CDP Water Security Questionnaire 2022 - page 13
Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Magnitude of potential impact
High
Likelihood
Likely
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
1,500,000
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact
Action: The potential financial impact of €1.5m assumes 4 of the sites in the Parana
basin having to source 100% of their water supply for a 3-month period from another
catchment, costs associated with delivered tanker water.is based on Unilever
experience in 2021.
Primary response to risk
Other, please specify
Multiple activities, as described in our response
Description of response
The business is adopting a multi-pronged approach to address the water related risks in
the region.
● Include in Business Continuity Plan: Contingency plans were put in place for both
water & energy as energy is derived largely from hydropower.
● Water-related capital expenditure: The sites have accelerated their Sustainability
roadmaps & increased investment in new technology, e.g. investing into fully circular
water systems capable of recycling water for production.
● Improve alignment of our public policy influencing activity with our water stewardship
commitments: In 2020 Unilever began the Water Stewardship programme, using the
Alliance for Water Stewardship standard to identify shared water risks and design a
roadmap for action. Key shared risks identified were associated with depleting
groundwater levels, declining water quality from both groundwater and municipal
sources and associated increasing stringent regulatory requirements to manage
discharges. In 2020 Unilever also became a member of the 2030 Water Resources
Group, engaging in key strategic markets to address water insecurity. Brazil is one of
our priority markets.
Cost of response
9,200,000
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Explanation of cost of response
Result: Infrastructure investment, two of the factories in this region are already a circular
water factories, recycling treated wash water back into production. The sites continue to
focus on water efficiency by addressing water losses. Infrastructure investment: In our
Brazilian factories we support water efficiency projects through the central capital
programme. 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.
In 2020 and 2021 Unilever began the Water Stewardship programme, using the Alliance
for Water Stewardship standard to identify shared water risks and design a roadmap for
action.
Country/Area & River basin
India
Penner River
Type of risk & Primary risk driver
Chronic physical
Water stress
Primary potential impact
Increased operating costs
Company-specific description
Situation: The sites in the Pennar River basin have high baseline water stress with
extremely high seasonal variability and account for over 1% of global production (used
as a proxy for revenue). Water demand is expected to increase due to increased
population growth & industrialization. Water quality is expected to decline due to
uncontrolled growth & poor regulation.
Task: Depleting quality & availability could impact Unilever’s ability to operate in this
area. Pre-treatment of incoming water will become intensive resulting in higher
operating costs for energy, maintenance & testing. Regulatory changes addressing
increasing water stress could raise opportunities & risks for our business. Greater
regulation on quality & abstraction may result in better operating environments but also
increased operating costs to invest in initiatives such as Zero Liquid Discharge & ground
water replenish schemes. In 2019, a Unilever facility in the state of Himachal Pradesh,
could no longer treat wastewater onsite & sends 100% to an industrial site treatment
plant. It previously treated & recycled 100% of water onsite, reaching Zero Liquid
Discharge. The new requirement is resulting in increased abstraction and Chemical
Oxygen Demand (COD) leaving the site. Whereas other states, which are classified as
having over-exploited groundwater, are establishing recharge requirements at the
magnitude of 200% of abstraction volumes.
Action: We support water efficiency projects through the central capital programme. Our
India factories run process optimisation projects such as CIP optimisation through CIP
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Matrix reviews. The site had previously achieved zero liquid discharge status through
reuse of washwater, condensate recovery & reuse and recycling of treated water into
the utilities.
Result: The annual investment in water conservation and efficiency is expected to be
approximately €50K. Investment into projects in the local area through the Prabhat
programme will be coupled with continuous water efficiency programme within the
factory. 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. 2020-2021 actions resulted in 7.23 billion litres in water
savings, 4,456 days of employment (direct & indirect) and an increase in agricultural
yield of 362.85 tonnes.
