Unilever’s Sustainable Living Plan & Sustainable Sourcing Keurmerken Jan Kees Vis Global Director Sustainable Sourcing Development

We work to create a better future every day. We help people feel good, look good and get more out of life with brands and services that are good for them and good for others. We will inspire people to take small, everyday actions that can add up to a big difference for the world. Our vision: The Compass We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact.

Unilever’s Sustainable Living Plan (USLP)

what does it mean? a sustainable business is a growing and profitable business that delivers positive social, economical and environmental outcomes sustainability

fuels innovation & growth, with huge potential in developing & emerging markets builds consumer preference - consumers won’t compromise ensures you win with customers and shareholders reduces waste - reduce, reuse, recycle why?

Three Key Features ALL BRANDS ALL COUNTRIES

DisposalRaw MaterialsManufactureTransportConsumer Use Three Key Features LIFECYCLE IMPACTS ALL BRANDS ALL COUNTRIES

Three Key Features ECONOMIC SOCIAL ENVIRONMENTAL LIFECYCLE IMPACTS ALL BRANDS ALL COUNTRIES

Three Big Goals by 2020 SOURCE 100% OF AGRICULTURAL RAW MATERIALS SUSTAINABLY HALVE ENVIRONMENTAL FOOTPRINT OF OUR PRODUCTS HELP 1 BILLION PEOPLE IMPROVE THEIR HEALTH & WELLBEING

Halve Environmental Footprint of our Products

In Greenhouse Gases Raw materialsManufactureConsumer useDisposal Distrib. / retail 26% 1% 68% 2% 3% Water used by consumers Water we add to the product 1% 87% LeftoversPrimary packaging materials recycled, reused or recovered - 54% 13%34% X% Secondary packaging + + Water use Waste Raw materials 12% In water scarce countries

SWEET SPOT CONSUMER Quality Value Convenience PLANET Reduced impact Drive GROWTH and BRAND preference by hitting the consumer sweet spot

Drive GROWTH and BRAND preference by hitting the consumer sweet spot SWEET SPOT CONSUMER Quality Value Convenience PEOPLE Better Livelihoods

1.Certification Why? – Unilever want brand driven or supply market entry Applicable to a limited number of raw materials Independent standard Audit – pass or fail Make part of specification E.g. Rainforest Alliance, RSPO, MSC, FSC, RTRS, Fairtrade 2.Self-verification Why? – Unilever want supply driven Applicable to all raw materials Unilever Sustainable Agriculture Code (UL SAC) – externally endorsedUnilever Sustainable Agriculture Code (UL SAC) Continuous improvement based – no definitive end points Suppliers sign up to work on sustainable development Performance reporting 3.In the end it is all about evidence-based sustainability 4.Important to make the right choice for Unilever materials Sustainable Sourcing mechanisms to substantiate

Two options for implementation Certification In or out Do’s and don’ts Independent The seal is the story System costs Verification Measured improvement Action plans Unilever driven Tell your own stories Value chain investment *See latest version of scheme rules

Standards Assessment Coordinated by ISEAL Large Steering Group Paid for by donors Published in June

Increasing Proliferation of Standards and Certification Systems

Direct and Indirect Impacts

Evidence of impact? Substantial evidence of improvement in practices on site or at the enterprise level. Limited evidence of longer term outcomes or impacts – Difficult to attribute outcomes to certification – Few studies on durability of impacts Methodological challenges – Dynamic nature of ecosystems and communities – Difficulty identifying an appropriate counterfactual – Financial costs and complexity

What is it you want? Be different from others? Make sustainability mainstream? Will we create 40 more roundtables? Will we certify every farmer on the planet? Role of standards systems

Unilever’s Sustainable Living Plan