2012 Sustainability Report UNILEVER BRAZIL back to summary unilever brazil Sustainability Report 2012 PROFILE STRATEGY CORPORATE GOVERNANCE OUR STAKEHOLDERS IMPROVING HEALTH AND WELL-BEING REDUCING ENVIRONMENTAL IMPACT ENHANCING LIVELIHOODS PEOPLE PRODUCT RESPONSIBILITY The short version of the Unilever 2012 Sustainability Report is available here. The document provides contextualized information about our socio-environmental performance, actions and initiatives in our manufacturing and non-manufacturing operations, on the themes of our Materiality Matrix. REPORTING PROCESS 1 unilever brasil brazil Sustainability relatório de sustentabilidade Report 2012 2012 profile Message from the President Highlights in period A great leader RECOGNITIONS voltar back to ao summary sumário BUSINESSES CATEGORIES AND BRANDS PLANTS AND OPERATIONS 2 unilever brazil Sustainability Report 2012 Message from the President Unilever Brasil is publishing its Sustainability Report, in which we present our efforts and achievements over the last year to the public and the market, for the tenth year running. In 2012, Unilever Brasil consolidated its business model and its position as the company’s second largest operation worldwide. We grew significantly during the year, reaching revenues of BRL 13.6 billion. At the same time, we reduced our environmental impact and achieved a number of milestones in our Sustainable Living Plan. Two years after the launch of The Plan, I can confidently say that we are making an important contribution to the global target of doubling the size of the business while reducing its environmental impact. In the environmental pillar, we reduced water consumption in our plants by 12% and eliminated the disposal of solid waste in landfills at four factories. We also exceeded our target of replacing Kibon freezers with models having a lower environmental impact. We progressed in two other pillars of the Sustainable Living Plan, enhancing the nutritional profile of our food products and strengthening relations with customers and suppliers. In the supply chain, we invested in mapping, engaging and monitoring our commercial partners and sourced 100% of our GRI 1.1 e 1.2 back to summary profile palm oil from suppliers who are members of the RSPO (Roundtable on Sustainable Palm Oil), an international initiative to promote best practice in the sector. We were also the first company to buy sugar credits, ratifying our commitment to the sustainable sourcing of production inputs. We have a large number of initiatives in progress in every area, ranging from new product development to the distribution and post-consumption phases. But we still have a lot to learn and even more to do. This became patent in June 2012, when senior Unilever leaders from Brazil and overseas attended the United Nations Conference on Sustainable Development, Rio+20, participating in a series of dialogues and discussions and publicly reinforcing the company’s commitment to sustainability. A major achievement in the conference was the emphasis laid on the importance of the business community in establishing targets and commitments for the future. We have assumed our part in this process, and it is precisely that which this report seeks to show to our diverse stakeholders, presenting our commitments and our targets, the results achieved and the measures currently underway. I would like also to underscore the challenge we face in educating consumers and boosting their awareness through the force and reach of our brands. These represent a powerful communication channel and have incorporated the function of proving that sustainability is a viable means of enhancing people’s lives in the present and the future. Bearing this in mind, I believe that in 2013 we need to maintain our current course, keep the Sustainable Living Plan at the heart of our business and carry on working, aware that everyone will benefit from our achievements. The priorities remain the same: to continue to grow ahead of the market at a rate that will enable us to double the size of the business in the short term, reducing our environmental impact on a monthly basis, with very clear targets and measurements. And to disclose our results annually in a balanced, transparent manner, as shown by this report. Enjoy reading it! Fernando Fernandez President, Unilever Brasil 3 unilever brazil Sustainability Report 2012 A great leader A major presence in the country for more than 80 years and market leader in a number of categories, Unilever Brasil maintains its status as the company’s second largest operation worldwide We are an Anglo-Dutch company present in 190 countries and operating in four major consumer product categories: personal care, foods, cleaning and refreshment (soy-based beverages and ice cream). Our Food Solutions division supplies the out-of-home meals segment with products for restaurants, hotels, catering and similar establishments. Active in Brazil for 83 years, Unilever currently markets 25 brands and more than 700 products in the country, including Omo, Comfort, Fofo, Seda, Lux, Kibon, Hellmann’s, Knorr, Becel, Maizena, AdeS, Dove, Axe, Close Up and Rexona. Leader in the powdered detergent, deodorant, soy-based beverage and ice cream segments, among others, we reach 100% of Brazilian households, serving around 200 million people in the country at least once a year. Brazil consumes around 200 Unilever products every second. The company’s second largest operation worldwide with annual revenues of BRL 13.6 billion, Unilever Brasil is based in São Paulo (SP), where it has four offices and its CiiC (Customer Insight and Innovation Center). The operation has nine manufacturing plants installed in four states (São Paulo, Minas Gerais, Pernambuco and Goiás), and 23 distribution centres delivering GRI 1.2, 2.1, 2.2, 2.3, 2.4, 2.5, 2.7, 2.8 e EC9 back to summary profile Our products serve million Brazilians at least once during the course of a year products to customers in the Northeast, Centre-West, Southeast and South of the country. At the end of 2012, we had a total of 13,273 employees working in our manufacturing operations, offices, innovation centres, distribution centres and at the points of sale through which we commercialize our products – such as supermarkets, drugstores and convenience stores, among others. More than 90% of our production is suppliers), by promoting responsible and conscious consumpabsorbed by the internal market, but as part of the company’s glo- tion, while reducing our environmental impact, increasing our bal network we also supply South America and the other continents. social impact and driving company growth. Our vision is a reflex of this positioning: working to create a better future means contributing towards a responsible consuGlobal commitment, local implementation mer goods industry, capable of meeting market needs without neglecting important questions such as conscious consumption Over recent years we have reinforced our commitment to and quality of life. For this reason, we promote initiatives centred management practice, communication and business oriented to on the social mission of products in which we have invested in sustainable development. With the launch of the Unilever Sus- recent years, such as the Pureit water purifier and Lifebuoy antainable Living Plan, conceived on a global level and translated tibacterial soap, as well as other brands created with a defined into specific commitments by company subsidiaries worldwide, focus, such as AdeS soy-based beverages, Becel margarine and we intend to influence and transform people, in particular our concentrated clothes care products like OMO, Surf, Comfort and strategic stakeholders (employees, customers, consumers and Fofo (see more at www.unilever.com.br/sustentabilidade). 4 unilever brazil Sustainability Report 2012 Every day we pursue the company’s greatest challenge, which is to double in size while reducing our environmental impact. We have progressed in reducing greenhouse gas emissions (GGE) and improved monitoring of impacts from water consumption and wastewater and solid waste generation. One of our commitments is to eliminate the disposal of solid waste in landfills at our plants and offices, a process which gained momentum in 2012. We are also taking a closer look at the value chain involved in our products and processes, promoting greater responsibility in people and supplier management, governance and consumer and customer relations. There is further information on these questions throughout the report. back to summary profile Vision Market presence We work to create a better future every day. We help people feel good, look good and get more out of life with brands and services that are good for them and good for others. We will inspire people to take small, everyday actions that can add up to a big difference for the world. We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact. Food Solutions Worldwide »» Operations in 190 countries »» More than 400 brands, of which 14 generate annual sales of more than 1 billion euros »» Growth rate of 6.9% in 2012 2 billion people use at least one Unilever product per day »» 171,000 employees »» 160,000 suppliers »» 252 plants »» Market leadership in seven categories: seasonings, teas, mayonnaise and margarines, sauces, skin care, ice cream and deodorants. In addition to products commercialized at points of sale, we are active in the out-of-home meals segment through the Unilever Food Solutions division. In operation in 74 countries, including Brazil, this division supplies products such as ingredients, starters and desserts to restaurants, hotels, buffet services and similar establishments. The area also offers a service platform that includes consulting and solutions for menu production. In Brazil, there are more than 90 items in the Food Solutions portfolio, encompassing brands such as Kibon, Hellmann´s, Knorr and Arisco. A number of formulas, such as Meu Arroz, have undergone specific alterations for use in industrial kitchens. In Brazil »» Revenues of BRL 13.6 billion in 2012 »» 9 plants in four states (São Paulo, Minas Gerais, Goiás and Pernambuco) »» 200 products consumed per second »» 86% of households impacted by our products per month (and 100% in the year) »» 13,273 employees »» Around 6,000 suppliers »» Market leadership in 10 of the 13 categories in which the company operates »» 60 new products launched in 2012 GRI 2.8, 4.8, 1.2, DMA EC Market presence 5 unilever brazil Sustainability Report 2012 back to summary profile The power of Brazil Unilever’s business performance in the country is a reflex of the search for new markets and investment in renovation Unilever Brasil ended 2012 with revenues of BRL 13.6 billion. This performance is a reflex of the strength of our brands in the country and our leadership in diverse segments, such as powdered detergents, personal hygiene and beverages. The concentrated liquid version of Omo launched in 2010 has already captured a 50% share of the liquid detergent market. Our soap powder is present in 78% of Brazilian homes, and we have a more than 40% share of the soy beverage market. In the hair care category, share currently stands at around 30% and is expected to reach 35% by 2015. In function of the economic situation in Europe and rising commodity costs, the emerging countries have grown in importance for Unilever. This group of countries, which includes China and India, saw an 11% increase in sales and currently accounts for 55% of Unilever’s total global revenues. In 2012, there were advances in categories and regions which are strategic for the business in the country. Unilever Brasil has established specific growth targets for the coming years, focused GRI 2.8, EC1, DMA EC Economic Performance on expansion in growing markets, accompanying the millions of Brazilians who have risen above the poverty line and increased public access to consumer goods. As a private company, Unilever does not disclose detailed information on its economic performance by country. Data on amounts, beneficiaries, shareholders and costs are considered strategic and are therefore confidential. This information is the responsibility of the global organization. The information determines company profitability and is associated with our positioning in relation to competitors in the consumer goods industry. Additionally, variations in local economic performance could lead to comparisons with the organization’s global performance, impacting share prices on international stock exchanges. In the Unilever Global report, available at www.unilever.com, information is provided on the company’s global economic performance by region (Americas; Western Europe; Asia, Africa, Central and Eastern Europe). Ongoing renovation Aligned with the Unilever Sustainable Living Plan, our business strategy is also focused on constant renewal of our portfolio and innovations that can reduce environmental impacts. During 2011 and 2012, we invested in the renewal of 70% of our products with the intention of boosting our market presence – including the segments which we already lead. Focused on ever better products and ever faster solutions, we also want to introduce new brands in new markets. We also seek sustainability-oriented innovations that produce positive results for the business, such as liquid soap sachets and concentrated liquid products, which have more competitive costs and produce returns while reducing waste generation. 6 unilever brazil Sustainability Report 2012 Within everyone’s reach Perception of our corporate brand has grown in tandem with our presence in consumers’ homes In addition to a corporate brand that is increasingly well known to Brazilians – more than 87% recognition according to a survey conducted by the Instituto Ipsos in 2011 –, we commercialize brands that have been a part of consumers’ daily routine for decades, such as Lux, Dove, Rexona, OMO and Kibon. Currently, Unilever Brasil products reach 86% of Brazilian households in the course of a month. Moreover, seven of our brands are in the Top of Mind ranking, with Omo occupying the position of outright leader since the 1990s. In addition to leading the soap powder category since 1991, since 1993 the brand has been first in the Top of Top category, for products with the highest consumer recall. back to summary profile Categories and brands Foods Personal care Refreshment (ice cream and beverages) Cleaning * *The Lipton product line is commercialized in partnership with Pepsico in Brazil. GRI 2.2, 2.5 7 unilever brazil Sustainability Report 2012 back to summary profile Unilever Brasil reaches 86% of Brazilian homes in the course of a month and leads a number of the categories in which it operates. Seven of our brands are in the Top of Mind survey, with OMO excelling since the 1990s. 8 unilever brazil Sustainability Report 2012 profile Where we are located Our nine plants and 23 distribution centres guarantee supply to markets all over Brazil At the end of 2012 we had nine manufacturing plants in Brazil, spread over the states of São Paulo, Minas Gerais, Goiás and Pernambuco. We also have 23 Distribution Centres (DCs), located in the Northeast, Centre-West, Southeast and South regions, from which our products are shipped to customers’ premises. For the cleaning, personal care and foods categories, we have four DCs located in plants and seven external ones - situated in strategic regions to serve different local markets. In the ice cream category, in which product transportation is more complex and requires greater capillarity, we have 12 DCs. Major operational changes in 2011 and 2012 included the transfer of part of powdered soap production from the Southeast to the Northeast (Igarassu plant) and, in the opposite direction, part of ice cream production from the Northeast to the Southeast. These initiatives are part of project to improve distribution and supply to local markets and reduce environmental impacts from logistics operations. Another significant alteration was the deactivation of the JK2 office used by the regional division in São Paulo’s Vila Olímpia GRI 2.3, 2.8 back to summary If everyone eligible for remote working adopted the model, we would avoid around 200 tonnes of CO2 emissions per year. district. Unilever Brasil’s flexible working hours and home office program, applicable to more than 1,300 work posts, enabled us to bring all the teams together in the JK1 office, located in the same district. Around 300 employees were transferred from JK2 to JK1, which now houses approximately 1,900 people. More than 400 third-parties were involved in the move, with no work accidents recorded. During the move, we disposed of some 5 tonnes of material from the JK1 and JK2 offices, in addition to equipment and furniture which were reallocated to other sites. The estimated reduction in impact is significant: if all the employees eligible for home office working adopted this model, Unilever Brasil would reduce CO2 emissions by 200 tonnes a year, based on petrol-powered cars. In 2012, we neither closed plants nor opened new ones. Some Unilever brands, such as Lipton, Becel and Cif, continue to be manufactured or distributed by third-party partners. 9 back to summary profile unilever brazil Sustainability Report 2012 Plants in Brazil 01 Vinhedo Beginning of operation 1978 Products manufactured Softeners (Comfort and Fofo), Shampoos and Conditioners (Seda, Suave, Dimension, Dove, TreSemme and Clear), Roll-on deodorants (Dove, Rexona and Axe), liquid soaps (Lux, Lifebuoy and Dove), Moisturising lotions (Dove and Vasenol) Employees 742 Region Industrial area Certification ISO 9001 (since 1999) ISO 14001 (since 1999) TPM1 02 Valinhos Ice Cream Beginning of operation 1970 Products manufactured Take Home (Kibon pots) and Impulse (Kibon lollypops) ice cream Employees 1.339 (Ice Cream + Personal Care) Region Urban Certification ISO 9001 (since 2001) ISO 14001 (since 2001) TPM 03 Valinhos Personal Care Beginning of operation 1895 Products manufactured Bar soap (Dove, Lux, Vinólia, Lifebuoy and Fofo) Employees 1.339 (Ice Cream + Personal Care) Region Urban Certification ISO 9001 (since 1998) ISO 14001 (since 1999) TPM 04 Indaiatuba Beginning of operation 1982 Products manufactured Powdered detergent (Brilhante, Omo and Surf) Employees 622 Region Industrial area Certification OHSAS 18001 (since 2004) 05 Pouso Alegre Beginning of operation 1975 Soy-based Products manufactured beverages (AdeS), Bouillons (Arisco and Knorr), Soups (Arisco and Knorr), Powdered seasoning (Knorr) Employees 1.020 Region Industrial area Certification TPM 06 Goiânia Beginning of operation 1969 Products manufactured Mayonnaise (Arisco and Hellmann´s), salad dressing (Hellmann´s), mustard (Arisco and Hellmann´s), seasoning in powder and paste form (Arisco), Carte D´Or desserts, Knorr Meu Arroz, Food Solutions (Knorr bouillons, Arisco bouillons, Knorr seasonings, hot sauces, Knorr Preparations), Knorr Meu Arroz Employees 1.004 Region Industrial area Certification TPM 07 Ipojuca Beginning of operation 2005 Products manufactured Softener (Comfort and Fofo), dental cream (Close Up and Pepsodent, for export only), spray deodorant (Rexona), shampoo, conditioner, combing cream (Seda), treatment cream (Seda), TRESsemmé line Employees 450 Region Industrial area Certification ISO 9001 (since 2003)TPM Pernambuco 07 Ipojuca 08 Garanhuns 09 Jaboatão dos Guararapes 10 Igarassu 08 Garanhuns Beginning of operation 1991 Products manufactured Maizena corn starch, corn flour with rice flour for porridge (Arrozina), corn starch based mixture for porridge (Cremogema), glucose syrup (Karo), toppings (Karo) Employees 185 Region Industrial area 09 Jaboatão dos Guararapes Beginning of operation 1999 Products manufactured Take Home (Kibon pots) and Impulse (Kibon lollypops) ice cream, cups (Kibon) Employees 1.025 Region Industrial area 10 Igarassu Beginning of operation 1997 Products manufactured Powdered detergent (Ala, Brilhante, OMO and Surf) Employees 337 Region Industrial area Certificação ISO 9001(since 2004)) minas gerais 05 Pouso Alegre goiás 06 Goiânia São Paulo 01 Vinhedo 02 Valinhos Sorvetes 03 Valinhos Cuidados Pessoais 04 Indaiatuba 1 Total Productive Maintenance. GRI 2.8 10 unilever brazil Sustainability Report 2012 back to summary profile Highlights in period Reducing Environmental Impact »» Unilever Brasil reduced water consumption by 12% in the course of the year. »» In solid waste management, we eliminated the disposal of solid waste in landfills at the Indaiatuba (SP), Goiânia (GO), Pouso Alegre (MG) and Vinhedo (SP) plants and exceeded the Kibon freezer replacement target for 2012. We ended the year with 100% of components being reused and/or recycled at the end of their working life. »» We formalized our support for debates on conscious consumption with the launch of the survey “What Brazilians think of the environment and sustainable consumption “, developed by the Environment Ministry in partnership with other companies. »» Leading Unilever executives from Brazil and overseas, including the global president Paul Polman and the president of the Brazilian operation, Fernando Fernandez, were present at Rio+20. At the conference they launched a public manifesto reaffirming the company’s positioning on sustainable development. Improving Health and Well-Being »» In Well-Being and Hygiene, we launched the Unilever Health Institute, a specialized division to drive closer company relations with consumers and specialists and professionals in the hygiene and health area. »» We progressed in sector dialogues on the reduction of sodium in food products, with the signature of an agreement between the Brazilian food industry association Abia and the Ministry of Health. The objective is to reduce the sodium content in seasonings, bouillons, breakfast cereals and vegetable margarines. The proposal is to remove 8,800 tonnes of sodium from these foods by 2020. »» We improved the nutritional profile of a number of food products, as well initiating sponsorship of projects such as Meu Prato Saudável. »» Throughout 2012, diverse actions revolving around Lifebuoy helped disseminate the importance of handwashing, reaching more than 5.7 million people in Brazil. The initiative involved Enhancing Livelihoods partnerships with the Pastoral da Criança and the Ministry of »» The Responsible Sourcing programme refined partner maHealth; it also mobilized employee volunteers in a major acnagement practices and a questionnaire distributed to our tion on October 15th, World Handwashing Day. almost 6 thousand suppliers addressed questions ranging from human rights to sustainability. »» The Integrare Programme saw a 29% increase in results compared with the previous year. »» In Brazil, we started buying sustainable sugar certificates, supporting the production of 3,200 tonnes of sugar with the acquisition of these credits. Targets and commitments Unilever is committed to monitoring the performance of all its global operations against the main targets set forth in the Sustainable Living Plan. Every year, company subsidiaries report on the actions taken to ensure fulfilment of the quantitative and qualitative targets established in the three pillars of the plan. The results are compiled in the Unilever Sustainable Living Plan Progress Report, published at the end of the first quarter containing data from the previous year. Available at http://www.unilever.com.br/sustentabilidade, the document presents the main targets and the current status for global operations. 11 unilever brazil Sustainability Report 2012 back to summary profile Awards in 2012 Once again we are one of the Exame Sustainability Guide model companies. See the awards the company received during the year As a reflex of our business chain and operational practices we received a series of important recognitions in 2012. In November, Unilever Brasil featured in the Exame magazine Exame Sustainability Guide as one of its 20 model companies, in which organizations are evaluated in terms of their capacity to promote more sustainable business models. The guide evaluates a number of areas such as use of natural resources, in which Unilever received a score of 9.4, far above the average score of 5.9. This was due to Unilever Brasil programs and targets for monitoring water, paper, electricity and fossil fuel consumption. In sustainability management, our score was 9.2 against a general average of 5.9, due to factors such as the Unilever sustainability committee. Also in 2012, Unilever was recognized by Abrafarma as one of the five best overall suppliers and the best in the hygiene and beauty market in Brazil. Below there is a complete list of the awards the company received in the period. GRI 2.10 Award Position Organization Exame Sustainability Guide Unilever in ranking of 20 model companies Exame Magazine Best Companies for Leadership Best company for leadership in Latin America Hay Group Best companies to work for Unilever in list of 150 companies Você S/A Young Brazilians' dream company Unilever among top ten companies Companhia de Talentos The Most Admired in Brazil Unilever in list of 10 most admired companies and outright winner in the Hygiene and Cleaning category Carta Capital Top of Mind OMO (for the 20th time, the brand with highest recall, together with Coca-Cola); the Rexona, Lux, Kibon, Seda and Datafolha Hellmann´s brands also figured in the ranking continues 12 back to summary profile unilever brazil Sustainability Report 2012 The Strongest Brand in Brazil OMO was elected the strongest brand Istoé Dinheiro Magazine The most sustainable companies according to the media Unilever was the winner in the Hygiene and Cleaning category Imprensa Magazine The companies that communicate best with journalists Unilever was the winner Negócios da Comunicação Magazine Partners of the Year Unilever was the winner Abrafarma Reclame Aqui – Service Quality Best service in Hygiene and Cleaning category Reclame Aqui Trade Awards 2012-2013 Unilever Dutchan Nova Beauty Award TRESemmé shampoo and conditioner for damaged hair among the products receiving best evaluation Nova Magazine New Achievements Award Unilever was the winner in the Master Diamond category Pague Menos Drugstores Unilever was among the group of 17 companies with Materiality in Brazil – How companies the best materiality processes in a survey assessing report material themes information provided in sustainability reports GRI 2.10 Unilever was among the Exame Guide top model companies in sustainability Report Sustentabilidade 13 unilever brazil brasil Sustainability relatório de sustentabilidade Report 2012 2012 Strategy estratégia back to summary Sustainable Living Plan 14 unilever brazil Sustainability Report 2012 Strategy back to summary The path to 2020 Growing the business while reducing our environmental impact is our key strategic objective for the coming years Unilever’s main strategic directive in Brazil and worldwide is to grow while reducing the environmental impact of our activities and operations by 2020. This ongoing challenge is also the mainspring of the Unilever Sustainable Living Plan, launched globally in 2010 and in place in the company’s subsidiaries worldwide, as well as the Unilever Brasil 2012 (UB2012) strategy, initiated in 2008. In practice, these policies indicate that we want to grow significantly in all our markets, based on innovation, diversification of our portfolio and the development of long-term relationships with suppliers, customers, institutions and employees. This business strategy also incorporates the need to develop closer links with consumers, strengthening the corporate brand and investing in innovations that will enable us to maintain our leadership in strategic - and increasingly competitive - segments. GRI 1.2 Every year Unilever renews 70% of its portfolio. We maintained our leadership in categories that are important for the Brazilian business, such as ice cream, deodorants, soy-based drinks and soap powder. In the latter, particularly worthy of note was Omo’s widespread diffusion throughout the country, in addition to the share obtained by products such as Ala in specific regions of the country. Another recent focus for investment which furthers our objective of allying business with best socio-environmental practice is the concentrated liquids segment, currently represented by the detergents OMO and Surf and the fabric softeners Fofo and Comfort. A trend in a number of countries, Unilever was responsible for introducing these products, which offer significant competitive advantages, such as price and raw materials saving in the manufacturing process through the use of less water and packaging material, as well as reduced transportation costs, into the Brazilian market. In 2012, we were the leader in the liquids category in Brazil. Liquids account for 13.5% of the detergents market– and the share of concentrates grew 77% compared with 2011 (read more in Reducing Environmental Impact ). Furthermore, these results underscore the connection between our sustainability strategies, the business and our consumers, who are encouraged to adopt more responsible habits by using products that have a lower environmental impact. 2012 saw the end of UB2012, a strategy launched in 2008 with the aim of making Unilever Brasil the company’s second largest operation within four years. Having accomplished the business target of the strategy, our mission now is to drive the other objectives outlined in UB2012 and supported by the Sustainable Living Plan throughout every stage of our activities, such as sustainable growth and cultural transformation in our operations, based on innovation and building solid relations with our stakeholders. 15 unilever brazil Sustainability Report 2012 »» »» »» »» »» Launch of UB2012 strategic plan, establishing targets and commitments on five fronts with the proposal to grow the business by 2012 while maintaining its environmental impact at the same level or lower than 2007. The UB2012 Journeys begin, aimed at aligning employees’ personal values with those of the company. To bring about the change in culture, special emphasis is placed on three points: connecting with business strategy, connecting with oneself and connecting with the team. Unilever Brasil initiates its greenhouse gas inventory based on GHG Protocol methodology, which is adopted internationally. Formation of the Sustainability Committee, charged with implementing socio-environmental governance at Unilever Brasil. Dialogues initiated with different stakeholders focused on engagement and enhancing business management. back to summary Strategy »» »» »» »» »» Globally Unilever announces its new corporate vision of doubling in size while reducing its environmental impact. Brazil launches a specific strategy to ensure greenhouse gas emissions in 2012 are at the same level or lower than 2007 in absolute terms. We sign the Walmart Sustainability Pact, which proposes improvements and partnerships to reduce retail trade impacts. We start engaging 60 suppliers in the development of joint solutions focused on sustainability. The company prepares its Materiality Matrix to identify the most relevant company themes from the perspective of its main stakeholders 16 unilever brazil Sustainability Report 2012 »» »» »» »» »» »» »» »» The Sustainability Committee is restructured to include leaders from the main company areas, with the establishment of socio-environmental commitments and targets. Launch of the Unilever Sustainable Living Plan, which defines global targets and commitments based on three pillars: Improving Health and Well-Being, Reducing Environmental Impact and Enhancing Livelihoods. Launch of Small Actions, Big Difference campaign, with the corporate brand engaging Brazilian consumers in the adoption of small actions that, together, can make a big difference. Beginning of For a Cleaner Planet programme, focused on innovations in the company’s powdered detergent and fabric softener brands, and the launch of liquid concentrated OMO. Unilever Brasil reduces energy consumption by 43%, water consumption by 37% and non-recyclable waste generation by 89% between 1995 and 2010. Lifebuoy’s social mission is launched in Brazil with partnerships to promote handwashing. Beginning of project to recycled deodorant aerosols with Pão de Açúcar chain. Unilever Brasil’s sustainability report is verified externally for the first time. back to summary Strategy »» »» »» »» »» The Sustainable Living Plan is disseminated within the company, reaching 91% of employees in Brazil. We start to map the impact company plants have on biodiversity and we join MEB (Business for the Conservation and Sustainable Use of Biodiversity), with targets and commitments for the following years. Launch of Responsible Sourcing Programme, enabling management of suppliers in line with socio-environmental criteria. For the fourth year running, the company meets its target of ending the year with an absolute volume of greenhouse gas emissions lower than 2007, while growing production. The company increases sustainable sourcing, acquiring 100% of its palm oil in Brazil from members of the RSPO (Roundtable on Sustainable Palm Oil), an international initiative promoting best practices in the sector. 17 unilever brazil Sustainability Report 2012 »» »» »» »» »» »» »» Strategy back to summary Unilever Brasil assumes leadership of the liquid products segment in Brazil, a market it helped consolidate in the country with its concentrated liquid detergents and softeners. The company’s revenues reach BRL 13.6 billion in the year, with an increase in share in critical sustainability-related segments, such as antibacterial soap and purifiers. Unilever eliminates waste disposal in landfills at its Goiânia, Indaiatuba, Vinhedo and Pouso Alegre plants, increasing recycling and composting. Eco-efficiency projects in Unilever plants and operations enable a 12% reduction in water consumption during the year. Unilever’s global president, Paul Polman, and its president in Brazil, Fernando Fernandez, take part in Rio+20 and launch a public manifesto reaffirming the company’s positioning on sustainability. Sector agreement between Abia and the Ministry of Health proposes a reduction of salt in food products with targets for 2020. The goal is to remove 8,800 tonnes of salt from seasonings, bouillons, cereals, and vegetable creams. In Brazil, Unilever initiates purchase of sustainable sugar certificates, acquiring 3,200 tonnes. 18 unilever brazil Sustainability Report 2012 Strategy back to summary Sustainable Living Plan Our strategy proposes socio-environmental targets and examines the entire product life cycle Last year was important for consolidating the Unilever Sustainable Living Plan as a reference and guide for the positioning of our business model and growth strategy. During the year, we reaffirmed the importance of the plan with a number of internal and external practices and initiatives. We strengthened the company’s governance structure through the Sustainability Committee; we addressed sustainability in our climate survey, directly impacting all of Unilever’s more than 13 thousand employees; with suppliers, we improved our monitoring and management systems, in addition to organizing engagement encounters and reinforcing programmes such as Responsible Sourcing (read more in Supplier Management); regarding customers, we ensured the maintenance of major partnerships, in particularly those involving best logistics and distribution practices for our products. Institutionally, we advanced in our dialogues with sector associations and government bodies. We had a significant participation in events such as the United Nations Conference on Sustainable Development (Rio+20) and reinforced partnerships GRI 2.1, 2.2, 4.16 to disseminate health, hygiene, environmental and other campaigns by means of our products and brands (read more in Governments and Institutions). In the community area, we progressed in mapping the stakeholders associated with Unilever plants, a stage which will provide support in managing impacts and represents a first step towards an effective dialogue with the communities surrounding our plants in the country (read more in Our Stakeholders). The plan directives In the Sustainable Living Plan, we have established targets related to the business and operations, such as reducing the content of saturated fat, sugar and sodium in our food products, encouraging a change in habits to improve quality of life, reducing emissions of pollutants, water consumption and solid waste generation in manufacturing operations, improving people ma- nagement, growing sustainably with our suppliers and promoting sustainable consumption. These directives are adapted to the reality of each country. In Brazil, our sustainability commitments had already been made public with the launch of the UB2012 strategy in 2008. However, the Sustainable Living Plan helped to further structure governance by bringing coordination under the Sustainability Committee. We organized our initiatives around three pillars – which are broken down into projects and targets for the plants, offices and other operating arms of the company (click here to see the complete version of the plan). In 2011, we also elaborated our Materiality Matrix, which identified the critical themes for the business and the different local realities (read more in Reporting Process). Having defined the management priorities, we established targets and an action plan overseen by the Sustainability Committee, the primary instance of governance in sustainability and composed of executives from different company areas to ensure that the plan’s targets are achieved. 19 unilever brazil Sustainability Report 2012 Corporate governance back to summary Spheres of decision-making Transparency, ethics and management practices Codes, principles and commitments 20 unilever brazil Sustainability Report 2012 back to summary Corporate governance Spheres of decision-making The governance structure in Brazil includes the Sustainability Committee, driving sustainability into overall business management Members of Executive Board »» »» »» »» »» »» Unilever Brasil, a subsidiary of the Unilever group, is a private company whose governance structure follows the directives laid down by its Anglo-Dutch mother company. As part of a group active in over 190 countries, with distinctly different businesses and operations, decision-making takes place on three levels: global, regional (in our case, Latin America) and local – which in Unilever designates its country operations. The level responsible for a decision varies according to the process. Major negotiations with suppliers, for instance, are conducted globally and regionally. Our plants in Brazil also report regionally, while some of the office areas report to the local structure. Our highest governance body in Brazil is the Executive Board, consisting of the president and eight vice presidents. In 2012, the post of Vice President of Corporate Communication, also responsible for coordination of the area in Latin America, was transferred to Argentina, but maintaining a report to the president of the Brazilian company, the Argentinean Fernando Fernandez, who has held this position since September 2011. GRI 2.6, 4.1, 4.2, 4.3, 4.5, 4.7, 4.9 Responsible for strategic decision making in the country, the board has no independent or non-executive members; neither is there an external board in our governance structure in Brazil. Support is provided for diverse processes through the constitution of management committees, which assist the executives in specific areas and cases – such as Sustainability and Crises. Selection and membership of senior management follows Unilever global guidelines and are based on overall experience. The development of our UB2012 strategy and the global implementation of the Sustainable Living Plan bolstered the inclusion of socio-environmental criteria in the company’s spheres of decision making. Consequently, appraisal of the performance of our leaders – managers, directors and vice presidents, for example – takes into account both sustainability and business targets (read more in Targets and Commitments). Each leader’s variable remuneration is defined by deliverables related to priority Unilever Brasil themes. In 2012, we maintained the target – applicable to some leaders – of publishing our GRI A+ checked Sustainability Report by the end of »» »» »» President VP Supply Chain * VP Sales* VP Finance* VP Human Resources VP Legal* VP Personal Care VP Home Care VP Foods and Refreshments * Positions also responsible for the area in Latin America the first quarter of 2012, as a tool for measuring commitment and progress in sustainability governance. Analysis of environmental performance, encompassing factors such as emissions, water consumption, waste and biodiversity, was maintained as a performance measure and rewarding for factory leaders; targets linked with the Sustainable Living Plan, such as Lifebuoy’s social mission and nutrition enhancement, for example, also impact performance appraisals for leaders. As a result of the reinforcement of a policy to eliminate excess and simplify processes, material waste reduction targets were also established in our units in 2012. 21 unilever brazil Sustainability Report 2012 Sustainability Committee The Sustainability Committee, which reports to the Executive Board, was restructured in 2010 to strengthen governance in this area and incorporate sustainability into decision making. The group’s objective is to ensure the dissemination of the global Sustainable Living Plan throughout the company, as well as to address and track sustainability targets and indicators. The committee is also an internal and external communication channel for sustainability-related questions and develops communication and engagement plans for key stakeholders . The committee members are leaders from diverse company areas – Legal, Procurement, Media, Sales, Safety, Health and Environment (SHE), Supply Chain, Consumer Research, Development and Innovation, Finance, Human Resources, Marketing and Sustainability. This diversified make-up is a means of addressing the challenges inherent to the nature of the operation, such as environmental management practices in the plants, eco-efficiency in logistics, responsible communication and supplier management. Two vice presidents from the Executive Board – Supply Chain and Sales – are also members of the group, to ensure that its decisions are transmitted to the Board. Committee members do not receive additional remuneration for participating in the meetings. The committee meets monthly, and the Sustainability area and some committee members also participate in the Executive Board meetings, as required. GRI 4.1, 4.5; 4.7; 4.9, 4.10 back to summary Corporate governance Governance has progressed in the socio-environmental area: comprising various company leaders, the Sustainability Committee meets monthly to discuss and determine relevant policy and practices. Crisis Committee The oldest management support body, the Crisis Committee is convened when potential business risks are identified. Led by the External Communication area, the group engages executives from key areas, such as Legal, SHE, Quality and Supply Chain, to discuss critical issues, minimize impacts and propose corrective actions. Other areas which may also be convened depending on the specific nature of the problem, include Marketing, Sales, Consumer Service (SAC), Development and Innovation, Sustainability and Human Resources. When an issue has been analysed, a summary is sent to the Board and the affected areas in Unilever Brasil. In addition to the corporate team, we have crisis committees in all our operations and plants. In this case, the groups, comprising managers and directors from all areas, address local problems. When an issue is not resolved by consensus, it is elevated to the central committee. 22 unilever brazil Sustainability Report 2012 Corporate governance Transparency, ethics and management practices Mechanisms and codes to ensure global standards of conduct in all company operations Unilever Brasil has a series of tools, including codes, policies, training programmes and communication channels, to ensure its governance structure functions in accordance with global Unilever standards of ethics and conduct. In Brazil, we also apply a number of instruments designed to reinforce leadership, such as performance appraisal, as well as mechanisms designed to prevent conflicts of interest and corruption in the operation. In addition to being selected based on their competencies and experience, our executives are appraised along the same lines as the other hierarchical levels at Unilever Brasil. One of the performance targets might be the result of the Global People Survey (GPS, an organizational climate survey), held every two years. This addresses areas such as decision-making, management capacity and respect for company principles. Filled out by all employees, the questionnaire impacts executive remuneration, given that team satisfaction is their direct responsibility. The last survey was held in 2012, with the participation of 87% of Unilever Brasil’s employees. GRI 4.6, SO3, DMA SO Corruption Regarding prevention of corruption and questions involving conflicts of interest, bribery, ethics and misconduct, we have the Code of Business Principles which delineates company practice (read more in Codes, Principles and Commitments), including senior management decision-making, contracts with partners and team responsibilities. There is a committee which analyses any reports of inappropriate behaviour and breaches of these guidelines within the company. All cases involving breaches of the code are investigated and may result in disciplinary measures, including dismissal. In Brazil, we conduct four anti-corruption training sessions. One is for all administrative employees and includes contents on anti-competitive behaviour, in alignment with the Code of Business Principle. A total of 957 hours of this course took place during the year. There were 3,556 hours of training in another module specifically addressing corruption. This was taken by 100% of the eligible employees, 98% of whom were managers and 26.2% below management level. The Supply and Sales areas, which are more critical since they invol- back to summary Unilever Brasil has a series of tools, including codes, policies, training programmes and communication channels, to ensure its governance structure functions in accordance with global Unilever standards of ethics and conduct. ve more intense contact with outsiders, received two specific modules of this training, which again was taken by 100% of the eligible employees. We do not have anti-corruption training for suppliers, but all our contracts require that partners sign a term of awareness of our Code of Business Principles, which addresses issues such as corruption, human rights and working conditions. During the year, all employees also participated in online training which addressed a series of questions, including human rights and corruption. Unilever Brasil has a hotline through which reports of breaches or suspected breaches of conduct may be made anonymously. These are investigated by the Business Principles Committee, comprising professionals from diverse company areas, such as Legal and Human Resources (read more in Codes, prin- 23 unilever brazil Sustainability Report 2012 Corporate governance ciples and commitments). There were no specific reports related to corruption in 2012 (see more here). We do not conduct formal corruption and fraud-related risk assessments in our operations; however, we do carry out annual studies and reviews of our internal controls covering all the operations in the country, in compliance with the Sarbanes-Oxley Law. This review is assessed by an independent audit company. in BIS, the company’s internal electronic newsletter. A survey conducted with some of the participants to evaluate the effectiveness of the tools showed an approval rate of over 90% (read more in People). Other tools enabling employee participation include the internal accident prevention committees (Cipa in the Portuguese acronym), drawn from multiple levels of the company to discuss occupational safety issues; and the Open Meeting, a face-to-face encounter promoted every six months by the president to present employees with information on relevant strategy and performance data. In function of its legal status, Unilever Brasil does not have shareholders or investors. However, if investors have any doubts or recommendations to make about business in Brazil, these may be channelled to senior global management – who will analyse them and take action accordingly. Dialogue with management In 2012, Unilever Brasil enhanced communication with its employees. Two new channels were launched to facilitate employee access to the company’s results. The president initiated the production of regular videos in which he communicates the main accomplishments for each quarter. The videos are a much more dynamic and accessible substitute for written communications. Employee surveys conducted after the exhibition of these contents show that more than 95% agree that having access to this kind of information in video facilitates transmission and understanding of messages. A new channel enabling direct dialogue between employees and the president was also instituted. This is essentially a virtual chat room in which the president answers questions. Two of these events were held in 2012, with more than 60% of the participants coming from the office teams and around 23% from the plants. The main questions and answers were published GRI 4.4, SO2, SO4, DMA LA Labor/Management relations back to summary In 2012, we launched interactive chats and videos with the president to forge closer ties between employees and senior management. 