CDP Water Security Questionnaire 2022 - page 12

 

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CDP Water Security Questionnaire 2022 - page 12

 

 

Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Welcome to your CDP Water Security Questionnaire
2022
W0. Introduction
W0.1
(W0.1) Give a general description of and introduction to your organization.
BACKGROUND
Unilever makes and sells more than 400+ brands in over 190 countries which are used by
some 3.4 billion consumers worldwide every day. Our brands include Knorr, Dove, Rexona,
Lipton, Hellmann’s, Omo, Lifebuoy and Ben & Jerry’s - amongst many others. In 2021, our
business was organised across three divisions: Beauty & Personal Care, Foods & Refreshment
and Home Care. Our total turnover in 2021 was €52.4bn.  
OUR PURPOSE
Unilever’s purpose is to make sustainable living commonplace which we believe is the best way
to deliver long-term sustainable growth.  We put sustainable living at the heart of everything we
do, including our brands and products, our standards of behaviour and our partnerships which
drive transformational change across our value chain. 
In June 2020, we released new commitments to fight climate change and protect nature as part
of our new integrated business strategy, the Unilever Compass which builds on the Unilever
Sustainable Living Plan, which came to an end in 2020. Some of our Unilever Compass
commitments include: 
Net zero emissions for all our products by 2039. 
A deforestation-free supply chain by 2023. 
A new Regenerative Agriculture Code for all our suppliers.
Water stewardship programmes to 100 locations in water-stressed areas by 2030. 
Investing €1 billion in a new Climate & Nature Fund, which will be used by Unilever’s
brands over the next ten years to take meaningful and decisive action. 
OUR REPORTING AND DISCLOSURE
Unilever’s primary report is our
9dc6d3.pdf Annual Report & Accounts (ARA) - https://www.unilever.com/investors/annual-
report-and-accounts/. In our ARA, we report progress against our Unilever Compass
commitments as well as a range of other non-financial indicators. Our ARA also includes TCFD
disclosures. We provide additional climate related disclosure and commentary in the Planet &
Society Hub - https://www.unilever.com/planet-and-society/ on Unilever.com. 
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
ASSURANCE
PricewaterhouseCoopers LLP (PwC) scope for their assurance work on selected Compass &
Environmental & Occupational Safety performance indicators can be found in the PwC Basis of
Preparation 2021 document in the Independent Assurance and metrics section on our website,
alongside their findings in the PwC Limited Assurance Statement for 2021.  
DISCLAIMER
This CDP submission may contain forward-looking statements, including ‘forward-looking
statements’ within the meaning of the United States Private Securities Litigation Reform Act of
1995. Words such as ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vision’, or
the negative of these terms and other similar expressions of future performance or results, and
their negatives, are intended to identify such forward-looking statements. These forward-
looking statements are based upon current expectations and assumptions regarding
anticipated developments and other factors affecting the Unilever Group (the ‘Group’). They are
not historical facts, nor are they guarantees of future performance. Because these forward-
looking statements involve risks and uncertainties, there are important factors that could cause
actual results to differ materially from those expressed or implied by these forward-looking
statements. These forward-looking statements speak only as of the date of this document.
Except as required by any applicable law or regulation, the Group expressly disclaims any
obligation or undertaking to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Group’s expectations with regard
thereto or any change in events, conditions or circumstances on which any such statement is
based.
W-FB0.1a
(W-FB0.1a) Which activities in the food, beverage, and tobacco sector does your
organization engage in?
Agriculture
Processing/Manufacturing
Distribution
W0.2
(W0.2) State the start and end date of the year for which you are reporting data.
Start date
End date
Reporting year
October 1, 2020
September 30, 2021
W0.3
(W0.3) Select the countries/areas in which you operate.
Algeria
Argentina
Australia
Bangladesh
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Bolivia (Plurinational State of)
Brazil
Bulgaria
Canada
Chile
China
Colombia
Costa Rica
Côte d'Ivoire
Cyprus
Denmark
Ecuador
Egypt
El Salvador
Ethiopia
Finland
France
Germany
Ghana
Greece
Hungary
India
Indonesia
Iran (Islamic Republic of)
Ireland
Israel
Italy
Japan
Kenya
Lithuania
Mexico
Morocco
Myanmar
Nepal
Netherlands
Nigeria
Pakistan
Philippines
Poland
Portugal
Romania
Russian Federation
Saudi Arabia
South Africa
Spain
Sri Lanka
Sweden
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Switzerland
Taiwan, China
Thailand
Tunisia
Turkey
Ukraine
United Arab Emirates
United Kingdom of Great Britain and Northern Ireland
United Republic of Tanzania
United States of America
Venezuela (Bolivarian Republic of)
Viet Nam
Zimbabwe
W0.4
(W0.4) Select the currency used for all financial information disclosed throughout
your response.
EUR
W0.5
(W0.5) Select the option that best describes the reporting boundary for companies,
entities, or groups for which water impacts on your business are being reported.
Companies, entities or groups over which operational control is exercised
W0.6
(W0.6) Within this boundary, are there any geographies, facilities, water aspects, or
other exclusions from your disclosure?
No
W0.7
(W0.7) Does your organization have an ISIN code or another unique identifier (e.g.,
Ticker, CUSIP, etc.)?
Indicate whether you are able to provide a unique identifier for
Provide your unique
your organization.
identifier
Yes, an ISIN code
GB00B10RZP78
W1. Current state
W1.1
(W1.1) Rate the importance (current and future) of water quality and water quantity to
the success of your business.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Direct use
Indirect use
Please explain
importance
importance
rating
rating
Sufficient
Vital
Vital
Direct primary use: Good quality water is a vital
amounts of good
ingredient in many of our products and
quality freshwater
fundamental to product quality. It is also vital for
available for use
heating, cooling & cleaning processes in all 250
manufacturing sites and employee health. Without
access to good quality freshwater we would not be
able to produce products, would have to find
alternative ways to access water (e.g. tankering)
or would have to invest further into pre-treatment,
resulting in increased operating costs. In a worst
case scenario, it would mean that we would have
to relocate manufacturing volume /facilities.
Indirect primary use: Many of our agricultural
suppliers need access to freshwater to grow the
raw ingredients we rely on. Most of our products
also need water to be used eg shampoo & laundry
detergent. Poor quality water or limited water
availability constrains demand for our products as
consumers reduce the frequency of use and/or
inhibit the product performance. Lack of water
availability can translate into lack of supply & price
volatility for us, resulting in the further revenue &
increased costs. If consumers reduce frequency of
use of our products, we would also lose revenue
from lower sales thus freshwater is rated vital for
our operations.
Future importance: Water scarcity is already a
material issue for Unilever, as outlined in our
materiality assessment however, if climate change
continues to impact the frequency of extreme
weather, availability of good quality freshwater will
likely become more of a risk where it has a direct
impact on our operations. Whilst we are innovating
to create products that use less water, we continue
to use freshwater as a primary input for products
as well as for cleaning, heating & cooling. The
demand for our products and our customer base
have increased over the last year. As it is also a
basic requirement for farming & for consumer use,
we expect that freshwater will continue to be vital
to our operations and value chain in the future.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Sufficient
Important
Important
Direct primary use: This is important as recycled,
amounts of
brackish & produced water is used in our
recycled,
manufacturing wherever possible. This is primarily
brackish and/or
used to run our utilities e.g. cooling towers. An
produced water
example of water reuse & recycling beyond our
available for use
utilities is our Ceytea powdered tea Factory in Sri
Lanka which completed the 100% Re-Aqua
programme to recycle all water at the site,
reducing the water that is abstracted. Today over
90% of their water demand is met by recycled
water. Reuse & recycling enables greater
operational efficiency & minimises the amount of
water we abstract from shared resources. This is
important rather than vital, for multiple reasons
varying by location, but could include: reduces
competition for resources with neighbouring
industry, community & environment, reduces costs
of operations, needed to meet local regulation.
Secondary benefits include energy & chemical
efficiency, product recovery & cost reductions.
Indirect primary use: Sufficient amounts of indirect
use of recycled or brackish water are important for
irrigation of agricultural crops we buy for our
products. Most of our home & personal care
products also need water to be used. We also
recognise that water at a municipal level also
supports addressing the water supply-demand gap
& securing water for all.
Future importance: With increasing stresses on
water supplies through climate change,
industrialization & population growth, it is likely
access to recycled, brackish &/or produced water
will become more important. We continually seek
ways to reduce our impact and dependency. For
indirect use, the amount of recycled, brackish &/or
produced water available for use will likely gain in
importance to us too as water shortages will mean
consumers will prioritise where to use fresh water
supplies. At a municipal level, we anticipate water
recycling & reuse will become an essential means
of securing water for all.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
W-FB1.1a
(W-FB1.1a) Which water-intensive agricultural commodities that your organization
produces and/or sources are the most significant to your business by revenue?
Select up to five.
Agricultural
% of revenue
Produced
Please explain
commodities
dependent on
and/or
these agricultural
sourced
commodities
Other, please
Less than 10%
Sourced
We identified Unilever's biggest crops by
specify
purchased volume and compared them against
Cocoa
the Water Footprint Network database of water
intensity.
The % of revenue dependent on each commodity
is an approximation based on annual turnover for
our Beauty & Personal Care, Foods &
Refreshment and Home Care divisions. This is not
based on actual product specific data and does
not take into account the level of inclusion or
whether or not it is substitutable/one of a number
of sources.
Each commodity is assessed based on revenue
per division and an approximate calculation (%) of
brands within that division that use it. Cocoa is
used by our Ice Cream portfolio so the revenue is
calculated as 6 - 10% of the total.
Other, please
Less than 10%
Sourced
We identified Unilever's biggest crops by
specify
purchased volume and compared them against
Soy oils
the Water Footprint Network database of water
intensity.
The % of revenue dependent on each commodity
is an approximation based on annual turnover for
our Beauty & Personal Care, Food &
Refreshments and Home Care categories. This is
not based on actual product specific data and
does not take into account level of inclusion or
whether or not is substitutable/one of a number of
sources.
Each commodity is assessed based on revenue
per category and a rough calculation (%) of brands
within that category that use soy oils. Soy is only
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
used in only a small amount of our Foods &
Refreshment portfolio, so the revenue is
calculated as 6-10% of the total.
Palm oil
41-60
Sourced
We identified Unilever's biggest crops by
purchased volume and compared them against
the Water Footprint Network database of water
intensity. The % of revenue dependent on each
commodity is an approximation based on annual
turnover for our Beauty & Personal Care, Food &
Refreshments and Home Care categories. This is
not based on actual product specific data and
does not take into account level of inclusion or
whether or not is substitutable/one of a number of
sources.
Each commodity is assessed based on revenue
per category and a rough calculation (%) of brands
within that category that use palm oil.
Palm oil is used in Beauty & Personal Care, Home
Care and Food & Refreshments. Based on this
estimation, palm oil accounts for about 41-60% of
revenue.
Other, please
10-20
Sourced
We identified Unilever's biggest crops by
specify
purchased volume and compared them against
Wheat
the Water Footprint Network database of water
intensity.
Each commodity is assessed based on revenue
per category and a rough calculation (%) of brands
within that category that use wheat. Wheat is used
in our Food & Refreshments category. Based on
this, we estimate wheat accounts for about 10-
20% of revenue.
Other, please
Less than 10%
Both
We identified Unilever's biggest crops by
specify
purchased volume and compared them against
Tea
the Water Footprint Network database of water
intensity.
The % of revenue dependent on a commodity
relates to its use in that particular Unilever
category. Tea is a portfolio within our Foods and
Refreshment category only. In 2021, the tea
portfolio accounted for around 5% of our Group
revenue.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
W1.2
(W1.2) Across all your operations, what proportion of the following water aspects are
regularly measured and monitored?
% of
Please explain
sites/facilities/operations
Water withdrawals -
100%
Our global Environmental Performance
total volumes
Reporting system records withdrawals for 100%
of manufacturing sites (absolute & relative to
production). Data is measured via utility bills &
onsite meters monthly and assured annually, in
line with our Basis of Preparation. Water
withdrawals - Total volumes = sum of
withdrawals for all factories. Externally we report
global performance but internally we report by
site, region, category to drive improvements. For
CDP, volumes are in line with GRI however,
there is disparity between total withdrawals & the
total abstraction metric reported in our online
Planet & Society Hub as we identify rainwater
harvesting as a means of minimizing water
abstraction & the impact of factories on shared
water resources. Our measurement, monitoring
& target (MM&T) system is now in 200+ factories
(over 80% of our manufacturing footprint). Hourly
information helps validate our data & drive
efficiency.
