2010 Sustainability Report | Unilever Brazil | Small Actions. Big Difference.
www.unileversustentabilidade.com.br
2010 Sustainability Report
Unilever Brazil
Small Actions. Big Difference.
Credits
Coordination and execution
Initiative
Sustainability Committee
Sustainability team
Juliana Nunes
Ligia Camargo
Cristiane Lourenço
Julio Erthal
Erica Ikuno
Communication Team
Cecilia Dias
Diogo Ganzella
Milena Haddad
Supply Chain and Safety, Health and
Environment team
Fernando Ferreira
Renan Rocha
Marina Yoko
Adriano Pimenta
Jéssica Custódio
Editorial and content coordination
Report Comunicação
Assurance
BSD Consulting
Translation
Raymond Maddock
Photography
Unilever Library
Marcelo Coelho
Paulo Lima – pages 2 and 19
StockbrokerXtra/LatinStock – page 10
PC Pereira – page 15
Print
AgraficaZ
Contacts
Telephone: 0800-707-9911
Post Office Box: 3007 – CEP: 06210-970 SP
E-mail: sac@atendimentounilever.com.br
Sustainability: sustentabilidade@unilever.com
Content
Editorial
2
Highlights
3
Message from the President
4
Profile
6
Responsible Practices
8
Sustainability Strategy
12
Improving Health and Well-Being
18
Reducing Environmental Impact
24
Enhancing Livelihoods
32
People
38
Assurance Statement
42
Reporting Process
46
GRI Summary
49
1
Editorial
Editorial
It is with pleasure that we present
our Sustainability Report, the
result of a joint effort between
our internal areas and important
partners. This is the fifth consecutive
report prepared in accordance
with Global Reporting Initiative
(GRI) guidelines. The purpose of
this document, which presents our
performance in 2010, is to share
with our diverse stakeholders the
company’s actions and strategies
to integrate sustainability into
the business, to account for our
activities and commitments and
to set forth the challenges and
opportunities facing us.
In this report we describe a number
of actions of relevance. In 2010, we
publicly announced our positioning
on sustainability in an event in
which Unilever’s global CEO Paul
Polman and different segments of
society participated. In the course of
the natural evolution of governance
within the company, in 2010
we established the Sustainability
Committee. This committee, which
is responsible for the report, is
charged with developing action
plans and targets to transform the
commitments set forth in our global
vision into concrete practice.
In November, we presented the
Unilever Sustainable Living Plan,
which was launched worldwide
during the year. The plan translates
the company’s strategic vision
into an action plan for integrating
sustainability into all our global
operations. We also launched
the campaign Cada gesto conta,
Small Actions, Big Difference,
which expresses our commitment
to inspiring people to take small,
everyday actions that can add up to
a big difference for the world.
Also for the first time our reporting
process was verified by a third party,
BSD Consulting. The assurance
statement accompanies the report.
More than certification, for us
the verification process is a tool
for improving our management
practice. These and other actions
are described in the report, which
focuses particularly on our strategies
and commitments.
Enjoy reading it!
2
For further information on the
Unilever Brazil sustainability
reporting process, contact: sac@
atendimentounilever.com.br or
sustentabilidade@unilever.com
GRI 3.4
Highlights
Event to present Unilever Brazil’s
positioning on sustainability, with
the participation of global CEO Paul
Polman and diverse sectors of society.
Launch of Cada gesto conta
(Small Actions, Big Difference)
campaign to promote dialogue
with consumers on sustainability.
Launch of For a
Cleaner Planet Plan,
with sustainabilityoriented innovation
in the company’s
powdered detergent
and fabric softener
brands, such as the
launch of OMO liquid
concentrate. Introduction of
the Lifebuoy social
mission in Brazil
and beginning
of important
partnerships to
encourage hand
washing and
improved hygiene.
Guia Exame de
Sustentabilidade
considers Unilever
Brazil one of the top
twenty companies
in environmental
and social practices in
the country.
Review of reporting
process and external
verification of 2010
Sustainability Report.
Beginning of
aerosol deodorant
recycling project
in partnership with
Pão de Açúcar.
Global launch
of Unilever
Sustainable
Living Plan.
Unilever elected
best Walmart
supplier in 2010
in Sustainability
category.
Recognition
of
company as a
“Partner in
Health” by the
Ministry of Health.
3
Message from the President
Message from the President
In an interview, Unilever Brazil
president Kees Kruythoff
describes our sustainability
strategy and its effects on the
country. He also talks about
the importance of changing
consumer habits and Unilever’s
responsibility in this process.
What were the high points for
Unilever Brazil in 2010?
Kees Kruythoff: In 2008, Unilever
Brazil was the pioneer in integrating
the concept of sustainability into
its strategic planning (UB2012
Plan). At the end of 2009, our head
office defined a new corporate
vision that positions sustainability
at the heart of the business– we
are going to double the size of the
company and at the same time
reduce our environmental impact.
And in 2010 it launched our Unilever
Sustainable Living Plan, setting forth
the guidelines to enable us to do
this. In 2010, we officialised our
Sustainability Committee, whose
mission is to transform the strategies
defined into concrete actions. We
also launched our communication
plan Small Actions, Big Difference,
which disseminates the concept of
sustainability, inspiring consumers to
take small, everyday actions that can
add up to a big difference.
How does Unilever Brazil influence
the company on a global level?
KK. Unilever Brazil is the company’s
second biggest operation
worldwide and has pioneered
4
many sustainability projects. The
combination of the company’s
size and growth potential in Brazil
makes the country a priority.
This is not only true for the
company. Politically, Brazil has
the opportunity to be a leader in
the global debate on sustainable
development and to make a critical
contribution.
How can Unilever help improve
the economy in Brazil and
living conditions for its people?
KK. We think it is possible to grow
and to do it with quality in Brazil,
but it is also our responsibility
to help build the country’s
sustainability agenda. Moreover,
we have a responsibility to help
develop consumer awareness.
We reach 2 billion people a day
worldwide and we are present in
100% of Brazilian homes. This
is why we promote campaigns
like Small Actions, Big Difference,
which conveys precisely the
message we want to people to get
– that every small gesture makes a
difference. A good example is the
campaign’s fanpage in Facebook,
which promotes discussion on
conscious consumption.
“Growth at any cost is not feasible. Our commitment to
sustainability is public and it is challenging, and we are
going to succeed only if we are able to inspire people
to take small, everyday actions that can add up to a big
difference. We are not talking about a new way of doing
business, this is the only way possible.”
Kees Kruythoff,
President of Unilever Brazil
And how to tackle the challenge
of changing consumers’ habits?
KK. When we talk about product
use the paradox is this: if we have
a new product that has the same
function and the same price but has
a differential in sustainability, people
will buy it. Comfort Concentrate
is an example. The consumers
understood that it was just as
good or even better than the one
they were used to and that the
price was good, but to use it they
would have to change their habits
a little. They decided that this
change was worthwhile and
adopted the product.
In 2010, Unilever launched its
Sustainable Living Plan globally.
What are the priorities for this
plan in Brazil?
KK. The Unilever Sustainable Living
Plan is based on three pillars:
Improving Health and Well-Being;
Reducing Environmental Impact;
and Enhancing Livelihoods. Each
pillar has clearly defined areas of
activity, and we have activities in
place in each of them, all described
in this report. In hygiene and
health, for example, we have the
Lifebuoy social mission, conducted
jointly with the Pastoral da Criança.
The environmental pillar is focused
on water, greenhouse gas emissions,
waste and sustainable sourcing. In
all these areas we aim to reduce the
impact we cause throughout the
product life cycle, with emphasis
on innovation - the case with the
OMO and Comfort concentrates,
whose environmental impact both in
production and use is much lower.
So, we have a series of actions and
initiatives that from now on will be
strategically aligned with the plan.
platform for engaging consumers
in this cause. I am very proud and
confident about the work we are
doing at Unilever.
GRI 1.1; 1.2
What are Unilever Brazil’s major
targets and challenges for 2011?
KK. Competitive growth is
fundamental, and growing our
market share is a clear target.
We will focus on accelerating
our growth but with a business
model that enables us to grow
while reducing our environmental
impact. Each Unilever Brazil
business area has one or more
sustainability-related activities
among its targets. This is how we
integrate the concepts and practice
of sustainability into our planning
and our daily activities. We will also
strengthen our corporate brand as a
5
Profile
Profile
Unilever is one of the biggest
companies in the world,
meeting consumer needs in 180
countries with food, personal
care and cleaning products. It
has been in Brazil for 82 years.
With more than 700 products and
26 brands highly valued by Brazilian
families, we reach 100% of the
households in the country in the course
of the year. Every month, 86% of
Brazilian households acquire at least
one Unilever product. GRI 2.2, 2.5, 2.7, 2.8
Brands commercialized in the country
Unilever in Brazil
and worldwide
4
major businesses
Domestic cleaning, Personal care, Foods and Ice cream
Global revenues of
Foods
€ 44.3 billion and profit of
€ 6.3 billion (26% up on 2009)
Revenues of
R$ 11.9 billion
in Brazil
Personal Care
and 200 products consumed per second
2 million units sold
every day in Brazil
167,000
More than
employees worldwide
Cleaning
12,064
6
employees in Brazil
Around 5,800 suppliers in
Brazil and 60 new products
launched in 2010
With the strength of our brand and
our products, we inspire people to take
small, everyday actions that can add up
to a big difference for the world.
Vision
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.
More than 90% of the production from Unilever’s Brazilian
plants is commercialized in the domestic market
Our brands are present in every state in Brazil through the
retail trade – supermarkets, drugstores, convenience stores –
and general wholesalers
Presence in Brazil
Plants:
GRI 2.3, 2.4, 2.7
São Paulo (Mogi Guaçu, Vinhedo,
Valinhos – unit that has
3 plants – and Indaiatuba)
GRI 4.8
Minas Gerais (Pouso Alegre)
Goiás (Goiânia)
Pernambuco (Ipojuca, Garanhuns,
Jaboatão and Igarassu)
Guia Exame
The 11th edition of the Guia Exame
de Sustentabilidade selected Unilever
Brazil as one of the top 20 companies in
environmental and social practices in Brazil.
The guide highlighted Unilever’s water,
electricity and fossil fuel consumption
monitoring programme and its
Sustainability Committee. The publication
also considered the change in the
formulation of Omo and the launch of the
Omo liquid concentrate to be important
contributions to sustainability. GRI 2.10
Offices 6 offices in São Paulo,
where our head office is,
and a Customer Innovation
and Research Centre (CIIC)
In 2010 we modified operations at two of our plants: the Mogi
Guaçu unit in São Paulo was deactivated and Maizena production
was transferred to Garanhuns in Pernambuco; the tomato
operation in Goiânia, Goiás, was sold to Cargill. For further
information see www.unileversustentabilidade.com.br
GRI 2.9
7
Responsible Practices
Responsible Practices
Establishing ethical relationships and
partnerships with our stakeholders
is fundamental for the success of
our business strategy. Through our
codes, policies and practices we
define responsibilities and develop
trusted relationships that benefit the
entire value chain.
Learn more about our business and
governance practices at: www.unileversustentabilidade.com.br
Corporate Governance
Unilever Brazil, a subsidiary of the
Anglo-Dutch Unilever group, is a
private company. Our Executive
Board has a president, Kees
Kruythoff, in the post since 2008,
and nine vice presidents. There are
no independent or non-executive
board members, neither is there an
external board in our governance
structure in Brazil.
