The business case
As we implement our Plan we are recognising that the business case for embedding sustainability into our brands is strong.
- Consumers want it. A small but growing number of consumers around the world are seeking the assurance that the products they buy are ethically sourced and responsibly made. A more sustainable brand is often a more desirable brand.
- Retailers want it. Many retailers have sustainability goals of their own and need the support of suppliers like Unilever to implement them. This collaboration is deepening the relationships we have with our customers.
- It fuels innovation. Sustainability is a fertile area for both product and packaging innovation. It is allowing us to deliver new products with new consumer benefits.
- It helps develop new markets Over half Unilever’s sales are in developing countries, which often face the greatest sustainability challenges. New products that help people adapt to the changing world will drive growth.
- It saves money. Managing our operations sustainably reduces energy, minimises packaging and drives out waste. It not only generates cost savings, it can also save the consumer money.
- It inspires our people. Our vision to create a sustainable, growing business is motivating for our employees and appealing to people who are considering joining Unilever.
Our business progress
As a business we cannot choose between growth and sustainability. We need to grow if we are to have the resources to invest in renewable energy, sustainable agriculture and product innovation.
The Unilever Sustainable Living Plan is helping drive both growth and profitability.
- The brands which are building sustainability into their offer all performed well. For example, Lifebuoy, our concentrated liquid detergents and Comfort all grew double digit in 2011.
- The eco-efficiency programmes in our factories have continued to deliver good levels of savings.
- Our efforts to reduce the amount of packaging we use have also cut costs.
In 2011 Unilever’s underlying sales growth was 6.5%, its market shares improved and its operating margin was broadly stable.
We see no conflict between sustainable consumption and profitable growth: they are mutually supportive.
Embedding sustainability
Only by embedding sustainability into our business will we succeed in reaching our targets. We are doing this in a number of ways.
- Our business strategy now includes sustainability at its heart.
- We are measuring progress. Our brand and functional teams all have sustainability scorecards. These are reviewed quarterly by the Unilever Leadership Executive.
- We are starting to link progress to reward An increasing number of managers, from the CEO downward, have sustainability goals as part of their compensation.
- We are building sustainability into innovation. We have a set of tools to evaluate the environmental impacts of new products.
- We have appointed 65 sustainability champions to cover every key function, category and country across the business.
- We are building expertise in behavior change. Unilever’s Five Levers for Change methodology helps our brand and R&D teams design effective programmes.