A project report on information and technology related

aspects of the company

“GREEN MANUFACTURING (UNILEVER)”

Submitted by
SHRINJAY MODI-258
CHANDNI LALANI-252
LAVINA MEHTA-254
DRASHTI SHAH-273
JAINIL DOSHI-244
NIKITA NAYI-260

Submitted to
DR. Gurmeet Singh.

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SR.NO. CONTENT PAGE NO.

1. Purpose values & principles of Unilever. 2-3

2. Unilever’s environmental management system. 4 to 6

3. Unilever’s manufacturing sustainable strategy. 7 to 10

4. Unilever’s world class manufacturing programme. 11-12

5. Unilever’s performance: Health & Hygiene. 13

6. Unilever’s performance: Nutrition. 14

7. Unilever’s approach. 15

8. Sustainable sourcing of Unilever. 16-17

9. Reducing environmental impacts. 18

10. External recognition. 18

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Purpose, Values and Principles of Unilever
Unilever’s Corporate Purpose states that to succeed requires “the highest standards of corporate
behaviour towards everyone we work with, the communities we touch, and the environment
on which we have an impact.”

Unilever’s values define how they do business and interact with their colleagues, partners,
customers and consumers. Unilever’s four core values are integrity, responsibility, respect and
pioneering. As they expand into new markets, recruit new talent and face new challenges, these
guide Unilever’s people in the decisions and actions they take every day.

1. Always working with integrity

Doing business with integrity has always been at the heart of Unilever’s corporate
responsibility commitments. Integrity defines how Unilever behave, wherever they are. It
guides them to do the right thing for the long-term success of Unilever.

2. Positive impact & continuous improvement

Unilever aim to make a positive impact through our brands, their commercial operations and
relationships, voluntary contributions and various other ways in which they engage with
business partners and society at large. They're also committed to continuously improving the
way they manage their impacts and their longer-term goal of developing a sustainable business.

3. Setting out Unilever’s aspirations

Unilever’s Corporate Purpose sets out their aspirations in running their business. It's
underpinned by their values and, equally importantly, their Code of Business Principles, which
since 1995 describes the operational standards everyone at Unilever must follow, wherever
they are in the world.

The Code of Business Principles is supported by 24 internal Code Policies that provide a
framework of simple Musts and Must Nots that apply to all employees and others working for
Unilever.

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 4. Working with others
Unilever wants to work with suppliers, agents, distributors and other business partners who
have values similar to theirs and uphold the same standards as they do. Unilever’s Responsible
Sourcing Policy and Responsible Business Partner Policy, aligned to Unilever’s Code of
Business Principles, seek to uphold twelve fundamental principles covering business integrity
including specific responsibilities relating to employees, consumers and the environment.

Unilever’s reputation for doing business with integrity and with respect for the interests of
those their activities can affect is an asset, just as real as their people and brands. Unilever’s
first priority is to be a successful business: that means investing for growth and balancing short
term and long term interests. It also means caring about their consumers, employees and
shareholders, their business partners and the world in which they live.

To succeed requires the highest standards of behaviour from all of them. Unilever wants their
Code of Business Principles, related Code Policies and third party compliance programme to
have a positive impact in day-to-day business: each one of us must uphold these at all times.

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UNILEVER’s environmental management system

Environmental management system provides a framework for continual environmental

improvement in their manufacturing sites. It helps them achieve the ambitious environmental
targets in the Unilever Sustainable Living Plan.

About Unilever’s management system

As well as local legislation, all of Unilever’s manufacturing and office sites companies must
comply with the Unilever SHE Framework Standards for occupational safety and health and
environmental care (SHE), and our Consumer Safety Policy.

Under Unilever’s Environmental Care Framework Standard, all Unilever operations must
establish a formal environmental management system (EMS), based on the ISO 14001
management systems standard.

This diagram shows the elements of Unilever’s EMS from policy, planning and implementation
to monitoring and review.

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Unilever’s businesses must also comply with more detailed standards and guidance documents.
Their standards cover areas such as third-party manufacturing, SHE management systems’
auditing, environmental performance reporting and the notification and investigation of SHE
incidents.

