Where There is Home,
There is Unilever
Overview of Unilever 2008-2009 Corporate
Social Responsibility Activities in China
02 I Where There is Home, There is Unilever
Introduction to Unilever China
Unilever's history in China can be traced back 80 years, to when
Lever Brothers established its first operation in Shanghai in 1923
to become the largest soap maker in the Far East. Half a century
later in 1986, Unilever opened a new chapter in its development
as it reestablished itself in China. Unilever has been committed
to developing itself as a sustainable localized multi-national
company since its return to China and has made remarkable
achievements in this respect. From 1986, our involvement in
China includes US$1 billion in investment, the introduction
of many advanced technologies, the creation of over 20,000
job opportunities, the direct hiring of more than 5,000 local
employees, and annual tax payments of more than RMB 1
billion.
Unilever's business in China covers two main areas:
•
Major home and personal care brands including OMO,
COMFORT, ZHONGHUA, LUX, POND'S, CLEAR, DOVE, HAZELINE
and REXONA;
•
Major food brands including LIPTON, KNORR, and WALL'S.
After years of development we have made some of the world's
most familiar brands a daily part of life in China.
To further accomplish our long-term commitment to China,
Unilever initiated a new strategic blueprint for China in 2000,
developing Shanghai into its management and R&D site and
Hefei into its manufacturing site.
Unilever's Hefei manufacturing base for home and personal
care products and tea products started production in 2002. It
has since become one of Unilever's biggest production sites,
exporting products to 14 countries and serving as a de-facto
global supply center.
Following China's accession to the WTO, Unilever established
a global supply management office in Shanghai. This office
provides a greater number of opportunities for Chinese raw
material suppliers to export to Unilever companies around the
world.
Where There is Home, There is Unilever
I 03
Table of Contents
04
Message from the Chairman
05
Overview of Unilever corporate social
responsibility activities
07
19
24
Community development
08
Caring children
14
Sustainable agriculture
16
Disaster aid
17
Culture
18
World Expo-related
Environmental protection
20
Energy saving and discharge reduction
23
Water conservation and protection
Caring for staff
24
26
In 2006, construction of Unilever Greater China's headquarters
was completed in Shanghai's Changning District. The operation
of this facility is shared by Asia and Africa in terms of its
management functions, increasing the global significance
of the Shanghai HQ. In 2009, the Unilever Global Research
building, which is just beside the Greater China headquarters,
went into operation. The new research center covers more
than 30,000 square meters and is the result of nearly US$100
million in investment. Our Shanghai R&D center is focused on
developing and delivering compounds and functional materials
in all categories, taking Chinese innovations and delivering
them to the world. At the same time, the Center is leveraging
rich Chinese herbal medicine resources and Chinese medical
theories to provide research directions for new global products.
Unilever believes that successful localization starts with the
localization of employees; an outstanding local team can better
understand and meet the needs of Chinese consumers. At
"Family Day"
Unilever China award list (2008-2009)
Unilever, 90% managers are recruited and trained locally.
It is Unilever's belief that sustainable development must be
built upon a strong foundation of corporate social responsibility.
As part of this, we have sponsored 20 schools and launched
the "Unilever Hope Star" project in universities, helping 200
underprivileged students pay for their 4-year college tuition.
We have also set up a scholarship at Fudan University to reward
outstanding students. In 2008, Unilever also donated more than
RMB 10 million to areas in Sichuan hit by the 5.12 earthquake.
In July 2008, a visit by Chinese Premier Wen Jiabao to Unilever's
China headquarters was an endorsement of Unilever's
development in China; it was just one of many demonstrations
of our long-term commitment to this country.
Unilever seeks to be a responsible employer, business partner
and corporate citizen, and continues to deliver sustainable
growth in China.
04 I Where There is Home, There is Unilever
Message from the Chairman
Working to create a better future every day
Every day around 160 million people in
150 countries will buy a Unilever brand.
After decades of de velopment in China,
our products can now be found in
hundreds of millions of Chinese homes.
As we like to say in Unilever China,
"Where there is home, there is Unilever".
2009 was a milestone year for Unilever
and for Unilever in China. Unilever's
global vision was updated. We kept our
focus on helping people to feel good,
look good, and get more out of life with
brands and services that are good for
them and good for others. In addition,
we declared an ambitious new target, to
double the size of our company while
reducing our environmental impact.
Unilever is deeply committed to
building a sustainable business in China.
Our business continues to grow well
and we continue to make significant
investments– notably in 2009 in our new
global R&D centre based in Shanghai
adjacent to our China head office.
Along with our efforts to secure
sustainable business success, Unilever
has always been committed to fulfilling
our corporate social responsibilities. We
deeply believe that the long term success
of our business is tightly linked to the
success of the communities in which we
operate as well as on our maintaining
the highest standards of corporate
citizenship.
We want to help Chinese families to
create a better future. We help Chinese
children in poverty–stricken areas by
providing comfortable learning and living
environments. We help care for children
that have been left behind in rural China
as their parents work in far-away cities,
helping those young people feel the
love of their families by creating more
communication opportunities.
Unilever is increasingly embedding
sustainability thinking into our day-to-day
activities; we are dedicated to promoting
sustainable development, and we
continue to make progress on managing
the environmental impacts of our own
business to ensure a more sustainable
future for everyone.
Unilever has a long history of supporting
sustainable agriculture. Around the
world, for example, we have committed
to purchasing our tea from sustainable
sources – a commitment which we
believe will revolutionize the tea industry.
This is equally important in China, where
we have rolled out new methods for
sustainable agricultural development in
the tea-producing region of Huangshan
Mountain. By doing so we are helping
increase the incomes of local tea farmers
and helping these people build better
homes and better futures.
We track carefully our environmental
impact, and I am glad to report that we
have once again made good progress on
reducing our water consumption, waste,
and greenhouse gas emissions.
I would like to thank all members of the
Unilever team and our business partners
for our progress in 2009 in working
across China to build a better society for
everyone!
Much remains to be done, and we are
more committed than ever to ensuring
that as we grow, we do so in a sustainable
way – building strong communities
and preserving our planet's precious
resources.
