Introduction

(W0.1) Give a general description of and introduction to your organization.

Response options
This is an open text question.
Please note that when copying from another document into the disclosure platform, formatting is not retained.

Unilever is one of the world’s leading, fast moving consumer goods companies. We make and sell around 400 products in more than 190 countries which are used by some 2.5bn consumers
worldwide every day. Our range of world-leading, household-name brands includes Lipton, Knorr, Dove, Axe, Hellmann’s and Omo. Thirteen of the world’s top 50 brands are owned by Unilever, up
from twelve the previous year, with our nearest competitor owning just five, according to Kantar’s brand footprint report in May 2017.

Our business is organised across 3 geographies: the Americas; Europe; & emerging markets comprising Asia, Australasia, Africa, Middle East, Turkey, Russia, Ukraine & Belarus. Total turnover in
2017 was €53.7bn, with 58% of sales in emerging markets, with underlying sales growth of 5.9%. We have 2 main reporting channels: The Annual Report & Accounts (ARA), & the online
Sustainable Living Report (SLR). For the 5th year running we have included environmental & social performance alongside financial performance in our integrated reporting in the ARA. The SLR is
our means of reporting performance against the targets we set out in the Unilever Sustainable Living Plan (USLP). The USLP allows us to address issues which are central to our business growth
which are outlined by ’our vision’ on Unilever.com. To give our stakeholders a high-level introduction to our vision & strategy, we produce a progress summary annually which can also be found
online. We also communicate externally progress every year via 47 local country websites. PricewaterhouseCoopers LLP (PwC) scope for their assurance work on selected USLP & Environmental
& Occupational Safety performance indicators can be found in the PwC Basis of Preparation 2017 in the Independent Assurance section on our website. Findings can be found in the same place in
the PwC Limited Assurance Statement for 2017 document.

Currently Unilever operates as a single business entity with NV & PLC the 2 parent companies of the Unilever Group having separate legal identities & separate stock exchange listings for their
shares. However, in Q1 of 2018 we announced the simplification of our corporate structure into a single legal entity incorporated in the Netherlands. We also announced the changes to our
divisions, with Foods and Refreshment combining as of 1st January this year (2018).

OUR VISION

Our Vision is to grow our business, whilst decoupling our environmental footprint from our growth & increasing our positive social impact. The USLP, launched in November 2010, sets out how we
will achieve our vision. The USLP covers our entire portfolio of brands & countries. It has 3 timebound Big Goals:

• To help more than a billion people take action to improve their health & well-being by 2020

• To Halve the environmental footprint of the making & use of our products as we grow our business* (*Our environmental targets are expressed on a 'per consumer use' basis) by 2030

• Enhance the livelihoods of millions of people as we grow our business by 2020

Underpinning these three goals are 9 commitments & a series of time-bound targets spanning our social, economic & environmental performance across the value chain. Unilever's environmental
focus is on GHG, water, waste & sustainable agricultural raw material sourcing (over half of the raw materials we use for our products come from agriculture & forestry).

In 2014 we broadened our Plan with an Enhancing Livelihoods programme & are scaling for impact to make a difference to big issues that matter most to our business & the world. By combining our
actions with advocacy on public policy & working with partners, we are seeking to create transformational change. This change is fundamental change to whole systems & not just incremental

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 Company-wide water accounting W-FB1.2f N/A New sector specific question

Company-wide water accounting W-FB1.2g N/A New sector specific question

Company-wide water accounting W1.2h W1.2a Question updated

Company-wide water accounting W1.2i W1.2b Question updated

Company-wide water accounting W1.2j N/A New question

Water intensity W-FB1.3 N/A New sector specific question

Water intensity W-FB1.3a N/A New sector specific question

Water intensity W-FB1.3b N/A New sector specific question

Value-chain engagement W1.4 N/A New question

Value-chain engagement W1.4a W1.3a Question updated

Value-chain engagement W1.4b N/A New question

Value-chain engagement W1.4c N/A New question

Value-chain engagement W1.4d W1.3b Unlikely to apply to Unilever

Scoring changes from 2017:

Scoring changes TBC following official release of CDP questionnaire.

Points for improvement and general advice:

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[Add Row]

Value-chain engagement

(W1.4) Do you engage with your value chain on water-related issues?

New question for 2018.

