Unilever PLC · LSE:ULVR
Unilever — Société Générale SRI Conference 2008
26 slides from Unilever's conference presentation, Apr 2, 2008
Slide 1: “Doing well by doing good”
“Doing well by doing good” Unilever’s Integrated Approach to Responsible Business Practice and Sustainability Presentation at the Société Générale SRI Conference London: Wednesday 2 April 2008 Gavin Neath CBE: Senior Vice President Communications This presentation may contain forward-looking stateme
Slide 2: Many of these have strong market positions
Many of these have strong market positions. 13 have annual revenues of over $1 billion Foods Home & Personal Care Savoury Mass Skin Spreads Deodorants World Number 1 Daily Hair Care Dressings World Number 2 Oral Care Local strength Tea Laundry Ice Cream Household Cleaning 13 Brands have revenues >$1
Slide 3: ….which today accounts for 44% of our sales
….which today accounts for 44% of our sales 2004 2007 Other Other Developed developed D&E 23% 26% 36% D&E 44% Western Western Europe Europe 33% 38% We have distribution in depth… from the favelas of Sao Paolo to the villages of India We sell to both the well-off and to the very poor.. 3
Slide 4: …with trusted brands that suit different pockets and lifestyles
…with trusted brands …that suit different pockets and lifestyles D&E population 2007 (billions) Have lots 0.5 Haves 2.6 Have nots 2.6 …through a differentiated brand portfolio Laundry, India Hair, Indonesia 4
Slide 5: So What? CR has been central to our way of doing business
So What? •Our size •Our geographical breadth •Our distribution reach •The number of consumer contacts we make daily Give us a great capacity to do good (and to do harm) Synthesis of the Brand Imprint MODEL CR has been central to our way of doing business…. Founded in 1884 by William Lever – one of t
Slide 6: Health has always been part of Unilever’s corporate purpose
Health has always been part of Unilever’s corporate purpose Our Mission in 1890 Our Mission in 2008 “To make cleanliness commonplace, “Unilever's mission is to add to lessen the work for women; to Vitality to life. We meet everyday foster health and contribute to needs for nutrition, hygiene and per
Slide 7: An approach to CR built on 4 pillars
The result is an approach to CR built on 4 pillars that reflect our brands and our heritage Nutrition and Health Hygiene Sustainable Development Brands with “Social Missions” Nutrition and Health covers four main areas 1 Our Nutrition Enhancement Programme 2 The Choices stamp 3 Innovating to create
Slide 8: Not only have we eliminated “baddies”
Not only have we eliminated “baddies”… Promise spreads Lipton Ice Tea Knorr soups US US Europe Virtually trans fat-free Up to 25% less sugar Up to 30% less salt …we have upgraded the profile of core ranges Ragu sauces Knorr bouillon Improved natural ingredients: • More vegetables and herbs Now with
Slide 9: Already 1/3 of Unilever products qualify for the Choices stamp
Already 1/3 of Unilever products qualify for the Choices stamp Belgium Czech Greece France Poland Thailand Chile South Africa Netherlands Switzerland USA Our Foods innovation programme is targeting five key benefit areas… Heart Beauty Health Immunity Weight and Management Strength Brain …and five na
Slide 10: …where we have long-standing expertise
…where we have long-standing expertise Our brands’ heritage in tea dates back over a century We have been researching the dietary impact of vegetable oils since the Soy-based AdeS 1960s drinks were first launched in Argentina 20 years ago Example: Flora/Becel and Heart Health Omega 3 plus Packed wit
Slide 11: Example: Hellmann’s and Knorr
Example: Hellmann’s - The Real Goodness of Mayonnaise Example: Knorr – Chilled soups packed with vegetables Healthy, premium ingredients Delicious recipes New packaging for a fresher taste Example: Knorr – Eat Colour 11
Slide 12: Example: Lipton and the health benefits of tea
Example: Lipton and the Health benefits of tea Even ice cream can deliver positive nutrition Delicious ice cream for kids with as much calcium as two glasses of milk + + We are also committed to a fortified foods programme Partnership for Child Combating Iodine Working with Nutrition Deficiency Part
Slide 13: Hygiene is the second pillar of our CR strategy
Hygiene is the second pillar of our CR strategy Hand Washing Oral Hygiene Water Purification Laundry and Household Care Our hand washing education programmes are extensive “The second biggest killer of children in the world is diarrhoea. Hand washing can cut diarrhoeal diseases by 48%” Lifebuoy’s ha