GRI 2.1, 2.6, 4.1, 4.2, 4.3
As a global company, some aspects
of administration are defined and
managed regionally by Unilever
Americas, which reports directly
to head office, or by the Unilever
global structure. Major supply chain
negotiations are conducted by the
global team, and the company’s
plants, for example, are coordinated
by Unilever Americas. We comply
with all Brazilian legislation, policy
and guidelines and coordinate
relations with stakeholders locally.
Sustainability Committee
Code of Business Principles
Our Code of Business Principles provides guidance on
the company’s operational responsibilities, including
corporate governance. The code sets forth how the
company should operate, incorporating values such as
honesty, integrity, ethics, respect for human rights and
legal compliance. Compliance with the code is monitored
by senior management and by the Code of Business
Principles Committee, which in turn reports to a global
committee. GRI 4.6
See the Code in the Portal:wwwunileversustentabilidade.com.br
8
Unilever has always formed
committees to handle questions
related to the environment, health
and diversity, among others. In
2010, the Sustainability Committee
was set up as a natural evolution
in governance of this area within
the company. The Sustainability
Committee is cross-functional,
enabling involvement of all relevant
company areas to prioritize projects
and monitor actions for the
development of company strategy.
GRI 1.2, 4.1, 4.7, 4.9
Our Practices
Throughout the
Value Chain
“To carry out our Sustainability Plan, we count on support from
our customers, who are fundamental in engaging consumers.”
Julio Campos
Vice President of Sales
Find out more about our commitments
to assure the quality of our
communication in the Unilever
Sustainability Portal at: www.
unileversustentabilidade.com.br
1.9
1.93
2010
The document contains a
specific section on advertising
for children, which we consider
to be of critical importance. The
code prohibits advertising aimed
at children aged under 6 and
In addition to the global foods
and beverages policy, our
advertising must comply with
Unilever Business Principles,
Brazilian legislation and the
standards established by Conar,
the Brazilian advertising selfregulatory body. We are also
signatories to a number of global
pacts on food and beverage
advertising that include Brazil. In billions of R$
2009
Unilever’s Global Food and
Beverage Marketing Principles
establish the highest standards
of responsibility for our food
and beverage marketing and
advertising. The policy was
revised at the end of 2010
and is available online in our
Sustainability Portal.
Growth of
advertising
and marketing
spending
1.8
1.2
GRI PR6
2008
Unilever is the second largest
advertiser in Brazil, with
advertising investments of R$
1.93 billion in 2010.
stipulates that only products
with a differentiated nutritional
profile may be advertised to
children aged between 6 and
12. These are products that are
in the My Choice programme
(more information about this
programme is available in the
chapter Improving health and
well-being).
2007
Responsible marketing
9
Responsible Practices
Total Number of
Contacts
Breakdown by
Type of Contact
Consumer Satisfaction
1,056,954
91%
Doubts, suggestions,
praise, requests
972,358
2010
2009
2008
823,350
9%
Complaints
Consumer concerns
Consumers contact the company
principally when it is difficult
or impossible to consume a
product because of alterations
in its characteristics, for
example, after exposure to the
wrong temperatures. Other
cases are related to packaging
or difficulty in participating in a
promotion or marketing action.
In these cases, we arrange for
the product to be replaced or
provide the consumer with the
appropriate instructions.
10
For the Contact Centre, a complaint is a
contact in which the consumer alleges or
reports a quality defect in a product or pack,
or an error in marketing, distribution or a
service provided by the company.
Dissatisfaction denotes disapproval of a
company product, service or policy (pricing
and distribution). This is based on each
consumer’s individual perception. Each and
every type of consumer contact is taken into
account in continuous improvement and
innovation processes.
Consumer contacts are important
inputs for the development of
innovations and the business
itself. The consumer contact area
is manned by 240 company and
third party employees and monitors
the contacts received on a daily
basis. This monitoring permits the
company to detect changes in the
nature of consumer complaints and
to find solutions more rapidly.
There were 1,056,954 contacts in
2010, 9% more than the previous
year, with an 8% reduction in
complaints. The reduction in
complaints is attributable to the
cross-functional groups that
discuss and propose improvements
based on the consumer contacts
monitored by the Consumer
Contact Centre, known as the SAC
in Brazil. GRI PR5
Customers
More than just a commercial
relationship, the work we do
with our customers involves a
collaborative partnership. Going
beyond mere cost considerations,
it entails the development of a
joint sustainability agenda initiated
either by Unilever or by the
customer.
Material Theme
A number of actions are underway
under this agenda, particularly
with the large chains such as the
Pão de Açúcar group, Walmart
and Carrefour, as well as regional
customers. Particularly worthy
of note are the Unilever Pão de
Açúcar Recycling Stations project,
begun in 2001, and the Walmart
Sustainability Plan.
Public Policy
In addition to the government
affairs and environment area,
in 2010 we created a technical,
government and institutional affairs
area to strengthen relations with
the government, to discuss and
develop projects jointly with public
bodies and to participate, via the
sector associations that we belong
to, in the formulation of laws and
regulations. Working with the
government is a way of improving
our relations with this stakeholder
and of ensuring our experience
contributes to the formulation of
public policy that benefits society
as a whole. Since our objectives
and those of the government
are aligned, we believe our
contribution is extremely positive.
Sustainable production
and consumption
In October 2010, Unilever and the Ministry of the Environment
were partners in the event Diálogo sobre Consumo Consciente
(Dialogue on Conscious Consumption). The event was the
stage for the presentation of Unilever’s Cleaner Planet Plan
and the Environment Ministry’s Sustainable Production and
Consumption Plan (PPCS). The event was broadcast live on
the Cada gesto Conta page, on Facebook, with 1,196 accesses
during the ceremony.
The programmes share a common objective: building a
new production and consumption model that incorporates
sustainability.
The Cleaner Planet Plan is a broad-based programme aimed at
innovation in the manufacture of household cleaning products
to reduce environmental impacts caused by the production and
use of these products (see more in the chapter on Reducing
Environmental Impact). The PPCS proposes the development
of public policies that promote sustainable production and
consumption. The plan was launched in September and was
under public consultation until November.
The minister of the Environment, Izabella Teixeira, and
Unilever’s president, Kees Kruythoff, participated in the
meeting. GRI SO5
GRI SO5
Communities
The installation of a Unilever
factory provokes a number of
impacts on the surrounding
community. Because the reality is
different in each of these locations,
the units have developed their own
channels of communication and
ways of forging closer ties with the
community. We aim to progress
in this area and further improve
relations with our neighbours. For
2011, the Unilever Sustainability
Committee is developing a new
Conviver programme, enhancing
the community relations
programmes in place at some units
with a view to applying them at all
the company’s facilities.
Under the current Conviver
programme, which began at Valinhos,
our plants promote integration with
the local community and schools
through activities such as plant
visits and environmental education
programmes. The new Conviver
programme will build on these
activities and incorporate them into
our sustainability strategy. GRI SO1
Total invested in 2010:
R$ 11,725,549.98
Total invested in 2009:
R$ 10,355,000
Community investments
We invest in infrastructure and services
for the community and in programmes
such as the Pão de Açúcar Unilever
Recycling Stations, the Dê a Mão Para o
Futuro and Infância Protegida projects.
Find out more projects in the Portal at:
www.unileversustentabilidade.com.br
11
Sustainability Strategy
Sustainability Strategy
For a new business model
In June 2010, we made our
positioning on sustainability public
at the event “Model of Sustainable
Development”. Organized in
partnership with the magazine
Exame, the event presented
Unilever Brazil’s growth model,
supported by the global strategy
announced in 2009 to double
the size of the company while
reducing its environmental impact.
The new growth model was
already part of the UB2012
strategy launched in Brazil in 2008.
This was split into five pillars with
one overall target: to grow our
business by 2012 keeping our
environmental impact at a similar
or lower level than 2007.
Unilever Sustainable
Living Plan
In November 2010, Unilever’s global
Sustainable Living Plan was launched
to make this global vision happen.
This plan is based on the vision of
creating a better future, in which
people can enhance their quality
of life without increasing their
environmental impact.
The Global Plan is split into three
major pillars which cover the main
themes addressed by the company,
as shown in the chart on the next
page. In Brazil, we align the themes
defined globally with our local
priorities, as determined by the
materiality matrix (more details about
the materiality matrix. GRI 4.1
See the materiality matrix in the
chapter on the Reporting Process.
The Materiality matrix defines a company’s priority themes from
the standpoint of its stakeholders. The construction of our matrix
in 2010 was based on: an external axis (studies of models of
sustainability indicators, critical themes and consultations with
specialists) and an internal axis (Unilever global strategy as defined
in the Sustainable Living Plan and a materiality test with our
employees, including leaders). The eight specialists we consulted are
researchers and professionals in the nutrition, environment, health/
hygiene, marketing, retail and consumer areas.
12
This alignment is reflected in the
definition of sustainability targets,
which are part of the company’s
business plan. The targets are
established using Compass, a
tool that translates the strategy
into an action plan, incorporating
sustainability transversally. Using
Compass, targets are defined by the
area leaders, who are responsible
for incorporating them into their
respective action plans and ensuring
they are reached.
The Sustainability Committee
is responsible for overseeing
the company’s performance in
sustainability.
The achievement of these targets is
incorporated into employees’ and
leader’s performance assessment and
impacts their remuneration. GRI 4.5
“In 2009, Unilever launched its new global vision of
doubling the company’s growth while reducing its
environmental impact. In Brazil, our UB2012 strategy
is totally aligned with this vision and is translated into
actions, programmes and targets under the guidance of
the Sustainability Committee.”
Luiz Carlos Dutra,
Vice President of corporate affairs
Alignment of Unilever
Sustainable Living Plan in Brazil
Pillars
Improving Health
and Well-being
Global
Themes
Nutrition
Themes
in Brazil
Health and
Hygiene
Reducing Environmental Impact
Greenhouse
Gases
Improve hygiene habits.
evelopment of more nourishing
D
and healthier products.
onscious consumption and
C
product labelling (beyond legal
requirements): ingredients
and nutritional information,
transgenics and environmental
Impact.
Water
Waste
M
anaging environmental impacts
from production processes and
reducing impacts throughout
the product life cycle: reduction
of GHG / CO2 emissions
throughout the product life cycle,
reduction of water consumption
throughout process (agriculture,
manufacturing and by consumer).
P ost consumption impacts and
reverse logistics (collection of
packaging) and reduction of waste
from packaging and product
disposal.
Enhancing Livelihoods
Sustainable
Sourcing
Better Livelihoods
S ustainability criteria for
selection, assessment and
management of suppliers and
integration of small agricultural
producers and distributors into
supply and distribution chain.
M
ake agricultural raw material
sourcing 100% sustainable and
ensure fair and ethical criteria
for doing business.
13
Sustainability Strategy
Relations with stakeholders
Establishing and maintaining
a dialogue with our different
stakeholders is essential for
increasing our understanding of the
company’s impacts and being able
to effectively do something about
them. For this reason, in 2008 we
mapped stakeholders taking into
account the entire product life cycle.
Based on this study, we initially
defined the company’s employees,
suppliers and customers as priority
stakeholders for engagement.