Alan Jope
Chairman of Unilever Greater China
Where There is Home, There is Unilever
I 05
Overview of Unilever China corporate social
responsibility activities
As a leading company in the FMCG
(Fast Moving Consumer Goods) sector,
Unilever aims to utilize its products and
activities to help the greatest possible
number of people and their families.
Over many years Unilever has adhered
strictly to its responsibilities, all the while
advocating sustainable development.
We seek to support public undertakings
for the benefit of children, education,
environmental protection, and sustainable
agriculture, ultimately ensuring a better
life for more families.
Since 1996, Unilever has built 20 Hope
Schools in some of China's most
disadvantaged regions. We not only
donated funds and property to open
schools for impoverished children, we
also care about the children's daily lives.
In September 2006, we launched our
"Unilever Volunteer Teacher" initiative,
which focuses on broadening the minds
of disadvantaged children through
creative volunteer teaching, allowing
children to enjoy the wonders of the
wider world. Unilever also collaborated
with The All-China Women's Federation
(ACWF) to roll out the "Care for Leftbehind Children" program in 10 provinces
and municipalities, providing care for
families by supporting the "left-behind"
children of migrant workers.
Unilever also cares a great deal about
traditional ethnic minority art in
impoverished areas. In 1998, Unilever
donated RMB 400,000 to build the Xining
Art Hope School. Since 2007, Unilever
has also made annual donations of RMB
100,000 to support the establishment of
the Unilever Qinghai Art Troupe. To date,
the Xining Art Hope School – the only art
primary school in Qinghai Province – has
witnessed impressive development and
has won great attention from the public.
Large numbers of outstanding students
have graduated from Unilever's schools.
To further assist in these areas, we have
also initiated the "Unilever Hope Star"
program, which has since helped over 200
underprivileged students to complete
their four-year university programs.
For a long time, Unilever has emphasized
the link between its many social initiatives
and sustainable development, tailoring
new models of sustainable development
to China's individual circumstances. At
Huangshan Mountain in Anhui Province,
Unilever has been implementing
sustainable agriculture programs
with tea farmers to realize agricultural
standardization and industrialization,
boosting tea farmers' income to ensure
the sustainable development of the
Huangshan tea industry.
Unilever is committed to minimizing its
impact on the environment. As early as
2000 we planted over 2 million trees all
around China through our "Clean Water
and Green Mountain Initiative." This
activity was enthusiastically welcomed
by both consumers and the wider
community.
Furthermore, Unilever rolled out a series
of energy-saving and emissions-reduction
activities. From bio-energy boilers to
material saving programs, from the
launch of the Environmental Packaging
to the introduction of the Green Logistics
project, from Eco-Offices to our Waterrecycling Program, sustainable practices
can be found in all production lines and
offices. At the same time, Unilever has
organized its suppliers and partners to
instill the "sustainable" attitude that will
guarantee a greener world for tomorrow.
06 I Where There is Home, There is Unilever
Community
development
Environmental
protection
Caring
for staff
Unilever China
award list
(2008-2009)
Where There is Home, There is Unilever
Community
development
08 Caring children
14 Sustainable agriculture
16 Disaster aid
17 Culture
18 World Expo-related
I 07
08 I Where There is Home, There is Unilever
Caring children
Sowing the seeds of hope
Overview of Unilever hope schools
The economies of underdeveloped areas in central and western China often struggle to provide
adequate conditions for local education. Due to a shortage of funds, Xinmiao Primary School
in Sichuan's Meishan City had never been able to renovate its premises: the student dormitory
was crowded and rundown and there was a serious lack of sanitation facilities.
On April 14, 2008, the new Unilever Xinmiao Hope School was opened. The company donated
funds to build a 480-square meter student dormitory, renovate the canteen and sports field,
renew equipment in the recreation center and provide improved study and living environments
for students. Unilever also donated 26 computers and helped Xinmiao Primary School build a
computer room with Internet access. Staffs of Unilever's Chengdu Branch also donated RMB
14,000 to buy stationery and recreation and sports appliances for the students. The children
were finally able to bid farewell to their old classrooms and move into a beautiful new campus.
Unilever Xinmiao Hope School is the epitome of Unilever's commitment to Project Hope –
a Chinese public service project initiated by the China Youth Development Foundation and
the Communist Youth League that aims to improve education in poverty-stricken rural areas
of China. Since 1996, Unilever has built 20 hope schools in disadvantaged areas in Qinghai,
Shaanxi, Sichuan, and Anhui provinces.
Opening the window to the world for hope school students
In many underdeveloped and remote regions, children have a thirst for knowledge and are
brimming with curiosity about the outside world; they hope to experience the internet, learn
new things, and join the fast-developing world, just like their urban counterparts.
Unilever hopes to address these aspirations through its actions. As a long-term sponsor of
hope schools, Unilever not only provides hardware facilities to schools in impoverished areas,
it also delivers software to faculties and children. In addition, Unilever maintains close ties with
the schools it sponsors, paying close attention to the growth of the children and constantly
opening windows for them to get a better understanding of the world.
By the end of 2004, Unilever had built a computer room with 21 computers at Yuexi Hope
Where There is Home, There is Unilever
Primary School in Anhui, and had delivered
a large number of books to the students. In
March 2005, Unilever built a computer room
at Datong County Hope Primary School in
Qinghai. During summer vacations, Unilever also
organizes specialized training for teachers at
hope schools.
Unilever has also sought cooperation from the
Cultural and Education Section of the British
Council to invite foreign teachers to the schools,
providing children with an all-new education
experience. The spoken English of these students
and their teachers has improved significantly
with the help of these foreign teachers.
Schools benefiting from Unilever were not only
able to address basic education needs for local
children; they became windows to the world.
Providing new hope for children in
disaster-struck areas
In a small valley in Sichuan's Hongya County
there is a school whose reconstruction was
completely paid for by Unilever staff. What has
become known as "Unilever" Primary School is
one of the three schools rebuilt and renovated
in Hongya, all of which were financed by
RMB 3 million in Unilever donations after the
Wenchuan Earthquake.
The original premises of the Unilever Primary
School were reduced to a dangerous condition
following the earthquake. Thanks to the rapid
post-quake evacuation, there were no human
casualties. However, because the school
was rendered unusable by the earthquake,
children had to continue their schooling under
temporary tents. It was at this state that Unilever
extended a helping hand.
