The Unilever Sustainable Living Plan guides all our actions. We are actively contributing to the global delivery of targets under the Plan. This publication details the progress we have made over the last year.


Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company. We have about 80 years of experience in understanding consumers in India. We have over 16,000 employees and 38 manufacturing locations. Eighteen of the 100 most trusted brands in India are HUL brands. Our people work to create a better future every day and make sustainable living commonplace. 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.

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Highlights 2012

CEO’s Message

Business Model

This report provides an overview of our work towards meeting the goals of our Unilever Sustainable Living Plan launched in 2010 with specific targets. We report the progress we have made on each of our three big goals: Health & Well-being, Environmental Impact and Enhancing Livelihoods. While we believe we are making good progress, we also know that more needs to be done. This report shares the results of our journey and details the steps we have taken so far. We believe that sustainability drives growth and is the only acceptable model of business. That is why we are putting sustainability at the heart of everything we do across our value chain.

Global Targets

Improving Health & Well-Being

10 16

Reducing Environmental Impact

Enhancing Livelihoods

000 in 15 by 22%. It is at the heart of our Compass strategy which sets out our ambitious vision and purpose.000 across India.  100% of palm oil products sourced in 2012 are backed by drinking water from Pureit globally by end of 2012. 30 became zero-discharge Handwashing programmes in 2012. Shaktimaans scaled up to more than 30. Our first priority is to our consumers – then customers. taking the total to 47 million people reached since 2010.  More than 45 million people gained access to safe sites by 2012. water use by 29% and waste by 77% compared to 2008*.  CO2 emissions per tonne of production in India reduced sustainability certificates. Hydrocarbon technology deployed in India till date.000 climate-friendly freezers with states across India. When we fulfil our responsibilities to them. (*per tonne of production in 2012 over 2008 baseline)  More than 30.HIGHLIGHTS 2012  Over 17 million people reached through Lifebuoy  Out of 38 HUL factories.  Number of Shakti entrepreneurs scaled up to 48. with brands and services that help people feel good. we believe that our shareholders will be rewarded. SUSTAINABLE LIVING COMMONPLACE We work to create a better future every day. The Unilever Sustainable Living Plan is our strategic response to the unprecedented challenges the world faces. look good and get more out of life.  HUL factories with 100% zero non-hazardous waste to landfill increased to 31. suppliers and communities. employees. OUR PURPOSE TO MAKE Unilever Sustainable Living Plan: India Progress Report 2012 | 01 .

We believe companies that develop sustainable models of growth will have a real competitive advantage in the years to come. reduce our environmental footprint and increase our positive social impact at the same time. We believe that this is the only way to grow and remain relevant to the society at large. It can be a driver of long-term success and simultaneously have a positive impact on the people and the planet. We need to work with more partners and convince many others if we have to make a difference and help bring the fruits of sustainable growth to society. The year saw us pushing harder as we scaled up and expanded our ongoing initiatives and programmes. we have to enlist the support of people to influence behaviour change at the consumer-end because only then can we make an impact across the value chain. where a large part of our footprint lies. We are taking multiple steps to achieve our targets. Our teams work with the conviction that this is the path we must take if we are to lead and grow in a world where the battle for resources can only escalate. It is two years since we launched the Unilever Sustainable Living Plan and set out on a bold and new path that would double our business. we can see that the Unilever Sustainable Living Plan has energised our people and unleashed the power of innovation. Two years into this journey. We continue to build viable business models and forge partnerships to cover a larger number of people. And above all else. This remains a big challenge.  Nitin Paranjpe We still face big challenges across the value chain. the deeper story lies in how we are embedding sustainability into the heart of our business. in urban and rural areas. In the last one year. we have brought to market innovations like the Magic water saver and Comfort 1 Rinse to help cut water usage. Our Pureit water purifiers continue to provide access to clean drinking water to more people across the country and thereby help prevent waterborne diseases. We continue to work on many more such solutions to drive change. by scaling up our health and hygiene behaviour change campaigns. consistent. We seek to be the leaders in this journey and to that end we will continue our work to realise the bold goals set out in the Sustainable Living Plan.CEO’s MESSAGE Dear friends. there is more work to be done. profitable and responsible. In short. cutting down CO2 emissions and waste. This report details the progress we have made so far. Beyond numbers. 02 . Our goal remains to deliver growth that is competitive. We reduced the environmental footprint of our manufacturing operations by significantly reducing water usage. We made good progress on sustainable sourcing of agricultural raw materials and in improving livelihoods. We must work to build sustainable solutions that cover more products. We also launched new initiatives to impact water usage by our consumers while using our products. These innovations increase our positive social impact while growing our business.

