Climate Change Data

Unilever Nigeria Plc.

Climate Impact & Sustainability Data (2010-2020, 2021, 2022)

Reporting Period: 2010-2020

Environmental Metrics

Renewable Energy Share:51.9% in 2020 (manufacturing operations)

ESG Focus Areas

  • Health and hygiene
  • Nutrition
  • Greenhouse gases
  • Water
  • Waste and packaging
  • Fairness in the workplace
  • Opportunities for women
  • Sustainable sourcing
  • Inclusive business

Environmental Achievements

  • Reduced CO2 emissions from energy from factories by 75% versus 2008 levels despite significantly higher volumes.
  • Reduced water abstraction by 49% per tonne of production versus 2008 levels.
  • Reduced total waste sent for disposal by 96% per tonne of production versus 2008 levels.
  • Reduced greenhouse gas impact per consumer use by around 10% versus 2010.

Social Achievements

  • Reached over 1.3 billion people with health and hygiene initiatives.
  • Reached over 69 million young people with Dove Self-Esteem Project.
  • Helped over 29 million people gain improved access to a toilet.
  • Enabled 2.63 million women to access initiatives promoting safety, skills development, and opportunities.

Governance Achievements

  • Created a Framework for Fair Compensation, ensuring all employees were paid a living wage by 2020.
  • Reduced Total Recordable Frequency Rate (TRFR) for accidents by 70% versus 2008 levels.
  • Achieved gender balance in management in 2019.

Climate Goals & Targets

Medium-term Goals:
  • Halve the greenhouse gas impact of products across the lifecycle by 2030.
  • Achieve zero emissions from operations by 2030.
  • Ensure all plastic packaging is reusable, recyclable, or compostable by 2025.
  • Increase recycled plastic material content in packaging to 25% by 2025.
  • Help collect and process around 690,000 tonnes of plastic annually by 2025.
  • Help 5 million small and medium-sized enterprises in the retail value chain grow their business by 2025.
Short-term Goals:
  • Ensure everyone who directly provides goods and services to Unilever earns at least a living wage or income by 2030.

Environmental Challenges

  • Did not achieve all USLP targets.
  • Challenges in measuring social impact.
  • Difficulty in halving the water associated with consumer use of products.
  • Slower than expected progress on reducing greenhouse gas impact.
  • Challenges in sourcing 100% of agricultural raw materials sustainably.
  • Slowdown in global recycling rates.
  • Limited availability of high-quality recycled waste materials.
Mitigation Strategies
  • Refocused efforts on systems change and individual programs.
  • Improved data collection and measurement of social impact.
  • Developed innovative products that use less water.
  • Increased focus on innovation, R&D, and partnerships.
  • Refocused sustainable sourcing efforts on 12 priority crops.
  • Commitment to help collect and process more plastic packaging than sold.
  • Working to develop the recycling industry and improve infrastructure.

Supply Chain Management

Supplier Audits: 83% of procurement spend through suppliers meeting Responsible Sourcing Policy requirements in 2020

Responsible Procurement
  • Responsible Sourcing Policy

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • Love Beauty and Planet hairspray bottles
  • Rin fast-rinse laundry detergent
  • Love Home and Planet dry wash spray
  • The Good Stuff no-rinse conditioners
  • Magnum ice cream packaging using recycled polypropylene

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Climate Action
  • Waste-free World
  • Protect and Regenerate Nature
  • Improve People’s health, confidence and wellbeing
  • Respect human rights
  • Equity, diversity and inclusive world
  • Raise living standards
  • Future of work

Environmental Achievements

  • Recorded zero fatal or severe injuries in operations
  • Maintained drive on waste reduction, recycling, reuse, energy reduction, water consumption reduction, and rigorous “Zero Non-Hazardous Waste to Landfill” initiatives
  • Achieved Global Food Safety Certification (FSSC 22000) for the Agbara Savoury Plant
  • Maintained a sustained track record of zero marketplace, regulatory and quality incidents

Social Achievements

  • Conducted 12 Health and Wellness Learning Sessions
  • Held a week-long campaign to enlighten employees about mental health tools
  • Held a week-long voluntary HIV testing and counselling for employees
  • Conducted free diabetes screening for employees
  • Celebrated International Women’s Day with an “Unmute” campaign to end silence on Domestic Violence
  • Deployed activities to encourage uptake of mental health services
  • Implemented the Unilever Nigeria Plc Scholarship Scheme, inducting 98 students in 2021
  • Collaborated with Lafarge Africa to donate an 80-bed isolation facility to Ogun State
  • Supported the efforts of social enterprise, Wecyclers, to collect and recycle waste, creating 159 jobs in 2021
  • Partnered with Wecyclers and the Food and Beverage Recycling Alliance (FBRA) to collect and recycle plastic waste in the Ijora community of Lagos state
  • Launched the Unilever Secondary School Internship Program
  • Extended Campus Ambassadors undergraduate talent search to polytechnics
  • Championed inclusion by extending our Campus Ambassadors undergraduate talent search to polytechnics across the country
  • For the sixth time in a row, Unilever Nigeria was recognized as a Top Employer in Nigeria and for the second time in a row remained the No. 1 Top Employer in Nigeria

