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REPORT 2012-13
MAKING
SUSTAINABLE LIVING
COMMONPLACE
CONTENTS
02
04
07
08
10
14
16
17
18
20
The Unilever
Sustainable
Living Plan
Principle 6:
Environment
Introduction
to Business
Responsibility
Report
Principle 7:
Policy
Advocacy
Principle 1: Ethics,
Transparency and
Accountability
Principle 8:
Inclusive
Growth
Principle 2:
Products Lifecycle
Sustainability
Principle 9:
Customer
Value
Principle 3:
Employees
Well-being
The road
ahead
12
Principle 4:
Stakeholder
Engagement
13
Principle 5:
Human
Rights
MAKING SUSTAINABLE
LIVING COMMONPLACE
Sustainability is at the core of your Companys way of
doing business. It guides your Company on the path
to long term success in a world where aspirations
are rising but resources are shrinking. Unilever
globally has set out the Unilever Sustainable Living
Plan (USLP), which embeds sustainability in the
business model. The Plan sets out to decouple
growth from the environmental impact and at the
same time increase positive social impact.
OUR VISION
POSITIVE SOCIAL
IMPACT
DOUBLE THE
BUSINESS
REDUCE
ENVIRONMENTAL
FOOTPRINT
OUR PURPOSE
TO MAKE SUSTAINABLE
LIVING COMMONPLACE.
We work to create a better future every day, with
brands and services that help people feel good, look
good and get more out of life.
Our first priority is to our consumers then
customers, employees, suppliers and communities.
When we fulfil our responsibilities to them, we believe
that our shareholders will be rewarded.
THE UNILEVER
SUSTAINABLE LIVING PLAN
H
elp more than 1 billion people improve
their health and well-being.
H
alve the environmental footprint of our
products.
S
ource 100% of our agricultural raw
materials sustainably and enhance the
livelihoods of people across our value
chain.
IMPROVING HEALTH
AND WELL-BEING
REDUCING
ENVIRONMENTAL IMPACT
1 HEALTH AND
HYGIENE
2N
UTRITION
3G
REENHOUSE
GASES
Unilevers commitment is to
halve the greenhouse gas
impact of products across
the lifecycle by 2020^+.
IN INDIA, SIGNIFICANT
PROGRESS MADE IN
REDUCING GREENHOUSE
GASES FROM OUR
MANUFACTURING
OPERATIONS. CO2
EMISSIONS PER TONNE
OF PRODUCTION IN
INDIA REDUCED BY 22%
COMPARED TO 2008*.
4W
ATER
Unilevers commitment is to
halve the water associated
with the consumer use of
products by 2020^+.
IN INDIA, MAGIC WATER
SAVER AND COMFORT
ONE RINSE LAUNCHED
AS PILOT PROJECTS TO
SIGNIFICANTLY
REDUCE WATER
CONSUMPTION IN
LAUNDRY.
ENHANCING
LIVELIHOODS
By 2020, Unilever will enhance the
livelihoods of hundreds of thousands of
people while growing its business.
5W
ASTE
Unilevers commitment is to
halve the waste associated
with the disposal of
products by 2020^.
SIGNIFICANT PROGRESS
MADE IN REDUCING
WASTE FROM
MANUFACTURING
OPERATIONS IN INDIA.
WASTE PRODUCED PER
TONNE OF PRODUCTION
REDUCED BY 77%
COMPARED TO 2008*.
6S
USTAINABLE
SOURCING
7B
ETTER
LIVELIHOODS
10
L15140MH1933PLC002030
Hindustan Unilever Limited
B. D. Sawant Marg, Chakala, Andheri (East), Mumbai 400099
www.hul.co.in
levercare.shareholder@unilever.com
1st April 2012 to 31st March 2013
305
Soaps & Detergents and Personal Products
213 Tea
214 Coffee
218
Packaged Foods (Including Frozen Desserts)
359.9
Water Purifiers
Soaps & Detergents
Personal Products [including Skin care, Hair care, Oral care,
Deodorants and Colour Cosmetics]
Food & Beverages [including Tea, Coffee, Processed Foods, Frozen
Desserts and Bakery Products]
None
Registered Office:
Unilever House, B D Sawant Marg, Chakala,
Andheri East, Mumbai 400 099
Research Centre:
64, Main Road, Whitefield P O, Bangalore 560 066
Regional Office (East):
Brooke House, 9 Shakespere Sarani, Kolkata 700 071
Regional Office (West):
Uttara, Plot No. 2, Sector No. 11,
CBD Belapur, Navi Mumbai 400 614
Regional Office (North):
Block No. A, Plot No. B, South City I,
Delhi - Jaipur Highway, Gurgaon 122 001
Regional Office (South):
101, Santhome High Road, Chennai 600 028
(For details of Plant Locations, please refer page no. 152 of Annual
Report 2012-13.)