we are leveraging it – creating efficiencies by focusing on fewer. PROFITABLE VOLUME GROWTH B OU R RAN DS COST LEVERAGE + EFFICIENCY SUSTAINABLE LIVING INNOVATION + MARKETING INVESTMENT Unilever Sustainable Living Plan: India Progress Report 2012 | 03 . we create efficiencies and reduce costs. We are investing in brand equity. We will grow by winning shares and building markets everywhere. with a culture in which performance is aligned with values. which is to double the size of the business while reducing our environmental footprint and increasing our positive social impact. helping to improve margins while reducing risk. We are building capability and leadership among our people and attracting some of the best talent in the market place. New and improved products are the result of investment in R&D and. equitable growth is the only acceptable business model. sanitation is poor and food supplies are uncertain and expensive. strengthen our brand equity. SUSTAINABLE LIVING For us. This results in profitable volume growth. OUR OPERATIONS On any given day two billion consumers use our products globally and we want to reach many more by developing innovative products that address different consumer needs at different price points. These align directly with our vision. profitable growth by seeking to add value at every step in the value chain by enhancing product quality and customer service and rolling out innovations faster across all markets. It summarises how we derive profit from the application of our business model. operations and people. For us. sourcing and manufacturing opens up opportunities for innovation while improving the livelihoods of our suppliers. by reducing waste. lower environmental impact and positive social impact. INNOVATION + MARKETING INVESTMENT Lower costs and improved efficiency enable us to strengthen our business further.BUSINESS MODEL Our business model is designed to deliver sustainable growth. profitable growth can only be achieved with the right people working in an organisation that is fit to win. The outputs of the model are threefold: sustained growth. It improves our profitability and allows us to invest in the business. A key differentiator is the Unilever Sustainable Living Plan and the goal of sustainable living. more often. OUR BRANDS Strong brands and innovation are central to our ambition to double in size. Meanwhile. self-perpetuating the virtuous circle of growth. For example. looking at more sustainable ways of developing products. In a world where temperatures are rising. PROFITABLE VOLUME GROWTH Profitable volume growth is the basis of the virtuous circle of growth. sustainable. water is scarce. And we are seeking superior products which consumers will prefer. sustainability is integral to how we do business. Our business model has three key inputs: brands. OUR PEOPLE Sustainable. inspiring people to take small everyday actions that will add up to a big difference. We will lead for responsible growth. driving profitable growth. We are increasingly an agile and diverse business with people motivated by doing good while doing well. Where equity is strong. Business needs to be a regenerative force in the system that gives it life. Consistently strong volume growth builds brand equity as we reach more consumers. To do this we use our global scale to help deliver sustainable. reducing the average cost per unit. finding and strengthening the connections between consumers and the products they buy. bigger projects that enhance margins. Stronger brands and innovation are the key drivers behind it. we have both a duty and an opportunity to address these issues in the manner in which we do business. together with effective marketing. energy is expensive. The diagram below represents our virtuous circle of growth. COST LEVERAGE + EFFICIENCY Profitable volume growth allows us to optimise the utilisation of our infrastructure and spread fixed costs over a larger number of units produced.

we will help more than a billion people take action to improve their health and well-being. HEALTH AND HYGIENE By 2020.* * Throughout this report our environmental targets are expressed on a ‘per consumer use’ basis. we have incorporated these targets into the main body of the Plan. By 2020. + In seven water-scarce countries representing around half the world’s population.GLOBAL TARGETS IMPROVING HEALTH AND WELL-BEING By 2020. In 2012. based on globally recognised dietary guidelines. We have taken a lifecycle approach with a baseline of 2008. portion or serving of a product. we will double the proportion of our portfolio that meets the highest nutritional standards. This means a single use. we presented our people and workplace targets as a standalone set of targets. we will help more than a billion people to improve their hygiene habits and we will bring safe drinking water to 500 million people. This will help hundreds of millions of people to achieve a healthier diet. NUTRITION We will continually work to improve the taste and nutritional quality of all our products. Note: In our 2011 Progress Report. This will help reduce the incidence of life-threatening diseases like diarrhoea. 04 . GREENHOUSE GASES Halve the greenhouse gas impact of our products across the lifecycle by 2020.

REDUCING ENVIRONMENTAL IMPACT By 2020. our goal is to halve the environmental footprint of the making and use of our products as we grow our business. ENHANCING LIVELIHOODS By 2020.* SUSTAINABLE SOURCING By 2020. we will source 100% of our agricultural raw materials sustainably. Unilever Sustainable Living Plan: India Progress Report 2012 | 05 .000 small-scale distributors in our supply network. BETTER LIVELIHOODS By 2020. we will enhance the livelihoods of hundreds of thousands of people as we grow our business. WATER Halve the water associated with the consumer use of our + products by 2020.000 smallholder farmers and 75.* WASTE Halve the waste associated with the disposal of our products by 2020. we will engage with at least 500.