Timeframe
1-3 years
Magnitude of potential impact
Medium
Likelihood
Likely
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
2,200,000
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact
The potential financial impact of €2.2m is based on our knowledge of the on-cost, where
other locations within India have had to install additional tertiary treatment to reuse back
into production and install rainwater capture and groundwater recharge infrastructure. In
reality, the costs will be based on the wastewater flow rate and existing infrastructure.
This figure does not include the additional water abstraction costs or any business
continuity costs associated with intermittent access.
Primary response to risk
Increase investment in new technology
Description of response
Action: In our factories located across India, we support water efficiency projects
through the central capital programme, the factory teams also run process optimisation
projects such as CIP optimisation. In 2018, the site has achieved zero liquid discharge
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
status through opportunities such as: reuse of washwater, condensate recovery & reuse
and recycling of treated water into the utilities. Through our Prabhat factory scheme, the
site team have worked with local NGOs to restore village ponds to support water
conservation and support farmers with rice intensification and micro irrigation schemes
to support water use efficiency in the agricultural practices.
Cost of response
100,000
Explanation of cost of response
Result: The annual investment in water conservation and efficiency is expected to be
approximately €50K. Investment into projects in the local area through the Prabhat
programme will be coupled with continuous water efficiency programme within the
factory.
Country/Area & River basin
South Africa
Orange
Type of risk & Primary risk driver
Chronic physical
Water stress
Primary potential impact
Constraint to growth
Company-specific description
Situation: The Orange River Basin is medium high water stress and expected to
increase over the coming 20 years. Medium-high seasonal variability, demand is
expected to increase whilst water availability decreases.
Task: We have 3 manufacturing facilities located in the Upper Vaal management area of
the basin. Industrial, agricultural and domestic growth and mining mean there is a gap
between supply and demand that could pose issues related to access. Today, the Upper
Vaal relies on water transfers from other management areas to meet demand. In the
future this could result in water shortages or restricted access impacting the sites
operating in the region.
In 2021 the site started the water stewardship programme. Key risks include: 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.
Unilever has 2 Homecare manufacturing facilities and an ice cream facility in this river
basin which in total account for around 2.3% of our global total production (used as a
proxy for revenue and to determine substantive risk).In the event that production was
significantly disrupted, Unilever has the potential to use the wider regional network to
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meet market demands but this would likely result in increased logistics costs.
Action: In 2021, we invested €67Kon water-efficiency measures in factories in the basin
to minimize environmental impacts.
Result: In 2020, we invested €67K on water-efficiency measures in factories the Orange
basin to minimize environmental impacts. This figure is based on the capital requests
from factories & was a one-off cost to optimise resources and manage the risk going
forward. In addition, during 2021and into 2022 one of the sites will transition from natural
gas to a biomass solution to power the laundry tower, as part of our decarbonisation
agenda. The biomass feedstock will originate from water thirsty invasive species. The
site continue to explore opportunities to drive water efficiency through process
improvements, water recycling asnd sourcing. In 2020-21 Unilever began the Water
Stewardship programme, using the Alliance for Water Stewardship standard to identify
shared water risks and design a roadmap for action. The outcomes of which are
informing engagement locally.
Timeframe
4-6 years
Magnitude of potential impact
Medium
Likelihood
Likely
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
150,000
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact
The potential financial impact is an estimate based on the fixed production costs
incurred during 2019 when restricted access to water resulted in a loss of production
time.
Primary response to risk
Increase investment in new technology
Description of response
Action: In 2021 investment into eco-efficiency in the region was €2.9m to support the
implementation of the sustainability agenda in the Orange basin. €67K was invested on
water-efficiency projects to tackle steam measurement and condensate recovery.
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Cost of response
67,000
Explanation of cost of response
Result: In 2020 investment into eco-efficiency in the region was unrepresentatively low
due to restrictions associated with Covid. As such we invested €67K to support the
implementation of the sustainability agenda in the Orange basin. In 2020-1 Unilever
began the Water Stewardship programme, using the Alliance for Water Stewardship
standard to identify shared water risks and design a roadmap for action as part of our
Compass goal to protect and preserve water resources.