Governance Achievements

  • Continued to embed the principles of good corporate governance encapsulated in the Nigerian Code of Corporate Governance 2018, the Securities and Exchange Commission Corporate Governance Guideline 2020 and global best practices
  • Board and Corporate Governance Evaluation Report showed that Unilever’s governance procedures and practices during the year ended 31 December 2021 were largely in compliance with the provisions of applicable laws, regulations, corporate governance Code and international best practices

Climate Goals & Targets

Short-term Goals:
  • Reach 50% gender diversity for management roles by 2025
  • Have a 5% representation of people with disabilities by year 2025

Environmental Challenges

  • COVID-19 pandemic
  • Supply chain disruptions
  • Limitations of local suppliers
Mitigation Strategies
  • Implemented effective COVID-19 management practices
  • Facilitated eight onsite COVID-19 vaccinations for employees
  • Conducted periodic, random rapid antigen testing on employees
  • Defined minimum mandatory requirements and capability development program for local suppliers
  • Strengthened collaboration with local raw and packaging material suppliers

Supply Chain Management

Responsible Procurement
  • Supplier quality program
  • Collaboration with local raw and packaging material suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Standards, United Nations Global Compact, Nigerian Exchange Sustainability Disclosure Guidelines, Securities and Exchange Commission’s Sustainable Financial Principles for the Capital Markets

Certifications: ISO 14001:2015, ISO 45001:2018, FSSC 22000

Awards & Recognition

  • Top Employer in Nigeria (6th consecutive year)
  • No. 1 Top Employer in Nigeria (2nd consecutive year)

Reporting Period: 2022

Environmental Metrics

Waste Generated:2314.8 tons/year (plastic)

ESG Focus Areas

  • Climate Action
  • Waste Free World
  • Positive Nutrition
  • Health and Wellbeing
  • Equity, Diversity, and Inclusion
  • Raise Living Standards
  • Future of Work

Environmental Achievements

  • Achieved a total collection of 2,314.8 tons of plastic through partnership with Wecyclers.
  • Ensured that local spend is now above 50% contribution to total material purchases.
  • Attained over 70% reduction in business waste such as demurrage and spot air freight.
  • Recorded zero fatal accidents or severe injuries in operations.
  • Maintained zero waste to landfill in factories.

Social Achievements

  • Scaled up Shakti initiative with 5,280 new women, making a total of 10,280 Shakti women recruited.
  • Launched social procurement initiative aimed at increasing investment in female and disability-owned businesses.
  • Revised Unilever Campus Ambassadors Program (UCAP) to FUCAP (Future-X Unilever Campus Ambassadors Program) in partnership with UNICEF, aiming for a 2:1 ratio inclusion for the female gender.
  • Achieved a gender diversity of 47% in 2022.
  • Received several awards for inclusion of people with disabilities.

Governance Achievements

  • Continued to embed the principles of good corporate governance.
  • Board and Corporate Governance Evaluation Report showed compliance with applicable laws, regulations, corporate governance Code and international best practices.
  • Zero marketplace and regulatory incidents in quality.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2039
  • 100% reusable, recyclable, or compostable plastic packaging by 2025
  • Halve food waste in operations by 2025
  • Equip 10 million young people with essential skills by 2030
Medium-term Goals:
  • 50% virgin plastic reduction by 2025
  • 25% recycled plastic by 2025
  • Collect 50% of plastic footprint by 2025
  • 100% recyclable plastic packaging by 2025
  • 5% representation of persons with disability by 2025
  • Equip 100,000 young people with essential skills by 2030
Short-term Goals:
  • Reduce water consumption
  • Achieve 10% virgin plastics reduction by 2025
  • Achieve 5% recycled plastics by 2025
  • Reduce food waste in canteens by 50% by 2025
  • Attain 50% gender representation at management level by end of 2023
  • Implement Living wage for Insourced 3rd Parties in 2023

Environmental Challenges

  • Strong global macroeconomic headwinds, geopolitical volatility, uncertainties in the supply chain, continued liquidity concerns in the foreign exchange space, and high inflation.
  • Commodity inflation on key material prices, adverse currency impact due to depreciation of Naira against USD, and increase in average diesel rate.
  • Challenges in meeting revenue targets.
Mitigation Strategies
  • Implemented Agile ways of working, operational discipline, and governance.
  • Deployed various cost optimization initiatives to achieve an operating margin of 8.5%.
  • Maintained a robust savings pipeline to mitigate impacts from inflation and forex rate volatility.
  • Localization journey to de-dollarize operations.
  • Implemented digital factory operating system for efficiency improvements.

Supply Chain Management

Responsible Procurement
  • Continuous monitoring of suppliers
  • Promoting deforestation-free supply chain
  • Ensuring sustainable sourcing of agricultural crops
  • Empowering farmers and smallholders

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact Principles, Nigerian Exchange Limited’s Sustainability Disclosure Guidelines, Securities and Exchange Commission‘s Sustainable Financial Principles

Certifications: ISO 14001:2015, ISO 45001:2018, FSSC 22000

Sustainable Products & Innovation

  • 100% natural bouillon cubes (Knorr)

Awards & Recognition

  • 2022 HR (Human Resources) Inclusion (Disability) Award for Private Sector
  • Nigeria Employers’ Consultative Association award for Innovation and People Centric culture
  • Most Inclusive Organization in Nigeria Award
  • Top Employer in Nigeria (7th time)
  • No. 1 Top Employer in Nigeria (3rd time)