Targets & performance

Our commitment

By 2020 we will source 100% of our agricultural raw materials sustainably: 10% by 2010; 30% by 2012; 50% by 2015; 100% by 2020.

Our performance

We have continued to make good progress. In 2010 14% of all our agricultural raw materials were sourced sustainably. This increased to 24% at end 2011.

We will focus first on our top ten agricultural raw material groups, which account for around two-thirds of our volumes. These are palm oil; paper and board; soy; sugar; tea; fruit and vegetables; sunflower oil; rapeseed oil; dairy ingredients; and cocoa.

What matters most

Sourcing palm oil and paper and board sustainably.

  • 0 achieved
  • 12 on-plan
  • 1 off-plan
  • 0 missed target

Our approach

Agriculture and forestry are the largest contributors to global greenhouse gas emissions and are major drivers of climate change.

Half of Unilever’s raw materials come from either farms or forests. We are committed to sourcing sustainably all our agricultural raw materials by 2020.

As well as protecting the planet’s natural resources, sustainable sourcing helps us to manage a core business risk by ensuring security of supply for the long term.

Our approach is set out in the Unilever Sustainable Agriculture Code.

Sustainable sourcing can contribute to better incomes and livelihoods for farmers and their workers. It also helps to maintain soil fertility, enhance water quality, reduce greenhouse gas emissions and protect biodiversity.

Our business is part of a complex supply chain, including farmers and plantation owners as well as processors, refiners and traders of raw materials. To meet our target we will need to work closely with all of them to transform farming practices and encourage a wider move towards sustainability throughout the supply chain.

In measuring progress on sustainable sourcing, we are dependent on the reliability and accuracy of the certification bodies we use.

Sustainable palm oil

6.1We will purchase all palm oil from certified sustainable sources by 2015.

  • 64% of palm oil purchases from sustainable sources by end 2011, compared to 37% in 2010.

More on sustainable palm oil

Of the 64% certified sustainable palm oil we bought, most was in the form of GreenPalm certificates. In parallel we have made a start on developing segregated streams.

GreenPalm certificates support the production of palm oil certified to the standards of the Roundtable on Sustainable Palm Oil. In 2011 Unilever remained the biggest single buyer of GreenPalm certificates globally.

Sustainable paper and board

6.2We will source 75% of the paper and board for our packaging from certified sustainably managed forests or from recycled material by 2015. We will reach 100% by 2020.

  • An estimated 60% of our paper and board came from certified sustainably managed forests or from recycled material by end 2011.

More on sustainable paper and board

Our approach is to maximise the volume of recycled material that we use. When we have to use virgin material we will do so from certified sources with full chain of custody.

In the United States, all Ben & Jerry’s ice cream cups are certified via the Forest Stewardship Council and all Lipton tea packs in Europe are being progressively certified via the Programme for the Endorsement of Forest Certification.

Sustainable soy

6.3We will source sustainably all soy beans by 2014 and all soy oils by 2020.

  • For soy beans, we are exploring the most appropriate sustainability standard for this crop. 8% of soy oil sourced sustainably in 2011: 4.5% in the form of RTRS certificates and 3.5% certified against the ProTerra standard.

More on sustainable soy

We use soy bean extract in our AdeS drinks and soy oil in spreads, mayonnaise, dressings and pasta sauces. We purchased some of the first Round Table on Responsible Soy (RTRS) certificates when they became available in June 2011. We believe purchasing certificates will be important to stimulate demand and encourage farmers to invest in sustainable agricultural practices.

Sustainable tea

6.4By 2015 we aim to have the tea in all Lipton tea bags sourced from Rainforest Alliance Certified™ estates. By 2020 100% of Unilever’s tea, including loose tea, will be sustainably sourced.

  • 57% of our Lipton tea bag blends contained sustainable tea at end 2011: 25% was fully Rainforest Alliance Certified™ and 32% contained a proportion of Rainforest Alliance Certified™ tea en route to full certification. Overall, 28% of the tea purchased for all our brands was sourced from Rainforest Alliance Certified™ farms.

More on sustainable tea

What did KTDA get-page 16 right-218In 2007 we were the first major tea company to commit to sustainable sourcing of tea on a large scale. We are on track to achieve our 2015 milestone and 2020 target.

Our success is dependent on changing farming practices among our tea producers. In Kenya 250,000 farmers have now undertaken training in farmer field schools. By the end of 2011 we had also trained nearly 50,000 more farmers in Rwanda, Sri Lanka, Indonesia and Turkey.

Sustainable fruit and vegetables

6.5We will purchase 100% of our fruit from sustainable sources by 2015.

6.6We will purchase 50% of our top 13 vegetables and herbs from sustainable sources by 2012 and 100% by 2015. This accounts for over 80% of our global vegetable and herb volume.

  • We made steady progress in helping our fruit suppliers to move towards sustainable practices. We expect to make our first purchases of sustainable fruit in 2012.
  • 25% of vegetables and herbs purchased from sustainable sources by end 2011.