Detailed guidance documents are in place for areas such as environmental aspects evaluation,
incident investigation and audit protocols to assess compliance with their SHE Framework
Standards.

Assurance process
All their operating units conduct an annual review of business risks and compliance with
corporate policies such as the Unilever SHE Framework Standards and Consumer Safety
Policy. They also conduct a continual self-assessment of their operating controls.

The results of these processes are reported to the Corporate Risk Committee each year via a
Positive Assurance letter.

This assurance process is based on the principle that managers are accountable for all aspects
of corporate behaviour and performance in their units.

Unilever’s environmental indicators for manufacturing directly contribute to the achievement

of the nine commitments that make up the Unilever Sustainable Living Plan and they consider
them crucial for our business, so they will always be assured.

Internal and external auditing

Regular environmental audits help Unilever’s sites to achieve continuous improvement. They
use a mixture of internal and external audits.

All manufacturing sites not certified to ISO 14001 undergo an environmental audit at least once
every three years under our Environmental Care Framework Standard. Audits are carried out
by trained Unilever employees who are not employed at the site being audited. Unilever’s
World Class Manufacturing programme also includes an audit of environmental performance.

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Sites certified to ISO 14001 are audited annually by the relevant certifying body. As part of
their annual environmental performance reporting assurance process, Unilever’s independent
external auditors visit 10 manufacturing sites each year. They review each site’s processes for
environmental and occupational safety data collection, collation and validation.

Their purchase of certified renewable electricity is also subject to external audit annually.

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UNILEVER’s manufacturing sustainable strategy

They are reducing the greenhouse gas emissions, waste and water impacts of their
manufacturing operations as their business grows.

Eco-efficiency in manufacturing
Unilever want to make their manufacturing as efficient as possible – using fewer resources and
generating less waste. Their ambitious eco-efficiency targets focus on water, waste, energy and
CO2 and cover all 263 of our manufacturing sites in 71 countries.

Reducing the environmental impacts of their manufacturing – eco-efficiency – is a key part of

the Unilever Sustainable Living Plan (USLP). It enables them to reduce their environmental
footprint, as their business grows. It reduces costs and contributes to better overall factory
performance. The USLP sets out their greenhouse gas, water and waste reduction targets and
their ambition to play a leadership role in the transition to a zero carbon economy by becoming
carbon positive in our manufacturing by 2030.

By 2020, CO2 emissions from energy from their factories will be at or below 2008 levels despite
producing significantly higher volumes. This represents a reduction of around 40% per tonne
of production. Versus a 1995 baseline, this represents a 63% reduction per tonne of production
and a 43% absolute reduction.

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  Becoming carbon positive in manufacturing

By 2030 Unilever will become carbon positive in our manufacturing:

 They will source 100% of their energy across their operations from renewable resources by
2030
 They will source all their electricity purchased from the grid from renewable resources by 2020
 They will eliminate coal from their energy mix by 2020
 In order to achieve their target of carbon positive by 2030, Unilever intend to directly support
the generation of more renewable energy than they consume and make the surplus available to
the markets and communities in which they operate.
 All newly built factories will aim to have less than half the impact of those in their 2008
baseline.

 Reduce water abstracted by manufacturing

By 2020, water abstraction by Unilever’s global factory network will be at or below 2008
levels, despite significantly higher volumes. This represents a reduction of around 40% per
tonne of production. Versus a 1995 baseline, this represents a 78% reduction per tonne of
production and a 65% absolute reduction. Unilever will focus in particular on factories in
water-scarce locations. Furthermore, all newly built factories will aim to abstract less than half
the water of those in our 2008 baseline.

 Reduce waste from manufacturing

By 2020, total waste sent for disposal will be at or below 2008 levels despite significantly
higher volumes. This represents a reduction of around 40% per tonne of production. Versus a
1995 baseline, this represents an 80% reduction per tonne of production and a 70% absolute
reduction. Furthermore, all newly built factories will aim to generate less than half the waste
of those in Unilever’s 2008 baseline.

