1. Unilever Sustainable Agriculture
November 2015
Unilever Sustainable Agriculture
Tom Langan
Director, External Affairs & Sustainability

2. Top Foods and Refreshments Brands
Before I begin, I know you know the Unilever Brands, but thinking through a sustainability lens, you realize the difference we can make.
We are a company with over 400 brands, with operations in nearly 100 countries and sales in nearly every country in the world.
Our products are bought over 150 million times a day and used 2 billion times a day in over half the households on the planet.
Therefore, that’s two billion times a day we can make a difference. We believe brands like Dove, Lipton, and many others, make small but important differences to the quality of people’s lives everyday.
I’ll take you through how sustainable growth is central to our business and how we deliver this through the power of our brands.

3. increasing GLOBAL demand and resource scarcity
Facing a future of increased demand
and resource scarcity
increasing GLOBAL demand and resource scarcity
 But first, let us consider the market conditions, we’re facing as a business.
Population levels are rising. The demand for food will grow by 50% by There is an intense demand and competition for agricultural land. Agriculture is responsible for 18% of global carbon emissions and uses 70% of useable water.
Over half the raw materials we buy come from agriculture and forestry. Security of supply is a core business issue. Unsustainable farming practices will have serious repercussions on the environment and in grower communities. This presents an operational and reputational risk to our business. We must take action now. But we cannot do this alone, we need to work in partnership with our suppliers and farmers. 3

4. Our History with sustainable sourcing
1995
Unilever Sustainable Agriculture Initiative
1996
2003
Unilever Good Agricultural Practices (GAP) Guidelines
palm oil, peas, spinach, tea and tomatoes
2004
Palm Oil
2006
Soy
2007
Tea
2010

5. In response to these challenges, in 2010 we announced a new vision for our company to match our purpose. We aim to double the size of our company, halve the environmental impact of our products across the value chain while increasing the positive social value of our brands
Message #1: We will double the business by fulfilling our purpose: to make sustainable living commonplace.
Message #2: We will do that through:
Market development
Product innovation – more sustainable products and ways of using them
Consumer preference and behavior change
Transformational partnerships
Passionate employees

6. 3 BIG GLOBAL GOALS BY 2020 We have three big goals
Help more than 1 billion people improve their health & well-being
Halve the environmental footprint of our products
And finally we want to source 100% of agricultural raw materials sustainably and enhance the livelihoods of hundreds of thousands of people 6

7. 2014 SUSTAINABLE SOURCING PROGRESS
% UNILEVER’S AGRICULTURALRAW MATERIALS SUSTAINABLY SOURCED
55%
2014
2013
36%
2012
24%
2011
14%
2010
48%
Since % of our raw materials were sourced sustainably at the end of last year.
But our goal of sourcing 100% by 2020 almost impossible as  individual company.

8. Our definition of Sustainable Agriculture:
Sustainable agriculture aims to deliver sufficient raw
materials from production systems that:
Have good yields of the right quality
Optimise the use of renewable inputs, minimise the use of non-renewable inputs
Minimise negative impacts on the environment, and contribute to biodiversity
Contribute to better rural livelihoods
AND help Unilever to reduce the footprint of our raw
materials (e.g. eliminate deforestation from our value
Chains, reduce GHG and water)
But what do we mean by Sustainable? Broadly our goal aims to ensure we
Have good yields of the right quality
Optimise the use of renewable inputs, minimise the use of non-renewable inputs
Minimise negative impacts on the environment, and contribute to biodiversity
Contribute to better rural livelihoods

9. Self verification – sustainable agriculture code
The Code clearly sets the standards of
what Unilever believes to be
sustainable agriculture
It is applicable to all our agricultural raw
materials
It can be used in its own right to guide
and monitor our suppliers’ progress
towards sustainable agriculture (self-
verification approach)
Or as a benchmark for standards that
suppliers may already be using (certification
process)
We have more specific definition in our Unilever Sustainable Agriculture Code. The Code is a published document that is applicable to all our raw materials and sets out the standard for what we consider sustainable agriculture. It is the basis for supplier self-verification and can be used in its own right or to benchmark other standards our suppliers may use. It is already been in use for the last 15 years.