Slide 14: Pureit and sustainable development, the third pillar
4 billion people do not have access to clean drinking water Pureit can provide this… •Reliably – tested by the London School of Hygiene & Tropical Medicine and the Indian National Institute of Epidemiology •Cheaply – 0.004 pence per litre – costs less than boiled water •Test Marketed in Chennai •Now
Slide 15: Climate Change
Climate Change We have measured our greenhouse gas footprint Supply Chain 45m tonnes Manufacture 5m tonnes Distribution 4m tonnes Travel/Other 0.5m tonnes Consumer Use 150 -200m tonnes In the upstream Supply Chain our efforts are currently limited • Foods – The Sustainable Agriculture Programme has
Slide 16: CO2 reductions in our own factories
CO2 reductions in our own factories have declined by c.35% 1995-2006 2012 Target: Further reduction of 25% vs. 2004 In refrigeration we have made good progress •Our ice cream is stored in c.2 million freezers •We have developed refrigerants with natural HC’s which have a lower global warming potenti
Slide 17: Agriculture is our second big sustainability thrust
Agriculture is our second big sustainability thrust 2/3 of our raw materials come from agriculture We have 11 sustainability indicators for each of 10 key crops • Soil fertility and • Value chain health • Energy • Soil loss • Water • Nutrients • Social capital • Pest management • Local economy • Bio
Slide 18: We have done this in partnership with others
We have done this in partnership with others SAAB - Sustainable Agriculture Advisory Board Unilever SAI Platform RSPO - Roundtable on Sustainable Palm Oil RTRS - Roundtable on Responsible Soy SFL - Sustainable Food Laboratory We are soon to reap the business benefits of this work By 2015 all of our
Slide 19: Our water footprint is large
Our water footprint is large in raw materials in manufacturing in consumer use 50% 5% 45% We have tried to minimise our impact across our value chain We have had most success in our own factories – water use has declined by 59% 1995-2006 Consumer use of water is greatest in Fabric Cleaning Laundry p
Slide 20: Our laundry business and water consumption
Our laundry business is responsible for a huge volume of water consumption Statistics on Water usage in Laundry Product volume = 6 Million tonnes Consumer water use =7.9 Billion m3 (2.6% Domestic) In 23 countries Unilever’s Laundry water is > 5% domestic water use Water consumption Ingredient & Pack
Slide 21: Packaging is our fourth sustainability thrust
We launched 'easy-rinse' fabric softeners in seven countries in Central & Latin America Packaging is our fourth sustainability thrust Our packaging footprint is large Unilever uses >2 Million tonnes of packaging annually, much of it branded Packaging has a crucial role in the FMCG Industry …. Protec
Slide 22: Packaging approach and deodorant successes
But its visible volume and waste makes it a target for the trade, the public, NGOs and legislators Our approach • Light weighting Hitting the market Increasing challenge • Concentration Exploring Options • Refillables & On-the-go • Consumer habit change Recent successes - Deodorants 1960 Tons Reduct
Slide 23: Recent Successes – Lipton and Liquids Concentration
Recent Successes – Lipton Old New •Cartons made with 100% recyclable board, 35% post consumer waste •Reduced width – less material •Weight decreased by 16 % •Eliminated 6,437 pallets annually •Eliminated 132 additional trucks annually Recent Successes – Liquids Concentration Will save approximately
Slide 24: Brands with social missions and the business case
The fourth pillar of our CR strategy is “brands with social missions” Ben & Jerry’s: Climate Change Hygiene: Hand Wash Education Flora: Heart Health Dove: Campaign for Real Beauty What is the business case for sustainability? It will: 1. Fuel innovation 2. Help us win with customers 3. Help us win i
Slide 25: Business case: Win with customers and in D&E markets
Business case: Win with customers Business case: Win in D&E markets D&E markets will suffer the worst effects of climate change: • Acute shortages of water • Desertification of agricultural land • The winning companies will anticipate these trends with products that address changing consumer priorit
Slide 26: Some thoughts to finish
Business case: Differentiate & build Unilever brand Some thoughts to finish • Unilever’s social and environmental impacts come from its brands • To make a real difference on the world around us we have to embed responsible business practice and the principles of sustainability into the marketing and