24 unilever brazil Sustainability Report 2012 Corporate governance Codes, principles and commitments Human rights, commercial practices and community relations are some of the questions prioritised and formalised in our guidance documents All company internal and external practices are managed in accordance with the Code of Business Principles, a document which sets forth company values, perceptions and beliefs concerning honesty, integrity, ethics, respect, human and social rights and Brazilian legislation. More than just providing guidance, the Code ensures transparent communication in our governance model and is the main tool to guarantee that Unilever Brasil acts in an ethical and socially and environmentally responsible fashion throughout the business chain. In addition to making the content available to employees on the intranet, the company carries out annual training and refresher courses on the Code for all employees, including senior management. All new hires receive specific classroom training on the document as part of their induction module. In 2012, 3,438 hours of online training in the Code of Business Principles were given, with a focus on human rights policies and procedures relevant to the operation; sales staff GRI 4.8, HR3, HR4 and promoters received 1,751 hours of classroom training in the same area. The dissemination and application of the directives set forth in the document are overseen by the Code of Business Principles Committee, which is in turn associated with a global committee. In addition to receiving reports on management practice and employee behaviour, the group is responsible for monitoring compliance with the code, in which it is supported by senior managers from the diverse areas. Consisting of the president of Unilever Brasil and the vice presidents of the Human Resources, Finance and Legal areas, the committee monitors cases on a monthly basis via a system managed by the Risk Management area with support from the Legal area. Other company areas may be involved depending on the nature and dimension of the case. Each case reported is analysed without revealing the identity of the person reporting it. Punitive measures (which may back to summary To ensure ethical conduct in our operations, the company organised more than 3,400 hours of online training in the Code of Business Principles. include dismissal) are only taken after the incident has been recorded formally – via a conversation with the relevant leader or committee members or the Human Resources area. Reports may be made in two ways. In the latter case: locally via telephone, email or mail, or globally, via the Code Direct Line, which is answered in London and receives 90% of the reports made. In 2012, the company received 17 reports related to possible cases of discrimination, harassment (racial, gender, age etc) and bullying. None of these cases were proven and none resulted in legal action. During the year, there were also 110 reports through Code-related channels. Three of these were deemed valid, and two resulted in administrative sanctions. 25 unilever brazil Sustainability Report 2012 Unilever Code of Business Principles Corporate governance Consumers Unilever is committed to providing branded products and Standard of conduct services which consistently offer value in terms of price and We conduct our operations with honesty, integrity and open- quality, and which are safe for their intended use. Products and ness, and with respect for the human rights and interests of our services will be accurately and properly labelled, advertised employees. We shall similarly respect the legitimate interests and communicated. of those with whom we have relationships. Shareholders Obeying the law Unilever will conduct its operations in accordance with internaUnilever companies and our employees are required to comply tionally accepted principles of good corporate governance. We will with the laws and regulations of the countries in which we operate. provide timely, regular and reliable information on our activities, structure, financial situation and performance to all shareholders. Employees Unilever is committed to diversity in a working environment Business partners where there is mutual trust and respect and where everyone feels Unilever is committed to establishing mutually beneficial responsible for the performance and reputation of our company. relations with our suppliers, customers and business partners. We will recruit, employ and promote employees on the sole In our business dealings we expect our partners to adhere to basis of the qualifications and abilities needed for the work to business principles consistent with our own. be performed. We are committed to safe and healthy working conditions for Community involvement all employees. We will not use any form of forced, compulsory Unilever strives to be a trusted corporate citizen and, as an or child labour. integral part of society, to fulfil our responsibilities to the socieWe are committed to working with employees to develop ties and communities in which we operate. and enhance each individual’s skills and capabilities. We respect the dignity of the individual and the right of employees to Public activities freedom of association. We will maintain good communications Unilever companies are encouraged to promote and defend with employees through company based information and contheir legitimate business interests. Unilever will co-operate with governments and other orgasultation procedures. GRI GRI 4.8 back to summary nisations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect legitimate business interests. Unilever neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests. The environment Unilever is committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustainable business. Unilever will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. Innovation In our scientific innovation to meet consumer needs we will respect the concerns of our consumers and of society. We will work on the basis of sound science, applying rigorous standards of product safety. Competition Unilever believes in vigorous yet fair competition and supports the development of appropriate competition laws. Unilever companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations. 26 unilever brazil Sustainability Report 2012 Corporate governance Business integrity Unilever does not give or receive, whether directly or indirectly, bribes or other improper advantages for business or financial gain. No employee may offer, give or receive any gift or payment which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected immediately and reported to management. Unilever accounting records and supporting documents must accurately describe and reflect the nature of the underlying transactions. No undisclosed or unrecorded account, fund or asset will be established or maintained. The Committee presents quarterly updates to the Corporate Responsibility and Reputation and the Audit Committee, half-yearly reports to the Unilever Executive and an annual report to the Board. Day to day responsibility is delegated to all senior management of the regions, categories, functions, and operating companies. They are responsible for implementing these principles, if necessary through more detailed guidance tailored to local needs, and are supported in this by Regional Code Committees comprising the Regional General Counsel together with representatives from all relevant functions and categories. Assurance of compliance is given and monitored each year. Compliance with the Code is subject to review by the Board supported by the Corporate Responsibility and Reputation Committee and for financial and accounting issues the Audit Committee. Any breaches of the Code must be reported in accordance with the procedures specified by the Chief Legal Officer. The Board of Unilever will not criticise management for any loss of business resulting from adherence to these principles and other mandatory policies and instructions. The Board of Unilever expects employees to bring to their attention, or to that of senior management, any breach or suspected breach of these principles. Provision has been made for employees to be able to report in confidence and no employee will suffer as a consequence of doing so. Conflicts of interests All Unilever employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. Unilever employees must not seek gain for themselves or others through misuse of their positions. Compliance - monitoring - reports Compliance with these principles is an essential element in our business success. The Unilever Board is responsible for ensuring these principles are applied throughout Unilever. The Chief Executive Officer is responsible for implementing these principles and is supported in this by the Corporate Code Committee chaired by the Chief Legal Officer. Members of the Committee are the Group Secretary, the Chief Auditor, the Senior Vice President HR and the Senior Vice President Communications. The Global Code Officer is Secretary to the Committee. GRI 4.8, HR3, HR4, DMA EN, SO e PR Compliance, DMA SO Anti-competitive behavior back to summary 27 unilever brazil Sustainability Report 2012 back to summary Corporate governance All company practices are managed in accordance with the Code of Business Principles which sets forth company values, perceptions and beliefs. 28 unilever brazil Sustainability Report 2012 Our commitments On a global and local level, we are signatories to pacts and initiatives linked with our business segments and to socio-environmental guidelines. Over recent years, we have increased our participation in discussions on sustainable supply chains, nutrition enhancement, combating inequality and promoting health and quality of life. In Brazil, we participate in a series of consumer goods industry sector initiatives. Below there follows a list of the commitments and programmes to which we are signatories: »» »» »» Global United Nations Organization Global Pact: we are committed globally to the ten pact principles in our operations, making an annual report on our progress towards achievement of these goals. Roundtable on Sustainable Palm Oil: its main objective is to “promote growth in the use of sustainable palm oil through cooperation in the supply chain and open dialogue between stakeholders”. This forum defines production targets based on sustainable processes for palm oil. The commitment is part of Unilever’s Global Sustainable Living Plan, with a target of obtaining 100% of our raw materials from certified sustainable sources by 2015. Roundtable on Responsible Soy – RTRS: this is a multi-stakeholder initiative aimed at facilitating global dialogue on economically viable, socially equitable and environ- GRI 4.8, 4.12, EC9 back to summary Corporate governance »» »» »» »» »» »» »» mentally sound soy production. The RTRS gives stakeholders (producers, social organizations, companies and the industry) the opportunity to develop global solutions for responsible soy production. This commitment is also part of Unilever’s Global Sustainable Living Plan, one of whose targets is to source all soy grain and soy oil sustainably by 2014 and 2020, respectively. This project aims to help producers worldwide to meet growing consumer demand for soy that does not contribute to the loss of biodiversity or to greenhouse gas (GHG) emissions. Greenhouse Gas Protocol (GHG Protocol): we use this international protocol to measure progress towards achieving our UB2012 target of 2012 greenhouse gas emissions equal to or lower than the 2007 figure. World Heart Federation: promotes improved heart health. Global Alliance for Improved Nutrition: works towards the co-creation of new approaches to fortifying nutrients. FDI World Dental Federation: promotes improved oral health. Global Public-Private Partnership for Handwashing: provides incentives for handwashing with toilet soap. Unicef: selected in 2011 as a global partner to improve sanitation in developing countries through the UNICEF Community Approaches to Total Sanitation (“CATS”) initiative, a behavioural change programme that promotes good hygiene habits, drives demand for access to sanitation facilities and generates awareness about the sanitation crisis. Save the Children: selected in 2011 as a global partner to improve living conditions for children worldwide by improving »» »» »» »» access to health professionals and vaccinations that save lives and ensure that more children and mothers are reached by high impact health and nutrition programs. Oxfam: selected in 2011 as a global partner to enhance lives worldwide through programmes to train individuals and provide adequate nutrition, as well as clean drinking water. PSI: selected in 2011 as a global partner to improve family and children’s health through behavioural change interventions focused on handwashing and access to drinking water and sanitation. WFP – World Food Program: selected in 2011 as a global partner in the Laser Beam project, a public-private partnership aimed at creating a scalable, sustainable model to improve health, nutrition and means of subsistence in Bangladesh and Indonesia. World Economic Forum: we are one of the main leaders of the Global Forum, held every January in Europe. 29 unilever brazil Sustainability Report 2012 »» »» »» »» »» »» »» Local Public Commitment for Responsible Advertising: a voluntary document produced by major food and beverages companies in Brazil aimed at promoting debate on responsibility and ethics in communications for children. Brazilian GHG Protocol Programme: to conduct our greenhouse gas (GHG) emissions inventory we adopted the GHG Protocol methodology, currently the most widely used worldwide, with some adaptations to the Brazilian reality. Business for the Conservation and Sustainable Use of Biodiversity (MEB): aimed at leading business sector participation in the construction of the Brazilian plan to conserve and promote the sustainable use of biodiversity by 2020, with targets in accordance with the country’s reality. Walmart Sustainability Pact: we are signatories of this commitment designed to promote sustainability in the supply chain Child Friendly Company: we participate in this programme created by the Fundação Abrinq in 1995 to encourage companies to promote the rights promulgated in the Children’s and Adolescents’ Statute CENAIDS (National Business Council for the Prevention of HIV/ AIDS): we are a founding member of CENAIDS, a council whose mission is to mobilize companies to counter the HIV/AIDS epidemic, reinforcing corporate social responsibility and sustainability. Conscious Cleaning Movement: a project developed by the Brazilian Cleaning Products Industry Association Abipla to promote sustainability in the Cleaning Products sector. GRI 4.12 Corporate governance »» »» »» »» Movimento +Mulher 360 (Business for the Economic Development of Women): aligned with the UNO’s Women’s Empowerment Principles, the movement proposes a 360 degree vision of female empowerment in all the roles women exercise. It also proposes gender balance and a wide-ranging approach to enterprise in all spheres of business activity. Voluntary initiative with the Environment Ministry: signed in November 2011 as part of the Environment Ministry’s Action Plan for Sustainable Production and Consumption (PPCS), in the presence of the Environment minister Izabella Teixeira. The initiative is aimed at encouraging companies and sectors to substitute the refrigerant gas used in commercial freezers with gases that have a lower impact on global warming. Pacto na Mão Certa (Right Side of the Road Pact): an initiative from the NGO Childhood Brasil aimed at mobilising governments, companies and third sector organizations to more effectively combat the exploitation of children and adolescents on Brazilian highways. Network of Brazilian Female Leaders for Sustainability (Rede de Mulheres Brasileiras Líderes pela Sustentabilidade): the objective is to attract and mobilize female leaders in private and public companies, government bodies, multilateral and non-governmental organizations around sustainability-related questions. back to summary Our involvement in sector movements and commitments is aligned with the themes we believe are priorities for the industry in the country. 30 unilever brazil Sustainability Report 2012 our stakeholders Consumers Social investment Customers Governments and institutions Communities sector practices back to summary 31 unilever brazil Sustainability Report 2012 back to summary our stakeholders Looking at the value chain Over the last five years we have invested in improving dialogue with diverse stakeholders in Brazil, but we still face the challenge of engaging all our units and operations in this proposal The need to ally business activity with responsible practice is a question that affects the entire value chain. In the last five years we have initiated dialogues and undertaken engagement measures and partnerships with our different groups of strategic stakeholders in Brazil, involving employees, consumers, customers, suppliers, surrounding communities, academics and government institutions in the process. By analysing the entire product life cycle, from the research and development phase to post-consumption, we have identified the main stakeholders exerting influence on and impacted by Unilever Brasil’s businesses at each stage of this cycle. The first survey, conducted in 2008, determined three priority stakeholder groups for that moment: employees, suppliers and customers. We then promoted an initiative aimed at employees, that was later reinforced by the launch of the Unilever Sustainable Living Plan. With our suppliers we have worked on reducing production and value chain impacts. And, with support from our customers, we have examined the need to reduce our emissions footprint, particularly in the logistics area, and to take actions that extend beyond the walls of our plants and offices. GRI 4.14, 4.15, 4.16, 4.17 Initiatives have also been undertaken with other stakeholders, such as governments, academics and the communities around our plants. Regarding consumers, we have maintained our strategy of promoting education for conscious consumption through campaigns supported by our brands and products (read more in Consumers). We have continued our partnerships with government bodies, supporting Ministry of Health and Ministry of the Environment campaigns, with mutually beneficial outcomes for all parties (read more in Governments and Institutions). With a view to promoting accountability and engaging our stakeholders, in 2012 we organized the event “Global Sustainable Living Plan - One year on “. This was held in 25 countries, including Brazil, and consisted essentially of a progress report one year after the inception of the Unilever Sustainable Living Plan (see the complete publication here,). This involved the exposition and discussion of the results and progress towards our sustainability targets, with the participation of numerous company stakeholders either as speakers or spectators. A challenge for the future In 2011, we reviewed our Materiality Matrix, which brings together and systematizes priority themes in company management from the standpoint of our stakeholders in Brazil. This was done by means of personal and telephone interviews with more than 50 people, including specialists, suppliers, representatives of NGOs and employees. The exercise resulted in the identification of eight critical issues for Unilever Brasil (read more in Reporting Process). This process was the first steps towards enhancing dialogue with our stakeholders. The work continued in 2012 with a pilot project at four plants aimed at determining who the main stakeholders are in these locations. The project should serve as a basis for developing engagement actions over the coming years, in line with our sustainability strategy. 32 unilever brazil Sustainability Report 2012 our stakeholders back to summary Consumers Direct line Relationship with the consumer occurs on a number of levels and for diverse reasons – ranging from conscious consumption to product improvement The relations we establish with consumers provide us with information that is fundamental for enhancing the quality of our products and operations in the country. We have diverse service and relationship channels with these stakeholders, supported by a series of documents and internal and external codes; we conduct research to identify trends and behaviours and to address a question which is essential for the company’s business both in Brazil and worldwide: education for conscious consumption. Unilever has a team that manages and analyses the contacts occurring throughout the different channels, enabling the company to identify common complaints and doubts, collect opinions and identify improvements to our brands and products. Two policies underpin our practices involving consumers: the Code of Business Principles and the Consumer Defence Code. We also observe a global company privacy policy, as well as our Complaint Treatment Policy, which has guided relations with consumers and customers since 2008. The consumer service team consists of more than 120 representatives from a third-party company, in addition to a partner GRI 4.17 that provides logistics and specialized consulting services, with a further 153 employees. The relationship area is coordinated and managed by a team of 15 Unilever Brasil employees, who also deal directly with more complex cases that cannot be worked out through conventional channels. The main channel between consumers and Unilever Brasil is the Consumer Service area or SAC in the Portuguese acronym, with contacts occurring by telephone, email or mail. We also have fanpages and profiles for our brands in networks such as Facebook and Twitter, which have become an important channel for dialogue in recent years. In 2012, we developed an online tool that addresses consumers’ main questions. This enables 24-hour self-service on the websites of our leading brands. Today, new consumers account for around 84% of the contacts, which poses the challenge of understanding and working based on quite distinct doubts and considerations. We also have a direct communication tool, the Vital portal, part of the relationship programme bearing the same name. The channel offers texts with recipes, information, tips on well-be- ing and healthy habits and guidance on the use of our products. Readers are also invited to participate in activities promoted in our interactive spaces, such as the Gourmet Studio, which enable trial of our products and contact between Unilever professionals, consumers and customers (read more in Improving Health and Well-Being). One of the main functions of the Consumer Service, together with the Consumer Market Insights (CMI) team, is to gather information that will permit the company to understand the expectations and needs of the people who use our brands and products. The area prepares weekly and monthly reports based on a statistical tool which provides us with a basis for promoting improvements, new communication and marketing strategies, innovations and commercial measures. Other company areas such as Media, Research and Development, Quality and Logistics are also involved in this process. As practical examples, recently we made changes to our Lux and Dove liquid soaps based on contacts with consumers. We also modified the label of Seda treatment creams as a result of complaints about legibility. To improve consumer insight, in 2012 the SAC area conducted an analysis of more than 1,200 contacts made through our channels to identify what the terms happiness and beauty mean to 33 unilever brazil Sustainability Report 2012 our stakeholders consumers. This provided important inputs for our categories and brands. Requests for information on how to use products are the main reason for consumer contacts. Products are exchanged within 2 working days in the state capitals and five days in other locations. In these cases, the material is collected and sent to the plant where it was manufactured for technical analysis. The result is made available in at most 30 days. The response time for email contacts is up to 72 hours. In the event of an alleged product-related allergy or reaction, the consumer is directed to a specialized medical consultancy. Due to the use of third-party employees, maintaining Unilever relationship management and quality standards can be challenging. For this reason, we invest in training to integrate these professionals into the company’s culture. As a result, the staff turnover rate in the consumer service operation is around 5%, half the market average. In 2012, we launched the SAC Academy, a programme which centralizes the training cycle on company brands, categories and products for the third-party consumer service teams. The 23-hour programme addresses topics considered essential to prepare the SAC professionals to deal with consumers and clarify their doubts. One measure during the year was the development of a dedicated team to work on contacts concerning the Pureit purifier. In the development of the courses and modules we draw on specialized consultancies in dermatology for hair and skin care, for example, and also address relevant themes such as the Sustainable Living Plan and the Consumer Defence Code. All staff are familiar with the Unilever portfolio and receive advance notifica- tion of product launches and innovations. In 2012, we established an award in conjunction with the consumer service provider to recognize the best professionals in the team. We also conducted a training programme to analyse the results achieved during the year and discuss possible improvements to the service. In 2012, Unilever Brasil also initiated a partnership with Senai, the national industrial training service, to carry out studies on complaints concerning clothing stains made by consumers via the SAC. In this work, we will perform a more detailed analysis to identify the extent to which our products interfere in the occurrence of stains and their relationship with other elements - such as the washing process, dosage or combined use with other products. GRI PR5 Service satisfaction During 2012, we reduced the consumer service team due to a decrease in the number of contacts over the last two years. At the same time, we maintained satisfaction rates and obtained significant improvements in attendance via email. This is a channel the company has invested in over recent years, considering it an important tool for positioning Unilever and providing consumers with an objective response to their doubts and considerations. During the year, there were 722,524 contacts, more than 50% via email, 38% via telephone and 5% via social networks. Of these, 220,000 generated after-call work. Our contract with the third-party SAC provider establishes minimum satisfaction rates for contacts: 85%, for telephone and back to summary mail; and 70% for email. In 2012, these figures remained stable compared with the previous year, with an overall average of 80%. The email contact satisfaction rate was 75% for the year (proportion of consumers rating the service with a score of 8, 9 or 10). The rate was 96% for telephone contacts. Presence on the web A swift, informed response is important in managing and preventing risks to the image of our brands. To this end, over the last five years we have reinforced our presence on social networks and relationship sites, with profiles, accounts and fanpages on Twitter and Facebook. These are monitored and managed by a partnering company, under the coordination of our corporate team. Our presence in digital media currently includes a number of Facebook pages and Twitter accounts (see list below), always oriented to messages from our 25 brands, including the corporate brand. This is a strategic instrument for communicating with our consumers, working on diverse aspects of the products and responding to criticisms and thoughts about their composition, application and action. Today, social networks account for 5% of total consumer contacts and showed an increase over 2011, confirming an already apparent trend. As a rule, consumers making contact via these new media receive the same treatment as SAC users. But, in function of the nature and reach of these vehicles, our virtual channels permit specific questioning which may produce a rapid and widespread repercussion and require a careful and considered response. 34 unilever brazil Sustainability Report 2012 In 2012, our fanpages received numerous comments on company sponsorship of reality shows and international sports celebrities, such as the football player Neymar. Another contact that provoked considerable repercussion in mid-November involved an AdeS consumer. Based on the analytical report prepared by our plant in Pouso Alegre (MG), we responded that the defect was not related to problems in manufacturing quality, having probably been caused by a broken seal or by the product remaining in the package a long time after having been opened. There was also a resumption of contacts questioning our animal testing practices. We reiterated our positioning that in Brazil and most of the countries in which Unilever operates, we do not carry out tests on animals. This only happens in countries where it is required by local legislation and where there is no safe alternative. Consumer research The consumer research area – Consumer Market Insights (CMI) – is charged with analysing trends, behaviours, perceptions and the consumption habits of the people who use our products. As in other Unilever areas, there are local (Brazil), regional (Latin America) and global teams responsible for developing solutions and providing inputs for specific innovations for each market and region, in addition to monitoring our brands and their positioning. The Brazilian CMI team works in partnership with the SAC based on the Strategic Understanding Plan, which provides a framework for understanding the consumer market. The area also carries out GRI PR5 back to summary our stakeholders In recent years we have increased our presence in social media and relationship sites with profiles, accounts and fanpages that transmit messages from our brands qualitative and quantitative research with consumers of our food, beverage, ice cream, personal care and cleaning product brands. This enables the company to identify business opportunities by category, region and audience, in addition to anticipating changes in consumption habits for innovation development. Research work is conducted in diverse locations, including points of sale, the Gourmet Studio, the Customer Innovation and Insight Centre (CiiC) and the homes of consumers who are willing to collaborate with us. We also organize activities such as Consumer Week, inviting people to participate in diverse activities and discussions. On a national level, our main tools are retail audits, household panels and monitoring communication. We also undertake isolated studies in partnership with other companies to analyse consumption habits, regions and specific Virtual presence Twitter profiles: twitter.com/axebr twitter.com/Ades_Brasil twitter.com/beceloficial twitter.com/ShampooClear twitter.com/Dove_Brasil twitter.com/hellmannsbrasil twitter.com/kibonbr twitter.com/knorrbrasil twitter.com/LifebuoyBR twitter.com/Omobrasil twitter.com/rexonamen twitter.com/rxt_oficial twitter.com/rexonawomen twitter.com/UnileverBrasil twitter.com/SedaOficial twitter.com/KnorrBrasil Facebook Fanpages: www.facebook.com/adesbrasil www.facebook.com/axebr www.facebook.com/Becelbr www.facebook.com/BrilhanteBrasil www.facebook.com/clearanticaspa www.facebook.com/closeupbrasil www.facebook.com/mundodecomfort www.facebook.com/dove www.facebook.com/hellmannsbrasil www.facebook.com/kibonbr www.facebook.com/CompromissoLifebuoy www.facebook.com/LuxBrasil www.facebook.com/omobrasil www.facebook.com/rexonawomenbr www.facebook.com/rexonamenbr www.facebook.com/SedaOficial www.facebook.com/desafiopureit www.facebook.com/FofoBrasil www.facebook.com/Fruttarebr www.facebook.com/tresemmebr www.facebook.com/KnorrBrasil?ref=ts&fref=ts www.facebook.com/Magnum?ref=ts&fref=ts www.facebook.com/RexonaTeensBr www.facebook.com/unilever 35 unilever brazil Sustainability Report 2012 our stakeholders market segments. In 2012, for example, we initiated a study to assess the strength of the Brazilian liquid products markets, in view of our investment in concentrated cleaning products. Some recent Unilever innovations are the result of actions focused on consumer understanding. The launch of the Meu Arroz product line, for example, occurred after a study in which we identified lack of time, cooking rice on a daily basis and the use of instant seasonings (such as bouillons) as a constant for Brazilian consumers. The fanpage of the Small Actions Big Difference campaign launched in 2010 to sensitize and inspire people to take small actions which, together, may make a big difference, had more than 200,000 fans by December 2012. This concept was so successful that it was gradually incorporated into Unilever’s global strategy and positioning in the course of 2012. Another action front consists of partnerships with the Ministry of Health to include messages on good hygiene, health and eating habits on our product packaging (read more in Governments and Institutions). This is particularly the case with products having social attributes – such as Lifebuoy and Pureit – or nutritional ones, the case of AdeS. We also collaborate with NGOs and customers, who have the power to multiply our messages to a wider audience. Two examples are the company’s partnerships with the Instituto Akatu in diverse projects revolving around this theme, and initiatives with some customers that underscore the importance of products that provoke a lower environmental impact. Education for conscious consumption Conscious consumption is a critical theme for the consumer goods industry and a priority for the company. It is highlighted in our Materiality Matrix and is one of the directives of the Sustainable Living Plan. Global Unilever studies show that we need to act at all stages of the product life cycle to meet the targets we have set. This work indicates that around 68% of the greenhouse gas emissions from some of our products are associated with the usage stage. This is due mainly to the need to heat water to wash clothes, a common practice in developed countries, to cook and also to bathe. For this reason, we strive to support consumers through communication on diverse fronts, alerting them of the environmental implications of the usage and the post-consumption impacts of certain products, in addition to benefits in terms of health, well-being and quality of life. back to summary 36 unilever brazil Sustainability Report 2012 our stakeholders back to summary Customers Heading in the same direction We use our presence at more than 400 thousand points of sale to engage partners in sustainability projects Unilever products are commercialized in more than 400,000 points of sale all over Brazil, including supermarkets, drugstores, neighbourhood stores, among others. This is a robust customer network, which offers facilities and poses challenges, requiring a joint agenda to minimize impacts and optimize processes. At Unilever, customer relations are conducted by some four thousand people, split between the commercial teams (responsible for capturing and communicating with customers) and employees who work at the point of sale (engaged in promotional activities and orienting shop staff and consumers). Since the implantation of the Sustainable Living Plan, we have stepped up the communication of our values and business culture throughout the customer chain by means of Joint Sustainability Plans (JSP). These are aimed at developing partnerships and implementing actions that offer environmental and economic benefits for both parties. Measures include emission reductions in the supply chain through projects such as fleet sharing and cargo optimization (read more in the box). Our main achievement in this area in 2012 was the signature of a business plan with the Pão de Açúcar Group led by the Logistics and Sales area. We mapped the emissions footprint of our processes and commercial flows, from transportation between Unilever plants and distribution centres and then on to the customer’s distribution centres and sales outlets. Applying data from our 2011 emissions inventory, we identified a significant volume of emissions on routes between the distribution centres and sales outlets. With this plan, we agreed to continue and expand initiatives to reduce emissions and logistics costs. During 2012, we also tested a project to optimize cargos by including pallets with different product categories in trucks transporting our products to customer distribution centres. In the Northeast, we initiated the application of a similar system aimed at improving truck occupancy rates, a practice hitherto used only in the state of São Paulo. We organized an event at the CiiC for one of our largest customers, from the state of Pará, to present our Sustainable Living Plan and suggest the adoption of joint eco-efficiency projects. As a result, this partner voluntarily produced pamphlets on water economy for its customers and organized a promotion of OMO liquid concentrate. In 2012, we also maintained ongoing projects with our larger customers, such as the Pão de Açúcar Unilever recycling station programme, which has been in place for 11 years (read more in Waste) and the Sustainability Pact signed with Walmart in 2009. 37 unilever brazil Sustainability Report 2012 our stakeholders Customer Insight and Innovation Centre (CiiC) activities and product rearrangement. A total of 126 visits to the space were organized in 2012, comprehending major retailers, drugstore and convenience store chains and regional wholesale partners. Built with recyclable or recycled materials and to high standards of energy and water efficiency, the CiiC is also used to train senior executives and to test new store management and layout tools and materials. Since many of the procedures are performed digitally, the company has eliminated the use of paper and waste generation. The Customer Insight and Innovation Centre (CiiC) was inaugurated in 2010 in the city of São Paulo with a view to providing solutions and testing the efficiency of our product communication. Unilever’s first interactive space for customers in Latin America, the CiiC enables us to meet with partners to analyse and modify business and communication strategies by means of point of sale studies and simulations. During the year, representatives from hypermarkets, supermarkets, drugstores, small retail outlets and other segments were invited to take part in training and tests involving product layout in store shelves. We also study ways of communicating our proposals and brands more efficiently with merchandising back to summary Partnerships with customers enable the development of joint logistics solutions that help reduce greenhouse gas emissions. Some joint projects with customers Backhaul – A partnership with some of our larger customers (such as Carrefour and Wal Mart) permits fleet sharing and reduced costs and greenhouse gas emissions in logistics operations (read more in Emissions). We added three new routes in 2012. Torre Project – Adjustments in the manual storage of items sent to the Pão de Açúcar group, with the allocation of different products in the same pallet. This eliminates GRI PR5 pallets from the operation, decreasing the number of journeys and reducing costs. Implanted in four states in the course of 2012. Environmental Footprint – A joint project with the Pão de Açúcar group which analysed the routes used to transport our products, with a view to calculating CO2 emissions in transportation from our distribution centres to the customer’s stores. 38 unilever brazil Sustainability Report 2012 our stakeholders back to summary We engage in wide-ranging dialogue with stakeholder groups. Partnering with other organisations, we address consumers on the question of conscious consumption. We also establish partnerships with customers to reduce our environmental footprint and use the power of our brands to support government campaigns. 39 unilever brazil Sustainability Report 2012 our stakeholders back to summary Communities Manufacturing With industrial plants in different regions of the country, our challenge is the more consistent development of local community relations Unilever’s nine factories in Brazil are located in four states in three different regions of the country. This distribution makes it necessary to examine the manufacturing operations and build open relationship channels with local communities – a challenge addressed in the Sustainable Living Plan and also delineated in the stakeholder identification process initiated in 2012. We have approached the challenge of engaging surrounding communities with projects that include stakeholder mapping and consultation, the assessment of social and environmental impacts associated with the business and the use of environmental survey mechanisms. One of these tools is Laia (the Portuguese acronym for Environmental Impact Survey), a mandatory standard procedure for all Unilever units. In spite of its environmental focus, this survey may also encompass social questions related to the surrounding community. The survey is based on legal obligations and the GRI EC8, SO1, DMA SO - Community Framework Standards, the safety, health and environmental management system used by Unilever. In 2012 we advanced with a project to identify the stakeholders associated with Unilever’s industrial operations. With support from an external consultancy and providing continuity for the Materiality Matrix consultations, we studied the main aspects and issues involved in Unilever’s relations with governments, communities, institutions and organizations in the areas around our plants. This involved consultations with leaders from four operations: Igarassu, Valinhos, Pouso Alegre and Vinhedo. The initiative represents a first step towards understanding the most relevant themes for each of the company’s manufacturing units. The work will continue throughout 2013, as part of our stakeholder engagement and relationship initiatives. Community relationship programmes To contact the company, our neighbours can get in touch with the Call Centre or go directly to the factory gates. Some operations, such as Garanhuns, Goiânia, Igarassu, Valinhos, Vinhedo and Pouso Alegre have formal processes for handling complaints from the local community. Others, such as Indaiatuba, Ipojuca and Goiânia organize sustainability-related educational activities for the community and employees’ families. Another important measure for developing closer relations with the community is the Conviver programme implanted at the Valinhos factory, which has ice cream and personal products plants. Created in 1992, Conviver has developed communication channels with government and civic organizations, community oriented social, environmental and educational programmes, in addition to fronts to manage local impacts. In 2012, the distances 40 unilever brazil Sustainability Report 2012 our stakeholders between the plants and internal structural problems prevented the extension of this programme, but we did design a unified strategy for the plants which will be reinforced from 2013. In the second half of 2012, we also initiated a pilot project with communities in the areas around our plants which will use a methodology aimed at boosting urban sustainability. The focus is on enhancing community relations around questions related to sustainability and local development. The pilot programme will begin in 2013 in the cities of Valinhos (SP) and Pouso Alegre (MG), with the prospect of extension to all company plants after two years. The idea is to mobilize employees who are interested in acting as agents of change, fomenting the development of the region in which they live. Unilever is also a sponsor of Enactus, an international notfor-profit organization that foments the development of socially responsible business leaders through volunteer work by university students in communities with specific needs. While helping these communities to find creative, sustainable solutions to their problems, the students develop skills which will increase their chances of being hired by reputable corporations. company to measure its impacts and establish action plans. This tool was used in Pouso Alegre (Minas Gerais) during the construction of a new distribution centre, enabling us to prepare a relationship plan with the local community. Occupying 87 thousand square metres and generating around one thousand work posts, both with Unilever and with partners, this will be one of the company’s largest distribution centres. Since the beginning of the project, the construction company responsible for the building has had meetings with the local community and representatives of the local environmental authority to discuss questions such as pollution and the generation of traffic on nearby viaducts and roads. The Pouso Alegre DC is being built in accordance with Leed (Leadership in Energy and Environmental Design) standards, which incorporate sustainability into civil construction practices. The DC is scheduled to go into operation in the third quarter of 2013. If certified, this site will the third Unilever operation to receive Leed certification. back to summary New Instalations We have also sought to improve relationship in installations that are in the construction phase. A tool that identifies the impacts caused by our operations, developed by a group of trainees in 2011 and reviewed and applied throughout 2012, enables the GRI EC8, SO1 41 UNILEVER BRAZIL SUSTAINABILITY REPORT 2012 OUR STAKEHOLDERS IMPACTS IDENTIFIED IN 2012 Pouso Alegre – With the construction of a new distribution centre (DC) in the municipality, Unilever is applying a tool developed by trainees to measure the impacts caused by Igarassu – During the year, the Pernambuco state environmen- the new operation on the neighbourhood. In 2012, the comtal authority (CPRH) inspected the production lines and made pany elaborated relationship and communication measures a series of recommendations for improvements to leaders and involving open encounters and meetings with local leaders. the local SHE (Safety, Health and Environment) teams. The unit In 2013, after the start-up of the operation, the tool will be did not receive any fines from the environmental authorities, nor applied again to measure different impacts at each stage of were complaints received from the neighbouring communities. the business. Some impacts observed by surrounding communities notified through our communication channels: BACK TO SUMMARY Managing community impacts is still a challenge for Unilever Brasil, in particular at its plants. In 2012, we progressed in mapping the stakeholders in these operations. Valinhos – Annually the unit monitors environmental noise in the area around the plant. During the night noise levels can exceed stipulated parameters. There were no complaints from the community, but the monitoring led to mitigation projects that will be carried out in 2013. Some isolated complaints were received through the plant’s community relations channel; these were dealt with by the company’s environmental management system. GRI EC8, SO9, SO10 42 unilever brazil Sustainability Report 2012 our stakeholders back to summary Social investment Strategic support We provide incentives for projects and initiatives that further our global sustainability directives Our private social investment in Brazil is aligned with global Unilever strategies and guidelines. This investment takes place on two fronts: the first is coordinated by the Instituto Unilever involving projects receiving tax incentives; the second is centred on our brands and entails direct company investment and sponsorship. The main criterion for investment is support for projects, partners and initiatives aligned with company values, strategies and socio-environmental and business targets, with a focus on our most relevant themes – such as nutrition, health, education for conscious consumption, the reduction of product life cycle impacts and responsibility in the value chain. We also prioritise programmes that promote dialogue with our multiple stakeholders and areas such as well-being, self-esteem, social and economic development and environmental education. All projects are evaluated by the Instituto Unilever cross-functional team and the Unilever Brasil marketing areas to check the GRI EC8, SO9, SO10 credentials of the potential partner, compliance with Brazilian legislation and alignment with the business. To be selected a project must also be coherent with the Code of Business Principles, the Unilever Sustainable Living Plan and company brand communication policies. In 2012, the company’s social investment totalled around BRL 11.3 million, a 26% increase compared with the previous year. Around BRL 2.5 million was invested through tax incentive laws such as the Rouanet Law and the Sports Incentive Law. One of the oldest initiatives supported by our corporate brand is the Unilever Social Volleyball Programme. Aimed at children and teenagers in Paraná and Rio de Janeiro, it was created in 1997 and is aimed at promoting self-esteem, human development and social inclusion through sport. The work with children aged 7 to 15 years prioritises four principles (responsibility, respect, cooperation and autonomy). The project is coordinated by the Instituto Compartilhar, run by the volleyball coach Bernardo Rezende in partnership with the Paraná state government and the Rio de Janeiro city hall. During the course of 15 years, the project has benefited more than 95 thousand children and young people in three states (Paraná, Rio de Janeiro and São Paulo) with sports and educational activities. During 2012, more than 1,480 teachers were trained and 2,600 children and adolescents took part in the programme. See more at www.facebook.com/unilevervolei. Another source of company social investment on a global level is the Unilever Foundation, the inauguration of which was announced at the World Economic Forum in Davos, Switzerland, in January 2012. With a fixed partner network including organisations such as the World Food Program (WFP), Save the Children, Oxfam, PSI and Unicef, the foundation is dedicated to improving quality of life in areas such as hygiene, sanitation, access to drinking water, nutrition and self-esteem. 