Water withdrawals -
100%
Water withdrawals by source are reported in the
volumes by source
global Environmental Performance Reporting
(EPR) system for 100% of manufacturing
operations. Water withdrawals by source is
measured on a monthly basis by each factory.
Within Unilever's central EPR system we
differentiate between water by source of
abstraction, i.e. municipal, ground water, surface
water etc for 100% of manufacturing sites. Data
is measured by using utility bills and onsite
meters monthly and assured annually, in line
with Unilever’s Basis of Preparation. Where
rainfall patterns suit, various sites have installed
rainwater harvesting to minimize the amount of
water that we abstract from municipal or ground
water sources. Sites can monitor the use of
collected rainwater through onsite flow meters
and report via the EPR system. We currently
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
have 28 sites reporting rainwater collection &
use in our manufacturing operations.
Water withdrawals
100%
Water withdrawal quality is measured and
quality
reported for 100% of manufacturing operations,
in line with the Unilever Safe Water Usage
Guidance, part of the Unilever Good
Manufacturing Practices (GMP). Information on
water withdrawal quality is managed at site level
and not reported centrally. The frequency of
water withdrawal measurement and quality
testing is subject to local conditions, for example,
in some locations where we have a new local
water supply, we will perform microbial testing on
a weekly or daily basis. Control systems &
methodologies applied are based on hazard
analysis and critical control points (HACCP)
study.
Water discharges -
100%
Water discharge volumes are measured at 100%
total volumes
of manufacturing operations, where needed to
meet local effluent & surface water compliance
requirements. Information relating to discharge
volumes is managed locally by the site teams &
used for compliance, managing costs & targeting
efficiencies. The frequency of measurement is
determined locally and based on legal
requirements and /or infrastructure e.g. might
include continuous flow metering connected to
the Scada system to support real time tracking or
manual composite sampling. The data used
within the CDP report are based on a
combination of a water model which estimates
wastewater volumes based on technologies &
product type and direct reporting by sites.
Water discharges -
100%
Water discharge volumes are measured and
volumes by
reported at a site level for 100% of
destination
manufacturing operations where needed to meet
local effluent and surface water compliance
requirements. The destination of the water
discharge forms part of our consent and informs
stakeholder management activities. In most
cases, water discharge volumes are measured
by inline flow meters reviewed daily. The
volumetric data used within the CDP report is
based on a combination of a a water model
which estimates wastewater volumes based on
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
technologies & product type and direct reporting
from sites. The destination is based on the
reported Chemical Oxygen Demand (COD)
destinations, this information is reported on a
monthly basis within our Environmental
Performance Reporting Systems.
Water discharges -
100%
Water discharge volumes are measured &
volumes by
reported at a site level for 100% of
treatment method
manufacturing operations where needed to meet
local compliance requirements. Sites are not
required to report water discharges by treatment
type on a monthly basis. Through our internal
central technology inventory we have oversight
of the treatment methods in all sites. The
treatment methods are updated on an ongoing
basis, reflecting changes in onsite infrastructure.
Volumetric discharge data used in CDP reporting
is measured based on a combination of a water
model which assumes the wastewater volumes
based on technologies and products at sites and
direct reporting by sites. When combined with
the information in the technology inventory, we
are able to measure and report an estimate of
discharge volumes by treatment method on a
monthly basis.
Water discharge
100%
Discharge water quality parameters are
quality - by standard
measured and reported & for 100% of
effluent parameters
manufacturing operations. Centrally, using our
global EPR system, we measure Chemical
Oxygen Demand (COD) as a standard effluent
parameter across all manufacturing operations.
This is measured monthly and reported and
assured by an external party (ISAE 3000)
annually. At site level, the parameters monitored
and reported vary based on production type,
discharge destination and local regulation e.g.
common parameters include BOD, pH,
temperature. The frequency of monitoring is
determined locally in accordance with regulatory
requirements, for instance in some sites we use
automatic composite sampling, whereas others
use daily grab or spot sampling. Water treatment
technologies vary by category, age & location
(for instance, the effluent treatment for an ice
cream factory will be different to a homecare
factory).
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Water discharge
100%
Discharge water quality parameters are reported
quality - temperature
& measured for 100% of manufacturing
operations, where local regulations require.
Testing protocols and frequency of measurement
are subject to local permit requirements and are
tracked and managed at site level in line with
requirements for instance, approximately 1/3 of
have installed automated continuous monitoring
systems for temperature.
Water consumption -
100%
Water consumption has been calculated using
total volume
the definition recommended by CDP using
information available for 100% of manufacturing
operations. This is an annually calculated field
using the measured data from above (water
consumption=water withdrawal by volume -
water discharge by volume). Water consumption
as a metric is not used internally as an
operational KPI, but the data used is within the
calculation is, and is measured monthly. As an
internal metric Unilever measure and report
water used as an ingredient, allowing us to
differentiate process water and track and target
process improvements.
Water
100%
We reuse & recycle water in our operations as a
recycled/reused
way to reduce abstraction. Initiatives include
optimisation such as increasing cycles of
concentration in cooling towers, small loop
recycling & reuse of cleaning waters or reuse of
treated wastewater for utilities. Although our
onsite metering provides much more granular
oversight of water use, this is not in place at all
sites. In 2020, we introduced a monthly
measurement requirement for all sites for
recycled final treated wastewater. This does not
capture the many short-loop recycling initiatives
but will give oversight of & encourage greater
use of treated wastewater for uses such as
utilities. Reporting and data accuracy on water
recycling is being developed. Volumetric data
used within this report are calculated based on a
water model which estimates the water
recycled/reused volumes created by
technologies & processes.
The provision of fully-
100%
Within 100% of manufacturing operations, we
functioning, safely
provide access to WASH services for workers
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
managed WASH
and ensure that we are meeting good practices
services to all
laid out in the WBCSD WASH in the Workplace
workers
Pledge. We measure this annually through an
annual review through the SHE Positive
Assurance Review for 100% of manufacturing &
non-manufacturing sites, including a question
relating to the WBCSD WASH in the Workplace
Pledge. Based on responses, sites with
significant improvement areas will be provided
with action plans. WASH services to all workers
are also explored within the implementation of
the Alliance for Water Stewardship standard
being rolled out across water stressed sites. We
engage in partnerships and external advocacy to
create systems change on WASH issues. For
example, we have been signatories of the UN
CEO Water Mandate since its inception, active
members of the WBCSD WASH Leadership
Group and the WEF WASH Steering Group.
W1.2b
(W1.2b) What are the total volumes of water withdrawn, discharged, and consumed
across all your operations, and how do these volumes compare to the previous
reporting year?
Volume
Comparison
Please explain
(megaliters/year)
with previous
reporting year
Total
30,087
About the
Total water abstraction has increased by 1.5%
withdrawals
same
vs. previous year. This is associated with growth
in water intensive production related products,
namely the Health Food Drink acquisition in
South Asia which offset efficiencies delivered in
homecare and personal care facilities in the
year.
During covid-19 pandemic Unilever, remained
focused on efforts to protect our people, the
communities we operate in and the continuity of
our business. Restrictions to personnel and
onsite presence of suppliers has meant the
continuous improvement activities were limited,
and implementation of capex for improvement
projects slowed. However, simplification of
production and growth in volumes of water
efficient products in homecare for instance, has
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
driven some underlying efficiencies.
In addition, the roll out to the agility programme,
which aims to reduce working stock levels and
improve customer service are leading to
increased cleaning demands and impacts on
water use. To mitigate the impacts site teams
are conducting cleaning matrix reviews and
exploring opportunities for water reuse and
recycling. Unilever had a 2008 to 2020 target to
reduce water abstraction by 40% per tonne of
production. By the end of 2018, we had achieved
our 2020 target two years early, cutting the
amount of water abstracted by our factories, we
continued to drive efficiencies and at the end of
Q3 2021, we had achieved 48.8%.
Future total withdrawal: Short term projections
on water use are varied but overall expected to
increase. For instance, the ongoing agility
programme is anticipated to increase water use
as sites changed over more. At the same time,
continued focus on efficient cleaning, the
ongoing Clean Tech programme and introduction
of new internal targets on water efficiency are
sought to counteract these.
Longer term projections are that we will continue
to drive water efficiency as part of an overall
drive to improved sustainability and
manufacturing excellence.
Total
14,772
Lower
Total discharge data is from a combination of
discharges
reported monthly data from central performance
reporting system, and a calculated model for
data quality and improvements. Reported water
discharge volumes have reduced, in part as a
result of improved data reporting. Therefore
comparison with previous year does not reflect
the operational efficiencies and programmes
underway.
Future total discharges: Short term projections
on discharge volumes are varied but overall
expected to increase with the ongoing agility
programme.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
In the medium to long term discharge volumes
are expected to reduce significantly as sites
increase the amount of wastewater recycling and
reuse. Technology pricing is expected to reduce,
know-how is expected to increase and regulation
tightening as a result of public pressure and
increasing national water security issues.
Total
15,315
Higher
Calculated water consumption for 2021 has
consumption
increased vs previous years, this is largely a
result of improved data reporting on water
discharge volumes. Therefore comparison with
previous year does not reflect the operational
efficiencies and programmes underway.
Future water consumption: Water consumption
will be largely influenced by changes in the
Homecare categories. In Homecare there are 2
key trends occurring 1) a move from powders to
liquid laundry products in emerging markets, this
will likely result in an increase in water
consumption as the ingredient water will be
higher than the slurry mix for powders and at the
same time - 2) In more mature markets and
where direct to consumer purchasing there is a
move to concentrated laundry products will
reduce the amount of water used as an
ingredient.
W1.2d
(W1.2d) Indicate whether water is withdrawn from areas with water stress and provide
the proportion.
Withdrawals
%
Comparison
Identification
Please explain
are from
withdrawn
with previous
tool
areas with
from areas
reporting
water stress
with water
year
stress
Row
Yes
26-50
About the
WRI
Tool used: 100% Unilever
1
same
Aqueduct
manufacturing operations are
allocated a water stress rating
based on a combination of the
WRI Aqueduct tool, discussions
at site level and media reviews.
Tool Applied: An internal water
stress rating uses a 1-5 scale.
Volumes withdrawn from sites
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
which scored a water stress
rating of 4 and 5 are considered
water stressed. Water
abstracted from these water
stressed sites are reported in
our EPR reporting system. The
performance is tracked and
communicated separately within
the business on a quarterly
basis, and more ambitious
targets applied to water stressed
sites. Water stress ratings are
updated on an ongoing basis off
the back of direct engagement
with sites, local authorities and
media reviews. In 2021 we had
100 factories located in water
stressed locations.
Performance: The number of
water stressed sites has
remained consistent with 2019
and 2020. In 2021 38% of our
water abstraction is from sites in
water stressed locations vs.35%
in 2020. Explanation:
Performance in water stressed
sites overall has been driven by
production mix changes, and
eco-efficiency initiatives in a
number of sites including CuChi,
Pondicherry and Manila.
Positive impact was offset with
the growth of water intensive
production facilities in the
Nutrition and Health Foods
Drinks (HFD) category in South
2 of which are located in highly
water stressed areas.
W-FB1.2e
(W-FB1.2e) For each commodity reported in question W-FB1.1a, do you know the
proportion that is produced/sourced from areas with water stress?
Agricultural
The proportion of
The proportion of
Please explain
commodities
this commodity
this commodity
produced in areas
sourced from
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
with water stress
areas with water
is known
stress is known
Other
Not applicable
Yes
Unilever does not produce any cocoa.
commodities
To identify the proportion of commodity
from W-FB1.1a,
sourced from areas with water stress
please specify
we identified Unilever's biggest crops
Cocoa
by purchased volume and compared
them against the Water Footprint
Network database of water intensity.
Other
Not applicable
Yes
Unilever does not produce any soy. To
commodities
identify the proportion of commodity
from W-FB1.1a,
sourced from areas with water stress
please specify
we identified Unilever's biggest crops
Soy oils
by purchased volume and compared
them against the Water Footprint
Network database of water intensity.
Other
Not applicable
Yes
Unilever does not produce any wheat.
commodities
To identify the proportion of commodity
from W-FB1.1a,
sourced from areas with water stress
please specify
we identified Unilever's biggest crops
Wheat
by purchased volume and compared
them against the Water Footprint
Network database of water intensity.