Question Dependencies
● This question only appears if you select “Neutral”, “Important”, or “Vital” as your “Indirect use importance rating” in response to W1.1.
● Your response to W1.4 prompts subsequent questions. If your response to W1.4 is amended, data already entered in those dependent
questions may be erased. In this case, be sure to re-enter data for all relevant questions. The guidance for each question indicates if it is a
dependent question.
Response options
Select all that apply from the following options:
● Yes, our suppliers
● Yes, our customers or other value chain partners
● No, not currently but we intend to within the next two years
● No, we do not engage with our value chain on water

(W1.4a) What proportion of suppliers do you request to report on their water use, risks and/or management information and what
proportion of your procurement spend does this represent?
Question Dependencies
● This question only appears if you select “Yes, our suppliers” in response to W1.4.
Change from 2017
(2017 W1.3a) The following columns have been added:
● Impact of the engagement and measures of success
● Comment
Response options

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 water scheme, if we are social issues as sections 4.1 –
stewardshi to count their we pilot our Improving water
p and
manageme material as strengthened SAC use & efficiency,
nt sustainably 2017 at scale. 4.2 – Irrigation for
soured. From 2018 more information.
Other, please
For materials onwards we will
specify:
included in our focus our efforts
roadmap, it on a number of
Compliance with
becomes a priority crops and
our SAC
precondition to commodities
supplying us. where we can
Sourcing drive most impact
sustainably helps within their
secure our agricultural
supplies & reduces sectors.
risk & volatility in We verify self-
our raw material reported
supply chains. It assessments for a
opens up sample of
opportunities for suppliers. This
innovation by includes water
focusing on management
people’s requirements and
sustainable living gives an indication
needs & consumer of compliance with
preference, we

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 build stronger requirements
brands. overall.
Sustainable
farming methods
can also improve
the quality of our
products, such as
our sauces, soups,
dressings and ice
creams.

Innovation & • Educate 1-25 1-25 Water scarcity and We set up the HUL work with
collaboration suppliers climate change are Hindustan Unilever suppliers using the
about water
major risks to our Foundation (HUF) Partner to Win
stewardshi
p and business, because in 2010, supporting (P2W) programme to
collaboratio of the potential community-based encourage
n innovations from
• Provide impact on the water
suppliers. The P2W
training and supply and cost of management
support on is designed to drive
the ingredients we sustainability
sustainable closer collaboration
agriculture use in our programmes. HUF with our most
practices to products. works with strategic suppliers,
improve Good water suppliers & focusing on five core
water
stewardshi management can numerous other areas: 1) Capacity &
p increase the partners, reaching Capability 2) Quality
quantity and villages across 57 & Service, 3)
quality of crops districts in India. Innovation, 4) Value,

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while reducing the By 2017, more & 5) Responsible &
amount of water than 400billion Sustainable Living.
used. Innovation is litres of water was
at the core of our conserved, over
success and 650k tonnes
suppliers play an additional
instrumental role in agricultural
fuelling our production
innovation pipeline generated & more
– approximately than 5 million days
30% of our growth of employment
comes from created from
innovation and improved supply &
more than 70% of demand water
that innovation management,
comes from our conservation &
suppliers. governance
knowledge
initiatives.
Our Knorr
Partnership Fund
(KPF) contributes
to sustainability
projects, including
providing technical
support (& some

57
cases funding) to
help farmers
convert to drip
irrigation. We work
with farmers,
helping them learn
new techniques.
Since 2010, the
KPF has
supported €1.3m
worth of projects
including the
implementation of
tensiometers
which have helped
Tomato farmers in
Gastouni, Greece
cut water use by
28% whilst
increasing yields
from 76 (2010) to
83 tonnes per
hectare of land in
2017.

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(W1.4c) What is your organization’s rationale and strategy for prioritizing engagements with customers or other partners in its value
chain?
New question for 2018.

Question Dependencies
● This question only appears if you select “Yes, our customers or other value chain partners” in response to W1.4.

Around 99% of water use across our value chain occurs when consumers use our products so our engagement activities focus on them to understand their
needs.

Method & strategy of engagement: We engage with consumers using a number of different channels to gather insights, including People Data Centres
which conduct social media analytics to understand sentiment, consumer carelines which gather verbal feedback from consumers on our products and
broader market research on consumers trends. In response to these insights, we’re concentrating on consumer segments and product categories which
require most water to use including laundry, household cleaning, skin cleansing, oral and hair care.

