

SWEETNESS WITHOUTCALORIES

* Nlsson K et al Internatonal Journal of LfeycleAssessment 201015916-26

OUR TARETS Pror to 2010 we had already reduced

sugar levels n our ready-to-drnk teasBy 2020 we wll remove an addtonal 25%

OUR PERFORMANE

4% reducton n sugar by endSeptember 2012

OUR PERSPETIVEIn 2012 we ntroduced several Lptonready-to-drnk tea products wth reducedsugar levels, partcularly n Europe andNorth Amerca

Most of these use Steva (stevol glycosdes) a sweetener from natural sources thatprovdes sweetness wthout calores

Addtonally, Steva has a lower carbonfootprnt than sugar

REDUE SUAR

After the launch n 2011, we are contnungto roll out our new recpe Flora/Becelmargarnes, whch are now avalable nmore than ten countres As well as benglower n calores, research has shownconsumers fnd them taster

Usng technologcal nnovaton, the bggestof ts knd for 60 years, we have been ableto reduce saturated fats by around 25%and calores by 20% It has up to 80% lesssaturated fat than butter Margarne already

has a quarter of the carbon footprnt of butterand uses around half the land* Our newrecpes wll reduce these envronmentalmpacts even further

UP TO 80% LESS

SATURATED FATTHAN BUTTER

We contnue to mprove the fat compostonof our products by ncreasng the level ofessental fatsFor practcal reasons,we generally ncrease essental fats at thesame tme as we reduce saturated fat levels,so the two targets are closely nterlnked



24/56

Unlever s the worlds largest ce cream company,wth brands on sale n over 40 countres Our popularMax and Paddle Pop ce creams contnue to do well,achevng underlyng sales growth of nearly 20% n 2012,and wll be usng our new Specally for Kds logo

By the end of 2012, 81% of our chldrens ce creamscontaned 110 klocalores or fewer per porton

STRONG GROWTHNUTRITION2

OUR TARETS By 2014 100% of our chldrens ce

creams wll contan 110 klocalores orfewer per porton 60% wll meet ths

level by 2012

OUR PERFORMANE

81% of our chldrens ce creamscontaned 110 klocalores or fewer perporton by end September 2012, up from73% at end 2011

OUR PERSPETIVEWe contnue to nvest sgnfcantly n thsarea and are on track to meet our 2014target In partcular, we are workng on newtechnologes that wll allow us to reducecalores by lowerng fat and sugarAs partof our Partner to Wn strategc supplerntatve, we have a long-term partnershpwth Barryallebaut, our suppler of cocoaand chocolate products, to develop cocoabased coatngs wth reduced saturated fat

In 2013 we started to ntroduce a Specallyfor Kds logo on ce creams that meet ourstrct nutrton crtera and stll appeal tochldren as fun treats through a combnatonof taste, texture, shapes and coloursThe logo helps parents to dentfy ce creamsthat chldren can enoy as part of a balanceddet and actve lfestyle To promote actvelfestyles we have partnered wth a leadngchld development psychologst to create anadventurous play gude wth magnatveand actve games

REDUEALORIES

Calories

834

42%

Calories

626

31%

OUR TARETS By 2020 we am to motvate 100 mllon

people to take the Heart Age test(Target revsed 2013)

Our goal s to motvate people to adopthealther dets and lfestyles, as thscan reduce elevated heart age

OUR PERFORMANE

In 2012 weoned forces wth Mcrosoftto launch Heart Age as an app

OUR PERSPETIVEIn 2009 Unlever and the World HeartFederaton launched Heart Age, a smpleonlne tool to rase awareness ofcardovascular dsease The tool provedan excellent mechansm for makng

heart health personally relevantUntl 2011 our Flora/Becel spread brandsprovded the foundaton for rasngawareness of Heart Age but recognsed that,by themselves, they could not drve enoughpeople to the tool In our 2011 ProgressReport we stated that these brands would nolonger be the sole sponsors of the Heart Agetool, and that Unlever would look to workwth a broader set of external partners wtha common heart health goal to maxmse thetools potental

