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Unilever sustainable living plan and allanblackia project

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  • 1. Unilever Sustainable Living Plan and Allanblackia Project Dr Maha Misbah Senior Project Leader Supply Chain Innovation
  • 2. UnileverSustainable LivingPlan www.sustainable-living.unilever.com
  • 3. Unilever_Sustainable_Sept10_12MB.mov
  • 4. can consumptionbecome sustainable?
  • 5. Three Key Features ALL BRANDS ALL 170 COUNTRIES
  • 6. Three Key Features ALL BRANDS LIFECYCLE ALL COUNTRIES IMPACTS Raw Materials Manufacture Transport Consumer Use Disposal
  • 9. Environmental Impact Reductions: 1995-2009 (UL manufacturing sites) CO2 from Energy Water Use Total Waste
  • 10. Product Lifecycle Analysis 1,600 14 70% REPRESENTATI COUNTRIES OF OUR VE PRODUCTS VOLUME SALES
  • 11. Our Direct Impacts are Small Raw Materials Manufacture Transport Consumer Use Disposal 26% 3% 2% 68% 1%
  • 12. Small and Mighty Up to 50% GHG reduction per wash 125 billion washes a year
  • 13. Comfort One Rinse Save 500 billion litres of water a year Save up to 30 lit water per wash
  • 14. Source 100% Agricultural Raw Materials Sustainably Our top 10 agricultural raw materials volume of total sourcing (%) 7.5 million tonnes of crops 350 varieties
  • 15. Palm Oil • Unilever buys 1.3 mio tons of palm • Since 2009 we have bought >50% of the certificates traded We will purchase 100% of our palm oil from sustainable sources by 2015 Growing for the Future
  • 16. Tea • In 2010 Lipton and PG tips teabags for Europe and a number of other countries were fully Rainforest Alliance certified • We are progressing well towards our goal We will purchase 100% of our tea from Growing for the Future sustainable sources by 2020
  • 17. Knorr We will purchase 100% of our top vegetables & herbs from sustainable Growing for the Future sources by 2015
  • 18. Recognised for our efforts Dow Jones Sust ainabilit y World Indexes food indust ry leader f or 12t h year running in 2010 – t he only company t o achieve t his Top performer in t he new FTSE Carbon St rat egy 350 Index Included in FTSE4Good Index Series and FTSE4Good Environment al Leaders Europe 40 Index Rat ed best pract ice by Nat ural Value Init iat ive’s Ecosyst em Services Benchmark
  • 19. AllanblackiaJourney• Allanblackia• Partnership oRoles and responsibilities• Current status• Next steps• Challenges
  • 20. Allanblackia
  • 21. Allanblackia Partnership • The AB project is based on integrating People Planet Profit principles. Unilever formed a partnership consisting of >30 players (global and local organisations representing the 3 P’s). – People: benefit of rural communities – Planet: no reduction in forest area, maintain biodiversity and adhere to sustainable practices – Profit: create wins along the value chain and final ownership in local hands
  • 22. Allanblackia Donors• The Austrian Development Agency (ADA)• The Dutch Ministry of Foreign Affairs Accelerate project• Deutsche Gesellschaft fur Technologische activities Zusammenarbeit (GTZ) Reduce risk• The UK Business Linkage Challenge Fund (BLCF)• Rivers State Sustainability Development Agency (RSSDA)• International Fund of Agriculture Development (IFAD)
  • 23. Role of Partners: Unilever What can a private sector offer: • Access to Market – Understanding market – Understanding scale • Leadership expertise • Knowledge transfer • External network/recognition • Principles of engagement “Business Code of Practice”
  • 24. Role of Partners: Unilever 2000-2008 • Key driver behind setting up partnership and selecting organisations committed to operate according to PPP model • Invested 7 mio€ • Has given commitment to buy all wild harvested AB oil • Obtained EU Novel Foods Clearance for the application of AB
  • 25. Role of Partners: Unilever 2009 onwards • Project has moved from R&D supervision to Supply Chain • Project placed on the strategic road map of Spreads Category • AB governance structure has been set-up • Budget support of ~ 3.2 mio € (2010-2012) • Guarantee market access • Provide expertise in oil supply/sustainability • Present AB in high profile events (e.g. World Economic Forums) • Bring to partnership potential SC party willing to commit to AB vision and invest in developing AB into a sustainable business with local partners, infrastructure and knowledge
  • 26. Role of Partners: IUCN and ICRAF • IUCN International Union of Conservation of nature is a leading authority on the environment and sustainable development. – ~ 1.2 mio € budget support from SECO (2010- 2012) – Together with UEBT develop market differentiation tools • ICRAF World Agroforestry research centre applies science to generate knowledge about the complex role of trees in agricultural systems and their effects on livelihoods and the environment. – > 200,000 €/annum – Knowledge on varieties, yields and planting techniques
  • 27. Role of Partners: TNS • TNS TechnoServe helps entrepreneurial men and women in poor areas of the developing world to build businesses that create income, opportunity and economic growth for their families, their communities and their countries. – Social responsibilities – Mobilisation of communities and formation of co-operatives – Fund raising activities
  • 28. Key achievements in AB countries Ghana Tanzania NigeriaRegion Western, Central, Eastern Arc Mountains Cross River and Ashanti and Eastern (Usambara-Amani, River States Regions Korogwe, and Lushoto)Supply Chain team in place in place in placeAgro team in place in place in placePlanting know-how in place in place in placeNo of beneficiaries** 4,000 6,000 1,500% women 75 50 51Collection centres 200 40 402011 oil volume - mT 20 70 20 ** Farmers, collectors, transporters, processors, etc
  • 29. Key achievements in AB countries Fruit cleaning Drying TransportTo Market Access Milling Buying Collection Centres AB SC based on wild harvestingdemonstrated in Ghana Tanzania & Nigeria
  • 30. Market needs• Supply of raw material taking into account quantity/quality and competitive price• Estimated commercial needs exceed 100,000 tons of AB oil• Wild harvesting (very limited volumes) • 2011 100 mT AB oil • 2015 300 mT AB oilTherefore: Set-up a long term sustainable and profitable Business in Africa delivering >10,000 tons oil by 2020 (>60,000 tons oil by 2030)
  • 31. AB programme plan 2010-2012 • Verify/optimise technical and commercial feasibility for upscaling • Number of hectares to be planted in 2011 • Ghana: 300, Tanzania: 80 and Nigeria 150
  • 32. Challenges • Partners willing to commit for long-term (no quick wins) • Adhere to PPP principles from the start • New tree crop (farmers need to see it work) • Funding for setting up infra structure • Funding for planting > 8 mio trees • Access to finance for small holders • Government support • Improve (rural) infra structure • Recognition in the agricultural national plans • Management of diversity: organizational differences and cultural differences must not be underestimated. • Synchronizing strategies, work plans, key Performance indicators and speed of implementation. Market opportunity for AB is large, but still significant work to do
  • 33. External recognitionIn November 2010 Unilever wasgranted by the UEBT the“Biodiversity Award” for itscommitment to small scale farmingsystems and its partnership withenvironmental NGOs.
  • 34. Thank-youmaha.misbah@unilever.com