43 unilever brazil Sustainability Report 2012 our stakeholders In Brazil, Unilever is already engaged in some projects of this nature with Save the Children, represented by the Fundação Abrinq. We are also working on a partnership to be launched with Unicef in 2013, based on the same principle as the global project. This is aimed at engaging with municipal governments, communities and schools to improve sanitation facilities in specific regions of Brazil (more information about the global project is available at www.domestosforunicef.com. Another important programme that we support through the Unilever brand having the highest recall in the country is OMO Every Child has the Right. Since 2008, the initiative has provided recognition for activities developed by infant and primary schools to value play, in line with our proposal that brands such as OMO should encourage and disseminate quality of life and well-being. During the last edition of the award, the results of which were released at the beginning of 2012, we received entries from more than 700 schools in 395 municipalities, 7% of the municipal districts in Brazil. A total of 18 private and public schools received awards, most of which were in the Southeast of the country. In 2013, the award will undergo a reformulation which is scheduled to be concluded in mid- 2014. Further information about the programme is available on the programme’s webpage (http://www.pelodireitodesercrianca.com.br). In 2012, our AdeS brand also supported the “Lê pra mim?” (Read for me?) project, which encourages young children to read through literary encounters with public figures. More than 1,200 children benefited from the four-day encounter, which transforms comedians, actors and teachers into story tellers. At the end of each session, the participants received a book and an AdeS beverage. The Kibon brand also developed a project to develop a local community in the city of Rio de Janeiro. The company sponsored the construction of a facility for the NGO Educap (Espaço Democrático De União, Convivência, Aprendizagem e Prevenção), which offers courses on subjects suggested by the community members, such as English focused on tourism, financial management, entrepreneurism and preparation for the labour market. More than 280 people attended the programme on a regular basis during the year. GRI EC8 back to summary Investment Number of people impacted Product donations BRL 9,256,191.76 769,849 Direct Investment BRL 6,621,038.49 3,208,227 Investment by incentive laws (Rouanet; LIE, FDCA) BRL 2,550,321.00 187,408 BRL 18,427,551.25 4,165,484 Action Total 44 unilever brazil Sustainability Report 2012 back to summary our stakeholders Other projects a not-for-profit non-governmental organization Through the Instituto Unilever the company also supported the following initiatives, which were either promoting environmental awareness by means of education for sustainability. undertaken in 2012 or will take place during 2013: Alfasol Programmes: Alfasol, a not-for-profit civic organization dedicated to social development by means of sustainable educational practices, carries out a number of projects, such as its Youth Education and Professional Initiation Project for Administration, Logistics, Trade and Retail Professions. We started to sponsor this initiative in 2011 and the project will run until May 2013, benefiting some 600 young people. In 2012, we made a further donation which will be invested in the initiative “Youth education in logistics” in 2013. Praça vai à Escola Project: this promotes free socio-environmental education and inclusion for children and adolescents through transformational educational activities aimed at preserving the environment and driving sustainable development. Implemented by the Instituto Verdescola, Turma da Lancheira: The project, which took place in 48 schools in São Paulo throughout the year, reached more than 17 thousand people with actions aimed at promoting awareness of healthy eating choices and healthy life styles. Unilever Social Volleyball Programme: we support the Paraná State Volleyball Centres Tournament, which seeks to nurture individual self-esteem and human development through sport. The initiative is part of the Unilever Social Volleyball Programme, run in partnership with the Instituto Compartilhar. Galinha Pintadinha – O Musical: A playful, interactive musical production that was presented in São Paulo and Rio de Janeiro during the year. It features the song “Lava a mão” (Wash your hands), which provides guidance on one of the simplest ways of preventing disease through basic hygiene. There were 189 presentations of the show, attended by 81,608 people in the two cities. Cine Lifebuoy –Disney Magic Session: As part of World Handwashing Day in 2012, Lifebuoy and Disney promoted a project to open access to the cinema to low-income segments of the population. Classic Disney films were shown in a number of cities in the northeast of Brazil, in the states of Alagoas, Bahia, Pernambuco, Paraíba, Rio Grande do Norte and Ceará. Risadaria (Laughter): Programmed for 2013, the initiative includes a series of platforms - such as literature, cinema, radio, internet, cartoons, theatre, photography, circus, stand-up comedy and documentaries – to promote laughter. 45 unilever brazil Sustainability Report 2012 our stakeholders back to summary Our investments are directed at projects, companies and partnerships aligned with our values and goals. 46 unilever brazil Sustainability Report 2012 our stakeholders back to summary Governments and institutions Unilever in public life Dialogue with the municipal, state and the federal governments enables us to participate in and influence policies affecting the sector It is our understanding that company relations with governments and public institutions should reflect and reinforce our positioning regarding various sustainability-related questions. We want to have an active voice in regulatory and sector discussions, the reason we have a Government Affairs and External Relations area. The team reports directly to senior management and is responsible for dealing with the company’s institutional stakeholders, such as municipal, state and the federal governments, as well as Brazilian trade and sector associations. Maintaining a close relationship with these groups enables us to participate in and positively influence debates related to regulation of the industry, such as the Brazilian national solid waste policy, as well as to assist public authorities in publicizing educational campaigns related to our business through our brands and products. The focus and relative weight of a particular issue determine the course we adopt in these relations– direct dialogue or via trade association. For regulatory questions involving state and federal GRI SO5, DMA SO – Public Policy governments, we generally act in partnership with bodies such as Abipla (Brazilian cleaning product industry association), ABA (Brazilian advertisers’ Association), Abia (Brazilian food industry association) and Abihpec (Brazilian cosmetics, toiletry and fragrance industry association). In many of these associations, Unilever executives act as consultants (read more in Sector Practices). However, we also develop direct partnerships with the federal government to disseminate messages and campaigns through our brands and products. In questions concerning our operations, plants and distribution centres, we also deal directly with municipal and state governments when necessary. paigns. We use our multiple communication channels, including product labels, to transmit messages on health, well-being and social and environmental responsibility, providing information designed to raise consumer awareness. One of our oldest partners in this respect is the Ministry of Health. Since 2007, we have been recognized as a “Partner in Health” for assisting in the dissemination of campaigns to prevent disease and problems related to hygiene and malnutrition, for example. We included messages related to the national polio vaccination campaign on OMO packs; the Maizena and Cremogema brands supported a breast-feeding campaign, and our 200 ml AdeS packs carried seals promoting the importance of the Guthrie test for new born babies. Federal campaigns In the cleaning and hygiene area, health actions are conducted through Lifebuoy antibacterial soap, whose social misIn most cases, our direct relations with the federal govern- sion is to promote frequent handwashing. On October 15, 2012, ment involve support for its institutional and educational cam- during the commemoration of World Handwashing Day, we con- 47 unilever brazil Sustainability Report 2012 our stakeholders ducted a communication campaign and promoted activities with employee volunteers and partners such as the Pastoral da Criança, with the distribution of educational material (read more in Improving Health and Well-Being). We also work periodically with the Ministry of the Environment. Our main commitment is to participate actively in initiatives under the Sustainable Production and Consumption Plan (PPCS in the Portuguese acronym) launched in 2011. One activity included in this plan is the substitution of the refrigerant gas in 80% of Kibon’s ice cream cabinets by 2020, in partnership with our freezer supplier Metalfrio. The target of substituting the refrigerant gas in 20% of Kibon freezers by the end of 2012 was exceeded, with the company ending the year with 62% of its freezers using R290 gas (read more in Emissions). The target of reusing and/or recycling 20% of the components in freezers by the end of 2012 was also beaten. At the end of 2012, 100% of the components were being reused and/or recycled at the end of the working life of the freezers (read more in Waste). A good example of the reuse of materials is the process of recycling polyurethane sheets used for thermal insulation in the freezers. This material is transformed into thin plastic sheets used to make a number of items, such as bins for post-consumption packaging in the home - in the bathroom, for example, where consumers do not usually sort packaging. This material was also used to make an end of year gift that Unilever sent to diverse stakeholders. In 2012 we formalized our support for debates on conscious consumption with the launch of the survey “What Brazilians think of the environment and sustainable consumption “, developed by the Environment Ministry in partnership with other companies. Presented during Rio+20, the document analyses habits and behaviours of Brazilian consumers and their perception of business sector commitment to sustainability. GRI SO5, EN27 back to summary stakeholders involved to commit to the Sustainable Development Goals (SDGs). The full manifesto is available at www.unilever. com.br/sustentabilidade. During Rio+20, Unilever presented the advances it has made in its Sustainable Living Plan and encouraged debate about the adoption of more effective and consistent social and environmental practices by the business world. The company also participated in diverse round table discussions on themes such as Unilever at Rio+20 smallholder farmers and valuing and promoting the development The United Nations Conference on Sustainable Development of agents in the supply chain. (Rio+20), held in June 2012, mobilized Unilever’s senior management in Brazil and worldwide. The president of the Brazilian operation, Fernando Fernandez, the global president global, Paul Polman, and Brazilian and English executives took part in the main conference encounters. Prior to the conference, Unilever prepared a manifesto that was presented publicly by executives from our the global operations. It reaffirmed the company’s positioning and its expectation that the business community and the consumer products industry be engaged in promoting sustainable development. The text addresses five priority areas: deforestation; sustainable sourcing and climate change; food security; sanitation and hygiene; waste, recycling and sustainable consumption. The document presents the main risks and opportunities for the organization’s companies worldwide, showing our commitments and suggesting how governments, companies and civil organizations could reduce impacts and improve quality of life. The manifesto also underscores the need for all the agents and 48 unilever brazil Sustainability Report 2012 our stakeholders back to summary Sector practices A question of order Relations with sector and trade associations empower us in major public policy discussions in the country Unilever seeks representation and active participation in major nationwide discussions related to the environment, sustainability and corporate responsibility in the sectors in which it operates. Critical business themes which are under review in the applicable legislation, such as labelling, advertising for children, solid waste disposal and recycling, among others, are debated by representatives of companies in the sector and partners. We are currently engaged in diverse projects and discussions on Brazil’s national solid waste policy (PNRS). Sanctioned in 2010, the new policy, which involved years of debates between the government, consumer goods companies and diverse spheres of civil society, introduces changes in the way waste is disposed of, collected, treated and managed in the country. The policy involves the gradual implementation of a series of measures, such as the regularization of landfills and the assumption of a number of obligations by companies between 2012 and GRI SO5 2014; it also establishes the target of increasing the percentage of dry waste recycled in Brazil to 20% by 2020. Unilever participates in the solid waste policy discussion groups through the trade associations of which it is a member, such as Abihpec (Brazilian cosmetics, toiletry and fragrance industry association) and Abipla (Brazilian cleaning product industry association. These and other organizations are also part of Cempre (Business Commitment to Recycling), of which Unilever was a founding member and which is responsible for articulating debates with the government. Throughout 2012, a number of subjects were discussed under the auspices of Cempre, with a focus on helping companies to adapt to the new legislation and preparations for a possible sector agreement. There were important advances in the personal hygiene and cleaning segments during the year. An example is the Dê a Mão para o Futuro programme (Give the Future a Hand), the result of a partnership between Abihpec, Abipla and diverse companies, aimed at implanting a selective waste collection network in Brazil based on the concept of shared responsibility. The programme is for companies who are seeking appropriate urban solid waste management solutions in line with national policy. In this group, we seek to influence governments and help organize recyclable waste collection cooperatives, driving the social inclusion of these groups and helping to reduce the impacts caused by diverse consumer goods. The project is already in operation in Rio de Janeiro and Paraná. In 2012, an agreement was signed with São Paulo state government to enable the initiatives to be put in place in the municipal districts in the State. During the year, the cooperatives processed and commercialized 21,838 tonnes (Paraná) and 255.8 tonnes (Rio de Janeiro) of recyclable materials. More information about the project is available at www.maoparaofuturo.org.br. Another joint programme that is aligned with the new law is the Pão de Açúcar Unilever Recycling Stations, which represent a viable model for the free collection and channelling of solid waste to cooperatives. This programme reduces the volume of waste in disposed of in landfills, generates new jobs and provides an incentive for consumers to dispose of their waste properly. 49 unilever brazil Sustainability Report 2012 our stakeholders back to summary Participation in associations and organizations Associations and councils ABA (1969) – Brazilian advertisers association – Unilever presides the Government Relations, Legal, Media Management & Digital Marketing committees, and is vice president of the sustainability committee. Aberje (1972) – Brazilian business communication association – member. Abia (1963) – Brazilian food industry association – we are members of the Consulting Council, the Board and are part of the Regulatory group, through which the sector reviews legislation in conjunction with the government and Anvisa. We participate in Tributary group meetings to analyse tributary legislation and advocate sector interests. visa. We participate in Tributary group meetings to analyse tribu- monthly basis. Assesuape (2009) –Suape business association – member. tary legislation and advocate sector interests. Abipla (1976) – Brazilian cleaning products industry association – We preside this association and participate on the board and in the environment, labour, tributary and regulatory working groups. The latter is responsible for revising sanitary legislation (for example, simplifying Anvisa product registration processes). Reviews are carried in partnership with the government and Anvisa. We participate in Tributary group meetings to analyse tributary legislation and advocate sector interests. We also participate in the labour relations group. Associação ECR Brasil (1997) – Brazilian Efficient Consumer Response association – We are members and represent the industry in this association. CEBDS (2012) – The Brazilian Business Council for Sustainable Development – A group of companies installed in the country aimed at discussing and disseminating best corporate practice aligned with sustainability. Cenaids (1998) – National business council for the prevention of HIV/AIDS – Unilever is a founding member and particiABMN (2001) – Brazilian marketing and business association pates periodically in Cenaids meetings. – member. Ciesp (1934) – State of São Paulo Industry Confederation – Adial (2002) – State of Goiás industrial development associboard member. Abihpec (1995) – Brazilian personal hygiene, perfumery and ation – We are members and participate as vice president of cosmetics industry association – Board member and participathe administrative council. Conar (1980) – National advertising self-regulatory council – tion in the environment, overseas trade and regulatory working Unilever participates as 2nd vice president on the board and groups. The latter is responsible for revising sanitary legislation (for example, simplifying Anvisa product registration processes). Aevi (2010) – Vinhedo business association – a represenas a member of the Ethics Council. Reviews are carried in partnership with the government and An- tative of the Vinhedo unit participates in meetings on a continua GRI 4.13 50 unilever brazil Sustainability Report 2012 our stakeholders EAN Brasil (1987) – Brazilian automation association – member. Intermunicipal Consortium Civic organizations Consórcio PCJ (1996) –Intermunicipal Cempre (1992) – Business commitment to recycling – Unile- Consortium of Basins of the Piracicaba, Capivari ver is a founding member and active participant in Cempre. and Jundiaí Rivers – Member of the board, with The company has presided the organization twice and is cur- participation in meetings and the technical group of consortium members. rently on its board. Instituto Akatu para o Consumo Consciente (2010) – Unilever supports the Instituto Akatu, which provides the company with support in questions related to conscious consumption. Instituto Ethos (1999) – Instituto Ethos de Empresas e Responsabilidade Social – member Chambers of commerce back to summary Sipatesp (1941) – São Paulo perfume industry federation – We are a member company. We participate in the Tributary Group to analyze legislation and to advocate the sector’s interests in the government sphere. Sipla (1988) – National cleaning products industry federation – We are a member company. We participate in the Tributary Group to analyze legislation and to advocate the sector’s interests in the government sphere. BRITCHAM (1995) – British Chamber of Commerce and Industry in Brazil – member. DUTCHAM (1952) – Dutch-Brazilian Chamber of Commerce - member. Instituto Integrare (2006) – We developed the Integrare programme designed to incorporate micro and small companies Federations into our business. We are a member of the consulting council and are engaged in recruiting new members Sicongel (1997) – São Paulo frozen products industry federation – We are a member company. The company represenWWF (2010) – We are part of the Corporate Club as a partner tative is vice president of the Ice Cream area. of WWF Brasil. GRI 4.13 51 unilever brazil Sustainability Report 2012 Improving Health and Well-Being back to summary Nutrition Health and hygiene Lifebuoy Pureit 52 unilever brazil Sustainability Report 2012 Improving Health and Well-Being back to summary A target of one billion We want to improve quality of life for one billion people by 2020 by changing their hygiene habits, such as promoting handwashing at least five times a day As a market leading company that develops and produces food and personal care products and reaches every Brazilian household, Unilever has the responsibility of doing business in a way that helps improve living standards, promotes health and hygiene, increases people’s self-esteem and their well-being. We play an important role in the dissemination of healthier eating habits through the nutritional profile of our products and participation in awareness campaigns. In Improving Health and Well-Being we work on two fronts: in our product communication, in which we underscore the products’ main attributes and qualities, either in terms of nutrition or the promotion of hygiene, health and well-being; and through campaigns and actions supported by our major brands, particularly worthy of note being Lifebuoy, Pureit and Becel – which help publicize questions such as proper handwashing, access to pure, clean, treated water and the prevention of cardiovascular disease, respectively. The Unilever Sustainable Living Plan contains a series of global targets for the years 2012, 2015 and 2020 in the Improving Health and Well-Being area. It is guided by our commitment to help more than one billion people adopt habits that will improve their health and well-being by 2020. In the Health and Hygiene area, we intend to take drinking water to 500 million people and to induce one billion people to adopt more hygienic habits. In Nutrition, we will double the number of products with an enhanced nutritional profile by 2020. Globally, we have made significant progress in this pillar as testified by the Sustainable Living Plan Progress Report, available at www.unilever.com.br/sustentabilidade. We have also established local targets based on the guidelines of the Sustainable Living Plan and the attributes of the brands and products commercialized in Brazil. Working through initiatives, projects and communication, we will contribute to the targets by impacting around 75 million people with actions related to Lifebuoy, for example. We influence stakeholders in sector initiatives, with encounters and communication activities aimed at health professionals, public authorities and organisations committed to promoting health and safety in the country. Internally, we seek to launch products and communications that are aligned with our business and sustainability strategies. To ensure the proper communication of information about our products and strategies, we maintain a communication network with health professionals. In addition to periodic visits, we issue invitations to events and workshops focused on themes such as healthy diets, new habits and quality of life. 53 unilever brazil Sustainability Report 2012 Improving Health and Well-Being Our global targets (in volume) had less than 33% saturated fat as a proportion of total fat. Health and Hygiene »» Eliminate trans fat: in 2012 we achieved our target of eli»» To provide 500 million people with drinking water by minating trans fat from partially hydrogenated vegetable 2020 (Pureit). oils in all our products. »» By 2015, our Lifebuoy brand intends to change the »» Reduce sugar: we have already reduced sugar levels in hygiene habits of 1 billion consumers in Asia, Africa our ready-to-drink beverages. We will eliminate a further and Latin America by publicising the benefits of proper 25% by 2020. handwashing. »» By means of our dental cream brands, we will change the »» Reduce calories: by 2014, 100% of our children’s ice cream products will have 110 kcal or less per portion. This oral health habits of 50 million people by 2020. target was reached in 60% of our portfolio by 2012. »» We want to help 15 million young people improve their »» Reduce sodium: we will reduce sodium content by up to self-esteem with our Dove brand. 25% in all our food product categories by 2015. »» Information on healthy diets: our objective is to provide cleNutrition ar and simple product labelling that will help consumers to »» We are committed to improving the fat composition in make the right choices for a nutritionally balanced diet. All our products, reducing levels of saturated fats as far our products in Europe and North America provide complete as possible and increasing levels of essential fats. Our nutritional information. By 2012, Australia, New Zealand and target for 2012 was less than 33% saturated fat in the Latin America were already providing complete nutritional composition of our leading margarines. By the end of information on product labelling. the year more than 90% of our major margarine brands back to summary Measures in the nutrition and health and hygiene areas are aimed respectively at improving the profile of our food products and disseminating healthier habits in the regions in which we operate. (See our progress against targets in http://www.unilever.com.br/sustentabilidade) 54 unilever brazil Sustainability Report 2012 Improving Health and Well-Being back to summary Nutrition Less sodium, less fat, less sugar It is a permanent challenge to enhance our foods portfolio, offering an appropriate nutritional profile and satisfying consumer needs Unilever is working hard on improving the nutritional profile of its products to offer consumers in Brazil and worldwide a balanced diet. Our food portfolio, which includes brands such as Becel, Knorr, Hellmann’s and Maizena, is focused on three priority issues on the Brazilian public health agenda: nutrient deficiency, obesity and excess weight, and excessive sodium consumption. Management of these themes is coordinated by the Nutrition and Research and Development areas, which pay special attention to the innovation phases. The objective is to launch products with lower quantities of four ingredients – trans fats, saturated fats, sugar and sodium, when possible aligned with the recommendations of the World Health Organisation and other bodies. The regional and Brazilian teams work together on this so that our brands and products are also aligned with critical questions in Brazil. The company’s Consumer Market Insights (CMI) area provides support with research aimed at understanding consumer expectations and needs (read more in Consumers). In 2012, we made significant progress in the reduction of sodium levels in our products. In addition to being one of our global targets, this issue was incorporated into the Brazilian public policy agenda after the signature of an agreement between the Ministry of Health and Abia (the Brazilian food industry association) in August 2012. The commitment, which represents the continuation of a cross-sector initiative initiated in 2008, addresses sodium reduction in diverse foods categories, including seasonings, bouillons and margarines, and is part of the federal government’s Strategic Plan to Combat Non-Transmissible Chronic Diseases. The objective is to remove more than 8.7 thousand tonnes of sodium from the Brazilian market by 2020 – the equivalent of 378 fully-loaded 23-tonne Truck class heavy goods vehicles. Our participation in debates as Abia members enabled us to identify areas for improvement and dialogue between the government’s strategy and our own Sustainable Living Plan – which targets a 25% sodium reduction throughout the foods category. In 2012, improvements were already underway in some products, such as our Frango Assado bouillon cubes and bouillons in general, with an approximate reduction of 2% compared with their original formulation. Additionally, innovations and product launches under the Knorr brand, such as the Meu Bife, Purê de Batatas Instantâneo and Minha Carne Assada lines, are in accordance with the sodium levels established in our own and in sector commitments. In the Unilever Food Solutions division, which commercializes products such as Meu Arroz, we also identified a reduction of more than 15% in the salt content in recipes, in partnership with an industrial meal provider. 55 unilever brazil Sustainability Report 2012 Improving Health and Well-Being We think that our targets for the coming years are evolving in the right direction, and whenever possible we seek to share our experience with partners and the competition. Above all, we are committed to ensuring that the products we commercialize are in line with sector, company, national and international guidelines. As such, our priority is to ensure that all variations of Unilever brands and products have a flexible, high quality nutritional profile. On a global level, we have also reduced sodium levels significantly over the last eight years. Our long-term target is to reach the daily limit recommended by the World Health Organisation of 5 grams of salt per day. Since 2009, we have deployed the Unilever Brasil Sodium Reduction Strategy, which proposes specific targets to disseminate the maximum daily ingestion of 5 grams of salt as standard. We have already brought about significant reductions in our products in the country over the last five years. This is especially challenging in view of variations in consumer preference from country to country - which we need to address with specific innovations and improvements. And this needs to done in conjunction with our competitors, in a way that neither jeopardises our business nor affects consumer satisfaction. As critical problems related to Brazilian public health, we have identified two issues that reflect the need for Unilever to enhance the nutritional profile of its food product lines: excess weight and obesity on the one hand and, on the other, a deficiency in essential nutrients. Data from the latest Family Budget Survey, released in 2010 by the IBGE, show that around 60% of Brazilian adults are over- weight or obese. Meanwhile, the issue of nutrient deficiency is still very much linked with malnutrition and affects more than 170 million children worldwide. In Brazil, this problem affects 6% of the infant population, a reduction of 73% between 1974 and 2009, according to the study “The panorama of malnutrition in Brazil over the last four decades”, published by the Fundação Abrinq – Save the Children. In Unilever, we believe we have an important role to play and can help change this picture in a number of ways. In addition to improving the profile of our products, making them important components in a more balanced diet through programmes such as Nutrition Enhancement (read more below), we are engaged on fronts that study, analyse and seek to improve Brazilian eating habits. In September 2012, Unilever Brasil started to sponsor a pioneering initiative in this direction: the Meu Prato Saudável (My Healthy Dish) programme. Aimed at observing how Brazilians prepare their meals and increasing awareness of how to make them more nutritive and healthier, the project, which is coordinated by Latinmed and Incor (Heart Institute), is supported by our corporate brand via the Unilever Health Institute (UHI – read more below) and by the AdeS, Becel and Hellmann´s brands. In its first phase alone, Meu Prato Saudável impacted more than 70 thousand people in the state of São Paulo with encounters, educational materials, a website (www.meupratosaudavel.com.br) and an application for iPhones and the Facebook social network containing information about meal preparation and tips for consumers. In 2013, the programme should start in the state of Rio de Janeiro and then be gradually extended to other regions in Brazil. GRI FP4 back to summary In addition to enhancing the nutritional profile of our products, we are engaged in fronts aimed at studying, analysing and improving Brazilians’ eating habits Another initiative we support is the “Ame o Coração” (Love your heart) website, aimed at increasing public awareness of methods and dietary habits that can prevent cardiovascular disease. The website, which is sponsored by our Becel brand, contains statistics, life stories and advice. The site www.ameocoracao.com.br will be included in a portal which receives a large number of accesses, as a means of extending its reach. In 2012, the AdeS brand also sponsored the play Turma da Lancheira, an initiative designed to provide children studying at CEU schools in São Paulo with information on healthy eating habits. 56 unilever brazil Sustainability Report 2012 Improving Health and Well-Being Nutrition Enhancement Programme the Nutrition and Research and Development areas. Most of these solutions are developed regionally by the Latin America team, but involve the active participation of the teams in Brazil, who help to adapt them to local needs. Currently, in Brazil the main products that are fortified are AdeS soy-based beverages, including the Original, Fruit and Flavoured varieties; fortified Maizena, Arrozina and Cremogema receive added vitamins and minerals; the Becel Original and Becel Sabor Manteiga vegetable creams have added vitamins, Becel Pro-Activ receives phytosterols; and our Becel milk-based beverages have added vegetable oils containing omega 3 and 6. Since 2003, Unilever Brasil has been developing its Nutrition Enhancement Programme (NEP), part of a global initiative to improve the profile of our food products vis-à-vis components such as sugar, sodium, saturated fats and trans fat – considered by the World Health Organisation (WHO) to be potentially harmful to health when consumed in excess. There was a great improvement in retail products compliant with NEP criteria. In 2011, 45.5% of our retail products observed established limits for sugar, saturated fat, trans fat and sodium. NEP compliance rose to 61% for these products in 2012. In the Food Solutions category, which was evaluated for the first time in 2012, compliance with NEP criteria was 48%. Currently, 100% of our soy and milk-based beverages and vegetable creams meet NEP criteria. The compliance rate for the dressings category, which includes mayonnaise, ketchup, mustard and salad dressing is 75.8%, compared with 70.9% for the bouillons, soups and seasonings category. Lastly, we are working on steadily reducing the quantities of saturated fat and sugar in the ice cream commercialized by Unilever. In addition to reducing quantities of sugar, saturated fat, trans fat and sodium, Unilever seeks to fortify some foods with nutrients that are important for the organism, such as vitamins and minerals. The company has a food and beverage fortification policy which, among other things, requires studies on the incidence of deficiencies in the population, as well as on the most efficient way to delivering the nutrient. This involves joint work between GRI FP4, FP6, FP7, DMA SO Healthy and affordable food back to summary In 2012, 61% of our retail products were aligned with Nutrition Enhancement Programme guidelines, which establish improved sugar, sodium, saturated and trans fat levels 57 unilever brazil Sustainability Report 2012 Unilever Health Institute A pioneering initiative, the Unilever Health Institute (UHI) was launched in 2012. This is a division specialized in promoting dialogue with consumers, specialists and professionals in the hygiene and health area. The UHI represents a great step forward in our relations because in addition to enabling us to work on specific aspects of nutrition, it permits the use of certain skin care and beauty brands as vehicles for our sustainability strategy. The institute’s internet page (www.unileverhealthinstitute. com.br) presents scientific research, news, interviews with professionals, in addition to showcasing the benefits offered by our products. The Unilever Health Institute also works with global organizations in support of health, hygiene and beauty-related programmes. Through the institute, Unilever supported a study by the International Union of Nutrition Science to understand eating habits and barriers and opportunities for promoting behavioural change. In Brazil alone, more than one thousand people were consulted. The findings of the research should be published in 2013 and signal the importance of increasing consumer awareness about the adoption of healthier habits. GRI FP4, FP6, FP7 Improving Health and Well-Being back to summary A pioneering initiative launched in 2012, the Unilever Health Institute is a division specialised in dialogue with consumers and health and safety specialists and professionals. 58 unilever brazil Sustainability Report 2012 back to summary Improving Health and Well-Being Promoting health is a major focus of the Sustainable Living Plan. We use our product communication and organise campaigns to help people modify their habits and behaviours. 59 unilever brazil Sustainability Report 2012 Improving Health and Well-Being back to summary Health and Hygiene Increasing well-being We use the reach of our products to transmit the importance of good hygiene habits to consumers Unilever has also established a series of targets for promoting sound hygiene habits. It is our belief that the best way to do this is through our business, using our brand communication to focus on the prevention of potentially fatal diseases, such as diarrhoea and respiratory diseases, as well as promoting quality of life. This is a something Unilever has done since the very beginning: in 1890, William Lever, one of the company founders, launched Lifebuoy with the proposition of improving public hygiene. The Sustainable Living Plan sets forth specific Health and Hygiene targets for 2015 and 2020. These are linked with critical themes in diverse markets, principally in developing countries in Africa, Asia and Latin America and include access to drinking water, handwashing, oral health and self-esteem (read more in Improving Health and Well-Being). As Unilever’s second largest operation worldwide, we have a special responsibility in ensuring that these sustainability targets are achieved. We use the reach of our brands to communicate messages that can raise consumer awareness about how to improve health and quality of life. In Brazil, we have prioritized the Pureit and Lifebuoy brands to tackle two critical issues: access to clean, treated water and handwashing. Since 2010, when we relaunched Lifebuoy in Brazil, we have sought to engage our partners – civil society, state and federal governments and other organizations - in the social mission promoted globally by the brand: to convince underprivileged children, families and communities of the need for periodic handwashing with soap. Partnering with the Ministry of Health since 2007, we have encouraged the dissemination of this theme in government campaigns and initiatives. The importance is proven by statistics: the lack of drinking water and basic sanitation facilities, combined with low levels of handwashing, is responsible for 3% of the deaths occurring in the world every year. These problems are also associated with 18% of the cases of child mortality from acute respiratory infections and diarrhoea. In Brazil, more than 50% of infant mortality from diarrhoea occurs in the North and Northeast regions. Given this situation, the company used Lifebuoy to create a public agenda around this theme and developed actions in partnership with the Pastoral da Criança (read more in Lifebuoy). In parallel, we introduced World Handwashing Day, commemorated on October 15th in more than 80 countries, in Brazil. Another important item on Brazil’s public health agenda is public access to treated water. According to the 2010 IBGE Census, around 83% of households in the country are connected to mains water supplies; the other 17% still get their water from wells, lakes, rivers and springs. Although there has been significant progress in recent years, data show that this issue still represents a serious social challenge: every year 28 thousand Brazilians die from consuming contaminated water, according to the World Health Organization (WHO). In 2011, we started to address this issue through our Pureit water purifier brand. Launched with the objective of providing 500 million people worldwide with access to pure, clean, treated water, the product was integrated into our work with the Pastoral da Criança in the course of 2012. During the year, we invested in brand communication and made the product available through retail outlets to drive increased consumer understanding of the purifier and its capacity to generate value (read more in Pureit). 60 unilever brazil Sustainability Report 2012 back to summary Improving Health and Well-Being Lifebuoy Changing behaviour One of Unilever’s oldest products, the antibacterial soap was relaunched in Brazil to disseminate the habit of handwashing Launched in 1890 by a founder of Unilever and one of the company’s oldest products, Lifebuoy antibacterial soap was relaunched in Brazil in 2010 with a new proposition: to disseminate the importance of handwashing as a simple and effective means of preventing disease and combating child mortality. This mission has been supported through a partnership with the Pastoral da Criança in which the organization’s volunteers help to disseminate the importance of good hygiene habits among low-income families. This work is essential for us to achieve Lifebuoy’s ambitious 2015 target of improving quality of life through changes in hygiene habits for one billion people in Asia, Africa and Latin America. In addition to promoting the importance of frequent handwashing in the target communities, annually we donate soap for Pastoral volunteers to distribute to low-income families. In 2010, these actions impacted 70 thousand families with children aged from 0 to 6 years. In 2011, the figure increased to 150 thousand families, reaching 225 thousand in 2012. In 2012, the Pastoral conducted a survey in the municipal districts that participated in the handwashing campaign supported by Lifebuoy. The objective was to identify the relationship between the organisation’s work and attendance of children with diarrhoea and infections at local health clinics. Conducted in 214 communities in 14 states, the survey showed a 10.9% reduction in consultations. Another important initiative during the period were the actions for World Handwashing Day, which we have promoted since 2011 and helped insert in the Brazilian public agenda. With support from various partners, including the Ministry of Health, we used the date to promote debate, reinforce the importance of this habit and drive public awareness. We estimate that the company impacted 5,769,232 people with educational messages on October 15th 2012. In Brazil, in addition to communication media, our activities involve volunteers, partners like the Pastoral da Criança, itinerant activities and the distribution of educational materials. The social networks are another important tool in Lifebuoy’s social mission. We periodically conduct campaigns in which each click on the “like” button results in a donation to the Pastoral. In 2012, this initiative produced 200 thousand donations, compared with 89 thousand in 2011. Stronger market position In addition to the positive results in the social work the brand supports, Lifebuoy’s business performance improved significantly in 2012. Our market share in the antibacterial category doubled, and there is still plenty of room for growth, particularly in function of infrastructure problems in Brazil’s Northeast region - an area where our social mission is especially relevant. With responsible communication that has an educational focus aimed at families and children (read more in Product Responsibility), we maintained our advertising and sponsorships in TV channels such as Discovery Kids and theatre productions for children. We consider these practices to be aligned with our global policies and commitments on advertising for children because the brand is used to promote socially relevant messages on the importance of handwashing. 61 unilever brazil Sustainability Report 2012 Improving Health and Well-Being back to summary Pureit The Pureit mission The purifier, which eliminates 99.9% of viruses, bacteria and germs, was conceived to improve access to treated water Launched in India in 2008, two years before the launch of our Sustainable Living Plan, Pureit is a brand based on the proposition of improving public access to treated water. Focused on countries and regions which still have difficulties in infrastructure, access to safe water and elevated rates of disease caused by contaminated water, the purifier was introduced in Brazil in 2011 with the objective of including this issue on the public health agenda. The option to launch the product in India – where water quality is a critical issue – is related to its properties: the main feature of Pureit is its capacity to purify water completely, eliminating 99.9% of viruses, bacteria and germs, as well as hormones and heavy metals, via filtering and chlorination processes. The product is portable, enabling access to treated water in any location. Pureit differentials compared with competing appliances include non-dependence on electricity and an automatic locking system that prevents the passage of water when the purifying element needs to be changed. It is estimated that the incidence of diarrhoea is reduced by 50% with use of the purifier. Upon launching Pureit in Brazil, we underscored the dual benefit for the consumer: control over the water consumed in the home and the savings resulting from no longer having to buy mineral water. This in turn means lower environmental impacts due to the non-generation of packaging and waste and the elimination of greenhouse gas emissions from the transportation of bottled water During the first year, in order to understand consumer needs, we adopted a direct sale strategy, a departure from normal company practice. This involved a partnership with Jequiti, a company with experience in this segment. Around 160 thousand people were trained to promote the product. In 2012, we decided to change the commercial model and started offering the purifier through retail outlets. At the end of the year, Pureit was being sold in hypermarkets in the Southeast of the country. In 2013, we intend to make the purifier available through points of sale in other regions of Brazil. Support for the Pastoral da Criança The work we do with Lifebuoy and our partnership with the Pastoral da Criança inspired the company to extend its activities in low-income communities by including Pureit. Focused on childhood development, the Pastoral provides assistance for 1.2 million families nationwide, with a focus on the importance of clean water for health and hygiene. The organisation receives support from Pureit in emergency situations. Between 2011 and 2012, we donated one thousand units of the purifier to communities assisted by the Pastoral and helped 62 unilever brazil Sustainability Report 2012 some 4 thousand people in communities affected by floods in Paraná (Paranaguá and Foz do Iguaçu) and Acre (Brasileia). In addition to the donations, we provided orientation on the problems caused by untreated water in these communities. Other work with a preventive focus was also conducted during a six-month period in communities in Maceió (Alagoas) and Paranaguá (Paraná). The Pastoral collected data from local inhabitants and identified a 6.2% reduction in diarrhoea among children in the nine locations studied. Although these results may not be attributed exclusively to Pureit, they do underscore the gains to public health enabled by access to clean, treated water. Another Pureit action launched in 2012 is Água Solidária (Water Support), a page on the social network Facebook which permits people to disseminate water-related causes and send messages of support to volunteers and families, who will benefit from some 3,500 purifiers in the course of 2013. Improving Health and Well-Being back to summary Unilever’s partnership with the Pastoral enables educational and preventive measures focused on improving Brazilians’ quality of life. 63 unilever brasil relatório de sustentabilidade 2012 brazil Sustainability Report 2012 reducing environmental impact WATER EFFLUENTS GREENHOUSE GAS EMISSIONS ENERGY ATMOSPHERIC EMISSIONS MANAGING BIODIVERSITY SOLID WASTE MATERIALS USED back to summary 64 unilever brazil Sustainability Report 2012 reducing environmental impact back to summary Striving for efficiency Our commitment to doubling in size while reducing environmental impact is reflected in the way we address issues such as emissions, waste generation and water consumption One of the main commitments in the Unilever Sustainable Living Plan is reducing the environmental impacts of our activities and operations, from sourcing raw materials to post-consumption. At the same time, we want to double the size of our business, which imposes the challenge of developing ever more efficient management and monitoring solutions, as well as investing in the production process. To achieve our targets, we also need to engage our partners, customers and suppliers in the commitments we have assumed. In the Reducing Environmental Impact pillar, Unilever has four global priorities: greenhouse gas emissions, water consumption, waste generation and disposal and sustainable sourcing. We have long-term targets set on a global level in each of these areas; we also develop local and regional measures to fulfil our commitments. In Brazil, we have mapped the company’s challenges and achievements over recent years, invested in management tools and identified the most important themes for the business based on the perceptions of our diverse stakeholders. This process, referred to as Materiality, (read more in Reporting Process) confirmed that GGEs and water consumption are also relevant for Unilever on a local level. Reducing water consumption - like solid waste generation - has been a priority in our manufacturing operations for more than 20 years, and the company has achieved consistent results in these areas. GGEs continue to be one of Unilever’s major challenges because of the nature of its business. With the target of doubling in size while reducing environmental impact, we are studying new technologies and methods that enable more efficient production processes. In 2012, for example, the Pouso Alegre unit in Minas Gerais inaugurated a boiler fuelled by biomass, leading to a reduction of approximately 30% in the plant’s direct emissions in the last four months of the year, compared with same period of the previous year (read more in Emissions). To reach our targets and fulfil our commitments, the involvement of customers, suppliers and consumers is also fundamental in activities throughout the chain. To reinforce this strategic orientation, in 2012 Unilever set up a global group to share experience among operations and teams worldwide. One of the focuses is eco-efficiency in the distribution chain. Another seeks to encourage the use of products that provoke a lower environmental impact, exemplified by recent product launches such as concentrated liquid detergents and fabric softeners. 