Country/Area & River basin
India
Other, please specify
Gulf of Kutch
Type of risk & Primary risk driver
Chronic physical
Water stress
Primary potential impact
Reduction or disruption in production capacity
Company-specific description
Situation: Baseline water stress in the region is high and is expected to increase into the
future. The ground water levels in the region are already in decline and saline intrusion
in the coastal areas is further contaminating water supplies making it unfit for
consumption or irrigation.
Task: Unilever makes Skin Cleansing products at this location, which account for
approximately 1.2% of global production (used as a proxy for revenue to indicate
substantive risk), which are supplied with municipal water, with increasingly
supplemented tankered water. Competition for water resources between users could
lead to community dissatisfaction and /or the reallocation of water by municipalities,
resulting in restricted supply for our sites, reducing production capacity. In the event
that production was significantly disrupted, Unilever has the potential to use the wider
regional network to meet market demands but this would likely result in increased
logistics costs.
Action: The operations in the Kutch basin are already one of the most water efficient
within the Unilever Skin Cleansing network, however through water & energy audit
programmes we continue to seek new ways to continue to drive operational savings.
The Unilever Prabhat Water Stewardship programme is working with NGOs BAIF to
address water insecurity in the surrounding communities by taking action on dam
checks, farm ponds, farm bunding and establishment of community water users
association and local cadre. 2020-2021 actions resulted in 3.8 billion litres in water
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
savings, 56,460 days of employment (direct & indirect) and an increase in agricultural
yield of 714 tonnes. Whilst the water conservation values are highly dependent on the
rainfall, in 2020-21 annual conservation effort was 28 times the abstraction of the
manufacturing site.
In addition, to address issues beyond the factory boundary, to create infrastructure for
water conservation, Water use efficiency in agriculture, Water governance by the local
community and creating a local cadre to ensure sustainability of the initiatives.
Result: The cost of response figure includes the investment into community engagement
initiatives such as construction and rehabilitation of check dams, farm ponds and farm
bunding in the local area with support from partners BAIF. 2020-2021 actions resulted
in 3.8 billion litres in water savings, 56,460 days of employment (direct & indirect) and
an increase in agricultural yield of 714 tonnes.
Timeframe
1-3 years
Magnitude of potential impact
Medium
Likelihood
Unknown
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
93,000
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact
The potential financial impact figure includes the cost to tanker in 100% of water supply
on an annual basis. Unit price of water was based on the upper end of 2021 production
water tanker costs in South Asia region.
Primary response to risk
Engage with local communities
Description of response
Action: The operations in the Kutch basin are already one of the most water efficient
within the Unilever Skin Cleansing network, however through water & energy audit
programmes (last assessment occurred in June 2019), continue to seek new ways to
drive operational savings. In addition, to address issues beyond the factory boundary,
the factory team have been engaging with the local community and working with the
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
NGOs BAIF and Sahjeevan to create infrastructure for water conservation, Water use
efficiency in agriculture, Water governance by the local community and creating a local
cadre to ensure sustainability of the initiatives.
Cost of response
50,000
Explanation of cost of response
Result: The cost of response figure includes the annual investment into community
engagement initiatives such as construction and rehabilitation of check dams, farm
ponds and farm bunding in the local area with support from partners with BAIF .
Country/Area & River basin
Brazil
Paraiba Do Sul
Type of risk & Primary risk driver
Chronic physical
Water stress
Primary potential impact
Increased operating costs
Company-specific description
Situation: The Paraiba river basin covers a significant area of north eastern Brazil. Risks
to the Parnaiba basin include declining water quality, reduction in availability caused by
silting of rivers & reservoirs and desertification resulting in changes to run off. Climate
change is expected to exacerbate issues further.