India
Rs. 216,24,72,310
(Paid up Equity Share Capital (face value Re. 1 per share))
Rs. 25,20,638 lakhs
(Net Sales from Operations (Net of excise duty))
Rs. 3,79,667 lakhs
(Net Profit from ordinary activities after tax)
1.82% of Average net profit* of three immediately preceding financial years
*Computed as per the provisions of Clause 198 of the Companies Bill, 2012.
Health & Well-being
Enhancing Livelihoods
Water Conservation
Designation
DIN
Mr. O. P. Bhatt*
Mr. Aditya Narayan
Dr. R. A. Mashelkar
Dr. Sanjiv Misra
Mr. Nitin Paranjpe
Mr. Sridhar Ramamurthy
Independent Director
Independent Director
Independent Director
Independent Director
Chief Executive Officer & Managing Director
Executive Director, Finance & IT and Chief Financial Officer
00548091
00012084
00074119
03075797
00045204
02557168
* Chairman
The National Voluntary Guidelines provides for the following nine principles:
Principle 1: Ethics, Transparency and Accountability [P1]
Questions
1
2
P2
P3
P4
P5
P6
P7
P8
P9
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
10
Governance related to BR
The Management Committee of the
Company on a monthly basis reviews
complaints, issues and concerns received
under the CoBP framework as also the
implementation of the CoBP. The Audit
Committee of the Company on a quarterly
basis reviews the implementation of the
CoBP.
6
P1
Sustainable Sourcing
An important part of the raw materials
used by your Company come from
farms and decisions relating to such
procurement can have profound
implications on global resources, climate
change and farmers livelihoods.
There is a clear business case to source
raw materials sustainably. By taking a
long-term view, your Company can ensure
security of supply, reduce costs and
protect scarce resources. This long-term
Partners in progress
Your Company takes responsible product
manufacturing beyond the factory gates
and ensures that partners are involved
in sustainability. Partner to Win is
an inclusive programme where your
Company works with suppliers jointly
on sustainability and other pillars like
capacity, innovation, world class service
and value.
Reuse waste
Sachets and pouches create less waste
by weight per millilitre of product sold and
are therefore considered more efficient
for packaging than bottles. However, it has
been challenging to find an economically
viable way of collecting and recovering
sachet waste due to its low weight. This
requires working in partnership with
other users of flexible plastic as well as
municipal authorities and NGOs. The
technology options being worked on
Recycle waste
In order to create awareness and promote
segregation of post-consumer use of
packaging waste, HUL and Bharti Retail
implemented a joint programme named
Go-Recycle. As part of the programme,
consumers were encouraged to bring
empty plastic bottles and pouches of
any brand from select FMCG categories.
In return, the consumers were given
discount coupons for future purchases. In
2012, HUL and Bharti Retail Go-Recycle
programme engaged over 100,000
shoppers over six month period.
Reduce waste
Reduction in total waste per tonne from
our manufacturing sites is 77% against the
2008 baseline. A total of 31 HUL factories
are now 100% zero non-hazardous waste
to landfill. Emphasis on recycling has led
Business Responsiblity Report 2012-13
Training
Your Company provides development
avenues like training programmes,
coaching and mentoring by senior
managers, on-the-job training,
secondments etc. to its employees. The
Company follows a holistic 70:20:10
capability building approach across
functions, under which 70% of all
capability is built on the job, 20% through
10
Employees Well-being
Work-Life Balance
There are several initiatives undertaken by
the Company to promote work-life balance
for both men and women. Some of these
initiatives are:
C
areer by Choice programme: A
unique career comeback programme
that provides a platform for women
looking for opportunities to work
flexibly and part time after a career
break. There are over 20 women
associated with the Company under
this programme across functions.
G
ender Balance Network: The
Company has launched a Gender
Balance Network which works around
creating a truly inclusive and diverse
organisational culture.
A
gile Working: Under this umbrella,
your Company is working on a host of
policies and practices which will help
employees work flexibly, anytime,
anywhere. Work from home, flexihours and part time / reduced hours
policy (including a job share policy)
are some of the initiatives introduced
in this direction. These policies are
supported with technology and office
infrastructure by the Company.
W
orkplace facilities: The Companys
Head Office at Mumbai has a day care
facility, Unilever shop, cafe, bank,
florist, gymnasium, badminton /
squash court etc.
C
areer Break Policy: The facility
of a career break is available to all
managers of the Company. Such break
can be availed for a duration of up to
five years in total for many reasons
including maternity, further study,
sabbatical, adoption etc.
M
aternity / Paternity leave: Paid six
month maternity leave and two week
paternity leave facility is extended to
employees at all levels.
Secure workplace
Grievance redressal
Freedom of association,
participation and collective
bargaining
Your Company follows the principle
of freedom of association and right to
negotiate. Promotion from workman
and staff to officer has an exclusive and
transparent process called Stepping Into
One. Each workman eligible under the
programme gets ample chance to make it
to the next level.
The human rights practices of your
Company assure respect for the right
of employees to freedom of association
and recognition of employees rights to
collective bargaining, where allowable by
law. There are 96 employee associations
which have been recognised by the
management. Nearly 9,000 permanent
employees are members of these
associations. During the last year, the
Company has entered into a long term
settlements with over 3,000 employees
covering eight factories across India.