Other
Yes
Yes
Unilever both sources and produces
commodities
tea. To identify the proportion of
from W-FB1.1a,
commodity sourced and produced from
please specify
areas with water stress we identified
Tea
Unilever's biggest crops by purchased
volume and compared them against
the Water Footprint Network database
of water intensity.
Palm oil
Not applicable
Yes
Unilever does not produce any palm
oil. To identify the proportion of
commodity sourced from areas with
water stress we identified Unilever's
biggest crops by purchased volume
and compared them against the Water
Footprint Network database of water
intensity.
W-FB1.2f
(W-FB1.2f) What proportion of the produced agricultural commodities reported in W-
FB1.1a originate from areas with water stress?
17
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Agricultural
% of total
Please explain
commodities
agricultural
commodity
produced in
areas with water
stress
Other produced
0%
How this metric is used within Unilever: The Maplecroft
commodities from
Water Stress Index and WRI Aqueduct are used to
W-FB1.2e, please
determine the proportion of commodity volume sourced
specify
from water stressed countries. Countries classified with
Tea
high or extreme water stress were counted. Of the
agricultural commodities in scope, Unilever only produces
tea in plantations in Kenya and Tanzania. Neither of these
countries are classified as water stressed which results in
low sourcing risk to us when we assess the vulnerability of
certain commodities/products in our portfolio.
Anticipated future trends: The latest IPCC Report shows a
prediction of no to little change in precipitation levels in
these countries against the 1.5⁰c and the 2⁰c scenarios &
we therefore anticipate we will continue production in these
regions in the future with proportions being reliant on a
number of factors such as M&A activity and/or consumer
trends (preference for fruit teas over standard). This was
the case last year and there has been no change between
reporting years.
W-FB1.2g
(W-FB1.2g) What proportion of the sourced agricultural commodities reported in W-
FB1.1a originate from areas with water stress?
Agricultural
% of total
Please explain
commodities
agricultural
commodity
sourced from
areas with water
stress
Other sourced
0%
How metric is used within Unilever: The figure provided
commodities from
was obtained using Water Footprint Network data on crop
W-FB1.2e, please
water intensity, the Maplecroft Water Stress Index and
specify
the latest available Unilever volume data for 2021. The
Cocoa
risk rating and percentage of commodity produced in
water stressed countries has not changed since the
previous reporting year. The majority of our cocoa
supplies come from Cote d’ Ivoire and Ghana which are
18
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
not currently areas associated with water stress.
Anticipated future trends: According to the latest IPCC
Report however, there is evidence that West Africa could
witness negative impacts in the future from climate
change on crop yields and production against a 2⁰c or
above scenario. It is expected that this demand will
increase thus proportion reported will increase. Unilever’s
cocoa suppliers address ESG risks that are endemic to
the geography and commodity, like poverty, child labour
and deforestation. Although not a priority issue in cocoa
given the relatively high rainfall of Ghana and Cote d’
Ivoire, heat and water stress of trees is addressed
through the effective maintenance of shade trees.
Moreover, water risks are covered by the Rainforest
Alliance and UTZ certification standards implemented by
our suppliers.
Other sourced
1-10
How metric is used within Unilever: The figure provided
commodities from
(2%) was obtained using Water Footprint Network data
W-FB1.2e, please
on crop water intensity, the Maplecroft Water Stress
specify
Index, & the latest available Unilever volume data for
Soy oils
2021. The risk rating & percentage of commodity
produced in water stressed countries has not changed
since the previous reporting year. We source most of our
soy oil from the USA, which has a moderate water stress
rating. States in the country with high water stress do not
overlap with those in which our soybeans are produced.
We therefore classify our exposure to water stress in the
United States as low to medium-low. Water management
is an important component of farm and crop management
in this supply chain, a co-benefit of planting cover crops,
which farmers are incentivised to do. The second country
from which Unilever sources soybeans by order of
volume is Brazil, which has a low risk to water stress.
Anticipated future trends: It is expected we will continue
sourcing from these countries to meet future volume
demand. In 2018, we developed a piloted approach to
assess the impact of climate change on our key
commodities through our annual scenario analysis,
selecting soy for the initial pilot. Our analysis showed that
soybean yields may actually increase over the 2030 and
2050-time horizon given the areas we source from. Water
management forms part of the production curriculum for
soy farming, with risks addressed by standards RTRS,
19
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Proterra and the United States Sustainable Soy
Assurance Program implemented by Unilever’s suppliers.
Other sourced
11-25
How metric is used within Unilever: The figure provided
commodities from
was obtained using Water Footprint Network data on crop
W-FB1.2e, please
water intensity, the Maplecroft Water Stress Index, and
specify
the latest available Unilever volume data for 2021. We
Wheat
source the majority of our wheat from United States of
America, Germany, Pakistan, South Africa, United
Kingdom and Mexico. From these countries, Pakistan and
Mexico are considered High water stress. Both United
States and South Africa are considered Low to Moderate
in water stress. However, wheat growing in areas of the
United States, tend to be in states with high water stress,
making water management an important pillar of good
agricultural practices. Unilever worked to source 100% of
our cereals volumes sustainably by the end of 2020 (67%
of our agricultural raw materials were sustainably sourced
by the end of 2020, including 59% as physical sustainable
sources and 8% in the form of certificates for palm, soy
and sugar). Despite missing our target to source all
agricultural raw materials sustainably, for the 12 priority
crop groups - of which cereals is one - that make up
around two-thirds of our total volume of agricultural raw
materials, 79% were sustainably sourced in 2021.
Anticipated future trends: We are working to buy certified
wheat that meets the requirements of certification
standards like the Sustainable Agriculture Code and Farm
Sustainability Assessment, which address water-related
risks.
Other sourced
26-50
How metric is used within Unilever: The figure was
commodities from
obtained using Water Footprint Network data on crop
W-FB1.2e, please
water intensity, the Maplecroft Water Stress Index, and
specify
the latest available Unilever volume data for 2021. The
Tea
risk rating and percentage of commodity produced in
water stressed countries has not changed since the
previous reporting year. We source the majority of our tea
from India, Kenya, Turkey Argentina and Indonesia. From
these countries, India and Turkey are considered High
water stress countries. Whilst the latest IPCC Report
shows a prediction of no to little change in precipitation
levels in the countries against the 1.5⁰c and the 2⁰c
scenarios where we produce tea, we source around 38%
of our tea from other countries in Africa and Asia which
are more vulnerable to the extreme weather events linked
to climate change.
20
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Anticipated future trends: In the future, we may
experience greater pressure on higher altitude growing
regions to overcome losses in more vulnerable locations.
It is expected we will continue sourcing from these
countries to meet our requirements. Water management
forms part of the production curriculum of tea plantations
and estates, with risks addressed by standards like
Rainforest Alliance and Trustea, against which our
suppliers are certified.
Palm oil
1-10
How metric is used within Unilever: The figure provided
was obtained using Water Footprint Network data on crop
water intensity, the Maplecroft Water Stress Index, and
the latest available Unilever volume data for 2021. The
risk rating and percentage of commodity produced in
water stressed countries has not changed since the
previous reporting year. The majority of our palm oil
supplies come from Indonesia and Malaysia which are
not currently associated with water-stress.
Anticipated future trends: However, according to the
latest IPCC Report, Asia may be more vulnerable to the
extreme weather events linked to climate change in the
future. It is expected we will continue sourcing from these
countries to meet our current requirements. Water
management forms part of the production curriculum of
palm oil plantations, with risks addressed by the
Roundtable for Sustainable Palm Oil (RSPO) standard, to
which the majority of Unilever’s palm oil supply is
certified.
W1.2h
(W1.2h) Provide total water withdrawal data by source.
Relevance
Volume
Comparison
Please explain
(megaliters/year)
with
previous
reporting
year
Fresh surface water,
Relevant
2,050.3
Higher
Whilst surface water remains
including rainwater,
a relevant source of water, it
water from wetlands,
only accounts for 7% of total
rivers, and lakes
water withdrawals. 67% of
fresh surface water is used for
non-contact cooling activities.
This takes place in 4 water
21
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
abundant locations. Using
water to transfer heat is cost
effective & minimises overall
impact vs electrical
cooling/refrigerants.
Performance: Surface water
has increased (+7%). Use of
rainwater increased by 26%
vs 2019. There are 22 sites
across our network collecting
and reusing rainwater.
Rainwater makes up a small
% of total use (<0.5%) it is
increasingly important,
minimizing reliance on
municipal supplies &
supporting downstream flood
mitigation. Over the last year
we have increased rainwater
use in our operations by 15%.
This is driven by sites like
Dapada in India where
rainwater makes up almost
40% of the sites total water
use. We anticipate we will
continue to drive reductions in
surface water, focused in
areas of water stress &
continue to promote rainwater
harvesting.
Brackish surface
Not
Brackish surface water /
water/Seawater
relevant
Seawater is no longer used
within our operations following
the spreads divestment where
it had been used as a form of
non-contact cooling. In the
future, Seawater could
become a more important
source of water e.g. for
ground source heat pumps,
cooling or direct water
abstraction with desalination.
Groundwater -
Relevant
8,255.2
About the
Ground water is used in
renewable
same
manufacturing operations as
both a process and as a raw
ingredient. This makes up
22
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
27% of the Unilever’s total
water withdrawal.
Performance: Compared to
the previous year,
Groundwater has increased
by 2%, this has been driven
by recent growth in South
Asia. Future Trend: We
expect that groundwater will
continue to be a relevant
source of water for Unilever. It
is anticipated that Unilever will
continue to drive reductions in
ground water, therefore, we
anticipate that future use will
continue to decline.
Groundwater - non-
Not
Groundwater from non-
renewable
relevant
renewable sources is not a
water source that we
withdraw from today. In the
future, it is unlikely that the
this will become a source for
abstraction given our
increasing awareness of
water resources, and the
tightening regulatory
environment.
Produced/Entrained
Not
Today, we do not use water
water
relevant
from produced / entrained
sources of water. The majority
of our raw materials arrive to
the site ready for production
process e.g. dried vegetables
for stock-cube production. In
the future, as water becomes
increasingly stressed,
produced / entrained water
may become more of an
opportunity.
Third party sources
Relevant
19,781.5
About the
Performance: Water provided
same
by municipalities, water
authorities, industrial parks or
other represents 66% of
Unilever’s total water
withdrawal. During 2021
23
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
municipal water use
increased by 1.5%. Impacts to
municipal water consumption
were a result of production
growth in large personal care
factory in the US and
increased demand from ice
cream production in Italy.
Future trend: It is anticipated
municipal water will continue
to be a relevant source of
water for Unilever. As part of
our overall sustainability
programme, we will continue
to drive water efficiency and
water recycling to reduce
demand on 3rd Party sources.
We expect treated
wastewater from other
organisations could offer
opportunities to minimise
demand from shared water
resources & minimise risks of
over abstraction in the future.
Likewise, finding secondary
uses for our wastewater could
represent a more significant
opportunity going forward.
W1.2i
(W1.2i) Provide total water discharge data by destination.
Relevance
Volume
Comparison
Please explain
(megaliters/year)
with previous
reporting
year
Fresh surface
Relevant
2,549
Higher
Relevant: Calculated discharge to
water
surface water accounts for
approximately 17% of Unilever’s
wastewater discharged. Where we
are discharging directly to the
environment. Performance:
Overall reported water discharges
have reduced by 68% vs previous
year, this is largely a result of
improved reporting capabilities,
24
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
moving away from calculated
wastewater volumes to reported.
We are adopting a Circular Water
philosophy in many sites where
wastewater is treated & reused.
Water discharge volumes are
estimated using a category level
mass balance. Future: We expect
volume of water discharged to
surface water to reduce as
recycling activities & Circular
Water programmes increase and
local regulation increases.
Efficiencies in production and
treatment can lead to reduction in
abstraction & sludge & cost
savings, forming part of our
continuous improvement strategy
Brackish
Not
Water discharged to brackish
surface
relevant
surface water is not relevant for
water/seawater
our operations any longer.
Previous reporting periods had
reported volumes of water
discharged from non-contact
cooling activities associated with
our spreads business which was
divested previously, as reported in
2020 CDP Water Disclosure.
Future: . It is unlikely that direct
discharge of wastewater to oceans
will increase into the future, as we
seek to recover and reuse water
within our operations. And whilst in
the past non-Contact Cooling is a
low cost, with (in most cases) low
/negligible environmental impact
we are increasingly using heat
recovery systems which also
support our decarbonisation and
energy reduction agenda.
Groundwater
Not
Water discharged to groundwater
relevant
is not relevant for our operations.