Task: Unilever have operations in this basin which account for approximately 1.0% of
global production (used as a proxy for revenue to indicate substantive impact) (as
indicated in W4.1c). Water stress could affect our manufacturing operations through
volatility of supply, increased costs & restrictions on access, increased treatment
requirements to manage declining quality, interrupted energy supply (hydro based) and
potential reputational pressures caused by the poor access to water and sanitation by
communities. The site sources water for production from groundwater supplies, and
tankers a small volume for drinking water.
Action: The sites continue to drive their Sustainability roadmaps & invest into new
technologies. In 2021 the site invest €275K to drive eco-efficiency measures through the
centrally managed Low Carbon Fund (previously known as the Clean Technology
Fund). Of this €28k was invested into water reuse and recycling project, anticipated
annualised savings of 4,000 m3 and with simple payback under 5 years. (Note that
Unilever investment criteria supports extended payback periods for water related
projects in water stressed locations). However in 2021, there was no sustainability
capital applied for by the site Previous years' projects have included condensate
returns, metering expansion, boiler optimization.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Result: The site has not experienced any water related impacts during the reporting
period.
Timeframe
1-3 years
Magnitude of potential impact
Medium
Likelihood
Likely
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
64,000
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact
In the event that water supplies were restricted, and the full capacity was met through
tankered water from another catchment, this would result in an annual additional
potential financial impact to the factory of €64K. This is based on the size of the
operation and the production/operational requirements using the average tankered
process water costs from 2021 in the region. This however, is not a feasible response
and is used for illustrative purposes only.
In the event that water stressed sites that abstracted from groundwater globally had to
meet 25% of their water needs via tanker, at similar unit costs, spend would exceed
7.5m Euro.
Primary response to risk
Increase investment in new technology
Description of response
Result: In our factories located across Brazil, we support water efficiency projects
through the central capital programme In 2021 the site invest €275K to drive eco-
efficiency measures through the centrally managed Low Carbon Fund (previously
known as the Clean Technology Fund). Of this €28k was invested into water reuse and
recycling project, anticipated annualised savings of 4,000 m3 and with simple payback
under 5 years. (Note that Unilever investment criteria supports extended payback
periods for water related projects in water stressed locations).
Cost of response
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
28,000
Explanation of cost of response
Infrastructure investment: In 2021 the site invest €275K to drive eco-efficiency measures
through the centrally managed Low Carbon Fund (previously known as the Clean
Technology Fund). Of this €28k was invested into water reuse and recycling project,
anticipated annualised savings of 4,000 m3 and with simple payback under 5 years.
(Note that Unilever investment criteria supports extended payback periods for water
related projects in water stressed locations). The site continue to explore opportunities
to drive water efficiency through process improvements and water recycling.
Country/Area & River basin
Indonesia
Other, please specify
Citarum
Type of risk & Primary risk driver
Chronic physical
Declining water quality
Primary potential impact
Increased operating costs
Company-specific description
Situation: The Citarum river basin has high baseline water stress which is expected to
worsen in the future. This is caused by increase in water demand and declining water
quality due to industrial activities and saline intrusion. Large seasonal variability poses
challenges around both water availability and flooding. Unilever have manufacturing
operations in the Citarum basin, which account for over 1% of global production (used
as a proxy for revenue). The main source of water comes from the municipal supplier/s
and water quality remains a concern.
Task: Increased heavy metals from the industrial zones represents possible
contamination issues where municipal treatment cannot remove pollutants resulting in
reduced quality for our operations and additional expenditure on treatment. Localised
flooding also represents concerns to the continued operations of the factories and
further contamination of water supplies.
Action:
In 2021 Unilever invested €3.2m to drive eco-efficiency measures through the centrally
managed Low Carbon Fund (previously known as the Clean Technology Fund). Of this
300k was allocated to water focusing on initiatives including cleaning optimisation, utility
efficiency, rainwater collection and recycling initiatives. These projects are expected to
reduce water abstraction by 81,900 m3/yr and deliver a combined average payback of
3.2 years.