Durng 2012, Unleveroned forceswth Mcrosoft to launch the Heart Age

applcaton on the new Wndows 8 platformThs gves us the potental to reach asgnfcant number of people as the platformgrows, to co-promote the tool and to exploreopportuntes through Mcrosofts emergnghealth platform

Followng the launch n December, we arefurther expandng the reach of Heart Ageva a wde consortum of partners nterestedn heart health, n addton to contnuedsupport from our Flora/Becel proactvbrands and Mcrosoft

IMPROVE HEART HEALTH

More atwwwunleverfoodsolutonsus

People enoy healthy eatng at homeOur research shows they would lke

healther optons when they eat out tooOur professonal caterng busness, UnleverFood Solutons, s workng wth restaurantoperators around the world to make thermenus more nutrtous wth the help ofour products

Workng wth food experts and ndustry-specfc bodes, our Seductve Nutrtonprogramme provdes recpe deas andadvce for creatng nutrtous and delcousmeals, especally for top-sellng dshesUnder the programme n the US, over 5,000operators pledged to remove more than 450mllon calores from ther menus n 2012

The campagn s already actve n 17 countresworldwde It wll enable restaurateurs to tapnto consumer demand and ncrease revenues,whle also contrbutng to publc health

SEDUCTIVE NUTRITION

See for yourself how exchangng one or twongredents for healther food selectons, oradustng porton szes, can reduce total caloresn one of your top dshes

Use the alore alculator as Inspraton toReduce alores

Unlever Sustanable Lvng Plan Progress Report 2012Nutrton22

alore alculator


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PRORESS ON THE PLAN

FUTURE CHALLENGESReducng salt contnues to be one of thebggest nutrtonal challenges facng ourndustryPeople tend to prefer the tasteof tradtonally salted products If the foods perceved as not salty enough, people

wll often compensate by addng salt atthe table

We are pursung three approaches

explorng technologes that provdean alternatve to sodum salts

reformulatng recpes wth otherngredents to retan flavour whlereducng salt

changng consumer preference forsalt by gradually reducng salt levelsover tme

However, the salt challenge cannot besolved by one company actng alone

Ultmately, t requres collaboratonbetween ndustry, governments, publchealth organsatons and the scentfccommunty

In developng and emergng countresmllons of people have dets lackng nessental mcronutrentsOur challengeremans reachng more people worldwdewth fortfed products that are affordableand commercally vable

Our approach s to ntegrate fortfcatonnto our core product portfoloAbout athrd of Unlever sales volume (excludngour ready-to-drnk tea busness) contansat least 15% of the recommended dalyamount (RDA) of an essental vtamn ormneralFor example, our spreads arefortfed wth vtamns A and D, and alsocontan vtamn E naturally present n thevegetable ols

We have ncreasng evdence that our Lamplghter health programme s a sound nvestmentfor our employees and for our busness Independent analyss shows a return on nvestmentof482 for every 1 nvested n the programme n Brazl, based on combned healthcareand productvty savngs over 2008-11

In Sngapore the return on nvestment was31 over 2009-12 and there has been a reductonn the health rsk factors assocated wth hgher healthcare costs, such as poor detand ftness

INVESTING IN EMPLOYEE HEALTH

OUR TARETSOur Lamplghter employee programmeams to mprove the nutrton, ftness andmental reslence of employeesBy 2010

t had already been mplemented n 30countres, reachng 35,000 people

In 2011 we amed to extend the reach ofLamplghter to a further eght countresWe wll mplement Lamplghter n anaddtonal 30 countres between 2012and 2015Our longer-term goal s toextend t to all the countres wherewe operate

OUR PERFORMANE

Lamplghter has reached over 50,000employees across more than 50 countresIn 2012 t was rolled out to 12 countres