We do not discharge wastewater
to groundwater. As regulated, and
as part of our water stewardship
agenda, we are recharging
25
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
groundwater in some places either
through direct recharge with
collected rainwater or through
nature based solutions in the
wider community
Future: Ground source heat
pumps represent a low carbon
opportunity to provide space
cooling that could gain increased
traction in the future. With
increasing water insecurity,
groundwater recharge with
rainwater may increase, subject to
local requirements and regulation.
However, unlikely that this will be
done with treated production
wastewater. We therefore do not
foresee discharge of treated
wastewater to groundwater
increasing in the future.
Third-party
Relevant
12,223
Lower
Relevant: Many of our sites use
destinations
municipal, public or private utilities
for additional treatment of
wastewater. This has remained
much the same as the previous
year, increasing by 0.2%. Due to
improvements in reporting
capabilities of wastewater
volumes, 83% (vs 61% in previous
year) of Unilever’s wastewater is
sent offsite for further treatment
prior to release back to the
environment or for subsequent
uses. Future: Short term
projections on water discharges
expected are varied. The agility
programme is anticipated to drive
an increase in change overs,
resulting in greater wastewater
volumes. Longer term however,
active mitigation programmes to
increase water recycling and
support a Circular Water
Programme, will create greater
value from wastewater minimising
26
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
discharges to municipal
wastewater treatment plants.
W1.2j
(W1.2j) Within your direct operations, indicate the highest level(s) to which you treat
your discharge.
Relevanc
Volume
Compariso
% of your
Please
e of
(megaliters/year
n of treated
sites/facilities/operation
explain
treatment
)
volume
s this volume applies to
level to
with
discharge
previous
reporting
year
Tertiary
Relevant
4,592
Much lower
31-40
Situation:
treatment
Note that
there have
been
improvement
s in central
data reporting
associated
with
wastewater
volumes
which provide
a more
accurate
picture of the
wastewater
discharges by
source.
Therefore
comparison
with previous
year does not
reflect the
operational
efficiencies
and
programmes
underway.
Rationale: As
part of our
ongoing
27
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
continuous
improvement
programme
for water in
our
manufacturin
g sites we are
increasing the
amount of
wastewater
recycling for
productive
uses in our
manufacturin
g sites. As
such,
increased
water quality
parameters
are required,
resulting in a
greater
amount of
tertiary
treatment.
Alignment
with
standards:
We are
seeing an
overall trend
in regulation
for water
recycling on
or off site e.g.
in Egypt, and
a growing
concern
about water
access in
places like
Chile or
Mexico. We
comply with
these
28
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
regulatory
standards
and they are
driving the
business
case for
increasing
reuse.
We anticipate
that
wastewater
treated using
tertiary
treatment will
increase as
regulations
become more
stringent
across our
Supply Chain
network. We
also
anticipate that
in the future
water
recycling
markets
create
secondary
use
opportunities
- requiring
specific water
qualities and
tertiary
treatment.
Information
comes from
central
technology
inventory
detailing
treatment
methods and
29
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
a combination
of actual
reported and
calculated
wastewater
volume data
based on a
model. We
aim to
improve data
quality on
centrally
reported
wastewater
volumes.
Secondary
Relevant
4,364
Much lower
21-30
Situation:
treatment
Note that
there have
been
improvement
s in central
data reporting
associated
with
wastewater
volumes
which provide
a more
accurate
picture of the
wastewater
discharges by
source.
Therefore
comparison
with previous
year does not
reflect the
operational
efficiencies
and
programmes
underway.
Rationale:
We have
30
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
various types
of secondary
treatment of
wastewater
across our
manufacturin
g operations,
based on age
of facility and
the category
of wastewater
e.g. ice
cream vs.
homecare.
Secondary
treatment as
highest level
of treatment
is mainly for
those sites
which
discharge
municipal /
industrial
wastewater
treatment.
Alignment
with
standards:
Overall we
anticipate that
municipalities
will place
increased
requirements
on industries
to reduce the
load prior to
central
treatment,
based on a
trend of
increased
flows into
shared
31
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
infrastructure
and the
increasing
attention on
water
authorities’
performance.
Information
comes from
central
technology
inventory
detailing
treatment
methods and
a combination
of actual
reported and
calculated
wastewater
volume data
based on a
model. We
aim to
improve data
quality on
centrally
reported
wastewater
volumes.
Primary
Relevant
4,095
Much lower
21-30
Situation:
treatment
Note that
only
there have
been
improvement
s in central
data reporting
associated
with
wastewater
volumes
which provide
a more
accurate
picture of the
wastewater
32
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
discharges by
source.
Therefore
comparison
with previous
year does not
reflect the
operational
efficiencies
and
programmes
underway.
Rationale:
Primary
treatment of
wastewater is
used to
remove
suspended
solids and
FOGs.
Generally this
consists of fat
traps and
dissolved air
floatation.
Primary
treatment as
highest level
of treatment
is mainly for
those sites
which
discharge
municipal /
industrial
wastewater
treatment.
Alignment
with
standards:
Overall we
anticipate that
municipalities
33
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
will place
increased
requirements
on industries
to reduce the
load prior to
central
treatment,
based on a
trend of
increased
flows into
shared
infrastructure.
In addition,
programmes
and targets
which
incentivise
water reuse
and recycling
would require
more
advanced
treatment
types.
Information
comes from
central
technology
inventory
detailing
treatment
methods and
a combination
of actual
reported and
calculated
wastewater
volume data
based on a
model. We
aim to
improve data
quality on
34
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
centrally
reported
wastewater
volumes.
Discharge
Not
We do not
to the
relevant
discharge
natural
wastewater to
environmen
the nature
t without
environment
treatment
without
treatment.
Discharge
Relevant
1,722
Much lower
11-20
Rationale:
to a third
There are 31
party
sites that
without
discharge
treatment
wastewater to
a third party
without prior
treatment.
These sites
are generally
low flow and
relatively low
water users
e.g. Tea,
savoury,
deodorants
and where we
have an
agreement
with an offsite
third party or
municipality
to treat the
wastewater
before
release. It is
expected that
the volumes
discharged
without
treatment will
reduce into
the future as
we place
increasing
35
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
focus on
water reuse
and recycling
in our direct
operations.
Alignment
with
standards: we
comply with
local
regulatory
standards for
these sites.
Information
comes from
central
technology
inventory
detailing
treatment
methods and
a combination
of actual
reported and
calculated
wastewater
volume data
based on a
model. We
aim to
improve data
quality on
centrally
reported
wastewater
volumes
Other
Not
There are no
relevant
other
treatment
types
considered.
36
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
W1.3
(W1.3) Provide a figure for your organization’s total water withdrawal efficiency.
Revenue
Total water
Total water
Anticipated forward trend
withdrawal
withdrawal
volume
efficiency
(megaliters)
Row
52,440,000,000
30,087
1,742,945.4581713
Note that there is a difference between
1
Unilever’s externally reported Water
withdrawal data and that disclosed in
CDP Water. This is because Unilever’s
Water Abstraction metric excludes
collected rainwater used for production
related activities. It is excluded to
incentivise rainwater collection which
generally has longer paybacks. This is
outlined in Unilever Basis of
Preparation.
W-FB1.3
(W-FB1.3) Do you collect/calculate water intensity for each commodity reported in
question W-FB1.1a?
Agricultural
Water intensity
Water intensity
Please explain
commodities
information for this
information for this
produced commodity is
sourced commodity is
collected/calculated
collected/calculated
Other
Not applicable
Yes
We do not collect actual
commodities
water intensity data, but the
from W-FB1.1a,
‘theoretical’ total water
please specify
consumed has been
Cocoa
calculated by dividing the
volumes purchased by the
global average footprint
(m3/ton) for water provided
by the Water Footprint
Network.
Other
Not applicable
Yes
We do not collect actual
commodities
water intensity data, but the
from W-FB1.1a,
‘theoretical’ total water
please specify
consumed has been
Wheat
calculated by dividing the
volumes purchased by the
global average footprint
(m3/ton) for water provided
37
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
by the Water Footprint
Network.
Other
Not applicable
Yes
We do not collect actual
commodities
water intensity data, but the
from W-FB1.1a,
‘theoretical’ total water
please specify
consumed has been
Soy oils
calculated by dividing the
volumes purchased by the
global average footprint
(m3/ton) for water provided
by the Water Footprint
Network.
Other
Yes
Yes
We do not collect actual
commodities
water intensity data, but the
from W-FB1.1a,
‘theoretical’ total water
please specify
consumed has been
Tea
calculated by dividing the
volumes purchased by the
global average footprint
(m3/ton) for water provided
by the Water Footprint
Network.
Palm oil
Not applicable
Yes
We do not collect actual
water intensity data, but the
‘theoretical’ total water
consumed has been
calculated by dividing the
volumes purchased by the
global average footprint
(m3/ton) for water provided
by the Water Footprint
Network.
W-FB1.3a
(W-FB1.3a) Provide water intensity information for each of the agricultural
commodities identified in W-FB1.3 that you produce.
Agricultural commodity
Other produced commodities from W-FB1.3, please specify
Tea
Water intensity value (m3)
47.79
38
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Numerator: water aspect
Total water consumption
Denominator
Tons
Comparison with previous reporting year
About the same
Please explain
Change from previous year: We have changed the methodology for how we calculate
this information. Therefore, it is not comparable with previous years.
How metric is used internally: Water consumed (blue, green, grey) has been calculated
using the WFN modelled data against volume consumed. Understanding water intensity
of crop production helps identify sourcing regions facing water stress & climate-related
risk. We produce tea in Kenya & Tanzania, neither of which are currently at high risk
(Maplecroft Water Stress Index). Influencing water intensity however would be
challenging, given 82% of consumption is via green water sources.
Future trends: We anticipate selling more in the future. If the intensity figure (from WFN)
changes, as too will the intensity for tea. We do not anticipate a change in the short/mid-
term.
Strategy to reduce intensity: Unilever produces tea against RA certification standard
which has water management requirements. In Kenya, we partnered with IDH to stop &
reverse deforestation in the SW Mau Forest, aiming to disrupt the effects.
W-FB1.3b
(W-FB1.3b) Provide water intensity information for each of the agricultural
commodities identified in W-FB1.3 that you source.
Agricultural commodities
Other sourced commodities from W-FB1.3, please specify
Cocoa
Water intensity value (m3)
2.55
Numerator: Water aspect
Total water consumption
Denominator
Tons
Comparison with previous reporting year
About the same
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Please explain
Change from previous year: We have changed the methodology for how we calculate
this information. Therefore, it is not comparable with previous years.
How metric is used internally: The underlying theoretical water intensity conversion
provided by the Water Footprint Network did not change between years. However, in
previous years, we used the blue water conversion only as opposed to blue, green,
grey. We have now used the combined conversion figure from WFN against volume
purchased. This water use is rainfed, so there are no opportunities to reduce crop
intensity.
Future trends: We anticipate we will sell more in the future. If the intensity figure (from
WFN) changes, as too will the intensity for cocoa. We do not anticipate a change in the
short/mid-term.
Strategy to reduce intensity: Unilever’s cocoa suppliers address endemic ESG risks to
the geography & commodity, like poverty, child labour & deforestation. Although not a
priority issue in cocoa given the relatively high rainfall of Ghana & Cote d’ Ivoire, heat &
water stress of trees is addressed through the effective maintenance of shade trees.
Moreover, water risks are covered by RA & UTZ certification standards implemented by
our suppliers.
Agricultural commodities
Other sourced commodities from W-FB1.3, please specify
Soy oil
Water intensity value (m3)
71.65
Numerator: Water aspect
Total water consumption
Denominator
Tons
Comparison with previous reporting year
About the same
Please explain
Change from previous year: We have changed the methodology for how we calculate
this information. Therefore, it is not comparable with previous years.
How metric is used internally: The underlying theoretical water intensity conversion
provided by the Water Footprint Network did not change between years. However, in
previous years, we used the blue water conversion only as opposed to blue, green,
grey. We have now used the combined conversion figure from WFN against volume
purchased.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Future trends: We anticipate we will sell more products in the future. If the intensity
figure (from WFN) changes, as to will the crop intensity for soy oil. We do not anticipate
a change in the short to mid-term.
Strategy to reduce intensity: We do not currently have strategies to apply this knowledge
to decision-making in soy oil sourcing. More broadly, we invest in sustainability
programs like the United States Sustainable Soy Assurance Protocol, RTRS and
Proterra, which include requirements for the management of water risks. Influencing
water intensity, however, would be challenging, given that 95% of modelled
consumption comes from green water sources.