Our target for 2011 is to engage
90% of our employees in
sustainability, publicizing the
Unilever Sustainable Living Plan
internally and promoting initiatives
aligned with it in all business
areas. We will also reinforce use of
the Small Actions, Big Difference
campaign as a tool to engage our
consumers and will initiate actions
with NGO partners to further
strengthen the work being done
with this public. GRI 4.14, 4.15, 4.16, 4.17
Our objectives for 2011
Theme from Unilever Sustainable Living Plan
Material theme
2011 Objectives
Improve hygiene habits
Support social cause led by the Lifebuoy &
Pureit brands.
Development of more nourishing and healthier
products
Support initiatives to make it easy for
consumers to choose based on their
individual needs.
Conscious consumption and product labelling
(beyond legal requirements): ingredients
and nutritional information, transgenics and
environmental impact
Implement initiatives to encourage
consumers to change their consumption
habits.
Greenhouse Gases
Managing environmental impacts from
production processes and reducing impacts
throughout the product life cycle: reduce GHG /
CO2e emissions throughout the product life cycle
Maintain implementation of GHG gas
emission reduction projects, mainly in
manufacturing and logistics processes.
Continue initiatives to help consumers make
more conscious choices when shopping.
Water
Reduce water consumption in agricultural and
manufacturing processes and by consumer
Maintain continuous improvement of water
consumption monitoring systems in our
chain. Implement initiatives to encourage
consumers to make conscious choices.
Waste
Post consumption impacts and reverse logistics
(collection of packaging) and reduction of
waste from packaging and product disposal
Extend existing post- consumption
packaging collection projects.
Sustainable
Sourcing
Achieve 100% sustainable sourcing for
agricultural raw materials and adopt ethical
and fair trade practices.
Stimulate our suppliers to implement
initiatives that promote best business
practices.
Better Livelihood
Sustainability criteria in selection, assessment
and management of suppliers and integration
of small agricultural producers and distributors
into supply and distribution chain
Expand business with suppliers registered
in Integrare Programme.
Health and
Hygiene
Improving
Health and
Well-being
Reducing
Environmental
Impact
Nutrition
Enhancing
Livelihoods
Overall Business Objectives
14
Engage employees in sustainability,
publicizing Unilever Sustainable Living Plan
internally and promoting initiatives aligned
with it in all business areas.
Cada gesto conta
(Small Actions. Big Difference)
“With its vision of ’Creating a better future everyday’, Unilever has assumed
a public commitment to caring for society and the environment with its
products and everything it does. The fulfilment of this commitment will
ensure widespread recognition of the company by Brazilian consumers,
whose expectation is that the social license for a company to operate implies
assuming an active role in social development that goes far beyond that of a
mere production agent.”
Helio Mattar,
President of the Instituto Akatu pelo Consumo Consciente
Material Theme
Launched in 2010, the Cada
gesto conta (Small Actions.
Big Difference) campaign was
created based on the company’s
commitment to inspire people to
take small, everyday actions that
can add up to a big difference
for the world.
The campaign shows how
small, everyday actions such as
buying a Unilever product, for
example, concentrated OMO
liquid detergent, concentrated
Comfort fabric softener or
Becel Pro-Activ margarine –
which respectively promote
sustainability and help improve
nutrition and health – can help
ensure a better future. These
products represent company
sustainability initiatives in
the three pillars of our global
strategy.
The pioneering campaign made its
debut in the virtual relationship
networks in June 2010, with the
launch of the “Cada gesto conta”
(Small Actions, Big Difference)
fanpage on Facebook, promoting
a dialogue with consumers and
airing the company’s position
on conscious consumption. The
interaction enabled by digital
media permitted consumers
to share their own sustainable
consumption practices and tips. By
the end of the year, the page had
more than 20,000 followers.
Find out more about the campaign at:
www.facebook.com/cadagestoconta
15
Sustainability Strategy
In our calculations of greenhouse gas emissions, we adopted CO2e
(equivalent) as the standard unit. This measure, which uses the GHG
Protocol methodology as a reference, permits the calculation of all
greenhouse gas emissions using a common basis according to each
one’s potential for global warming.
Reached
Partially reached
Not reached
Under development
Target table – Thermometer of targets set for 2010
Theme
Target
Thermometer
Environmental
themes –
manufacturing
Include main Brazilian
suppliers in Carbon
Disclosure Project (CDP) by
2015.
Under development – In 2010, all the 16 Brazilian suppliers invited by
Unilever Brazil to respond to the CDP adhered to the project.
Assurance of greenhouse
gas inventory (GHG – base
year 2009) by accredited
company.
Reached: GHG inventories were audited in 2009 and 2010 by KPMG,
in accordance with Brazilian GHG Protocol programme (for the first
time).
SOx generation target for
2010: 0.0336 kg SO2/t
produced.
Reached: In 2010, emissions were 0.030 t SO2/t produced.
Water consumption target
for 2010: 1.894 m³/t
produced.
Reached: In 2010, consumption was 1.887m³/ t produced.
COD (Chemical Oxygen
Demand) target for 2010:
0.254 kg/t.
Not reached: In 2010, COD was 0.452 kg/t, an increase over 2009.
Justifications: The effluent COD target for 2010 projected an
increase compared with 2009 performance. However, the result
exceeded the projection, mainly because of the Jaboatão and
Valinhos operations.
In Jaboatão, this was due to the higher number of product
innovations in ice cream manufacturing and production increases,
requiring more frequent cleaning of the production lines. This led
to an increase in liquid effluent generation. In Valinhos, a new
biological treatment process was implanted in June, 2010.
See further information in the Portal
www.unileversustentabilidade.com.br
Energy consumption
target for 2010: 1.501 GJ/t
produced.
Not reached: 2010 consumption was 1.551 GJ/ t produced.
Justifications: In 2010 there were various expansions, new equipment
installations, changes in technology and process automation projects
which reduced environmentally efficient energy consumption at the
Goiânia, Igarassu, Ipojuca and Vinhedo plants.
See further information in the Portal
www.unileversustentabilidade.com.br
Hazardous waste generation
target for 2010: 0.012 kg/t
produced.
Non-hazardous waste
generation target for 2010:
2.158 kg/t produced.
16
Not reached: In 2010, Hazardous waste generation was 0.013 kg/t
produced and non-hazardous waste, 3.33 kg/t produced.
Justifications: The plants that contributed to this performance were
Garanhuns, Indaiatuba and Jaboatão dos Guararapes.
Further information is available in the Portal
www.unileversustentabilidade.com.br
Theme
Target
Environmental
themes – nonmanufacturing
Substitute cartons currently
used in transportation of
Rexona, Dove and Axe 50 ml
roll-on deodorant portfolio
with cartons made from
recycled cardboard.
Reached: In 2010, we replaced the cardboard cartons for the entire
Rexona, Dove and Axe 50 ml roll-on deodorant portfolio with 100%
recycled cartons, as was done with the 30 ml roll-on line in 2009.
Expand use of multimodal
logistics model in
transportation of raw
materials on the SantosIndaiatuba route, reducing
CO2e* emissions by 19%.
Reached: We expanded use of the logistics model reducing CO2e*
emissions by 70%.
Reduce total waste
production by 1.5% to 3.7
kg/t.
Reached: Waste generated was 2.23 kg /t commercialized.
Increase waste recycled by
5% to 35%.
Reached: total waste recycled in 2010 was 46%.
Reduce energy consumption
by 5% to 0.474 GJ/t
commercialized.
Reached: In 2010, energy consumed totalled 0.471 GJ/ t
commercialized.
Reduce water consumption
by 11% to 0.08 m3/t
commercialized.
Reached: In 2010, water consumption was 0.04 m3/t commercialized.
Reduce accident with injury
rate from 1.6 to 1.4 (TRFR –
Total Recordable Frequency
Rate)**.
Not reached: The TRFR was the same as 2009 (1.6), not reaching the
1.4 target set for 2010. In 2010 there was a reduction in the number of
accidents; however, our performance indicator is based on the number
of man hours worked. The target was not reached because of the
reduction in man hours worked.
Maintain the NIFR – Non
Injury Frequency Rate –
(traffic accidents involving
employees without injury,
expressed in one million
kilometres driven) at 0.31.
Not reached: The rate was 0.65 in 2010, higher than the 2009 rate of
0.47, due to the higher number of traffic accidents without injury in
which employees were involved.
Code of Business
Principles
Provide online training on
Code of Principles to all
company employees to
improve internal security
and underscore importance
of human rights.
100% of employees received training on the code of principles upon
entering the company. In 2010, all employees took part in classroom
or online training.
Health
Increase range of the
Vital&Idade – Retirement
Planning Programme. Pilot
project already run at
Valinhos, to be extended
to other plants throughout
2010.
Reached: In 2010 the programme was extended to the Vinhedo plant,
offices (JK1, JK2 and Rochaverá), sales and distribution staff.
Engagement
Increase business done with
the NGO Integrare to US$ 1.5
million.
Reached: Total Unilever business done with Integrare in 2010 was
U$ 1.9 million.
Social
Responsibility
Maintain incidence of
child labour at 0% in the
municipal districts in which
the Infância Protegida
project is in place.
Reached: There were no recorded cases of child labour in the districts
served by the project.
Occupational
safety
Thermometer
* The LTA (Lost Time Accidents) reduction target established in 2009 will be expressed only in TRFR.
17
Improving Wealth
and Well-being
Promoting people’s health and well-being is
essential to Unilever. In particular, our food and
personal hygiene products enable us to enhance
nutrition and hygiene, making headway against
two of the major heath challenges worldwide:
cardiovascular disease and diarrhoea.
18
Cada gesto conta
(Small Actions. Big Difference)
According to UNICEF (United Nations Children’s Fund)
every year 3.5 million children die from diarrhoea and
acute respiratory problems worldwide. Hand washing with soap is
important in preventing these
diseases, especially among
children. A survey of 277
Brazilian mothers, conducted
by IBOPE Inteligência under
commission from Lifebuoy,
showed that although 87% of
the mothers stated that they
know hand washing with soap
reduces the chance of disease,
only 25% confirmed that they
ensure their children wash
their hands after using the
bathroom.
DID YOU
KNOW
Health & Hygiene:
One goal of the Lifebuoy brand’s
social mission is to improve the
hygiene habits of one billion
people in Asia, Africa and Latin
America by encouraging them to
wash their hands at key moments
during the day.
Nutrition:
that Knorr stock pot has
zero trans fat and 25%
less sodium than the
same stock flavours in the
traditional format.
19
Health and hygiene
Health and Hygiene
In this pillar one of our
commitments is to promote
hygiene habits that improve
public health.
To this end, in 2010 we formed
a partnership with Pastoral da
Criança. Jointly we will publicize
the importance of hand washing
with soap to prevent diseases
(such as diarrhoea, respiratory
and eye infections) among the
thousands of families assisted by
the Pastoral throughout Brazil. This
message was transmitted to the
1.2 million families with children
aged between 0 and 6 served by
the Pastoral all over the country.
Also in 2010, the same message
was printed on approximately
300 million LUX and Lifebuoy bar
soap packs.
Lifebuoy
Relaunched in Brazil in 2010, the
anti-bacterial soap Lifebuoy has as
its social mission the propagation
of the importance of hand washing
with soap to reduce child mortality
and improve quality of life. This
initiative is already underway in 34
countries in Asia and Africa.
Unilever Sports
Citizen Programme
Aimed at children and adolescents, the
Sports Citizen programme was created in
1997 as a socio-educational project based
on a methodology promoting social inclusion
and human development through sport.