Rationale: Water is essential for people to enjoy our products particularly when doing laundry, washing hair, showering or bathing. It is our responsibility as a
business to help firstly, understand the consumer use impact of our products and secondly, to help consumers reduce the impact of our products. We pay
particular attention to consumers who use our products in areas of water scarcity. We’re looking at how climate change may affect the availability of water and
what risks this creates for our consumers, our suppliers and our business.

Success measurement: Ultimately, the success of our engagement with consumers is determined by the sales of products with water saving benefits. For
example, our laundry brand Sunlight’s breakthrough SmartFoam technology, delivering superior performance, less suds and half the amount of water needed
to wash, continues to grow sales in South Africa and expanded to more formats in India. It provides a critical benefit for consumers in water stressed areas
and contributes to our USLP target of halving the water associated with consumer use of our products by 2020.

Further Information

Attachments
59
 Risk identification and assessment procedures W3.3 W2.1 No change

Risk identification and assessment procedures W3.3a W2.2, W2.3 Question updated

Risk identification and assessment procedures W3.3b W2.6 Question updated

Risk identification and assessment procedures W3.3c W2.7 Question updated

Risk identification and assessment procedures W3.3d N/A New question

Risk identification and assessment procedures W3.3e W2.8 Unlikely to apply to Unilever

Scoring changes from 2017:

Scoring changes TBC following official release of CDP questionnaire.

Points for improvement and general advice:

W3.3a CDP is incentivizing companies to take an integrated risk assessment approach to better understand the full suite of challenges
facing the business so that it might be better equipped to deal with them holistically.
W3.3a CDP also believes that a best practice risk assessment should include all suppliers so that it is complete and comprehensive.
W3.3a CDP believes that a best practice water risk assessment should be conducted annually at the river basin level and considers at least 3 years
into the future. Rationale for this:

• Annual or more frequent since circumstances can change

• River basin level since it suggests that local, contextual environmental and social issues are taken into consideration

• Is forward looking (more than 3 years) so that companies are considering potential future risks as well as current risks
W3.3b When discussing contextual issues, be clear about the specific methods used e.g. for scenario analysis of potential changes in the status of
ecosystems and habitats at a local level be clear what specific method is used to assess the potential changes, how this is
monitored/assessed, and what tools are used, including any bespoke Unilever tools.

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Potential water pollutants management procedures

(W-FB3.1) How does your organization identify and classify potential water pollutants associated with its food, beverage, and
tobacco sector activities that could have a detrimental impact on water ecosystems or human health?
New sector specific question.

Response options
This is an open text question.
Please note that when copying from another document into the disclosure platform, formatting is not retained.

At Unilever we comply with legal requirements with regards to the discharge of water borne pollutants at 100% of our sites. This is done through a
combination of onsite and offsite treatment of effluents. There is no specific standard for the quality of water discharges. COD data are required to be entered
on our monitoring system on a monthly basis whist all other data are recorded and collected at site level. Monitoring programmes developed locally are in
compliance with the legislation and take into account the sensitivity of the water course into which the discharge is going into.

Furthermore, for ingredients sourcing, the risks are addressed through certification schemes such as the Unilever Sustainable Agriculture Code, covering the
mandatory requirements with regards to the disposal of fertilizers and the recommendations for monitoring of water quality, or the Roundtable Sustainable
Palm Oil.

Finally, Unilever has developed Global Guidelines on the Use of Pesticides in Sustainable Tea Sourcing, listing which chemicals are unacceptable due to
their risks, building upon the World Health Organisation Recommended Classification of Pesticides by Hazard, the Stockholm Convention on Persistent
Organic Pollutants and the Rotterdam Convention on Prior Informed Consent for certain hazardous chemicals and pesticides in international trade.

(W-FB3.1a) Describe how your organization minimizes the adverse impacts of potential water pollutants on water ecosystems or
human health associated with your food, beverage, and tobacco sector activities.
New sector specific question.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

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Change from 2017
This question combines elements of W2.2, W2.3 and W2.5 from 2017. Significantly, organisations must disclose the risk assessment
procedures used at each stage of the value chain. The following new columns have been introduced:
• Value chain stage
• Coverage (Full/partial/None)
• Frequency of assessment
• Type of tools and methods used
• Tools and methods used
The 2017 questions and responses have been provided below for reference.

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 Water-related opportunities W4.3 W4.1 Question updated

Water-related opportunities W4.3a W4.1a Question updated

Water-related opportunities W4.3b W4.1b Unlikely to apply to Unilever

Scoring changes from 2017:

Scoring changes TBC following official release of CDP questionnaire.