Agricultural commodities
Other sourced commodities from W-FB1.3, please specify
Wheat
Water intensity value (m3)
72.11
Numerator: Water aspect
Total water consumption
Denominator
Tons
Comparison with previous reporting year
About the same
Please explain
Change from previous year: We have changed the methodology for how we calculate
this information. Therefore, it is not comparable with previous years. The underlying
theoretical water intensity value did not change between years.
How metric is used internally: One-fifth of modelled consumption comes from blue water
sources, so there are opportunities to reduce water use coming from surface and
groundwater sources. These opportunities are evaluated by producers supply us with
volume that is certified against a sustainability standard like the Sustainable Agriculture
Code and the Farm Sustainability. Management requirements of these standards
include having a water management plan and ensuring equitable distribution of water in
the catchment.
Future trends: We anticipate we will sell more products in the future. If the intensity
figure (from WFN) changes, as to will the crop intensity for soy oil. We do not anticipate
a change in the short to mid-term.
Strategy to reduce intensity: We do not currently have strategies to apply this knowledge
to decision-making in wheat sourcing.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Agricultural commodities
Palm oil
Water intensity value (m3)
181.54
Numerator: Water aspect
Total water consumption
Denominator
Tons
Comparison with previous reporting year
About the same
Please explain
Change from previous year: We have changed the methodology for how we calculate
this information. Therefore, it is not comparable with previous years.
How metric is used internally: The underlying theoretical water intensity conversion
provided by the Water Footprint Network did not change between years. However, in
previous years, we used the blue water conversion only as opposed to blue, green,
grey. We have now used the combined conversion figure from WFN against volume
purchased. Palm oil is a rainfed crop, of which 96% of total water consumption is
attributed to this source.
Future trends: We anticipate we will sell more products in the future. If the intensity
figure (from WFN) changes, as to will the crop intensity for palm oil. We do not
anticipate a change in the short to mid-term.
Strategy to reduce intensity: Given this dependence on rainfall, there is no opportunity
to influence the water use intensity of the crop and we therefore do not currently have
strategies to apply this knowledge to decision-making in palm oil sourcing.
Agricultural commodities
Other sourced commodities from W-FB1.3, please specify
Tea
Water intensity value (m3)
47.79
Numerator: Water aspect
Total water consumption
Denominator
Tons
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Comparison with previous reporting year
About the same
Please explain
Change from previous year: We have changed the methodology for how we calculate
this information. Therefore, it is not comparable with previous years.
How metric is used internally: In most countries, tea is a rainfed crop, which is why 82%
of the modelled water intensity for tea is attributable to green water.
Future trends: We do not anticipate a change in the short to mid-term.
Strategy to reduce intensity: We do not currently have strategies to reduce the water
intensity of tea, as this is seen as infeasible in most producing countries. Nevertheless,
we have a commitment to source all of our tea sustainably, by buying volume certified
against standards like Rainforest Alliance and Trustea. These standards contain
requirements for water conservation and management, which ensures certified farmers
implement strategies to manage water-related risks. If the intensity figure (from WFN)
changes, as to will the crop intensity for tea.
W1.4
(W1.4) Do you engage with your value chain on water-related issues?
Yes, our suppliers
Yes, our customers or other value chain partners
W1.4a
(W1.4a) What proportion of suppliers do you request to report on their water use,
risks and/or management information and what proportion of your procurement
spend does this represent?
Row 1
% of suppliers by number
26-50
% of total procurement spend
26-50
Rationale for this coverage
Unilever spends around €34bn on goods & services annually from around 53,000
suppliers, giving us scale & impact to influence those we work with. Aligned with our
strategy to sustainability source 100% of our key agricultural crops, we collect water use
information from agricultural suppliers through the use of our Sustainable Agriculture
Code (SAC) or equivalent scheme. These suppliers were chosen because they are key
suppliers of the commodities we use in our operations.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
These suppliers are incentivised to report as measuring progress is a mandatory
requirement of our SAC where ‘Unilever suppliers must provide the necessary data’ for
calculating their water intensity metrics and would risk being unfavorable if they did not.
Of our total supplier spend, we spend 33% on raw materials. 45% of which comply with
our sustainable sourcing requirements and who via this program are requested to report
on water use, risks and/or management information. Since 2010 we have implemented
our sustainable water practices on 70% of our supply chain of key agriculture materials
and 56% of our total agricultural supply chain by volume. This corresponds to have
engaged with 1085 suppliers (38% of all agriculture suppliers).
Impact of the engagement and measures of success
Unilever engages suppliers to improve the sustainability practices of their farmers using
a team of specialized consultants. We count materials as sustainable when they are
Sustainable Agriculture Code (SAC) compliant or certified against an equivalent 3rd-
party standard. These standards set requirements for the management of water risks
e.g. abstraction of water from water sources for irrigation. Suppliers are requested to
report on water use, water risks and management practices. To monitor compliance with
the code, a 3rd-party body conduct audits of suppliers implementing the SAC. This
includes water management requirements and where deviations are found, corrective
actions are taken to rectify.
Our measure of success is the rate of compliance against the SAC. In 2020, only 1% of
suppliers were non-compliant.
In addition, we collect quantitative data related to the volume of irrigation water used per
tonne of crop produced. The data collected is used to track suppliers’ water use
performance over time, test the impact of particular interventions and engage with
suppliers on possible improvements.
Comment
Coverage here is based on agricultural raw material suppliers as a proportion of total
suppliers which is why it seems low. Our SAC has the expectations set out for our
suppliers, including water management practices which are mandatory, expected &
leading. See SAC sections 4.1 - Improving water use & efficiency, 4.2 - Irrigation for
more information.
W1.4b
(W1.4b) Provide details of any other water-related supplier engagement activity.
Type of engagement
Innovation & collaboration
Details of engagement
Encourage/incentivize innovation to reduce water impacts in products and services
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Provide training and support on sustainable agriculture practices to improve water
stewardship
Educate suppliers about water stewardship and collaboration
% of suppliers by number
26-50
% of total procurement spend
26-50
Rationale for the coverage of your engagement
Coverage: Unilever spends around €34bn on goods & services annually from around
53,000 suppliers, giving us scale & impact to influence those we work with. Aligned with
our strategy to sustainability source 100% of our key agricultural crops, we collect water
use information from agricultural suppliers through the use of our Sustainable
Agriculture Code (SAC) or equivalent scheme. These suppliers are chosen because
they are key suppliers of the commodities we use in our operations. Coverage here is
based on agricultural raw material suppliers as a proportion of total suppliers. Our SAC
has the expectations set out for our suppliers, including water management practices
which are mandatory, expected & leading.
These suppliers are incentivised to report as measuring progress is a mandatory
requirement of our SAC where ‘Unilever suppliers must provide the necessary data’ for
calculating their water intensity metrics and would risk being unfavorable if they did not.
Of our total supplier spend, we spend 33% on raw materials. 45% of which comply with
our sustainable sourcing requirements and who via this program are requested to report
on water use, risks and/or management information. Since 2010 we have implemented
our sustainable water practices on 70% of our supply chain of key agriculture materials
and 56% of our total agricultural supply chain by volume. This corresponds to have
engaged with 1085 suppliers (38% of all agriculture suppliers).
Impact of the engagement and measures of success
Beneficial outcomes: Unilever engages suppliers to improve the sustainability practices
of their farmers using a team of specialized consultants. We count materials as
sustainable when they are Sustainable Agriculture Code (SAC) compliant or certified
against an equivalent 3rd-party standard. These standards set requirements for the
management of water risks e.g. abstraction of water from water sources for irrigation.
Suppliers therefore report on water use, water risks and management practices. To
monitor compliance with the code, a 3rd-party body conduct audits of suppliers
implementing the SAC. This includes water management requirements and where
deviations are found, corrective actions are taken to rectify.
How success is measured: Our measure of success is the rate of compliance against
the SAC. In 2021, only 1% of suppliers were non-compliant. In addition, we collect
quantitative data related to the volume of irrigation water used per tonne of crop
produced. The data collected is used to track suppliers’ water use performance over
time, test the impact of particular interventions and engage with suppliers on possible
improvements.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Comment
Coverage here is based on agricultural raw material suppliers as a proportion of total
suppliers which is why it seems low. Our SAC has the expectations set out for our
suppliers, including water management practices which are mandatory, expected &
leading. See SAC sections 4.1 - Improving water use & efficiency, 4.2 - Irrigation for
more information.
Type of engagement
Innovation & collaboration
Details of engagement
Provide training and support on sustainable agriculture practices to improve water
stewardship
% of suppliers by number
Less than 1%
% of total procurement spend
Less than 1%
Rationale for the coverage of your engagement
Coverage: Only suppliers covered under one brand whose related crops are the most
water-intensive have been selected for this engagement.
Impact of the engagement and measures of success
Beneficial outcomes: Our brands are working to protect and preserve natural habitats in
the places their ingredients are produced. Part of our Climate & Nature Fund, Knorr
continues its work with farmers and growers through a new series of 50 projects aiming
to establish regenerative agriculture sourcing for 80% of its key raw materials over five
years. One project, for example, is using satellite data and digital sensors to help
tomato farmers in the south of Spain optimise their water use and improve soil health
through cover cropping. Farmers reported an increase in yield during the first harvest in
October 2021. Another project the brand is working on is with it’s US rice supplier,
Riviana, implementing a suite of farming practices that enable farmers to grow rice while
preserving water and decreasing methane emissions. We’re partnering with the
University of Arkansas to engage the farmers in the programme and create and
measure impacts of regenerative practices on water capture and emissions. We
estimate that through these programmes, we can reduce water use and GHG emissions
by around 30% while improving biodiversity, soil health and livelihoods.
How success is measured: Our supplier engagement success measurement varies
depending on the project but some examples include metrics such as the % of key raw
materials sourced from regenerative agriculture, through increased crop yield and
reduced water use.
Comment
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Unilever will continue identifying key suppliers and farmers to engage via our Climate &
Nature Fund.
Type of engagement
Innovation & collaboration
Details of engagement
Encourage/incentivize innovation to reduce water impacts in products and services
% of suppliers by number
Less than 1%
% of total procurement spend
Less than 1%
Rationale for the coverage of your engagement
Coverage: Driving regenerative agriculture practices in support of improving Unilever’s
total water footprint will require disruptive business model changes for both our
agricultural partners and our suppliers. A business-unusual vehicle like the Climate &
Nature Fund is the best approach for driving this disruption.
As part of our Compass ambitions, Unilever committed to invest €1B in a Climate &
Nature Fund that would drive delivery of our ‘Climate Action’ and ‘Protect and
Regenerate Nature’ targets. The Climate & Nature Fund was established in July 2021
and by December 5 programs had already been approved worth €60M of investment;
one of which is a program looking to pilot regenerative agriculture practices (including
reduction of water footprint) through a series of lighthouse projects. Ambition is for these
practices to scale and lead to established industry standard.
Impact of the engagement and measures of success
Beneficial outcomes: Our Knorr brand continues its work with farmers and growers
through a new series of 50 projects aiming to establish regenerative agriculture sourcing
for 80% of its key raw materials over five years. One project, for example, is using
satellite data and digital sensors to help tomato farmers in the south of Spain optimise
their water use and improve soil health through cover cropping. Farmers reported an
increase in yield during the first harvest in October 2021. Another project the brand is
working on is with it’s US rice supplier, Riviana, implementing a suite of farming
practices that enable farmers to grow rice while preserving water and decreasing
methane emissions. We’re partnering with the University of Arkansas to engage the
farmers in the programme and create and measure impacts of regenerative practices on
water capture and emissions. We estimate that through these programmes, we can
reduce water use and GHG emissions by around 30% while improving biodiversity, soil
health and livelihoods.
How success is measured: The primary measure will be number of hectares on which
regenerative practices are implemented. However, for each program we will also be
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
measuring progress against multiple indicators like water consumption, soil health and
soil organic carbon.
Comment
Unilever will continue identifying key suppliers and farmers to engage via our Climate &
Nature Fund.
Type of engagement
Innovation & collaboration
Details of engagement
Encourage/incentivize innovation to reduce water impacts in products and services
Provide training and support on sustainable agriculture practices to improve water
stewardship
Educate suppliers about water stewardship and collaboration
% of suppliers by number
Less than 1%
% of total procurement spend
Less than 1%
Rationale for the coverage of your engagement
Coverage: In 2020, we set out our ambition to achieve net zero emissions across our
value chain by 2039. This is a collective challenge, and an urgent one. Our suppliers
bring critical climate action innovations to us.
