Corporate Social Responsibility

(HUL)

Why the ranking was given?

According to Forbes, companies are ranked by their innovation premium — the difference between their market
capitalization and the net present value of cash flows from existing businesses. “The difference between them is
the bonus given by equity investors on the educated hunch that the company will continue to come up with
profitable new growth," the magazine said. HUL recorded an innovation premium of 68.59%

Every lucrative establishment of a certain size is socially accountable—to itself, its stakeholders, and the public.
Recognized companies are expected be conscious of the kind of impact they are having on all aspects of society,
including economic, social, and environmental.

If a company is considered responsible it is because it operates in ways that enhance society and the environment,
and not contributing negatively to them. By being socially responsible, businesses can not only benefit society, but
can also boost their brand image.

The Futurescape Responsible Business Rankings are based on the study carried out by Futurescape that uses the
ESG (Environmental, Social and Governance) framework. Over 90 parameters are used to map India’s top
companies on ESG metrics. Key action themes for companies included renewable energy, water, waste, and data
privacy.

As per Futurescape’s assessment of companies in 2020, HUL is ranked as 7 th among the companies that emerged as
the most responsible in terms of sustainability and Corporate Social Responsibility (CSR)

Here are the key highlights of the assessment :

-ESG performance of companies has risen across the board

-The first time a service sector company achieved the top rank.

-Manufacturing companies continue to perform better than service companies

-Information Technology and diversified are the top performing industries, while NBFC’s are laggards.

-Sustainability is increasingly becoming part of core corporate strategy

-Integrated reporting is ramping up. 26% of the companies produce integrated reports.

-All the top 10 companies mapped their business goals with SDGs (Sustainable Development Goals (SDGs)

Energy

Renewable energy capacity and its utilization have geared up. While solar energy is the preferred renewable
energy source, there is growing impetus on bio fuel.

Water

Access to water and management of water resources continues to be a focus area for internal operations and
societal initiatives.

Waste
Initiatives to manage e-waste, municipal waste and plastic reuse & recycling shows an increasing trend.

Data

Customer data and its privacy is a material aspect in the operations of services companies.

Hindustan Unilever Limited, popularly known as Unilever or HUL, works on the basis of USLP (Unilever Sustainable
Living Plan). The plan was launched in 2010 and is creating sustainable growth through the company’s world-
famous brands and in the process cutting costs, reducing risks and building goodwill for the company. USLP has
three global goals: to help more than a billion people take action to improve their health and wellbeing, to reduce
the environmental footprint of its products and to enhance the livelihoods of people as they grow their business.

HUL has been spending more than the mandated 2% of profits over the years. In FY 2020, its CSR spend was a
whopping Rs. 142 crores. The company uses its CSR funds to work on issues which plague India’s development. It
has achieved huge successes in the areas of water conservation as well as tackling health and hygiene issues at the
grassroots level. HUL has pledged INR 100 crores to help the Indian government fight COVID-19.