In Brazil, the brand established a
partnership with the Pastoral da
Criança to spread the message
that hand washing with soap is
important for preventing diseases
such as diarrhoea, respiratory and
eye infections to the families the
organization helps throughout
the country.
More than 90 thousand children aged
between 7 and 15 years have benefited
from the programme in the last 14 years.
In 2010, 9 thousand children participated
through its 45 centres in Paraná, São Paulo
and Rio de Janeiro. Unilever runs the
programme in partnership with the Instituto
Esporte e Educação (presided by the athlete
Ana Moser), Instituto Compartilhar (presided
by the volleyball coach Bernardinho) and
the Paraná state government.
Find out more about Lifebuoy at:
www.lifebuoy.com.br
See more about the programme in the
Portal: www.unileversustentabilidade.com.br
Right to be a Child Programme
Omo promotes the Right to Be a Child programme at schools and among educators to underscore the
importance of games and play for childhood learning. Begun in 2008, the programme is recognized by
childhood learning institutions for the value it places on play.
The first Brazilian programme was launched in 2010, with applications from 4,005 schools in 895 municipal
districts nationwide. From these, 2,448 were classified for quantitative evaluation in the first phase, while the
others did not provide enough data for assessment. The quantitative evaluations will be conducted at the
beginning of 2011 and up to 36 schools will receive awards.
More information available on the website: www.pelodireitodesercrianca.com.br
20
“The partnership with Unilever in the Lifebuoy project helps us
to develop new strategies and expand our activities. We aim to
renew the hand washing message among our 232 thousand
volunteers and provide guidance for the more than one million,
six hundred thousand children and their families served by the
Pastoral da Criança throughout Brazil.”
Clovis Boufleur,
Institutional Relations Manager, Pastoral da Criança
Nutrition
Material Theme
Material Theme
My Choice Programme
Brazil has two nutrition-related
public health problems: excess
weight and nutritional deficiency.
Since 2003, we have developed our
Nutrition Enhancement Programme
to improve the nutritional quality
of our products and to promote
healthier eating options.
The My Choice programme aims
to make it easier for the consumer
to opt for healthier foods and
to encourage companies to
improve the composition of their
products. The initiative, which is in
place in more than 50 countries,
is led globally by the Choices
International Foundation (CIF);
Based on international nutritional
in Brazil it is coordinated by the
parameters, Unilever scientists define
Instituto Minha Escolha. Foods
limits for trans fats, saturated fats,
with reduced levels of sugar, trans
sodium and sugars. The methodology
fats, saturated fats and sodium
and the amounts were published
qualify for the seal, which is
in the European Journal of Clinical
stamped on the pack. By the end
Nutrition (2007) and were submitted
of 2010, 167 Unilever products or
for evaluation by diverse nutrition
68% of the company’s portfolio
discussion groups. We constantly
had received the seal. It is our
assess our foods and beverages to drive intention to continue to develop
product improvement and innovation
formulations that improve the
and increase the offer of healthier
nutritional profile of our products.
alternatives for the consumer.
In 2010, we launched the seal
We are also working on raising
in the bouillon (Knorr stock pot)
awareness and disseminating this
and ketchup (Hellman’s ketchup)
information through other channels
categories. GRI PR6
with the My Choice seal. Stamped
on the product label, the seal is a
guarantee that products have levels of
the four priority nutrients in compliance
Learn more about the programme at:
with the recommendations of
www.programaminhaescolha.com.br
international health authorities.
68%
of the products
in our portfolio
already have the
My Choice seal
21
Health and hygiene
Products with
outstanding
nutritional profiles
in the My Choice
programme
We had
removed
more than
20million Material Theme
Nutrition Enhancement
Programme
Launched globally by Unilever in
2003, the Nutrition Enhancement
Programme or NEP was the first to
control and reduce four nutrients
potentially harmful to health –
sugar, sodium, saturated fats and
trans fats. So far, we have removed
more than 60 million kilograms
of these four nutrients from our
portfolio (3 million kilos of sodium;
20 million kilos of sugar; 7 million
kilos of saturated fat and 30 million
kilos of trans fat). GRI FP6
See the percentage of our
products in compliance with Nutrition Enhancement Programme
nutritional recommendations at:
www.unileversustentabilidade.com.br
22
Knorr stock pot, Hellmann´s mayonnaise,
“Meus Temperos” line of seasonings, Hellmann´s
ketchup, Becel margarine, AdeS beverages.
kg of sugar from our
portfolio by the end of 2010
Material Theme
Fortification
The main public health problems
in the country are excess weight/
obesity and nutrient deficiency.
One Unilever initiative designed
to reduce micronutrient deficiency
among Brazilians is the fortification
of our food products. Among other
measures, our food fortification
policy requires research into the
incidence of nutrient deficiency
among the population and the best
way to supply the missing nutrients
to ensure the efficiency of the
policy. Unilever products that have
added nutrients include the AdeS
Original line (with added calcium),
the AdeS Frutas line (vitamins and
minerals), AdeS Nutrikids (vitamins
and minerals); the Becel Original
line (added vitamins and minerals);
and the Becel Pro.activ line (added
phytosterols). GRI FP7
See the percentage of fortified
products in our portfolio in the Portal:
www.unileversustentabilidade.com.br
Material Theme
Labelling:
Foods and Beverages
To avoid health risks for
our consumers, all our food
products are in compliance
with consumer information
standards. In line with our
voluntary internal policy,
food product labels also state
the presence of allergenic
ingredients and derivatives.
These include: crustaceans, molluscs, eggs, fish,
peanuts, soy, milk and sesame. Additionally,
we voluntarily declare the presence of
nuts, almonds, Brazil nuts (fruit and oilseed
grains) and sulphur dioxide and sulphides in
concentrations greater than 10 mg/kg. With
respect to allergenic substances, Brazilian
sanitary legislation requires only that the
presence or absence of gluten be declared.
In compliance with Brazilian legislation, all
Unilever products containing transgenic
ingredients inform this on the label, as is the
case with Maizena and Knorr chicken and
vegetable paste stocks – the stocks will no
longer be commercialized in Brazil in 2011.
GRI PR3
23
Reducing
Environmental
Impact
Between 1995 and 2010,
Unilever Brazil managed
to reduce (in tonnes
produced):
Energy consumption by
43%
Water use by
37%
Waste* generation by
at its 12 plants.
89%
*Non-recyclable
24
We aim to work with consumers,
customers, suppliers and
other partners to reduce the
environmental impact of our
operations, products and
activities.
We aim to reduce
our environmental
impacts while
growing our
business.
DID YOU
KNOW
One in every 3
families worldwide
uses a Unilever
cleaning product:
that means
125 billion
washes
in just one year.
25
Reducing environmental IMPACT
Our Environmental Footprint
Material Theme
Since 1993, management of the
company’s environmental impacts
has been the responsibility of
the SHE or Safety, Health &
Environment area, which has
been producing very significant
results in terms of eco-efficiency,
waste recycling and process
improvement. With the Unilever Sustainable Living
Plan we have expanded the scope of
product impact assessment to cover
the entire product life cycle. To reach
the expected results, investments
in technology and research will be
necessary. Similarly, we will have to
work more closely with suppliers and
consumers to increase our capacity
for action.
GRI EN30
Our major challenge and main
target is to reduce greenhouse gas
emissions using our 2007 emissions
as a baseline. Greenhouse gas
emissions (measured in tonnes of
CO2e*) are our most critical theme,
which we address taking the
entire supply chain into account,
in particular product distribution.
This means that we not only have
to consider our plants and offices,
but also work with our suppliers
and customers to find solutions
and implant best practices that will
enable us to achieve our targets.
Unilever Sustainable
Living Plan global commitments
Greenhouse Gases
Reduce emissions throughout our value chain.
Water
Reduce water consumption, especially in countries where water is scarce.
Waste
Reduce waste from the disposal of our products.
Sustainable sourcing
Use materials from 100% sustainable agricultural sources.
In our calculations of greenhouse gas emissions, we adopted CO2e (equivalent) as
the standard unit. This measure, which uses the GHG Protocol methodology as a
reference, permits the calculation of all greenhouse gas emissions using a common
basis according to each one’s potential for global warming.
26
Investments in environmental
conservation in Brazil in 2010 (R$)
Waste treatment and
disposal
12,951,740
Reduction of emissions
and Greenhouse Gas
Emissions Inventory
certification
1,143,426
Equipment and materials
1,335,792
Environmental
responsibility insurance
3,020
Mitigation of accidents
6,419
Environmental training
and education
166,123
Environmental service
management
439,526
Management system
certificates
42,610
Environmental
management activities
Research and development
Deployment of new
technologies in detergent
manufacturing
Green purchases (flow
control devices and mixers
for taps and showers)
Other costs
TOTAL
473,838
70,000
34,978,446
7,400
585,807
52,204,146
“The launch of the Cleaner Planet Plan programme is
a demonstration of Unilever’s leadership in changing
consumer habits in the clothing care category.”
João Campos,
Vice President of Ice Cream and Domestic Cleaning
See a detailed account of all our indicators and a
complete analysis of the company’s environmental
performance, including impacts on biodiversity, at:
www.unileversustentabilidade.com.br
Material Theme
Cleaner Planet Plan
Cleaner Planet Plan or Por um Planeta mais Limpo (PPL) was
launched in Brazil in 2010. This is wide-ranging programme
focused on the clothing care category, which features products
such as Omo detergent and Comfort and Fofo fabric softeners.
In line with the company’s global sustainability policy, Cleaner
Planet Plan was designed to analyze environmental impacts
throughout the product life cycle.
The strategy consists of medium and long-term plans for
developing innovations, initially until 2014; it also sets global
impact reduction targets up until 2020. All the countries in
which the company has brands in this category will contribute to achieving the global target. GRI EN26
For a cleaner
planet Innovation
What has changed
Impact
Detergents – OMO,
Surf and Brilhante
Change in powdered
detergent formulation,
substituting phosphate
with carbon and zeolite
30 to 40% reduction in GHG emissions (measured in tonnes of CO2e) in
production process.
OMO liquid
concentrate
Development of
concentrated liquid
detergents for
washing clothes
The environmental impact of liquid detergents production is lower. If all OMO
consumers migrated to the concentrated liquid version, this would avoid CO2e
emissions of 130 thousand tonnes per year, the equivalent of removing 37,000
cars from the streets.
Comfort and Fofo
concentrates
Development of
concentrated fabric
softeners for
washing clothes
For Comfort, concentration means an annual reduction in consumption of
50 million litres of water, 988 tonnes of plastic, 1,172 tonnes of paper, avoiding
1,483 tonnes of CO2e emissions. For Fofo, concentration means an annual
reduction in consumption of 25 million litres of water, 458 tonnes of plastic,
544 tonnes of paper and avoiding 688 tonnes of CO2e emissions.
27
Reducing environmental IMPACT
For most environmental data, our
report separates the manufacturing
and non-manufacturing areas*.
Manufacturing data are presented
in absolute or relative values, using
units per tonne produced as a
metric. For the non-manufacturing
areas we use units per tonne
commercialized. In some cases,
we do not report absolute figures
when we consider this information
to be strategic and, consequently,
confidential.
though Brazil is not on this list, we
also need to save water. Although
Brazil has large fresh water reserves,
there are areas in which this
resource is scarce, such as the semiarid regions or where supplies are at
risk due to increased consumption or
environmental degradation.