Over €700 million in cumulative cost avoidance since 2008

Eco-efficiency is not just about reducing our environmental footprint – it also makes good
business sense. Unilever’s collect financial information through their Environmental

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 Performance Reporting system for all manufacturing sites and by each energy and water type,
which enables them to measure the economic benefits of their eco-efficiency programme. Since
2008, Unilever have achieved a cumulative cost avoidance of over €700 million from eco-
efficiency in their factories:

 Water - around €60 million

 Energy - around €405 million
 Waste and materials – around €250 million (waste disposal – around €15 million; Materials -
around €240 million)

How are they achieving their targets?

To achieve its ambitious manufacturing eco-efficiency targets, Unilever is focusing on four
areas of change:

1. Reducing the impact of new factories and new production lines

2. Reducing the impact of their existing factories
3. Increasing the efficiency of their global and regional procurement processes
4. Embracing new technologies

They aim to repeat technology implementation once proven to locations where it makes
obvious sense. Not only does this reduce equipment purchasing and design costs, but leverages
their global scale to speed up implementation, rolling out what they learn in one site to others
across their business and raising awareness among their colleagues.

Introducing Eco-Friendly production line:

As their business grows they need new factories and production lines. They integrate eco-
efficiency into the design of new facilities so that they can produce more using fewer resources.
They are also following below mentioned steps:

 Scaling up their use of renewable energy, such as installing solar plants on sites and producing
biofuels through recycling food waste, such as discarded corn cobs.
 Designing their buildings to minimise heating and cooling needs, for example by improving
insulation and minimising solar gain to reduce the energy required for cooling.

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 Installing energy efficient equipment on their production lines.
 Using lower-carbon fuels and on-site renewable energy generation like biomass boilers and
furnaces.
 Optimising the distribution of energy, waste and water.

All their new facilities must achieve certification to recognised green building standards such the
Green Building Council’s LEED and BREEAM. As a minimum new factories must achieve LEED
Silver Certification. In 2016 they achieved minimum LEED certification on five projects, four of
which attained the higher Gold standard.

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UNILEVER’s World Class Manufacturing programme
More than half of Unilever’s production cost is covered by their World Class Manufacturing
(WCM) Programme. WCM, which builds on their existing Total Productive Maintenance
(TPM) tools and techniques, focuses on integrating sustainability through continual
improvement and investment in efficient equipment and new technologies. This ranges from
small projects to more significant investments such as replacing boilers and air compressors.
They have ring-fenced capital investment for projects that reduce energy, CO2, water use and
waste that deliver the strongest environmental and financial benefits.
Their Aguai factory in Brazil is an example of world class sustainable manufacturing. To
ensure that energy is used efficiently, the factory is fitted with skylights to reduce the amount
of artificial light needed and ultra-low energy LED lights which are sensor operated. Solar
panels produce 100% of the entire needed for the administration block which is modular and
flexible in design, allowing for panels to be interchanged so the building can be easily adapted
to meet future requirements.

They set improvement targets for every factory and measure their performance against their
sustainability performance indicators, to ensure that sustainability is part of what they do each
day and that the link between eco-efficiency and better factory performance is clear.

As part of their drive to encourage changes at site level and share ideas between colleagues,
Unilever has identified a series of small actions that their sites can implement to help change
behaviour such as awareness campaigns and standardised metering, monitoring and targeting.
When added together, these actions make a significant difference. Their Small Actions Big
Difference (SABD) fund enables their factory teams to turn their good ideas into reality.
Projects are evaluated on the basis of environmental benefit and financial return, and using
their ‘design once, deploy everywhere’ approach where possible, Unilever rolls out the best
ideas to other factories around the world.

In 2016 they invested €26 million in 307 energy, CO2 and water saving projects through the
SABD fund. Together the projects will reduce their global CO2 emissions by 3%, global energy
use by 2% and water use by 3%. The projects will achieve an average payback period of less
than two years.

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  Training, awareness and ‘proud practices’
Everyone in Unilever Company has a part to play in reaching the targets in their Unilever
Sustainable Living Plan and they can learn a lot from each other.