With Unilever's support, staff and students of the
school
started to
rebuild the campus.
After half a year's efforts,
ten brand-new classrooms
and a spacious playing field were
completed. Nine classes comprising
370 students have finally returned to
school and are able to sit in bright and
spacious classrooms to continue their
study.
Unilever aims to be a family for every child in
need. Following the 5.12 Wenchuan Earthquake,
Unilever and its staff made over RMB 12 million
in donations, of which about RMB 9.4 million
was deployed for school reconstruction. The
senior management of Unilever China flew to
sites in Sichuan several times to visit quakestruck schools, urging construction to proceed
with the utmost urgency. To date, 13 schools in
eight districts and counties including Hongya,
Meishan, Renshou, Pengshan, and Qingshen
have received fund donations from Unilever. In
Sichuan alone, over 4,000 children were given
the opportunity to go back school. In total,
more than 6,000 students from China's disasterstruck provinces have benefited from Unilever's
donation.
Looking forward, Unilever will continue its
school donations, providing more classroom
opportunities for impoverished children and
helping these young people work towards their
future dreams.
I 09
10 I Where There is Home, There is Unilever
Supporting education
to make dreams come true
"Unilever Volunteer Teacher" initiative
had to trek across miles of mountain
paths every morning just to attend
school. Because of inadequate funding,
she heard, the students even had to
clean the school by themselves.
To prepare for this volunteer teacher's
trip, Ineke had taken part in Unilever's
volunteer training scheme. She and
her Chinese colleagues had carefully
prepared simple English courses
tailored to kids in the mountains.
As the morning sun came up on
Renshou, a county in Sichuan's
Meishan region, the rooms in the
Unilever Gufoxiang Primary School
were especially bright. Looking at the
sunlit classrooms, Ineke Verhangen, a
volunteer from Holland, thought about
her past week.
After a long journey just seven days ago,
Ineke and other Unilever volunteers
arrived at the primary school. Despite
being weary from the trip, as soon as
she stepped into the school, Ineke
felt her fatigue dissolve in the vibrant
campus atmosphere. The children were
waiting in perfect lines on the playing
field, waving fervently at the volunteers.
At first, the children were a little shy
with the strangers, but before long, the
charm of the volunteers was enough to
overcome any unfamiliarity.
For children of mountain areas, meeting
foreigners like Ineke was a completely
new experience. Pairs of curious eyes
swept all over Ineke, and some kids
even tried to say an English "hello" to
this foreign stranger.
That day, Ineke stayed at the faculty
dormitory of Unilever Primary School.
From chats with staff, she soon realized
that the children led tough lives. Many
They started with "Good morning, my
name is Xiaoming." After several classes,
they were able to use simple English to
talk with Ineke. Although they struggled
with pronunciation, Ineke was deeply
moved by the zeal and focus of the
children.
A week later, Ineke's experience had
come to an end.
Recalling the smiles of the children,
Ineke hoped that more education
initiatives like this would help to give
hope to more children in China.
Starting from September 2006, Unilever
organizes two Volunteer Teacher project
Where There is Home, There is Unilever
I 11
tours every year, giving volunteered
employees a week to Unilever schools
with normal salary paid. All volunteers
must take professional teacher training
before their departure. To date,
Unilever Volunteer Teacher initiative
has completed six rounds of activities.
Over 60 Chinese and foreign staff
members have spent time at remote,
impoverished areas in Sichuan, Anhui,
and Qinghai, teaching classes and
enriching the classes of children in
these remote areas.
Creating a global stage for children
Unilever International Schools Art Project
On April 2, 2009, the Unilever International
Schools Art Contest 2008/2009 award
ceremony was held at Tate Modern in
London. "Space and Position" was the theme
of the contest.
Zhang Xidan, a six-year-old student from
Qinghai Unilever Art Hope Primary School,
represented China at the award ceremony.
Her award-winning work "Flying Carpet Takes
Me on a Journey" used paper cutting and an
arrangement of used phone cards to create
a magical flying carpet scene. The work
showcased the author's wish to go hand-inhand and heart-with-heart with kids around
the world through online communication.
The piece was displayed at Tate Modern for
one month along with other award-winning
works. At the same time, budding artists
from 15 countries published their works on
the internet for the world to see.
Unilever International Schools Art Project
is an art education program co-sponsored
by Unilever Company and Tate Modern. Its
mission is to encourage kids from around
the world to create pictures and sculptures
according to each year's predefined theme.
Unilever has contributed GBP 1.25 million
since 2001 to sponsor the Tate Modern's
work displaying the modern art of children
from around the world. Since the first Tate
contest in 2001, over 135,000 children from
46 countries have taken part in the events.
Unilever International Schools Art Project
provides a platform upon which children
can see the cultures of different countries
and interact with the world. Unilever will
continue providing children with such
opportunities to showcase themselves
and enable the exchange of ideas and art
among children from different cultures and
environments.
12 I Where There is Home, There is Unilever
Growing under the same sky
Caring for "left-behind" children of rural migrant workers
New Year's Day 2010 was just around the corner, and Zhu Xinxin was sitting in the computer room talking with her parents. They
were thousands of miles away, but could see their daughter clearly through online video. The family's internet reunion was part of
the "Care for Children" program for "left-behind" children of rural migrant workers – an initiative jointly developed by the National
Care for Children Committee of the All-China Women's Federation and Unilever China.
Zhu Xinxin is a middle school student at Linhuaigang Central School in Anhui's Liu'an City. Her parents are currently working in
Guangzhou, and they only return home during holidays such as Spring Festival. Xinxin stays at boarding school and returns home
during vacations to live with her grandparents. Although Xinxin has made many good friends at school, she misses her parents and
lacks the woman-to-woman talks that most girls have with their mothers as they grow up.
According to the statistics from the All-China Women Federation, China currently has 58 million "left-behind" children like Zhu Xinxin,
representing 30% of the total rural child population. About 40 million of these children are below the age of 14. There were 62
students in Zhu Xinxin's class, 42 of them lived apart from their parents.