Alongside. saturated fats. As more people are covered. This helps improve lives and drive business growth. GLOBAL PERSPECTIVE We bring to market affordable and effective products that promote health. Increased demand builds business performance that enables us to reach out to more and more people. linking the Sustainable Living Plan to business performance. OUR APPROACH We work to sensitise communities to the linkages between health and hygiene. a pioneering initiative to reduce levels of salt. 06 .IMPROVING HEALTH & WELL-BEING GLOBAL GOAL By 2020. through our brands like Lifebuoy soap and Pureit in-home water purifier. In nutrition. hygiene and well-being and help us fight preventable diseases like diarrhoea that claim millions of lives. we use our market reach and consumer insight to deliver campaigns that promote healthy habits like handwashing with soap to create a lasting impact on everyday behaviour. we use the highest nutritional standards to benchmark our products and create great-tasting products that people will want to eat. On nutrition. trans fats and sugar across our entire product portfolio. the demand for health and hygiene products rises. This takes us closer to our goal of helping more than a billion people take action to improve their health and well-being. we will help more than a billion people take action to improve their health and well-being. we are working to improve the taste and nutritional quality of our products to offer healthier diets. This year marks ten years of our Nutrition Enhancement Programme.

Through our Lifebuoy handwashing programme. In urban India. the number of people who regularly wash their hands at the right times—such as before eating and after using the toilet—is worryingly low. 2005-06 Unilever Sustainable Living Plan: India Progress Report 2012 | 07 . in 2012 over 2. our Lifebuoy brand aims to change the hygiene behaviour of 1 billion consumers across Asia. a village in Central India with one of the highest incidence of diarrhoea. we have reached out to 47 million people. a not-forprofit programme that provides safe and clean drinking water to communities in need. The ‘Roti Reminder’ activation at the Kumbh mela in Allahabad in Uttar Pradesh was an innovative initiative taken up by Lifebuoy to promote handwashing habits. Lifebuoy has been running a direct school contact programmme for the last two years. much more needs to be done in the coming years. Over the past 10 years. without the need for electricity or running water. However. Nearly 2. Studies have shown that the simple behaviour of washing hands with soap is one of the most effective and low-cost ways to prevent these diseases. *Randomised trial by the NIE. More than 45 million people gained access to safe drinking water from Pureit globally by end of 2012. By the end of the first quarter of 2013. we reached out to three million people. A large part of this group comprises children. 2008. particularly in developing countries where around 80% of diseases are waterborne. In partnership with NGOs. The lack of safe drinking water is a major public health issue. In 2012. As part of this programme. While most households do have access to soap. The programme now aims to change the handwashing behaviour of Thesgora.5 million rotis were stamped and served during the Kumbh mela. based on 430 children in Chennai. We have partnered with UNICEF and the Government of Madhya Pradesh to run a rural school contact programme in Madhya Pradesh. PROVIDING SAFE DRINKING WATER Global Target: We aim to make safe drinking water available and affordable to 500 million people through our Pureit in-home water purifier by 2020. We are working with a range of microfinance and NGO partners in India to improve the affordability of the purifier for sections where price remains a barrier to purchase. Every year. Our Pureit in-home water purifier provides water 'as safe as boiled water'. we seek to take messages on the importance of handwashing to vulnerable sections of the society.000 children in 38 cities and towns across India to educate children on the importance of handwashing. Our rural outreach programme – Khushiyon Ki Doli (Caravan of happiness) takes the message of handwashing to remote areas of our country. we reached over 17 million people through the Lifebuoy handwashing programmes in India. Since 2010.000 HUL employees including our CEO reached out to 91. Lifebuoy launched the Global Handwashing Day in India on 15th October. India. The National Institute of Epidemiology (NIE) has scientifically established that homes using Pureit have had a 50%* lower incidence of diarrhoea. We teach children in urban schools the benefit of using handwash on five critical occasions every day. We are piloting with an initiative called Waterworks™. diarrhoea and pneumonia claim the lives of over two million children under the age of five. Lifebuoy has taken its handwashing behaviour change programmes to millions of people across the world.HEALTH & HYGIENE REDUCE DIARRHOEAL AND RESPIRATORY DISEASE THROUGH HANDWASHING Global Target: By 2015. Africa and Latin America by promoting the benefits of handwashing with soap at key times. Pureit provides approximately four litres of safe drinking water for just one rupee.