Unilever shares its successful eco-efficiency projects, known as ‘Proud Practice’ projects, with
other factories to inspire colleagues on the environmental benefits and encourage them to
implement similar ideas. Information about more than 170 Proud Practice projects has been
shared globally so far.

They also raise awareness and share best practices through their Simple Solutions programme
part of their environmental roadmap for good manufacturing practices.

 Efficient purchasing
By consolidating their procurement through global, regional or national contracts, they can
achieve environmental improvements in a cost-effective way. They are scaling up their use of
100% renewable grid electricity.

By end-2016, 97 of their manufacturing sites across 28 countries were using 100% renewable
grid electricity. Where it is not possible to produce their own renewable electricity on their
sites, they make direct purchase agreements with large-scale solar or wind installations, and
with small-scale hydropower schemes. For example, in 2016 around 90% of the electricity used
across their factories, distribution centres and offices in Mexico has been produced from wind
power.

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UNILEVER’s performance: Health and Hygiene
Addressing social challenges is good for society - and it's good for business. Many of
Unilever’s programmes drive growth directly - their oral care, hand-washing and sanitation
programmes are good examples. When more people brush their teeth, use soap regularly, and
have access to sanitation, toothpaste, soap and toilet cleaner consumption increases.

They drive many of their health and hygiene initiatives through the brands in their Personal
Care category. This is the largest product category in their business with €20.2 billion turnover
in 2016 and accounting for 38% of their Group turnover and 48% of their operating profit. It
is home to brands such as Dove, Signal and Lifebuoy. Lifebuoy soap has been Unilever’s
fastest-growing brands over 2010-2016 and is the world's number one anti-bacterial soap
brand.

Unilever’s Home Care category generated turnover of €10 billion in 2016, accounting for 19%
of their Group turnover. It includes their water purifiers PureIt and Qinyuan as well as
Domestos, their market-leading toilet cleaning brand which has a strong presence in emerging
markets. Domestos is helping to give people access to improved sanitation and driving market
development for Unilever’s business. As the more people gain access to a toilet, the greater the
potential for them to purchase toilet cleaners. Domestos grew by 9.7% in 2016.

By the end of 2016 they had reached around 538 million people† through their programmes on
hand washing, safe drinking water, sanitation, oral health and self-esteem.

 Around 55 Million people reached with safe drinking water; 85 Billion litres since
2005.
 Over 2010-2016, LIFEBUOY’s hand-washing programmes reached 379 Million
people.
 6.2 Million people gained improved access to a toilet over 2015-2015.
 75 Million people reached with oral health programmes since 2010.
 23 Million received help via DOVE self-esteem programmes over 2004-2016.

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UNILEVER’s performance: Nutrition
Their Sustainable Nutrition strategy is their roadmap for action on the UN Global Goals for
Sustainable Development, with consumers at its core. This means producing safe, high-quality,
nutritious food that is accessible to all, with respect for the environment and less waste,
benefiting the livelihoods of food growers and helping to improve the nutrition and well-being
of consumers.

They put consumers at the heart of everything they do, working to build consumer trust through
transparency as well as delivering the targets set out in the Unilever Sustainable Living Plan.
They do this by focusing on better products, better diets and better lives.

In 2016, 35% of their portfolio by volume met the highest nutritional standards. This is based
on an assessment of every single product in all countries, and across their total retail and
foodservice business.
 35% of Unilever’s foods met the highest nutritional standards in 2006, based on
globally recognised dietary guidelines.
 61% of Unilever’s foods met their 5G per day target for salt intake.
 21% sugar across all Unilever’s sweetened tea-based beverages reduced since 2010.
 91% of Unilever’s packaged ice cream contained 250 calories or fewer per portion.

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 UNILEVER’s approach
Billions of people still lack access to effective hygiene and safe drinking water. Over 1.4
million children under five die each year from diarrhoea and pneumonia, with many of these
deaths caused by the inter-related issues of poor sanitation, hygiene and unsafe water. By 2020
Unilever will help more than a billion people to improve their health and hygiene. This will
help reduce the incidence of life-threatening diseases like diarrhoea.