With the view to building "bridges of reunion" between left-behind children and their parents, the National Care for Children
Committee and Unilever China jointly initiated "Grow healthily under the same sky" in 2009. 42 left-behind children in Xinxin's class
took part in the program.
By giving out "caring" cards to rural families with left-behind children, launching education and guidance services for rural families
Where There is Home, There is Unilever
with left-behind children, and holding
various events, the program built a
platform for tightened ties between
parents and left-behind children and
delivered care and love.
To strengthen ties within the family,
the program also made a "Five Ones"
proposal, recommending that parents
make at least one phone call to the
child per week; mail at least one letter
to the child per month; buy at least one
book for the child per quarter; send one
present on Children's Day, Mother's Day,
the child's birthday, before and after midterm and final exam, and other special
holidays; and return home at least one
time per year.
In 2009, the program for left-behind
children covered ten provinces of
Sichuan, Jiangxi, Guangxi, Hubei, Guizhou,
Jiangsu, Guangdong, Hunan, Anhui, and
Henan, and five cities of Beijing, Tianjin,
Guangzhou, Wuhan, and Hefei. With such
a wide coverage, the program directly
benefited 600,000 rural families.
In addition, focusing on the provinces
of Jiangxi and Anhui, the National Care
for Children Committee and Unilever
China launched a pilot for the "Unilever
Rainbow Home" program.
Zhu Xinxin is one of the beneficiaries of
this program. Through arrangements like
"Rainbow Class", Zhu Xinxin learned to
face life and study with a positive attitude
and learned to communicate more with
teachers and friends in times of trouble.
In addition, since completion of the
school's computer lab, Xinxin has been
able to regularly meet with her parents
using "Rainbow Video".
"Today, my
classmates
understand more
about their moms
and dads who have left their
hometown. We understand that
they took jobs far away just to make our
lives better. We are very excited at the
opportunity to meet our parents through
computers, and hope that our moms and
dads can live safe and peaceful lives in
other cities."
Zhu Xinxin's words are representative
of feelings common among all leftbehind children. Through training from
family education experts working for the
"Rainbow Hotline", their parents gained
deeper insight into the importance of
talking with their children and have
started to pay more attention to their
kids' lives and study. Today, although
the family is separated by distance, their
hearts are as close as ever.
With end-of-year exams just round
the corner, Xinxin studies harder each
day. "Rainbow Garden", a specialized
demonstration wall, shows records of her
progress. In this "Garden", she can delight
her parents with her outstanding scores
and make the people who care for her
feel proud.
"Although my parents are not around,
I still feel happy. I not only feel the love
from my parents, I also receive a lot of
from the ‘Rainbow Mom' volunteers.
New Year's Day is approaching, and I
can write dad and mom letters through
‘Rainbow Mailbox'. I hope they can
return home early for the Spring Festival
reunion."
Care and love from all members of society
I 13
bring sunshine
to Zhu Xinxin's
life. She expects
to be like those
volunteer adults
when she grows up,
providing care and love
to more people and more
families.
Unilever staff has always been
concerned for these children.
Before New Year's Day, each child in the
"Unilever Home of Left-Behind Children"
at Xinmiao Hope Primary School in
Hongya received a small present from
Unilever staff. To bring happiness to these
children, Unilever sent over 1,000 gifts
from Shanghai to Unilever schools in the
provinces supplying the largest migrant
workforce – Anhui and Sichuan, helping
these left-behind children grow healthily
and happily.
14 I Where There is Home, There is Unilever
Sustainable agriculture
Exploring sustainable
development in Huangshan area
Supporting Huangshan area's sustainable agriculture development
One of Chinese government's top priorities is to solve the problems faced by Agriculture, Rural
Areas, and Farmers. Agriculture is a fundamental issue underlying the nation's economic and
social development. A core part of this involves increasing the incomes of farmers. To achieve
this, Unilever focused on Huangshan, discovering a set of proven models to raise farmers'
incomes and promote sustainable agriculture.
Huangshan Mountain is known to the world for its impressive natural scenery. The region
features a mild climate, plenty of precipitation, and deep, soft, fertile soil – factors that make
the region excellently suited to tea tree cultivation. This ecological environment has made
the region a famous tea-planting area since the Ming Dynasty and has contributed to the
reputation of Huangshan tea.
Tea farmers in this area continue the tea planting, tea leaf collecting, tea making, and tea selling
practices of their ancestors. However, traditional tea consumption habits fail to fully leverage
the advantages of Huangshan. Traditionally, Chinese people prefer to drink tea produced in
spring time. Therefore, tea leaves produced at other times have to be sold at huge discount. To
sustain their incomes, most tea farmers travel out of town for extra income rather than staying
home for tea-leaf collection and tea production during the summer and autumn periods.
According to Achun Zhu, head of Huangshan Maofeng (Group) Co., Ltd., a supplier of Unilever,
"Tea production in the past was limited to premium tea (tea produced during the spring). For
this, there is a production period of only around one month – starting from early April and
ending before the beginning of summer."
The price of summer tea is less than one-tenth of the price of spring tea. However, summer
tea contains more of tea's natural nutrients, such as polyphenol and theoflavin. Summer and
autumn tea leaves, therefore, are high-quality raw material to Unilever's tea brands, such as
Lipton.
Where There is Home, There is Unilever
To boost the income of farmers and to
acquire premium raw materials, Unilever
came up with an innovative solution: For
the best-tasting, best-looking spring tea
from pilot tea farms, Unilever encourages
farmers to sell directly to TESCO as
premium tea, reducing markup through
intermediaries and increasing tea farmers'
income.
However, summer tea is acquired
by Lipton to make Lipton green tea;
autumn tea, which is of inferior taste and
appearance, would be used by Unilever
suppliers for further processing to be
made into tea powder and tea leaf extracts
that can be used in Unilever's products. By
doing so, Unilever is fully leveraging the
value of tea leaves and extending the tea
supply chain. The income of tea farmers
increased significantly because summer
and autumn teas, which were dirt cheap
in the past, can now be sold for a better
price.
Unilever started its sustainable agriculture
project at Huangshan Mountain in
2006, merging agriculture into the
modern supply chain to drive the
modernization of agricultural production.