OUR PERSPETIVELamplghter s key to addressng the topthree health rsks we have dentfed acrossour busnessmental well-beng lfestylefactors (eg exercse, nutrton, smokng andobesty whch can lead to condtons suchas hypertenson, dabetes and heart dsease)and ergonomc factors (eg repettvestran nury)

In 2012 we mplemented a global No SmokngStandard for employees whle at workBy the end of the year, complance wth thenew standard reached 72% we am to reach

100% n 2013

Lamplghter helps us to analyse ouremployees health rsks and to put n placesteps to control them For example, n Indathe programme has reduced the number ofemployees categorsed as hgh rsk (due toobesty or hypertenson for example) from8% to under 4% over 2007-12

It s provng a valuable tool for safeguardngemployees health, mprovng productvtyand reducng costs

IMPROVE EMPLOYEEHEALTH AND NUTRITION

OUR TARETSOur am s to provde clear, smple labellngon our products to help consumers makechoces for a nutrtonally balanced det

All our products n Europe and NorthAmerca provde full nutrtonal nformaton

By 2015 ths wll be extended to coverall our products globally We wll ncludeenergy per porton on the front of packplus eght key nutrents and %udelneDaly Amounts (DA) for fve nutrents onthe back of pack*

OUR PERFORMANE

We have acheved full nutrtonal labellngn Europe, North Amerca, Latn Amerca,Australa and New Zealandn 2012 wemade progress n Afrca, the Mddle East

and Asa

OUR PERSPETIVETo help us meet our target, at the endof 2012 we put n place a new system tomprove our montorng and trackng ofths nformaton

Our standards n ths area often go beyondcountry regulatons, provdng morenutrtonal nformaton on labels than srequred locally Examples nclude Kenya,the Phlppnes, Turkey, Russa andsome countres n North Afrca and theMddle East

PROVIDE HEALTHY EATININFORMATION

* Where applcable and legally allowed and n accordance wthlocal or regonal ndustry agreements

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REENHOUSE ASESHELPIN TO TAKLELIMATEHANE

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28/56Unlever Sustanable Lvng Plan Progress Report 2012reenhouseases

REENHOUSEASES3

OUR TARETS By 2015 we am to reach 200 mllon

consumers wth products and toolsthat wll help them to reduce thergreenhouse gas emssons whlewashng and showerng Our plan sto reach 400 mllon people by 2020

OUR PERFORMANE

Whle we have made some lmtedprogress, overall ths target remanschallengng

OUR PERSPETIVEThe greatest greenhouse gas mpact

of our shampoos, shower gels and soapsoccurs when they are used by consumerswth heated water Durng 2012 wecontnued to explore a range of approachesto help us understand consumerbehavour to nfluence ther showerngand bathng habts These ncludedthe roll-out of dry shampoo undermany brands such as Dove, Suave andTRESemm a promotonal offer of afree aerator wth Radox shower gel nSouth Afrca and crowd sourcng freshdeas on how to encourage consumersto reduce heated water n the shower

We estmate that compared to washnghar wth heated water, usng a dryshampoo reduces O2 by around 90%The dry shampoo market s stll qute newand the number of users s relatvely lowhowever quanttatve consumer paneldata from the US shows that for thosewho bought a dry shampoo, t replaceda wet wash n 60% of uses Ths suggestsdry shampoo s a potental way to reduceheated water n the shower by offernga motvatng beauty beneft whch leadsto a sustanable behavour

REDUE REENHOUSEAS EMISSIONS FROMSKIN LEANSIN ANDHAIR WASHIN

OUR FOOTPRINTThe product categores whch make thelargest contrbuton to our greenhouse gasfootprnt are those where the consumerrequres heated water Soap, shower geland shampoo and condtoner productsalone account for more than half ourtotal footprnt

OURREENHOUSEAS FOOTPRINT(%ONTRIBUTION BY ATEORY 201112)