In January 2021, Unilever accompanied by Yayasan Konservasi Alam Nusantara ,
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
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 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.
Response: The water efficiency investment are part of our ongoing water efficiency
roadmap and a key response to mitigating water related risks In 2020-1 these sites
began their water stewardship journey to drive collective action to address shared water
risks around this site as part of our ongoing activities to protect and preserve water
resources.
Timeframe
1-3 years
Magnitude of potential impact
Medium
Likelihood
Likely
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
375,000
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact
The potential financial impact estimate of €375K is based on our knowledge of the on-
cost of additional water treatment for poor quality water derived from other locations in
the Unilever network. This has been adapted to take into account the size and output of
this specific site.
Primary response to risk
Increase investment in new technology
Description of response
Action: In 2021 Unilever invested €3.2m to drive eco-efficiency measures through the
centrally managed Low Carbon Fund (previously known as the Clean Technology
Fund). Of this 300k Euro were allocated to water focussed initiatives which included
cleaning optimisation, utility efficiency, rainwater collection and recycling initiatives.
These projects form part of a long term site based glidepath.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Response: The water efficiency investment are part of our ongoing water efficiency
roadmap and represent one response to mitigating water related risks. The site
continue to explore opportunities to drive water efficiency through process
improvements and water recycling. In 2020 and continuing into 2021 Unilever started a
water stewardship programme to address shared water risks around this site as part of
our ongoing activities to protect and preserve water resources. In January 2021 Unilever
joined the Indonesian Water Coalition. The multi-party partnership for water stewardship
and sustainable water resource management through collective action at the Watershed
level. (More information available here: https://www.unilever.co.id/news/press-
releases/2021/koalisi-air-indonesia-ketahanan-air-untuk-masa-depan-indonesia.html) In
2022 supported by Australian Water Partnership, Unilever further developed their water
stewardship action plan. (More information available here: Stepping Up on Water
Stewardship Action (awsindonesia.org).
Cost of response
300,000
Explanation of cost of response
Infrastructure investment: In 2021 Unilever invested €3.2m to drive eco-efficiency
measures through the centrally managed Low Carbon Fund (previously known as the
Clean Technology Fund). Of this 300k Euro were allocated to water focussed initiatives
which included cleaning optimisation, utility efficiency, rainwater collection and recycling
initiatives. Many of these projects deliver on water savings, as well as carbon and
waste.. This is part of a long term programme to reduce environmental impact in our
sites.
Country/Area & River basin
Turkey
Other, please specify
Konya Closed Basin
Type of risk & Primary risk driver
Chronic physical
Water stress
Primary potential impact
Reduction or disruption in production capacity
Company-specific description
Situation: 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. Our operations at this site contribute to over
1% of global production (used as a proxy for revenue). Significant growth in agriculture
and industrial activity in the area is impacting on declining groundwater levels. Water is
provided by industrial park operator, originating from groundwater source. Agricultural
irrigation is the predominant user in the area. Within the reporting year our operations
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were not directly affected by water security issues but it remains an area of potential risk
to the business.
Task: The production is dependent on continued access to water. Interruptions or
restrictions in water supply would impact on our ability to supply the market and would
incur financial impact to the business as sites would need to procure water from
elsewhere or meet market demands from elsewhere in the Unilever network resulting in
increased logistical costs.
Action: In 2020 Konya sites started their water stewardship programmes. Key shared
risks 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. To address gaps within the factory boundary identified through the water
stewardship programme and in support of the the business' continuous improvement
programme, the site has invested €35K into water efficiency technology and metering
infrastructure (simple payback <1.5years) through the Low Carbon Fund (previously
known as the Clean Technology Fund),with estimated saving of 35,000m3/yr.
Result: The site continue to progress with their water stewardship plan in an effort to
increase resilience to poor water management and climate change.