With the encouragement of Unilever,
between autumn 2006 and spring 2007,
Huangshan Tiancui Biotech Co., Ltd.
built the Tianhua tea processing plant
at Wangwangling Village of Huangshan.
At the same time, Wangwangling
Village Committee set up a "tea farmer
production Co-operative". Tea farmers
joining the cooperative sell summer and
autumn tea and preliminarily-processed
products to Tianhua tea processing
plant. The plant then processes the
inputs according to international foodprocessing standards. Unilever provides
funding to both the Co-operative and
the processing plant, and tea from
Huangshan Wangwangling Village can
take full advantage of Unilever's marketing
channels, easily making its way to other
markets and even being sold overseas.
Meanwhile, Unilever provides modern
technical support for tea farms, and
the cooperative provides unified
management of member tea farms.
Through the tea farmer cooperative
I 15
agriculture production model, modern
mechanical production devices and
technologies were extended, changing
the traditional model of "mom-and-pa"
tea production, improving tea quality
and output, and increasing tea farmer
incomes.
With the help of Unilever, the local
summer and autumn tea found lucrative
distribution channels. Tea farmers
started to use machines for summer and
autumn tea collection and production.
In addition, Unilever dispatched the
company's agriculture expert, directing
farmers in the best planting methods. To
boost the long-term development of tea
production areas, Unilever also increased
its funding to support the construction
of school in those areas. The school are
primary school during day time and are
turned into farmers' night school in the
evenings, providing a venue for training
programs to cooperative members.
The Department of Economics of the
Development Research Center of the
State Council joined the School of Social
Development and Public Policy of Fudan
University to conduct specific research
on Unilever's sustainable agriculture
programs, and found that farmers' income
increased by 80% in four villages engaging
in the Unilever sustainable agriculture
programs within just one year.
"We received many benefits from this
Unilever program," said Achun Zhu.
"First, Unilever's annual procurement
plan ensures tea sales volume; and
second, Unilever brought in a series of
advanced tea plantation, management,
and processing technologies, promoting
industrialized tea production at
Huangshan Mountain."
"However, the biggest benefit for tea
farmers is the extended tea supply chain.
Today, tea production season can be
stretched from one month to nearly
six months. Tea farmer incomes are
significantly boosted," added Mr. Zhu.
In addition to making the most of summer
and autumn tea, Unilever explored
ways to help tea farmers find greater
distribution channels for premium spring
tea. In 2009, Unilever (China) Limited,
Tesco (China) Limited, and Huangshan
Municipal People's Government entered
into agreement to jointly promote the
use of Huangshan City's environment
and to encourage the development of
sustainable agriculture. The three parties
will jointly build a production, processing,
and supply base for tea and other
environmentally-friendly agricultural
products, and promote the further
processing and industrialized operation
of agriculture products. Spring tea and
other organic tea products of tea farmers
are shelved at Tesco's points of sale after
handling at processing plants. Tea farmers,
therefore, now receive greater benefits in
the absence of middlemen.
"As an international company, we have a
long-term commitment to this country
and hope to build a sustainable business
model in China," said Mr. Zeng Xiwen,
Vice President of Unilever Greater China.
"This goal drives all of our efforts as we
work with our partners in procurement,
processing, and sales."
"Cooperation with Tesco is one example
of this. On one hand, it pushes forward the
use of sustainable agricultural resources;
on the other, with our help local farmers
can make more money without the need
to go out of town. We help them lead
happier lives, creating happier families,"
concluding Mr. Zeng.
16 I Where There is Home, There is Unilever
Extending a helping hand
Earthquake relief
Disaster aid
On the night of May 14, 2008, three large trucks fully loaded with instant noodles, mineral water,
electric torches, and other disaster aid arrived in the quake-struck areas of Deyang, Mianyang
and Dujiangyan. This urgently-needed aid was a helping hand from Unilever; the goods
brought with them the care and love of every Unilever family member.
Upon hearing about the earthquake news in Sichuan, Unilever took the immediate action of
contacting Xinmiao Hope Primary School at Meishan, a school that had received sponsorship
from the company, to check on the plight of its young students.
Unilever then wasted no time in contacting Meishan Municipal Government. Upon learning
casualties had been transported to Meishan City for treatment, Unilever immediately offered
assistance to the local government's rescue efforts.
At the same time there was an outpouring of individual support from Unilever staff; partly
encouraged by Unilever's sense of responsibility, every Unilever family member did his or her
bit to donate what they could to the disaster area.
It is Unilever's belief that as long as we are united, we can overcome any difficulty. Following
the first shipment of disaster aid to the quake-hit area, Unilever made an announcement on
May 16 that it would provide RMB 10 million in disaster relief to Sichuan Charity Federation; this
included a USD 1 million cash donation from Unilever Global. To date, Unilever and its staff have
donated about RMB 12 million to the disaster-struck areas of Sichuan.
In addition to donations by Unilever and the provision of aid to injured military soldiers,
disaster-struck people, and casualties immediately after the earthquake, Unilever is actively
involved in post-quake reconstruction, especially in rebuilding schools that were affected by
the disaster. Over 6,000 students at 13 local schools in eight districts and counties of Hongya,
Meishan, Renshou, Pengshan County, and Qingshen County in Sichuan benefited from Unilever
donations.
Up to day, all the above school's rebuilding works have been finished.
Where There is Home, There is Unilever
Carrying on a cultural legacy
The Qiang embroidery support plan
The area inhabited by people of China's Qiang ethnicity was worst hit by the 2008 Wenchuan
earthquake. In addition to property damage, local cultural heritage was also seriously
threatened; there was an immediate need for measures to protect the Qiang cultural legacy.
Qiang embroidery is intimately related to Qiang daily life, and is considered to be these people's
best dialogue with the rest of the world. Its pattern, color and knitting methodology, as well
as its broad application in everyday life, make it an important part of China's cultural heritage.
Since Qiang culture exists through such vehicles, support for Qiang embroidery has become
the key to rescuing Qiang culture.