More than 1.9 billion adults – 39% of the global population – are overweight and 13% are
obese. By 2020, Unilever will double the proportion of their portfolio that meets the highest
nutritional standards, based on globally recognised dietary guidelines. This will help
hundreds of millions of people to achieve a healthier diet.

Unilever’s approach encompasses health and hygiene and nutrition. They are uniquely placed
to pursue their goal as they are the only multinational consumer goods company with a
portfolio across home and personal care, food and beverages. The business case is
compelling. They have seen that by promoting hygiene and nutritious food, sales increase.

Unilever’s focus is on:

 Selling appealing products with leading-edge health, hygiene and nutrition benefits.
 Encouraging people to take action through behaviour change programmes.
 Advocating to bring these issues higher up the policy agenda.
 Working with partners dedicated to health, hygiene and nutrition, to broaden their impact.
 Tackling climate change by halting deforestation.
 Championing sustainable agriculture and food security.
 Helping consumers use less water, less energy and recycle more.
 Making manufacturing and distribution more eco-efficient.
 Advocating public policy to tackle climate change.

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Sustainable sourcing of UNILEVER
Sourcing their agricultural raw materials sustainably can help Unilever support climate action
and improve people's livelihoods, while improving quality, strengthening their supply chains,
and giving consumers brands they can trust.

The agriculture sector is vital - to the world, and to Unilever’s business. The world needs to
double food production by 2050 to help feed a population that could exceed 9 billion people -
and many of the raw materials they use come from farms or forests.

Sustainable agriculture is at the heart of Unilever’s approach to the climate and development
challenge: Unilever believe that sustainable agricultural practices are a vital way to help meet
the aims of the Global Goals of eradicating hunger and poverty, while making their supply of
ingredients more resilient. Sustainable farming methods have the potential to increase yields,
mitigate the effects of climate change, and provide economic and social benefits to farmers,
their families, and the surrounding communities.

Unilever is also developing traceability in their supply chain through their Sustainable
Agriculture Code. Knowing where their raw materials come from enables Unilever to work

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with others to co-create responsible standards, and to make a positive impact on the livelihoods
of the people whose work in Unilever supply chain is so important to their success.

Unilever is committed to sourcing 100% of their agricultural raw materials sustainably.

Sourcing sustainably helps secure Unilever’s supplies by reducing risk and volatility in their
raw material supply chains. It also opens up opportunities for innovation: by focusing on
people’s sustainable living needs and consumer preference, they can build stronger brands.

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 Reducing environmental impact
By 2030 Unilever’s goal is to halve the environmental footprint of the making and use of their
products as they grow their business.

 Decoupling growth from our environmental impact

Our vision is to grow our business whilst decoupling our environmental impact from our
growth. We consider the reduction of our greenhouse gas (GHG), water and waste impacts
within our own manufacturing and operations and beyond, across the value chain. We also aim
to source all our agricultural raw materials sustainably.

Reducing the environmental impact of how consumers use our products continues to prove
difficult, as our performance on reducing GHG across the value chain demonstrates. However,
in those areas where we have control over our impacts – such as our own manufacturing - we
are making excellent progress.

 Unilever’s performance: GHG, water, waste & sustainable sourcing

Unilever’s environmental targets for GHG, water and waste are expressed on a ‘per consumer
use’ basis - this means a single use, portion or serving of a product, such as the lifecycle impacts
of one load of washing. Our 2016 performance is measured against a baseline of 2010.

External Recognition
Unilever’s progress on eco-efficiency has been recognised by external indices:

 Dow Jones Sustainability Index (DJSI): Unilever were awarded leadership of the
Household & Personal Products Industry Group in DJSI, with a score of 92. 2016 was the first
year that Unilever was classified in this Industry Group. They had previously been awarded
leadership of the Foods Sector for 15 out of 16 years.
 CDP Climate 2016: Unilever achieved a grade A score and were included in the CDP
Climate A List for the fifth year running, following 100A score in 2015.
 CDP Water 2016: Unilever achieved an A grade score and were included in the CDP Water
A List.

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