More on sustainable fruit and vegetables

In 2011 we rolled out an updated version of Quickfire, our self-verification tool, which helps suppliers assess whether their practices meet the requirements of the Unilever Sustainable Agriculture Code.

By the end of 2011, over half our suppliers of fruit and vegetables had already committed to self-verification.

Knorr Fund helps boost supplier sustainability

PartnerschaftLogo_ENGLISH-218In 2010 Knorr established a €1 million Partnership Fund to help suppliers improve their sustainability practices. In 2011 the Fund set up 28 projects with suppliers in ten countries. These projects are already showing results.

For example, two grants were awarded to Spanish tomato grower, Agraz. As well as cutting water use, Agraz has supported biodiversity by creating an environment where birds such as white storks and black-shouldered kites can thrive. Agraz’s farm has now been designated a Knorr ‘Landmark Farm’.

Sustainable cocoa

6.7We will source cocoa sustainably for our Magnum ice cream by 2015. All other cocoa will be sourced sustainably by 2020.

  • 37% of cocoa for Magnum sustainably sourced through Rainforest Alliance certification by end 2011. Overall, 21% of all cocoa sourced sustainably.

More on sustainable cocoa

We buy Rainforest Alliance Certified™ cocoa for Magnum and Fairtrade cocoa for Ben & Jerry’s ice cream.

We have been expanding our Rainforest Alliance certification programme in West Africa. This will boost sustainable agricultural practices in the region. After just one year, over 10,000 farmers have achieved Rainforest Alliance certification.

In 2012 we signed a long-term partnership agreement with Barry Callebaut, a supplier of high-quality cocoa products. This will create a step change in our ability to source sustainable cocoa.

Sustainable sugar

6.8We will source all sugar sustainably by 2020.

  • Around 1% of cane sugar sustainably sourced by end 2011.

More on sustainable sugar

We purchase two types of sugar – cane sugar and beet sugar.

Cane sugar comes largely from tropical regions and accounts for the majority of our purchases. We have joined Bonsucro (a multi-stakeholder body dedicated to the sustainable cultivation of sugar cane), and have encouraged our suppliers to do the same.

Our beet sugar suppliers are mostly European. During 2011 we assessed their practices against the Unilever Sustainable Agriculture Code.

Sustainable sunflower oil

6.9We will source all sunflower oil sustainably by 2020.

  • In 2011 we scoped pilot projects for sustainably sourced sunflower oil in several regions but have made less progress than we anticipated.

Sustainable rapeseed oil

6.10We will source all rapeseed oil sustainably by 2020.

  • We bought our first quantities of sustainably sourced rapeseed in 2011, around 5%. This came about as a result of a pilot study in Germany which we started in 2009.

Sustainable dairy

6.11We will source all dairy produce sustainably by 2020.

  • 10% of dairy produce sustainably sourced by end 2011.

Fairtrade Ben & Jerry’s

6.12All ingredients in Ben & Jerry’s ice cream that can be sourced Fairtrade will be certified by 2013.

  • In Europe, all key commodities (sugar, cocoa, coffee, vanilla and bananas) used in our ice cream base mix were converted to Fairtrade by end 2011. In the United States, we progressed with the Fairtrade conversion of the cocoa powder and vanilla used in our ice cream.

More on Fairtrade Ben & Jerry’s

We have achieved our Fairtrade ambition in Europe.

However, in the United States the complexities and on-costs in the Fairtrade supply chain meant that we made less progress than anticipated.

We are revising our plans in the United States but still anticipate being able to convert most of our Fairtrade-eligible ingredients, although it will take us beyond 2013 to get there. For the remainder of our low-volume ingredients (such as mint and lemon juice), we are evaluating Fairtrade alongside other ethical sourcing initiatives.

Cage-free eggs

6.13We aim to move to 100% cage-free eggs for all our products,* including Ben & Jerry’s ice cream and Hellmann’s, Amora and Calvé mayonnaises.

  • Continuing our roll-out of products using cage-free eggs, we launched Hellmann’s with Olive Oil and Hellmann’s Canola Cholesterol Free in North America in 2011.

More on cage-free eggs

In Western Europe, our Hellmann’s, Amora and Calvé brands achieved 100% cage-free eggs in 2009. During 2010 in North America, Hellmann’s launched a Light mayonnaise using cage-free eggs. By the end of 2011 99% of all eggs used in Ben & Jerry’s ice cream mix worldwide were cage-free.

* Where allowed by local legislation.

Future challenges

We have made good progress on the sustainable sourcing of our top ten agricultural raw materials – which account for around two-thirds of our volumes. We still have much work to do on these. We know that the remainder will be more complex to source sustainably. For these smaller volume materials we will be dependent on working with others whose volumes are larger and whose market influence is greater.

A further challenge is how we source our non-agricultural (and therefore non-renewable) materials responsibly. We have started to consider the social, environmental and business implications of this.