65 unilever brazil Sustainability Report 2012 Integrated management In 2012, we reinforced practices and initiatives that have been in place since the 2010 launch of the Unilever Sustainable Living Plan. We increased the interaction between the Sustainability Committee, our main social and environmental governance body in Brazil, and the SHE (Safety, Health and Environment) area, responsible for environmental and safety questions in the nonmanufacturing areas and for communication between the plants and the committee. In addition to monthly meetings, in which the committee evaluates the evolution of indicators and directs the company’s sustainability strategy, we promote quarterly meetings with SHE leaders in the plants, the non-manufacturing area and the regional SHE area (Latin America). These are referred to as Community of Practice (COP) and present the advances and difficulties experienced by each unit, with a view to promoting ongoing, consistent improvement in environmental indicators. Based on experience, in the COP we prioritise themes aligned with the management and communication of sustainability. Biodiversity, for example, was a key question in the commitments disseminated in Unilever’s last two reports and one of the priorities on our agenda for 2012. Another relevant factor during the year was aligning waste management at some plants with Brazil’s solid waste management policy and company waste reduction, disposal and treatment targets. We progressed in monitoring environmental indicators, which currently involves three systems. The first and oldest is EPR (En- GRI DMA EN Compliance back to summary reducing environmental impact Reducing the impacts caused by operations is a priority both at our plants and our offices, sales offices and distribution centres. vironmental Performance Reporting), a global tool for gathering performance data from manufacturing operations for the SHE teams. Based on this report, Unilever tracks progress against targets and commitments and is able to compare the performance of its operations on a global level. In Brazil, we also have an EPR-based system for gathering data for non-manufacturing operations – offices, research and development centres, distribution centres and the sales and merchandising areas. The second system, which collects Global Reporting Initiative (GRI) social and environmental indicators from the plants, was implemented in 2011 and led to improvements in the management and monitoring of data. The metrics of this methodology, which we have effectively employed since 2006, enable the quarterly collection of the company’s main environmental indicators, and annual consolidation of other data. We also have a third system, based on GHG Protocol methodology, for the monthly compilation of data for our GHG emissions inventory in Brazil. Impacts caused by plants Unilever Brasil’s nine plants are located in the states of São Paulo, Minas Gerais, Goiás and Pernambuco. As in any manufacturing activity, the direct and indirect influence they have on the environment and local communities requires control, monitoring and specific activities to prevent and minimize social and environmental impacts. Water consumption, for example, is important in the foods category, where this resource is a major component in the manufac- 66 unilever brazil Sustainability Report 2012 reducing environmental impact ture of beverages such as AdeS and Kibon ice cream; it is also used intensively in cleaning production lines. For this reason, the Pouso Alegre (Minas Gerais) and Valinhos (São Paulo) plants have a significant weight in company water consumption indicators. Regarding emissions, the powdered detergent plants are responsible for a large part of our greenhouse gas atmospheric emissions. The Indaiatuba plant in São Paulo state accounts for 40% of our production volume and is responsible for around 40% of Unilever Brasil’s direct emissions (scope 1). The reason for this is its spray tower, a technology that transforms the detergent into powder. Valinhos is also important in this respect, with the highest rate of GHG emissions per tonne produced and responsible for 30% of our emissions in Brazil, mainly because of the use of steam in bar soap and ice cream production. There was a 12% reduction in relative water consumption during the year, resulting mainly from management and operational changes introduced at the Jaboatão dos Guararapes, Goiânia and Valinhos plants. The latter two also contributed significantly to the reduction of Unilever Brasil’s effluent generation, which showed a 9% decrease from 2011 to 2012. In relation to greenhouse gas emissions, we were unable to reach our target of maintaining the index below 2007 levels in absolute volume because of changes in the calculation coefficient used by the Ministry of Science and Technology (read more in Emissions Inventory). Considering only direct (scope 1) emissions, however, there have been significant advances over recent years, with a 10% decrease in 2012 against the base year of 2007. This improved performance is the result of the adoption of eco-efficiency measures and investment in new technologies, such as the boiler at the Pouso Alegre plant in Minas Gerais, which uses biomass to generate steam. Another priority in Unilever Brasil’s environmental policy, solid waste management improved in 2012 with a reduction in the volume of waste disposed of in landfills, in line with our sustainability strategy. The Goiânia, Indaiatuba, Vinhedo and Pouso Alegre plants achieved zero disposal in landfills during the year, and the other plants are working towards this target. We did not, however, reach our non-hazardous waste generation reduction targets, since our focus was on improving destination rather than decreasing volume (see more in Solid Waste). Hazardous waste generation targets were met both in our manufacturing and non-manufacturing operations. The table below shows our performance in the environmental targets established for 2012 in our last sustainability report. Performance in 2012 We have improved performance in priority environmental indicators at Unilever Brasil in recent years. We have progressed in waste management with measures to improve the treatment of waste from our processes. Regarding biodiversity, we have mapped the impacts our plants have on protected areas and threatened species, with significant progress towards achieving our commitments. We fulfilled the target of developing action plans for all the units, and most of the projects have already been executed (read more in Biodiversity). back to summary In 2012, we eliminated the disposal of solid waste in landfills at four plants. We also reduced water consumption by 12% and advanced in managing biodiversity. 67 reducing environmental impact unilever brazil Sustainability Report 2012 Performance in environmental targets – 2012 Indicator GHG Emissions Scope/area Scopes 1, 2 and 3 Target Achieved? Status 2012 total lower or equal to 2007 (257,000 tCO2e) Due to the increase in the Ministry of Science and Technology electricity factor, our emissions increased 13% against 2011. The increase against 2007 was only 1%. Water Manufacturing 5% reduction Absolute water consumption was 12% lower; at the plants it decreased from 1.47 m3/t produced to 1.29 m3/t produced. Water Nonmanufacturing 4% reduction There was an 11% increase in relative consumption. Read more in Water. Hazardous waste Manufacturing 5% reduction Generation was reduced from 0.32 kg/t produced to 0.27/t produced. Nonmanufacturing 5% reduction 21% reduction from 0.0059 kg/t to 0.0075kg/t sold. 5% reduction Increase in generation from 46.60 kg/t produced to 46.86 kg/t produced. Read more in Solid Waste. Hazardous waste Non-hazardous waste Manufacturing Non-hazardous waste Nonmanufacturing 4% reduction Volume increased from 3.22 kg/t produced to 3.95 kg/t produced. Read more in Solid Waste. Manufacturing Implement action plans at plants to manage biodiversity impacts More information about advances, commitments and status in Biodiversity. Biodiversity back to summary A major achievement in 2012 was the reduction in hazardous waste generation both in manufacturing and non-manufacturing operations. 68 unilever brazil Sustainability Report 2012 reducing environmental impact back to summary In the Reducing Environmental Impact pillar we have four global priorities: GHG emissions, water consumption, waste generation and disposal and sustainable sourcing. 69 unilever brazil Sustainability Report 2012 reducing environmental impact Lower impact in consumption According to a global Unilever study conducted in 14 countries, a large part of the environmental impact of our products is associated with the consumption phase. Based on an indicator that calculates greenhouse gas emissions throughout the product life cycle, we established that 68% of our greenhouse gas footprint is associated with use by the consumer. This kind of information was important in helping us to rethink the development of some products and make changes in manufacturing, in innovation and in the habits of the consumers using our brands. A trend in a number of countries, these products represent an opportunity for the industry to adopt more sustainable criteria in its production processes, benefiting all parties. With lower impacts in production and transportation, due to the higher concentration and reduced weight and volume of the packaging, the category also occupies less space at the point of sale and in consumers’ homes. The manufacturing and distribution processes, as well as the way in which the product is used, mean that concentrated liquids permit a reduction in CO2 emissions, water and waste; Omo, for example, uses 34% less water compared with diluted liquids. This represents a saving of 12.6 million litres per year, equivalent to 1,260 tanker vehicles. Concentrated Omo also uses 48% less plastic per portion and produces 43% less post-consumption solid waste. Concentrated fabric softeners can generate similar water savings. If all Comfort and Fofo users migrated to the con- GRI EN26, DMA EN Products and services centrated version, the annual saving would be 75 million litres. Comfort concentrated softener alone enabled Unilever Brasil to economise 22.2 million litres of water annually by the end of 2012, enough to supply more than 2,000 homes in the country with water during one month. Unilever pioneered the launch of concentrated liquid detergents and softeners in Brazil, and in 2012 became the leader of the liquids segment, which represents 13.5% of the total detergent market. The share of concentrates grew 77% compared with 2011. Between 2010 and 2012, we launched diverse products in the category, such as Surf Líquido Concentrado, OMO Líquido Super Concentrado and the concentrated Comfort and Fofo fabric softeners. As a means of gradually attracting users to this product line, we also launched a liquid version of OMO. In 2012, we launched 2 litre containers of concentrated Comfort and Fofo, further reducing impacts. The strategy to disseminate these products involves an advantageous pricing policy and actions at the point of sale in which we underscore the features of these innovations. Signs that this market segment is gaining strength in Brazil have led to the reinforcement of our business plan. Another important front for reducing environmental impacts is in the foods and ice cream categories, in which we have made a number of improvements in the consumption of packaging materials. A series of studies is underway to reduce waste generation without compromising product quality for the consumer. back to summary The commercialisation of concentrated liquids enables a reduction in our environmental footprint, greater efficiency in production and more responsible consumption. Some changes were implanted in 2012, as shown in the table that follows. In the personal care category, we launched a refill for Lux and Lifebuoy soap, with packs that consume 70% less plastic per tonne produced compared with the original versions. 70 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Initiatives to reduce Reductions product impacts - Packaging obtained Initiatives to reduce product impacts Packaging Reductions obtained Knorr Meu Arroz. Reduction of 43.9% reduction in cardboard density (from 250g/m2 to annual consumption 225g/m2) of cardboard Kibon 2L Pot (all variants). Reduction in density of cardboard supporting layer. 13% reduction in annual consumption of material Knorr Meu Arroz. Change in material in aluminium sachet to metallised BOPP 5.5% reduction in annual consumption of material. Kibon 2L Pot Recife (all variants). Reduction in density and weight of cardboard sleeve. 17.8% reduction in annual consumption of material Knorr Meu Feijão. Optimization of shipping carton columns 55% reduction in annual consumption of cardboard Kibon 2L Pot (all variants). New pot supplier, with reduced weight. 5.8% reduction in annual consumption of material. Ades 1.5L (all variants). Reduction of shipping carton column, with consequent reduction in weight 11.2% reduction in annual consumption of material Kibon 1.8L Pot Recife (all variants). Reduction in density and weight of cardboard sleeve. 17.8% reduction in annual consumption of material Mini Eskibon / Chicabon. Replacement of triplex cardboard with duplex, reducing density and weight. 7.4% reduction in annual consumption of material Kibon 2L Pot (all variants). Reduction in density and weight of cardboard sleeve. 11.4% reduction in annual consumption of material A comparison between the current 90g variant Launch of 170g variant of Closeand the 170g one shows a Up dental gel. reduction of almost 17% in packaging material. GRI EN26 We strive to reduce the packaging materials in our main product innovations. See some of the results in the table at the side 71 unilever brazil Sustainability Report 2012 Environmental investments In 2012, Unilever invested more than BRL 64 million in environmental protection, management and impact reduction practices and projects. The most part of these costs relate to waste treatment and disposal – given that one of our priorities is to dispose of these materials more efficiently – and in the development of new technologies. Regarding waste, costs were higher in function of improvements to cost controls in the non-manufacturing area and diverse changes in the destination of waste at the factories as part of the Zero landfill project, which required higher investment. In 2012, we reduced investment in equipment and materials because our Indaiatuba and Pouso Alegre plants did not incur costs with replacements and changes during the year. With respect to new technologies, the focus was on the Indaiatuba plant, where new packing lines were installed and a number of improvements were promoted. back to summary reducing environmental impact Environmental investment and spending 2011 Total 2012 Total 2011 Total 2012 Total Cost of waste disposal, emissions treatment and mitigation Environmental management services 1,121,729.78 466,375.06 11,073,756.02 14,494,050.61 Certification of management systems 105,248.42 102,799.40 Waste treatment and disposal 8,863,502.68 12,766,631.24 Environmental management activities 3,832.00 128.733.31 Emissions treatment 600,189.15 674,419.58 Research and Development 17,783.45 50,056.00 1,592,279.41 680,351.83 Technology installation 2,117,010.61 48,253,446.30 3,353.98 80,257.96 Green procurement 18,000.00 160,222.75 Environmental prevention / remediation 21,000.00 - Environmental protection 292,471.15 235,975.17 Environmental protection with prevention 63,113.00 - 229,358.15 235,975.17 14,933,195.87 64,059,510.82 Equipment and materials Environmental responsibility insurance Mitigation and remediation of environmental accidents Environmental prevention and management costs Greenhouse gas emissions inventory Training in environmental and environmental education area 14,430.80 3,566,968.70 69,757.50 292,390.00 49,329,485.04 44,695.42 Other costs 114,424.50 123,156.80 TOTAL Note: We identified an error in the total sum of costs in the 2011 report. We also encountered an error in the total costs with “Emissions Treatment “, which was corrected in this report. GRI EN 30, DMA EN Overall 72 unilever brazil Sustainability Report 2012 reducing environmental impact back to summary Solid waste More recycling, more effective destination With a target of halving waste from the disposal of our products by 2020, we invest in technology, processes and in engaging customers and suppliers On a global and local level, the main objective of Unilever’s solid waste strategy is to reduce the generation of materials for disposal and involve the value chain in measures to improve treatment and destination. In accordance with the Sustainable Living Plan, by 2020 total waste disposed of should be at or below 2008 levels, representing a reduction of 80% per tonne produced and an absolute reduction of 70% compared with 1995. This requires heavy investment in technologies and processes that generate less waste in production and include structured procedures at diverse stages of the product life cycle. Discontinued products or products with quality problems, for example, are treated at two operations, one in the Northeast and the other in the Southeast of the country, which render the items unusable and dispose of them properly. Since 2011, most food products unfit for consumption are sent for composting. Our priority in all manufacturing operations in 2012 was to improve destination, with a target of zero disposal in landfills for GRI Emissions, effluents and waste some units. The Goiânia, Vinhedo, Pouso Alegre and Indaiatuba plants achieved this target for the year. The plants in the Northeast, which have specific targets in this area, have difficulty in finding qualified partners to recycle materials. Consequently, the Igarassu, Ipojuca, Jaboatão dos Guararapes and Garanhuns units are developing a supplier management plan for the region. Mapping was initiated in 2012 (read more in Enhancing Livelihoods) and progress is expected for the next reporting cycle. In the non-manufacturing operations, the focus is on improving means of treatment and disposal, as well as reducing material consumption. An example is a project developed by trainees to reduce paper use in company offices which was put into practice in 2012. A challenge we still face is monitoring other areas of the company such as the distribution centres, many of which are managed by third-parties and depend on engagement measures to improve results. These and other questions are addressed in Brazil’s national solid waste policy (PNRS), which proposes a series of alterations in the way industry, government and society handle the question (read more in Sector Practices). The new legislation mandates changes in the collection, disposal, treatment and management of waste in the country. The schedule determines the gradual implementation of various measures, such as the regularization of landfills and the assumption of a series of obligations by companies between 2012 and 2014, in addition to increasing dry waste recycling by 20% by 2020. The new legal requirements and the long-term commitments we have assumed have led us to seek to involve the entire chain in sustainability projects, such as the Pão de Açúcar Unilever Recycling Stations, a programme run in partnership with one of our customers that has permitted the collection of more than 64 thousand tonnes of recyclable materials. 73 unilever brazil Sustainability Report 2012 reducing environmental impact Performance in 2012 ing disposal rather than decreasing volume. In the plants, the level was similar to 2011 with a 48% reduction in the volume of waste disposed of in landfills. The factory with the best result was Valinhos, mainly because of the lower number of product innovation tests on the ice cream lines. At Garanhuns, the reduction was due to work on improving sorting of food leftovers in the canteen, as well as improvements in machinery efficiency and loss prevention measures – which resulted in lower losses in starch (used in animal feed) and packaging material (recycled). At the Igarassu plant, we held a week-long food consumption reduction campaign. At Ipojuca, however, there was an increase in the generation of organic material due to a 14% increase in headcount. This came on top of an increase in the sludge removed from the wastewater treatment plant, impacting the volume of waste used in composting. In Pouso Alegre, problems were identified in the efficiency of the lines, with energy cuts and breakages. At Vinhedo, the main reason for the increase was the cleaning of the effluent treatment reservoir in order to seal it, increasing the generation of biological sludge. There was a significant increase in the non-manufacturing operations. This occurred because we initiated monitoring of non-hazardous waste generated by the Merchandising area in 2012. However, even discounting merchandising waste, achievement of the reduction target was compromised by an increase in the volume of product residues unfit for consumption rendered unusable in our DCs. With respect to the targets established for the year, results were good in the reduction of hazardous waste generation. Plant targets were met, mainly in function of reduced pitch residue production in the Valinhos glycerine refinery. This involved a series of measures, such as a reduction in the interval of filter changes, ensuring the disposal of the paste/solid mass and the reutilisation of the water in the process, the reduction of cleaning intervals, maintenance of filters and periodic reviews of operating standards. The Goiânia plant also showed a reduction in this indicator due to operational changes implanted in the tomato business in 2011. In the other plants, hazardous waste generation increased. In the Jaboatão dos Guararapes unit, this was due mainly to the introduction of new compressors in the utility area resulting in higher lubricating oil consumption. In Igarassu, there was also an impact due to vaccination campaigns conducted by the Health team. At Garanhuns and Pouso Alegre, broken light bulbs were replaced and some were substituted with more economical ones. At the Indaiatuba plant, the increase was due to equipment maintenance and the disposal of light bulbs that were previously stored. These increases, however, did not impact the overall result. In non-manufacturing, there was a 21% reduction in hazardous waste volume due to lower demand for ice cream freezer deactivation – the process of destroying, old, out-of-date or malfunctioning equipment. We had difficulty in achieving the non-hazardous waste targets set for the year. In general terms, the focus was on improv- GRI DMA EN Emissions, effluents and waste back to summary By 2020, total waste disposed of should be at or below 2008 levels, representing a 70% reduction in absolute terms compared with 1995. 74 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Waste generation and destination Specific waste generation by operation Hazardous Waste (kg/t produced) Non-Hazardous Waste (kg/t produced) Total Waste (kg/t produced) 2011 2012 2011 2012 2011 2012 Garanhuns 0.05 0.06 11.89 8.98 10.08 9.04 Goiânia 0.01 0.00 43.72 42.89 43.73 42.89 Igarassu 0.00 0.00 9.68 7.06 9.68 Indaiatuba 0.00 0.01 3.18 3.48 Pouso Alegre 0.04 0.05 173.29 Jaboatão dos Guararapes 0.05 0.23 Ipojuca 0.00 Valinhos Breakdown – Hazardous Waste per operation Breakdown – non-hazardous Breakdown total waste 2010 2011 2012 2010 2011 2012 2012 Garanhuns 0.13% 0.29% 0.38% 0.18% 0.39% 0.32% 0.32% 7.06 Goiânia 0.23% 0.24% 0.03% 56.51% 8.76% 7.35% 7.31% 3.18 3.49 Igarassu 0.06% 0.00% 0.06% 0.25% 1.14% 1.00% 1.00% 188.71 173.33 188.76 Indaiatuba 0.20% 0.21% 0.74% 1.61% 2.50% 2.65% 2.63% 165.55 166.86 165.60 167.09 Pouso Alegre 2.03% 1.77% 2.69% 24.32% 49.73% 53.00% 52.73% 0.00 35.70 47.63 35.70 47.63 Jaboatão dos Guararapes 0.55% 0.50% 2.47% 4.22% 11.02% 9.81% 9.77% 2.35 1.93 67.87 56.63 70.22 58.55 Ipojuca 0.00% 0.00% 0.02% 0.93% 2.54% 2.52% Vinhedo 0.51 0.47 16.84 16.97 17.35 17.44 Valinhos 80.71% 74.83% 67.97% 7.61% 14.09% 10.98% 11.29% Manufacturing total 0.32 0.27 46.60 46.85 46.53 47.13 Vinhedo 11.34% 19.98% 23.53% 2.13% 4.31% 4.64% 4.75% Non-manufacturing (kg/ t commercialized) 0.01 0.01 3.22 3.95 3.10 3.96 2.24% 6.10% 7.71% 7.68% GRI EN22 Nonmanufacturing 4.74% 2.16% 2.10% 1.96% 75 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Transportation of hazardous waste Percentage by destination of waste Hazardous Non-Hazardous Proportion of total waste 2010 2011 2012 2010 2011 2012 2012 Composting 0.00% 0.00% 0.00% 9.35% 19.51% 19.49% 19.38% Animal Feed 0.00% 0.00% 0.00% 36.08% 49.09% 50.74% 50.46% 13.05% 22.01% 28.75% 40.31% 7.96% 4.64% 4.77% Re-refining 2.71% 2.87% 4.55% 0.00% 0.00% 0.00% 0.02% Recycling 3.73% 14.63% 56.15% 7.70% 13.76% 15.99% 16.21% Incineration 1.73% 0.48% 1.25% 0.54% 1.21% 0.00% 0.01% 76.78% 57.01% 7.19% 0.00% 0.00% 2.59% 2.61% Landfill 2.01% 3.24% 2.12% 4.48% 6.32% 4.35% 4.33% Others 0.00% 0.01% 0.09% 1.53% 2.14% 2.21% 2.20% Reuse Co-processing Unilever neither imports nor exports hazardous waste. When we transport waste from one municipality to another, it is to ensure more environmentally appropriate disposal, which is not always possible close to the plant generating it. In 2012, the total hazardous waste transported increased due to higher generation at Pouso Alegre and the greater number of providers from São Paulo supplying this operation. The increase is also explained by the fact that in 2011 Jaboatão dos Guararapes did not transport waste to other states. Most of the waste generated by the Garanhuns operation is used in co-processing by companies in the state of Pernambuco. A smaller quantity is incinerated and the lubricating oil used in our equipment is sent for re-refining in Piracicaba (Saõ Paulo). Pouso Alegre transports its materials to São Paulo, mainly because of the service quality offered by the supplier, which is compliant with legislation and with internal Unilever standards. Hazardous waste transported (t) Hazardous waste transported and treated (kg)/tonne produced 2010 2011 2012 0.0105 0.0058 0.0142 (1) We altered the historical data due to a correction in the calculation, which took into account all destinations. GRI EN22, EN24 76 unilever brazil Sustainability Report 2012 reducing environmental impact Materials utilized We maintain a permanent dialogue with our production item suppliers to assess and foment the use of recycled material in their processes. Focus on reuse In 2011 and 2012, Unilever Brasil saw a 30% increase in the use of recycled materials among its major suppliers Material use is one of Unilever Brasil’s most important tools for monitoring our resource base and achieving the renewable materials targets set forth in our Sustainable Living Plan. n 2012, we resumed use of the methodology applied in our 2010 sustainability report to calculate the proportion of materials which are renewable or use recycled content among our production item suppliers. The results of this calculation methodology indicate that the personal and home care product categories use a higher proportion of recycled material for raw materials. An important consideration here are the legal restrictions on the use of recycled materials that come in contact with food products in the ice cream and food categories. GRI EN2, DMA EN Materials back to summary In comparison with the results in 2011, the changes may be explained mainly by the alteration in the criteria for choosing the suppliers to be consulted – around 54 in 2012. Results were positive throughout the year (see tables). Based on spending and the suppliers who responded to our survey in 2012 and 2011, there was a 30% increase in the use of recycled material, which is aligned with Unilever policy of consuming more sustainable materials. 77 Recycled materials used Total per category - Inputs/ Raw materials recycled pieces used % of recycled materials 40,751,733 3% ICE 6,803,352 4% HPC 62,986,003 2% 110,541,087 3% Foods TOTAL back to summary reducing environmental impact unilever brazil Sustainability Report 2012 2012 2011 toneladas peças Litros toneladas peças Litros 120,238 0 0 110,957 188,200 0 9,640 0 0 10,781 955,128 279,793 HPC 411,173 4,994,933 0 986,494 0 0 TOTAL 541,051 4,994,933 0 1,108,232 1,143,328 279,793 Foods Ice cream Total per category - Packaging 2012 2011 tonnes pieces litres tonnes pieces litres 2,099 2,995,920 1,296,607,215 112 3,751,006 1,928,247 Ice cream 653 0 170,465,534 0 10,945,320 324,228 HPC 893 0 2,577,792,608 360 28,129,532 5,414,747 3,645 2,995,920 4,044,865,357 472 42,825,858 7,667,223 Foods TOTAL GRI EN1, EN2 78 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Total volume of materials (inputs + packaging) and percentage (renewable and non-renewable), per category 2012 tonnes 122,337 2% 98% 10,293 0% 100% 412,066 82% 18% 544,696 62% 38% Foods % non-renewable Foods % renewable Foods ICE % non-renewable ICE % renewable ICE HPC % non-renewable HPC % renewable HPC TOTAL % non-renewable TOTAL % renewable TOTAL metres 2,995,920 100% 0% 0 0 2,995,920 100% 0% 2011 tons 1,296,607,215 52% 48% 170,465,534 83% 17% 2,582,787,541 65% 35% 4,049,860,290 62% 38% tonnes 111,069 0% 100% 10,781 0% 100% 986,855 81% 19% 1,108,705 72% 28% metres 3,751,006 78% 22% 10,945,320 100% 0% 28,129,532 89% 11% 42,825,858 91% 9% tons 2,116,447 39% 61% 1,279,356 19% 81% 5,414,747 61% 39% 8,810,550 49% 51% Volume and percentage of materials (renewable and non-renewable), by type (input and packaging) 2012 INPUTS PACKAGING GRI EN1, EN2 Total Renewable Non-renewable Total Renewable Non-renewable tonnes 541,051 38% metres 0 - 62% 3,645 51% 49% 2,995,920 0% 100% tons Litres 4,994,933 0 4% 96% 4,044,865,357 38% 62% 0 - 2011 tonnes 1,108,232 28% metres 0 - tons 1,143,328 97% litres 279,793 100% 72% 472 7% 93% 42,825,858 9% 91% 3% 7,667,223 44% 56% 0% 1 50% 50% 79 unilever brazil Sustainability Report 2012 reducing environmental impact Pão de Açúcar Unilever Recycling Stations Programme vironmental benefits which are aligned with the new Brazilian national solid waste policy. In eleven years, we have collected more than 64 thousand tonnes of material for recycling. The amount collected in 2012 was more than 12 thousand tonnes, 14% up on the previous year. The material collected is donated to 37 partnering cooperatives, generating direct and indirect work posts and benefiting more than 1,700 families per month. Since 2007, we have collected more than one million litres of oil, most of which is used in the production of biofuels. Whereas aerosol spray cans, collected at the Pão de Açúcar stores in São Paulo since 2010, are a challenge for the industry: the correct disposal of these packs, which contain a number of gases kept at high pressure within an aluminium container, requires the development of special partners and consumes a large quantity of energy. A total of 6.5 tonnes of aerosols have been collected at 16 stores over a two-year period. We believe that this project constitutes an important contribution to proper waste disposal in the industry, in particular from the perspective of shared responsibility. The diverse agents involved benefit from the process: the company, which as the manufacturer, reduces the environmental impact of its products; our customer, as a retailer, who reinforces waste management within its business; our consumers, who dispose of their domestic waste correctly; and partners in the recycling chain, who are able to commercialize the material at a competitive price and build a business that generates environmental, social and economic benefits for the entire chain. Joint solution A joint programme with one of our customers enabled the collection of more than 64 thousand tonnes of recyclable materials Since 2001, Unilever’s main initiative at the final stage of the product life cycle has been the Pão de Açúcar Unilever Recycling Stations Programme, which enables consumers to dispose correctly of packaging, containers and diverse materials, including paper, glass, plastic, metal and cooking oil. Developed in partnership with one of our major customers in Brazil, the programme is in place in eight states and in the Distrito Federal, with stations located at 124 retail outlets. Unilever’s OMO, AdeS, Knorr, Seda, Rexona and Comfort brands sponsor the initiative. The stations are built from recycled materials and function on the basis of voluntary delivery by consumers. As such, they support the business chain, offering social, economic and en- GRI EN26, EN27 e EC9, DMA EN oducts and services, DMA SC Biofuels back to summary Results –Pão de Açúcar Unilever Recycling Stations Stations 124 Distribution in Brazil Eight states + Distrito Federal 34 municipalities Partnering cooperatives 37 Work posts (direct and indirect) generated 1,731 Total volume collected (2001-2012) 64.449.947,3 kg Total volume collected (2012) 12,505,569 kg Total volume collected (2011) 10,953,008.7 kg Oil collected in 2012 319,508.8 l or 287,557.9 kg 80 unilever brasil relatório de sustentabilidade 2012 reducing environmental impact back to summary Globally Unilever is committed to halving its product life cycle greenhouse gas impact by 2020. 81 unilever brazil Sustainability Report 2012 reducing environmental impact back to summary Greenhouse gas emissions A challenge for the entire chain Initiatives to reduce greenhouse gas emissions involve production processes and value chain impacts Globally Unilever is committed to halving its product life cycle greenhouse gas impact by 2020. This target is even more ambitious in the light of a study coordinated globally by Unilever, which suggests that from a life cycle perspective, the most critical phases are sourcing and manipulating raw materials and the consumption of our products. Together, they account for 94% of the company’s GHG emissions. According to the survey, only 6% are generated by manufacture, transportation and disposal. These numbers do not reflect some peculiarities of the Brazilian reality – we do not use hot water to wash clothes, as many European countries do, for example, and the main means of transportation both for cargo and passengers in Brazil is road –, but they underscore the need for focus on the entire value chain. Consequently, we strive to improve indicators at every stage of the product life cycle, from the development of a project and the use of sustainable technologies and energy sources in manufacturing processes to distribution. We also seek to use more effi- GRI DMA EN Emissions, effluents and waste cient vehicles and modes of transportation in partnership with suppliers and distributors, in addition to promoting changes of habit among consumers of our brands. In Brazil, we have progressed significantly in recent years, both in monitoring and managing indicators and in reducing our life cycle emissions footprint. 2012 was the deadline for the target established in 2008 in our UB2012 strategy: to end the year with GHG emissions lower (in absolute volume) than in 2007, a level we had maintained since 2008. The company’s results were excellent during these years, with emissions at levels lower than 2007 from 2008 through 2011. However, it was not possible to meet this target in 2012, mainly in function of the 134% increase in the coefficient used to calculate electricity emissions stipulated by the Ministry of Science and Technology (read more in Emissions Inventory). The good performance we have shown in recent years is a result of the focus on eco-efficiency in our plants and in lo- gistics activities and the development of sustainability-oriented partnerships and projects with suppliers and customers throughout Brazil. Unilever runs ongoing evaluation and engagement programmes revolving around social and environmental factors throughout its supply chain (read more in Enhancing Livelihoods). The company also seeks to engage customers in relation to their logistics activities and environmental responsibilities, Similarly, through communication and promotions consumers are constantly encouraged to adopt habits that reduce GHG emissions, such as using concentrated liquid products. In the distribution chain, we progressed with the establishment of global group based in Switzerland, dedicated to discussing and promoting impact reduction. In 2012, we implemented improvements in some plants, worthy of note being the biomass-powered boiler at Pouso Alegre (read in box), which permitted a significant reduction in emission 82 unilever brazil Sustainability Report 2012 reducing environmental impact levels. Other units that use biofuels in their boilers are Garanhuns and Goiânia. In general terms, these initiatives are aligned with a strategy that takes into account business risks and opportunities related to social and environmental questions. The Unilever Sustainable Living Plan also addresses the question of climate change and in Brazil a project developed by trainees approached the theme from the perspective of the GRI guidelines. All areas were considered and studied to identify the risks and opportunities arising from environmental and regulatory changes and the emergence of new technologies, for example. In practice, we calculate the financial implications of these risks and opportunities, but do not disclose this information because it is deemed to be strategic. Similarly, in 2011 the SHE area concluded a CO2 emissions roadmap which enables us to identify medium and long-term trends and opportunities. this end, we have developed a series of projects with customers, suppliers and other partners to optimize transportation by reducing the mileage covered and increasing vehicle occupancy rates (read more in Customers). In 2012, the emissions avoided totalled 16,129 tCO2e, equivalent to removing 268 heavy goods vehicles from the roads. Some of the logistics efficiency projects in place throughout 2012 are detailed below. Lower logistics impact From the manufacturing stage to the point of sale, our products circulate between our plants, distribution centres and our customers’ facilities. Consequently, we observe the different phases of the chain to develop plans to reduce our carbon footprint in logistics, which today represents more than 50% of the company’s CO2 impact - according to our Greenhouse Gas Inventory. In the Unilever Sustainable Living Plan, the company committed to a 40% reduction in logistics emissions by 2020. To GRI EN18, EN26, EN29, EC2, DMA EN Transport Static circuit and backhaul In 2005, Unilever initiated a new merchandise transportation model known as the static circuit. This consists of the connection of two or more points via closed routes with periodic cycles and predetermined volumes. This reduces the number of trips with empty vehicles and cuts logistics costs for all the parties involved. With this model, we avoid having a lorry take a cargo to the Northeast and returning empty to a unit in Minas Gerais, for example. In conjunction with partnering companies, a cargo is found to supply the market on the return journey. At the end of 2012, there were 16 active static circuits in operation in Brazil. Another important initiative is backhaul operations. These also consist of static circuits, but in this case in conjunction with our customers. There were 11 backhaul routes in place at the end of 2012. Together, the static circuit and backhaul projects meant that Unilever Brasil avoided emissions of 664.6 tonnes of CO2eq compared with 2011. This was equivalent to removing 11 heavy goods vehicles from the roads. back to summary Efficiency in the plants Measures adopted in the company’s plants in 2012 permitted a 3,688 CO2 tonne equivalent reduction in our total emissions. In Garanhuns (PE), we achieved a 18.04 CO2e reduction through initiatives to reduce energy consumption, to optimize the use of electrical equipment (such as air compressors and ventilation systems) and to use vegetable oil – which has fuelled the plant’s boiler since 2011. In Pouso Alegre (MG), we substituted the fuel oil (LFP) boilers with a biomass-powered model. This new technology has resulted in a 3.569 t CO2e reduction since it was installed in August 2012, the result of a 67% decrease in the use of LFP oil. Fuelled by wood chips, the equipment, consisting of a 30-metre chimney and an 800 cubic metre silo, has amplified the plant’s clean energy matrix. In Indaiatuba (SP), turning the compressor off at peak times (6 p.m. to 9 p.m.) generated an 89.79 t CO2e reduction (read more in Energy). 83 unilever brazil Sustainability Report 2012 Double Trailer In use since 2011, this system employs seven-axle vehicles that carry twice as much cargo as conventional semi-trailers. This reduces the number of journeys and reduces fuel consumption and GHG emissions by almost 50%. In 2012, we included another route, totalling three circuits between the Southeast and Southern regions. This enabled CO2 e emissions avoidance of 307 tonnes compared with 2011, the equivalent of removing five heavy goods vehicles from the roads. tres – and another five on the sales area, where products are transported from our centres to the customer’s facilities (read more in Customers). The focus was also on reducing idle capacity and the mileage covered by vehicles. In the transfers, we unified domestic cleaning and personal care product loads to maximize vehicle occupancy without jeopardising quality standards. In the sales area, the objective was to unify cargos to avoid idle capacity and to determine vehicle and fleet profiles in accordance with type of customer and cargo volume. In 2012, the projects permitted emissions avoidance of 1,851 tCO2e compared Production reallocation Three projects carried out by Unilever Brasil brought produc- with the previous year, the equivalent of removing 30 heavy goods tion closer to our customers, reducing the distances covered in vehicles from the roads. product transfers and sales. In one of them, powdered detergent production was partially reallocated from Indaiatuba (São Paulo) Alternative modalities to Igarassu (Pernambuco) to supply the local market. Geographical factors and infrastructure in Brazil represent a In the opposite direction, one of our ice cream lines was trans- challenge in the adoption of alternative, lower impact transporferred from Jaboatão dos Guararapes (Pernambuco) to Valin- tation modalities for our logistics processes. Issues with qualhos (São Paulo), and a Seda shampoo line was switched from ity and delivery efficiency, together with financial considerations, Ipojuca (Pernambuco) to Vinhedo (São Paulo). These transfers led us to discontinue the rail transportation that had been in use enabled emissions avoidance of 4,649.5 tCO2eq up to September on some routes. 2012 – the equivalent of removing 77 heavy goods vehicles from One system we use is cabotage, alternating waterway transthe roads. portation with road transportation. This system is applied on routes between the cities of Santos (SP), Ipojuca (PE) and ForFreight optimization taleza (CE), as well as Manaus (AM), leading to an estimated reThere were seven freight optimization projects during 2012: duction in emissions of 8,657 tCO2e in 2012 in comparison with two were focused on transfers – that is, transportation between road transportation – the equivalent of removing 144 heavy goods our plants and distribution centres or between distribution cen- vehicles from the roads. GRI EN18, EN26, EN29 back to summary reducing environmental impact Kibon cabinets To reduce energy consumption and GHG emissions associated with our non-manufacturing operations, we are replacing all Kibon freezers at points of sale with equipment using a new technology whose global warming potential is 99% lower. This initiative resulted from a partnership established between Unilever and the Ministry of the Environment in 2011 (read more in Governments and Institutions). The new freezers use the refrigerant R290, which does not affect the ozone layer and has a much lower greenhouse impact than other gases used in similar systems, such as R404 and R134. The short-term target we had established of substituting the refrigerant in 20% of the freezers by the end of 2012 was exceeded: by the end of the year 62% of the cabinets were already using R290 gas. Furthermore, we exceeded the target of 20% set for the reuse and recycling of freezer components at the end of their working life by the end of 2012. We reached a recycling rate of 100%, particularly worthy of note being the uses found for polyurethane. 84 unilever brazil Sustainability Report 2012 Emissions inventory The main tool used to manage greenhouse gas emissions in Brazil, since 2008 Unilever’s emissions inventory has been based on the GHG Protocol – an internationally recognized methodology which permits historical analysis and the definition of metrics to measure an operation’s carbon footprint. We have gradually increased the scope of the inventory; today it covers not only direct emissions and emissions from the purchase of electricity (scopes 1 and 2), but also indirect emissions (scope 3), such as those generated by third-party product distribution. Since 2010, our inventory has been gold seal certified, attesting to the accuracy of the data with verification by external audit. In 2012, we did not achieve our target of maintaining GGEs below the absolute amounts for 2007. The main cause of this was the 134% increase in the co-efficient used to calculate electricity emissions stipulated by the Ministry of Science and Technology. If the conversion factor used in the previous year had been maintained we would have met this target easily (read more in Emissions Inventory). In 2012, Unilever Brasil emissions were 1% above the reference period. The comparison with 2011, however, shows a 13% increase in emissions, which totalled 258,872.43 tonnes of CO2 e. GRI EN16 e EN17, DMA EN Emissions, effluents and waste reducing environmental impact back to summary Unilever Brasil has elaborated its emissions inventory based on the GHG Protocol since 2008, gradually broadening its scope. Today it includes direct emissions, those from the purchase of electricity (scopes 1 and 2), as well as indirect emissions, such as those generated by third-party product distribution (scope 3). 85 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Direct and indirect greenhouse gas emissions (tonnes CO2 equivalent) 2007 2008 2009 2010 2011 2012 Scope 1 107.111 105.077 96.952 100.055 92.015 95.813 Scope 2 21.722 21.310 11.551 25.566 13.676 36.416 Scope 3 127.860 125.433 114.080 129.261 122.782 126.644 Total 256.693 251.820 222.582 254.882 228.473 258.872 Comparative greenhouse gas emissions 2011/2012 Absolute variation in tCO2e Percentage variation Scope 1 3,798 4% Scope 2 22,740 166% Scope 3 3,862 1% 30,399 11% Total GRI EN16, EN17 86 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Emissions by scope and operation (t CO² equivalent) Scope 1 Scope 2 Scope 3 % in relation to total emissions 17 121 469 0.2% Goiânia 619 1035 0 1% Igarassu 3178 870 226 2% Indaiatuba 36762 3698 0 16% Pouso alegre 11433 2223 256 5% 2652 1844 431 2% 751 557 0 1% Valinhos 28748 3717 0 13% Vinhedo 2917 955 0 1% 87078 15021 1382 40% 7218 20958 125217 59% Sales 960 6 0 0.4% Research and development, offices 557 431 45 0.4% 8735 21395 125261 60% 95813 36416 126644 100% Garanhuns Jaboatão dos Guararapes Ipojuca Manufacturing Distribution Non-manufacturing TOTAL GRI EN16 e EN17 87 unilever brazil Sustainability Report 2012 reducing environmental impact back to summary Water A focus of action and attention Investment in reuse and other eco-efficiency measures have helped reduce consumption of this essential manufacturing resource In its 190 operations worldwide, Unilever strives to reduce water consumption at all phases of the product life cycle, with a particular focus on the cultivation of raw materials, manufacturing and use by the consumer in the home. This objective is driven by water scarcity in diverse parts of the world - including developing countries in which the company aims to grow and considers to be priority markets, such as China, Mexico, Indonesia, India, South Africa, Turkey and the United States. Even though Brazil is not part of this group, the issue is a priority for the company in the country, particularly in view of water scarcity in the Northeast region, limited access to treated, clean water and water stress in environmentally degraded locations. Another sensitive point is the impact of urban or industrial occupation, as is the case with the water basins of the Capivari, Jundiaí and Piracicaba rivers where, respectively, our Valinhos, Vinhedo and Indaiatuba plants are installed. GRI DMA EN Water Our approach to water management at Unilever Brasil has a dual focus. On the one hand, we develop eco-efficiency projects at our plants, offices, research and development facilities and distribution centres and, on the other, educational measures aimed at encouraging consumers to use this resource responsibly with our products. The Unilever Sustainable Living Plan provides global data showing the importance of focusing on these two fronts: our analyses indicate that water consumption in the life cycle of company products is intimately linked with the usage stage (50%) and also with the cultivation of agricultural raw materials. The major part of our water footprint is associated with the detergent and fabric softener category (38%), followed by personal hygiene products, such as soaps, bath gels and skin care items (37%). With respect to the consumer, Unilever Brasil strives to develop products that require less water when they are used and contain less water in their composition – the case of liquid and concentrated cleaning products, for example. The units requiring most water for production processes are those in the foods categories, due to the composition of the products and the need for more frequent washing of the production lines to guarantee quality. Internally, we also run operating efficiency and employee awareness projects. In 2012, we achieved a 12% reduction in relative water consumption compared with 2011, against a target of 5%. This was due mainly to the Goiânia, Valinhos and Jaboatão dos Guararapes plants. The first two underwent partial modification in 2011, respectively because of the sale of the tomato products business to Cargill and the termination of margarine production. Even so, a comparison of the months after the operational changes shows reductions of 24% and 8% respectively. 88 unilever brazil Sustainability Report 2012 reducing environmental impact back to summary Our priority in manufacturing operations in 2012 was improving disposal of solid waste. By the end of the year we had eliminated disposal in landfills at four plants. 