SDGs: PIONEERING SOLUTIONS FOR INDIA
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Our purpose in Unilever is to make ‘sustainable living commonplace’. We believe that businesses who integrate sustainability into their business strategy will deliver superior shareholder value in the long run.
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SDGs: PIONEERING SOLUTIONS FOR INDIA
- 1. SANJIV MEHTA Chairman & Managing Director - Hindustan Unilever Limited President - Unilever South Asia 31st May 2019 1 SDGs: PIONEERING SOLUTIONS FOR INDIA
- 2. 22 INDIA’S LARGEST FMCG COMPANY 2
- 3. *HUL performance as per India local reporting on comparable basis ** Market capitalization converted to USD based on rate as of 24th May 2019 HUL performance Our footprint Recognition Nearly every household uses one or more of our brands Our brands are available in 8mn+ stores 45 billion pieces sold every year 10% CAGR over 10 years* 740 bps EBITDA improvement ‘Employer of choice in the industry’ for 10 years in a row (2009-2018) Among the top 5 most valuable companies in India with market cap of $54b** #8 Globally and #1 in India 15 HUL brands in India’s Top 50 Most Trusted Brands HINDUSTAN UNILEVER LIMITED - A $ 5 Bn POWERHOUSE 3 3
- 4. Our Purpose todayFounder’s Vision in the 19th century to make cleanliness a common place; to lessen work for women; to foster health and contribute to personal attractiveness, that life may be more enjoyable and rewarding for the people who use our products” - William Hesketh Lever, 1890 DOING WELL BY DOING GOOD 4
- 6. BRANDS WITH PURPOSE GROW 6
- 7. BUILDING BRANDS WITH PURPOSE 7
- 8. If the colours of Holi brings people together then dirt is good. BRANDS WITH PURPOSE – SURF EXCEL 8
- 9. Educates and equips youth with skills in English training. 5.22 lakhs youth benefited An online platform to help women with career guidance, skill training and job opportunities. >6 lakhs participants enrolled Fair & Lovely Foundation Rin Career Ready Academy BRANDS AS A FORCE FOR GOOD OUR INITIATIVES 9
- 10. COMPANIES WITH PURPOSE LAST 10
- 11. OUR AREAS OF FOCUS FOR SUSTAINABILITY Health and well-being Sustainable sourcingEnhancing livelihoods Plastic waste management Water SDG focus areas • Climate action • Life on Land SDG focus areas • Good health & well-being • Clean water & sanitation SDG focus areas • Decent work & economic growth SDG focus areas • Climate action • Life on Land • Partnership for the goals SDG focus areas • Climate action • Life on Land • Life below water • Responsible consumption & production 11
- 12. India will be short of 50% of water needed by 2030 India became the largest extractor of groundwater in the world in the 1980s… India’s groundwater abstraction has now reached 25% of the global annual total Development in ground water withdrawal in selected countries INDIA’S WATER CHALLENGE 12
- 13. Teeth & Hands Drinking Shower CookingDish Washing Laundry Flush WATER IS CORE TO OUR BUSINESS 13
- 14. SUVIDHA CENTER INNOVATIVE SOLUTIONS TO SANITATION PROBLEMS Fresh water used for brushing, washing, bathing etc. Waste water from these activities becomes input for flushing toilets Circular economy principle used to reduce water usage Break even achieved and now entering into Partnerships & Collaborations to scale up OUR INITIATIVES 14
- 15. HINDUSTAN UNILEVER FOUNDATION >7.5 million person-days of employment created OUR INITIATIVES >700 billion litres of water conservation potential created Partnership with 23 NGOs 0.8 million tonnes of agriculture and biomass production generated 15
- 16. OUR INITIATIVES Lifebuoy handwashing programme Promotes the benefits of handwashing with soap among people 680 lakhs people reached Domex toilet academy Access to sanitation in rural communities 2.8 lakhs people reached Swacch Aadat curriculum Teaches students of class 1 - 5 about the three clean habits 5.5 lakhs students reached Start a little good Raise awareness about the importance of water DRIVING BEHAVIOUR CHANGE 16
- 17. ENHANCING LIVELIHOODS OUR INITIATIVES Project Shakti - Women micro-entrepreneurs in rural India >1 lakh Shakti entrepreneurs Project Prabhat – Developing communities around HUL’s sites 29 lakhs Prabhat beneficiaries 17
- 18. HUL INITIATIVES 100% of tomatoes sustainably sourced > 65% of Tea sustainably sourced SUSTAINABLE SOURCING 18
- 19. REDUCE REUSE RECYCLE RECOVER OUR COMMITMENT By 2025, 100% of our plastics packaging will be reusable, recyclable or compostable & 25% of our plastic packaging will come from recycled plastic content REDUCING PLASTIC WASTE 19
- 20. PEOPLE WITH PURPOSE THRIVE 20
- 21. Build diverse and inclusive workplace +2000 bps improvement in gender balance Embracing inclusion beyond gender and breaking stereotypes Focus on holistic wellbeing People with purpose Physical and mental wellbeing HUL Awarded ‘Unilever Health and Wellbeing’ Gold Category Award 2010 2018 Gender Balance 20% 40% OUR INITIATIVES DIVERSITY, INCLUSION & WELLBEING 21
- 22. *Based on market capitalization as at 24th May 2019; USD/INR at 69.58 $ 17 bn 2013 $ 54 bn Current*+ $ 37 bn 3.2X 26% CAGRMARKET CAPITALISATION 2013 2014 2015 2016 2017 2018 2019 HUL BSE SENSEX BSE FMCG SECTOR WHEN PURPOSE LEADS PROFITS FOLLOW 2014 ONWARDS HUL STOCK HAS OUTPERFORMED THE MARKET 22
- 23. WE DO NOT INHERIT THE EARTH FROM OUR ANCESTORS WE BORROW IT FROM OUR CHILDREN
Editor's Notes
- There is no business case in enduring poverty and climate change. Businesses cannot thrive or survive in the long term without achieving the UN Sustainable Development Goals (SDGs).