Pond's, a skin care brand under Unilever, along with One Foundation's Qiang Embroidery
Support Plan, launched "the Inheritance and Love" initiative. Instead of simply providing
donations, this program is an opportunity for Qiang women to support themselves by
providing new markets for their needlework. As well as raising the incomes of Qiang women,
the initiative provides an opportunity through which these women became aware of their
value and, therefore, are able to strengthen their expectations of life.
"By adding a few more flowers to this piece of embroidery, I will be able to earn the money for
a new winter quilt for the old folks at home!" Li Zhu, a 25-year-old Qiang embroiderer, spared a
minute to explain her wish: to use the money she was earning from embroidery to help ensure
a more comfortable life for her parents.
"The Inheritance and Love" initiative helped her fulfill this simple wish. To date, Unilever has
ordered 70,000 pieces of embroidery from female Qiang embroiderers. To promote Qiang
embroidery, Unilever has also invited famous designers to combine the Qiang craftwork with
modern fashion elements to produce limited-edition versions of handmade Qiang embroidered
bags.
On November 21, 2009, at one of the promotion events for "the Inheritance and Love", the
exquisite patterns and lively colors of Qiang ethnic styles were presented to the world. Two
Qiang embroiderers traveled thousands of miles from Wenchuan to the site, displaying Qiang
embroidery skills – techniques that had been perfected over several thousand years. Many
consumers were impressed. They bought Pond's limited-edition handmade Qiang bags along
with Pond's products and their love.
"When I have more money I will buy a motorcycle to deliver embroidery made in my village
to areas outside the mountains," said Lahui Chen, a 40-year-old embroiderer. Thanks to this
initiative, she is full of hope for the future.
Culture
By adding a few
more flowers to this
piece of embroidery, I will
be able to earn the money for
a new winter quilt for the old
folks at home!
Li Zhu, a 25-year-old
Qiang embroiderer
I 17
18 I Where There is Home, There is Unilever
World Expo-related
Our small actions bring
you a cool world
Supporting Expo construct workers with our love
Since first being held in London in 1851, the
World Expo, an international event with everincreasing influence and quality, has earned
a reputation as the "Olympics of economy,
science, technology and culture".
In 2010, the World Expo will come to
Shanghai. And this, just like the sporting
Olympics, will be another grand event for
China. To that end, the construction of the
Expo Garden is especially important.
In the summer of 2009, construction at
the Expo Garden area was especially busy;
construction workers were working hard
amid soaring temperatures. To express their
appreciation and support for these hard
workers, Unilever China and the Oriental
Morning Post World Expo Daily sent 80,000
Wall's ice-creams, worth a total of RMB
200,000, to the World Expo "frontline"
construction workers. This gift brought cool
respite to some of the Expo's "backstage
heroes" as they toiled under the hot summer
sun.
These icecreams
were just one
expression of the
company's best wishes for
the Expo in Shanghai. In
addition to delivering icecream to the construction sites,
Unilever takes an active
role in, and provides
support for, all areas
of World Expo. In
2010, Unilever plans
to launch more events
related to the World Expo in
Shanghai, welcoming the
presence of this
great event with
open arms.
Where There is Home, There is Unilever
Environmental
protection
20 Energy saving and discharge reduction
23 Water conservation and protection
I 19
20 I Where There is Home, There is Unilever
Energy saving and
discharge reduction
Working as one
to save energy today
We are making progress
As a responsible corporate citizen,
Unilever has long been concerned with
environmental protection and has been
carrying forward its environmental
philosophy from product R&D to social
welfare. To realize the highest possible
levels of energy saving and emissions
reduction, Unilever has rolled out multiple
environmental programs.
Unilever adopts a material-saving program
as part of its production. It installed a new
set of wash systems during production
switches. The system is capable of forcing
out materials resting in pipes, allowing
easier washing and recycling of the flushedout materials. The system can both reduce
water consumption during washing and
save on production material. After launching
the program, Unilever saved over 600 kg of
materials and 20 tons of water every time.
In the area of logistics, Unilever collaborated
with Coca-Cola over its Green Logistics
program. When beverages from Coca-Cola
are shipped from Nanjing to Hefei, the trucks
do not return empty to Nanjing; instead,
they are loaded with Unilever products.
Similarly, Unilever trucks traveling from
Hefei to Nanjing carry Coca-Cola products
during their return trips. To that effect, the
both parties not only save shipping costs,
they also save resources. Since the success
of the test, the logistics department actively
communicates with client and launched
Green Logistics Program with Wal-Mart.
Now more similar communication is carried
on. This program has great potential of
development and opportunities. Our aims
are to play emphasis on environment, on
sustainable development and win together.
In response to energy-saving and climate
changing, Unilever launched the EcoOffice program. As part of this, staffs were
called upon to become responsible citizens,
starting by changing their lifestyles and
their daily office practices to minimize their
impacts on environment.
Unilever China employees have started to
take green shuttle buses to travel to and
from the workplace thus became the first
passengers of green buses in China. As
a corporate of high social responsibility,
Unilever is the first company to choose ecofriendly vehicles in Shanghai. The bi-electric
hybrid pure electricity driven vehicle is a
new kind of "electricity for oil" transportation
tool, which can replace those carbon heavy
vehicles driven by gasoline or diesel. It can
achieve the goal of zero pollution, zero
noise, energy saving and air freshening.
The technology has successfully passed
the test of the State Quality Supervision
and Inspection Centre for Motor Vehicles.
Each green bus costs about 2.5 million RMB,
having a service life of eight years. It can
continuously run for 300 kilo meters after
being charged for three hours. The highest
speed per hour reaches 80 kilo meters. The
buses can go from zero to 30km/h in 9.69
seconds. It is expected that in the near
future, all Unilever staff shuttle bus routes
will use these new environment-friendly
vehicles.
Where There is Home, There is Unilever
I 21
Turning waste into treasure
The straw bio-fuels program
Harvest is moment that farmers counting
the days. However, during harvests, huge
piles of straw and other farming refuse
can endanger the environment, and even
endanger people's lives.
It's estimated that every year China
produces more than 700 million tons of
agricultural straws, which is rarely reused.
In major agricultural provinces like
Anhui, peasants have to burn the straws
to deal with the waste, which leads to
energy waste, air pollution, and even fire
accident.