Timeframe
4-6 years
Magnitude of potential impact
Medium
Likelihood
Likely
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
1,400,000
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
This is an estimate of additional costs associated with tankering water in to meet
manufacturing demand over a quarter of the year, based on tankering costs experience
in 2021 within the cluster.
Primary response to risk
Increase investment in new technology
Description of response
In 2021, the site invested €550K in environmental efficiencies through the Low Carbon
Fund (previously known as the Clean Technology Fund), €200K was on continuous
improvement efforts within the factory boundary identified as part of the water
stewardship programme. To better understand the water related risks, routes of
engagement and opportunities for direct action, Unilever have started their water
stewardship journey.
Cost of response
200,000
Explanation of cost of response
The costs of response is the 2021 investment associated with water efficiencies through
the Low Carbon Fund (previously known as the Clean Technology Fund).
Country/Area & River basin
China
Yongding He
Type of risk & Primary risk driver
Chronic physical
Declining water quality
Primary potential impact
Increased production costs
Company-specific description
This site is located in a water stressed area, and dominated by the baseline water stress
and seasonal variability and accounts for over 1% of global production (used as a proxy
for revenue to determine substantive risk) . This is projected to remain constant into the
longer term future. Declining water quality is associated with poorly treated wastewater
and reducing flows affecting ability to dilute and assimilate pollutants. Water for
production is provided by local water authority / municipality. Previous years had
experienced water price increases, but average water prices per m3 remain constant
over the last 2 years.
In 2022 it is expected that South-to-North Water Diversion Project will commence, to
transfer water to the country's dry north and improve its national water network. This is
9-year project is expected to cost 58-billion-yuan and increase annual capacity to
roughly 11.5 billion cubic meters, benefiting the Tianjin region amongst others.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
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.
Timeframe
More than 6 years
Magnitude of potential impact
Low
Likelihood
Very likely
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
75,000
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact
This cost estimate, is associated with potential water pricing increases targeted at
industrial users to recover infrastructure costs.
Primary response to risk
Increase investment in new technology
Description of response
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. This is one way to mitigate impacts of potential rising water
costs. In 2021, the site invested €162K in environmental efficiencies through the Low
Carbon Fund (previously known as the Clean Technology Fund) to deliver energy,
carbon, waste and water efficiencies as part of their overall site sustainability roadmap.
€45K was spent on leading water projects, which included CIP sprayball upgrades and
cooling water reuse system for the homogeniser saving 2,500 m3 of water with a
payback of 2.7years.
Cost of response
45,000
Explanation of cost of response
In 2021, the site invested €162K in environmental efficiencies through the Low Carbon
Fund (previously known as the Clean Technology Fund) to deliver energy, carbon,
waste and water efficiencies as part of their overall site sustainability roadmap. €45K
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
was spent on leading water projects, which included CIP spray-ball upgrades and
cooling water reuse system for the homogeniser saving 2,500 m3 of water with a
payback of 2.7years.
W4.2a
(W4.2a) Provide details of risks identified within your value chain (beyond 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
India
Tapti River
Stage of value chain
Use phase
Type of risk & Primary risk driver
Reputation & markets
Inadequate access to water, sanitation, and hygiene services
Primary potential impact
Constraint to growth
Company-specific description
Situation: Rapid urbanisation means many low-income people in India live without easy
access to clean water, a flushing toilet & other basic services. More than half of
Mumbai’s 12.5 million inhabitants don’t have their own toilet. The urban poor may pay
up to 50x more for a litre of water than their richer neighbours, as they often have to buy
water from private vendors. The Tapti basin extends over states of Madhya Pradesh,
Maharashtra & Gujarat, & includes rural & urban areas of water scarcity.
Task: Unilever studies observing & interviewing consumers in their homes showed that
when water is scarce, or supplies are unreliable, people limit how frequently they wash
or do the laundry. This reduces the demand for our products such as those in our
Beauty & Personal Care portfolio (shampoo) or Home Care (laundry detergent),
impacting sales. India is a key growth market for our business as part of our Compass
Strategy and water insecurity can restrict growth, as well as represent an opportunity to
address tackle water scarcity, improve people’s lives, build our brands & contribute
towards SDG Goal 6.