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OUR TARETS

Reduce the greenhouse gas mpact ofthe laundry process by

oncentratng our lquds andcompactng our powders

Reformulatng our products to reducegreenhouse gas emssons by 15%by 2012

Encouragng our consumers to washat lower temperatures and at thecorrect dosage n 70% of machnewashes by 2020

OUR PERFORMANE

14% of our portfolo n our top 14countres was made up of concentratedand compacted products at end 2012,compared to our baselne of 4%n 2008

Over 95% (by volume) of our laundrypowders n our top 14 countres havebeen reformulated, achevng areducton of 15% n greenhousegas emssons

We communcate the benefts oflow-temperature washng on ourpacks and onlne and are encouragng

our consumers to use the rght dosage

OUR PERSPETIVELqud laundry detergents are popularwth consumers and n 2012 we were themarket leader n emergng markets, wthmarket share of over 25%The maorty ofour lqud detergents are now sold nconcentrated form

oncentratng our laundry products helpsto reduce greenhouse gas emssons,and s good for our busness greatperformance combned wth lower materaland transport costs

However, t can take tme for consumersto swtch to concentrated or compactedproducts and use the rght dosageSomeconsumers contnue to use larger dosesthan needed, whle others under-dose

REDUE REENHOUSEAS EMISSIONS FROMWASHINLOTHES

Our dry shampoos allow women to refresh har between washes,savng tme and extendng ther styleThey may also encouragepeople to wash ther har wth hot water less often

We have now rolled out our dry shampoos to ten countres undernne brands, ncludng TRESemm, Suave, Tand VO5Sales

grew by over 19% n 2012We are the market leader n the US wth75% share and n 2012 launched the product under the Dove brand

DRY SHAMPOO SALES GROW 19%

Soap and shower gelLaundry detergents and fabrc condtonersShampoo and condtonersSoups, sauces and stock cubesTea and beveragesHousehold cleanersIce creamMargarne and spreadsMayonnase, mustards and dressngsDeodorantsToothpasteSkn care

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PRORESS ON THE PLAN

Unlever Sustanable Lvng Plan Progress Report 2012 reenhouse ases

OUR TARETS By 2020 O2 emssons from energy

from our factores wll be at or below2008 levels despte sgnfcantly

hgher volumes

Ths represents a reducton of around40% per tonne of producton

Versus a 1995 baselne, ths representsa 63% reducton per tonne of productonand a 43% absolute reducton

We wll more than double our useof renewable energy to 40% of ourtotal energy requrement by 2020We recognse that ths s only a frststep towards a long-term goal of 100%renewable energy

All newly bult factores wll am to haveless than half the mpact of those n our2008 baselne

OUR PERFORMANE

838,000 fewer tonnes of O2 fromenergy produced n 2012 than n 2008(a reducton of 315% per tonne ofproducton)

ompared to 1995, ths representsa 60% reducton n absolute terms

At end 2012 renewable energycontrbuted 263% of our total energy

use compared to 158% n 2008

Seven new factores were specfed n2012 for openng n 2013 Ther eco-effcent desgn ams for emssons tobe 50% less than our 2008 baselne

OUR PERSPETIVEWe contnued to make progress n reducngO2n 2012, addng to savngs snce our 2008baselne, whch are now equvalent to takngaround 200,000 cars off the roadWe havealso made good progress n ncreasng theenergy from renewable sources at ourmanufacturng stesAll our stes n the

US now purchase electrcty from certfedrenewable sources, as well as those nEurope andanada

However, n some cases the cost ofrenewable energy s hgh compared toenergy from non-renewable fuelsWe contnue to evaluate cost-effectveand scalable renewable technologes thatwll contrbute to our global target

Our new factores now have sustanabltybult nto ther core desgns In addton

to eco-effcent desgn of productonprocesses, we are usng certfcatonsystems such as LEED and BREEAMenvronmental assessment methods andratng systems for buldngs Our sevennew factores n 2013 wll acheve a ratngof LEED Slver or above