we will have removed from all our products any trans fat originating from partially hydrogenated vegetable oil. FUTURE CHALLENGES Reaching a large number of people living in villages spread across vast stretches of India is always a challenge. contractors and visitors – on our premises. we conducted a joint workshop with the International Union of Nutritional Science on salt and health to generate ideas for new approaches to reduce the salt intake in India. By 2020. which is about eight times less saturated fat than other leading table spreads. we have set targets for reducing workplace injuries and accidents. It is our endeavour to help people achieve the right nutritional balance needed for good health. By the end of 2012. trans fat and sugar in our portfolio. HUL actively promotes a culture of safety beyond work.hul. This drives us to improve our products and run awareness campaigns for consumers. We achieved 62. Safety performance is monitored through a set of key performance indicators and reviewed regularly by the Company’s management committee. All employees and their families are involved in home safety and road safety initiatives. In 2012. 08 .co. REDUCE SALT LEVELS Global Target: Prior to 2010. Since we began the Nutrition Enhancement Programme in 2003 globally. We developed a simple. As part of our Sustainable Living Plan. Our Kissan creamy spread provides more than 15% of the essential omega-6 fats and has less than 33% saturated fat.IMPROVING HEALTH & WELL-BEING REDUCE WORKPLACE INJURIES AND ACCIDENTS Global Target: We aim for zero workplace injuries. we have made good progress on lowering the levels of salt. This required reductions of up to 25%. our leading spreads will contain less than 33% saturated fat as a proportion of total fat. REMOVE TRANS FAT Global Target: By 2012. REDUCE SATURATED FAT Global Target: We are committed to improving the fat composition of our products by reducing saturated fat as much as possible and increasing levels of essential fats. A daily portion will provide at least 15% of the essential fatty acids recommended by international dietary guidelines. Our goal is to reduce the level further to help consumers meet the recommended level of 5 g of salt per day based on globally recognised dietary guidelines. Though we have made good progress over the last two years. we will need to further strengthen our engagement with people. Our Kissan ketchup range has seen a sodium reduction of 10% since 2011 and currently all our ketchups meet the interim target of 6 g salt per day. free online ‘Salt Tool’ (http://salttest. Our first milestone was to reduce salt levels to an interim target of 6 g per day by the end of 2010. By 2012. Our ambition is to reduce by a further 15-20% on average to meet the target of 5 g of salt per day between 2015 and 2020. 66% of our Foods portfolio (by volume) was compliant with the 5 g per day salt target. NUTRITION Millions of people in the country enjoy the foods and beverages we make. We will need innovative ways to spread our messages. we will reduce the Total Recordable Frequency Rate (TRFR) for accidents in our factories and offices by 50% versus 2008.5% reduction in the TRFR. We design facilities and procedures to ensure safety of everyone – employees. saturated fat. we had already significantly reduced salt levels in our products.in) which tells consumers their current salt intake and how they can reduce their intake gradually.

We will implement Lamplighter in an additional 30 countries between 2012 and 2015. This requires a business model that offers healthy products across multiple price points and different product sizes accessible to every socio-economic category. For example. Our medical and occupational health strategy addresses the top three health risks we have identified — mental health. we need to ensure that they remain affordable.Our portfolio in India is virtually free from trans fats originating from partially hydrogenated vegetable oil. employees are assigned colour codes (green. For eg.000 employees have been covered by the programme in India. where relevant. IMPROVE EMPLOYEE HEALTH AND NUTRITION Global Target: Our Lamplighter employee programme aims to improve the nutrition. In 2011. * Where applicable and legally allowed in accordance with local or regional industry agreements. Employees identified in the amber and red categories are provided support and treatment as necessary. fibre and sodium. we have been regularly performing basic preventive health checks for all employees. More than 60% of our children’s ice cream portfolio in India contains 110 kilocalories or fewer per portion. This employee health and well-being programme has shown a steady decline of ‘Reds’ over the last eight years. REDUCE CALORIES Global Target: By 2014. All our labels carry information on energy. fitness and mental resilience of employees. meeting our interim 2012 target. only about 4% of our employees belong to the red category. PROVIDE HEALTHY EATING INFORMATION Global Target: Our aim is to provide clear. Approximately 15. our ice cream portfolio is fully compliant and does not use any raw materials containing partially hydrogenated oil. As we improve the nutritional quality of our products. Our Knorr range of soups and Kissan creamy spreads are virtually trans fat free (<1gm/100gm). Unilever Sustainable Living Plan: India Progress Report 2012 | 09 . Building awareness and adapting to consumer’s tastes and preferences while providing nutritious food remains one of the biggest challenges. a large number of children suffer from malnutrition in India. For the last eight years. all our products will include energy per portion information on the front of the pack. FUTURE CHALLENGES The number of people with diabetes. it had already been implemented in 30 countries. By 2015. By 2010. we aimed to extend the reach of Lamplighter to a further eight countries. simple labeling on our products to help consumers make choices for a nutritionally balanced diet. and red) based on their state of health as part of the Lamplighter programme. 60% will meet this level by 2012. sugars. plus list the eight key nutrients and percentage Guideline Daily Amounts (GDA) for five nutrients on the back of pack*. At the same time. fat and also on saturated fat.  Currently. 100% of our children’s ice creams will contain 110 kilocalories or fewer per portion. amber. Our longer-term goal is to extend it to all the countries where we operate. protein.000 people. reaching 35. In the lifestyle management programme. our Fruttare and Paddlepop range are fully compliant. lifestyle factors and ergonomic factors. hypertension and obesity is on the rise.

fruits. our goal is to halve the environmental footprint of the making and use of our products as we grow our business. waste and sourcing. local government and farmers to sustainably source our agricultural raw materials which includes tea. GLOBAL PERSPECTIVE We have made good progress in reducing our environmental footprint across our value chain. Our biggest challenge remains encouraging people to change their behaviours when using our products. reusing and recycling our waste material. This is because the largest part of our environmental footprint lies at the consumer end. by reducing greenhouse gases from our transport network and by deploying climate-friendly freezer cabinets for our ice cream business. We are evaluating different technology options to process waste generated from sachets. vegetables and spices. recycling of treated effluent water and rainwater harvesting. We will be able to achieve this by innovating to develop new products and adapting existing ones. We will continue to focus on reducing. We are reducing greenhouse gases across our value chain through the use of climate-friendly manufacturing technologies and processes in our factories. We are working with our suppliers. water. We therefore have an important role in influencing how people use our products. OUR APPROACH We are working to reduce our environmental impact on four priority areas across the value chain – greenhouse gases.REDUCING ENVIRONMENTAL IMPACT GLOBAL GOAL By 2020. 10 . We are working to reduce water usage in our manufacturing operations by optimising process operations.