Action: We are investing in new projects & business models that increase access to
water, including the creation of community hygiene & water centres. By doing so, we are
providing entire communities with infrastructure that enables them to use our products
locally, delivering social benefits whilst increasing growth.
Timeframe
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Current up to one year
Magnitude of potential impact
Medium-high
Likelihood
Very likely
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
225,000,000
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact
Based on detailed business case studies estimating the potential financial opportunities
of innovative new products using future water-smart technologies to address demand in
areas of water scarcity. This work predominantly focused on portfolio shifts towards low-
water or waterless formats in our Home Care and Beauty & Personal Care categories,
using 2015 information on incremental turnover, net product value and projected growth.
Unilever estimated that designing products that can work well with less water or low-
quality water could represent an equivalent of net present value opportunity of €225m
over the next 5 years. The original work was based on a 10-year period so we have
annualised this to reflect the figures as at YE 2021.
Primary response to risk
Downstream
Increase/review infrastructure investment
Description of response
Action: Unilever are investing in new projects and business models that can increase
access to water, including the creation of community hygiene and water centres. By
doing so, we are providing entire communities with the infrastructure that enables them
to use our products locally, delivering social benefits whilst increasing growth.
Result: In partnership with HSBC India and the Brihanmumbai Municipal Corporation, in
2022 Unilever opened its 7th Suvidha Centres in Mumbai since 2016. The centre is
located at Dharavi, which is known as one of the most densely populated areas in the
world, with over 2,00,000 people inhabiting per square km. With 111 toilets, the new
Dharavi Suvidha Centre will be one of India’s biggest community toilet blocks, catering
to over 50,000 users every year.
Additionally, to ensure maximum impact, HUL will undertake behaviour change
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programmes on water, sanitation, nutrition, health & hygiene in the communities around
the centre. Keeping sustainability at its core, the centre will be powered by solar panels
and treat and reuse greywater from handwashing stations, and laundromat to be used
for flushing in the toilets. The centre is designed to save over 6.5 million litres of
freshwater every year by reusing treated wastewater and rainwater harvesting. These
Suvidha Centres will provide access to safe sanitation to nearly 400,000 people every
year and will cumulatively save 800 million litres of water over the next decade.
Cost of response
160,000
Explanation of cost of response
The cost of response is for the maintenance and further rollout of Suvidha centres in
India. This includes the role of 1 full time employee to manage the facility ~ €160k in
India p.a.
Country/Area & River basin
United States of America
Other, please specify
Multiple- California, Iowa, Arkansas
Stage of value chain
Supply chain
Type of risk & Primary risk driver
Acute physical
Drought
Primary potential impact
Increased operating costs
Company-specific description
Water scarcity could lead to increased droughts while limited resources to irrigate soils
could reduce crop outputs. Water shortages could also impact a number of our 250 our
manufacturing sites and our ability to supply water-based products, such as those in our
Home care, Beauty & Personal care and Foods and Refreshment categories. Our
consumers could also face water shortages in their everyday activities in certain
regions, creating a need for water-smart or waterless products or services.
Our 2021 scenario analysis considered five broad types of risks and opportunities using
the TCFD risk framework. Using a 1.5 degree scenario, we looked at :the financial
impact on Unilever in 2030, 2039 and 2050, using our key sourcing areas that are most
exposed to droughts. We quantified how increased water-stressed areas and prolonged
droughts would reduce crop outputs due to water scarcity in agricultural regions,
decreasing crop viability, and impacting raw material prices.
Timeframe
More than 6 years
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Magnitude of potential impact
Medium
Likelihood
Likely
Are you able to provide a potential financial impact figure?