For Unilever, water is a priority in the
countries in which this resource is
scarce and which are home to half of
the world’s population (China, India,
Indonesia, Mexico, South Africa,
Turkey and the United States). Even
Water consumption
In 2010, Unilever Brazil reached its water consumption targets. For 2011, our
target for plants will be 1.867 m3/t produced; in non-manufacturing, 0.08 m3/t
commercialized.
GRI EN8
Manufacturing
(in m³/tonne produced)
non-manufacturing
(in m³/tonne
commercialized)
2.158
1.908
0.09
1.871 1.887 1.894
0.08
0.08
1.858
0.04
28
2009
2008
target
2010
2010
2009
2008
2007
* Non-manufacturing includes: product warehousing
and distribution centres, sales and merchandising;
offices; research and development centres.
2006
Our robust performance in reducing
greenhouse gas emissions is worthy
of note. In 2010 they were lower
than in 2007, in spite of a 22.5%
increase in revenues (R$ 9.7 billion
in 2007).
target
In 2010, Unilever Brazil grew
significantly. Many of the targets
set for environmental indicators
were reached. Improvement
processes are underway for all
targets, irrespective of whether
they were achieved or not. This
shows that we face a great
challenge not only in reaching
targets but also in changing the
way we do business. Even so, we
reiterate our commitment to grow
and to reduce our environmental
impact at the same time.
Water
2010
Environmental
Performance
Material Theme
2010
Material Theme
Direct energy purchased
Indirect energy purchased
Scopes 1 and 2
(GJ/t prod)
Scopes 1 and 2
(GJ/t prod)
Natural Gas
0.614
0.600
Total Diesel
0.002
0.004
LPG
0.034
0.035
Total Gasoline
0.020
0.014
Total Ethanol
0.015
0.018
Biomass
0.470
0.503
Fuel Oil
0.059
0.069
Electricity
0.818
0.789
Total
2.033
2.032
In 2010, energy consumption performance did not meet the targets set for the
plants. Our 2011 target for plants is 1.520 GJ/t produced; in non-manufacturing
it is 0.466 GJ/t commercialized.
GRI EN3, EN4, EN5
Manufacturing
(in GJ/tonne produced)
Non-manufacturing
(in GJ/tonne
commercialized)
1.726
0.84
1.603
Details about effluent disposal,
legal compliance and data on
Chemical Oxygen Demand (COD)
are available in the Portal: www.
unileversustentabilidade.com.br
1.551 1.501
1.510 1.531
0.70
target
2010
2010
2009
2008
2006
0.471 0.474
target
The effluents resulting from
our manufacturing activities are
controlled using a management
model based on continuous
improvement. At the Ipojuca and
Igarassu units, there are projects to
reuse the water from the effluent
treatment plants. Since 2000, the
Indaiatuba plant has reused water
from treated effluents.
2010
Energy Consumption
2008
Liquid effluents
2007
Material Theme
2009
2010
In 2010, 58.7% of our energy
consumption came from renewable
sources, such as sugarcane bagasse,
wood chips and ethanol.
Total energy consumption by source
2010
In recent years, the company has
increased mapping of the energy
sources it uses and sought to
migrate from the consumption of
non-renewable to renewable energy.
GRI EN3, EN4
2009
Energy
29
Greenhouse gases
The most critical points are raw
material supplies and consumption,
which together account for more
than 90% of product life cycle
emissions. Therefore, the challenge
for us is to propose changes in
habits to our consumers and
suppliers. In Brazil we have had a
specific reduction strategy since
2009, stipulating that greenhouse
gas emissions in 2012 in absolute
values must be lower or the same
as in 2007.
Material Theme
Measuring our Impact on Global Warming
In 2008, we elaborated our first greenhouse gas emissions inventory
based on the Greenhouse Gas Protocol; in 2010, we joined the
Brazilian GHG Protocol programme. Our emissions report is rated
Gold. The target for GHG emissions in Brazil in 2011 is to maintain
the level agreed on in the 2007 inventory baseline: 283 thousand
tonnes. This level, which was previously 212 thousand tonnes, takes
into account the same scope of sources, but was reviewed due to
improved internal data management and reduced uncertainty
about data. In 2010, we presented two emissions results: one for
comparison with the base year, which uses the same sources mapped
in the 2007 inventory; the other takes into account a wider range of
emission sources, such as third-party transportation and refrigerant
gases at the plants. This result, verified by KPMG, shows emissions of
295 thousand tonnes in 2010.
In our calculations of greenhouse gas emissions,
we adopted CO2e (equivalent) as the standard
unit. This measure, which uses the GHG Protocol
methodology as a reference, permits the calculation
of all greenhouse gas emissions using a common
basis in accordance with each one’s potential for
global warming.
History of
Non-Renewable
Emissions, in t CO2e
(x1000)
The company’s 2011 target
for GHG emissions in Brazil is
283 thousand tonnes.
GRI EN16, EN17
283
See the results of the 2010 emissions inventory in greater detail in the
Portal: www.unileversustentabilidade.com.br
281
277
258
2010
Scope 1
96
96
Scope 2
11
25
Scope 3
151
160
Total
258
281
Scope 1: direct GHG emissions – from sources owned or controlled by the company.
Scope 2: indirect electricity GHG emissions – from the generation of electricity acquired or consumed by
the company.
Scope 3: other indirect GHG emissions – from company-related activities at sources not owned or
controlled by the company.
30
2008
2009
2007
GHG emissions by scope in tCO2e (x1000) GRI EN16, EN17
2010
Climate change is one of the most
significant environmental issues for
Unilever. Globally, we assess the
full extent of our greenhouse gas
emissions (GGE) from raw materials,
through manufacturing and
distribution to use and disposal by
the consumer.
2009
Reducing environmental IMPACT
Material Theme
Material Theme
Pão de Açúcar Unilever
Recycling Stations
A partnership between Unilever’s
OMO, AdeS, Knorr and Rexona brands
and the Pão de Açúcar supermarket
chain, the Recycling stations have been
in place since 2001. These stations
put the concept of reverse logistics
into practice sharing responsibility
for the management of recyclable
waste among industry, the retail trade,
consumers and public authorities.
We used our experience in the Pão
de Açúcar Recycling Stations as a
management model in our positioning on Brazil’s national solid waste policy.
All the material collected in the project is donated to 27 cooperative partners, generating direct and indirect
jobs for more than 600 people. In 2010, we had 110 stations in operation in 31 cities and eight states.
In 2010, we initiated a pilot project to recycle aerosol deodorants. Disposal of this kind of aluminium pack
requires special care because it contains gases kept under high pressure. After delivery to a recycling station,
the aerosol is sent to a cooperative which sells it to a specialized company. The programme will be implanted at
other recycling stations in the city of São Paulo in 2011. GRI EC9, EN27, SO5
Material Theme
Material Theme
Waste
Sustainable sourcing
Waste management at Unilever
takes into account the waste from
our products, packaging and our
operations, covering the entire value
chain. We work both on reducing
the generation of waste and
improving waste disposal through
reuse and recycling processes. Our
efforts in this area go beyond our
direct operations, because we
encourage our partners to adopt
waste management policies. To
reach our target, we will form
partnerships with governments,
NGOs, customers and reprocessing
companies.
GRI EN22
Reuse of waste materials at Unilever
99.8% 0.2%
Non-hazardous
Hazardous
Non-Recycled
99.7% 0.3%
Non-hazardous
2010
2010
2009
96%
Recycled
Hazardous
Non-Recycled
95%
Recycled
To meet our environmental impact
reduction target, we intend to
obtain all of the raw materials
employed in our products and
packaging from sustainable
sources. Since more than half
of the raw materials we use
globally come from agriculture or
forests, initially we will attempt
to influence the production
chain to foment sustainable
agricultural practices. To do this,
we are engaging our suppliers in
international sustainable practice
programmes.
To reach our target of 100%
sustainable sourcing, we will have
to overcome some significant
obstacles, such as difficulty in
developing parts of the supply
chain in which our demand and,
consequently, our influence is
limited. Regarding non-agricultural
inputs, a positive impact will
depend greatly on investments in
technological development on the
part of these partners.
31
Enhancing
Livelihoods
Due to Unilever’s
prominence in Brazil, we
believe we should adopt
a systemic vision of the
contribution we make to the
society of which we are part.
We promote development by generating new businesses,
creating steady jobs and developing the skills of our partners
and employees so they may live better and healthier lives. Through our projects we seek to exercise a positive influence
on our suppliers, distributors and other business partners,
fomenting best practices throughout the value chain.
32
Small Actions,
Big Difference
As a means of Better
Livelihoods we will
integrate more than 500
thousand small farmers
and distributors into
our global supply chain
through the Unilever
Sustainable Living Plan.
We have assumed
a commitment to
improve the living and
working conditions of
hundreds of thousands
of people through the development of
our businesses around
the world.
DID YOU
KNOW
In 2010, we invested R$
3.23 million in the Integrare
Programme, aimed at
integrating micro and small
companies into our businesses
and qualifying suppliers
from social and economic
minorities. The target is to
increase this investment to R$ 4.25 million in 2011.
33
ENHANCING LIVELIHOODS
Better Livelihoods
We work with thousands of
small businesses all over the
world. These include small
farmers and micro-businesses
in different sectors, many
of them in the developing
countries, such as Brazil.
Integrating these workers into the
production chain and encouraging
them to adopt sustainable practices
improves their qualifications and
productivity, raising income levels
and standards of living. To achieve
this, we have developed a number of
programmes and processes focused
on supplier relations, described in
this chapter.
Material Theme
Managing suppliers
In Brazil we currently have around
5,800 different-sized suppliers in
the most diverse areas, each one
with its own needs, expectations
and interests.
We seek to develop our partners’
potential with a view to promoting
sustainability in our value chain.
The purchase of inputs is an
attribution of Unilever Americas
(regional management unit), which
acquires products from suppliers
all over the world, including Brazil.
Since we negotiate large volumes
for our subsidiaries all over the
Americas, this helps reduce costs
and homogenize product quality.
34
Management of supplier relations
follows a global governance
model. In each country, including
Brazil, the Global Strategy area,
subordinated to the regional vice
president (Unilever Americas),
works with the local supply
chain area in each country to
deploy the strategies defined for
managing the suppliers in the
chain – specifically those providing
the inputs used in manufacturing
our products. This structure is
responsible for meeting the
targets established for the area.
“The commitment set forth in Unilever’s global
vision represents a fundamental change that will
influence all our new projects and impact the
entire value chain.”
José Negrete,
Vice President, Supply Chain
Material Theme
Local partnerships
The criteria used to choose suppliers
include sustainability (for example,
legal, environmental and labour
compliance, certifications etc.),
costs, quality and service levels.
In 2010, 98% of Unilever Brazil’s
purchases came from local suppliers
– defined as all those operating in
the country in question. GRI EC6
Sustainability,
costs, quality and
service level are
our criteria for
choosing suppliers
Encouraging Best Practices
All our contracted suppliers (covering production items, nonproduction items and logistics services) must sign and agree
with our Code of Business Principles. Non-compliance with
the Code means disqualification of the supplier, such as, for
example, when corrupt practices are proven. In 2010, none of
our suppliers were disqualified. The Code of Business Principles
includes clauses on human rights and the prohibition of slave
and child labour. 100% of Unilever’s suppliers signed the code
in 2010. GRI HR1
35
ENHANCING LIVELIHOODS
Our supplier relations management programmes and processes
Management
programmes and
processes
What is it?