10. Chapters of the SAC Continuous improvement Waste
Click on links for more information on scope and general content
Agrochemicals and fuels
Energy and Greenhouse gases
Social and human capital
Soils
Water
Value chain and local economy
Here are the chapters from our SAC Code. We look to understand performance across a range of indicators from soil fertility and health, to labor practices and energy and greenhouse gas.
Our overall approach is what farmers are already doing – looking for ways to continually better their farming practices and yields.
Biodiversity
Animal welfare
Training

11. Partnerships are critical
But we recognize that we cannot tackle the big issues alone. We’re partnering with others – governments, NGOs, customers, suppliers and competitors - to get better solutions. We need the help of people and organisations like yourselves.
Ultimately we believe that this approach will become the only acceptable model of business. I people feel that the economic system is unjust and does not work for them they will rebel against it. f
And if we continue to consume key inputs like water, food, land and energy without thought as to their long term sustainability then none of us will prosper. 11

12. Case Study: Soy partnership IOWA
Partnering with soy supplier in Iowa to provide sustainably source soy oil for Hellmann’s mayonnaise.
Started program in 2013 with 40 growers and 44,000 acres
Grew to147 growers and 170,000 acres in 2014.
2015 goal is 250 growers and 285,000 acres
I’d now like to share with you and example of how we put theory into practice with our soy bean partnership with Farmers in Iowa who provide the soy bean oil for our Hellmann’s mayonnaise.
We started the program in 2013 with 40 growers and 44,000 acres. We have grown this over the past 3 years and by the end of this year we will expand to 250 growers and 285,000 acres.

13. Case Study: Soy partnership IOWA
Established a steering committee of 7 growers to give feedback and advise us on the direction of the program.
Hold annual grower meetings each spring to share analysis of aggregated data.
In addition to sharing of data, also include workshops on issues such as fertilizer management and cover crops.
Based on feedback received from growers were able to develop a $2.2 million public-private partnership to trial cover crops as a way to reduce fertilizer use and protect water quality. Partners include Iowa State Department of Agriculture, Du Pont, La Crosse Seed, ADM and Practical Farmers of Iowa.
The soy program is based on the collection of data on key farm metrics using a combination of the US Soybean Farmers Sustainability Protocol and Field to Market. The program has a steering committee of 7 growers to provide feedback and direction to the program. We meet with all growers in the program on an annual basis to review data and to provide workshops on key issues.
It was through one of these grower meetings that we discovered that the issue of fertiliser run-off on water quality was a growing concern our farmers shared. Together we were able to create a coalition of partners to secure a fund of $2.2 M to trial cover crops in the area. The funding covers cost of seed, and technical assistance including $1M in State funding.

14. HARMONISED DATA
Field to Market, is a key partner in the Soy project. We believe Field to Market is one of the best forums for leading on sustainability impact in the US Agro-business industry.
The organization brings together a diverse group of more than 65 grower organizations; agribusinesses; food, beverage, restaurant and retail companies; conservation groups; universities; and agency partners to create continuous improvements in productivity, environmental quality and human well-being across the agricultural supply chain. The North Dakota Wheat Growers Association is a member of Field to Market.

15. Aggregated anonymous data to help drive on-farm performance
The data we collect is also useful for the farmers in our program. We ask farmers to report on things like how much fertilizer they spray, what kind and when. We lay this private information on top of public information about the land’s soil type, proximity to streams and rivers, and the slope of their hills. The result is an environmental footprint of each one of the farmers’ fields.
Though the farmers and their land remain anonymous, we share this information with the entire group, which allows farmers to see how the fields on their farm compare and how their farm as a whole stacks up against their neighbors’. This comparison can show you if you’ve got one field that’s using more nitrogen. Which can trigger questions such as ‘Why is this different from my neighbour?’ ‘What could I do differently that would help me bring down costs and improve my soil?’.
This process can trigger change that can really improve practices and it’s what we’ve seen from other crop programs is of real value to our farmer partners. “