89 unilever brazil Sustainability Report 2012 The only plant showing a significant increase in absolute water consumption was Vinhedo; this was mainly due to increased production volume. Another less significant influence was a quality project requiring higher water volumes for cleaning and sanitising the bottling lines. In the non-manufacturing operations, there was an 11% rise in the relative indicator caused by a significant increase in water consumption at the distribution centres. A leak in the water mains entry valve and cleaning of the water tank at the Nilcen DC and an increase in headcount at the Louveira DC were the main reasons we did not reach the target of reducing consumption by 4%, in cubic metres per tonne produced, at these facilities. Other non-manufacturing operations in which water consumption increased were the JK2 and Rochaverá offices. This was the result of increased demand by the occupants, mainly in the use of air conditioning. back to summary reducing environmental impact Percentage of total consumption by operation Operation 2010 2011 2012 0% 0% 0% Goiânia 44% 22% Igarassu 1% Indaiatuba 2011 2012 Garanhuns 0.23 0.17 17% Goiânia 3.43 2.59 1% 2% Igarassu 0.39 0.28 6% 8% 8% Indaiatuba 0.30 0.30 15% 24% 28% Pouso Alegre 2.58 2.61 Jaboatão 9% 13% 11% Ipojuca 1% 2% 2% Jaboatão dos Guararapes 6.14 4.92 Valinhos 15% 16% 16% Ipojuca 0.94 0.95 Vinhedo 7% 10% 12% Valinhos 2.32 2.19 Vinhedo 1.19 1.21 Manufacturing total 1.47 1.29 Nonmanufacturing total 0.06 0.06 Garanhuns Pouso Alegre Nonmanufacturing1 2% 3% 4% 1. The amount was altered due to an error encountered in the 2011 calculation 2. We revised the water supplied by utilities at Indaiatuba, taking mineral water into account. GRI EN8 Relative consumption (m3/t) 90 unilever brazil Sustainability Report 2012 In 2012, we increased the percentage use of ground water, reducing use from other sources, mainly in function of the Pouso Alegre, Valinhos and Jaboatão dos Guararapes operations. Pouso Alegre had a proportional reduction in the use of water supplied by utilities and a proportional increase in the consumption of ground water. This was the result of greater control on the Ades and Knorr production lines and day-to-day monitoring of this indicator. As a result, there was a decrease in the purchase of more expensive emergency water supplies, while observing well replenishment needs and the withdrawal volumes authorized by the environmental body. Valinhos increased its proportional consumption of ground water and reduced use of surface water. This was the result of higher volumes of reuse in the soap plant and the treatment plant, which use surface water. The higher consumption of ground water was due to the ice cream plant, where production was increased in 2012. At Jaboatão dos Guararapes, the increased consumption of ground water was in function of the reactivation of a well. GRI EN26, EN8 back to summary reducing environmental impact Relative water consumption by source in the plants (m3/t produced) Percentage of water used by source (manufacturing and non-manufacturing) 2010 2011 2012 2010 2011 2012 Surface water (rivers, lakes, wetlands, oceans) 1.08 0.55 0.42 Surface water (rivers, lakes, wetlands, oceans) 56% 36% 31% Ground water 0.66 0.71 0.74 Ground water 35% 47% 55% Municipal supply or other utilities 0.11 0 0.13 Municipal supply or other utilities 9% 17% 14% 91 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Consumption reduction measures Sources by Unit 2011 2012 Surface Ground Utility Surface Ground Utility 0% 100% 0% 0% 100% 0% 100% 0% 0% 100% 0% 0% 0% 100% 0% 0% 100% 0% 91% 9% 0% 90% 9% 1% Pouso Alegre 0% 93% 7% 0% 97% 3% Jaboatão dos Guararapes 0% 34% 66% 0% 40% 60% Ipojuca 0% 0% 100% 0% 0% 100% Valinhos 45% 49% 6% 44% 53% 3% Vinhedo 0% 100% 0% 0% 100% 0% NonManufacturing 0% 0% 100% 0% 0% 100% 36% 47% 17% 31% 55% 14% Garanhuns Goiânia Igarassu Indaiatuba Unilever GRI EN26, EN8, DMA EN Water Goiânia Inspections for leakages using factory shutdown checklist; environmental awareness campaign; reuse of treated water and replacement of faucets with ones containing sensors at entrance to factory. »» Jaboatão Periodic inspections from effluent treatment plants to manufacturing area and educational campaigns; improvement project in moulded line, with individualisation of lollypop demould bath. »» Valinhos Reuse of water in following activities: ice cream homogenizer, effluent treatment plant, water treatment plant and soap condensers. »» Garanhuns Educational and awareness campaigns on rational use of water; leakage detection; daily monitoring of water consumption to detect deviations and optimise cleaning of Karo production lines and tanks. »» 92 unilever brazil Sustainability Report 2012 back to summary reducing environmental impact Igarassu Withdrawal and impacts on water sources Introduction of daily monitoring enabling rapid detection of deviations, monitoring and maintenance of instruments, and in The water used in our production processes is withdrawn creased reuse of wastewater through restricting runoff. from the ground and from surface sources; the company also resorts regularly to utility supplies. All the operations comply with stipulated limits and with environmental legislation in order not Reuse and recycling to impact the sources they use. According to GRI criteria, we exercise significant impacts We consider the reuse and recycling of water fundamental for over five water sources used by our plants. In two of them, Garareducing our consumption indicators while increasing produc- nhuns and Igarassu (Pernambuco), we withdraw more than 5% of tion. In 2012, we managed to increase our water recirculation the flow of the underground water body. At Indaiatuba, Valinhos rate by two percentage points, reaching 9%. and Goiânia, we withdraw water from surface sources located The Valinhos plant contributed most to the improvement in in permanent preservation areas (APP), as defined by Brazilian this indicator by refining reuse in diverse processes such as legislation. wastewater treatment, backwashing of filters, condensers and All the sources we use have a high value for the surroundice cream homogenizers. Vinhedo also made an important con- ing communities, with the exception of Valinhos, where our study tribution with improvements to its effluent treatment plant and indicated that availability in the region is high. With respect to biodiversity value, we do not consider this to be high in the aquimore effective filter cleaning processes. At Pouso Alegre, reuse was applied in the homogenizers, in the fers we use due to the low levels of light and development of life effluent treatment plant, and in the automatic return of water from forms. In the case of the two surface water sources, these are the boiler condensate. At the Igarassu plant, we increased pow- classified as “Class 3 and 4” by law, having medium and low biodered detergent production, a process which also permits the reuse diversity value. We are unable to state whether our impact is significant in the of water. This enabled us to eliminate the generation of industrial effluent and reuse 100% of this water in the production process. At other five water sources we use. The aquifers are not located in Ipojuca, we acquired a new pump to increase reuse in gardens and protected areas, but we do not know whether we consume more toilet facilities. However, the reutilization rate dropped because of than 5% of the volume of the water body. There are only studies the decrease in production and the consequent decrease in the vol- available at Pouso Alegre (Minas Gerais) showing that our withdrawal does not have a significant impact on the water table. ume of effluent that could be treated and reused. »» GRI EN9, EN10, DMA EN Water Percentage of water recycled /reused in relation to total consumed1 2010 2011 2012 Unilever Total 11% 7% 9% Garanhuns Goiânia Igarassu2 Indaiatuba2 Pouso Alegre Jaboatão dos Guararapes Ipojuca Valinhos3 Vinhedo Nonmanufacturing 0% 16% 0% 57% 0% 0% 3% 6% 61% 1% 0% 5% 13% 63% 1% 0% 0% 0% 19% 0% 2% 20% 1% 4% 18% 6% 6% 0% 0% 0% 93 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Water sources affected by Unilever Brasil operations Significant withdrawals Total of significant sources Garanhuns Withdrawal from source is 5% or more of annual average volume High probability of withdrawal causing significant impact according to specialists Are water bodies from which water is withdrawn in protected areas? 2 No source offers high probability of causing significant impacts 9% No. In compliance with limits determined by local environmental no body to ensure withdrawal does not cause impact. Type of source Volume of water body (m³/h) Volume withdrawn (m³/h) 3 Aquifer (ground water) 11.2 0.96 Biodiversity value of water body Value/ importance of source for local community No source having high biodiversity value 7 with high value Low value-Aquifer High value (low volume available to local community) Continuation GRI EN9 94 Significant withdrawals Goiânia Igarassu Withdrawal from source is 5% or more of annual average volume High probability of withdrawal causing significant impact according to specialists 0.02% No. In compliance with limits APP determined by environmental body. Meia Ponte river (Surface withdrawal) 11% No.In compliance with limits no determined by environmental body. Aquifer (ground water) 40.72 2% No. In compliance with limits APP determined by environmental body. Jundiaí river (Surface withdrawal) na No. In compliance with limits no determined by environmental body. Aquifer (ground water) na No. In compliance with limits no determined by environmental body. Indaiatuba Pouso Alegre back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Are water bodies from which water is withdrawn in protected areas? Type of source Aquifer (ground water) Biodiversity value of water body Value/ importance of source for local community Low value-Class 4 High value (low water quality in region, e.g. pollution and silting). 4.56 Low value-Aquifer High value (low value to local community) 3,340.8 70 Low value-Class 4 na 5.8 Low value-Aquifer Volume of water body (m³/h) 565,200 na Volume withdrawn (m³/h) 130 na Low value-Aquifer High value (low availability of ground water in region). High value (low availability of ground water in region). Continuation GRI EN9 95 Significant withdrawals Jaboatão dos Guararapes Withdrawal from source is 5% or more of annual average volume High probability of withdrawal causing significant impact according to specialists na No. In compliance with limits determined by environmental body. no Aquifer (ground water) na na No. In compliance with limits no determined by environmental body. Aquifer (ground water) na na No. In compliance with limits APP determined by environmental body. Valinhos Invernada river (Surface withdrawal) na na No.In compliance with limits determined by environmental body. Valinhos Vinhedo back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Are water bodies from which water is withdrawn in protected areas? no Type of source Aquifer (ground water) Volume of water body (m³/h) na Biodiversity value of water body Value/ importance of source for local community 558 Low value-Aquifer High value (low availability of ground water in region). 21 Low value-Aquifer Volume withdrawn (m³/h) 16 36 Medium value Class 3 Low value-Aquifer Medium value (high availability in region) High value (low availability of ground water in region). *Observation: Ipojuca uses only water supplied by utilities GRI EN9 96 unilever brazil Sustainability Report 2012 reducing environmental impact back to summary In 2012, changes in management and some plant operations enabled a 12% reduction in relative water consumption compared with 2011. The target for the year was 5%. 97 unilever brazil Sustainability Report 2012 reducing environmental impact back to summary Effluents Reusing wastewater Improvement in treatment and water reuse reduced effluent generation by 9% Effluent management involves both improvements to treatment and the reduction of wastewater in our operations – which is also affected by water consumption targets. We are committed to ensuring discharges preserve the quality of water bodies in line with the country’s environmental standards. Considering Unilever’s operations in Brazil as a whole, effluent generation is a more salient question for the foods category. Consequently, the Goiânia, Pouso Alegre, Jaboatão dos Guararapes and Valinhos plants have a greater weight in this indicator. In addition to monitoring the volume of effluents discharged by all our operations, we accompany the treatment methods and quality at each unit, extending this control to the companies contracted to treat our effluent. In 2012, Unilever Brasil reduced wastewater generation by 9%, mainly in function of improvements undertaken in the Goi- GRI DMA EN Emissions, effluents and waste ânia and Valinhos plants. In the former, we modified the drainage process, making it possible to remove substances previously absorbed by the wastewater and use them in co-processing. In Valinhos, results improved due to the implementation of water reutilization in effluent treatment plant processes, soap production and backwashing of the ice cream filters and homogenizers. The installation of an equalization tank improved the stability of the biological processes, also contributing to the positive results. Other operations which showed significant reductions in effluent generation were Garanhuns, where a number of measures were adopted to reduce consumption (read more in Water), and Ipojuca, where production was decreased, the washing process was standardized and daily monitoring of generation improved. The only operations in which effluent volumes increased significantly were Indaiatuba and Igarassu. In the former, there were problems due to the infiltration of rainwater in the collection networks, where it mixed with the effluent awaiting treatment. At Igarassu, we installed an effluent treatment plant and initiated control of effluent that was previously contained in a septic tank, infiltrating the soil. 98 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Treatment Methods 2010 2011 2012 Discharges in Quantity external effluent discharged * treatment plants (m³) (m³/year) Discharges in Quantity external effluent discharged treatment plants (m³) (m³/year) Discharges in Quantity external effluent discharged treatment plants (m³) m³/year Garanhuns (1) 1 – Internal treatment: anaerobic treatment in septic tanks followed by deposition in soil via a system of 49 infiltration trenches 2 - External treatment: sludge treated in external plant and then composted. 7,245 - 7,381 70 5,107.70 1,399,443 - 552,057 - 447,358.83 - 956 - 1,472 8,540.00 21,070 - 23,019 - 30,664.00 - Chemical and biological treatment. Pouso Alegre 378,979 586 401,686 315.85 395,646.53 - Chemical and biological treatment Jaboatão dos Guararapes 242,500 - 280,199 - 293,767.00 6,615 Ipojuca 17,307 - 15,642 - 8,565.10 - Valinhos 283,502 21,605 210,434 19,837 147,719.00 41,000 - 33,153 608 34,312.00 210 2,391,046 23,147 1,523,571 22,303 1,371,680 23,477 Goiânia Igarassu (2) Indaiatuba Vinhedo (3) Total - Effluent treatment plant: Primary and secondary treatment with biological reservoirs. 558.68 Activated sludge Physical-chemical treatment, followed by sludge activated by prolonged aeration. Primary treatment, physical-chemical and biological. 16044 Physical-chemical and biological treatment Industrial treatment: physical-chemical and biological (1) The volume of external effluent in 2011 was revised because the sludge treated in the treatment plant was classified as waste rather than effluent. (2) The volume at Igarassu was measured by the average m3/day of treated effluent at the treatment station. A meter will be installed this year. (3) Externally treated effluents were not reported by the Vinhedo operation in 2011, therefore we had to revise all the operation’s records. GRI EN21 99 unilever brazil Sustainability Report 2012 reducing environmental impact To guarantee the quality of the treated effluent we monitor certain parameters, such as chemical oxygen demand (COD). During the year, there was a COD reduction of approximately 60%, driven mainly by the Jaboatão and Valinhos plants. Some factors contributing to this performance at Jaboatão were training of the treatment plant team, fulfilment of the treatment plant maintenance plan, modernization of the air blowers and measures to raise plant employee awareness. In Valinhos, we also offered training to the team operating the treatment plant and installed an equalization tank which improved stability of the biological process, in addition to establishing operational controls such as bench tests and automation of the treatment plant. Other operations in which there was a significant reduction in COD were Igarassu, Goiânia and Pouso Alegre. In the latter, the decrease was due a change in the disposal of effluent. Previously it was disposed of in the treatment plant, and now it is transformed into animal feed. In Goiânia, the result was due to a reduction in effluent volume. The two major increases in this indicator occurred at the Indaiatuba and Vinhedo plants. At Indaiatuba, there was an increase in effluent volume; at Vinhedo, we enlarged the treatment plant. This was concluded in the middle of the year and resulted in more efficient treatment of industrial effluents. Water bodies GRI EN21, EN25 In accordance with GRI criteria, all of our operations with the exception of Garanhuns and Igarassu have a significant impact on water bodies because wastewater is discharged into rivers. These discharges do not reach 5% of the flow of the water bodies - except at Ipojuca, which uses a stream that is not perennial – and are in compliance with local environmental authority standards. Unilever’s wastewater treatment standards exceed those stipulated by CONAMA resolution 430/2011 regulating discharges. According to the environmental authority’s classification, only the Ribeirão Pinheiro river and the Capivari river, in which Valinhos and Vinhedo discharge their wastewater, are considered sensitive. The former is a river that shelters aquatic communities and is used for human consumption after treatment; the latter is used for human consumption after treatment. The remaining water bodies used for our discharges are less sensitive, with functional considerations limited to landscape and navigation. Based on this information and expert opinions, it may be stated that only the water bodies into which Valinhos and Vinhedo discharge wastewater have high and medium biodiversity value, respectively. back to summary COD (kg/ t prod) 2011 2012 Garanhuns 0.46 0.526 Goiânia 0.31 0.286 Igarassu 0.01 0.002 Indaiatuba 0.00 0.003 Pouso Alegre 0.21 0.098 Jaboatão 6.54 2.137 Ipojuca 0.02 0.023 Valinhos 0.48 0.181 Vinhedo 0.01 0.008 Total 0.34 0.13 100 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Effluent discharge in water bodies Water bodies affected Discharges of 5% or more of average annual volume of water body Water bodies considered sensitive Water body receiving discharge Average volume of receiving body (m³/h) Volume discharged (m³) Biodiversity value Goiânia 0.01% No- Class 4 Meia Ponte River 565200 56 Low value by classification and surveys done with ANA and UFG Indaiatuba 0.07% No- Class 4 Jundiaí River 3.340,80 2.225 Low value by classification 47 Low value by classification and surveys done with ANA Pouso Alegre 0.37% No- Class 4 Patinho River, tributary of 12,672.00 Sapucaí-mirim River Jaboatão dos Guararapes n.a. No- Class 4 Tejipió River n.a. 35 Low value by classification Ipojuca Yes Sensitive water source with insufficient flow and no classification. Tabatinga River n.a. 1.625 Low value Valinhos 0.04% Yes - Class 2 Riberão Pinheiro River 43,560 17 High value by classification 4 Medium value, because oxygen conditions are relatively higher than class 4 Vinhedo 0.08% Yes- Class 3 Capivari River 5,279.40 Obs: Garanhuns and Igarassu do not discharge effluents in water bodies. GRI EN25 101 UNILEVER BRAZIL SUSTAINABILITY REPORT 2012 BACK TO SUMMARY ENVIRONMENTAL IMPACT BIODIVERSITY ACTION AND PRESERVATION Plans launched in 2012 aim to reduce impacts on the areas surrounding our plants With operations located in diverse biomes in Brazil, we are responsible for mitigating the impact we cause on the surrounding areas, with a focus on fauna and flora, conservation of water resources, effluent discharge and permanent environmental protection areas. We reinforced this commitment from 2010 on, driven by the Sustainable Living Plan and by national and international initiatives such as the Brazilian Business Movement for the Conservation and Sustainable Use of Biodiversity (MEB – www.mebbrasil.org.br), which establishes a series of commitments around conservation and sustainable development. We have been signatories to this group since 2011. In Brazil, our biodiversity measures are concentrated on manufacturing operations, due to their location and the impacts cau- GRI EN12, EN14, DMA EN Biodiversity sed by the plants. With the exception of Igarassu, all these units have protected or restored areas. Additionally, all the areas are used predominantly for product manufacturing. The Garanhuns, Goiânia, Jaboatão and Suape units do not have subsurface or underground installations. The other plants have small areas with underground facilities such as parking lots, wells, electrical and hydraulic installations, sewage tanks, drying beds, among others. The main biodiversity impacts caused by Unilever operations are pollution, habitat conversion and the reduction of animal and vegetable species, all of which are reversible. THREATENED SPECIES In 2011 and 2012, during the mapping of biodiversity at our plants, we identified eight species of flora and fauna that are threatened or at risk of extinction according to national lists and the IUCN (International Union for the Conservation of Nature). No threatened species or species at risk of extinction were identified in the areas around the Valinhos, Vinhedo, Igarassu, Indaiatuba and Jaboatão dos Guararapes plants. 102 unilever brazil Sustainability Report 2012 back to summary reducing environmental impact Location and status of protected areas Unit Garanhuns Position in relation to protected area and area Size of operating unit with high biodiversity index in km2 outside protected area Within area administered by the organisation 0.73 Biodiversity value1 High Value: - Land and freshwater ecosystem. - CONAMA ruling nº31/1994 – Secondary vegetation area at mid-stage of regeneration and existence of spring. - species of fauna: hoary fox (Lycalopex vetulus), of lesser concern according to IUCN. Goiânia Within area administered by the organisation 0.07 High Value: - Forestry reclamation project of approximately 5 years – initial regeneration phase. - one species of fauna: Blue-crowned motmot (Momotus momota) threatened with extinction (IBAMA, 2003). - one species of fauna: crab-eating fox (Cerdocyon thous) of lesser concern according to IUCN. Igarassu No protected area 0.095 No protected area inside and/or outside the site. Continuation GRI EN11, EN12, EN13, EN15 103 unilever brazil Sustainability Report 2012 Unit Indaiatuba Pouso Alegre back to summary reducing environmental impact Position in relation to protected area and area Size of operating unit with high biodiversity index in km2 outside protected area Biodiversity value1 APP area within plant Low Value: - Environmental rehabilitation term of commitment in course with CETESB (Case nº 82.401/2011): In 2012, 4,309 native seedlings were planted in the protection area on the site boundary and the company is monitoring and maintaining this area. Within area administered by the organisation 0.027 0.31 High Value: - Secondary vegetation at initial stage of regeneration and compensatory planting in APP. - one species of fauna: Neotropical otter (Lontra longicaudis) vulnerable according to COPAM nº147/2010 - three species of flora: (guanandi, copaíba, marinheiro do brejo) almost under threat according to SMA resolution nº08/2008. Continuation GRI EN11, EN12, EN13, EN15 104 unilever brazil Sustainability Report 2012 Unit Jaboatão dos Guararapes (Jaboatão) Ipojuca Valinhos Vinhedo back to summary reducing environmental impact Position in relation to protected area and area Size of operating unit with high biodiversity index in km2 outside protected area Biodiversity value1 APP area within plant = 0.004 0.011 Low Value: - Land ecosystem - CONAMA ruling nº10/93 and CONAMA nº31/94, APP area vegetation classified as secondary at initial stage of regeneration. Planting of seedlings in APP (Tejipió river) over approximately four years. 0.07 High Value: - CONAMA ruling nº10/1993 secondary vegetation area at initial stage of regeneration. - one species of flora: (Melocactus violaceus) considered vulnerable according to IUCN. 0.25 Low Value: - Land and freshwater ecosystem. - Environmental compensation project at approval stage with environmental authority. 0.11 Low Value: - Land and freshwater ecosystem. - Environmental compensation project in APP (Capivari river). In progress. APP area outside plant APP area within plant APP area within plant (1) As a criterion of biodiversity value we used the area’s stage of regeneration and isolation in the case of the spring. We also considered the number of species threatened by level of risk (EN15). GRI EN11, EN12, EN13, EN15 105 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Plants and Protected Areas Operation Jaboatão Area / Project APP Pouso Alegre APP Garanhuns Goiânia Status (at end of reporting period) Reclaimed Compulsory Planting of seedlings in the APP (Tejipió river) over approximately 4 years. Yes No partnerships Reclaimed Voluntary Rehabilitation underway Yes No partnerships Protected Secondary vegetation area at mid-stage of Part compulsory and regeneration - CONAMA part voluntary nº 31/94 and existence of spring. Yes No partnerships Yes, realization of two (2) Conduct Adjustment Terms - TAC´s. Prepared by Conflora and approved by Environment and Water Resources Department SEMARH. We addressed with theme in the accident prevention week (SIPAT) in partnership with Cargill and Environment Day campaign in 2012. Size (km²) and Protected or location of reclaimed? protected area 0.004 Industrial zone 0.025 Peri-urban zone Two areas: one APP 0.56 and one with a Peri-urban zone high biodiversity rate APP Voluntary or compulsory? Was the result of the reclamation measures approved by external specialists? 0.015 Mixed area Reclaimed Compulsory Forestry reconstitution project of approximately five years – initial stage of regeneration Partnerships (to protect or restore) Continuation GRI EN13 106 Operation Area / Project Size (km²) and Protected or location of reclaimed? protected area APP (adjacent area) 0.015 Industrial zone Legal Reserve 0.1 Industrial zone APP 0.82 Industrial zone APP 0.042 Industrial zone Reclaimed Voluntary or compulsory? Status (at end of reporting period) Was the result of the reclamation measures approved by external specialists? Compulsory Secondary vegetation area at initial stage of regeneration - APP (adjacent area). Yes No partnerships Compulsory Secondary vegetation area at initial stage of regeneration - APP (adjacent area). Yes No partnerships Voluntary Environmental compensation project in the APP (Capivari river) undertaken in 2012. Yes, approved by CETESB (Case nº 05/00039/05). No partnerships Compulsory 4,309 native seedlings were planted in the APP at the site boundary in 2012. Yes, environmental reclamation commitment with CETESB (Case nº 82.401/2011) No partnerships Compulsory Environmental reclamation project and commitment underway. Yes, environmental reclamation project and commitment underway with CETESB. No partnerships Ipojuca Vinhedo Indaiatuba Valinhos GRI EN13 APP back to summary reducing environmental impact unilever brazil Sustainability Report 2012 0.021 General commercial zone Reclaimed Reclaimed Reclaimed Protected Partnerships (to protect or restore) 107 reducing environmental impact unilever brazil Sustainability Report 2012 back to summary Impacts on biodiversity Unit Nature of impacts Conversion of Pollution: Emissions to habitats: changes in air (fixed and stationary) vegetation type, loss of and effluent discharge forest mass Species reduction: Loss of species of fauna and flora Garanhuns Yes Yes No Goiânia Yes Yes Yes Igarassu Yes Yes Yes Indaiatuba No (1) Yes Yes Pouso Alegre Yes Yes Yes Jaboatão dos Guararapes Yes Yes Yes Ipojuca Yes Yes Yes Valinhos Yes Yes Yes Vinhedo Yes Yes Yes (1) Not considered a significant impact GRI EN12 108 unilever brazil Sustainability Report 2012 back to summary reducing environmental impact Reduzimos em 54% o total de emissões de CFC por tonelada produzida nas não manufaturas, resultado que se deve especialmente à diminuição do número de conservadoras de sorvete no período. 109 unilever brazil Sustainability Report 2012 reducing environmental impact Action plans 2013, we will create a committee consisting of representatives of diverse company areas to discuss biodiversity-related questions in the context of the business. These recommendations were the result of a study that evaluated the environmental quality of the soil, air, fauna and flora, surface and ground water resources, and also took into account the opinions of our employees and the surrounding communities. As a reference for this work, we used the existing environmental legislation and technical standards applicable to the abiotic and biotic media, as well as quality of life indices. Furthermore, the plants carry out periodic surveys on the environment and impacts which can raise relevant questions related to biodiversity. In Brazil, we do not issue public reports on biodiversity, since this information is included with the other indicators in this sustainability report. In 2012, we continued a project initiated the previous year with support from a specialized consultancy, resulting in the mapping of the areas surrounding Unilever’s industrial operations. The objective was to identify the main impacts and associated commitments by means of field inspections, the collation of historical data on the occupation of the plant areas and immediate surroundings, as well as the collection of biotic and abiotic indicators on and off site. After collecting field data and office records, the main biodiversity indicators were tabulated and cross-referenced, with a focus on the principal environmental questions. This resulted in the drafting and implementation of action plans for each plant. These were monitored on a quarterly base by the SHE team, the deadline being the end of 2012 (see table on page xx). For back to summary Action plans Plants Garanhuns 2011 Commitments 1. Preservation of spring and ground water resources. 2. Control of forest fires and protection of boundaries. Result of commitment 1. Monitoring of entry by animal species. 2. Monitoring of vegetation around plant to check for smoke / fire; placement of fire break in critical location. Other results Under the EN15 indicator, on this site there is a species of less concern from the IUCN list. To increase employee awareness, we included information in the plant induction process. We also included information on this question in the plant training programme. There are also signs warning people not to kill or mistreat animals at the plant entrances. Continuation GRI EN14, DMA EN Biodiversity 110 unilever brazil Sustainability Report 2012 Plants Goiânia Igarassu back to summary reducing environmental impact 2011 Commitments Result of commitment Promote environmental protection campaigns for third parties and local communities. The plant conducted the following campaigns: 1.World Water Day campaign, in which we focused on scarcity, our role and the impact of pollution on local biodiversity; 2. Creation of “Green Space” in the plant for visits and provision of environmental information (e.g.: examples of inadequate selective waste collection in the operation; mapping of points in plant where we are losing water, steam and compressed air; environmental news from Goiânia, Brazil and the world). 3. Launch of Zero Landfill project, which has addressed opportunities to improve generation, sorting and disposal of waste, improvements in management and changes in habits; 4. Quality Week, involving Unilever and other companies and 3rd parties on the industrial estate, with talks on biodiversity and sustainability aimed at preserving natural resources and the environment. 1. Investigation of environmental liabilities – soil matrix. 2. Forest reclamation. 1. The plant investigated the liabilities. The report is currently under analysis. 2. The forestry reclamation actions will be implanted in 2013. Other results - Under the EN15 indicator, on this site there is a species under threat and another of less concern from the IUCN list. To increase awareness the plant provided information about these species in the induction process of employees and family members. - To reduce the risk of people and animals being run over, a traffic light and speed limit were introduced on the access road to the plant. Daily monitoring of boundaries and fences to plant, prohibition of feeding animals to prevent entry of pets and animal species. Continuation GRI EN14 111 unilever brazil Sustainability Report 2012 Plants Indaiatuba back to summary reducing environmental impact 2011 Commitments Result of commitment Other results Reclamation of APP forest. In 2012 4,309 native seedlings were planted in the APP area on the plant boundary. To ensure adequate growth of the seedlings during the rainy season, they are monitored and maintained continuously. This was the result of a term of commitment; however we went beyond government requirements. In a space in which 54 seedlings were requested, we planted 99. Ipojuca Adjustment of effluent discharges in compliance We fulfilled the commitment and are compliant with the legislation. with Conama ruling 430/2011. - Under the EN15 indicator, on this site there is a species considered vulnerable from the IUCN list. To increase awareness the plant provided information about this species in the induction process. - Fire breaks were installed to prevent forest fires. - Campaign among employees and planting of 70 seedlings in the legal reserve, exceeding the legal requirement of 20. Jaboatão dos Guararapes 1. Adjustment of effluent discharges in compliance with Conama ruling 430/2011, as well as removal of rubble from water course –Tejipió river. 2. Reassessment of APP forestry project. The waste management programme was reviewed. This led to the purchase of containers and awareness training. 1. We fulfilled the first commitment and are compliant with the legislation. Additionally, we assessed the feasibility of removing external waste from water bodies; however, this was not viable. 2.The reclamation underway is proceeding as planned. The plant removes grass and weeds that might jeopardise the species planted. Continuation GRI EN14 112 unilever brazil Sustainability Report 2012 Plants 2011 Commitments Result of commitment 1. Adjustment of effluent discharges in compliance with Conama ruling. Adjustment of sampling plan for the Patinho river 2. Forestry reclamation in APP. 3. Investigation of environmental liability in soil matrix and water table (underway). 1. We fulfilled the first commitment and are compliant with the legislation. Analyses show that effluents and the water body meet the legal parameters. 2. In 2012 we planted more than 500 native trees in the site’s APP area and installed a hedge to prevent the entry of wild animals and pets. 3. Investigation of environmental liability in soil matrix and water table was concluded. Valinhos - Forestry reclamation in APP (underway). The plant presented a forestry reclamation proposal to CETESB at the beginning of 2012. We carried out studies which showed that external compensation would be more beneficial than an internal project. Cetesb then requested an external compensation plan 10 times larger than one inside the plant. This plan will be presented to Cetesb at the beginning of 2013. Vinhedo - Forestry reclamation in APP (underway). The APP reclamation project was initiated voluntarily in 2012 with native species. There are plans for more planting in 2013. Pouso Alegre GRI EN14 back to summary reducing environmental impact Other results Under the EN15 indicator, on this site there is a species which is vulnerable and three almost under threat from the IUCN list. To increase awareness the plant provided information about these species in the induction process and in communications to the plant - To reduce the risk of people and animals being run over, an elevated crossway and a traffic light were installed on the access road to the plant. - The plant is planning to install fire breaks in 2013. 113 unilever brasil relatório de sustentabilidade 2012 reducing environmental impact back to summary We identified the main impacts and commitments related to biodiversity, tabulated the data and cross-referenced the associated indicators, drafting action plans for each plant. 114 unilever brazil Sustainability Report 2012 back to summary reducing environmental impact Atmospheric emissions Controlling impacts In 2012, we stepped up monitoring of particulate materials emitted by the plants and progressed in non-manufacturing indicators Company strategy to reduce environmental impacts includes controlling emissions of gases harmful to the ozone layer, as well as sulphur oxides, nitrous oxides and particulate materials. Minimising refrigerant gas emissions, for example, is important for the company in its manufacturing processes, its distribution centres (because of air conditioning equipment) and at points of sale (where our ice cream freezers are installed). Substances harmful to the ozone layer are monitored in the manufacturing operations, as well as at the points of sale and distribution centres. The data is reported in CFC11 (Chlorofluorocarbon), a measure used to compare various substances based on their relative ozone destruction potential. In 2012, we recorded a 54% reduction in total CFC emissions per tonne produced in non-manufacturing due to the decrease in the number of freezers using 141 B refrigerant gas. GRI EN19, EN20, DMA EN Emissions, effluents and waste CFC11 emissions (in g/t product commercialized or produced) Atmospheric emissions 2010 2011 2012 Manufacturing (g/t produced) 0.067 0.048 0.051 Non-manufacturing (g/t commercialized) 0.004 0.014 0.006 With respect to sulphur oxides (SOx), associated with the burning of fuel in the boilers at the plants and the spray tower in Indaiatuba, we reduced emissions by 36% in Brazil. The improvements were significant, in particular in Pouso Alegre, where a biomass-powered boiler replaced two oil-powered ones (read more in Emissions). 2010 2011 2012 SOx (emission kg/t produced) 0.03 0.031 0. 020 NOx (emission kg/t produced) - 0.045 0.021 Particulate material (emission kg/t produced) - 0.031 0.082 VOC - 0.0002 0.0002 The Valinhos plant also made an important contribution with a reduction in production volume of around 9%, which resulted in a 21% decrease in the consumption of natural gas (the only source of SOx and NOx emissions). Furthermore, the margarine plant had been in operation up until April 2011, resulting in higher natural gas consumption. 115 unilever brazil Sustainability Report 2012 There was, however, an accentuated increase of 162% in emissions of particulate material during the period. This was due, in particular, to the spray tower at the Indaiatuba plant – where the previous measurement of atmospheric emissions had been taken at a moment when the flow was reduced, compromising the measurement of the particulate material and the efficiency of the process. Additionally, in 2012 we started to monitor emissions at Igarassu, which also contributed to the increase. In Garanhuns, there was a reduction in particulate material and SOx emissions due to variations in the sulphur content of the vegetable oil received – there was a prevalence of oils with a low content, which had a positive effect on the indicator. Particulate material emissions were halved with the substitution of the boiler fuel. At the Goiânia plant, SOx emissions were reduced, while particulate material emissions remained at the same level, figures that continue to reflect sale of a part of tomato production to Cargill in 2011. In Vinhedo, SOx emissions vary according to the type of fuel used (natural gas and petrol), which also oscillate depending on production volume. In 2012, production increased 12% compared with the previous year, and we had problems with natural gas supplies. Consequently we had to use diesel oil in the boiler, provoking a direct impact on SOx emissions. In 2012, the Jaboatão dos Guararapes and Vinhedo operations also started to monitor NOx emissions - Pouso Alegre and Valinhos already performed this exercise. At Valinhos, we also control emissions of volatile organic compounds (VOC), toxic and carcinogenic pollutants that are harmful to health. GRI EN20 back to summary reducing environmental impact Methodology used to calculate the volume of atmospheric emissions Garanhuns, Goiânia, Pouso Alegre, Jaboatão, Ipojuca, Valinhos and Vinhedo Business standard emission by fuel consumption. Igarassu Direct measurement Indaiatuba Collections according to EPA/ABNT/Cetesb/NBR 8969, NBR 12020, 5282 NBR10700, NBR 10701/ Cetesb L9.221, Epamethod 03B/Cetesb L9.210 methodology. Pouso Alegre and Valinhos Measurements taken in annual study using kg/h x hours boiler is in operation per month Jaboatão dos Guararapes Direct measurement MP Pouso Alegre and Valinhos Measurements taken in annual study using kg/h x hours boiler is in operation per month. VOC Valinhos Measurements taken in annual study using kg/h x hours boiler is in operation per month SOX NOX 116 unilever brazil Sustainability Report 2012 reducing environmental impact back to summary Energy For a cleaner matrix A higher share of renewable energy in the matrix Unilever Brasil constantly strives to use renewable energy sources in both its manufacturing and non-manufacturing operations. Up until 2010, the proportion of renewable fuels, such as vegetable oil, ethanol and biomass in our direct consumption energy matrix was increasing. However this trend was altered in 2011 with the sale of part of our Goiânia (Goiás) operation, which has biomass-powered boilers. Nevertheless, we maintain our focus on increasing the share of renewable fuels in our operations, in particular in the plants. At these units, we have developed fuel substitution projects, and in our offices and distribution centres we continue to work on raising employee awareness of the need for rational energy use in routine activities. Currently, the plants which consume the most energy are Indaiatuba, Goiânia, Valinhos and Pouso Alegre, due to the type of production processes they employ. At Pouso Alegre, there was an important change in the energy matrix with the substitution of the boilers using LFP oil for a biomass-powered one. This came GRI EN3, DMA EN Energy into operation in September 2012, enabling a 36% reduction in the consumption of non-renewable energy in the plant compared with 2011, and a 4% overall reduction overall in the manufacturing area. For strategic reasons, we only disclose relative data and not total energy consumption. For the plants, the amounts are presented in GJ/tonne produced; for non-manufacturing they are in GJ/t commercialized. Performance in 2012 In our manufacturing plants, there was an 8.6% reduction in non-renewable (Scope 1) energy consumption compared with 2011. This was due mainly to improvements in natural gas consumption at the Indaiatuba plant through the optimization of production flow, and to operational changes at Valinhos, whose indicators were also impacted by the deactivation of the mar- garine business in April 2011. The exception was the Igarassu plant, where natural gas consumption rose due to an increase in production to meet higher demand in the Northeast region. This increase, however, was not significant in terms of the overall results in manufacturing. At Garanhuns, consumption of non-renewable energy was reduced by 42%, due to production enhancements; a trend that was replicated at the Pouso Alegre plant with lower use of LFP oil in the boilers – replaced by a biofuel-powered boiler in August 2012. With respect to renewable energy, in 2012 there was a reduction in the consumption of biomass in the boilers at the Goiânia plants, whose results for 2011 were impacted by the sale of the tomato products line to Cargill. The Igarassu and Vinhedo units also had a significant variation, but did not impact the consolidated indicator for all the operations. In the former, there was a reduction in the consumption of biodiesel during the year because the mechanical digger was not in operation. In Vinhedo, 117 back to summary unilever brazil Sustainability Report 2012 reducing environmental impact there was a decrease in ethanol consumption because the vehicle using this fuel is not in use. On the other hand, the Pouso Alegre plant showed an important increase due to the installation of the biomass-powered boiler. Scope 2 consumption from the acquisition of electrical and thermal energy increased in 2012. The distribution centres and ice cream freezers at points of sale account for most of this consumption. Among the factories, Indaiatuba and Valinhos use the highest percentage of energy in Unilever, followed by Pouso Alegre and Jaboatão dos Guararapes. Considering direct and indirect energy consumption (GJ per tonne produced or commercialized), there was a 5% reduction in company plants and a 28% increase in non-manufacturing operations. This growth is due primarily to electricity consumption by ice cream cabinets, which grew as a result of the purchase of more freezers during the year and a decrease in the deactivation of older ones. In partnership with the freezer supplier, we reviewed electricity consumption by type of model in use, which also influenced the result for the year. In non-manufacturing operations, we reduced the consumption of non-renewable energy with initiatives such as reduced petrol consumption in our ice cream sales fleet, stemming from the implantation of the company’s ethanol policy in 2011 (read more in Emissions). This policy made a significant contribution to the 44% increase in the consumption of renewable energy. Additionally, the company reduced consumption in its technical assistance operations in 2012 through outsourcing of part of the fleet. GRI GRI EN3, EN4 Total energy consumption (Scopes 1 and 2) 2010 2011 2012 Manufacturing (GJ/t produced) 1.614 1.231 1.165 Non-manufacturing (GJ/t commercialized) 0.471 0.557 0.653 Scope 1 – Percentage of renewable and non-renewable energy used 2010 2011 2012 Renewable 42% 18% 21% Non-renewable 58% 82% 79% 118 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Direct energy consumption discriminated by primary energy source – Unilever total Non-renewable energy (GJ) SCOPE 1 2010 2011 GJ/t prod. (Man) GJ/t commer. (NM) Breakdown by source GJ/t prod (Man) Diesel oil 0.003 0.000 0.3% 0.002 0.000 Petrol 0.001 0.015 1.1% 0.000 Fuel oil 0.069 - 5.6% Natural gas 0.600 0.000 LPG 0.015 Subtotal nonrenewable energy 0.688 GRI GRI EN3 GJ/t Breakdown by commer. source (NM) 2012 GJ/t prod (Man) GJ/t commer. (NM) Breakdown by source 0.2% 0.000 0.000 0.1% 0.029 3.0% 0.000 0.008 0.9% 0.071 - 8.0% 0.045 - 5.5% 48.1% 0.601 0.000 67.2% 0.571 - 68.9% 0.023 2.8% 0.010 0.026 3.8% 0.008 0.023 3.8% 0.038 57.9% 0.683 0.054 82.2% 0.625 0.031 79.1% 119 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 2010 Renewable energy (GJ) - SCOPE 1 2011 2012 GJ/t prod. (Man) GJ/t commer. (NM) Breakdown by source GJ/t prod (Man) GJ/t commer. (NM) Breakdown by source GJ/t prod (Man) GJ/t commer. (NM) Breakdown by source Biomass 0.503 - 40% 0.131 - 15% 0.132 - 16% Vegetable oil 0.003 - 0% 0.002 - 0% 0.000 - 0% Ethanol 0.000 0.020 1% 0.000 0.028 3% 0.000 0.041 5% Biodiesel 0.000 0.000 0% 0.000 0.000 0% 0.000 0.000 0% Sub-total renewable energy 0.506 0.020 42% 0.133 0.028 18% 0.133 0.041 21% Total Direct Energy Generated and Consumed (GJ) - Scope 1 1.194 0.059 0.816 0.083 0.757 0.072 Energy (GJ) - SCOPE 2 Energy generated and produced / t prod. Commerc. 2010 Manufacturing 0.421 2011 NM Manufacturing 0.413 0.414 2012 NM Manufacturing 0.606 0.408 NM 0.581 Scope 2: Energy from acquisition of electricity or thermal energy by company. GRI EN3, EN4 120 back to summary reducing environmental impact unilever brazil Sustainability Report 2012 Relative Total energy (GJ/t) Electricity GJ/t Breakdown by unit - SCOPE 2 prod. per unit Percentage of GRID electricity Percentage of electricity receiving incentives SCOPE 2 - per unit Garanhuns 0.19 0% Garanhuns 100% 0% Goiânia 0.32 3% Goiânia 99% 1% Igarassu 0.34 2% Igarassu 3% 97% Indaiatuba 0.26 10% 41% 59% Pouso Alegre 0.43 6% Pouso Alegre 3% 97% Jaboatão dos Guararapes 1.62 5% Jaboatão dos Guararapes 3% 97% Ipojuca 0.58 2% Ipojuca 7% 93% Valinhos 1.00 10% Valinhos 42% 58% Vinhedo 0.19 3% Vinhedo 3% 97% Manufaturas 0.41 41% MANUFACTURING 30% 70% Distribuição 0.57 57% Distribution 100% 0% R&D, HO, GS 0.01 1% R&D, HO, GS 99.7% 0.3% NM 0.58 59% NM 99.7% 0.3% GRI EN3, EN4, DMA EN Energy Indaiatuba It is a major challenge to purchase 100% energy benefiting from incentives for the plants due to market scarcity. Renewable energy and energy benefiting from incentives We purchase energy benefiting from incentives for the manufacturing area, while for the non-manufacturing operations we acquire only energy from the national GRID. According to the 2012 National Energy Balance Sheet (base year 2011), only 11% of this energy is not renewable. We seek to extend renewable energy solutions in the plants having the greatest impact. Our target for 2012 was to acquire 100% energy receiving incentives for the Igarassu, Ipojuca, Jaboatão dos Guararapes and Pouso Alegre plants. None of the plants achieved their targets because it was necessary to go to the market to meet their energy needs. There was not sufficient incentive energy available to fully meet demand. 121 unilever brazil Sustainability Report 2012 reducing environmental impact Measures to reduce consumption of mostly petrol-powered vehicles, the commuting eliminated means a reduction in consumption of approximately 1500 GJ and emissions avoidance of 100 tonnes of CO2e. Another initiative promoting energy and GHG emission reduction in the company is the use of telepresence infrastructure. However, it was not possible to make a quantitative estimate of the savings achieved. Diverse conservation and efficiency projects at the plants enabled Unilever Brasil to reduce its energy consumption by 6,239 GJ in 2012. At Garanhuns, we saved 947 GJ of electricity through the optimization of use of high consumption electrical equipment (air compressors and ventilation system) and greater efficiency in Karo production. In Indaiatuba, we achieved a reduction of 392 GJ/month and 4,713 GJ in the year through measures such as turning off compressors at peak times (18:00 to 21:00). Other plant projects include a rotation system for unloading heavy goods vehicles, decreasing the time compressors are on, checking for steam and compressed air leaks in the compressors used to generate energy and a review of the operating standards for the drying towers. In Pouso Alegre, we developed simple projects such as removing surplus light bulbs in the production and external areas, automating the Knorr production line conveyors, installing light sensors and timers in little used locations, repairing compressed air and steam leaks and reinforcing thermal insulation. The main driver of reduced indirect energy consumption in the year was the incentive to work from home for employees at coordination level and above at our São Paulo head office. A survey conducted at mid-year, some months after the home office programme was introduced, showed that 21% of eligible employees work at home up to twice a month; 35%, once a week; and another 7%, twice a week. Calculating the average distance between employees’ homes and the office and assuming the use GRI EN5, EN7, DMA EN Energy back to summary Continuous improvement projects in the plants enabled energy savings of more than 6 thousand GJ during the year. Ethanol incentives Introduced in September 2011, the company’s ethanol policy has enabled emissions avoidance of approximately 2,200 tCO2e since its launch, equivalent to removing 36 heavy goods vehicles from the road annually. Studies demonstrated the economic and environmental viability of using ethanol. The policy makes filling up with renewable fuels mandatory in our vehicle fleet in Brazil whenever possible, avoiding the use of petrol and encouraging ethanol. The capillarity of the company’s activities throughout the country enables the compensation of fluctuations in price and availability caused by seasonal factors associated with the fuel. The entire Unilever fleet consists of flexible fuel vehicles, and reimbursement of fuel expenses for the 1,130 employees who drive in the course of their work, such as HPF (hygiene and beauty) sales staff and technicians, is conditioned to the use of ethanol. 