2010 results
Management processes
In Brazil, our buying department has an internal area dedicated exclusively to addressing sustainability at our suppliers. Among the processes
developed by this area, two are particularly worthy of note: the engagement process and the SEDEX programme, both described below. The
complete description of the processes is available at: www.unileversustentabilidade.com.br
Sedex – Supplier
Ethical Data
Exchange
A global platform created by AIM (European Brands Association)
whose membership consists of the largest consumer goods
companies in Europe. It monitors ethical best practice in global
supply chains, evaluating suppliers’ labour relations, business
conduct, health & safety, and environmental practices.
134 Brazilian suppliers were selected to
participate in the platform and 50 have
already completed the SEDEX registration
process; 9 have been audited. The target
for 2011 is to have all these suppliers
registered.
Engagement
with suppliers
of production
inputs GRI 4.7
At the end of 2009, 60 important suppliers (accounting for
80% of spending on production items) were invited to fill out a
questionnaire and participate in meetings to generate ideas for joint
work focused on sustainability.
40 suppliers filled out the questionnaires
and five of the 46 ideas generated
were implanted in 2010. The others are
currently under evaluation.
Specific programmes with suppliers
CDP – Carbon
Disclosure
Project
CDP is a global coalition of investors that encourages publicly traded
companies to disclose information on greenhouse gas emissions.
Unilever is a global member of CDP; in 2010 it invited its major
Brazilian suppliers to respond to a CDP questionnaire.
All of the 16 Brazilian suppliers invited
to respond to the CDP questionnaire by
Unilever in 2010 joined the project.
Projeto Rural
Responsável
(Rural
Responsibility)
This project is aimed at eliminating informal labour in agricultural
work, in partnership with local governments and agricultural unions.
We stress the need for employers to comply with labour legislation
and to provide labourers with protective equipment, for example.
We reached our target of zero cases
of child and forced labour among our
suppliers. In December 2010, the project
was officially transferred to Cargill due to
the sale of the tomato business.
GRI EC9
Infância
Protegida Project
(Protected
Childhood)
The project involves around 60 agricultural suppliers and thousands
of workers in Goiânia (GO). In 2010, the tomato business in
Goiânia was sold to Cargill, who will maintain the project
Created in 2003 to eliminate child labour in the supply chain of the
company’s tomato business in Goiânia (GO), the project is run jointly
with local governments and children’s and adolescents’
rights councils.
This project ceased to be Unilever’s responsibility upon the sale of
the tomato business to Cargill in 2010.
36
In 2010, the project provided a basis for the
formulation of public policy in the towns of
Itaberaí, Silvânia, Vianópolis and Morrinhos
(GO). During the year, Unilever invested
R$ 800,000, including contributions to the
Children’s and Adolescents’ Funds.
An example of the type of project developed through this process
is the replanning of aroma purchases that enabled our supplier
to reduce its water consumption by 14 thousand litres per month.
At the supplier’s plant, it is necessary to wash the production line
after each changeover in aroma to prevent the different smells
from mixing.
Measures like these prove that a focus on sustainability makes
it possible to generate a positive impact on our manufacturing
processes. GRI 4.7
46
ideas under
development
5
projects with
suppliers
implanted
Integrare Programme
Integrare Targets
at Unilever
Through the Integrare programme we strive to incorporate small
and micro companies into our business. The programme is run by the
NGO Integrare, which articulates business deals between suppliers
from social and economic minorities and large companies. The
NGO works with 450 companies, 22 of which now do business with
Unilever. In spite of the increased complexity of the supply chain,
we reached our 2010 targets for this programme in October. Total
business transacted for the year was R$ 3.23 million. Unilever has
been in the programme since 2006.
In R$ millions
in 2009, the figure was R$2.04 million
target
2010
R$ 3.23 million
1.70
target
Total business in 2010
2.55
2009
More information about the Integrare Programme available at:
www.integrare.org.br
4.25
target
In 2009 we initiated a structured engagement process with 60
major Unilever Brazil suppliers. This process is being developed in
stages with a view to generating ideas and taking on new projects
focused on sustainability that may be undertaken jointly.
major suppliers
in engagement
process
2011
Supplier Engagement
60
All purchases of non-production items, including
those involving Integrare programme suppliers,
are made by our third-party service provider.
A monthly report is produced on all purchases
from Integrare suppliers. This lists the name of
the supplier, the name of the buyer, the materials
acquired and the amount spent.
37
Peolple
People
Implant an action plan
based on the findings of the
internal satisfaction survey
(Global People Survey – GPS –
detailed at the address: www.
unileversustentabilidade.com.br).
onsolidate Feel Free – a pillar
C
of the Quality of Life programme
promoting flexible ways of working.
38
Total no. of employees
12,064
11,288 11,282
Employee profile
For us, a healthy work
environment is one in which
people are able to develop their
skills and realize their personal
and professional goals. To achieve
this, we have developed a series
of initiatives aimed at providing
a workplace in which there is
a balance between genders,
reduced employee turnover and
a diversified work force. At the
end of 2010, we had 12,064
employees. GRI LA1
See our full employee profile
in the Sustainability Portal www.unileversustentabilidade.com.br
2010
Continue the cultural
transformation process.
Initiate the counselling program
linked with the Women’s
International Network (described
in detail in this chapter) aimed
at organizing discussion groups
focused on including women in
senior management.
2009
Our commitments
in Brazil for 2011
Refine the diversity policy.
2008
We believe that creativity
and business success depend
directly on our work force.
We focus on guaranteeing our
employees’ motivation, health
and commitment as a means
of attracting and retaining the
best professionals. With the
Unilever Sustainable Living Plan,
we have adopted measures
to reduce diseases and workrelated accidents, to improve
our employees’ health and
nutrition and to diminish the
environmental impacts caused
by our offices.
“The objective of engagement is to make
sustainability a value for our employees. We
want them to embrace this cause.
The sustainability programme will be the
heart and soul of our strategy.”
Marcelo Williams,
Vice President of Human Resources
GRI 4.1
Diversity
We seek to embrace diversity in
our work force with a view to
developing an inclusive working
environment and a wide-ranging
business vision. In 2010, we
formed the Diversity Committee,
comprising eight senior managers.
This committee is charged with
establishing guidelines and
strategies to ensure we have a
diversified work force.
In 2010, the committee drafted a
new strategy based on three pillars:
gender, social inclusion (including
the disabled) and leadership styles
– the latter being our ultimate
objective in striving for diversity. Women’s International Network The gender issue is one of the pillars of diversity in the company,
aimed at creating an inclusive environment in which women at
any level in the business may realize their full potential.
With this goal, Unilever Brazil instituted the Women’s
International Network (WIN) – a mechanism addressing women’s
needs in the workplace. Its mission is to build a network by
means of which women may exchange experiences and learning,
empowering them to further their professional development
and reach higher levels in the organization.
Two networking events involving all the company’s directors and
vice presidents had been held by the end of 2010. The target for
2011 is to involve all company managers in this initiative.
Material Theme
Employee engagement
Begun in 2008 to align leaders
with the Unilever Brazil
2012 strategy (UB2012), the
cultural transformation process
proceeded in 2010. Incorporating
sustainability as an integral part of
our business performance is part of
this change.
sustainability will be addressed in
all internal training programmes in
2011. These actions will be carried
out jointly by the human resources,
internal communication and
sustainability areas, with the target
of engaging 90% of our employees
in this first year.
As part of the Unilever Sustainable
Living Plan, the question of
The engagement plan will be
executed jointly with actions
promoted by the health, safety
and environment area. The
objective is to break down the
barriers to sustainability in the
business areas by integrating the
concept into each employee’s daily
routine. This will enable individual
employees to understand their
role in transforming the company’s
business models and in promoting
sustainability.
39
Peolple
Lower Impact in our Offices
In line with the global targets set forth in the Unilever Sustainable
Living Plan, we implanted a series of initiatives to reduce environmental
impacts in our six offices in São Paulo, where 2,600 employees work.
This involved the adoption of simple measures such as the substitution
of dichroic lamps with more economical LED models, the installation of
taps that turn off automatically and the continuation of selective waste
collection. Employees were encouraged to turn off lights and electronic
equipment not in use and to reuse cardboard boxes. This led to the following gains in 2010 (compared with 2009):
Electricity: 4.5% saving in consumption
Water: 28.46% reduction in consumption
Cardboard boxes: savings of 4,500 boxes
Selective collection: 78 tonnes of waste recycled (from 194 tonnes
collected)
Lixo Legal
To encourage selective waste collection in our offices, we developed
the Lixo Legal programme at our units in the JK1, Rochaverá and
Cenesp buildings in São Paulo. This is aimed at increasing employee
awareness of the importance of sorting discarded materials correctly.
See the results of the programme in the Portal:
www.unileversustentabilidade.com.br
Health, safety and
quality of life
A fundamental aspect of people
management at Unilever is the
development of a culture that
ensures the health and safety of
employees and constantly drives
improvement in their quality of life.
We aim to provide a working
environment which expands
employees’ knowledge and
awareness of these values, making
them an integral part of people’s
lives at work, at home and in society
as a whole.
40
Occupational Safety Programme
We manage occupational safety
(including both manufacturing and
non-manufacturing operations) by
means of the Framework Standard,
Unilever’s proprietary management
system, which is applied globally
and is equivalent to ISO 14001 and
OHSAS 18001 standards.
Complementing this, we have a
behaviour-based safety programme
for our plants and for sales
and point of sale promotional
operations in São Paulo.
The BBS or Behaviour Based Safety
programme is aimed at promoting
a cultural change among
employees, encouraging them to
adopt safer behaviour and to be
accountable for their own safety
and that of their colleagues. The
ultimate objective is to make safety
a value both on and off company
premises. This programme entails
analysis of the organizational
culture, training sessions and the
implantation of safety governance
through committees, among other
measures. In 2011, the programme
will be extended to the entire
Brazilian sales team.
Health in the workplace
Health management indicators
at Unilever are controlled by
an effective health and safety
management system, which
establishes measures to mitigate
potential risks to employee health
as soon as they are identified.
This has led to an ongoing
downward trend in occupational
diseases and lost time accidents.
Based on risk mapping, control
measures are identified and
developed with a view to
ensuring safe operations and
workplaces. We are now investing
in ergonomics, with a focus on
employee comfort.
One challenge is managing
absenteeism caused by illness. We
run health promotion campaigns
and other actions focused on
providing information and
medical assistance to minimize
the seriousness of incidents,
resulting in a downward trend in
absenteeism. The average absence
rate due to illness (excluding
occupational diseases), which takes
into account the number of days
off work, was 0.27 in 2010. This
index, representing the average for
the plants, indicates the number
of days lost during the period
– in other words, for each 100
employees there were 27 days lost
per month. GRI LA7
Accidents with injury –
Total Recordable
Frequency Rate (TRFR)
Employee traffic
accidents without
injuries, expressed in
1 million kilometres
driven (NIFR – Non Injury
Frequency Rate)
Number of accidents
We monitor the number of
accidents via the TRFR or Total
Recordable Frequency Rate, which
consists of the total number of
accidents – except those requiring
first aid – expressed in 1 million
man hours worked. These
indices are a reference for the
establishment of our targets.