we maximised direct despatches in a way that the distance travelled reduced whereas the load carrying capacity increased significantly. We will more than double our use of renewable energy to 40% of our total energy requirement by 2020. we used new trucks that have greater height and can carry more volume. Till 2012. These projects helped increase the share of renewable energy to 19% by 2012. When we launched our Plan in November 2010. We took up several environment-friendly initiatives in our manufacturing operations such as setting up a cogeneration power unit.1kg CO2 per tonne). this project is now being rolled out across several distribution centres. This represents a reduction of around 40% per tonne of production. Biomass boilers were commissioned at two more sites in 2012.8% against the 2004 baseline and 22% compared to our 2008 baseline. This was achieved through various initiatives such as biomass boilers. employing alternative transport such as rail or ship and improving the energy efficiency of our warehouses. REDUCE GREENHOUSE GAS EMISSIONS FROM TRANSPORT Global Target: By 2020.000 units with the new refrigerant. we reduced CO2 emissions per tonne of production in India by 41. CO2 emissions from our global logistics network will be at or below 2010 levels despite significantly higher volumes. using lower emission vehicles. In 2012. thermic fluid heaters and hot air generators at factory sites. After being successfully piloted in one of the Bangalore depots. increasing the total number of sites to 11. Unilever Sustainable Living Plan: India Progress Report 2012 | 11 . We continued to focus on travel distance and load capacity. we will accelerate our roll-out of freezer cabinets that use climate-friendly (Hydrocarbon) refrigerants. we had already purchased 450.  We also introduced new lighting systems with CFL bulbs to reduce power consumption by 50%. use of sky light pipes which allow natural sunlight for illumination on the shop-floor and the use of LED lights and energy efficient motors. This will represent a 40% improvement in CO2 efficiency. We will achieve this by reducing truck mileage. this represents a 63% reduction per tonne of production and a 43% absolute reduction. In 2012.GREENHOUSE GASES REDUCE GREENHOUSE GAS EMISSIONS FROM OUR MANUFACTURING Global Target: By 2020. Versus a 1995 baseline. CO2 emissions from our logistics network reduced by 5% (from 83. CO2 emissions from energy from our factories will be at or below 2008 levels despite significantly higher volumes.  During 2012. REDUCE GREENHOUSE GAS EMISSIONS FROM REFRIGERATION Global Target: As the world’s largest producer of ice cream. For transporting by road. We exceeded this target. We had made a commitment to reduce CO2 emissions per tonne of production by 25% by 2012 (against the 2004 baseline). We will purchase a further 850. We recognise that this is only a first step towards a longterm goal of 100% renewable energy. This helped us increase the overall loading ability from 89% to 93%.000 units by 2015. leading to 3% increase in loading ability. All newly built factories will aim to have less than half the impact of those in our 2008 baseline. we used the railways to transport our products.2 kg CO2 per tonne to 79.

On an average. We are trying to find solutions which can help consumers use less water for rinsing. from our factories to our distribution centres and from there to our customers. 12 .  More than 30. By 2011.000 such green freezers with HC technology have been deployed in India. It significantly helps reduce water consumption in laundry. Just a capful of Magic in the very first bucket of rinse helps remove all the lather and soap and thereby helps save up to three buckets of water per wash. These freezers have brought about a significant reduction in our carbon footprint. dramatically cutting business trips to and from India. In 2012.000 meetings were held utilising the telepresence facility. REDUCE EMPLOYEE TRAVEL Global Target: We are investing in advanced video conferencing facilities to make communication easier while reducing travel for our employees.REDUCING ENVIRONMENTAL IMPACT In 2007. This new way of conducting meetings reinforces our belief in agile working – a flexible approach that enables employees to work anytime. Raising awareness among people and encouraging behaviour change continue to be important factors in reducing emissions. FUTURE CHALLENGES We have a vast distribution network that takes our products to the remotest corners of India. Simple practices such as switching off lights and equipment when not needed and swift reporting of steam and compressed air leaks can deliver big energy savings. from anywhere. We also have 30 video conferencing facilities in our key locations across India. we stopped purchasing Hydrofluorocarbons refrigerant cabinets and replaced them with new cabinets that use climate-friendly Hydrocarbon (HC) refrigerants. Magic water saver was launched in May 2012 as a pilot in Andhra Pradesh. Another product which helps reduce water required in rinsing is the Comfort 1 Rinse fabric conditioner. this network will cover more than 30 countries. Studies show that rinsing clothes accounts for the bulk of water consumption in the laundry process. Comfort 1 Rinse fabric conditioner helps consumers save two buckets of water per wash. as long as business needs are met. • Providing 50 million households in water-scarce countries with laundry products that deliver excellent results but use less water by 2020. three to four buckets of water are used for rinsing per wash. We will have to work to embed these practices at our own premises and also extend them to the operations of our partner. We are working to reduce the CO2 emissions from energy used during these operations. over 2. We spend a significant amount every year on transportation and warehousing from suppliers’ factories to our own factories. Rinsing alone accounts for 80% of water consumption in laundry for many households that rely on washing clothes by hand. while giving them the same effective cleaning performance. With a significant presence in Tamil Nadu. WATER REDUCE WATER USE IN THE LAUNDRY PROCESS Global Target: We will reduce the water required in the laundry process by: • Making easier rinsing products more widely available.