16. Farmer Partner – Craig pFantz
Farm runoff polluting drinking water and destroying aquatic wildlife habitat has been a problem in the Midwest for decades.
Craig Pfantz, who farms more than 2,000 acres of corn and soybeans in State Center, Iowa, signed up as a partner in our Sustainable Soy three years ago.
He says the knowledge he’s gained through our Unilever’s environmental footprint reporting on his fields have given him a clearer picture of his farm’s “problem spots.
For Craig, that’s includes some of his land that’s on hillsides. He needs to cultivate that land. But knows that when it rains, he loses all the fertiliser he’s applied. Craig has signed up to the Cover Crops project and believes this will help him save money, and help improve soil fertility, so future generations can continue to farm his land.

17. Facing a future of increased demand and resource scarcity
Case Study: Knorr
 And we’re not doing this on the fringes. Our first major undertaking has been with Knorr - Unilever’s biggest food brand with a turnover of over 1 billion.
Globally 10 million packs of Knorr are bought every day
Bought by 200 million consumers
Using vegetables grown on 48,000 hectares of land equivalent to two million tennis courts
Farmed by over 5000 farmers across the world
It’s a sizeable footprint and one the brand is committed to reducing from seed to spoon.
Knorr’s Commitment, is to source 100% of their top 13 vegetables and herbs from sustainable sources by 2015, which equates to 80% of their business. With the rest converted by 2020. 17

18. Knorr SUSTAINABLY labelling
In 2012 a new soup launched in France became the first Unilever product to promote an ingredient (tomatoes) as sustainably grown in accordance with the Unilever Sustainable Agriculture Code.

19. KNORR sustainability PARTNERSHIP FUND
This was made possible through the Knorr Sustainability Partnership Fund, which uses €1 million a year to support Knorr Producers on complex sustainable agriculture projects.
To date over 30 projects have been funded including drip irrigation trials in Spain where early trials have revealed a 30% drop in water use and a 20% increase in yields. Similar irrigation projects have been funded in California. This is a global fund and would be available to Wheat producers in North Dakota involved in our sustainable sourcing program. 19

20. Wheat is A key ingredient for Knorr USA
In the USA, the biggest part of our Knorr business are Rice and Pasta Sides. Pasta represents 80% of the ingredients of our pasta sides. Our supplier is Minot Milling. And You are a critical partner to our ambition to reach our 100% sustainably sourced goals.

21. Harmonised data collection for better marketing
SAI Platform Members 2015
As in our Soy example, for our Knorr program we working to align our data reporting with a wider group of companies who have shared goals on sustainable sourcing. The SAI Platform was started by Unilever together with Danone and Nestle in It’s membership now spans a much wider list of global food manufacturers and suppliers.
In 2014, the SAI Platform launched a Farm Sustainability Assessment tool or FSA which will harmonise cross industry sustainable agriculture standards and data collection. We have benchmarked our own standards against the FSA and the SAI FSA silver level is fully equivalent to Unilever standards.
We believe this has real benefits to farmers, by making data collection streamlined and harmonised – and making them more marketable to a wide range of potential buyers, such as the companies you see listed on this slide.
AFFILIATE MEMBERS

22. Working together in partnership
Unilever Self Assessment
Industry Wide Standards
Today, I’ve tried to share with you just how important partnerships are to achieving our joint goals of a sustainable food system. We can’t do it alone. We believe that collecting data that can be used across different stakeholders in the food system, from other food manufacturers to sharing data among farmers can help us make the the continuous improvement we want to see in the food system. Improvements that will enable producers such as yourselves to continue to thrive on the land and enables us, as a manufacturer to continue to meet the needs of consumers.
Over the next few months, our supplier Minot Milling will be reaching out to wheat producers to invite you to join in program. I sincerely hope you will join us and look forward to working with you.

23. Tom.Langan@Unilever.com Director, External Affairs & Sustainability
Thank you
Director, External Affairs & Sustainability
Any questions. Please feel free to me or talk to me later at today’s conference.