REDUEREENHOUSEAS EMISSIONSFROM OUR MANUFATURIN

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By desgnng our products dfferently,we can cut out these varatonsOne examples concentrated laundry capsules, whch weare promotng n Europe as they ensureconsumers use an accurate dose

We have worked hard to reformulate ourproducts by replacng ngredents thathave a hgh greenhouse gas mpact wththose wth lower mpacts These can

reduce greenhouse gas mpact by up toa thrd

We have had some success wth helpngpeople to adopt dfferent habts We areworkng wth the Internatonal Assocatonfor Soaps, Detergents and MantenanceProducts (AISE) to encourage people towash at lower temperatures

In 2012 we commssoned a new bomassboler at our Pouso Alegre ste n Brazlwhch produces our AdeS and Knorr

products Ths burns recycled wood ratherthan ol and wll reduce emssons byaround 80%

We are now usng bo-energy at 30 of our252 manufacturng stes, provdng around7% of the energy we use Ths reduces ourannual emssons from fossl fuels by over150,000 tonnes of O2 We are plannng tonstall addtonal bolers at stes n LatnAmerca, Afrca and Asa

REDUCING GHGTHROUGH BIOMASS

OVER300 MILLION COST AVOIDEDSnce 2008, our manufacturng eco-effcency programme has used a number of cost-effectve nvestments to reduce our energy, water and waste Intatves range fromencouragng people to adopt small actons that make a bg dfference cumulatvely, such asensurng lghts are turned off, to larger nvestments such as bomass bolers We havereduced our envronmental footprnt whle avodng cumulatve supply chan costs of over300 mllon

Water 17 mllon Energy 99 mllon

Waste dsposal 10 mllon Materals 186 mllon

To be ndependently assured by Pwn 2013, see page 52 To be ndependently assured by Pwn 2013, see page 52



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OUR TARETSAs the worlds largest producer of cecream, we wll accelerate our roll-out offreezer cabnets that use clmate-frendly

(hydrocarbon) refrgerantsWhen welaunched our Plan n November 2010 wehad already purchased 450,000 unts wththe new refrgerant

We wll purchase a further 850,000unts by 2015

OUR PERFORMANE

Around 332,000 clmate-frendlyfreezers purchased n 2012, takng usto over 800,000 of our target of 850,000

OUR PERSPETIVEOur clmate-frendly hydrocarbon (H)freezers have a neglgble global warmngpotental compared to those that contanhydrofluorocarbons (HFs) They are alsoaround 10% more energy effcent

In addton to buyng freezers wth clmate-frendly refrgerants, we have beenponeerng new models usng state-of-the-art components to ncrease therenergy effcency

Over 2010-12 we purchased around 290,000of these more energy-effcent freezers

We estmate that the energy effcency of thefreezers we bought n 2012 avoded around

40,000 tonnes ofO2 emssons compared to2008 models

We are workng wth ndustry to promotethe move to more envronmentally frendlyfreezers We are drvng an ndustrycommtment to phase out HFs by 2015through our partcpaton n theonsumeroods Forum and as the char ofRefrgerants, Naturally

REDUEREENHOUSEAS EMISSIONSFROM REFRIERATION

As part of our UltraLogstk transport network,we are creatng regonal dstrbuton hubsThese wll mprove operatonal effcency

sgnfcantly and reduce total dstancetravelled by 175 mllon km n Europe alonefrom 2013 to 2015 (compared to 2010)These hubs are part-funded by the EUsprogramme for logstcs operators who arecommtted to the sustanable transport ofgoods across Europe