Unilever Sustainable Living Plan: India Progress Report 2012 | 13 . Versus a 1995 baseline. we will reduce the weight of packaging that we use by a third through: • Lightweighting materials • Optimising structural and material design • Developing concentrated versions of our products • Eliminating unnecessary packaging We delivered a significant reduction in overall plastic and paperboard consumption in India. Mangalore. Through this initiative. we expect one million people to benefit from our efforts and a 15% rise in crop production in villages across India. water abstraction by our global factory network will be at or below 2008 levels. Karnataka and Maharashtra. The projects are in partnership with NGOs. WASTE REDUCE PACKAGING Global Target: By 2020. Sumerpur. We will focus in particular on factories in water-scarce locations. Dapada.500 tonnes of plastic and over 700 tonnes of paper. recycling of treated effluent water through Reverse Osmosis technology. resulting in a potential annualised reduction of more than 1. Some of our manufacturing sites have the potential of returning more water to the ground than is being consumed by them. We have made a start by offering products that can significantly cut water usage by consumers. Rainwater harvesting has been implemented in 22 sites out of a total of 38 sites. rainwater on the terrace area of the factory is collected and recycled for use in various processes in the factory. The Foundation's partnerships have resulted in water storage and conservation potential to the extent of 25 billion litres as of March 2013. As part of this process. We have 30 of our 38 manufacturing sites as zero-discharge sites. a wholly-owned subsidiary of HUL. this represents a 78% reduction per tonne of production and a 65% absolute reduction.500 kilolitres of water per annum cumulatively by implementing roof rainwater harvesting. the factory reduced water consumption by 11% in Phase-1 of implementation in 2012. All newly built factories will aim to abstract less than half the water of those in our 2008 baseline. government agencies such as NABARD. despite significantly higher volumes.HINDUSTAN UNILEVER FOUNDATION This Foundation. Gujarat. FUTURE CHALLENGES Changing consumer behaviour is a challenging task and we have only made limited headway. Tatapuram and Chiplun saved up to 13. Our Goa factory became the first factory in the entire South Asia cluster to implement roof rainwater harvesting. REDUCING WATER USE IN OUR MANUFACTURING PROCESS Global Target: By 2020. This has been achieved by a series of initiatives such as collecting and recycling rainwater. The Foundation has undertaken water conservation and storage projects in several villages in Madhya Pradesh. Tamil Nadu. In 2012. We have reduced water usage in our manufacturing operations by 29% compared to our 2008 baseline. is engaged in community projects to conserve water for public good. optimising process operations and other initiatives. Over the years. This represents a reduction of around 40% per tonne of production. Puducherry. We do not yet have all the answers and we will continue to seek innovations which will help people reduce their impact on the environment. a number of projects were implemented across categories. Our sites for Home Care products at Goa. Our factories implemented some simple innovations to contain the usage of water. state governments and members of the local community.