122 unilever brazil Sustainability Report 2012 Enhancing livelihoods back to summary Managing suppliers Responsible Sourcing Supplier engagement 123 unilever brazil Sustainability Report 2012 Shared growth Actions throughout the chain seek to foment the sustainable development of suppliers and our own business One of Unilever’s global targets is to contribute to the social and economic development of all the communities and countries in which it operates. This commitment is formalised in our Sustainable Living Plan, which proposes to support and qualify agents in the supply chain as a means of enhancing the livelihoods of our suppliers. In addition to our large commercial partners, we work with hundreds of thousands of little businesses – smallholder farmers and micro-businesses - in the 190 countries in which we operate. This is a group that has great potential to grow and increase its productivity, provoking a positive impact on our business and throughout the value chain. Currently Unilever has mechanisms in place to help these suppliers to grow and to adopt practices in line with social and environmental guidelines. In the Enhancing Livelihoods pillar, the Unilever Sustainable Living Plan mapped the work fronts we should adopt between 2010 and 2020 to reach our targets. On the one hand, we have a target to include more than 500 thousand smallholder farmers and small distributors in our supply chain. back to summary Enhancing livelihoods On the other, we need to source all our agricultural raw material sustainably by the end of the decade, a question that involves both our approach to the supply chain and our environmental management policies. This target is especially relevant considering that Unilever buys 3% of all the palm oil and 1% of the soy produced in the world every year. Another point addressed in the pillar is people management. Our focus on themes such as diversity, development and occupational safety is intended to make our employees strategic partners in the company’s growth (read more in People). Another Unilever Brasil commitment is to develop mechanisms to manage, engage and qualify the suppliers who help the company to achieve its strategic objectives. Consequently, our actions throughout the chain are a priority that saw important advances between 2010 and 2012. Since 2011, we have progressed in our supplier engagement plan in Brazil, including partners from diverse segments, such as logistics and production inputs, in encounters involving the exchange of experience and know-how related to best social and environmental practice. We have also enhanced our mechanisms for managing, selecting and evaluating suppliers based on systems such as the Responsible Sourcing and SEDEX programmes. Another relevant point during the year was the application of a questionnaire among our 6 thousand suppliers in the country to collect data on best practices, encompassing areas such as human rights, child and slave labour and environmental management (read more in Supplier Management). Our global targets Suppliers – By 2020, we will have more than 500 thousand smallholder farmers and small distributors in our supply chain. Sustainable sourcing – By 2020, 100% of our agricultural raw materials will come from sustainable sources. Work force – By 2020, we will reduce the accident frequency rate in our plants and offices by up to 50% against a base date of 2008. 124 unilever brazil Sustainability Report 2012 back to summary Enhancing livelihoods Supplier management Working on different fronts Unilever develops a series of measures to engage its almost 6 thousand partners in Brazil in the company’s socio-environmental commitments Suppliers in Brazil Proportion of spending on local suppliers 2010 2011 2012 99% 99% 89% note: the basis of calculation for production items was altered in 2012 to show actual spend on suppliers, resulting in this variation. In Brazil, our supply chain consists of approximately 6 thousand companies of varying sizes, operating in different categories and regions, in addition to other markets in which we do business. Management of these partners and the purchase of inputs can take place on three levels: national (Brazil), regional (Latin America) or global. As a question of cost optimization and homogenization of quality, for high volume products most of these processes are managed at regional and global level. Suppliers are broken down into three main categories: production items (inputs used in the manufacture of our products, such as packaging, ingredients, chemicals and commodities), logistics (storage and distribution services for products and some raw materials) and non-production items (machinery, office supplies and equipment, for example). We consider all suppliers with operations in Brazil to be local suppliers. Currently, spending on production items from local suppliers accounts for 89% of the company’s purchase volume. Of these, 62% supply raw materials and 38%, packaging. By 2014, we intend to map and identify the location of suppliers by region of the country, determining whether their facilities are in metropolitan regions or states in which we have operations, for example. Supplier selection at the three levels of governance is based fundamentally on the development of best sustainability practices, competitive costs and service quality. We use regional or global suppliers when determined inputs are not found locally or when local suppliers do not meet specifications. In these cases, the main inputs come from Asia, Europe and the United States. The advances related to mapping suppliers are detailed in Responsible Sourcing (link to corresponding text, below). In 2012, to identify the percentage of purchase volume in compliance with Unilever standards, we performed an analysis based on the amounts spent with suppliers. This analysis took into account the fact that 20% of suppliers account for 80% of the company’s spending (read more in Responsible Sourcing. Supplier selection is part of global management and involves diverse programmes such as Partner to Win, projected to establish long-term relationships with strategic suppliers, and GRI EC6, FP2, DMA HR Investment and procurement practices, DMA SC Fair trade and fair compensation for labor Supplier category Production items Non-production items Logistics services Total Number of suppliers 508 5.396 188 6.092 Responsible Sourcing, which includes diverse supplier management and monitoring mechanisms for partners we consider to be critical in determined social and environmental areas (read more in Responsible Sourcing). At the local level, the company has a team specialised in developing the value chain, promoting assessments, engagement actions and training aligned with the Sustainable Living 125 unilever brazil Sustainability Report 2012 Enhancing livelihoods Plan and company business strategy. The procurement area also maintains a direct relationship with these suppliers, with a structured policy comprehending selection, management, monitoring and evaluation. However, our major advances during the year were in engaging and monitoring these strategic partners (see more in Supplier Engagement). We also learned more about these companies by applying a questionnaire focused on human rights, labour practices and other sustainability-related questions, the objective being to understand our six thousand suppliers’ commitments and directives. Currently Unilever buys 3% of the world’s annual production of palm oil, 1% of its soy, 12% of its black tea and 6% its of tomatoes, an indication of the positive impacts the company may promote by engaging its suppliers. The target for palm oil, which accounts for 17% of Unilever’s agricultural input purchases worldwide, is even more audacious: we intend to get all of our palm oil from certified sources by 2015. In Brazil, 100% of our palm oil is acquired from members of the RSPO (Roundtable on Sustainable Palm Oil), an international organization comprising producers, distributors and other stakeholders interested in promoting the sustainable use of this commodity. By acquiring RSPO certificates, Unilever contributes to the bonus market and to the development and dissemination of best practices in this sector. Similarly, almost 100% of the paper and cardboard we use comes from forests that are managed sustainably and are FSC (Forest Stewardship Council) or PEFC (Programme for the Endorsement of Forest Certification) certified. In 2012, Unilever also joined the Global Traceability System (GTS), an auditable programme enabling consultation of the volume of certified and non-certified paper and cardboard materials supplied. The procedures adopted with soy follows the same guidelines as the inputs above. Certificates issued by the Round Table on Responsible Soy Association (RTRS), account for 95% of the soy oil and soy acquired by Unilever Brasil. In 2012, we organized an encounter with five producers who are important for the business of the Pouso Alegre (MG) plant, where the AdeS soy beverage is produced, to engage them in Certified partners One of the most complex targets in procurement will be obtaining 100% of the company’s agricultural raw materials from certified sustainable and renewable sources by 2020. This target encompasses the Top 10 agricultural raw materials, which account for 70% of global volume. This commitment is challenging, given that two thirds of our global inputs come from agricultural sources. In order to reach this target, therefore, we seek to work with suppliers committed to sustainable practices the world over. Some of the standards with which the Sustainable Sourcing pillar is aligned are: the Rainforest Alliance; the Round Table on Responsible Soy Association (RTRS); the Roundtable on Sustainable Palm Oil – RSPO; Bonsucro (sugar); and the FSC. GRI FP2, DMA SC Protecting natural resources, DMA SC Traceability back to summary our target of sourcing 100% of our agricultural raw material sustainably. These suppliers, who provide 35% of our current annual soy needs, were shown our production and processing areas and engaged in discussion of our plans. In 2012, we became the first company in the world to acquire sugar credits from Bonsucro, an association that has a certification programme for the sugar-ethanol industry aimed at promoting best social and environmental practice. During the year, we supported the sustainable production of 3,200 tonnes of sugar with the purchase of these credits. By 2016, 100% of our sugar purchases will be certified by Bonsucro, with annual targets of 15 thousand (2013), 30 thousand (2014) and 40 thousand tonnes (2015). Small and mid-sized suppliers In Brazil, our efforts to integrate small and medium suppliers into the chain are centred on the Integrare programme. Coordinated by the homonymous NGO, the initiative involves more than 110 large companies, including Unilever Brasil, interested in engaging suppliers from socio-economic minorities in the business chain. A total of 53 Integrare companies are active in our supplier base. Most of these provide products such as gifts, communications materials and event organisation services. In 2012, the volume of business with these companies reached BRL 5.56 million, a 29% increase over the previous year - surpassing the 126 unilever brazil Sustainability Report 2012 Enhancing livelihoods target set for 2012 by 18%. During the year, 21 companies conducted negotiations with Unilever, which has been a member of the programme since 2007. The Foods categories has eight such suppliers, Personal Care, three, and Hygiene, five. One partner supplies both the Hygiene and Personal Care divisions. In 2012, all the co-makers were audited and were either approved or are awaiting the audit results. None of the third-parties failed the audit. Co-makers back to summary Our transactions with small and mid-sized businesses through the Integrare Programe in 2012 were worth BRL 5.56 million - 29% up on the previous year. In determined categories, such as domestic cleaning and foods, some of our products are partially manufactured by suppliers. These partners, called co-makers, usually have factories installed close to Unilever Brasil plants and supply some of the materials for our brands, lines and products. There are currently 15 companies working in this format, representing around 3% of the chain. These partnerships work in two ways: in the first, Unilever buys the finished product from the supplier and only packages and commercialises it. In the second, Unilever provides the inputs the suppliers will use to produce and package the end product. To ensure quality control in line with Unilever standards, there is a team responsible for managing these partners through periodic factory visits to check compliance with company practices. All the co-maker plants are subject to audits by our Quality and Safety, Health and Environment (SHE) teams. The results and indicators are analysed in periodic meetings, in which action and improvement plans are established (all co-makers have plans of this nature) focused on qualification, maintenance of quality standards, cost improvement and business opportunities. GRI FP1 127 unilever brazil Sustainability Report 2012 Enhancing livelihoods back to summary Processes such as Responsible Sourcing enable us to map, monitor and control social, environmental and labour performance at suppliers 128 unilever brazil Sustainability Report 2012 Enhancing livelihoods back to summary Responsible sourcing Calculated risks Global programmes implemented in Brazil monitor and evaluate the socio-environmental performance of the company’s most critical suppliers Unilever Brasil requires that all its suppliers be compliant with national and international standards, Brazilian legislation and our socio-environmental and business policies. All purchase orders also require that the contractor accept the terms of the company’s Code of Conduct and Principles. The document addresses human rights throughout Unilever’s and business partners’ operations (read more in Corporate Governance). In 2012, there was just one investment operation which was also subject to this process. We investigate breaches of the Code and, if necessary, terminate supply contracts in the event of non-compliance. In addition to the code, the company’s purchase order process involves a standard contract which contains clauses related to human rights, slave and child labour. Company procedures to assure responsibility throughout our supply chain comprehend management and monitoring of commercial partners in accordance with their size, location and segment of activity. In 2012, we continued to implant the Unilever Supplier Qualification System (USQS) in Brazil. This is a The classification attributes varying levels of risk to suppliers, with the higher levels being subject to mandatory audits. The programme was initiated in 2011. In 2012, 202 Unilever Brasil suppliers were classified as high risk and 72 as medium risk. Our target was to have 100% of suppliers approved by the end of 2012; however, it was necessary to extend the deadline to March 2013. At the end of the year, 80% of the companies supplying Unilever had either been approved in the Responsible platform designed to manage all production item suppliers and Sourcing programme or did not require approval. Within the Responsible Sourcing sub-process, high and mesome non-production item and logistics providers. The USQS unifies the registration of our suppliers and helps dium risk suppliers must also register in the Sedex (Supplier Ethical Data Exchange) system, with high risk companies subthe procurement area to better understand the potential risks involved in buying determined inputs and materials in different ject to audit procedures. Developed by AIM (European Brands regions, as well as driving improved standards and accelerating Association), Sedex assesses partners’ compliance in relation the qualification of partners. All Unilever Brasil production item to sustainability-related questions such as labour relations, business integrity, safety, health and environmental managesuppliers should be registered in the USQS system; however, ment. For the time being, the assessment is not applied to supnot all had finalized the process by the end of 2012. There are pliers of non-production items. three stages in the process (registration, assessment and auCurrently we do not exclude suppliers for substandard perfordit), each of which should be undertaken in accordance with the degree of criticality identified in the supplier. mance in the Sedex system, since the main purpose of this proThe Responsible Sourcing programme is also a global process cess is to identify critical points and elaborate action plans jointly with partners to remediate them. Even so, all production item aimed at all partners in the production item chain. It constitutes a sub-process of the USQS and has been in operation in Brazil since suppliers must be approved in the system. Those not approved in 2011. This programme enables the company to map, monitor and the first assessment may receive special authorization to supply control determined information on some 600 suppliers, with a pri- the company for a determined period, until they have made the mary focus on social, environmental and labour questions. necessary adjustments and undergo reassessment. GRI HR1, HR2, HR6, HR7, EC6, DMA HR Investment and procurement practices, Child labor, Forced and compulsory labor 129 unilever brazil Sustainability Report 2012 Enhancing livelihoods Quality assurance in Brazil, covering human rights, the environment and labour practices, such as child, forced or slave labour, freedom of association, remuneration practices and human rights training for employees. The questionnaire was based on documents such as our Code of Business Principles, international labour and human rights standards and Global Reporting Initiative (GRI) guidelines, which orient our reporting and sustainability management processes. A total of 282 suppliers responded to the questionnaire, including 135 suppliers of non-production items. In 2012, no cases of breaches of human rights were received via this channel. In addition to the social and environmental factors assessed in the Responsible Sourcing programme, Unilever Brasil subjects suppliers to quality assurance under the Supplier Quality Assurance or SQA system. Another USQS sub-process, the SQA is designed to analyse production inputs in accordance with international protocols and production standards. This enables the company to guarantee the quality of the inputs it acquires. Products offering medium to high risk of microbiological contamination, in particular in the foods category, are also subject to external audit by a specialized consultancy to assure the quality of the supplier’s manufacturing process. All production items in the supply chain are submitted to the SQA. Suppliers of inputs classified as medium risk, accounting for 38% of the total, are audited every two years, whereas the 14% providing highly critical materials undergo this process every year. Around 77% of the companies supplying Brazil have either been approved in the SQA or do not require approval. back to summary Human rights monitoring Unilever Brasil has a special channel for receiving reports on breaches of human rights among its suppliers. A more detailed mapping of suppliers with respect to human rights was initiated in 2012. The first stage in this process was the preparation of a questionnaire sent to all the company’s 6 thousand suppliers GRI HR2, DMA HR Non-discrimination 130 unilever brazil Sustainability Report 2012 Enhancing livelihoods back to summary Supplier engagement Sharing best practices Programme encourages the sharing of ideas and knowhow with suppliers to provide solutions in joint operations Supplier participation in measures to reduce socio-environmental impacts throughout the chain and product life cycle is an essential element for the success of the Unilever Sustainable Living Plan. We have had an engagement programme since 2009, which has been reinforced over the last two years, driving the development of joint efficiency and socio-environmental responsibility solutions. Another key activity for suppliers is the annual Engagement Wave. This is a series of encounters with the company’s most relevant suppliers, both in terms of the quality of the services provided and their strategic importance for Unilever Brasil. During the meetings, Unilever presents its targets for 2020 based on the Sustainable Living Plan, and participants are invited to actively collaborate with these commitments, generating efficient business solutions and best sustainability practices both for themselves and for Unilever. In the first engagement stage in 2010, we brought together 60 production item suppliers who generated 45 ideas for sustainability-related operational improvements. In 2011, engagement evolved in two aspects: participation in Unilever’s global Partner to Win programme; and the inclusion of two more supplier categories – production items and logistics – in the programme. A total of 35 partners helped develop 35 projects – one of which was implemented in 2011 and three in 2012. We also consulted 13 representatives from eight suppliers during the preparation of our Materiality Matrix, which highlights critical management themes for the company from the standpoint of stakeholders (read more in Reporting Process). In 2012, we organized a workshop with 64 suppliers to encourage and offer them advice on the communication of social and environmental performance based on the Global Reporting Initiative (GRI) guidelines used by Unilever Brasil in its reporting process. Regardless of whether the supplier publishes a sustainability report or not, Unilever believes that the indicators proposed by the GRI are a useful tool in promoting good governance, ensuring control of the supply chain and enhancing a company’s reputation and image. Another important measure during the year was a workshop focused on engaging this group, in which we presented our Sustainable Living Plan, targets, commitments and actions. This event involved 35 suppliers. We presented our experiences and management gains from the more systematic monitoring of socio-environmental indicators in the company. On the occasion, the Secretary of Institutional Relations and Environmental Citizenship from the Ministry of the Environment, Samyra Crespo, spoke about the attributions of her department, the Rio+20 Conference and the government’s Sustainable Production and Consumption Plan (PPCS in the Portuguese acronym), leading a number of the representatives present to identify partnership opportunities. 131 unilever brazil Sustainability Report 2012 PEOPLE Employee profile Developing people Health and safety Feel Good Programme Our benefits Diversity Employee engagement Labour relations back to summary 132 unilever brazil Sustainability Report 2012 PEOPLE back to summary Key asset People management at Unilever Brasil is focused on ensuring employee development and satisfaction, retaining talent and promoting diversity, occupational health and safety At Unilever Brasil, multiple factors are involved in people management. Company actions are focused on ensuring employee satisfaction, improving the organizational climate, retaining and developing talent and leaders, qualifying people and promoting diversity, occupational health and safety throughout our operations. Our approach is aligned with the company’s global directives and reflects our commitment to business and sustainability targets. Currently, our main focus is on attracting and retaining the best professionals in Brazil, a challenge we face in common with many other companies. To develop improvement plans, we favour internal communication and dialogue with employees using tools such as an organizational climate assessment, the Global People Survey, or GPS. We promote internal recruitment and have created a performance culture based on the periodic analysis and review of targets between employees and leaders. These measures are employed throughout the company, from the plants to the offices, distribution centres and points of sale. A major objective is to reduce employee turnover, particularly in leadership positions. GRI DMA LA Employment Another important initiative is the Trainee programme, which, in addition to grooming future company leaders, encourages the development of projects focused on sustainability, engaging trainees in the company’s approach to this theme (read more in Development). Currently more than 20% of Unilever Brasil’s senior managers are ex-trainees. This is a reaffirmation of our belief in long-term career building in the company, filling leadership roles by promoting from within. Periodically, we conduct market surveys to ensure Unilever’s salaries are competitive. With a view to retaining talents, we also offer variable remuneration, worthy of note being the company’s profit share programme (PPR). In 2012, there was considerable progress in programmes such as Feel Good, in particular in the Feel Free pillar, with the implementation of flexible working hours – a programme that entitles more than 1,300 employees (over 9% of our labour force) to work from home or adopt flexible working hours. In 2012, 88% of the eligible employees took advantage of this system. This project enabled the company to reduce its operational structure, with the deactivation of one of our offices in São Paulo and the concentration of employees in the JK1 building. In Brazil, we also launched a new platform for the Personal Development Plan (PDP), a 360° appraisal system for company leaders. In internal communication, progress was made in the use of teleconferencing facilities, reducing business travel and enabling greater interaction between teams all over Brazil. In the area of health and safety, we advanced in our accident reduction targets. The Total Recordable Frequency Rate for accidents, the measure we use to set targets and record information, was around 0.65 in 2012, below the 1.14 target established for the year. Particularly noteworthy were the plants, with Garanhuns, Ipojuca and Vinhedo recording no accidents – except for incidents only requiring first aid. Our Vinhedo plant gained global recognition within Unilever as a reference in safety (read more in Health and Safety). We have a global target of reducing accident frequency by up to 50% against the base year 2008. 133 unilever brazil Sustainability Report 2012 PEOPLE Reducing staff turnover continues to be Unilever Brasil’s main challenge. In 2012, as happens every year, we identified the company’s key professionals and continue to invest in retaining these talents. The leadership positions considered to be critical for business strategy are mapped and reviewed as deemed necessary. At 1.6%, our significant loss rate (employees with the potential to occupy higher positions), which is monitored to guide internal promotion policy, was below the target of 2%, and lower than in 2011. ness and their perception that sustainability can contribute to the fulfilment of business objectives. According to employees, the company provides incentives for the adoption of environmentally correct work practices, such as measures to save energy and sort solid waste for recycling. The survey showed that employees believe that Unilever does good work in the communities in which it is present. The GPS once again indicated areas for improvement that will orientate company management and strategy, providing continuity for the 2011 GPS Pulse survey, which is applied among leaders. back to summary In 2012, our accident frequency rate was 0.65, below the 1.14 target. We recorded zero accidents in three company plants. Climate Survey One of the main tools guiding policy in this area is the Global People Survey (GPS), which measures organizational climate. Every two years, all employees at the company’s plants, offices, distribution centres and points of sale are consulted with a view to identifying critical questions and advances from the standpoint of the work force. We also apply the GPS Pulse, aimed at management level and above. This provides ongoing monitoring of key aspects of the biennial survey and is conducted on alternate years to the GPS, the last one being in 2011. The GPS was applied in 2012, showing an engagement rate of 77% with the participation of 87% of the company’s employees. For the first time, the theme of sustainability was made explicit to the entire company – in 2010, the term used was Corporate Social Responsibility. The survey findings showed that 79% of company employees agree with sustainability-related questions, declaring their satisfaction with the inclusion of this theme throughout the busi- 134 unilever brazil Sustainability Report 2012 PEOPLE back to summary Employee profile Nationwide presence Our teams are spread over Brazil, in plants, offices, distribution centres and commercial operations In 2012, headcount remained stable compared with the previous year, with around 13,200 employees. Our teams are distributed throughout the country, in factories, distribution centres, research centres, offices or engaged in sales and the provision of technical assistance. The bulk of our employees are located in the southeast region, where our head offices are also situated. All our employees are contracted on a full-time basis, with priority given to Brazil’s CLT labour regime in all operations. We do not use freelance workers, except for specific services such as consultancy. During the year, progress was made in mapping and analysing third-party and contract workers, in particular those engaged in activities such as cleaning, security, call centres, product distribution and transporting employees. The company mapped its main contracts and, whenever possible, seeks to extend company policy and procedures to these partners. Service contracts, We have enhanced management of the third-party employees working in areas such as the call centre, cleaning, security and transportation. In 2012, there were 3 thousand partners engaged in our operations. for example, require compliance with a number of company management policies and the Unilever Code of Business Principles (read more in Corporate Governance and in Supplier Management). Unilever Brasil has a specific policy for contracting third-parties, which is administered by each company area. In 2012, there was a significant decrease in the volume of third-party workers, with a total of 2,500 partners working on our premises at the end of the year. In 2012, there were reductions in some functional areas compared with the previous year. This was mainly the result of operational reorganization at the end of the production lines in the Goiânia and Pouso Alegre plants, as well as the rescaling of operations at Indaiatuba and Valinhos. 135 back to summary PEOPLE unilever brazil Sustainability Report 2012 Team profile Number of employees by functional level 2010 2011 2012 2010 2011 Full-time 12064 Part-time 2003 Total by gender 3999 1179 Total 28 109 35 31 29 29 36 131 124 172 119 196 - 9939 3700 9520 3753 Total Men Women Men Women Director level 122 75 48 72 49 Management 503 276 245 277 255 Administration 4761 4948 1912 4915 Production 6407 4444 1266 Apprentices 83 41 Trainees 57 Interns Number of employees by type of employment Total by gender Number of employees by region South region 2012 Men Women 13639 9520 3753 0 0 0 0 - - 9520 3753 12064 13639 2010 2011 298 13273 2012 Men Women 707 574 144 12064 13639 13273 Southeast region 7363 8525 5966 2521 Third-parties - 4713 3000 Centre-West and North regions* 2230 1705 1046 377 Total (including third-parties) - 18352 16273 Northeast region 2173 2702 1934 711 - - 9520 3753 12064 13639 Total Total by gender Number of employees by type of contract 2010 2011 Fixed term 527 Permanent Total by gender Total GRI LA1 2012 Men Women 615 460 346 11537 13024 9060 3407 - - 9520 3753 12064 13639 Total 13273 13273 136 unilever brazil Sustainability Report 2012 Turnover With respect to employee turnover, the main challenge for the company is to reduce the number of people discharged per year and boost talent retention policies, in particular for leadership positions. In 2012, 2,800 employees were discharged, compared with over 3,500 in 2011. In general terms, our operations are not affected significantly by seasonal factors. Only the ice cream operation at the Jaboatão plant has a variation in staff during the summer, when from 100 to 150 people are admitted to increase production in function of higher demand. back to summary PEOPLE Employee Turnover at Unilever Brasil 2010 2011 2012 Employees discharged, by gender. Men Women Men Women Men Women Total by gender 1751 664 2602 909 2038 792 Total 2415 3511 2830 2012 Total number of employees admitted and discharged in the same reporting period, by gender. Total by gender Men Women 216 91 Total 307 Number of employees discharged and admitted, by gender (2012) Men Women Total Total discharged Discharge rate Total admitted Admission rate 2038 15% 1686 13% 792 6% 894 7% 2830 21% 2580 19% continuation GRI LA2 137 unilever brazil Sustainability Report 2012 back to summary PEOPLE Total number of employees discharged, by age group. 2010 2011 2012 Below 30 years. 1317 1675 1479 Between 30 and 50 years 1037 1671 1253 61 165 98 2415 3511 2830 Above 50 years. Total Total number of employees admitted and discharged in the same reporting period, by age group. 2012 Below 30 years. Between 30 and 50 years Above 50 years. Total (1) the number of admissions was monitored using different age groups (up to 25; 25 to 35; 35 to 50; above 50). An estimate was made dividing the «25 to 35» category equally between the previous (up to 25) and next (35 to 50) categories and readjusting them. 211 95 1 307 Number and rate of discharges and admissions, by age group (2012) Total Total Discharge rate discharged admitted1 Admission rate Below 30 years. 1479 11% 1.697 13% Between 30 and 50 years 1253 9% 873 7% 98 1% 11 0% 2830 21% 2580 19% Above 50 years. Total (1)the number of admissions was monitored using different age groups (up to 25; 25 to 35; 35 to 50; above 50). An estimate was made dividing the «25 to 35» category equally between the previous (up to 25) and next (35 to 50) categories and readjusting them. Total number of workers discharged, by region 2010 2011 2012 34 97 166 1450 1703 1518 Centre-West and North regions2 728 1133 459 North region 203 578 687 2415 3511 2830 South region Southeast region Total (2) Due to the reduced number of workers in the North region, it was consolidated with the Centre-west region for staff turnover data. continuation GRI LA2 138 back to summary PEOPLE unilever brazil Sustainability Report 2012 Number and rate of discharges and admissions, by region (2012) Total discharged Discharge rate Total admitted Admission rate 166 1% 181 1% Southeast region 1518 11% 1533 12% Centre-west and North region2 459 3% 209 2% North region 687 5% 657 5% 2830 21% 2580 19% South region Total Number of discharges of new admissions, by region. 2012 South region Southeast region 19 188 Centre-west and North region² 34 North region 66 Total To reduce employee turnover rates, we have invested in attracting and retaining talent in diverse company areas. As a result, the number of employees discharged in 2012 was lower than the previous year. 307 (2) Due to the reduced number of workers in the North region, it was consolidated with the Centre-west region for staff turnover data. GRI LA2 139 unilever brazil Sustainability Report 2012 PEOPLE back to summary We conduct market surveys to ensure salaries at Unilever are competitive. We also use variable remuneration, such as the Profit Share Programme, as a tool to retain talent. 140 unilever brazil Sustainability Report 2012 PEOPLE back to summary Occupational Health and Safety Minimizing risks Accident prevention and risk management underscore the importance of a health and safety culture in the work place The areas responsible for managing Health and Occupational Safety in our operations are Health and SHE (Safety, Health, Environment). These themes are discussed every two months by the Central SHE Committee , led by the company president, with leaders from the Sales, Human Resources, Legal and other areas. The committee is charged with developing strategies and initiatives related to employee health and safety and ensuring they are implemented and communicated to the operations. Activities are divided between manufacturing, covering all the plants, and non-manufacturing, which includes the distribution centres, offices, Sales, Merchandising and Research and Development. This work is aligned with Unilever global guidelines, which promote continuous improvement of the management system and a programme based on safe behaviour to ensure the physical integrity of employees and service providers. The management system, called the Framework Standards (FWS), is based on international standards and directives, such as ISO 14001 and OHSAS 18001. Divided into 17 topics, the FWS orients management practice related to safety and the environ- GRI LA7 ment in our activities. This methodology enables us to improve structural conditions, identify environmental factors and impacts, occupational risks, as well as applicable legislation, and draft guidelines aimed at ensuring that all employees are prepared to minimize risks and prevent accidents. With a focus on changing employee behaviour and promoting a safety culture in the work place, we implemented the BeSafE (Behaviour Safety Excellence) programme, derived from its predecessor BBS (Behaviour Based Safety), which was developed in partnership with Dupont and was in place in seven plants and the sales and merchandising operations. With support from a specialised consultancy, we prepared a strategy applicable both to manufacturing and non-manufacturing operations aimed at changing the habits of our employees. BeSafE will be implanted at every stage of each operation over the next two years. The core principle of the programme is the engagement of senior management in the question of safety, driving a change in culture which extends beyond the factory premises. In recent years, we have achieved important progress in occupational health and safety and are on track to fulfil our target of a 50% reduction in workplace accidents by 2020, against the base year of 2008. We ended 2012 with a Total Recordable Frequency Rate (TRFR) for accidents with injuries of 0.65 in the country – below our target of 1.14. Three of the company’s plants in Brazil (Garanhuns, Ipojuca and Vinhedo) had zero accidents, excluding incidents requiring only first aid. Pouso Alegre had its lowest rate since monitoring of the indicator was begun in 2002, with a 77% reduction compared with 2010. Goiânia also performed well, with a 61% reduction in its TRFR – from 1.59 in 2011 to 0.63 in 2012. Among the units recording no accidents, Vinhedo, in São Paulo state, received important recognition in 2012 for its safety record and campaigns. The unit was the winner of the global Unilever Safety Awards, presented during the Global Compass Awards ceremony. Competing with Unilever plants worldwide, Vinhedo beat the other finalists, from India and Poland, with its program to build a safety culture among employees, resulting in zero accidents (excepting incidents requiring first aid) over a period of more than two years. 141 unilever brazil Sustainability Report 2012 PEOPLE One of the initiatives it adopted was the Guardian Angels programme aimed at eliminating critical behaviour that can lead to accidents, which was replicated in other plants in Brazil and Latin America. In 2012, it was implemented in the Goiânia plant, for example, where 7,552 behavioural observations were made. The director of the Vinhedo unit, Rodnei Moraes, received the award from the global president, Paul Polman. atizing safety behaviour to prevent accidents among these professionals. During the year, the committee extended its sphere of influence and involved other company areas, with preparations to implement a series of tools to improve safety performance. Even so, there was one fatality during the year, the result of a work accident involving one of our sales promoters in the North of the country. The promoter was working in the stock area of a sales outlet when he fell off a ladder. As is standard practice at Unilever, our Health team provided the employee’s family with all the necessary assistance after the accident. In parallel, a SHE team was created for the merchandising area to identify specific safety improvements for these employees. A number of advances have been achieved in health and safety in locations such as distribution centres, research and development centres and offices. No accidents were recorded in these locations during the year, with the exception of incidents requiring only first aid. This contributed to a 33% reduction in accidents in our non-manufacturing operations in Brazil. During the year, we also maintained our Safe Driving programme, monitoring and providing company drivers with orientation on reducing the risk of traffic accidents. This involves training and orientation on safety items that are mandatory in the Unilever fleet, such air bags and ABS brakes. In 2012, more than 450 eligible employees underwent this training. We also established the Safe Driving Committee, led by the vice president of Sales, to oversee improvements. The committee acts nationwide and includes a plant representative. Non-manufacturing Currently one of the main challenges in employee health and safety for Unilever Brasil is in its non-manufacturing operations, where we have the opportunity to work on safe behaviour within a framework that will ensure employees are prepared to minimize risks and prevent accidents. This is especially important in locations where our influence is restricted, such as the environments in which our merchandising and sales teams work, which are not on Unilever premises. In these operations, the establishment of the BeSafE programme is considered a priority. In this respect, the most critical area is Merchandising. Working in an environment not controlled by Unilever, these teams are exposed to specific risks which depend on the conditions on our customers’ and partners’ premises. To reduce risks and reinforce guidance or preventive programmes, the company implemented the Merchandising Committee in 2012. This is responsible for identifying improvements and system- GRI LA7 back to summary Occupational Health In the Occupational Health area, the focus is on promoting quality of life and preventing occupational illnesses. The company’s Occupational Health area is responsible for implementing an adequate work environment and making it comfortable and healthy for our employees. This work is undertaken in line with Unilever standards and includes a risk management plan that also takes into account Brazilian legal standards, with some structural adaptations to ensure that we are not restricted only to legal requirements. At the plants, for example, our system employs a tool that identifies risks to which homogenous groups may be exposed, enabling the adoption of control measures to ensure operational and workplace safety. This system is revised annually, and as the controls are refined, the risk management process becomes more critical and more detailed. To reinforce the prevention of accidents and occupational illnesses, we organize annual training sessions on occupational risk, incorporating themes such as respiratory protection, auditory health and ergonomics, among others. The focus on Health Education is replicated in periodic training and refresher courses for homogenous employee groups and during the induction process for new employees. Specific proactive health themes are also the object of corporate campaigns, such as World Health Day and World No Tobacco Day, among others. Our challenge is to cover all the employees exposed to specific risks. At the plants, other campaigns are organised in accordance with local needs, such as dengue prevention, tuberculosis, blood 142 unilever brazil Sustainability Report 2012 pressure, serious illnesses etc. Health tips are also disseminated via our notice boards, the electronic newsletter BIS (which circulates companywide) and internal TV, providing objective and active communication of important subjects, such as epidemics, healthy habits, coronary health, diabetes, Aids and smoking. In the non-manufacturing area, the main risks employees are exposed are related to ergonomics, in particular posture. Over the last four years almost all employees have received training in this and had their works stations assessed and adjusted. These measures are in addition to already existing programmes such as workplace exercises and orientation on posture. In 2012, the planning for the period was carried out and health controls maintained under the Occupational Health and Medical Control Programme (PCMSO in the Portuguese acronym). We also monitored occupational risk in line with the Environmental Risk Prevention Programme (PPRA), as well as analysing medical and dental assistance plans to identify deviations and ensure more focused and assertive management. back to summary PEOPLE Injury rate and work accidents Unilever work accident rates (data monitored globally) 2010 2011 2012 2,03 0,8 0,65 Lost time accidents (LTA) 11 16 15 Restricted work cases (RWC) 10 4 1 Medical treatment cases (MTC) 12 12 8 First aid cases (FAC) 140 101 84 Non-injury frequency rate (NIFR)² 0,67 0,41 0,31 Severity Rate³ 0,27 0,31 0,34 TRFR: Total Recordable Frequency Rate1 (1) calculation of Number of Injuries / per 1,000,000 man/hours worked* (Does not include minor injuries requiring first aid) (2) Index for traffic accidents involving employees, without injuries, expressed in 1 million kilometres driven (3) Calculation of days lost through general illness (not including injuries and occupational illnesses) divided by the effective average number of employees. GRI LA7, LA8 143 unilever brazil Sustainability Report 2012 back to summary PEOPLE Days lost rate Injury rate by gender 2010 2011 2012 8,00 5,59 8,55 Days lost rate - women NA NA 8,41 Days lost rate - men NA NA 7,12 Days lost rate 2010 2011 2012 2,21 1,35 1,21 Injury rate for women NA NA 1,45 Injury rate for men NA NA 1,12 Injury rate Number of injuries / Total man/hours worked *200.000 Days lost rate, by operating unit and gender Overall Women Men Injury rate by operational unit 7,96 0,00 9,44 Goiânia 30,47 36,53 27,50 Injury rate, by operational unit and gender Igarassu 0,24 0,00 0,27 58,08 0,00 65,21 Recife 2,96 0,00 4,58 Pouso Alegre 5,87 8,33 5,06 Suape 0,00 0,00 0,00 Valinhos 4,72 6,05 4,01 Vinhedo 0,00 0,00 0,00 NM 5,33 9,56 0,84 Garanhuns Indaiatuba TDP = Total days lost / Total man/hours worked *200.000 Overall Women Men Garanhuns 2,34 0,00 2,78 Goiânia 1,68 1,57 1,73 Igarassu 3,77 5,41 3,52 Indaiatuba 1,09 0,00 1,22 Recife 0,93 1,10 0,84 Pouso Alegre 2,61 2,63 2,60 Suape 1,69 1,06 1,98 Valinhos 1,27 1,41 1,19 Vinhedo 1,42 2,79 0,95 NM 0,85 1,29 0,67 continuation GRI LA7 144 back to summary PEOPLE unilever brazil Sustainability Report 2012 Absenteeism Rate Absenteeism Rate* Absenteeism rate Women Absenteeism rate Men injuries among third-parties 2010 2011 1.662 1.908 NA NA NA 2012 1.834 NA Number of days lost due to injuries, occupational illnesses and other illnesses / Total man/hours worked*200.000 * takes into account days lost through injury, occupational illnesses and other illnesses. 932 387 Absenteeism rate, by unit and gender 2010 2011 2012 NA 36 362 Overall Women Men Number of injuries among third-parties Garanhuns 2898 NA NA NA NA 241 Goiânia 5866 5965 5818 Number of injuries among thirdparties - women Igarassu 701 NA NA Number of injuries among thirdparties - men NA NA 94 Indaiatuba 2453 NA NA *takes into account work accidents and accidents on way to/from work Recife 2877 5291 1554 Pouso Alegre 3418 NA NA Suape 3190 NA NA Valinhos 1874 NA NA Vinhedo 2535 NA NA 922 76 7 NM continuation GRI LA7 145 Number of injuries among third-parties, by operational unit and gender back to summary PEOPLE unilever brazil Sustainability Report 2012 Overall Women Men 1 NA NA Goiânia 10 1 9 Igarassu 6 1 5 Indaiatuba 2 0 2 Recife 13 0 13 Pouso Alegre 10 5 5 Suape 7 1 6 Valinhos 7 3 4 Vinhedo NA NA NA NM 306 230 50 Garanhuns 2010 2011 2012 NA 312 90 Number of injuries among third-parties - women NA NA 19 Number of injuries among third-parties - men NA NA 41 Days lost, third-parties Total days lost among thirdparties, by operational unit and gender Overall Women Men 15 NA NA Goiânia 0 0 0 Igarassu 3 3 0 Indaiatuba 0 0 0 29 0 29 NA NA NA 15 NA NA Valinhos 9 2 7 Vinhedo 0 NA NA 19 14 5 Garanhuns Recife Pouso Alegre Suape NM *takes into account days lost through work accidents and accidents on way to/from work GRI LA7 146 unilever brazil Sustainability Report 2012 PEOPLE back to summary In addition to training, we promote educational and preventive measures and health and safety services. These involve specific initiatives extensive to employees’ immediate families 147 unilever brazil Sustainability Report 2012 Support for employees In addition to training, we promote educational and preventive measures and health and safety attendance for our employees. Some activities, in particular those focused on disease prevention and treatment, are extensive to employees’ immediate families, but not to the communities under Unilever’s sphere of influence. These actions consist of specific initiatives in areas such as smoking, prevention of cardiovascular disease, preventive health, risk behaviours and oral health. Orientation is provided via the Health Portal on the company intranet and our newly-launched Unilever Health Institute (http://www.unileverhealthinstitute.com.br). One of the main initiatives is the Crescer (Grow) Programme, which provides financial, legal, psychological and social assistance for employees and their dependents. The programme is offered in three plants and three offices, the distribution centres, as well as to the Sales teams. Most of the assistance provided is related to health, an area in which employees also have access to a consultancy comprising doctors, nurses and technicians. Management of company medical and dental assistance plans comes under the Benefits area, the aim being to improve quality of life and monitor the use of the plans and the most common illnesses and risks among employees and dependents. With respect to third-parties, in 2012 we promoted a Drivers’ Encounter in the cities of Contagem (Minas Gerais) and Pinhais (Paraná). This engaged 209 lorry drivers in the discussion of Unilever working procedures and questions related to health and quality of life. During the four days of the event (two in each lo- GRI LA8, DMA LA Occupational Health and Safety PEOPLE back to summary Through the Crescer programme, in place in a number of manufacturing and non-manufacturing operations, we provide employees with financial, psychological, legal and social orientation. cation), the drivers underwent medical examinations which included cardiovascular risk, blood pressure, glycaemia, weight, BMC, among others. Participants also received a booklet with information and advice on daily activities, such as traffic safety, customer service, vehicle inspections and tips for a healthy and balanced life style. 