We wll have 12 hubs n Europe by 2014Each s responsble for ensurng that trucksare more fully loaded as they travel acrossEurope, whch wll reduceO2 emssonsby nearly 16,000 tonnes over 2010-14Makng our logstcs more effcent delversreal busness benefts ncludng reduced

costs, better busness plannng andmproved servce

TRANSPORT NETWORKSAVES CARBON ANDROAD MILES

OUR TARETS By 2020 O2 emssons from our global

logstcs network wll be at or below2010 levels despte sgnfcantly hgher

volumes Ths wll represent a 40%mprovement nO2 effcency

We wll acheve ths by reducng truckmleageusng lower emsson vehclesemployng alternatve transport such asral or shp and mprovng the energyeffcency of our warehouses

OUR PERFORMANE

10% mprovement n O2 effcency snce2010 7% mprovement nO2 effcencyand a 7% reducton n absolute terms n2012 compared to 2011*

OUR PERSPETIVETo get our products from our factores tothe market, we transport our goods over15 bllon km each year the equvalent oftravellng to the moon and back more than2,000 tmes

We are leveragng ths scale by creatngregonal dstrbuton hubs whch wllmprove operatonal effcency sgnfcantly(see rght)

To reach our 2020 target we need tocollaborate wth external partners as wedo not own the trucks, trans and shps thatwe useWe are makng sustanablty part of

our workng agreements wth nfrastructureprovders and operators

REDUEREENHOUSEASEMISSIONS FROM TRANSPORT

Our UltraLogstk control tower organsatonenables us to co-ordnate our transportactvtes effcentlyWe establshed a towern Poland n 2007 whch has saved more than

50 mllon n costs over 2008-12We nowhave towers n other regons and wll contnuewth more n 2013

ULTRALOGISTIKSAVES50 MILLION

REENHOUSEASES3

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PRORESS ON THE PLAN

FUTURE CHALLENGESOur greatest greenhouse gas mpactcomes from the heated water peopleneed when they take a shower wthour soaps, shower gels and shampoos especally n the USFndng ways to

reduce ths s crucal f we are to meetour goal to halve the greenhouse gasemssons of our products acrossthe lfecycle

We are fndng ths very dffcult and haveonly made lmted headwayWe havemade a start by understandng peoplesshowerng habts In 2011 we reportedon showerng research n the UKWe havefollowed up wth a smlar study n Australa(see page 32)

ven the barrers to change, we areexpermentng wth products lke dryshampoo, wth offers such as free shower

aerators from Radox shower gel whchcan save consumers up to450 a year and wth compettons to open sourcennovatve deas

A bg part of our footprnt today s n theUSBut as people n the fast-growngmarkets of Asa and Afrca start toacqure washng machnes and showersthe task becomes even more dffcultOur challenge wll be to ensure thatpeople contnue to wash ther clothesat low temperatures when they geta washng machne

We do not yet have vable solutons and

we wll contnue to seek nnovatonswhch wll help people reduce thermpactsBut large-scale change wll onlycome about f carbon has an economcprce and f governments put the rghtframeworks n place So we contnueto advocate ambtous publc polcy toaddress clmate change and to ncentvsethe transton to a low-carbon economy

OUR TARETS By 2020 we wll halve the energy (kWh)

purchased per occupant for the offcesn our top 21 countres versus 2010

OUR PERFORMANE

11% reducton n energy (kWh)purchased per occupant snce 2010

OUR PERSPETIVEIn 2012 we contnued to focus on makngmprovements to our IT systems to reduceenergy use n our offcesSnce 2011, all newpersonal computers are slver or gold EnergyStar rated and all servers n our data centresare gold Energy Star rated In our datacentres, we are consoldatng the numberof servers n the US, Asa, Afrca, the MddleEast and Turkeywe have decommssonedover 3,000 servers snce 2008We havestarted to roll out a Ppower managementplatform whch s expected to reduce Ppower consumpton by a mnmum of 20%In 2013, we wll ntroduce a personalconsumpton montor to show employeesther energy savngs and paper use

We are usng our buldngs more effcentlyby ncreasng the average occupancy denstyand optmsng lghtng, heatng and coolngsystemsWe have developed a toolkt whchhelps stes take small actons to reduce theenergy they use