Employees Well-being
11
Consumers
Your Companys business strategy
clearly states that the first responsibility
lies towards consumers. When we are
consumer centric, our shareholders will
be rewarded. This drives the Company
to keep the consumer at the centre of all
plans and decisions.
The Company has raised the levels of
consumer engagement through Levercare,
a toll free number where Consumers can
reach the Company directly. Levercare
is a win-win for both the consumer and
the Company. It gives consumers the
promise of better service and provides
the Company the opportunity to connect
with consumers directly and understand
their needs, expectations and aspirations.
Customers
12
Stakeholder Engagement
Government
All interactions with the Government,
legislators and regulators are done by
duly authorised and appropriately trained
NGOs
Non-Government Organisations are
important stakeholders that your Company
interacts with. Your Company works in
partnership with NGOs to deliver on many
of the Sustainable Living Plan initiatives.
Media
Your Company regularly interacts with
the electronic, print, television and online
media through press releases, media
events and during the financial results
announcements.
Employee Engagement
Human Rights
13
PRINCIPLE 6: ENVIRONMENT
BUSINESS SHOULD RESPECT, PROTECT, AND MAKE EFFORTS TO
RESTORE THE ENVIRONMENT
From refrigeration
WE WILL DE-COUPLE GROWTH FROM RESOURCE USE &
RE-COUPLE GROWTH WITH SOCIETAL GOOD.
Your Companys vision is to double the size of the business whilst reducing
the environmental footprint and increasing positive social impact. To achieve
this, it is important to assess and reduce environmental impact across the
value chain. The Company is focusing on four priority areas greenhouse
gases, water, waste and sourcing. The figures below demonstrate that
manufacturing accounts for only 3% of the environmental impact in the value
chain. Hence it is important to work on the footprint beyond our factory gates.
3%
RAW MATERIALS
2%
68%
MANUFACTURE TRANSPORT
14
Environment
1%
CONSUMER USE
DISPOSAL
Waste Management
Sustainable Sourcing
Under the Unilever Sustainable Living
Plan, your Company has committed to
source 100% of agricultural raw materials
sustainably. Details are listed in the
section on Sustainable Sourcing under
Principle 2.
Environment Management
Systems
Your Company monitors progress on
sustainability at different levels as
mentioned below:
Governing Council: The Sustainability
Governing Council is supported by
sustainability champions and reports
the progress to the Management
Committee and CEO on a quarterly
basis. The top leadership from
respective business verticals and
functions constitutes the Governing
Council. The Company has a governance
mechanism and score card to monitor
the progress on USLP commitments.
Risk assessment
All manufacturing sites have implemented
Unilevers Environment Care
Framework Standards, which require
all Unilever operations to establish a
formal environmental management
Environment
15
16
Policy Advocacy
Supporting small-scale
distributors
Project Shakti
Project Shakti is our flagship rural
distribution initiative that focuses on
enhancing livelihoods in small villages.
This project benefits your Company by
enhancing its direct rural reach and also
Business Responsiblity Report 2012-13
Community well-being
The Hindustan Unilever Foundation is a
wholly-owned subsidiary of HUL engaged
in community projects on water for public
good. The Foundation has undertaken
water conservation and storage projects
in villages of Rajasthan, Andhra Pradesh,
Madhya Pradesh, Gujarat, Tamil Nadu,
Karnataka and Maharashtra.
The Foundation has adopted a partnership
approach for project execution and
is working with reputed NGOs and
communities. These initiatives are also
Inclusive Growth
17
18
Customer Value
Customer Insights
Your Company continuously strives to
understand the pulse of its consumers
and customers through various research
activities. These include tracking
consumer sentiments and perceptions
through the brand health tracks and
understanding actual consumer purchase
behaviour for various FMCG categories on
an ongoing basis through the Household
Panel. Some of the consumer insight
initiatives include Consumer Shoes,
Consumer Voice and Consumer Insights.
In Consumer Shoes, the objective is to
discover how a consumer feels when they
use the Companys products. This helps
to step into the consumers shoes and
give feedback on the product based on
Ombudsman
In line with one of the Companys key
tenets of Consumer and Customer
Centricity, the Company commenced
a process of resolving consumer and
customer disputes and grievances
through an alternative disputes redressal
mechanism. The Company appointed four
retired Judges of different High Courts,
one in each region, to act as Ombudsman
to hear the Companys consumers and
customers in a bid to resolve long pending
disputes. The Ombudsman independently
reviews the merits of the complaint and
decides on the issue. The Company has
taken the view that the decision arrived
at such disputes resolution meetings,
while being fully binding on the Company,
may not be binding on its consumers
and customers and if they choose to
continue with litigation, they are free to
do so. These meetings were held in all
the four regions and achieved reasonable
success. The Company believes that
such independent dispute resolution
mechanism will further reinforce its
commitment and credibility with its
consumers and also set new benchmarks
for the industry.
Inclusive Growth
19
20
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