2.9
2.3
5.28
1.9
1.6 1.6 1.4
The number of accidents was
reduced in 2010. However; we
did not achieve the performance
indicator due to a reduction in the
number of hours worked.
1.14
0.65
target
0.31
2010
2009
2008
2007
2006
target
2010
2010
2009
2008
2006
2007
0.31
For 2011, we will continue to focus
on behaviour-based safety and our
safety management system.
2010
0.50
Feel Good Program
The Feel Good program, created in
2004, is aligned with our UB2012
strategy and promotes actions
designed to improve quality of life
for employees. The programme
has five components: Feel Fun, Feel
Fresh, Feel Easy, Feel Good Kids,
Feel Free and Feel Alive. The core
objective is to encourage people
to adopt a healthier and more
balanced lifestyle.
The two main focuses of the
programme in 2010 were the Feel
Fresh and Feel Free components.
Feel Fresh encourages employees
to practice physical activities and
look after their bodies. Within
this component, we developed
an initiative aimed at executives
(president, vice presidents and
directors), with consulting for
them to start an individual physical
activity plan aimed at improving
their health and professional
performance. Since it began
in 2009, 52 employees have
participated in this programme,
with 67% reducing their BMI and
52% shedding excess weight.
In addition to the specific activities for
executives, all employees have access
to company subsidized activities such
as: running and walking, shiatsu,
yoga, pilates, dance and nutritional
accompaniment.
At the end of 2010, we relaunched the
Feel Free pillar, broadening its scope
with a strategy to introduce more
flexible ways of working. This policy
includes encouraging remote working
for leadership roles and flexible working
hours for administrative functions.
In 2011, the program will reinforce
focus on performance rather than the
physical presence of employees.
Places in Programme
Places filled in Feel Good programme
2008
2009
2010
95%
96%
80%
Learn more about the programme in the
Portal: www.unileversustentabilidade.com.br
41
Assurance Statement
Assurance Statement
GRI 3.13
For the first time, BSD Consulting has carried out an independent verification
of the process of drafting Unilever Brazil’s 2010 Sustainability Report in
accordance with GRI (Global Reporting Initiative) G3 guidelines. The verification
process is aimed at providing Unilever Brazil stakeholders with an independent
opinion on the quality of the report; the stakeholder engagement processes;
adherence to AA1000AS 2008 principles; and management of sustainability in
the company.
Independence
We work independently and guarantee that no BSD staff maintain consulting
contracts or other commercial ties with Unilever Brazil. BSD Consulting is an
AccountAbility AA1000 Licensed Assurance Provider and is registered under
number 000-33.
Our Competency
BSD Consulting is specialized in sustainability. The work was carried out by a
team of experienced professionals trained in external verification processes.
Unilever Brazil and BSD Responsibilities
The drafting of the Sustainability Report as well as the definition of its content
is the responsibility of Unilever Brazil. The assessment of the report and the
verification of the GRI application level was the objective of the work done
by BSD.
Scope and Boundaries
The scope includes the information in the complete version of the Unilever
Brazil 2010 Sustainability Report for the reporting period. The independent
report verification was carried out according to AA1000 Assurance Standard
2008, type 1, which provides reasonable assurance. The process includes
assessing the organization’s compliance with the three AA1000AS principles:
Completeness, Materiality and Responsiveness.
Methodology
The procedures observed for the verification were:
• Evaluation of the content of the 2010 Sustainability Report;
• Understanding the process of generating information for the Sustainability
Report, taking into account the engagement process and the definition of
materiality;
42
• Participation as an observer in the company’s internal engagement panel;
• Review of information in the general media about the sector and the
company (press, websites and legal frameworks);
• Interviews with key managers and employees on the relevance and
context of the information in the report;
• Whenever pertinent, confirmation of the information on sustainability
performance with the company’s top management; and
• Based on sample testing, confirming information in the Sustainability
Report against reference documentation, internal managerial reports and
government correspondence.
Key Conclusions – AA1000AS Principles
In the opinion of BSD Consulting, Unilever Brazil is structuring its
management of sustainability through the alignment of Unilever Sustainable
Living Plan with the main local demands, established by the evaluation of
material sustainability themes. We underscore the need for the company
to continue to develop internal engagement measures with other company
areas of great relevance for the effective implementation of sustainable
practices, striving particularly to enhance engagement with external
stakeholders and to develop sustainability reporting processes.
Key Conclusions on Adherence to the AA 1000AS 2008 Principles
1. C
ompleteness – addresses stakeholder participation in the
development of a transparent and strategic sustainability
management process.
• A stakeholder engagement process was observed in 2010, in continuation
of the process undertaken in 2009, which was focused on employees,
suppliers and customers. It is necessary to stress the importance of
building an ongoing stakeholder engagement process with the drafting
of a stakeholder map, the definition of clear criteria for prioritising these
stakeholders and ways of engaging them. It is important that this process
should take all of Unilever Brazil’s operating units into account.
43
Assurance Statement
• Engagement by means of the involvement of strategic audiences is
fundamental because the opinions and critical vision of company activities
can help in providing direction for its social and environmental practices,
increasing the transparency and credibility of its communications.
• Supplier management should be enhanced at Unilever Brazil to bring about
greater alignment between the directives and definition of targets under
the Unilever Sustainable Living Plan.
2. M
ateriality – themes required for stakeholders to draw conclusions
about the company’s economic, social and environmental
performance.
• Unilever Brazil’s top management considers sustainability to be
important for the company’s business and is striving to align the Brazilian
subsidiary with global practices through the application of the Global
Sustainability Plan.
• The assessment of Unilever Brazil’s material themes was based on the
results of the internal (panel held with internal audience) and external
(consultation of specialists) stakeholder engagement process, as well as
research into sector studies and sustainability reports, consultation of the
GRI Sector Supplement for foods companies and the Unilever Sustainable
Living Plan. The material themes were defined by the Unilever Brazil
Sustainability Committee, which took into account the results of the
stakeholder evaluation process.
• The global guidelines present a more consolidated view of the main
aspects to be prioritized for the sustainable development of the business,
with approaches and targets that have already been defined. Unilever
Brazil’s materiality evaluation process could integrate these global
guidelines as a means of enhancing and providing direction for local
actions.
• It is recommended that the materiality definition process should include all
Unilever Brazil units and businesses and that specific criteria be established
for evaluation in view of the complexity of the company and its presence
in different business sectors. In these cases, possibly there will be conflicts
between different units or even different business areas. There should be
an internal evaluation that takes into account all aspects that are relevant
for the company as a whole, as well as for its stakeholders.
3. R
esponsiveness – refers to actions that the organization has taken
to meet stakeholders’ specific demands.
• The Unilever Brazil Sustainability Report is one of the means of accounting
for the company’s social and environmental performance. It is important
that the indicators reported be monitored systematically, transforming the
report into a tool for managing sustainability.
44
• The systems that generate data and information for the report could be
improved. It may be observed that this is an ongoing process that should
involve all company areas, given the complexity of the organization and the
diversity of its products, areas and industrial units. We recommend greater
internal alignment as the way forward in enhancing monitoring processes
and compiling the information to be reported.
• Unilever Brazil addresses critical topics and the adverse impacts caused
by its activities. However, it is important that this information should be
analyzed critically and put into context in order to balance the report
content with both the positive and negative material themes in order to
provide greater transparency (i.e.: value chain, social and environmental
risks, social investment policies, etc)
• The company establishes sustainability actions in alignment with the
material themes and the Unilever Sustainable Living Plan. The actions
defined are incorporated into Unilever’s strategic planning (Compass)
and cover all company areas. It is recommended that specific targets be
established for each action, thus enabling continuous monitoring of the
implementation of these actions in coming years and reinforcing the
company’s commitment to managing sustainability.
• Regarding indicator EN27, together with the Environmental and Corporate
Affairs areas we evaluated some of the initiatives underway concerning the
company’s interactions with relevant organizations (governments, sector
associations and NGOs) and the partnerships it establishes to enable the
collection of post-consumption waste. We understand the difficulty in
establishing a reliable indicator at this moment and consider the actions in
progress and the commitments that will be undertaken in the coming years
to be a means of seeking consistent information for compiling and fulfilling
the indicator.
Application Level GRI-G3
According to the GRI-G3 guidelines, BSD declares that Unilever Brazil’s 2010
Sustainability Report has been assigned A+ application level. The report
answers the items related to company profile and provides a description of
sustainability management and approach processes. Information is provided
on all performance indicator categories: Economic, environmental, human
rights, labour practices, society and product responsibility.
São Paulo, May 30th, 2011.
BSD Consulting (Brazil)
45
Reporting process
Reporting Process
GRI 3.1, 3.2, 3.3, 3.5, 3.6, 3.7, 3.11, 3.13
Our fifth annual Sustainability
Report, covering the period
from January 1st to December
31st 2010 is in compliance with
Global Reporting Initiative (GRI),
version G3 guidelines, application
level A+. The publication is
based on information from all
our operations in Brazil. In this
edition, the reporting process was
coordinated by the Sustainability
Committee and the gathering
of data and information was
undertaken by the management
team with representatives from
the sustainability and health,
safety and environment areas. The
survey involves all company areas.
For the first time, the reporting process was verified by a third party. The
assurance statement was elaborated by BSD Consulting. The assurance
process provides an additional guarantee with respect to the information
reported. The verification, based on the non-governmental organization
Accountability’s AA1000AS (Assurance Standard), is Type 1, which
assesses compliance with the principles of: completeness, materiality and
responsiveness.
Also for the first time we responded to some of the indicators in the
newly launched food sector supplement. The new indicators are relevant
in that they incorporate a specific look at this segment’s sustainability
impacts. These will be fully responded in the next reporting cycle, since
it will be necessary for the company to implant a suitable data collection
and monitoring system.
A number of workshops were held to refine data management and
evidence collection for reporting in view of the external verification
process. The results of this training are already perceptible in this
edition. However, the continuity of the process will ensure an effective
improvement in monitoring the indicators in coming years.
To facilitate communication with our stakeholders, the Unilever Brazil
reporting process includes three products: this print version, which
prioritizes the most relevant GRI topics and indicators in accordance with
the materiality matrix; a portal, which will concentrate information on
sustainability and will complement the print version with additional details
and responses to all the GRI indicators (www.unileversustentabilidade.
com.br); and nine supplements presenting the strategies in place and the
advances in sustainability at our diverse plants.
46
Processo de relato
Principles for definition of report content – The definition of
content for the three different products – print version, Portal and plant
supplements – was based on the materiality matrix, which was built
incorporating input from 8 specialists in different areas, Unilever strategy
and Unilever Sustainable Living Plan guidelines.
Composition of materiality matrix axes:
External axis: Sustainability indicator benchmarking study; competitor
and critical themes benchmarking study; Interviews with specialists.
Internal axis: Global strategy (Unilever Sustainable Living Plan); view of
internal stakeholders (materiality test); strategic vision (directors’ test).
The construction of the materiality matrix and the process of mapping
and prioritizing the definition of stakeholders to be engaged were
begun in 2008. Based on this study we initially defined our engagement
priorities as: employees, suppliers and customers.
As a result of the refinement of the methodology, the materiality matrix
was reviewed in 2010 and will be reviewed annually in an ongoing
improvement process to be integrated with a structured, systematic
stakeholder consultation plan.