- Unilever’s birth celebrated the belief that business must have purpose beyond profit. Sunlight soap built a business out of relieving the burden of washing in Victorian England. And even today in India, Lifebuoy helps save lives when it spreads the simple message that washing hands with soap fights diarrhoea and other diseases.
- Rin Career Ready Academy Rin Career Ready Academy aims to inspire, educate and equip the youth from modest backgrounds with skills in English training delivered step-by-step through online or mobile phone. The academy offers a ‘Tele-Conferencing’ module where students can speak to a ‘real’ teacher instead of an automated voice. We also have a web course available on www.rin.in. So far, over 5,20,000 people have benefitted from this programme. Fair & Lovely Career Foundation: Fair & Lovely Career Foundation is a mobile platform designed to help women create an identity for themselves through career guidance, skill-based courses and job opportunities. The platform addresses multiple educational barriers that girls and women in India face including limited access to transportation, lack of parental permission, high cost of courses and inadequate availability of local institutes. Fair & Lovely Career Foundation is powered by a range of high-quality education and career guidance partners including established edtech companies like NIIT, edX, English Edge and start-ups such as testbook.com and idreamcareer.com Over 600,000 women have registered to date on the platform with approximately 200,000 women accessing career guidance resources and online courses respectively and 50,000 women opting for job-oriented tests and profile builder.
- According to a 2018 report by NITI Aayog, India faces the worst water crisis in its history, and 21 Indian cities will run out of groundwater by 2020; 40% of the population will have no access to drinking water by 2030. Clearly, there is a need for improved management of water resources and HUL wants to be a part of the solution rather than being a part of the problem.
- In a country like India, consumers use our products throughout the day. For e.g. brushing in the morning, bathing, having tea/coffee and so on. All our brands use water.
- ‘Suvidha’ centre is first-of-its-kind urban water, hygiene and sanitation community centre in one of the largest slums in Mumbai. The community centre provides drinking water, sanitation, handwashing, shower facilities and laundry services at an affordable cost. The centre uses circular economy principles to reduce water use. The centre was built in partnership with the Municipal Corporation of Greater Mumbai and Pratha Samajik Sanstha, a community-based organisation. The centre caters to over 1,500 people in the slum. We have partnered with HSBC to scale up the Suvidha model in Mumbai.
- Linkage to SDG no. 13 – Climate Action: Take urgent action. Water conservation reduces carbon emissions, contributes to greenhouse gases and helps prevent climate change. Considering the challenge of India being a water scarce region, HUL has identified water conservation as a focus area of intervention. In 2010, we set up not-for-profit (fully owned subsidiary of HUL) - Hindustan Unilever Foundation in 2010. Through its projects, HUF has created a collective and cumulative water potential of more than 700 billion litres across India till date.
- Lifebuoy Handwashing Programme: The threat of child mortality due to diarrhoeal and respiratory diseases still looms large on India. Around 0.9 million children under the age of five die due to these diseases in India. Handwashing with soap has been cited as one of the most cost-effective solutions to improve health & hygiene and reduce infant mortality. Through Lifebuoy’s handwashing behaviour change initiatives, we promote the benefits of handwashing with soap at key times during the day and encourage people to sustain good handwashing behaviours. In 2018, we reached out to 1.3 million people directly through the initiative. Since inception, we have reached out to over 68 million people in India. Pureit Safe Drinking Water According to statistics, 67% of Indian households do not treat their drinking water, even though it could be chemically or bacterially contaminated. HUL’s Pureit provides safe drinking water without the hassles of boiling or a continuous tap water supply and provides complete protection from all water-borne diseases. Globally, so far, Pureit has cumulatively provided over 106 billion litres of safe drinking water. In India, Pureit has provided over 89 billion litres of safe drinking water till date. We have also partnered with microfinance institutions (MFIs) to provide safe drinking water for people at the bottom of the income pyramid. Domex Toilet Academy (DTA) Launched in 2014 as a unique market-based entrepreneurial model to support the government of India’s Swachch Bharat Mission, and improve sanitation coverage across the country, the Domex Toilet Academy (DTA) trained 600 micro-entrepreneurs and masons to help build and maintain toilets; provide access to micro-financing and create demand for toilets in low-income households impacting over one million people. In 2017, DTA pivoted its model to move the focus from ‘Access’ to ‘Usage’ through a behaviour change model. DTA partnered with PSI India to reach out to more than 0.28 million people in 101 villages in Chittoor, Andhra Pradesh with strategic interventions and communications. This behaviour change model has shown early encouraging results with a sharp increase in toilet usage and cleaning across the age group and across gender. Last year Domex launched ‘Pick Up The Brush’ campaign featuring male movie superstars to lead a movement to unstereotype the act of toilet cleaning and urging everyone to take responsibility to keep the toilets clean. As the member of Toilet Board coalition, we are supporting “Toilet Accelerator” programme to help start-ups in the space of sanitation to pitch, deploy and scale up their innovations/business model.