Impact of the engagement and measures of success
Beneficial outcomes: Through our partnership with Neste, we’re exploring new sources
of renewable and recycled carbon for our cleaning product formulations. In June 2021,
we joined forces with Coca-Cola and Colgate-Palmolive in AB InBev’s 100+ accelerator
to push sustainable innovation in climate, water, packaging, and sustainable agriculture
in supply chains. We began five pilots to test innovations in sustainable packaging,
water and energy - for example, converting food waste into animal feed in East Africa
and repurposing brewery grains for packaging materials in China.
How success is measured: The success of these pilots will be monitored and measured
and ultimately will be defined as a reduction in our value chain emissions.
Comment
Unilever will continue identifying suppliers with whom to engage and incentivize them to
adopt innovative practices that reduces the water impact of their products.
W1.4c
(W1.4c) What is your organization’s rationale and strategy for prioritizing
engagements with customers or other partners in its value chain?
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Partners engaged: For the sake of our CDP disclosure, we are talking about consumers as our
customers, rather than our retailers. Over 85% of water use across our value chain occurs
when consumers use our products, so our engagement activities focus on them to understand
their needs and where we can support them in making our products water-smart, where they
use less water in their homes.  
Method & strategy of engagement: We engage with consumers using a number of different
channels to gather insights, including 37 People Data Centres which conduct social media
analytics to understand sentiment, consumer carelines which gather verbal feedback from
consumers on our products and broader market research on consumers trends. In response to
these insights, we’re concentrating on consumer segments and product categories which
require most water to use. Water is essential for people to enjoy our products. It is our
responsibility to help firstly, understand the consumer use impact of our products and secondly,
to help consumers reduce the impact of our products. We are therefore focusing on making
water-smart products that support our consumers to use less water in their homes. For
example, our antibacterial Sunlight washing-up liquid that can be used without water and
rinsing. We pay particular attention to consumers who use our products in areas of water
scarcity. We’re looking at how climate change may affect the availability of water and what risks
this creates for our consumers, our suppliers and our business.
Success measurement: Ultimately, the success of our engagement with consumers is
determined by the sales of products with water saving benefits. For example, our laundry brand
Sunlight’s breakthrough SmartFoam technology, delivering superior performance, less suds
and half the amount of water needed to wash, continues to grow sales in South Africa and
expanded to more formats in India. It provides a critical benefit for consumers in water stressed
areas.
W2. Business impacts
W2.1
(W2.1) Has your organization experienced any detrimental water-related impacts?
Yes
W2.1a
(W2.1a) Describe the water-related detrimental impacts experienced by your
organization, your response, and the total financial impact.
Country/Area & River basin
Egypt
Nile
Type of impact driver & Primary impact driver
Regulatory
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Tighter regulatory standards
Primary impact
Other, please specify
Mandatory water efficiency, conservation, recycling or process standards
Description of impact
National commitments introduced through the Egypt Strategy 2030 in 2019 are being
introduced by industrial zone authorities, changing their requirements to minimise water
requirements and encourage water recycling within or outside of facility boundary. This
regulatory impact is requiring sites in the area to implement advanced water recycling
and reuse systems resulting in an increase in production costs of Unilever. To respond
requirements, we are investing €4.5 million on advanced wastewater treatment.
Individually, this is not deemed to be substantive.
Primary response
Adopt water efficiency, water reuse, recycling and conservation practices
Total financial impact
4,500,000
Description of response
To respond to this Unilever are underway with wastewater treatment expansion plans to
be completed by 2023, estimated costs of €4.5 million across 3 factories.
Country/Area & River basin
India
Ganges - Brahmaputra
Type of impact driver & Primary impact driver
Regulatory
Tighter regulatory standards
Primary impact
Increased production costs
Description of impact
In over-exploited ground water zones, The Central Ground Water Authority, Government
of India has revised guidelines for groundwater use as part of ensuring sustainable
groundwater management. This requires that existing industry in these areas to
recharge groundwater at 200% of groundwater abstraction. There is also an additional
requirement for all industries located in these zones to fully recycle and reuse the
wastewater. The additional regulatory standards require additional capital investment
into advanced wastewater recycling, rainwater harvesting onsite, and pond building and
restoration offsite. Failure to meet regulatory requirements would affect our license to
operate. This requirement affects 13 Unilever sites situated in Critical and Over-
exploited zones within India.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Primary response
Adopt water efficiency, water reuse, recycling and conservation practices
Total financial impact
2,220,000
Description of response
To respond to these new requirements, in 2020-2021, Unilever has installed various
water efficiency initiatives concentrating on reducing freshwater abstraction (e.g.
expansion of rainwater harvesting, optimization of RO plants) at an estimated cost of
€200K. Expansion plans for advanced wastewater treatment investment are in
development, at one site this is estimated to cost over €2million. Community Water
projects implemented as part of Prabhat program estimated cost €100K per site over a
2-year period.
W2.2
(W2.2) In the reporting year, was your organization subject to any fines, enforcement
orders, and/or other penalties for water-related regulatory violations?
No
W3. Procedures
W-FB3.1
(W-FB3.1) How does your organization identify and classify potential water pollutants
associated with its food, beverage, and tobacco sector activities that could have a
detrimental impact on water ecosystems or human health?
Product Design: Each new product innovation is evaluated systematically and scientifically by
our team in the Safety and Environmental Assurance Centre (SEAC). Our scientists consider
any safety risks to the consumers who use our products, to the workers who make them, and to
the environment to ensure all our products are safe to use. We use environmental safety
assessments to determine any potential risk of adverse effects that could come from using and
disposing of our products. Our assessments are exposure-driven: we use state-of-the-art
computer modelling approaches to predict what happens to each of the ingredients once they
are disposed of, and how much could end up in the environment. We consider factors
influencing how much could enter the environment, such as whether the product will undergo
wastewater treatment as well as whether the ingredient will biodegrade and, if so, how quickly.
Operations: Compliance with legal requirements and regulatory standards associated with
discharge of water pollutants is part of our licence to operate, and a requirement for 100% of
sites. This is done through a combination of onsite and offsite treatment of wastewaters.
Monitoring programmes developed locally are in compliance with local regulatory standards
and legislation and take into account the sensitivity of the water course into which the discharge
is going into. There is currently no central Unilever standard for the quality of water discharges
but all environmental aspects are managed under the Unilever Environmental Care Framework
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
- our internal environmental management system (which is aligned to ISO 14001). Chemical
Oxygen Demands (COD) data are required to be entered on our monitoring system on a
monthly basis whist all other data are recorded and collected at site level. This is measured in
line with the scope and assumptions detailed in our Basis of Preparation 2021 (independently
assured in alignment with ISAE 3000) - available through our corporate website. COD
represents the pollution potential of our wastewater leaving the site boundary and can vary
significantly based on the level of onsite and offsite treatment. COD load is typically calculated
using COD concentration data measured using a sampling technique and testing in either on or
off site laboratories, or using real time in-line TOC sensors together with volumetric flow data
from effluent flow meters on site.  Exceedances of legal requirements or environmental
incidents are reported and monitored via our recently updated centralised incident reporting
and management platform. 
Supply chain: Furthermore, for ingredient sourcing, risks are addressed through certification
schemes such as the Unilever Sustainable Agriculture Code (SAC), which prohibits the
dumping of waste into water bodies, bans the use of most toxic pesticides and requires that
risks of contamination by nutrients be minimised. Unilever has developed Global Guidelines on
the Use of Pesticides in Sustainable Tea Sourcing, listing which chemicals are unacceptable
due to their risks, building upon the World Health Organisation Recommended Classification of
Pesticides by Hazard, the Stockholm Convention on Persistent Organic Pollutants and the
Rotterdam Convention on Prior Informed Consent for certain hazardous chemicals and
pesticides in international trade. 
W-FB3.1a
(W-FB3.1a) Describe how your organization minimizes the adverse impacts of
potential water pollutants on water ecosystems or human health associated with your
food, beverage, and tobacco sector activities.
Potential water pollutant
Fertilizers
Activity/value chain stage
Agriculture - direct operations
Agriculture - supply chain
Description of water pollutant and potential impacts
Crops under production in our direct operations are limited to tea in plantations in Kenya
and Tanzania. All other agricultural materials Unilever sources come from our suppliers.
Impacts: In both cases, farming practices during the agriculture (direct and in our supply
chain) phase may include the use of fertilisers, (organic & synthetic). Impacts include
the pollution of watercourses and groundwater e.g. excess nitrates may lead to
eutrophication and the destabilising of aquatic ecosystems on both the local scale and
magnitude.
Management procedures
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Animal waste management
Livestock management
Soil conservation practices
Crop management practices
Sustainable irrigation and drainage management
Fertilizer management
Calculation of fertilizer intensity data
Follow regulation standards
Please explain
Managing Impacts: To minimize the impacts of potential water pollutant on ecosystems
or human health, the majority of our plantations have onsite wastewater treatment plants
which are either internally or externally operated, the remaining use offsite wastewater
treatment facilities managed by industrial centres or municipalities.
Where we source materials, our agricultural suppliers apply the Unilever Sustainable
Agriculture Code (SAC) and other schemes, which specify management procedures for
water pollution, like the ones stated here. Some examples below are taken from Section
1 of the SAC which focuses on Crop and pasture nutrient management including
requirements for suppliers to have: - Nutrient Management Plans and nutrient
application records. - Be informed by nutrient deficiency symptoms, soil and tissue
analyses: - Conduct nitrogen and phosphorus calculations - Practices in place to
minimise risks of contamination and pollution associated with nutrient inputs Fertilizer
management is important as it minimises risks of contamination and pollution by
ensuring that the right amount of fertiliser is used, and that it is applied in ways that
minimise waste and pollution (avoiding certain application techniques, timing and
ensuring that machinery is well maintained and calibrated). By implementing the SAC
and in-turn the management procedures described, farmers are made to be aware of
the potential sources of pollution on their farm, whilst assurance processes ensure
compliance against these practices is met.
Measurement: Certification and verification audits are conducted which monitor
compliance with the SAC and its requirements. The compliance rate is therefore a
measure of success, whilst steps ensuring corrective actions are taken ensure that any
non-conformances are rectified in a timely manner.
Potential water pollutant
Pesticides and other agrochemical products
Activity/value chain stage
Agriculture - direct operations
Agriculture - supply chain
Description of water pollutant and potential impacts
Crops under production in our direct operations are limited to tea in plantations in Kenya
and Tanzania. All other agricultural materials Unilever sources come from our suppliers.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
In both cases, farming practices may include the use of pesticides.
Impacts: run-off can carry pesticides into aquatic environments leading to the poisoning
of local wildlife and/or widespread transportation by global circulation. Wind can carry
them to surrounding areas potentially effecting the success of other species on a large
scale and magnitude.
Management procedures
Pesticide management
Substitution of pesticides for less toxic or environmentally hazardous alternatives
Waste water management
Follow regulation standards
Please explain
Managing Impacts: Both at Unilever’s tea plantations in Kenya and Tanzania, and on
farms implementing the Sustainable Agriculture Code (SAC) or other schemes
implemented by our agricultural suppliers, integrated pest management is conducted, to
seek out and adopt viable alternatives to more toxic chemical pesticides. The SAC
stipulates several requirements pertaining to the management procedures highlighted in
‘Management procedures’ column in this table aimed at better soil and water
management, biodiversity, and a range of other environmental impacts we can
directly/indirectly influence. It’s also a core focus in our Compass strategy, to achieve
100% sustainable sourcing of our key agricultural crops. Section 2 of our SAC focuses
on pest, disease and weed management with requirements for the following: Pesticides
with active ingredients classified by the World Health Organisation (WHO) as extremely
hazardous (class 1a) are prohibited from use (amongst others), whilst highly hazardous
(class 1b) ingredients must be phased out within 3 years of implementation of the code.
Integrated pest management (IPM) - an approach of: (1) prevention through crop
rotation, biological and physical controls, etc, (2) observation through monitoring and
action thresholds, etc and lastly (3) intervention through ingredient selection, resistance
avoidance, etc; is adopted by producers.
Measurement: Certification and verification audits are conducted which monitor
compliance with the SAC and its requirements. The compliance rate is therefore a
measure of success, whilst steps ensuring corrective actions are taken ensure that any
non-conformances are rectified in a timely manner.