REDUCE WASTE FROM OUR MANUFACTURING Global Target: By 2020. We have evaluated 'technical proof of principle' of turning sachets. governments and NGOs. we will increase the recycled material content in our packaging to maximum possible levels. at least 90% of our office waste will be reused. the consumers were given discount coupons for future purchases. it has been challenging to find an economically viable way of collecting and recovering sachet waste due to its low weight. In return. Vim Liquid & Kissan Ketchup. cement co-processing and mechanical recycling. Sachets and pouches create less waste by weight per millilitre of product sold and are therefore considered more efficient for packaging than bottles. HUL and Bharti Retail implemented a joint programme named 'Go-Recycle'. The Effluent Treatment Plant sludge of the Hosur factory is co-processed through the plants of ACC Limited. we will reduce paper consumption by 30% per head in our top 21 countries. this represents an 80% reduction per tonne of production and a 70% absolute reduction. The 14 . and other flexible plastic waste into fuel oil at a viable cost. This represents a reduction of around 40% per tonne of production. In 2012. a cement major which uses the sludge as fuel in its cement kiln. This will act as a catalyst to increase recycling rates. REUSE PACKAGING Global Target: We will provide consumers with refills in our home and personal care portfolio to make it possible to reuse the primary pack. Emphasis on recycling has led to more than 98% of our total waste being recycled in environmentally-friendly ways. The technology options being worked on include pyrolysis. the gas generated would be used in the canteen for cooking. By 2020. However. In Nasik. Some of the other initiatives include sludge-digesters installed in the Nasik and Amli (Silvassa) factories. By 2015. consumers were encouraged to bring empty plastic bottles and pouches of any brand from select FMCG categories. Our factory in Puducherry has successfully used the fuel to power its boiler to check feasibility of this approach. We introduced refills in several products such as Lifebuoy. purchase order processes. flexible plastic as well as municipal authorities and NGOs. recycled or recovered by 2015 and we will send zero waste to landfill by 2017. we aim to increase recycling and recovery rates on average by 5% by 2015 and by 15% by 2020 in our top 14 countries. This requires us to work in partnership with other users of REDUCE OFFICE WASTE Global Target: In our top 21 countries. Versus a 1995 baseline. The fuel can be used in our factories as furnace oil or can be used for similar industrial applications. HUL and Bharti Retail ‘Go-Recycle’ programme engaged over 100. We have taken various initiatives to reduce waste from our office sites. Pyrolysis offers a closed loop system which involves catalytic depolymerisation of plastics into fuel. A total of 31 HUL factories are now 100% zero non-hazardous waste to landfill. Reduction in total waste per tonne from our manufacturing sites is 77% against the 2008 baseline.REDUCING ENVIRONMENTAL IMPACT RECYCLE PACKAGING Global Target: Working in partnership with industry. Our campus at Mumbai has Effluent Treatment Plants which treat 100% of sewage and chemical waste.000 shoppers over a six-month period. 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. pouches. TACKLE SACHET WASTE Global Target: Our goal is to develop and implement a sustainable business model for handling our sachet waste streams by 2015. this means doubling or even tripling existing recycling rates. total waste sent for disposal will be at or below 2008 levels despite significantly higher volumes. For some. This is another example of the ‘energy from waste’ model at work. financial reporting and employee expense processing by 2015. In order to create awareness and promote segregation of post-consumer use of packaging waste. As part of the programme. all manufacturing sites will achieve zero nonhazardous waste to landfill. We will eliminate paper in our invoicing. goods receipt. By 2015. All newly built factories will aim to generate less than half the waste of those in our 2008 baseline. We are studying long-term techno-commercial feasibility of different technology options to take this forward. where legally allowable and technically possible.

100% of Unilever’s tea. FUTURE CHALLENGES We are making good progress in identifying and developing technologies that help us reduce waste – be it at the production level in factories or at the consumer level by innovating optimised packaging solutions. over 60% of tomatoes used in Kissan Ketchup in India were from sustainable sources. carrot. we aim to have the tea in all Lipton tea bags sourced from Rainforest Alliance Certified™ estates. A total of 77 tea estates in Assam. In 2012. HUL aims to source 100% of its tomatoes from sustainable sources by 2015. However. Unilever is working with farmers in India to source gherkins sustainably for its brands. carrying this initiative forward and bringing about a change in the consumer mindset continues to be a medium and long-term challenge. therefore. By end-2012. In September 2012. Although this is a challenge. SUSTAINABLE TEA Global Target: By 2015. The site. all of our palm oil was from sustainable sources and 100% of palm oil volumes of India were covered by ‘Green Palm’ certificates. Amora and Maille. Banana puree used in making Kissan’s popular mixed fruit jam variant is sourced from sustainable sources. Farms sell to several manufacturers. finding an economically viable solution to collecting and recovering sachet waste has been challenging. SUSTAINABLE FRUIT AND VEGETABLES Global Target: We will purchase 100% of our fruit from sustainable sources by 2015. For this project. We have also initiated work on sustainable practices for vegetables like onion. it is also an opportunity to inspire end-to-end solutions through collaboration. We are therefore trying to create a scalable model that will significantly increase the recovery rates of this waste. will be sustainably sourced. FUTURE CHALLENGES SUSTAINABLE SOURCING SUSTAINABLE PALM OIL Global Target: We will purchase all palm oil from certified sustainable sources by 2015. We will purchase 50% of our top 13 vegetables and herbs from sustainable sources by 2012 and 100% by 2015. the Government of Maharashtra registered 618 farmers who grow tomatoes on over 1. more than 15% of the tea sourced from India for Unilever's brands was from sustainable sources.) We have committed to source 100% of our palm oil from sustainable sources backed by ‘Green Palm’ certificates by 2015. West Bengal and Tamil Nadu have been certified 'Sustainable Estates' by the Rainforest Alliance™ by the end of 2012. cabbage. The ‘Go-Recycle’ initiative has successfully highlighted the importance of recovery of materials which we place in the market. Unilever Sustainable Living Plan: India Progress Report 2012 | 15 . making it difficult to certify them as “sustainable sources” because the certificate is held by the manufacturing units. traceable sources by 2020. manufacturers are hesitant to change in a market where demand outstrips supply and there is little incentive to do things differently. We will purchase all palm oil sustainably from certified. Also. In 2012.208 acres. This accounts for over 80% of our global vegetable and herb volume. The hazardous waste is disposed at the authorised site. By 2020. including loose tea. we entered into a public-private partnership with the Maharashtra Government for sustainable sourcing of tomatoes locally. Equally.recycled water is used for the cooling tower for airconditioning. We have launched an initiative to source tomatoes sustainably in India. landscaping and flushing. sweet corn and garlic and spices like chilli. But we are aware that we need to do more. coriander. is a zero discharge site. A vermiculture organic digester on the campus processes this waste. cumin and turmeric. Dry and wet garbage is separated at the campus. This is being used as fertilizer. (New target 2012. A majority of farms in India are characterised by conventional farming methods and smaller landholdings.