148 unilever brazil Sustainability Report 2012 back to summary PEOPLE Development Closer focus on the work force Appraisal and training processes focus on each area’s needs and reinforce the company’s commitment to employee development To ensure our teams are integrated with the company’s culture and participate in its growth, Unilever Brasil employs management mechanisms that range from the admission process to employee appraisal and development programmes. Given the geographical dispersion and the differences between our manufacturing and non-manufacturing operations, employee recruitment at Unilever Brasil is coordinated by the Human Resources area and conducted by specialized consultancies. In accordance with the region and the qualifications required for each position, we prioritise labour from the surrounding community and the admission of local residents whenever possible. However, a major management directive is to contract from within the company – giving preference to existing employees in filling internal vacancies and investing in the construction of long-lasting, successful careers within the organisation. Depending on the type of operation – plants, regional sales offices, distribution centres, offices –, the proportion of local GRI EC7 employees may reach up to 80% of the work force. The remaining positions are leadership roles – at director, coordinator or manager level – where employees are subject to our relocation or promotion policies in alignment with their career plans. In a number of cases, local hiring accounts for 95% of the headcount at a unit. The percentage reported corresponds to Unilever in Brazil. The organisation’s global reach, on the other hand, favours employee interchanges with other group companies. We ended 2012 with 66 Brazilians working in other Unilever subsidiaries around the world; in Brazil, there were 28 foreign employees occupying leadership positions. With respect to employee development, we believe that our appraisal processes, combined with training and development focused on the needs of each area or operation, are important in understanding the improvements our managers and teams should address. The company is committed to ensuring that employees’ growth exceeds that of the business. Members of local Employees community (2012) Senior management * Vinhedo 98% 54% Valinhos 64% 50% Goiânia 79% 38% Garanhuns 99% 0% Indaiatuba 98% 30% Pouso Alegre 94% 0% Igarassu 40% 0% Suape 36% 20% Overall average 76% 24% * “Senior management” refers to the positions of Area Manager, Factory Manager and Regional Sales Manager. 149 back to summary unilever brazil Sustainability Report 2012 PEOPLE Our main appraisal tool is the Performance Development Plan or PDP, which has been in place for more than seven years. This is used to assess all employees and prepare a development plan for them with support from their immediate superior, establishing targets and objectives linked with their career development. Interns and third-parties are subject to other performance analysis processes. For determined groups, we elaborate specific models based on the PDP. Administrative, management and director level positions use a system called Talent Online Plus for appraisals. In the case of sales promoters, due to their geographical dispersion, we use plans that reproduce this tool. At the plants, we apply PDP-F, which was extended to more units in 2012. We also support employees with training courses elaborated to develop general and specific skills for different work posts in the company. Some modules, such as those addressing human rights and sustainability, are applicable to all employees at management level or above. All new employees also undergo specific training focused on the Sustainable Living Plan and company operations. Furthermore, there are mandatory courses on quality and safety. These programmes are extended to third-parties working in our buildings and plants and last approximately one hour. In 2012, the company provided a total of 425 thousand hours training, particularly noteworthy being the number of hours training per employee for the administrative teams and the trainees (see table). To drive employee retention and development, we have a variable remuneration policy which includes the employee profit share plan (PPR) and bonuses for managers. Additionally, there are tar- gets for team satisfaction and sustainability deliverables which impact leaders’ remuneration (read more in Corporate Governance). Another focus in this policy is the retention of professionals upon return from leave, in particular maternity leave. At Unilever Brasil, maternity leave for employees is six months, two more than the period stipulated by law. In 2012, 169 women took this leave (including those who left in 2011 and returned the following year) and only one did not return to work after the birth of her child. Of the women who received this benefit during the year, 22 are no longer in the company (13%). The reasons for leaving include performance, restructuring or resignation. GRI LA10, LA11, LA12, LA15, DMA LA Training and education The company also strives to reintegrate those returning from maternity leave to keep them engaged in the company culture and enable them to fully exercise their family and other nonwork related activities. The turnover rate for these employees is similar to the average for the company as a whole. As part of this incentive we have a nursery for children aged 0 to 2 years at Unilever’s head office (JK1), and we offer courses for mothers-to-be and talks on subjects related to childhood and adolescence. In our other units, employees are entitled to a crèche allowance. With respect to paternity leave, we are in compliance with legislation, which allows five days leave after the birth of a child. However, there is no formal policy or accompaniment in these cases. Hours of training /2012 Functional category director total total hours no. of training employees hours per employee 1.896,65 121 15,67 management 12.926,40 532 24,30 administrative 374.430,50 6918 54,12 operational 25.708,90 5178 4,97 apprentices 3.342,75 144 23,21 trainees 2.440,75 65 37,55 interns 4.573,55 315 14,52 425.319,50 13.273 32 total 150 unilever brazil Sustainability Report 2012 Future leaders In place for more than 40 years, the Unilever Brasil Trainee Programme is one of the company’s most important tools for attracting and grooming talent for leadership positions. Annually, we organize a selection process which receives an average of 46 thousand applications. From these, young candidates are selected to be integrated and trained for all areas of the business. Currently, around 21% of senior management positions are occupied by ex-participants in the three-year programme. Similarly, 43% of the company’s manager and director level vacancies during 2012 were filled internally, reflecting our strategy of prioritizing long-term career building within the company. The trainee programme is aimed at developing middle and senior managers in the medium to long term. For this reason, we seek to engage participants in our business and sustainability strategies and targets to drive their commitment to our plan to grow while reducing our environmental impact. As part of the plan to develop management competencies, one and a half years after entering the company, all trainees take part in a Project Management training module, involving initiatives to familiarise participants with Unilever project management tools and techniques. Since 2009, this module has been integrated with the Sustainable Living Plan, which shapes the themes and priorities for these projects. This enhances the company’s capability to respond to indicators or questions requiring attention. PEOPLE back to summary The Trainee programme enables future Unilever Brasil leaders to access knowledge and develop sustainability-related efficiency measures. Currently, 21% of senior management positions are occupied by ex-participants in the programme. Elaborated and approved by the Sustainability Committee, which is also responsible for the final evaluation of each project, the themes are related both to the manufacturing and non-manufacturing areas. A core criterion is alignment with the most relevant themes established in the Sustainable Living Plan and the Unilever Brasil Materiality Matrix. We also prioritize initiatives aimed at enhancing company management tools and addressing a number of indicators monitored internally. During two months, the trainees meet in groups to develop projects that incorporate sustainability-related themes into business strategy. At the end, the Sustainability Committee evaluates each project, selecting those showing greater technical and financial feasibility and defining an action plan to implant them during the following year. For example, one of the proposals presented in 2011 led to a pilot project to assess the impacts that the installation of a Unilever operation - either a plant, distribution centre or office - has on the surrounding community. The tool evaluates the effects of our business in the social, environmental and economic dimensions of the community. Implantation was initiated in 2012, accompanying work on the construction of a new distribution centre in the city of Pouso Alegre (Minas Gerais). In 2012, the Sustainability Committee evaluated five projects developed by the trainees. The initiatives addressed Supplier Monitoring, Education for Conscious Consumption, Sustainability in Sales, Zero Landfill and Community Impacts. After evaluation and some isolated adjustments, all the projects were selected and implementation will be underway in 2013. 151 unilever brazil Sustainability Report 2012 back to summary PEOPLE In 2012, we brought the Sustainable Living Plan closer to our employees’ daily routines. We also maintained a specific training programme for all new employees. 152 unilever brazil Sustainability Report 2012 PEOPLE back to summary Engagement Integrated thinking Training and communication between teams reinforce the diffusion of the company’s strategic directives, driving the creation of a single culture focused on our targets and goals Since 2008, with the strategic planning set forth in UB 2012, we have been involved in the cultural transformation of our business, with the objective of engaging diverse stakeholder groups and developing a growth model that also enables the reduction of social and environmental impacts. It is Unilever’s understanding that the participation of all the factory, office, logistics centre and regional sales teams in this process is essential. Since early 2011, in the wake of the Sustainable Living Plan, we have focused on engaging employees and communicating our goals to embed them in the business. At the end of the first year results were positive: we had engaged 91.2% of our employees through both online and face-to-face tools designed to reach the entire work force, including those working off Unilever premises, such as the sales and merchandising teams. The content was formatted in accordance with the employees’ area of activity to ensure they would assimilate it and understand it in the context of their own activity. GRI 4.15, 4.16 In 2012, we took this concept a step further and brought the Sustainable Living Plan closer to the daily routines of our employees. We also organized a training programme for new employees to ensure they are aware of Unilever Brasil’s targets and goals from the outset. One of the main challenges is driving employee awareness of Unilever Brasil’s projects to reduce social and environmental impacts in the context of the diverse functions they exercise in the company. The Sustainability area organizes periodic meetings and presentations with the different teams to engage them in these commitments. These measures are allied with institutional actions. In our offices, we implanted projects to reduce water and paper consumption, as well as promoting selective waste collection. Also, whenever possible, we included socio-environmental themes in leadership, team and factory meetings in an effort to integrate them into the everyday operations of the business. In line with our global target of reducing printing volume, we developed measures on a national scale to engage all Unilever computer users in the impact reduction initiative. From 2011 to 2012, we conducted a campaign that in just three months resulted in an average reduction of 10% in printing volume at Unilever Brasil’s head office – corresponding to an economy of around 140 thousand pages per month. Comparing September to December 2011 with the 4-month corresponding period in 2012, we achieved a 23% reduction in total volume, equivalent to printing 400 thousand pages less a month. Our global target is to reduce paper consumption by 30% per capita in our 21 main markets by 2015. This measure was reinforced by a trainee project implemented in 2012 aimed at raising employee awareness, which led to a reduction in the number of pages printed in different Unilever offices and units. The project calculated the company’s spending on printing, the environmental impact this generates and proposed small measures to reduce costs with office supplies. It also indicated potential solutions to reduce printing in specific areas, such as storing and transmitting information electronically, for example, in expense reimbursement requests for transportation providers and suppliers. 153 unilever brazil Sustainability Report 2012 Communication channels Unilever’s internal communication is structured to drive the company’s sustainable growth aspirations through the active involvement and participation of employees. Relations between the company and its professionals are supported by diverse communication channels aimed at creating and reinforcing ties between employees and corporate strategy and commitment to sustainable development. Some important channels are described below: GRI 4.16 PEOPLE back to summary BIS!: a weekly electronic newsletter for all employees having a Unilever email address (around 6 thousand) Internal campaigns: dissemination of varied themes in campaign format. Inside.Unilever – the company intranet, which is updated daily. Corporate email: internal email for diverse communications, through which employees may contact the communication area to request information, clarify doubts and send suggestions. Notice boards: notice boards in the offices, plants, regional sales offices and distribution centres, updated weekly. Chat with the president: Two of these encounters were Encontro magazine: For the first time, the magazine reaorganised in 2012. Participation was open to all employees, ched all employees, with delivery to the homes of sales pro- with questions addressed directly to the president in real-timoters. In March 2012, the launch of the electronic version me. The questions and answers were also published in BIS. of Encontro enabled a 50% reduction in the volume of printed magazines distributed in the plants and offices. Around President’s video: A quarterly broadcast by the president 90% of the people working in these locations approved the presenting the company’s results to all Unilever Brasil employees. These were previously communicated by email. The reduction in the number of print copies. president recorded five videos in 2012. Corporate TV: Television channels in the administrative offices, combining varied internal text and video content, as well as external news. 154 unilever brazil Sustainability Report 2012 PEOPLE back to summary Feel Good Flexible working In 2012, Unilever’s well-being programme was focused on developing work regimes and routines that enable greater flexibility and quality of life without compromising performance In place in the main Unilever operations in Brazil since 2004, the Feel Good programme offers employees diverse leisure, wellness and health-related activities aimed at promoting a healthy and stimulating working environment. Based on six pillars (see box), in the offices and plants we have organised programmes ranging from sports to reading and talks on quality of life and culture. In 2012, we filled 31% of the places offered to employees, compared with 36% the previous year. Since 2011, we have focused on communicating and reinforcing the Feel Free pillar of this programme, whose core objective is to enable employees to improve quality of life and develop more flexible work routines without jeopardising their performance, based on the concept of Agile Work. With flexible working hours and remote work for administrative and management positions, we believe our staff can es- tablish their own schedule and do their work normally, resulting in a better fit with their personal needs and obligations. Throughout 2012, we stepped up the implantation of Feel Free, in particular in our offices, and mapped a total of more than 900 employees eligible for flexible working hours and home office schemes. More than 30% of managers and more senior employees now participate in these programmes. This policy was essential in enabling us to deactivate the JK2 office in São Paulo’s Vila Olímpia district. The 300 employees from Unilever’s regional operations who worked in the building were transferred to the JK1 office, which already housed 1,300 people. Layouts and meeting areas were also reorganized to increase teleconference and videoconference facilities, thus reducing the need for employees to travel. With the conclusion of this measure in November 2012, we have produced positive results in our environmental impact - with lower energy consumption, for example-, reduced operating costs and greater quality of life of our employees. This is reflected in the results of the GPS survey, according to which 78% of the company’s employees in Brazil agree that they are able to achieve a balance between work and their private life. A survey of Feel Free participants conducted at the end of 2012 showed that 81% adopted flexible working practices more frequently during the year and that 88% of the eligible employees take advantage of one modality of flexible working (home office or flexitime). 155 unilever brazil Sustainability Report 2012 PEOPLE Feel Good Pillars Feel Free – Offers employees flexible work alternatives enabling them to balance their professional and private lives. It is linked with the implementation of the Home Office and Flexible Working Hours programmes. Feel Easy – Designed to make life easier for employees by providing services through partnerships with commercial establishments and an exclusive Unilever store with special prices. Feel Good Kids – This activity provides support for employFeel Fresh – This encourages employees to engage in phys- ees who have children, with facilities such as a nursery for children up to two years of age at the Unilever head office, ical activities and stay fit, with running and walking, yoga, courses for mothers-to-be and talks about children and Pilates, shiatsu, dance classes and nutritional guidance. Most of these activities take place on Unilever premises, but teenagers by specialists. Every year we promote Unilever Kids, an event in which children visit their parents’ work we also sponsor activities outside the company. place. Feel Fun – Activities such as choir singing, corporal expression to stimulate creativity and make employees think, Feel Alive – A series of reading activities and talks aimed at promoting self-knowledge. laugh and have fun in the work place. back to summary A priority in 2012, the Feel Free pillar extended flexitime and remote working policies for employees. By the end of the year, more than 30% of those eligible had adopted these schemes. 156 unilever brazil Sustainability Report 2012 back to summary PEOPLE Our benefits Complete package The benefits policy strengthens Unilever’s ties with it employees and helps build robust careers in the company To attract and retain the best professionals in the market, we offer our direct employees a structured benefit policy that includes medical, financial and professional support, in addition to diverse types of allowances, leaves, meal and transportation subsidies. In an increasingly competitive labour market, Unilever Brasil has prioritised the construction of solid careers within the company. We promote the development of employees in their field of activity and offer programmes for them to plan their retirement. Currently our benefits are extended to all employees, with the exception of the medical check-up, which is restricted to leaders, and the share acquisition plan, which is for directors, vicepresidents and the president. The third-parties working in Unilever Brasil operations are subject to their employers’ benefit policies, while interns have specific contract terms. We do not employ part-time or temporary workers. GRI LA3, LA11 To help employees plan their retirement, since 2009 we have had the Vital&Idade – Retirement Planning Programme, open to employees aged 53 or over. In 2012, approximately BRL 63.000 was invested in the programme, directly benefiting 37 employees, a similar number to last year. Vital&Idade offers employees the support of a consultancy which organizes workshops, talks and other activities; no financial assistance is involved. Benefits Benefit Distribution Parking Crèche allowance or crèche Meal vouchers or Canteen Company bus Personal accident and life insurance Some locations Some locations All Some locations Interns Directors, vice Share acquisition plan presidents, president Meal vouchers Goiânia unit Medical check-up Managers Dental assistance All Life insurance for international travel All Retirement medical assistance plan All Subsidised drugstore purchases All Preventive medicine programmes All Annual examination All Allowance for disabled children All Funeral allowance All Recognition for length of service All after 15 and 25 years Christmas toy hamper All continuation 157 PEOPLE unilever brazil Sustainability Report 2012 Pension plan Purchase of company products All Assistance in purchase of school material All Transportation allowance All Life insurance All Health plan All Incapacity /invalidity coverage All Maternity/paternity leave All Retirement fund All GRI EC3 UnileverPrev is a private, not-for-profit pension benefit plan providing employees with a pension to complement the state pension scheme and a retiree medical assistance programme. The UnileverPrev Complementary Pension Plan is a variable contribution plan depending on salary band, providing a normal retirement benefit (60 years of age and three years participation in plan) and an early retirement benefit (between 55 and 59 years and 11 months of age and 3 years participation in the plan), in addition to a minimum benefit, a sickness allowance, a widow(er)’s pension, as well as fulfilling the mandatory legal requirements (self-sponsorship, deferment, withdrawal and portability). In addition to offering the private pension plan, Unilever makes a matching contribution of 100% of the amount paid in by the employee, the maximum amount being determined by the employee’s basic salary. In November 2012, the fund had a reserve of BRL 2 billion. The fund is aligned with the Unilever Code of Business Principles and its managers are oriented to prioritise investments in companies that incorporate social and environmental values, as well as high standards of corporate governance and transparency in their operations. back to summary Our benefits policy is an important tool for retaining talent and ensuring employee satisfaction. 158 unilever brazil Sustainability Report 2012 back to summary PEOPLE Diversity The importance of inclusion The overriding objective is to develop an environment open to multiple influences, reflecting all the diversity of Brazilian society Diversity is a critical question in people management for Unilever Brasil. Our main objective is to develop a diverse internal environment, mirroring the complexity of Brazilian society in our operations. Since 2010, we have had a Diversity Committee with leaders responsible for promoting inclusion at different levels and in different areas of the company, with a primary focus on: gender, social inclusion, inclusion of the disabled and leadership styles. In 2011, we initiated a project to map diversity at Unilever Brasil. Because it is a strategic focus for the company, this project was extended throughout 2012. Our principal target is to achieve a gender balance by 2015, increasing the number of women in the company, in particular in leadership positions. During the year, we managed to increase the participation of women at practically all levels, particularly worthy of note being the number of female directors. Here, the percentage of women grew from 39% to 45% (see tables). GRI LA13, DMA LA Diversity and equal opportunity Diversity at Unilever Brasil Percentage of employees by gender 2011 2012 Men Women Men Women Director level 61% 39% 55% 45% Management 53% 47% 52% 48% Administrative 72% 28% 71% 29% Production 78% 22% 75% 25% Apprentices 59% 41% 77% 23% Trainees 52% 48% 47% 53% Interns 42% 58% 42% 58% Total 73% 27% 71% 29% continuation 159 Total and percentage of disabled people back to summary PEOPLE unilever brazil Sustainability Report 2012 2011 2012 Total number % (in relation to total in category) Total number % (in relation to total in category) 0 0 251 194 0 0 0 445 0% 0% 2% 1% 0% 0% 0% 3% 0 1 239 193 1 0 0 434 0% 0% 3% 4% 0% 0% 0% 3% Director level Management Administrative Production Apprentices Trainees Interns Total Percentage of employees, by age group (%) 2011 2012 Between Up to 30 Above 50 30 and 50 years years years Between Up to 30 Above 50 30 and 50 years years years Director level 0% 89% 11% 0% 92% 8% Management 16% 77% 7% 14% 78% 8% Administrative 45% 51% 3% 43% 53% 4% Production 37% 56% 7% 33% 57% 10% Apprentices 100% 0% 0% 100% 0% 0% Trainees 100% 0% 0% 98% 2% 0% Interns 99% 1% 0% 100% 0% 0% Total 42% 53% 5% 39% 55% 6% GRI EC5, LA13, DMA LA Equal remuneration for women and men For this reason, many career development programmes and plans are focused on women, with a balance already having been achieved or being close to achievement at some levels, such as in trainee and middle management positions. It should be noted, however, that the company offers equal development opportunities, and that there are no salary differences between men and women at Unilever. Any differences between posts at the same hierarchical level are due to other factors such as length of service or performance bonuses, rather than gender. Among administrative staff, for example, women earn proportionally more. This is due to the fact that there are more women in coordination positions, for example. In the production area, the opposite is true, with slightly higher salaries for men, due to the predominance of men in higher positions in the structure. In 2012, the lowest salary paid by Unilever was 1.15% higher than the national minimum salary; 0.67% received this amount, 0.15% of whom were men and 0.52%, women. Our main tool for engaging our female employees is the global Women’s International Network programme, a network to share know-how and experience aimed at driving the professional development and establishing career plans for women. In 2012, we organised a calendar of meetings for both male and female employees in different positions at management and director level. Brazilian and international specialists were invited to discuss subjects such as female presence in organisations and diversity in corporate management, among others. We also organised networks of up to 15 women each to discuss the topics raised in the WIN events in Brazil. In 2012, there were four such meetings involving 160 people, of whom 119 were women. 160 PEOPLE unilever brazil Sustainability Report 2012 back to summary Proportional salary – gender 2011 2012 Proportion m/w Proportion m/w Director level 88% 96,94% Management 100% 105,66% Administrative 108% 63,81% Production 100% 142,36% Apprentices 100% 100,96% Trainees 141% 104,91% Interns 107% 102,21% Average remuneration by functional category The company maintained the counselling programme initiated in 2011 to develop high potential female employees. Focused on professionals eligible for director and vice president level positions, the Mentoring Programme consists of pairs (a female manager and a senior manager) who elaborate development plans during the course of the year. 70% of the activity is developed in the work place, 20% in mentoring activities and 10% in training, reading and courses. Around 19% of the eligible employees joined this initiative during the year. At management level, a coaching programme was established to prepare men and women who have been promoted recently GRI LA14 or who have the potential to assume management positions. In 2012, 51% of the eligible employees took part in the programme. This has led to some improvements in our gender indicators. 54% of our trainees are women, for example, a six percentage point increase over 2011. In management roles, women occupy 47% of the positions. However, some levels, such as administration, are still a challenge for the company. With respect to social inclusion, we have not yet reached the minimum level of disabled employees required by law (5% of total headcount for companies with more than a thousand employees). In part, this is due to the nature of our activities. It is difficult to employ people with certain kinds of disability in our manufacturing plants – where frequently inaccessibility constitutes a problem, thus restricting the options available. Furthermore, irrespective of the sector or kind of activity, in Brazil there is an accentuated scarcity of skilled disabled manpower. To advance in this field, more important than hiring human resources consultancies to recruit disabled employees, we have identified the necessity to develop our employee body as a whole, placing value on the integration of the disabled and enabling them to build a career in the company. We have developed a partnership with the company Proton whereby our employees may recommend disabled people for company selection processes. Under the scheme, employees supply the name and contact details of potential candidates, who are then invited to apply for the positions. In 2012, we maintained the integration of young people from underprivileged communities through our Social Inclusion project. Developed with support from NGOs, institutes and specialised consultancies, the programme offers training and educational subsidies (educational materials, course fees, allowance, transportation allowance, etc.), enabling the young people to participate in internship programmes. 161 unilever brazil Sustainability Report 2012 Since it was created in 2004, more than 50 young people have benefited from the programme, with 73% concluding it. Around 47% have been contracted as employees, with a retention rate of more than 70%. In 2012, 29 young people took part in the inclusion project activities. Whenever possible, we seek to hire local residents in our business, training them to meet production needs and market demands. In Indaiatuba (SP), for example, we established a partnership with the Senai (National Industrial Training Service in the Portuguese acronym) whereby 60 students on the institution’s chemistry course have classes at our plant in the same district. This activity will be extended to other operations in 2013. PEOPLE back to summary The effort to create an internal environment that reflects the diversity of Brazilian society has lead to investments to include women in leadership roles and to value ethnic and social minorities. 162 unilever brazil Sustainability Report 2012 back to summary PEOPLE A social inclusion project developed with NGOs and other partners offers full support and training for young people 163 unilever brazil Sustainability Report 2012 PEOPLE back to summary Labour relations In the common interest Union relations seek to protect the mutual interests of the company and its employees Unilever Brasil maintains relations with around ten unions representing the main employee categories in the company. Our relations are based on transparency and defence of the mutual interests of the company and its work force. We believe that this dialogue has been positive: in 2012 and 2011, there were no paralysations, conflicts or strikes in our operations. All union and class association policy is based on the Code of Business Principles, resulting in a systematic information exchange network. Unions are informed of all strategic decisions affecting our employees. Unilever Brasil has a policy of providing notice of at least three months and sometimes more (up to one year), in the event of major changes in routines, while union agreements and conventions do not establish a formal period for the communication of such alterations. In 2012, the main focus of talks on operational changes was the transfer of production between the Southeast and Northeast regions in the powdered soap and ice cream categories, GRI LA4, LA5, LA6, LA9, HR5, FP3, DMA HR Freedom of association as part of our growth strategy (read more in Plants and Operations), and the implementation of the Ideal Factory concept in Valinhos (São Paulo). At Valinhos, communication to employees about the changes was initiated one and a half years before implementation. We provided guarantees on rights to the workforce, unions and local public authorities and managed to reallocate ten employees in the Indaiatuba and Vinhedo units, from a total of 94 layoffs. The same occurred in Pouso Alegre, where there was a reduction of 80 work posts due to a project to automate the end of the production lines. Many employees were transferred to other positions or benefited from scheduled promotions. In Goiânia, 290 workers were laid off, with due regard for company and legal procedure. The company organised sessions to clarify doubts about severance packages and the guarantee of some benefits for up to 12 months after dismissal, as well as accompaniment of the formal discharge procedure. During 2012, all workers were covered by collective bargaining agreements. We consider that there is no threat to our employees’ right to freedom of association, for which reason the company does not promote measures to support or encourage the right to free association. The union agreements to which we are party cover a series of questions, such as medical and laboratory examinations and the employee’s right to refuse to work in situations of serious or imminent risk, in line with occupational health and safety considerations in the work place. We comply with formal conventions such as internal accident prevention commissions (CIPA in the Portuguese acronym) and safety engineering and workplace medicine services (Sesmet), in addition to providing job-specific safety training. There are accident prevention committees in all Unilever business units. In the Sales and Merchandising areas the committees are structured regionally. 164 unilever brazil Sustainability Report 2012 Product responsibility back to summary Product life cycle Marketing and communication Legislation and labelling 165 unilever brazil Sustainability Report 2012 Product responsibility back to summary Quality and control Preserving our business involves accountability beyond rigorous control of processes and operations Our brands and products are part of the lives of millions of people in Brazil and worldwide. On a daily basis, we deal with consumer health, eating habits, safety and well-being, which entails responsibility that goes beyond the rigorous control of our processes and operations, from the innovation phase to product disposal. For any consumer goods company, in particular in the foods and personal care categories, this question is essential for the preservation of its business. At Unilever, assuring the quality of what we produce extends to the various phases of the product life cycle, from creation and development to manufacture, labelling, warehousing, distribution, brand communication, sales and consumption. The application of standards that ensure all new product launches are in accordance with global nutrition and health standards is mandatory. when an internal failure is identified (read more in Consumers). In addition to the consumer service team, we have specialized consultancies for our domestic cleaning, foods and personal care categories, responsible for dealing with consumers who report any kind of reaction to our products. Our major challenge, however, is not restricted to the question of product quality. In line with the directives of the Unilever Sustainable Living Plan, we actively engage with all the actors We conduct tests on products and packaging to eliminate in our value chain to persuade them to consider environmental, risks and evaluate performance and quality throughout every social and economic impacts in the product life cycle. process. In our plants, we have internal programmes to check We also strive to ensure efficiency and responsibility samples and security systems that identify manufacturing throughout the business chain. This means that after leaving anomalies. We comply with industry standards and develop our the factory the product must reach the consumer in accordance with our global quality standards, regardless of the route it folown methods of storage and distribution for each product category; in the labelling, communication and sales phases, we act lows or the outlet in which it is commercialized. To ensure this, in accordance with our Code of Business Principles, internal Unilever needs to engage its customers, suppliers and compolicy and Brazilian and international legislation to ensure the mercial partners in these processes. information we transmit is accurate. Company policy also mandates the use of raw materials Whenever we discover an anomaly via the consumer service, and inputs in compliance with the legislation of the countries in social networks or email, we analyse and investigate the case. which we operate. We do not, however, apply the Precautionary The product is returned to the factory and we prepare a report Principle, whereby the use of determined products or ingredion the problem, either replacing it or reimbursing the consum- ents about which there may be scientific uncertainties is avoider, in addition to adopting corrective measures in production ed, as is the case with genetically modified organisms. GRI 4.11, DMA PR Customer health and safety, DMA SC Minimizing Toxicity, DMA SC Genetically Modified Organisms 166 unilever brazil Sustainability Report 2012 Product life cycle Product responsibility Critical aspects of this process are the durability and quality of packaging – essential for conserving the product, in particular in the foods category– as well as socio-environmental As a company with global businesses and operations, Uniconsiderations. We test the strength and analyse how materials lever has product life cycle practices that involve different spheres of management. Processes related to the supply chain, should be conditioned to guarantee conservation and facilitate handling from the factory to the consumer. innovation and some aspects of logistics and distribution, for In the foods category, we conduct research to measure the example, are the responsibility of the regional team. In Brazil, positive and negative impacts of nutrients, with particular atall our activities are governed by global directives, documents such as the Code of Business Principles, the Sustainable Living tention to the sodium, fat and sugar content in products. Plan, product communication guidelines, in addition to Brazilian legislation. Manufacturing Below we show how we manage impacts at each stage of Production, the definition of the suppliers of inputs and our product life cycle. technologies and the establishment of management programmes in conjunction with customers come under the Innovation responsibility of the regional and local divisions. In addition The development of food, home care and personal care to identifying critical process controls, all the manufacturproducts is coordinated by the Research and Development area, ing units assure product quality through routine checks on comprising the local, regional and global management teams, the production lines, using an internal standard called CRQS in line with our governance framework. Depending on the cat(Consumer Relevant Quality Standard). This analysis consists egory and specific product attributes, innovations are submitted of sensorial assessments and evaluation of physical-chemical for assessment by SEAC, the company’s Safety and Environproperties to ensure that no products with quality deviations mental Assurance Centre located in England. leave the plants. Our specialists and scientists analyse all aspects of the Our processes are also based on specific standards for each product, from chemical composition to the design and type of category, defined or applied at a global level. Some plants, such packaging, to check its suitability and compliance with stanas Vinhedo, Valinhos, Indaiatuba, Ipojuca and Igarassu are ISO dards in the market in which it is to be commercialised. We also 9001 certified, and undergo annual assessments to maintain apply allergenic and dermatological tests, to identify possible this standard. In 2012, our Vinhedo plant received global recogrisks to the consumer during use and handling. nition in the Unilever Safety Awards, which is presented to the GRI PR1, FP5 back to summary company plants showing the best performance in health and safety worldwide. In all our plants, food quality and safety on the production lines is guaranteed by two processes: the QVP (Quality Verification Program), organised annually in the manufacturing and non-manufacturing operations, and the OQR (Operational Quality Review) for more vulnerable operations. These programmes establish handling, hygiene and control procedures in the operations, ensuring the verification, evaluation and conformance of the end product. In 2012, internal OQR audits were held in the Vinhedo and Goiânia units. Another focus of attention for Unilever are its co-makers, suppliers responsible for part of our production (read more in Enhancing Livelihoods). In some lines, such as shampoos and conditioners, we carry out periodic audits on our partners to verify compliance with quality and safety standards. In the event of non-compliance, improvements are executed under Unilever’s supervision. In 2012, some units were prepared for certification under the international food safety standard (FSSC 22000), which will take place in 2013. This preparation included programmes to maintain current certifications, in addition to reviews of best manufacturing practices for each product category and internal audits carried out by the global team to identify and correct potential critical areas in the quality and safety of our food products. 167 unilever brazil Sustainability Report 2012 Product responsibility Warehousing and distribution At this stage we engage our employees and the partners responsible for handling and shipping our products, in addition to the customers who undertake part of the distribution. Products are packed in accordance with category and sanitary standards in Brazil and overseas; in the latter case global Unilever standards are applied. The temperature of these materials is controlled, and they are maintained free of pests. Pallets and cartons are stored in distribution centres (DCs) managed by Unilever or by third-parties, and which are subject to regular cleaning procedures. In 2012, we progressed in the development of a co-storage project, with tests to store personal care and domestic cleaning products together with food products without compromising safety or quality. This enabled greater flexibility in product storage at distribution centres without jeopardising product quality. In the distribution phase, special attention is also given to hygiene in heavy goods vehicles and ensuring the separation of cargos during transportation in order not to compromise product quality. We have specific standards for the receipt and stocking of materials in logistics centres in which we engage our suppliers and customers. Since 2011, we have used a palletization criteria protocol that defines the maximum pallet height and maximum weight and dimension for shipping cartons, among other factors. We carry out annual audits at all our distribution centres. These are projected to identify non-conformance and improvement opportunities. The company employs a system of Quality Notifications, which are sent to Unilever management when non-compliant products are received. These documents are analysed on a monthly basis in forums that involve diverse company areas. For 2013, the challenge will be to implant the co-shipping policy (joint transportation of hygiene/ beauty and food products), reducing costs and CO2 emissions. GRI PR1, FP5 back to summary Unilever product responsibility practice encompasses every phase of the life cycle, with a focus on consumer safety and permanent quality in delivery. Sale and post-consumption The final stages of the product life cycle are commercialization at the point of sale and use and disposal by the consumer. Before reaching the consumer’s home, the products are stored and displayed on the shelves at points of sale. Our teams throughout Brazil are engaged in ensuring hygiene, quality and safety in these outlets, in partnership with our customers, for whom we provide training courses to ensure the correct handling of products and packs. In the course of the year, we also carry out five point of sale audits all over the country to evaluate the quality of Unilever products and brands on shelves in supermarkets, drugstores and other outlets. These are based on the global Consumer Relevant Quality Standards (CRQS) protocol. Quality assurance is particularly relevant in categories like ice cream, which requires storage in freezers that maintain the product’s texture and flavour. In 2012, the Quality area was engaged in a programme to ensure temperature control throughout the ice cream distribution chain; in the second half of the year we initiated a project 168 unilever brazil Sustainability Report 2012 Product responsibility with one of our major customers to monitor Kibon cabinets. In 2013, we plan to develop similar projects focused on AdeS beverages to guarantee quality throughout the chain and at the point of sale. At the post-consumption phase, we believe that strong consumer relations are fundamental in managing and reducing business impacts. It is for this reason that we receive criticisms, doubts, suggestions and complaints on a daily basis via our consumer service, the social networks and email. These data are compiled by category, analysed and passed on to the different areas of the company in monthly meetings, enabling improvements and innovations based on consumer perceptions and insights (read more in Consumers). We have developed a number of modifications in packaging based on contacts received from consumers. In 2012, we started to commercialise smaller tubes of Close Up dental cream. This change was introduced during 2011, after a number of contacts were received by the consumer service complaining about air bubbles in the pack. The change helped the company to reduce waste generation by more than 7%. In 2012, we also reduced the number of complaints associated with Meu Frango Assado by strengthening the seal and the plastic bubble in which the product is commercialized. Other questions presented to the consumer service were handled in conjunction with the Research and Development team with a view to verifying consumer complaints and reviewing processes to ensure consumer health and safety. As a result of complaints about ice cream damaged through melting in some regions, in 2012 an action plan to adjust and prevent the misuse of freezers was developed. The plan included internal actions in the cold distribution chain and measures by promoters working in stores with customers, such as training in the maintenance of ice cream cabinets and in the correct handling of the product. This resulted in a 12% decrease in complaints related to melting. In 2013, the project will be extended to include more customers and will involve increased internal training for employees in the ice cream business. GRI PR1, PR5, FP9, FP10, DMA SC Animal welfare back to summary Animal testing Unilever does not carry out tests on animals in Brazil. The company works with other businesses and research centres in Brazil to develop alternative testing methods which provide the information necessary for safe product and ingredient assessments without the use of live animals. On a global level the company restricts animal testing, except in the rare cases where this is required by law - normally when no safe alternative method (laboratory tests or computer modelling) is available. We work with international researchers and diverse groups to share our experience and promote innovative testing methods. In line with its policy of transparency, Unilever is committed to the total elimination of animal testing in its products. The company is equally committed to consumer health and safety, and to the safety of its workforce and the environment. 