Potential water pollutant
Manure and slurries
Activity/value chain stage
Agriculture - direct operations
Agriculture - supply chain
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Description of water pollutant and potential impacts
Unilever agricultural raw material suppliers implementing the Sustainable Agriculture
Code and other schemes recognised in the Scheme Rules, comply with a series of
requirements that address potential water pollutants derived from farming operations.
Impacts: Farming practices may include the use of fertilisers (including manure), while
livestock farms are also likely to use antibiotics and other veterinary medicines. All these
are potential sources of water pollution and are from our supply chain. Within our
manufacturing operations, we do not have manure or slurry pollutants. However, waste
sludge is derived from our wastewater treatment plants. In some countries this is used
as a soil improver with quality in line with local regulation.
Impacts include the pollution of watercourses and groundwater e.g. excess nutrient
application may lead to eutrophication and the destabilising of aquatic ecosystems; the
application of certain pesticides may cause damage to aquatic organisms, and both
pesticides and nutrients can bring water below that required for potability in the local
area of operation. Effluent treatment plant sludge represents around 25% of our annual
waste disposed by sites.
Management procedures
Animal waste management
Livestock management
Waste water management
Follow regulation standards
Please explain
Managing Impacts: The Sustainable Agriculture Code (SAC) and other schemes
implemented by our agricultural suppliers, stipulate several requirements pertaining to
the management procedures highlighted in ‘Management procedures’ column in this
table aimed at better soil and water management, biodiversity, and a range of other
environmental impacts we can directly/indirectly influence. Surface and ground water
must be protected from direct and indirect pollution. Sewage and wash water are the
main sources of this, so none may discharge directly into watercourses and these must
be a sufficient distance to avoid pollution. Crossing points for livestock made of hard
surfaces to avoid riverbank erosion and contamination.
Measurement: Certification and verification audits are conducted which monitor
compliance with the SAC and its requirements. The compliance rate is therefore a
measure of success, whilst steps ensuring corrective actions are taken ensure that any
non-conformances are rectified in a timely manner.
W3.3
(W3.3) Does your organization undertake a water-related risk assessment?
Yes, water-related risks are assessed
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
W3.3a
(W3.3a) Select the options that best describe your procedures for identifying and
assessing water-related risks.
Value chain stage
Other stages of the value chain
Coverage
Full
Risk assessment procedure
Water risks are assessed as part of other company-wide risk assessment system
Frequency of assessment
More than once a year
How far into the future are risks considered?
More than 6 years
Type of tools and methods used
Tools on the market
Tools and methods used
Other, please specify
Task Force on Climate-related Financial Disclosures
Contextual issues considered
Water regulatory frameworks
Status of ecosystems and habitats
Stakeholders considered
Customers
Employees
Investors
Local communities
Comment
We publish our scenario analysis as part of our TCFD disclosure in our Annual Report,
including methodology, assumptions and quantification of risks and opportunities. We
have conducted several high-level scenario analyses on the potential impacts of climate
change to help us consider and adapt our strategies and financial planning. In prior
years, we have reported the potential financial impacts of climate change on our
business in 2030 if average global temperatures were to rise by 2°C and 4°C above pre-
industrial levels by 2100. In 2021, as new scientific evidence was released by the UN’s
Intergovernmental Panel on Climate Change (IPCC) and the global consensus around
the need of governments to commit to a 1.5°C world strengthened, we extended our
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
scenario analyses to assess the impacts of a 1.5°C temperature increase above pre-
industrial levels by 2100 on our business in 2030, 2039 and 2050.
Value chain stage
Direct operations
Coverage
Full
Risk assessment procedure
Water risks are assessed as part of an established enterprise risk management
framework
Frequency of assessment
More than once a year
How far into the future are risks considered?
3 to 6 years
Type of tools and methods used
Tools on the market
Enterprise risk management
Tools and methods used
WRI Aqueduct
Other, please specify
ISO 140001, Unilever Environmental care Framework Standard, Interviews, Media
Reviews, Employee Engagement
Contextual issues considered
Water regulatory frameworks
Status of ecosystems and habitats
Access to fully-functioning, safely managed WASH services for all employees
Stakeholders considered
Customers
Employees
Investors
Local communities
Comment
Water stress assessments for our manufacturing operations we use the WRI Aqueduct
tool. This is reviewed on an ongoing basis in light of significant changes e.g. acquisitions
or information from the factory network on emerging water insecurity. Ratings and media
reviews are discussed with factory teams. At a site level we use Unilever’s
Environmental Care Framework Standard which takes into consideration local water
conditions and the local environment, helping us prioritise according to the local risk and
establish controls to mitigate risk them. Environmental Audits are conducted against the
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Unilever’s Environmental Care Framework Standard and / or ISO14001, as well as the
audits conducted through Unilever Manufacturing System Environment Pillar and
wherever it’s a requirement of local compliance.
Value chain stage
Supply chain
Coverage
Full
Risk assessment procedure
Water risks are assessed as part of an established enterprise risk management
framework
Frequency of assessment
Annually
How far into the future are risks considered?
More than 6 years
Type of tools and methods used
Tools on the market
Enterprise risk management
Tools and methods used
Water Footprint Network Assessment tool
Other, please specify
Internal company methods
Contextual issues considered
Implications of water on your key commodities/raw materials
Water regulatory frameworks
Status of ecosystems and habitats
Stakeholders considered
Customers
Suppliers
Comment
Unilever adopts a risk management process that is aligned to our Vision to our ambition
to be a leader as a sustainable business. Our approach to risk management is designed
to provide reasonable, but not absolute, assurance that our assets are safeguarded, the
risks facing the business are being assessed and mitigated and all information that may
be required to be disclosed is reported to Unilever’s senior management. Using
resources from Water Footprint Network & the Life Cycle Analysis community, we are
able map the water supplies used to produce our agricultural & non-renewable
materials, so understand key materials & locations of greatest risk.
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Value chain stage
Other stages of the value chain
Coverage
Partial
Risk assessment procedure
Water risks are assessed in an environmental risk assessment
Frequency of assessment
Annually
How far into the future are risks considered?
More than 6 years
Type of tools and methods used
Tools on the market
International methodologies and standards
Databases
Other
Tools and methods used
Water Footprint Network Assessment tool
WRI Aqueduct
Environmental Impact Assessment
Life Cycle Assessment
IPCC Climate Change Projections
FAO/AQUASTAT
Maplecroft Global Water Security Risk Index
Regional government databases
Other, please specify
Internal studies-consumer use of product
Contextual issues considered
Water availability at a basin/catchment level
Water quality at a basin/catchment level
Implications of water on your key commodities/raw materials
Stakeholders considered
Customers
Local communities
NGOs
Comment
We have considered water scarcity as the number of people experiencing physical
water scarcity & lack access to sanitation/clean water. We calculate impact annually,
(absolute & per consumer use) using data from products in our 5 water-using
categories: Hair Care, Household Care, Laundry, Oral Care & Skin Cleansing & from 7
water-scarce countries. This helps us focus on water saving innovations where they are
truly needed i.e. innovating fast-rinse products or moving towards water-smart products
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
requiring little or no water. As an example, our Rin detergent bar uses up to half the
water needed for rinsing, making the washing process easier for consumers in water-
scarce regions. We’re also developing products that use no water at all, such as our hair
care brand, ‘the good stuff’, which includes eight no-rinse conditioners.
W3.3b
(W3.3b) Describe your organization’s process for identifying, assessing, and
responding to water-related risks within your direct operations and other stages of
your value chain.
Application of tools:
For all manufacturing operations, for ISO14001 or Unilever’s Environmental Care Framework
Standard we conduct aspects and impacts registers and site-based risk assessments which
include various water issues specific to the site. Risks are prioritized by site, with management
plans established to reduce risks.
At corporate level we use WRI Aqueduct to update the top-down assessment of water related
risks in 100% of our manufacturing sites.  For new acquisitions, we follow this with discussions
with sites and a media review. WRI Aqueduct ratings are used to establish investment criteria
for internal funding into water efficiency projects financed under the Low Carbon Fund. We use
social media reviews & news sites (e.g. SIGWATCH) on an ongoing basis to identify emerging
issues, changes in regulation & societal sentiment. Continuous contact with our sites teams
identify emerging indicators of water stress for instance, abstraction restrictions. National legal
teams are connected with regulators and information platforms to keep them up to date with
any changes and engage with the business directly where necessary. 
Our latest group-level materiality assessment highlighted new and emerging issues, and
checked whether we are disclosing/being transparent in the right areas. To reflect the ever-
changing sustainability landscape, we redesigned our materiality methodology. In our latest
assessment, water (and the 14 underlying water topics) was identified as one of our most
material issues across our value chain. We conducted an in-depth analysis of business impacts
and used data and insights to gauge the relative importance of each issue to our
stakeholders.
In creating our 1.5°C scenario analysis, we took the two pathways and considered the five
broad types of risks and opportunities using the TCFD risk framework: Regulatory, Market,
Physical environment risks; Innovative products and services opportunities; and Resource
efficiency, resilience, and market opportunities.
Why specific contextual issues are considered:
Within our risk assessment we consider water regulatory frameworks as it’s important for us to
be aligned to frameworks that vary across regions or are emerging to manage our water
resources. We also consider the status of ecosystems and habitats in areas that we operate as
this will have an impact on our supply chains and ability to resource raw materials for our
products. Furthermore, we review the implications of water linked to our key products as this
has the ability to impact consumer decision making. E.g. consumers in water-stressed locations
require more of our water-smart products, needing less water to be used. It’s important that all
our employees have access to safely managed WASH services and so we consider this when
reviewing manufacturing sites.
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Why specific stakeholders are considered:
Our employees are central to our business and so we consider them in ensuring that any water
related risks are mitigated. To keep our organisation future-fit and satisfy the needs of our
consumers we need to understand the shifting nature of their decision making linked to water
risks and the impact that this will have on purchasing our products and ultimately our revenue.
Being a purpose led organisation we consider the impact that our operations have on local
communities and the water risks associated. We also consider our investors in reviewing risks,
in particular legal and regulatory frameworks as it’s important that we are transparent and they
are well informed.
How the outcomes of the risk assessment are used to inform decision making:
Output from these assessments are used in various ways e.g. risk scores for individual
manufacturing sites are used within our Unilever Manufacturing System to stratify activities &
establish priorities. This is revised on an annual basis, or where there is change at the facility. It
also helps us to understand manufacturing sites that are located in areas classified as water-
stressed and prioritise for action. These risk assessments have also informed our decision to
implement water stewardship programmes in 100 of our most water stressed areas by 2030.
Within our agricultural supply chain, we have contributed to the WFN’s Water Footprint
Assessment Tool and conducted a risk assessment of our agricultural supply chain at a crop-
country level, based on scores assigned by Unilever’s sustainable sourcing team and
procurement colleagues. This has been used to inform discussions on where to prioritise
initiatives with suppliers/partners. Risk assessment forms the basis of SAC 2017 and the
equivalent certification schemes all of which address issues relating to water. In 2021, we
introduced the Unilever Regenerative Agriculture Principles (RAPS) which addresses water
principle. Through the certification process, risks are evaluated, and any major non-
compliances are remediated before certificates are issued.
W4. Risks and opportunities
W4.1
(W4.1) Have you identified any inherent water-related risks with the potential to have a
substantive financial or strategic impact on your business?
Yes, both in direct operations and the rest of our value chain
W4.1a
(W4.1a) How does your organization define substantive financial or strategic impact
on your business?
Definition: Substantive impacts for Unilever are those that would threaten the Groups business
model, future performance, solvency or liquidity in the next three years. We call these our
Principal risks & these apply to the Unilever Group (including our direct operations & supply
chain). One Unilever’s principal risks is climate change, which includes it’s impact on water and
the reduced demand for those of our products that require a significant amount of water during
consumer use.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Determination: We use our principal risks (all 14 included in pages 46-50 of our Annual Report
and Accounts 2021) to identify scenarios which could force Unilever to cease being viable over
a three-year period. Each year, we assess the cash flow impact a particular risk/mix of risks
could have to the business based on the amount of cash held, our operating cash flows and the
credit facilities available & their ability to affect the business operating & meeting its liabilities.
Our time horizons are aligned with our forward-looking planning, set out in our three-year
strategic plans and annual forecasts & our Boards assume overall accountability for the
management of risk & reviewing the effectiveness of Unilever’s risk management & internal
control systems.