often where larger distributor chains cannot reach. distributors and retailers across the globe. we will enhance the livelihoods of hundreds of thousands of people as we grow our business. they will be able to invest more and we will have better certainty of supply and better quality raw materials for our food products. We will source more agricultural materials grown by smallholders. we help them build better livelihoods.ENHANCING LIVELIHOODS GLOBAL GOAL By 2020. GLOBAL PERSPECTIVE We have a vast supplier and distributor network that touches small-scale farmers. OUR APPROACH We work to build opportunities for people while growing our business. 16 . Under the Shakti programme. As they prosper. A majority of those who benefit are smallholder farmers or small-scale distributors who sell our products. Spanning the range of opportunities from sourcing to distribution. we run several pilots focused on improving the livelihoods of small-scale businesses. micro entrepreneurs take our best practices and products across India. While they expand our reach. many of them in developing and emerging markets.

BETTER LIVELIHOODS HELPING SMALLHOLDER FARMERS Global Target: Our goal is to engage with at least 500.000 in 2015. saving time during sales calls while increasing sales and earnings. This project benefits HUL by enhancing its direct rural reach and also creates opportunities for people in rural India. provides work for large numbers of people in poor rural communities. The cost-effective mobile technology helps them sell the right products.000-4. train and employ from 45.000 smallholder farmers in our supply network.000 in 2010 to 75. This has helped to consolidate and strengthen our network. We continue to work with smallholder farmers across India to implement sustainable agricultural methods and improve their crop yields.3 million households. SUPPORTING SMALL-SCALE DISTRIBUTORS Global Target: Shakti. Shakti ammas have proved successful in increasing our presence in rural areas and building strong local relationships with consumers. The Shakti ammas cover over 135. KWALITY WALL’S VENDING OPERATIONS Our Kwality Wall’s mobile vending operations provide entrepreneurship opportunities to over 6. covering a larger area than Shakti ammas can do on foot.000 Shaktimaans across India. During 2012. equipping them with a simple application to drive sales. managing ` 2-10 crore in the ice cream business and earning upwards of ` 100.000 Shakti entrepreneurs (Shakti ammas) in 15 states.000 per month. We operate similar schemes in Bangladesh.500 migrants across India. our door-to-door selling operation in India. This initiative helped Shakti entrepreneurs increase their income by selling telecom products and services to retailers as well as directly to consumers. Project Shakti has 48. The project was rolled out nationally in 2012 after a successful pilot in 2011. In 2012. They sell our products on bicycles to surrounding villages. There are over 30. A few of our vendors have now become distributors themselves. In most cases. We support and encourage farmers to adopt advanced technologies for better yields by imparting training and through regular field-monitoring. we improved our Shakti rural-selling operation by part-funding mobile phones for a number of Shakti ammas. Our challenge is to continue to increase the business for our Shakti entrepreneurs and also increase the viability for extending the Shakti network to smaller and remote villages. We also help the farmers with good agricultural practices like drip irrigation. HUL also entered into a partnership on telecom distribution with a leading telecom company. which encourages brand loyalty. PROJECT SHAKTI Project Shakti is a rural distribution initiative that targets small villages.000 villages and serve 3. We will help them improve their agricultural practices and thus enable them to become more competitive. Training Shakti entrepreneurs continues to remain a resource intensive process. Unilever Sustainable Living Plan: India Progress Report 2012 | 17 . The model we use improves the lives of Shakti ammas and usually leads to the doubling of income of a Shakti household. We will increase the number of Shakti entrepreneurs that we recruit. By doing so we will improve the quality of their livelihoods. behavioural and basic sales training and financial support are provided through our channel partners along with initial stocks on credit and a vending cart with freezers.500 a month. nutrient management. pest and disease management. first-aid kits. our work with Shakti ammas helped them further grow and develop their businesses. Uniforms. Sri Lanka and Vietnam which we are also committed to expanding. The programme was extended in 2010 to include ‘Shaktimaans’ who are typically the husbands or brothers of the Shakti ammas. FUTURE CHALLENGES Project Shakti is a well known example of the synergy between enhancing livelihoods and growing our business. Shaktimaans complement our Shakti ammas. a vendor can make ` 3.

please pass it on to other interested readers or dispose it along with recycled paper waste.UNILEVER. Andheri (E) Mumbai 400 099 T +91 (22) 3983 0000 For further information on our social. please visit our website: WWW. economic and environmental performance. D.COM/SUSTAINABLE-LIVING .If you have read this report and no longer wish to retain it. HINDUSTAN UNILEVER LIMITED Unilever House B. Thank you. Sawant Marg Chakala.

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