Points for improvement and general advice:

Not applicable.

Risk exposure

(W4.1) Have you identified any inherent water-related risks with the potential to have a substantive financial or strategic impact on
your business?
Question Dependencies
• Your response to W4.1 will determine which subsequent questions are presented. If your response to W4.1 is amended, data in those
dependent questions may be erased. In this case, be sure to re-enter data for all relevant questions. The guidance for each question
indicates if it is a dependent question.
Change from 2017
Dropdown options updated (2017 W3.1).
Response options
Select one of the following options:
● Yes, both in direct operations and the rest of our value chain

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 ● Yes, only within our direct operations
● Yes, only in our value chain beyond our direct operations
● No

(W4.1a) How does your organization define substantive financial or strategic impact on your business?
Change from 2017
Wording updated (2017 W3.2) – includes both financial and strategic impacts. Reference to impacts on operations, revenue and
expenditure have been removed.
Response options
This is an open text question. Please note that when copying from another document into the disclosure platform, formatting is not retained.
Magnitude/threshold
We use our principal risks (all 14 included in pages 28-31 of our Annual Report and Accounts 2017) to identify scenarios which could force Unilever to cease
being viable over a three-year period. These are the substantive financial or strategic impacts to the business. Each year, we assess the cash flow impact a
particular risk/mix of risks could have to the business based on the amount of cash held, our operating cash flows and the credit facilities available and their
ability to affect the business operating and meeting its liabilities. In assessing viability, ‘severe but plausible’ scenarios based on our principal risks are
considered and the threshold to which we work with these scenarios is a confidential financial number used internally for decision making purposes. Water-
related stress is covered in our Sustainability and Climate Change principal risks on page 28 of our Annual Report & Accounts 2017. If the changes in the
climate were to lead to significant water shortage, in particular in the developing markets, this could reduce demand of some of our products that require the
use of water. Prices for raw materials would also increase.

Frequency
A three-year viability period, based on our forward-looking planning which is set out in our three-year strategic plans and annual forecast. This is in line with
many of our peers. As a FMCG company, we do not have any long-term contracts, marketing programmes or capital expenditure projects that would support
a different viability period and therefore have not proposed any changes for our 2017 disclosure.
All the principal risks could impact our business within the next two years (i.e. short-term risks), or could impact our business over the next three to five years
(i.e. medium-term risks). Some principal risks, such as climate change, could also impact over the longer-term (i.e. beyond 5 years). The cost of the impact is
estimated over 12 months to highlight any significant concerns.

Probability
Plausible scenarios
We document examples of ‘plausible’ scenarios where events might impact singular and multiple risks. We estimate the total financial impact that could affect
the company within a three-year period for each. For example: the loss in revenue from the termination of three of our largest global customers (linked to our
Customer Relationships principal risk) or the loss in revenue from the destruction of three of our largest sourcing units (linked to our Supply Chain principal
risk).
Implausible scenarios

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The following columns require numerical responses for 2018:
• Cost of response – numerical response required.
• Potential financial impact – numerical response required.

The dropdowns on the following columns have been updated so 2017 responses may no longer be valid:
• Primary risk driver
• Primary potential impact
• Likelihood
• Primary response to risk
It is unclear whether multiple options can be chosen from these dropdowns or if a single “primary” value is required. We will clarify
this once the guidance document has been released.

The following new columns have been added:

• Explanation of financial impact
• Description of response (previously part of “Details of strategy and costs”)

It is unclear whether a separate row per risk is required, or whether one row can be provided per river basin. We will clarify this once
the guidance document has been released.

Response options
Please complete the following table. The table is displayed over several rows for readability. You are able to add rows to this table using
the "Add row" button at the bottom of the table.

101
Points for improvement and general advice:

W5.1b Values of zero may be awarded points when supported by a brief explanation to demonstrate they have been correctly derived - CDP does
recognise that some companies may have zero values for consumption or discharge of water for certain facilities. In these cases points will
be awarded, if a brief explanation to support the zero figure is given within the CDP response. Scorers will also consider whether the facility-
level water accounting figures make a water balance (i.e. Withdrawals = Discharges + Consumption, please see water guidance document
for explanation) when considered together, when deciding whether to award points for zero-discharge or zero-consumption figures for a
facility. Please note that if there is no data due to lack of monitoring then this is not eligible for points, and should be reported by
leaving the value blank. If a zero value is reported, but it is clear from the response that no measurement has taken place, then
points will not be awarded.
Some 2017 answers implied that discharge was not measured at particular sites – so no marks could be awarded.