Ecological construction is one of
China's most important guiding
principles. Burning straws is not only
environmentally unfriendly, but even
dangerous. We should try every means
to solve this problem. Synthetically using
agriculture straws can reduce the waste
of resource and change the waste to
treasure, which is in accordance with
requirement of ecological development.
On June 22, 2009, Mr. Jiang Hong, Vice
Mayor of Hefei City, and Mr. Zeng Xiwen,
Vice President of Unilever Greater China,
jointly announced Unilever China started
using straw materials instead of natural
gas in the laundry detergent production.
.Unilever's S.H.E (Safety, Health, and
Environment) division is in charge of
this initiative. As the result of a 2-year
and an 8 million dollar R&D project, the
technology that returns farm straw to
fuels for washing powders saddled up
gradually.
Unilever China biomass fuel project
uses the straw logs from corn stalks,
peanut shells, rape straws and other
agricultural waste, and burns them
completely to generate heating air for
washing powder blower. No solid waste
will be left as the ashes can be further
manufactured to make construction
materials. And no waste water will be
generated in the whole process, for the
cooling water is clean and circulated
in the system. Unilever China is the
first ever to use straw power to fuel its
washing powder production in the whole
world. This also marks the revolutionary
step for the energy using in detergent
powder industry. When its biomass
fuel investment in Hefei Manufacturing
Base was put to use, it would consume
20 to 25 thousand tons of agricultural
straws within the first year, reduce the
emission of 15 thousand tons of carbon
dioxide every year. At the same time, the
company saves its cost in energy, and
helps peasants increase their income.
On November 10, 2009, Unilever's Hefei
Manufacturing Base received over 300
visitors from National Development
and Reform Commission (the NDRC).
They visited Unilever's straw bio-fuels
boiler and discussed plans for mass-scale
development of straw resources.
China is not alone in facing the issue
of waste straw; Unilever Sri Lanka and
Unilever India have also learned lessons
from China and are preparing to import
equipment and technology for their
washing powder production. Plants in Sri
Lanka expect to make reductions of more
than 3,000 tons of carbon dioxide; due
to the high sugar content of sugarcane,
potential benefits in India are expected to
be even higher.
Unilever's straw biofuel-based process has
provided solutions to the longstanding
issue of agricultural refuse. As the
leader in this sector, Unilever hopes to
use such initiatives to set and develop
new standards for recycling in washing
powder production and relevant sectors.
Unilever believes that constant efforts
in the sector are certain to blow fresh air
and blue sky back through efforts of the
whole industry.
22 I Where There is Home, There is Unilever
Environmental breakthroughs with
sustainable packaging
Unilever boasts plastic-use reduction in product packaging
According to Unilever's "packaging reduction"
statistics, waste packaging currently represents
15% - 20% of urban domestic refuse in China.
To minimize the burden of waste packaging
on the environment, and to give consumers
environmental choices when shopping, Unilever
China has made an important breakthrough in
product packaging. Hazeline shampoo, now
available in plastic-reducing packaging, has
been welcomed by consumers since it first
went on sale at Wal-Mart. As recognition for its
contribution to the environment, this packaging
solution won the gold award in Wal-Mart's 2009
"Eco-Packaging Competition".
Compared with traditional packaging, Unilever's
plastic-reducing package has no snap cap and
comes in bags instead of bottles. These bags,
therefore, significantly reduce the use of plastic.
With a Hazeline 600ml bag, for example, 49%
less plastic is used compared with a Hazeline
400ml bottle. What's more, customers can refill
used bottles with these bags. Also, the product
retail price is lower due to lower material cost. In
addition, product's packaging is clearly printed
with some environmental tips.
Unilever has applied this "lean" philosophy
to all of its brands. By improving production
technology, and without reducing capacity or
product quality, Lux 400ml body lotion uses 11%
less plastic; OMO washing powder uses 33% less
outer plastic coating for 1.1 kg and 1.8 kg bags;
packaging is now thinner for all toothpaste
products under the Zhonghua brand, a 12%
reduction in packaging materials; and finally,
reclaimed paper pulp is used to replace all paper
materials for Lipton tea, reducing the number of
trees being felled in forests.
Cutting down on unnecessary packaging can
save raw materials and energy, and can reduce
energy consumption during shipping. Unilever
committed in carrying on environmental
projects during the past 10 years and furthest
reducing the package waste.
Unilever seeks cooperation in environmental
protection from upstream and downstream
suppliers and clients as a way of promoting
sustainable development. During "Earth Month",
Unilever leveraged in-store and consumer
education activities with Wal-Mart to propose
eight easy habits that consumers can pick up
to protect the environment and save resources.
These easy habits include cutting down on
the use of disposable chopsticks, stopping
the purchase of commodities with excessive
packaging, using environmentally-friendly
shopping bags, and installing water-conserving
faucets.
Where There is Home, There is Unilever
I 23
Protecting the origin of life
Unilever's water saving initiative
Optimizing production switching
Unilever produces many categories of products.
Even within the same category, products have
different smells and colors. Switching takes place
when production facilities are reconfigured to
produce a different product. When this happens,
equipment must be washed to remove residue
left by the preceding product.
To save water, Unilever optimized its production
schedule and tightened control. The production
department and marketing department jointly
define the minimum order size, a threshold
above which production is permitted to
commence. Products of the same smell and
specification were then grouped together,
and for products with frequent production
and difficult washing processes, specialized
pipes were installed to reduce wash frequency.
Less switch frequency means significantly less
discharge of waste fluid. In addition, Unilever
adopted quantitative statistical analysis at
key points of water consumption along its
production line. Through efforts like these, water
consumption per ton of products in 2009 was
reduced from 1.22 tons to 1.04 tons.
Expanding wastewater treatment plants
and boosting treatment capacity
In May 2008, the company made three
investments in wastewater treatment plants,
spending RMB 14.50 million on fixed assets alone.
The treatment capacity of thee plants has now
reached 1,300 tons per day, fully addressing the
company's water treatment needs. The quality
of treated sewage continues to meet the State's
first-grade discharge standards, far exceeding
third-grade discharge requirements under
GB8979-1996 "General Discharge Standards
for Sewage", as promulgated by China's
environmental
protection authority.