Threshold: In assessing viability, ‘severe but plausible’ scenarios based on our principal risks
are considered and the definition we work with is 1% of our Group Turnover which was equal to
€524m in 2021. We identify substantive financial impact in 2 ways:
1. assessing scenarios for each individual principal risk, for example the termination of our
relationships with the three largest global customers; the loss of all material litigation cases; a
major IT data breach or reputational damage from not progressing against our plastic
packaging commitments, and the lost cost and growth opportunities from not keeping up with
technological changes
2. assessing scenarios that involve more than one principal risk, for example a major global
incident affecting one or more of Unilever’s key locations resulting in an outage for a year in a
key sourcing unit & significant water shortages in our key developing markets. An example of
this could be the loss of sales incurred in places like Sao Paolo which affected Unilever
operations during the 2015 drought. All the principal risks could impact our business within the
next two years (ie short-term risks, under 3 years), or could impact our business over the next
3-10 years (ie medium-term risks, less than 10 years).
W4.1b
(W4.1b) What is the total number of facilities exposed to water risks with the potential
to have a substantive financial or strategic impact on your business, and what
proportion of your company-wide facilities does this represent?
Total number
% company-
Comment
of facilities
wide facilities
exposed to
this represents
water risk
Row
9
1-25
The facilities included here and in further detail in Section 5
1
are those which pose a potential substantive financial or
strategic impact from water related stress based on the
above definition of substantive. A threshold of 1% of global
production has been used as a proxy for revenue, assuming
a full year of lost production. There are limitations for this
approach e.g. not all tonnage is valued the same, and this
does not take into account the supply chain network
flexibility that we have built into the system. For this
reporting, a facility is equivalent to Unilever’s definition of a
site, for which there may be multiple factories located and
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making different types of products.
9 facilities which have production volumes >1% of global
production volume have been included in the analysis below.
Where multiple smaller sites exist within the same basin,
these have been included in the narrative below.
W4.1c
(W4.1c) By river basin, what is the number and proportion of facilities exposed to
water risks that could have a substantive financial or strategic impact on your
business, and what is the potential business impact associated with those facilities?
Country/Area & River basin
Brazil
Parana
Number of facilities exposed to water risk
2
% company-wide facilities this represents
Less than 1%
% company’s total global revenue that could be affected
1-10
Comment
Although Global tools do not place the Parana basin as areas of water stress,
consultation and experience from our sites teams in the area recognise that the
depleting surface and groundwater levels and threats of regulatory responses and tariff
changes could justify elevating the water stress rating for four of the factories in the
basin. The Parana River basin includes the greater part of South Eastern Brazil,
Paraguay, South Eastern Bolivia, and northern Argentina.
In July 2021, internal reviews found that the country was experiencing the worst water
crisis in the last 91 years, which has impacts on hydro-energy generation and on other
sectors that depend on water use. Reservoirs in the South East & Mid West subsystem
were at ~28% of their capacity, much lower than previous year due to poor rainfalls and
an increase in energy demand (electricity consumption in Brazil, which grew 7.6% in the
first half compared to 2020).
Groundwater abstraction capacity constraints will place restrictions on site growth.
Water crisis was covered widely by media agencies with some citing the risks
associated with energy blackouts in 2022 and impact to the country’s economic
recovery.
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Production tonnage has been used as a proxy for turnover, a loss in volume due to
water stress will result in a drop in turnover. For short term issues Unilever has business
continuity plans in place at a regional level to avoid drops in service by managing
through the factory network and the site continue to drive continuous improvements in
water efficiency and water recycling.
Country/Area & River basin
India
Penner River
Number of facilities exposed to water risk
1
% company-wide facilities this represents
Less than 1%
% company’s total global revenue that could be affected
1-10
Comment
Through our company-wide risk assessment, the Penner River basin is identified as
water stressed, though as a result of different drivers. This is confirmed at the local level
with site engagement. The production is dependent on continued access to water.
Within the reporting year our operations were not directly affected by water security
issues but it remains an area of potential risk to the business. As part of the business'
continuous improvement programme the site is taking action to minimise water use. The
Prabhat Water Stewardship programme is taking action to address water insecurity in
the surrounding communities by taking action on pond renovations, rice intensification
and micro-irrigation, as well as establishment of community water governance and local
cadre. Production tonnage has been used as a proxy for turnover, a loss in volume due
to water stress will result in a drop in turnover. For short term issues Unilever has
business continuity plans in place at a regional level to avoid drops in service by
managing through the factory network.
Country/Area & River basin
South Africa
Orange
Number of facilities exposed to water risk
1
% company-wide facilities this represents
1-25
% company’s total global revenue that could be affected
1-10
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Comment
Through our company-wide risk assessment and engagement with the site team, the
factories located in the Orange river basin are located in an area increasingly exposed
to water stress. The production is dependent on continued access to water at a good
quality. Although there were no water related impacts to operations, to remains an area
of potential risk to the business.
Recent events in the river basin supporting Cape Town & surrounding area have
increased attention on the risks to the business in the Orange basin. As part of the
business' continuous improvement programme the site is taking action to minimise
water use. In 2020-21 the site started the water stewardship programme, following the
Alliance for Water Stewardship standard to better understand and respond to water
risks. Key risks were associated with: 1) declining availability and quality associated
from water authority potentially leading to increased competition for resources and / or
costs of raw water & additional treatment needs, and 2) Climate related drought events
resulting in business interruptions and potential introduction of new regulations.
Production tonnage has been used as a proxy for turnover, a loss in volume due to
water stress will result in a drop in turnover. For short term issues Unilever has business
continuity plans in place at a regional level to avoid drops in service by managing
through the factory network.
Country/Area & River basin
India
Other, please specify
Gulf of Kutch
Number of facilities exposed to water risk
1
% company-wide facilities this represents
Less than 1%
% company’s total global revenue that could be affected
1-10
Comment
Through our company-wide risk assessment, the Gulf of Kutch is identified as water
stressed. The production is dependent on continued access to water. Within the
reporting year our operations were not directly affected by water security issues but it
remains an area of potential risk to the business. As part of the business' continuous
improvement programme the site is taking action to minimise water use.
Production tonnage has been used as a proxy for turnover, a loss in volume due to
water stress will result in a drop in turnover. For short term issues Unilever has business
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
continuity plans in place at a regional level to avoid drops in service by managing
through the factory network.
Country/Area & River basin
Brazil
Paraiba Do Sul
Number of facilities exposed to water risk
1
% company-wide facilities this represents
Less than 1%
% company’s total global revenue that could be affected
1-10
Comment
This site is located in a water stressed area. The production is dependent on continued
access to water. As part of the business' continuous improvement programme the site is
taking action to minimise water use, and already operates at best-in-class efficiency
levels of 0.15m3 per tonne of production. Within the reporting year our operations were
not directly affected by water security issues but it remains an area of potential risk to
the business.
Production tonnage has been used as a proxy for turnover, a loss in volume due to
water stress will result in a drop in turnover. For short term issues Unilever has business
continuity plans in place at a regional level to avoid drops in service by managing
through the factory network.
Country/Area & River basin
Indonesia
Other, please specify
Citarum
Number of facilities exposed to water risk
1
% company-wide facilities this represents
1-25
% company’s total global revenue that could be affected
1-10
Comment
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Through our company-wide risk assessment and engagement with the site and other
stakeholders, the Citarum river basin has been identified as an area exposed to water
stress. The production is dependent on continued access to water at good quality.
Within the reporting year our operations were not directly affected by water security
issues, but it remains an area of potential risk to the business. As part of the business'
continuous improvement programme the site is taking action to minimise water use and
in 2020 started their water stewardship journey to address shared water risks. Key
shared water risks in the catchment are due to poor water quality and deteriorating
water supply infrastructure in the Jatiluhur reservoir and west Tarum canal, reduced
flows in the Citarum river due to changes in land use pattern.
In January 2021, Unilever accompanied by Yayasan Konservasi Alam Nusantara ,
Yayasan Aliansi Wali Sumber Daya Air Indonesia, PT Coca-Cola Indonesia, Global
Water Partnership Southeast Asia, PT L'Oréal Indonesia, PT Multi Bintang Indonesia,
PT Nestlé Indonesia, PT. Tirta Investama (Danone Indonesia), and PT Unilever
Indonesia joined the Indonesia Water Coalition, a multi stakeholder partnership of
leading public, private and other actors with the common objective to actively support
the civil society and government in achieving water security and sustainability of the
water resources.
Production tonnage has been used as a proxy for turnover, a loss in volume due to
water stress will result in a drop in turnover. For short term issues Unilever has business
continuity plans in place at a regional level to avoid drops in service by managing
through the factory network.
Country/Area & River basin
Turkey
Other, please specify
Konya Closed Basin
Number of facilities exposed to water risk
1
% company-wide facilities this represents
1-25
% company’s total global revenue that could be affected
1-10
Comment
This site is located in a water stressed area and dominated by the baseline water stress
with 2030 projections worsening as a result of increased demand, reducing supply and
underlying seasons variability. Significant growth in agriculture and industrial activity in
the area is impacting on declining groundwater levels. As part of the business'
continuous improvement programme the site is taking action to minimise water use and
in 2020 started their water stewardship journey to address shared water risks.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Key shared water risks identified are associated with 1) water availability and continued
access to water supply and indirect impacts on raw material sourcing of dairy and sugar
from suppliers located in the same basin. Groundwater wells are over-extracted (90% of
groundwater is used for agricultural irrigation purposes). Unilever sites may experience
water cuts or slower production due to groundwater unavailability. And 2) Climate
related impacts, as increasing temperatures and changing hydro-metrological conditions
represent increased risks associated with droughts and water shortages.
Within the reporting year our operations were not directly affected by water security
issues but it remains an area of potential risk to the business. Production tonnage has
been used as a proxy for turnover, a loss in volume due to water stress will result in a
drop in turnover.
Country/Area & River basin
China
Yongding He
Number of facilities exposed to water risk
1
% company-wide facilities this represents
1-25
% company’s total global revenue that could be affected
1-10
Comment
This site is located in a water stressed area and dominated by the baseline water stress
and seasonal variability. This is projected to remain constant into the longer term future.
As part of the business' continuous improvement programme the site is taking action to
minimise water use, and already operates at best-in-class efficiency levels of 0.87m3
per tonne of production. Within the reporting year our operations were not directly
affected by water security issues but it remains an area of potential risk to the business.
W4.2
(W4.2) Provide details of identified risks in your direct operations with the potential to
have a substantive financial or strategic impact on your business, and your response
to those risks.
Country/Area & River basin
Brazil
Parana
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Type of risk & Primary risk driver
Chronic physical
Water stress
Primary potential impact
Increased operating costs
Company-specific description
Situation: Water stress in the São Paulo State and the Cantareira reservoir system.
Potential impacts to our factories include access to water and energy. Factories are
reliant on energy from the grid, where hydropower makes up 70-75% of national grid
electricity.
In July 2021, Brazil experienced the worst water crisis in the last 91 years. Reservoirs in
the South East & Mid West subsystem were at ~28% of their capacity, much lower than
previous years and an increase in energy demand (electricity consumption in Brazil,
which grew 7.6% in the first half compared to 2020).
Task: Unilever have operations in the Parana Basin which will be affected by future
drought conditions. Our operations in the Parana Basin account for over 1% of global
production (significant as production is used as a proxy for revenue to represent
substantive impact). We will be required to reduce load, self-generate or face
brown/black-outs. During the 2015 drought, our factories tankered water from other river
basins to substitute the restricted water. We incurred increased water costs. The unit
costs for tanker water were ~ 600x higher than the abstraction costs of groundwater.
Primary impacts identified were increased operating costs. Secondary impacts were
consumer use as citizens of major cities were restricted access to water for basic
services like laundry and washing.
Action: Potential financial impact of €1.5m is based on our 2015 drought experience
utilising tanker water. This takes into account the scale and production/operational
requirements. The potential annual financial impact figure is based on the assumption
this reoccurs, with 3 of the sites in the Parana basin having to source 100% of their
annual water supply from another catchment.
Result: Two factories in this region are circular water factories, recycling treated wash
water back into production. The sites to focus on water efficiency by addressing water
losses. In 2021, we invested €9.2m into the sites located in the Parana Basin which
include advanced tertiary treatment for water recycling, saving an expected 80,000m3
per year. Water projects alone had an average payback of less than 2 years.
Unilever's water stewardship programme addresses water risks around sites to protect
and preserve water resources. Key shared risks identified were: depleting groundwater
levels, declining water quality from groundwater and municipal sources and increasing
regulatory requirements to manage discharges.
Timeframe
Current up to one year
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