REDUE ENERYONSUMPTION INOUR OFFIES

OUR TARETS We are nvestng n advanced vdeo

conferencng facltes to makecommuncaton easer whle reducng

travel for our employees By 2011ths network wll cover more than30 countres

OUR PERFORMANE

54 countres were covered by end 2011

OUR PERSPETIVEWe exceeded our 2011 target Throughthe use of telepresence n 26 countes weelmnated the need for around 14,500short-haul flghts and over 23,500 long-haul flghts Ths delvered clear busnessbenefts wth an estmated savng of almost40 mllon n costs and 113,500 tonnes nO2 emssonsWe contnue to promotemore flexble agle workng to lessen theburden of travel for our employees andreduce greenhouse gas emssons

REDUE EMPLOYEE TRAVEL

In Denmark our greener freezers have helped us wn new busness

We agreed new partnershps wth Fakta dscount stores n 2009 and OK Plus petrol chan n 2011,whch are part of the retalerOOPPror to ths Unlever had very lttle busness wth ethercompany A key factor was our ablty to demonstrate that our clmate-frendly freezers generate

lowerO2 emssons and use less energy, delverng better energy effcency for our customersWe have acheved excellent growth wth both each year snce then

CLIMATEFRIENDLY FREEZERS GROWSALES AND CUT COSTS

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WATERREDUINOURWATER USE WHERE

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PRORESS ON THE PLAN

Unlever Sustanable Lvng Plan Progress Report 2012 Water

OUR TARETS By 2020, water abstracton by our

global factory network wll be at orbelow 2008 levels, despte sgnfcantly

hgher volumes

Ths represents a reducton of around40% per tonne of producton

Versus a 1995 baselne, ths representsa 78% reducton per tonne of productonand a 65% absolute reducton We wllfocus n partcular on factores nwater-scarce locatons

All newly bult factores wll am toabstract less than half the water of thosen our 2008 baselne

OUR PERFORMANE

13 mllon fewer m3 of water abstractedn 2012 than n 2008 (a reducton of25% per tonne of producton)

ompared to 1995, ths representsa 73% reducton n absolute terms

Seven new factores were specfed n2012 for openng n 2013 Ther eco-effcent desgn ams to abstract 50%less water per tonne of producton thanthe 2008 baselne

OUR PERSPETIVEWe have made good progress n reducng

water abstracted by our manufacturng stessnce 2008 we have saved the equvalent ofaround 15 ltres of water for every person onthe planetWater use per tonne of productondecreased by 7% n 2012 compared to 2011

In 2012 we nvested n four effluent recyclngproects at stes n South Asa to reduceabstracton by over 60,000 m3 per year

Our Indan manufacturng stes provde manygood examples of how ranwater s usedfor factory utltes such as coolng towers,bolers, manufacturng processes (followngtreatment) and tolet flushng

However, the relatvely low cost of watermakesustfyng the costs of some waterreducton proects dffcultWe wll thereforefocus on reducng water use n stes we havedentfed as prorty water-scarce locatons

REDUE WATER USE IN OURMANUFATURIN PROESS

OUR TARETS We wll develop comprehensve plans

wth our supplers and partners toreduce the water used to grow our

crops n water-scarce countres

OUR PERFORMANE

In 2012 we refned our understandngof our rrgaton water footprnt anddentfed prorty crops and locatonsfor further work

OUR PERSPETIVEIn 2012, usng data from the Water FootprntNetwork, we completed a ground-breakngassessment of the amount of rrgaton waterused to produce our key agrcultural rawmaterals n all the water-scarce countreswe source from Ths ncluded a detaledassessment of our key agrcultural materals(around two-thrds of our volumes) andconsderaton of a further 30 materals

Our assessment s much more precse thanour prevous analyss whch we used to drawup our 2008 water footprnt dagram Ths slargely due to better water footprntestmates and more specfc nformaton onthe areas n whch our key crops are grown