To guarantee the bestquality routine management,
the company not only hires inhouse environmental staff for
daily monitoring, it cooperates
with environmental administrative
authorities to carry out regulatory
and inspection activities. The sets
of COD and pH equipment are installed at
the company's sewage discharge and the
online monitoring systems are connected to
the environmental authority to ensure 24/7
monitoring by the government, fully achieving
transparent management for corporate waste
fluid discharge.
As an illustration of the treated sewage quality,
Unilever staff at the plant raised goldfish in the
treated water. After a year's observation, it was
found that goldfish grew healthily in treated
sewage.
Recycling treated reclaimed water
To reduce discharge, Unilever has invested
heavily in reclaimed water recycling. Today,
Unilever's plant replaces fresh tap water with
reclaimed water for chemical mixtures and
solutions, anti-foam spray, and ground cleaning.
The plant's greenbelts are also irrigated with
reclaimed water.
Each day, Unilever's Hefei plant recycles about
550 tons of reclaimed water, equivalent to
200,000 tons of tap-water savings each year. This
also results in an annual reduction of 200,000
tons in wastewater discharge and savings of
RMB 470,000.
Unilever has also formulated a COD reduction
scheme (COD: Chemical Oxygen Demand) for
carbon-dioxide emissions per ton of products.
Since its launch, CO2 emissions per ton of
finished product have been cut from 0.25 kg in
2007 to a remarkable 0.05 kg today.
Conserving water in other ways
Meters are installed at each point of water usage
to gauge water consumption.
The semi-clean water from the final washing of
reactors is collected to mop and rinse floors.
A system is installed to recycle water for vacuum
pumping, and a water recycling tower is used to
collect and recycle pump cooling water.
Water conservation
and protection
Water shortage, an issue that has
received global attention, is especially
serious in China. As a company
closely related to water resources in
the production and supply chain,
Unilever faces great challenges in
balancing the need to both provide
more products to consumers and
minimize water wastage. It is for this
reason that Unilever is fully committed to
increasing water resource utilization at all stages
of production. Unilever Plant in Hefei will be a
sample to illustrate its efforts in water saving.
24 I Where There is Home, There is Unilever
Caring for Staff
Sharing the warmth of one big
Unilever family
Unilever's Family Day
As the sun shone through the mild breeze one
Saturday morning, Unilever China's assistant
PR manager Sun Yan and her parents arrived
early at Unilever's headquarters in Shanghai.
Sun Yan was relaxed, thankful that today she
was not at the office for overtime; today was
Family Day. In 2007, Unilever opened its own
new office building in Shanghai as Unilever
Greater China headquarters and its style and
facilities were favorited by staffs. To let staff
family members experience the company's
products and corporate culture, Unilever
China sponsored the first Family Day on
December 8, 2007. Since then, Family Day has
become one of the most important days in
the Unilever family calendar.
After entering the building's town hall, which
had been carefully decorated by Unilever
staff, Sun Yan's family signed their names on
the message board and had a photo taken
together. Having done this, Sun Yan and her
family began their Family Day experience.
Skin-care, dental and hair-styling advice,
cooking classes and all kinds of parent-child
games, electronic games and sports games
were available in different sections of the
building. Family members were excited and
on the scoop by the games and gifts. Children
gathered for group pictures in front of Pigsy
and Monkey King from China's famous novel
"A Journey to the West"; in the table tennis
room, Sun Yan's father, who could not wait
to show off his skills, played a few rounds
with his daughter. The outdoor activities
were more exciting still, with dozens of
families signing up to what turned out to be a
hilarious three-legged race.
Naturally, Unilever laid out delicious food for
the families, many of whom ate outside as
children dashed around on the grass. In the
afternoon, Sun Yan accompanied her parents
to take a look at her office area, giving them
an experience of Unilever's work environment
and corporate culture. Her parents felt proud
of their daughter for working at such a fine
company. Sun Yan was also very proud upon
seeing the smiling faces of her parents; she
believes that her parents will now show even
more support and understanding for her
work with Unilever.
As the sun set, and Sun Yan's family were
about to bid farewell to the Family Day, Sun
Where There is Home, There is Unilever
Yan's mom made promises with a few of the
other mothers she had met: "We will see you
again at the family party next year!"
Before departing, Sun Yan's family placed the
prizes they had collected in donation boxes
that had been placed at the exit. These
would be donated to kids at Unilever hope
schools, spreading happiness to even more
families in China.
Unilever China has developed rapidly in
recent years; it is contributions from each
Unilever China staff member and the silent
support of their families that are behind this
growth. Family Day is just one of the ways
that Unilever says thank you for this.
The event hopes to bring staff family
members into the big family of Unilever;
it is part of Unilever's efforts
to integrate its management
experience and corporate
culture into Chinese society.
The close connection between
work, corporate development
and happy families not only showcases
Unilever's lively corporate culture, it is part
of China's hope for a harmonious
society.
Unilever hopes that efforts like
these will spread
the warmth of
the Unilever
family to every
family in China.
I 25
26 I Where There is Home, There is Unilever
Unilever China award list
Unilever China award list
(2008-2009)
2008
Unilever was recognized as one of the China Green Benchmark
Companies
Unilever won the China Contribution Grand Award for top-100
Multinational Corporations contributing to China
Unilever Hefei plant passed DNV ISO 14001 Environmental Management
System Certification
OMO washing powder produced in Unilever's Hefei plant successfully
received Environmental Labeling Certification
Unilever was nominated for the Award for the World's Top 500
Enterprises for Outstanding Contributions in China
Unilever was nominated for the Top-50 Employers for Chinese
University Graduates
2009
Unilever won 2009 Multinational Corporations in China Contribution
Award.
Unilever won the Award for Economic Development of Changning
District.
Unilever won Annual Internet Beauty Award-"Top Ten Brands of the
Year".
Unilever was recognized as "Wal-Mart China Supplier of 2009"
Unilever won the Gold Prize in Wal-Mart's 2009 Environmental
Packaging Competition
Where There is Home, There is Unilever
I 27
Unilever China
Address: 33 North Fu Quan Road,
Changning District, Shanghai, China
Zip code: 200335 Tel: 8621-22128000
This report is printed on recycled paper.