Facility-level water accounting

(W5.1) For each facility referenced in W4.1c, provide coordinates, total water accounting data and comparisons with the previous
reporting year.
Question Dependencies
• This question only appears if you report that you have facilities exposed to water risk in W4.1c.
• Your response to W5.1 prompts subsequent questions. If your response to W5.1 is amended, data in those dependent questions may
be erased. In this case, be sure to re-enter data for all relevant questions. The guidance for each question indicates if it is a
dependent question.
Change from 2017
This question combines W5.1, W5.2 and W5.3 from 2017. The following new columns have been introduced:
• Latitude
• Longitude
As there is now only one “Please explain” column for all three parts (withdrawals, discharges and consumption), last year’s
comments may contain some overlap.

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Water policy

(W6.1) Does your organization have a water policy?

Question Dependencies
• Your response to W6.1 will determine if subsequent questions are presented in this section. If your response to W6.1 is amended,
data in those dependent questions may be erased. In this case, be sure to re-enter data for all relevant questions. The guidance for
each question indicates if it is a dependent question.
Change from 2017
(2017 W6.3) Dropdown updated – companies must specify whether water policy is publicly updated. Question no longer includes
reference to a policy with “clear goals and guidelines for action”.
Response options
Select one of the following options:
● Yes, we have a documented water policy that is publicly available
● Yes, we have a documented water policy but it is not publicly available
● No, but we plan to develop one within the next 2 years
● No

(W6.1a) Select the options that best describe the scope and content of your water policy.
Question Dependencies
● This question only appears if you select “Yes” in response to W6.1.
Change from 2017
(2017 W6.3a) Dropdown options in Column 2 updated – some options which were selected in 2017 are no longer available so have
been listed under “Other”.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

164
Our biennial materiality assessment helps us focus on issues important to us & stakeholders, & where & how to engage. Our 2017 assessment confirmed
alignment between our most material issues & those being addressed through the USLP, with Water identified as very high priority. It encompasses: access
to water & services, consumer use, abstraction, discharge/quality/pollution, use in agriculture, risks & management & safe drinking water.
We engage governments, regulators & legislators directly & indirectly through trade associations. In 2017 our CEO was Chairman of the WBCSD, where we
engage on Climate Smart Agriculture. We also engage the World Economic Forum, UN Global Compact & the Consumer Goods Forum to overcome major
challenges eg climate change & the effects on water availability/quality. In 2016, we opened our Suvidha Centre in Mumbai with our partners, the Municipal
Corporation of Greater Mumbai & Pratha Samajik Sanstha. This supports our water, sanitation & hygiene USLP targets.
Research helps us develop water-smart products ie new products/formulations using less water such as easy-rinse detergent. Our Safety & Environmental
Assurance Centre works with scientific organisations, academics & other companies. We publish findings in peer-reviewed scientific journals eg Journal of
Applied Toxicology, present at conferences (ie Symposium for European Freshwater Sciences) & discuss our approach to safety risk & environmental impact
assessment with policy makers & regulators.

Question Dependencies
● This question only appears if you select any of the “Yes” options in response to W6.5.
Response options
This is an open text question.
Please note that when copying from another document into the disclosure platform, formatting is not retained.

Further Information

Attachments

W7 Business strategy
Last year’s response is provided in red text, which should be built on this year.

Question changes from 2017:

176
Points for improvement and general advice:

Not applicable.

Managing linkages and tradeoffs

(W9.1) Has your organization identified any linkages or tradeoffs between water and other environmental issues in its direct
operations and/or other parts of its value chain?
Question Dependencies
• Your response to W9.1 will determine whether W9.1a is presented in this section. If your response W9.1 is amended, data in those
dependent questions may be erased. In this case, be sure to re-enter data for all relevant questions. The guidance for each question
indicates if it is a dependent question.
Change from 2017
(2017 W9.1) This question has been modified to ask about direct operations as well as the rest of the value chain.
Response options
Select one of the following options:
● Yes

(W9.1a) Describe the linkages or trade-offs and the related management policy or action.
Question Dependencies
● This question only appears if you select “Yes” in response to W9.1.
Change from Last Year
(2017 W9.1a) The following new columns have been added:
• Type of linkage/tradeoff (choose from dropdown)
• Description of linkage/trade-off (previously only asked for the environmental issues involved)
Response options

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