Our footprnt s lower than we had prevouslyestmated We thought that the total waterused to produce our agrcultural ngredentswas about 50% of our value chan footprnt

We now know that t s about 15%, and thatabout 85% relates to water used by ourconsumers (see updated footprnt, page 31)

The assessment dentfed tomatoes andsugar cane as prorty crops from a waterperspectve We have already worked formany years on promotng drp rrgatonwth our tomato supplersWe wll nowstep up our actvty and contnue to workwth supplers to collect data for self-verfedcrops grown accordng to the UnleverSustanable Agrcultureode

REDUE WATER USEIN ARIULTURE FUTURE CHALLENGES

The largest part of our footprnt sassocated wth showerng, bathngand washng clothes,ust as ourgreenhouse gas footprnt s assocatedwth heatng that water for showers and

washng machnesIn those parts of the developng worldwhere water s scarce, women often haveto walk long dstances to collect water,or they have to become water managersn the home storng and ratonngscarce water carefully If we can developmore nnovatons lkeomfort One Rnse,whch reduce the water needed for dongthe laundry, these wll save people tmeas well as beng more convenent

Long-term lack of nvestment n waternfrastructure wll exacerbate the problemof water scarcty n many countres

We need to work n partnershp wthgovernments, NOs and consumersto address and manage water useeffectvelyWater prcng and watermeterng, alongsde consumer educaton,wll ultmately be necessary to drvesystemc change

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Investment n cost-effectve technologes nour factores along wth the treatment ofprocess effluents to enable water reuse andncreased montorng has avoded over17 mllon n cumulatve cost snce 2008

ECOEFFICIENCYAVOIDS17 MILLIONIN COSTS





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38/56Unlever Sustanable Lvng Plan Progress Report 2012Waste

WASTE

OUR TARETS By 2020 we wll reduce the weght

of packagng that we use by athrd through

- lghtweghtng materals

- optmsng structural andmateral desgn

- developng concentrated versonsof our products

- elmnatng unnecessary packagng

OUR PERFORMANE

An estmated 95% reducton n weghtper consumer use over 2011-12compared to 2010, acheved througha combnaton of lghtweghtng andmateral desgn optmsaton

OUR PERSPETIVEWe are makng good progress to reduceour packagngWe have tradtonallyfocused on reducng packagng materalsmply as a route to cuttng costs But ourfocus has changedWe are now focusngon developng nnovaton n lghter,stronger and better materals that havea lower envronmental mpact To help usdo ths we have establshed a Materalsapabltyroup who work together wthsupplers to develop new technologes

New technologes are crtcal to ensure

we have a contnuous programme forpackagng reductonsFor example,we have reduced the number of layersand the thckness of the sachet materalsused for our har products n South EastAsa, and we wll now roll ths out acrossInda, Pakstan and BangladeshOnce theroll-out s complete, we wll save around2,500 tonnes of materal

OUR FOOTPRINTOur analyss has hghlghted that our foodpackagng s one of the bggest contrbutorsto our waste footprnt But to acheve ourgoal we wll need to reduce waste acrossall product categores by reducng theweght of packagng and by helpng toncrease recyclng Tea bags form a

sgnfcant proporton of product leftovers

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Durng 2011 we launched a new bottle desgn n Indonesa andThaland for ourtra skn care brandThs resulted n a weghtreducton of 365 tonnes of materal In 2012, we ntroduced anew technology b-modal resn and we saved a further70 tonnes of materalThe same technology s now beng rolledout across many more of our skn care and har care brands

and wll brng further savngsn materal and cost

NEW TECHNOLOGY SAVES MONEY

The materal we use to wrap our ce creambrands, Twster, Paddle Pop and Fruttare smade of layersOur R&D experts, workngwth academcs and supplers, havedeveloped new materals whch reduce boththe number of layers and ther thckness

The results speak for themselves Thesebrands have reduced ther use of flowwrap from 19 specfcatons toust threeworldwde Ths change r

uslp progress report 2012

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