More details are available about the construction of the matrix and
stakeholder engagement in the chapter on Sustainability Strategy and in our
Sustainability Portal: www.unileversustentabilidade.com.br
47
Reporting process
Unilever materiality matrix
S ustainability criteria for selection, screening
and management of suppliers
Greater Relevance
Improve hygiene habits
Reduce packaging and product disposal waste
ake agricultural product raw material sources
M
100% sustainable
roduct post-consumption impacts (packaging
P
and product disposal waste)
Conscious consumption
Society
evelopment of more nutritious and healthier
D
products
educe GHG emissions throughout product
R
life cycle
Reduce water consumption in agricultural and
manufacturing processes and on part of consumer
Integrate small agricultural producers and
distributors into the supply and distribution chain
Environmental impacts of production processes
roduct labelling (ingredients and nutritional
P
information beyond legal requirements,
environmental impact)
Company
Greater Relevance
Scope
Comment on measurement
techniques, scope, boundaries
– The gathering of information on
Unilever Brazil’s energy consumption
takes different parameters into
account in 2010. Another important
change is the increase in scope.
In 2009, reporting on energy
consumption was based only on
48
Ethical and fair trade criteria
Reverse Logistics (collection of packaging)
information from stationary
sources at the plants. With
the information from the GHG
Emissions Inventory, the company
has now included mobile and
stationary sources at the plants and
the so-called non-manufacturing
areas (distribution, offices and
research and development) in a
single report for the country.
GRI 3.8, 3.9, 3.10
GRI Summary
GRI Summary
GRI 3.12
GRI Application Level
G3 Performance Indicators
and Sector Supplement
Performance Indicators
Not required
Respond to a minimum of
10 Performance Indicators
including at least one
from each of the following
performance areas: social,
economic and environmental.
Respond to all the criteria for
Level C plus:
1.2;
3.9, 3.13;
4.5 to 4.13, 4.16 to 4.17;
Information about
management form for each
indicator category
Respond to a minimum of
20 Performance Indicators
including at least one
in each of the following
performance areas: economic,
environmental, human rights,
labour practices, society,
product responsibility.
B+
A
The same required
for level B
Management form disclosed
for each indicator category
Respond to each essential
G3 Indicator and the
Sector Supplement* with
due consideration for the
materiality principle of one
of the following forms: a)
responding to the indicator
or b) explaining the reason
for omission.
A+
With external verification
Information on G3 form of
management
Respond to items:
1.1;
2.1 to 2.10;
3.1 to 3.8, 3.10 to 3.12;
4.1 to 4.4, 4.14 to 4.15;
B
With external verification
Report Content
G3 Profile
C+
With external verification
C
* Final version of Sector Supplement
GRI G3 Indicators General indicators
Page
Thermometer
1.1. Message from president
4 and 5
Partial
1.2. Impacts, risks and opportunities
4, 5, 8 and Portal
Partial
2.1. Name of organization
8
Responded
2.2. Brands, products and / or services
6
Responded
2.3. Operational structure
7
Responded
2.4. Location of organization’s headquarters
7
Responded
2.5. Countries in which organization operates
6
Responded
2.6. Nature of ownership and legal form
8
Responded
2.7. Markets served
6 and 7
Responded
2.8. Scale of organization
6
Responded
2.9. Changes in reporting year
7
Responded
2.10. Awards and certifications
7 and Portal
Responded
Global Pact
49
GRI Summary
General indicators
Page
Thermometer
3.1. Reporting period
46
Responded
Global Pact
3.2. Previous report
46
Responded
3.3. Reporting cycles
46
Responded
3.4. Contact details
2
Responded
3.5. Definition of content
46
Responded
3.6. Boundary of report
46
Responded
3.7. Scope of report
46
Responded
3.8. Basis for elaboration of report
48
Responded
3.9. Data measurement techniques and bases of calculations
28 and 48
Responded
3.10. Restatement of information
48
Responded
3.11. Significant changes
46
Responded
3.12. GRI summary
49
Responded
3.13. External assurance
42 and 46
Responded
4.1. Governance
8, 12 and 39
Partial
4.2. Indication of whether president of the highest governance
body is also an executive
8
Responded
4.3. Independent members
8
Responded
4.4. Communication channels with board
Portal
Responded
4.5. Remuneration for sustainability
12
Partial
4.6. Conflicts of interest
8
Responded
4.7. Qualifications of members
8
Partial
4.8. Internal values, codes and principles
7
Responded
4.9. Board activities
8
Partial
4.10. Board self-assessment
Portal
Responded
4.11. Precautionary principle.
Portal
Partial
4.12. Charters, principles and initiatives
Portal
Responded
4.13. Memberships of associations
Portal
Responded
4.14. List of stakeholders
14
Responded
4.15. Identification of stakeholders.
14
Partial
4.16. Stakeholder engagement.
14
Partial
4.17. Stakeholder demands.
14, 36 and 37
Partial
Management approach – Economic performance
34 and Portal
Partial
EC1. Direct economic value
Portal
Partial
EC2. Climate change
Portal
Partial
EC3. Pension plan
Portal
Responded
EC4. Subsidies
Portal
Responded
EC5. Ratio internal/local minimum salary
Portal
Responded
EC6. Spending on local suppliers
35 and Portal
Partial
EC7. Local hiring
Portal
Responded
EC8. Infrastructure investments
Portal
Responded
EC9. Indirect economic impacts
31, 36 and Portal
Partial
Management approach – Environmental performance
28, 29, 30, 31 and Portal
Partial
EN1. Materials
Portal
Responded
8
EN2. Recycled materials
Portal
Responded
8 and 9
Economic performance
7
1
6
Environmental performance
50
General indicators
Page
Thermometer
EN3. Direct energy
29 and Portal
Responded
Global Pact
8
EN4. Indirect energy
29 and Portal
Responded
8 and 9
EN5. Energy saved
29
Responded
8
EN6. Eco-efficient products and services
Portal
Responded
EN7. Reduction in energy consumption
Portal
Responded
EN8. Water withdrawal by source
28 and Portal
Responded
8 and 9
EN9. Water sources affected
Portal
Responded
8
EN10. Water recycled and reused
Portal
Responded
8
EN11. Protected areas
Portal
Partial
8
EN12. Impacts on biodiversity
Portal
Partial
8
EN13. Habitats protected or restored
Portal
Partial
EN14. Managing impacts
Portal
Partial
EN15. IUCN Red list
Portal
Responded
EN16. Direct greenhouse gas emissions
30 and Portal
Responded
8
EN17. Indirect greenhouse gas emissions
30 and Portal
Responded
8
EN18. Emissions reduction
Portal
Responded
7, 8 and 9
EN19. Ozone layer
Portal
Responded
8
EN 20. NOx, SOx and other emissions
Portal
Responded
8
EN21. Water discharge
Portal
Responded
8
EN22. Total weight of waste
31 and Portal
Responded
8
EN23. Significant spills
Portal
Responded
8
EN24. Hazardous waste transported
Portal
Responded
EN25. Water bodies and habitats affected
Portal
Partial
EN26. Mitigation of product/service impacts
27 and Portal
Responded
EN27. Products and packaging reclaimed
31
Partial
EN28. Environmental non-compliance
Portal
Responded
8
EN29. Transportation impacts
Portal
Responded
8
EN30. Investments
26
Responded
7, 8 and 9
Management approach – Labour practices
38, 39 and Portal
Partial
Management approach – Labour practices
38 and Portal
Responded
LA1. Work force profile
Portal
Responded
LA2. Employee turnover rate
Portal
Responded
LA3. Benefits
Portal
Responded
LA4. Collective bargaining
Portal
Responded
LA5. Minimum notice period regarding operational changes
Portal
Responded
LA6. Health and safety committees
47
Responded
1, 2 and 3
LA7. Occupational diseases, lost days and fatalities
Portal
Responded
1
LA8. Serious diseases
Portal
Partial
1
LA9. Union agreements
Portal
Responded
1
LA10. Average hours of training per year
Portal
Partial
6
LA11. Ongoing learning
Portal
Responded
LA12. Career development
Portal
Partial
LA13. Diversity
Portal
Partial
7, 8 and 9
8 and 9
Social performance – Labour practices
LA14. Ratio of men’s to women’s salaries
6
1, 2 and 3
1 and 3
1, 2 and 3
51
GRI Summary
General indicators
Page
Social Performance – Human rights
Thermometer
Global Pact
Partial
Management approach – Human rights
34, 39, 40 and Portal
Partial
HR1. Human rights clauses
35 and Portal
Responded
HR2. Suppliers screened
Portal
Responded
HR3. Training
Portal
Partial
HR4. Cases of discrimination
Portal
Responded
1, 2 and 3
HR5. Freedom of association
Portal
Responded
1, 2 and 3
HR6. Child labour
Portal
Responded
1, 2 and 3
HR7. Forced or slave labour
Portal
Responded
1, 2 and 3
HR8. Human rights training
Portal
Partial
HR9. Infringement of indigenous peoples’ rights
Portal
Responded
Management approach – Society
11 and Portal
Responded
SO1. Management of impacts
11
Partial
10
SO2. Analysis of corruption-related risks
Portal
Responded
10
SO3. Anticorruption training
Portal
Responded
10
SO4. Cases of corruption
Portal
Responded
10
10
1, 2, 3 and 4
Social performance – Society
SO5. Public policy and lobbying
11 and 31
Responded
SO6. Contributions to political parties
Portal
Responded
SO7. Anticompetitive practices
Portal
Responded
SO8. Non-compliance
Portal
Responded
Management approach – Responsibility for products
23 and Portal
Partial
PR1. Assessment of impacts
Portal
Responded
PR2. Non-compliance
Portal
Responded
PR3. Product labels
23 and Portal
Partial
PR4. Non-compliance
Portal
Responded
PR5. Customer satisfaction
10 and Portal
Responded
PR6. Adherence to standards
9, 21 and Portal
Responded
PR7. Non-compliance
Portal
Responded
PR8. Complaints
Portal
Responded
PR9. Non-compliance
Portal
Responded
Social performance – Responsibility for products
Sector supplement – Foods and beverages
52
Indicator
Pagand
FP6. P roducts with reduction of saturated and trans fats, sodium
and added sugar as percentage of total sales volumes by
category
22 and Portal
FP7. Products with added nutritional ingredients as percentage of
total sales volumes by category
22 and Portal
Credits
Coordination and execution
Initiative
Sustainability Committee
Sustainability team
Juliana Nunes
Ligia Camargo
Cristiane Lourenço
Julio Erthal
Erica Ikuno
Communication Team
Cecilia Dias
Diogo Ganzella
Milena Haddad
Supply Chain and Safety, Health and
Environment team
Fernando Ferreira
Renan Rocha
Marina Yoko
Adriano Pimenta
Jéssica Custódio
Editorial and content coordination
Report Comunicação
Assurance
BSD Consulting
Translation
Raymond Maddock
Photography
Unilever Library
Marcelo Coelho
Paulo Lima – pages 2 and 19
StockbrokerXtra/LatinStock – page 10
PC Pereira – page 15
Contacts
Telephone: 0800-707-9911
Post Office Box: 3007 – CEP: 06210-970 SP
E-mail: sac@atendimentounilever.com.br
Sustainability: sustentabilidade@unilever.com
2010 Sustainability Report | Unilever Brazil | Small Actions. Big Difference.
www.unileversustentabilidade.com.br
2010 Sustainability Report
Unilever Brazil
Small Actions. Big Difference.