- Project Shakti aims to provide livelihood enhancing opportunity to women micro-entrepreneurs in rural India. Shakti entrepreneurs (SEs) are given training for familiarisation with HUL’s products and basic tenets of distribution management. HUL has a team of Rural Sales Promoters (RSPs) who coach and help SEs in managing their business. Project Shakti has more than one lakh micro-entrepreneurs across 18 states.
- Linkage to SDG no. 15 Life on Land – Protect, restore & promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt & reverse land degradation and halt biodiversity loss Unilever is the second largest buyer of agricultural raw materials globally. By 2020, we aim to source 100% of our agricultural raw materials sustainably. SUSTAINABLE FRUIT AND VEGETABLES 100% of tomatoes used in Kissan ketchup continued to be sourced sustainably. The Public-Private Partnership (PPP) project, which began in 2012 between HUL and Maharashtra Government for sustainable sourcing of tomatoes, has become self-sustaining since 2015. In 2018, HUL continued to provide these farmers with a buy-back guarantee for their produce. HUL also offers farmers knowledge and expertise in sustainable agriculture practices in tomato cultivation. This includes the latest agricultural techniques, irrigation practices and recommendation of the right type of seeds. Around 8,000 farmers across the country grow tomatoes for us sustainably. SUSTAINABLE TEA A total of 586 tea estates in India are trustea verified and a total of 290 tea estates in India are Rainforest Alliance certified. In 2018, 65% of the tea sourced from India for Unilever brands was from sustainable sources. SUSTAINABLE PALM OIL In 2016, Unilever refreshed its Palm Oil Policy and brought forward this target from 2020 to 2019. We also stopped buying Green Palm certificates. In 2018, we continued our process of buying RSPO (Roundtable on Sustainable Palm Oil) certified palm oil to achieve the ambition of reaching 100% sustainable sourcing by 2019. We have signed multiple partnerships to drive market transformation and traceability of the supply chain. These partnerships also focus on commitments to the principles of no deforestation, no development on peatlands, and driving positive economic and social impact for people and communities. Our policy principles include smallholder farmers and women, commit to no exploitation of people or communities, and transparency.
- We have committed that 100% of our plastic packaging will be reusable, recyclable or compostable by 2025. HUL has done significant work in this area. We have collected and safely disposed of more than 20,000 tonnes of plastics in partnership with NGOs and start-ups in more than 20 cities across India. We are also working closely with the government and other partners such as the United Nations Development Programme (UNDP) for end-to-end pilot projects for plastic waste management. We have also partnered with international organisation Xynteo and have developed a curriculum “Plastic Safari” to create awareness and drive behaviour change on waste segregation and recycling among school children and people in housing societies. The pilot conducted in Mumbai has reached nearly 30,000 people so far.
- HUL Wellbeing Progress: Our Wellbeing Journey began in 2015, based on the 4 pillar Unilever Wellbeing framework with 12000 THRIVE employees attending workshops, and those conversations have been going on, with reinforcement to impact employee health behavior/ address tendency to fall “off the wagon” and embrace SELFCARE Our Preventive and emergency healthcare and hospitalization is well in place for over a decade/ Well-managed local Health systems and World Class OHCs serve the geographic spread and demographically diverse employee groups. This is supplemented by Positive Health, Nutrition and Physical Fitness programs and external expert sessions to build better lifestyle, and promote and healthy and happy workforce. We believe while awareness has increased in Corporate India, we need to get ahead of the market on Health and Wellbeing (H&W) to reap long-term benefits of investing in better wellbeing for better performance…. We are on track for our ambition to shift from Reactive to Proactive Healthcare We will tap eKincare Data to get Actionable Insights We have invested in enabling Employee Assistance Programs and mental health services for all our people Shift from Piece-meal to Holistic Wellbeing which leads to healthier and happier workforce- enabling the power of purpose and choices to drive employees towards the goal of #SELF-CARE. Supporting mental health is a key enabler for managing the palpable stress the external environment puts on our people.