169 unilever brazil Sustainability Report 2012 Product responsibility back to summary As the second largest advertiser in Brazil, Unilever has a heightened sense of responsibility in product communication and in advertising for children 170 unilever brazil Sustainability Report 2012 Product responsibility back to summary Marketing and communication Clear message Investments in advertising and promotion reflect the size of our business and involve a critical question for the consumer goods industry In 2012, Unilever Brasil maintained its position as second largest advertiser in the country, with a 17.5% increase in advertising investment. According to Ibope, during the year the company spent R$ 3.05 billion on publicity and advertising in diverse channels, ranging from print to electronic and digital media, as well as point-of-sale merchandising. This robust promotional activity reflects the size of our business and also imposes a great responsibility: acting in line with our Sustainable Living Plan and our Materiality Matrix in Brazil, which address themes such as conscious consumption and promoting responsible communication, both strategic priorities for the company All new advertising and campaigns for our brands are assessed by different company areas, including the Legal and Nutrition areas, to ensure legal compliance and the coherence of the communication to be presented to the consumer. It is the responsibility of the brand leaders to evaluate the different opinions and authorise the release of commercials. GRI PR6, PR7, DMA PR Marketing communications We follow a series of guidelines and commitments to ensure our communications contribute to proper consumption habits and provide consumers with adequate information. Communication is also subject to the Unilever Code of Business Principles and to the company’s Food and Beverage Global Marketing Principles , which are reviewed periodically to ensure the conformance of our practices in this particular category. This document addresses questions such as the communication of the nutritional profile of products, the disclosure of data based only on sound science and the commitment to only advertise product aspects that are relevant to consumer diets. Globally, we are signatories to diverse advertising pacts and agreements (read more in Sector Practices). We strive to remain attuned to the demands and debates current in the Brazilian reality and to engage in relevant initiatives and commitments. We are active participants in Conar, the country’s advertising self-regulatory council. Some of our executives hold consulting positions in the organization, and we apply its standards in communicating our brands and products. The Corporate Affairs and Legal areas also monitor and contribute to debates in the legislative sphere, anticipating potential modifications in Brazilian marketing norms for the consumer goods industry. As a member of Conar, we accept and support the body’s decisions and recommendations regarding restrictions, adjustments and even the withdrawal of our advertising from circulation. In 2012, Unilever Brasil did not receive any significant fines related to marketing communications; we did, however, receive 14 representations through Conar during the year (compared with 11 in 2011) arising from campaigns conducted by brands such as Hellmann´s (mayonnaise and ketchup), Ades, Keratinology, Lux, Axe, TRESemmé, Close Up and Omo. Of these representations, four resulted in adjustments to our commercials, six cases were filed away with no need for adjustment after Unilever defended them, and none were removed from the air. At the end of the year one case was still undergoing appeal at the council, and four were awaiting judgement. One of 171 unilever brazil Sustainability Report 2012 the major repercussions involved a Hellmann´s campaign on the nutritional benefits of mayonnaise, in which the commercial compared the product’s properties with those of olive oil. Based on the Conar decision, the company opted to alter its advertisements. The Conar representations originate from consumers or competitors in the consumer goods industry who might question the claims or veracity of our communications. Unilever Brasil also makes representations against other companies when it identifies non-conformances; in 2012, we questioned seven advertisements from three companies. In addition to Conar, sometimes our communications are questioned by other organisations that monitor advertising. In 2012, for example, the Instituto Alana questioned the insertion of Lifebuoy in the soap opera “Carrossel”, shown on the TV channel SBT. In this case, we arranged a meeting with representatives of the organisation to clarify Lifebuoy’s social mission (see more on page xx). In line with our Global Food and Beverage Marketing Principles, we do not produce advertising aimed at children under 6 years of age and, since 2008, we have reduced activities directed at children and adolescents throughout our portfolio. Food category communication is limited to the 6 to 12 year age group and to products that are aligned with our Nutrition Enhancement Programme (NEP), with reduced fat, sugar and sodium content. Since 2009, we have been signatories to the Compromisso Público de Publicidade Responsável (Public Commitment to Responsible Advertising), which promotes responsibility and ethical conduct in communication for children by consumers goods companies. One of the main products in this respect is the antibacterial soap Lifebuoy. With commercials on the cable channel Discovery Kids, on the website www.discoverykidsbrasil.com/lifebuoy and campaigns in television programmes such as the SBT soap opera “Carrossel”, the brand transmits messages on the importance of handwashing to children and their families, in support Advertising for children of its social mission (read more on page xx). As such, we believe that Lifebuoy advertising is aligned with the Unilever SustainIn our advertising for children, the principle we apply is that able Living Plan and our children’s advertising commitments. of producing commercials that promote improved quality of life, The brand also supports the children’s musical producbe it in eating and hygiene habits or behaviour. We do not down- tion Galinha Pintadinha, which has played in a number of state play the question of price, we do not encourage children to pes- capitals. In an interactive, playful way, and with the song “Lava ter their parents to buy our products, and we strive to clarify the a mão” (Wash your hand) which promotes handwashing, the role of parents and other adults in providing guidance on the proposition is to promote basic hygiene habits that prevent disnutritional profile of our products. eases and infections. GRI SO5 back to summary Product responsibility Commitments in advertising for children In its advertising for children, Unilever Brasil is committed to not: »» »» »» »» »» »» conveying misleading messages; undermining parental influence; encouraging pester power; suggesting time or price pressure; encouraging unhealthy dietary habits; blurring the boundary between promotion and content. 172 unilever brazil Sustainability Report 2012 Product responsibility back to summary Legislation and labelling Information for consumers We are in compliance with Brazilian regulations on product communication, with internal policies that go beyond legal requirements In addition to offering products manufactured according to rigorous quality and safety standards, Unilever Brasil is committed to providing consumers with accurate information. Our labelling practices are in compliance with Brazilian legislation and provide information on ingredients –for food, personal and home care products-, handling, disposal, environmental impacts associated with use and disposal and outsourcing of manufacture. In our operations, we also apply material use and control policies which are normally more rigorous than those required by law. These policies are regularly reviewed and updated by specialists, based on scientific research and regulations. In 2012, Unilever Brasil had no significant cases of non-conformance with regulations and voluntary codes related to product and service information and labelling. GRI PR3, PR4, FP8, DMA PR Product and service labelling Regarding food products, the company details ingredients in accordance with nutritional standards and resolutions, as well as the legislation in force and the sector agreements in which we participate. The nutrients in Unilever’s products are developed in line with guidelines such as the Nutrition Enhancement Programme (NEP). The assessment carried out under the NEP is extended to all products, with the application of criteria such as limits to the quantity of the nutrients potentially harmful to health that may cause chronic diseases and obesity, with a specific focus on saturated and trans fats, sodium and sugar (read more in Improving Health and Well-Being). Furthermore, based on the nutrition targets in the Unilever Sustainable Living Plan, the company is reducing the salt, sugar and saturated fats in its products, eliminating trans fats, and in- creasing quantities of essential fats, such as omega 3 and 6. We also follow the external guidelines for sodium reduction defined in the agreement between Abia (the Brazilian food industry association) and the Ministry of Health. 173 Product responsibility unilever brazil Sustainability Report 2012 Resolutions and technical norms adopted by Unilever Brasil Theme Standard Outsourcing of product or service components Decree.º 7.212/2010 Content, particularly related to substances that may generate environmental or social impacts Reforestation sticks Resolution nº 180, October 3 2006 Safe product or service use Resolution nº 03, January 18 2012 Resolution nº 16, April 12 2011 Resolution nº 55, November 10 2009 Resolution nº 40, June 05 2008 Resolution nº 211, July 01 2005 Resolution nº 360, December 20 2003 Resolution nº 259, September 20 2002 Law n 10.674, May 16 2003 Decree n.° 4680/pr, April 24 2003 Product disposal and environmental/social impacts “My Choice” Seal Resolution nº 180, October 3 2006 Resolution nº 163, September 11 2001 Others Technical Ruling nº 5, December 21 2010 Technical Ruling nº 4, December 21 2010 Technical Ruling nº 1, May 28 2004 (modified on May 20 2005) Technical Ruling nº 5, September 28 2001 GRI PR3 back to summary In addition to technical protocols and legal standards, we have our own directives for enhancing the nutritional profile of company products. 174 unilever brazil Sustainability Report 2012 reporting process back to summary Materiality Assurance statement GRI Index 175 unilever brazil Sustainability Report 2012 reporting process back to summary New cycle of communication In its tenth report, Unilever Brasil presents information on the company’s performance and its main social and environmental commitments Continuing the cycle of communicating Unilever Brasil’s social and environmental performance, the company is publishing its tenth Sustainability Report, covering the period from January 1st to December 31st 2012. Once again we have based the document on Global Reporting Initiative (GRI) guidelines, a methodology first adopted in 2006. An advance in 2012 was the adoption of version G3.1, which adds new indicators and information in areas such as diversity and labour relations. Under the coordination of the Sustainability Committee since 2010, the process constitutes an important management tool for the company. Again the report achieved GRI checked application level A+. In this report, we collect and make public information on Unilever Brasil’s social and environmental performance throughout its Brazilian operations, encompassing plants, offices and distribution centres. Data and indicator collection is done by the management team, with the participation of leaders from the Sustainability and Safety, Health and Environment (SHE) areas. These are anal- GRI 2.9; 3.1; 3.2; 3.3; 3.5; 3.6; 3.7; 3.8; 3.10; 3.11 ysed by representatives of all company areas, including Procurement, Research and Development, Legal, Marketing, Finance, Nutrition and Human Resources. To determine the contents of the report, once again we crossreferenced the themes featured in the three pillars of Unilever’s global Sustainable Living Plan (Improving Health and Well-Being, Reducing Environmental Impact, Enhancing Livelihoods) with the most relevant themes for management and communication from the perspective of our strategic stakeholders, as determined in the Materiality process (read more in Materiality). The scope of the quantitative and qualitative information did not undergo significant alterations, except for the unification of the activities of our JK1 and JK2 offices in the São Paulo district of Itaim Bibi, resulting in the closure of the latter in November, which affected our operating structure. Some ice cream and powdered detergent production lines were transferred between plants in the Southeast and Northeast of the country. For some indicators, we broadened the scope of the information provided in function of the GRI G3.1 guidelines - for example, in the indicators related to diversity and remuneration. The company has learned a great deal in the course of the last reporting processes, which is also reflected in the way we manage sustainability. The challenges and difficulties involved in reporting some data and indicators led to internal projects to improve management. For example, we implanted an impact management tool prior to, during and after the installation of a new Unilever Brasil facility, the result of one of the socio-environmental projects undertaken by our trainees. In 2012, we started to use the methodology in the construction of a new distribution centre in Pouso Alegre (Minas Gerais) (read more in Communities). We also progressed in communicating some of our critical themes, such as relations with surrounding communities and the impacts caused by our operations on Brazilian biodiversity – these are now being mapped and analysed, with the results and targets published in this report. We maintained our response to the indicators in the Food Sector Supplement, which concerns 176 unilever brazil Sustainability Report 2012 reporting process one of our core businesses, and we also sought improvements in reporting and managing indicators on human rights. With respect to data collection, 2012 was the first year in which we managed to implant a system for the prior collection of indicators, with a view to tracking the data and analysing long-term trends in certain areas. With support from a consultancy and under the coordination of the Safety, Health and Environment (SHE) area, we periodically assess our performance in GRI methodology, which is now integrated into our environmental management system – and used in our internal Environmental Performance Reporting (EPR) tool. The EPR is used for monthly monitoring and support for the operations in areas such as energy and water consumption, emissions and waste and effluent generation. The methods are specified in the indicators and seek to maintain historical series of at least three years. The absolute amounts are not disclosed because we consider this information to be strategic. However, we do disclose many numbers related to product production volume (in the case of the plants) and commercialisation (for non-manufacturing). This relative measurement unit is used in diverse calculations throughout the report (x/tonnes produced), in order to maintain comparability of results and impacts. At the beginning of the reporting process, we once again held meetings and workshops with the management teams in diverse areas to provide guidance on how to respond to the indicators, ways of obtaining evidence and complementary information. As in the previous year, the process was submitted to external verification, achieving application level A+ in accordance with GRI guidelines, with the application level checked by the Global Reporting Initiative. The assurance statement was elaborated by BSD Consulting, which verified the information reported and offered support in the identification of improvements for coming cycles. Our Sustainability Report is an important management tool; moreover, it is the main vehicle for demonstrating accountability to our diverse stakeholders – including, but not limited to, suppliers, customers, employees, members of the Sustainability Committee, consumers, governments, institutions, communities and NGOs. The team responsible for the report welcomes the participation of readers, who are invited to submit their suggestions, doubts, criticisms and opin- GRI 3.4; 3.5; 3.7; 3.9 back to summary ions about our sustainability reporting process via the email sustentabilidade@unilever.com. Two versions of this report will be published: a PDF file with the complete content and a summarized version in digital format, both available for download from the Unilever Brasil site. In the latter, we have addressed only the themes set forth in the Materiality Matrix with a view to presenting our stakeholders with a summary of the major initiatives, strategies and challenges concerning the most relevant questions for the business. 177 unilever brazil Sustainability Report 2012 reporting process back to summary Materiality Managing priorities In addition to mapping critical themes, in 2012 we initiated a project to consult stakeholders associated with our plants We consider the development of the Materiality Matrix to be a key tool through which Unilever Brasil may monitor and enhance business and relationship practices in alignment with the company’s Sustainable Living Plan and the expectations of its stakeholders. More than just an instrument for prioritizing the themes to be reported, we believe that the materiality processes we have conducted with varying levels of complexity since 2008 have been essential in the implementation of our sustainability strategies and actions. The most recent matrix was developed in 2011. In it, the main challenge was to map the situation in Brazil and align it with the guidelines of the Sustainable Living Plan in a manner that would enable us to develop our own approaches for the operations in the country. The integration of relevant themes from the perspective of our strategic stakeholders, aspects of the Brazilian reality and the challenges and commitments assumed globally involved a GRI 3.5; 4.14; 4.15; 4.17 Priority Themes for Unilever Brasil process of dialogue comprising face-to-face meetings and consultations by telephone with more than 40 people – including suppliers, consumers, specialists, customers and representatives of NGOs –, in addition to internal consultations with more than 20 leaders from diverse company areas, such as Human Resources, Sales, Marketing, Legal and the Sustainability Committee. Over time, with the mapping exercise and analysis of questionnaires and the subjects each group considered most relevant, we identified eight priority themes for managing sustainability at Unilever Brasil. As a reflex of our experience and learnings in the course of the last reporting cycles, some themes have been repeated since our first materiality matrix, such as controlling waste, the environmental impacts from production processes and the reduction of impacts in the post-consumption phase. Others, such as managing suppliers based on sustainability criteria and education for conscious consumption, emerged in the 2011 matrix, an indication of new needs and challenges in 1. Education for conscious consumption and new consumption habits 2. Inclusion of socio-environmental criteria in decision-making processes and business routines 3. Development of sustainability criteria for the selection, evaluation and management of suppliers and multi-sector partners, when applicable 4. Development of practices to minimize environmental impact during the use and post-consumption phases of product life cycles, including solid waste management, as set forth in Brazil’s solid waste legislation 5. Reduction of greenhouse gas emissions (GGE) throughout the business chain 6. Management of production process environmental impacts and analysis of impacts throughout the product life cycle 7. Raising employee awareness and engagement in sustainability 8. Transparent communication, responsible marketing and advertising practices going beyond legal requirements, especially for children 178 unilever brazil Sustainability Report 2012 reporting process relation to which the company will need to adopt a position. The eight themes (see box) are closely related to the pillars of the Sustainable Living Plan, enabling the adoption of unified strategies recognised in our matrix. The work involved in consolidating these themes and aligning them with global directives was coordinated by the Sustainability Committee. We think that addressing and dealing with the relevant questions we have identified during the course of the construction of the Materiality Matrix is a long-term process. Consequently, in 2012, we opted to extend the materiality process by mapping the stakeholders associated with our manufacturing operations in Brazil. With a view to enhancing management of critical themes and adapting it to the needs and contexts of each of the plants in Brazil, we initiated a pilot project that included the mapping of secondary sources – such as the press, public authorities and reference documents from inside and outside Unilever–, online questionnaires and telephone consultations with leaders at the Igarassu (Pernambuco), Pouso Alegre (Minas Gerais), Valinhos (São Paulo) and Vinhedo (Saõ Paulo) plants. The objective of the process was to help us understand relations with the communities around our plants, which stakeholders relate (or should relate) to Unilever Brasil on a more permanent basis and what the main advances and challenges are in this dialogue in each of the locations or operations in question. We also analysed the way in which the Unilever Sustainable Living Plan had been disseminated among employees in each of these operations. During this pilot phase, we contacted the HR and SHE managers at each of the four plants, obtaining impor- tant inputs upon which to base future dialogue and measures to engage strategic stakeholders. Going beyond those stakeholders to whom we relate on a more systematic basis, such as customers, suppliers, employees and consumers, we believe that the company can forge closer ties, principally with the communities in which our operations are located. Our management perspective is to use the dialogue established in the course of the materiality processes and consultations with stakeholders in our operations as engagement and communication tools to effectively integrate sustainability into our practices throughout the value chain. In 2013, we will review the material themes internally, without consulting external stakeholders, as stated in our 2011 report. The objective for the next cycle is to conclude the exercise initiated in 2012 of mapping stakeholders associated with our plants. This will enable us to build a more broad-based and representative consultation process, ensuring that our next materiality matrix gains greater consistency. GRI 4.16; 4.17 back to summary To enhance management we use the dialogue established in the course of the materiality processes and consultations with stakeholders in our operations as engagement and communication tools. 179 unilever brazil Sustainability Report 2012 REPORTING PROCESS back to summary Assurance Statement ment of the report and the verification of the GRI application level »» Visit to the Vinhedo unit in the state of São Paulo to evaluate was the objective of the work done by BSD. the unit’s management and control over indicators; »» Interviews with executives, managers and employees in key areas with respect to the relevance and context of the inforScope and Boundaries mation for the report and for management; The scope includes the information in the complete version of the Unilever Brasil 2012 Sustainability Report for the »» Whenever relevant, confirmation of sustainability performance information with the senior management of the company; and reporting period. The independent report verification was carried out according to AA1000 Assurance Standard 2008, »» Based on sampling, confirmation of information contained in the Sustainability Report through supporting documentation, type 1, which provides reasonable assurance. The process internal management reports and official correspondence. Independence includes assessing the organization’s compliance with the We work independently and guarantee that no BSD staff main- three AA1000AS principles: Completeness, Materiality and tain consulting contracts or other commercial ties with Unilever Responsiveness. Brasil. BSD Consulting is an AccountAbility AA1000 Licensed AsKey Conclusions – AA1000AS Principles surance Provider, registered under the number 000-33. Methodology The approach employed to verifying the AA1000 process In the opinion of BSD Consulting, in 2012 Unilever Brasil Our Competency consisted of: evolved in the management of sustainability, adopting a transBSD Consulting is a company specialized in sustainability. versal approach to the theme in the different company areas. The The work was carried out by a team of experienced profession- »» Evaluation of the content of the 2012 Sustainability Report; importance of maintaining and stepping up the effort to consolials trained in external verification processes. »» Understanding of the process of generating information for date the theme of sustianability throughout its management prothe Sustainability Report, taking into account the engagecesses should be emphasized. Engagement is being enhanced Unilever Brasil and BSD Responsibilities ment process and the definition of materiality; by mapping the stakeholders related to the operational units. The drafting of the Sustainability Report and the definition of »» Research of publicly available information on the sector and its content are the responsibility of Unilever Brasil. The assessthe company (press, websites and legal frameworks); BSD Consulting carried out an independent verification of the process of drafting the Unilever Brasil 2012 Sustainability Report in accordance with GRI G3.1 (Global Reporting Initiative) guidelines. This is the third year running that this verification process has been conducted with the purpose of providing Unilever Brasil stakeholders with an independent opinion on: the quality of the report; stakeholder engagement processes; adherence to AA1000AS 2008 principles; and management of sustainability within the company. 180 unilever brazil Sustainability Report 2012 REPORTING PROCESS Key Conclusions on Adherence to AA1000AS 2008 Principles 2. Materiality (or Relevance) – themes necessary for stakeholders to draw conclusions about the organization’s economic, social and environmental performance. The process of assessing material themes progressed in 2012 with the mapping of stakeholders at the operational units. Continuity of this process should encompass a new assessment of relevant themes among priority Unilever stakeholders, taking into account: the context of sustainability (positive and negative events), significant organizational changes, past and future impacts, conflicts and dilemmas among stakeholder groups or operational units. Unilever adopts consistent positioning on the critical themes and dilemmas of the sector. An example is the establishment of clear targets for the reduction of sodium in its products together with the measures planned to reach these targets. Also worthy of note are the company’s actions related to the sustainable sourcing of agricultural raw materials and the development of more sustainable products. The sustainability report mentions some social and environmental risks, such as human rights risks in the value chain and climate change-related risks. The presentation of a structured risk management process integrated with sustainability management would represent an evolution in the process. 1. Completeness – addresses stakeholder participation in the development of a transparent and strategic sustainability management process. In 2012, the engagement process was focused on mapping stakeholders of the company’s operating units, representing an evolution in the prioritization of stakeholders. Unilever maintains strategic alliances with large retail trade partners. It is important that the company evaluate its approach to engagement with a view to identifying possibilities of broadening relations with small retailers and suppliers, encouraging the adoption of sustainable management practices throughout its business chain. Internally, it is necessary to maintain and intensify initiatives to engage the internal audience to ensure strategic alignment. The next Sustainability Report could demonstrate how stakeholder engagement contributes to managing sustainability at Unilever, presenting concrete actions taken in relevant areas and the results achieved. back to summary 3. Responsiveness – addresses the measures taken by the organization in response to specific stakeholder demands. As in the previous report, the 2012 Sustainability Report is aligned with the company’s Sustainability Plan and with stakeholder demands. There is adequate adherence to GRI G3.1 guidelines, encompassing the main material themes. The indicator data collection system was enhanced in 2012. The environmental indicator data gathering process using the company intranet enabled greater interaction between the corporate area and the operational units. There were improvements in the consolidation of social indicators with the direct involvement of the units; however, the establishment of a single formal process is important to guarantee standardization and the quality of the information collected. With the exception of the environmental, health and safety and labour information, the importance of systematizing the collection of GRI indicators in the course of the year must be underscored. This will lead to continuous monitoring and the integration of the different areas into the reporting process, resulting in an improvement in the quality of the information presented. The report presents clear targets for Unilever Brasil’s material themes. These include the target of sustainable sourcing of 100% of the company’s agricultural raw materials by 2015. The target is more audacious than Unilever’s global target of 2020. 181 unilever brazil Sustainability Report 2012 REPORTING PROCESS back to summary Unilever demonstrates commitment to continuous improvement in the management of sustainability by using the results from the assurance process, defining and implementing priority actions. Application Level GRI-G3.1 In accordance with guidance for GRI-G3.1 guidelines, BSD declares that Unilever Brazil’s 2012 Sustainability Report is classified at application level A+. The report presents information on the items related to the company profile and provides a description of sustainability management and approach processes. Information is provided on all categories, aspects and indicators: economic, environmental, human rights, labour practices, society and product responsibility, in addition to Food Processing Sector Supplement indicators. São Paulo, March 18th 2013. BSD Consulting (Brasil) 182 unilever brazil Sustainability Report 2012 REPORTING PROCESS back to summary 183 unilever brazil Sustainability Report 2012 back to summary reporting process GRI Index Check the location and level of response for the GRI indicators presented in this report General G3.1 indicators 1.1. Message from the president 1.2. I mpacts, risks and opportunities Direct Response Page Response level Some information on economic trends is considered strategic and is therefore not published. There are more details about Unilever’s sustainability strategy and performance at http://www.unilever.com.br/ sustentabilidade/ 3 Complete 3; 4; 5; 15 Partial Global Pact Page Response level 2.9. Changes in reporting year 171 Complete 2.10. Awards and certifications 12; 13 Complete 3.1. Reporting period 171 Complete 3.2. Previous report 171 Complete 3.3. Reporting cycles 171 Complete 3.4. Contact details 172 Complete 3.5. Definition of content 171 to 173 Complete 3.6. Boundary of report 171 Complete General G3.1 indicators Direct Response 2.1. Name of organization 4;19 Complete 2.2. B rands, products and/or services 4; 7; 19 Complete 2.3. Operational structure 4; 9 Complete 2.4. L ocation of organization’s headquarters 4 Complete 3.7. Scope of report 171; 172 Complete 2.5. Countries in which organization operates 4 Complete 3.8. Basis for elaboration of report 171 Complete 3.9. Data measurement techniques and bases of calculations 172 Complete 3.10. Restatement of information 171 Complete 3.11. Significant changes 171 Complete 2.6. Nature of ownership and legal form 21 Complete 2.7. Markets served 4 Complete 4 to 6; 9; 10 Complete 2.8. Scale of organisation Data about finances, beneficiaries, shareholders and costs are considered strategic and are therefore confidential. Global Pact 184 unilever brazil Sustainability Report 2012 Page Response level 3.12. GRI summary 179 Complete 3.13. External assurance 175 Complete 4.1. Governance 21; 22 Complete General G3.1 indicators Direct Response back to summary reporting process Global Pact Page Response level 4.14. List of stakeholders 32; 33; 173 Complete 4.15. Identification of stakeholders. 32; 148; 173 Complete Complete General G3.1 indicators Direct Response 4.2. I dentification of whether president of the highest governance body is also an executive 21 Complete 4.16. Stakeholder engagement. 19; 32; 148; 149; 174 4.3. Independent members 21 Complete 4.17. Stakeholder demands. 32; 173; 174 Complete 4.4. C ommunication channels with board 24 Complete Management approach – Economic performance (EC) Economic performance 6 Complete Market presence 5 Complete Indirect economic impacts 4 Partial 6 Complete EC2. Climate change 83 Complete EC3. Pension plan 153 Complete 4.5. R emuneration for sustainability 21; 22 Complete 4.6. Conflicts of interest 23 Complete 4.7. Qualifications of members 21; 22 Partial 4.8. I nternal values, codes and principles 5; 25 to 27; 29 Complete 4.9. Board activities 21; 22 Complete 4.10. Board self-assessment 22 Complete 4.11. Precautionary principle 161 Complete 4.12. C harters, principles and initiatives 29; 30 Complete 4.13. M embership of associations 50; 51 EC1. Direct economic value EC4. Subsidies Complete As a private company in Brazil, Unilever Brasil does not disclose detailed information on its economic performance in the country. This is confidential information for which the global operation is responsible and is considered strategic. Since incentives and tax policy constitute a competitive differential, this data is considered strategic and therefore confidential. Global Pact Complete 185 unilever brazil Sustainability Report 2012 back to summary reporting process Page Response level Global Pact EC5. R atio internal/local minimum salary 155 Complete 1 EC6. Spending on local suppliers 120; 124 Complete EC7. Local hiring 144 Complete General G3.1 indicators EC8. Infrastructure investments EC9. Indirect economic impacts Direct Response In 2013, there will be a pilot project at two plants to identify potential community engagement measures. A cross-functional working group was formed to conduct the projects. In 2012 there was no formal process to undertake infrastructure investments based on specific local demands. 40 to 44 In 2103, there will be a pilot project at two plants to identify potential community engagement 4; 29; 80 measures. These actions may help to identify indirect local economic impacts. Complete Partial 6 Page Response level Transportation 83 Complete General 72 Complete 78; 79 Complete 8 EN2. Recycled materials 77 to 79 Complete 8; 9 EN3. Direct energy consumption 117 to 121 Complete 8 EN4. Indirect energy consumption 118; 120; 121 Complete 8; 9 EN5. Energy saved 122 Complete 8 General G3.1 indicators EN1. Materials used EN6. Eco-efficient products and services Management approach – Environmental performance (EN) Materials 77 Complete Energy 112; 116; 117 Complete Water Direct Response The volume of direct inputs in the end product is considered to be confidential information and is not reported. Unilever focuses on energy reduction during the production and post-consumption phases. In 2012, there were no initiatives to manufacture products with reductions in energy requirements. Global Pact Complete EN7. Reduction in energy consumption 122 Complete 88; 90; 91 Complete EN8. Water withdrawal by source 90 a 92 Complete 8; 9 Biodiversity 99; 105 Complete EN9. Water sources affected 93 e 94 Complete 8 Emissions, effluents and waste 73; 74; 82; 85; 95; 110; Complete EN10. Water recycled and reused 93 Complete 8 EN11. Protected areas 103 a 105 Complete 8 Products and services 70; 80 Complete Compliance 27; 66 Complete EN12. Impacts on biodiversity 102 to 105; 108 Complete 8 186 unilever brazil Sustainability Report 2012 General G3.1 indicators back to summary reporting process Direct Response Page Response level Global Pact EN13. H abitats protected or restored 103 to 107 Complete EN14. M anaging impacts on biodiversity 102; 110 to 113 EN15. IUCN Red list 103 to 105 Complete EN16. D irect greenhouse gas emissions 85 a 87 Complete 8 EN17. I ndirect greenhouse gas emissions 85; 87 Complete EN18. G reenhouse gas emission reduction 83; 84 EN19. Ozone layer General G3.1 indicators Direct Response EN26. Mitigation of product/ service impacts Complete Page Response level Global Pact 70 e 71; 80; 83; Complete 84; 91; 92 7; 8; 9 48; 80 Complete 8; 9 Complete 8 EN27. Products and packaging reclaimed Regarding waste management, Unilever is engaged in discussions on a sector agreement in line with national legislation. In the 2013 report we will publish further information on sectors dialogues. 8 EN28. Environmental noncompliance No fines for non-compliance with environmental laws or regulations were recorded. Complete 7; 8; 9 EN29. Transportation impacts 83; 84 Complete 8 115 Complete 8 EN20. N Ox, SOx and other emissions 72 Complete 7; 8; 9 115; 116 Complete 8 EN30. Investments and spending on environmental protection EN21. Water discharge 99; 100 Complete 8 EN22. Total weight of waste 75; 76 Complete 8 Employment 133 Complete Relationship between workers and governance 24 Complete Occupational Health and Safety 148 Complete Training and Education 150 Complete EN23. Significant spills There were no significant spills. We consider a spill to be significant when it causes significant persistent or isolated alterations in the quality of a water body. Complete 8 Management approach – Labour practices (LA) EN24. H azardous waste transported 76 Complete Diversity and equality of opportunity 159 Complete EN25. W ater bodies and habitats affected 100; 101 Complete Equality of remuneration between men and women 160 Complete 187 unilever brazil Sustainability Report 2012 back to summary reporting process Page Response level LA1. Work force profile 135; 136 Complete LA2. Employee turnover rate 137; 139 Complete LA3. Benefits 157 Complete LA4. Collective bargaining 164 Complete LA5. Minimum notice period regarding operational changes. 164 Complete LA6. H ealth and safety committees. 164 Complete LA7. O ccupational diseases, days lost and fatalities. 141 to 146 Complete 1 LA8. S erious disease prevention programmes 138; 148 1 General G3.1 indicators Direct Response LA9. H ealth and safety agreements with unions LA10. A verage hours of training per year 164 The number of hours of training was not broken down by gender. This information will be provided in the next report. LA11. Ongoing learning Complete Complete 150 Complete 150; 157 Complete LA12. Career development All employees receive performance and career development appraisals on a regular basis. 150; 151 Complete LA13. Diversity Unilever is currently adjusting reporting of this indicator. The breakdown by gender of board members, disabled employees and age groups will be provided in the next report. 159; 160 Complete Global Pact 6 1; 2; 3 Page Response level Global Pact 161 Complete 1; 2; 3 150 Complete Investment practices and procurement processes 125; 129 Complete Non-discrimination 130 Complete Freedom of association 164 Partial Child labour 129 Partial Forced or slave labour 129 Partial Security practices 193 Complete Assessment 193 Complete Remediation 193 Complete HR1. Human rights clauses in investment contracts 129 Complete HR2. Suppliers screened for human rights 129; 130 Complete HR3. Training in human rights 25; 27 Complete HR4. Cases of discrimination 25; 27 Complete General G3.1 indicators Direct Response LA14. Ratio of men’s to |women’s salaries LA15. Return to work and retention rates after maternity/paternity leave, by gender. Unilever reported this indicator for the first time. Since this involves leaves occurring in 2012 and we do not have a historical data base, the number of female employees retained for 12 months after returning from leave is not reported. Management approach – Human rights (HR) 1; 2; 3 1 6 1; 3 1; 2; 3; 4 1; 2; 3 188 unilever brazil Sustainability Report 2012 General G3.1 indicators back to summary reporting process Direct Response Page Response level Global Pact HR5. Freedom of association In its next report Unilever will provide more accurate mapping of the most critical suppliers regarding freedom of association and collective bargaining. HR6. Child labour In its next report Unilever will provide more accurate mapping of the most critical suppliers regarding child labour. 129 Partial 1; 2; 3 HR7. Forced or slave labour In its next report Unilever will provide more accurate mapping of the most critical suppliers regarding forced or slave labour. 129 Partial 1; 2; 3 HR8. H uman rights training for security personnel HR9. I nfringement of indigenous people’s rights 164 Partial Security of Unilever property is conducted by two third-party companies, which provide their employees with human rights training. In 2012, 100% of the security guards underwent a six-hour training course addressing questions such as: human rights and human relations in the workplace, respect for human rights, dealing with the public and priority treatment for the disabled. Complete Unilever does not have operations in regions inhabited by indigenous peoples. Not Material 1; 2; 3 General G3.1 indicators Direct Response Page Response level HR10. Percentage and total number of operations analysed with respect to human rights-related risks and/or the impacts of such risks. Unilever has in place preventive measures related to human rights, such as training on its Code of Business Principles, channels for reporting breaches and the framework for managing these questions. There is no specific formal assessment related to human rights in the operations, although the preventive measures do support such assessments. Complete HR11. Number of grievances related to human rights filed, addressed, and resolved through formal grievance mechanisms. We received a total of 72 grievances, all of which were addressed. None were proven and were therefore filed away. Complete Global Pact Management approach – Society (SO) Local communities 40 Complete Access to healthy foods 57 Complete Corruption 23 Complete Public policy 47 Complete Anticompetitive practices 27 Complete Compliance 27 Complete 189 unilever brazil Sustainability Report 2012 General G3.1 indicators SO1. Management of impacts back to summary reporting process Direct Response Page Response level Unilever local community engagement programmes do not entail public consultation (community) committees that include vulnerable groups or health committees with 40; 41 external representation. The programmes are described in the report, as are the units in which they are in place. Global Pact 10 General G3.1 indicators SO10. Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities. Direct Response Page Response level In 2013, there will be a pilot project at two plants to identify potential community engagement measures. A cross-functional working group was formed to conduct the projects. 42 e 43 Partial Management approach – Product responsibility (PR) SO2. A nalysis of corruption related risks 24 Complete 10 Customer health and safety 166 SO3. Anticorruption training 23 Complete 10 Product and service labelling 173 SO4. Cases of corruption 24 Complete 10 Communication and marketing 171 SO5. Public policy and lobbying 47 to 49; 172 Complete 10 Compliance 27 PR1. Assessment of impacts 167 to 169 Complete SO6. C ontributions to political parties Unilever does not support political parties or organizations, neither does it conduct political campaigns for employees, in accordance with the company’s code of principles. Complete SO7. Anticompetitive practices There is no record of significant judicial cases pending or ended in 2012 related to anticompetitive or monopolistic practices. Complete SO8. N on-compliance with laws and regulations (taxes, labour charges, frauds) There were no significant cases resulting in fines or penalties in 2012. In 2013, there will be a pilot project at two plants SO9. O perations with significant to identify potential community engagement potential or actual negative measures. A cross-functional working group impacts on local communities. was formed to conduct the projects. Complete 42; 43 Global Pact Partial In 2012, there were no significant cases PR2. Non-compliance – product of non-compliance with regulations and health and safety voluntary codes related to product and service impacts on health and safety. Complete PR3. Product labels 173; 174 Complete PR4. Non-compliance - labelling 173 Complete PR5. Customer satisfaction 34; 35; 38; 169 Complete PR6. Adherence to standards – communication and marketing 171 Complete PR7. Non-compliance – communication and marketing 171 Complete 190 unilever brazil Sustainability Report 2012 General G3.1 indicators Direct Response Page PR8. Breach of privacy PR9. N on-compliance – product supply and use back to summary reporting process Response level Not Material There were no significant cases resulting in fines or penalties in 2012. Complete Management approach – Supply (SC) Protection of natural resources 126 Complete Minimization of toxicity 166 Complete Fair trade 125 Complete Fair compensation for work 125 Complete Traceability 126 Complete Genetically Modified Organisms (GMOs) 166 Complete Animal well-being 169 Complete Biofuels 80 Complete FP1. P ercentage of volume purchased from suppliers in accordance with organization’s outsourcing policy. 127 FP2. Percentage of volume bought in accordance with credible, internationally recognized responsible production standards 125; 126 Complete Complete Global Pact Page Response level FP3. Percentage of working time lost due to labour conflicts and/or strikes 164 Complete FP4. Nature, scope and effectiveness of any programmes and practices involving access to healthy lifestyles and foods 56 to 58 Complete FP5. Percentage of production volume manufactured in locations certified under the food safety management system 167; 168 Complete FP6. Percentage of sales volume of consumer products with reduced saturated and trans fat, sodium and added sugar. 57; 58 Complete FP7. Percentage of sales volume of consumer products with added nutritive ingredients. 57; 58 Complete FP8. Policies and practices on communication to consumers about ingredients and nutritional information beyond legal requirements 173 Complete General G3.1 indicators Direct Response Global Pact 191 unilever brazil Sustainability Report 2012 General G3.1 indicators FP9. P ercentage and total animals raised and/or processed by species and breed type FP10. P olicies and practices, by species and breed type, related to physical alterations and the use of anaesthetics FP11. P ercentage and total of animals raised and/or processed, by species and breed type, per housing type back to summary reporting process Direct Response Due to the characteristics of our food products, we do not acquire live animals or animals for slaughter, but rather sub-products - such as fish meal and powdered meat - used in soup and bouillon recipes. All our suppliers of these raw materials have declared that they have policies in place to regulate the transportation or slaughter of animals. Due to the characteristics of our food products, we do not acquire live animals or animals for slaughter, but rather sub-products - such as fish meal and powdered meat - used in soup and bouillon recipes. All our suppliers of these raw materials have declared that they have policies in place to regulate the transportation or slaughter of animals. Page 169 169 Response level Complete Complete Global Pact General G3.1 indicators Direct Response Page Response level FP12. Policies and practices on antibiotic, antiinflammatory, hormone, and/or growth promotion treatments, by species and breed type. Not Material FP13. Total number of cases of significant non-compliance with laws and regulations, and adherence with voluntary standards related to transportation, handling, and slaughter practices for live terrestrial and aquatic animals Not Material Global Pact Not Material 192 unilever brazil Sustainability Report 2012 back to summary credits credits SC – Sustainability Committee EB – Executivo Board (in alphabetical order) Sustainability Team Cristiane Lourenço Érica Ikuno Jorge Kostrisch Juliana Nunes SC Laís Rocha Lígia Camargo SC Content Alessandra Rondinelli SC Ana Aguilera Ana Cortez SC Ana Cortopassi Ana Paula Candido Ana Paula Duarte Anderson Hass Anderson Rocha Anderson Utembergue SC Andrea Salzano SC Betania Gattai Bruno Carramenha Carla Schuchmann Caroline Lima Carolina Reis Cecília Dias SC Claudia Cavalcante Claudio Weschler Crisley Oliveira Cristiana Amaral Daianne Galvão Daniela Bombonatti Eduardo Reis EB Elaine Molina Elizabeth Vargas SC Fabiola Carvalho Fernanda Marques Fernando Bigliazzi Fernando Fernandez EB Fernando Prado Fernando Rodrigueiro SC Gabriela Jacob Gilberto Soares Gisele Pavin Jeicy Caldas Jessica Custodio Joana Rudiger Jose Andreosi José Negrete SC/EB Juliana Barrichello Juliana Marra SC Juliana Torres Júlio Campos SC/EB Karina Zimerfeld Katrin Wrede Leonice Ferreira Luciana Tudeia Ludmila Lopez Marcelo Montovaneli Maria Luisa Lopez SC Maria Luisa Orlando SC Mariana Angerame Marina Yoko Mauricio Pinto Meire Odloak Miguel Ortiz Milton Brandt Nelcina Tropardi SC Newman Debs EB Paula Lopes Paulo Souza Rafael Zanetti Raul Fernando Rodriguez Renata Coltro Sergio Castro Sueli Cagliari Thaís Moreira Thaisa Proni Thaíssa Proni Uwe Hagemann Vannessa Silva Vanessa Toro Vanessa Vilar Viviane Feitoza Zelia Martini GRI Consulting, editorial and content coordination Report Sustentabilidade Review Assertiva Produções Editoriais Diagramation and visual production Report Comunicação Assurance BSD Consulting Photography Acervo Unilever Na Lata UNPHOTO/Nicole Algranti (pg. 20) Typefaces FF Din, Albert-Jan Spiekermann, 1994. Pool and Erik Contact information sustentabilidade@unilever.com 193 194