Yes, an estimated range
Potential financial impact figure (currency)
Potential financial impact figure - minimum (currency)
200,000,000
Potential financial impact figure - maximum (currency)
1,700,000,000
Explanation of financial impact
We quantified how increased water-stressed areas and prolonged droughts would
reduce crop outputs due to water scarcity in agricultural regions, decreasing crop
viability, and impacting raw material prices. The potential financial impact figure reflects
impact on profit in the year 2050 if no actions to mitigate risks are taken
Key assumptions were:
By 2050, in a proactive scenario, water scarcity would increase prices by:
▪ Palm: ~10%
▪ Commodities and food ingredients: ~11%
By 2050, in a reactive scenario, water scarcity would increase prices by:
▪ Palm: ~14%
▪ Commodities and food ingredients: ~16%
The assessment considered 67% of Unilever’s raw materials suppliers based in regions
most exposed to drought events).
Primary response to risk
Supplier engagement
Promote greater due diligence among suppliers
Description of response
The Unilever Sustainable Agriculture Code (SAC) and the Unilever Regenerative
Agriculture Principles (RAPs) launched in 2021, provide the basis for our sustainable
sourcing, an integrated programme which includes requirements for water management.
These policies apply to all suppliers and include mandatory and best practices
associated with water management. We use our RAPs to set up best practice pilots with
suppliers to support improvements in soil health, biodiversity, water quality and climate
resilience.
Our brands are working to protect and preserve natural habitats in the places their
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ingredients are produced. Knorr continues its work with farmers and growers through a
new series of 50 projects. Part of our Climate & Nature Fund, it aims 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.
Cost of response
1,000,000,000
Explanation of cost of response
As part of our Compass strategy, we committed to invest 1 billion in a new Climate &
Nature Fund for our brands to use over the next 10 years. The Fund will be used on
projects such as landscape restoration, reforestation, carbon sequestration, wildlife
protection and water preservation. As we are still in the implementation phase of a lot of
our projects, we have provided 0 in the cost of response field.
W4.3
(W4.3) Have you identified any water-related opportunities with the potential to have a
substantive financial or strategic impact on your business?
Yes, we have identified opportunities, and some/all are being realized
W4.3a
(W4.3a) Provide details of opportunities currently being realized that could have a
substantive financial or strategic impact on your business.
Type of opportunity
Products and services
Primary water-related opportunity
Sales of new products/services
Company-specific description & strategy to realize opportunity
Situation: 2.8 billion people around the world are experiencing poor access to water.
And this number is estimated to increase significantly, with the Water Resources Group
estimating that 40% of the total water demand in 2030 will not be met.
Task: Our biggest water use - over 85% of our end to end water footprint - occurs when
consumers use our products. Helping consumers to do more with less with water-smart
products represents a commercial opportunity. We are investing in water-smart
products, which are particularly suited to the needs of people living in water-stressed
areas but can also help encourage a wider shift to more sustainable consumption of
water. For example, our Robijn Dry Wash Spray that freshens up clothes in 15 minutes.
Each bottle saves 60 litres of water and prevents 400g of CO2 being emitted or ‘the
good stuff’, a brand which offers a leave-in conditioner made to nourish hair without
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weighing it down. Another example is our SmartFoam technology, which is a patented
anti-foam molecule reducing the number of rinses by breaking down soap suds more
quickly. This saves significant amounts of water. It was first launched in South Africa in
2016 in our Sunlight 2-in-1 Handwashing Laundry Powder and in India in our Rin soap
bars. In India, our market research shows that people who use a liquid detergent rather
than a bar use 1/3 less water when washing dishes. We continue to drive market
conversion towards liquids across key water-scarce countries.
Within Unilever Compass, we established new commitments around biodegradable
ingredients and formulations to protect the aquatic environment in emerging and
developed markets alike. Water quality is increasingly a concern for our consumers, and
we anticipate biodegradable formulations to be a market differentiator. Today, more
than 90% of our ingredients in our Home Care and Beauty & Personal Care portfolio are
biodegradable. One example is our partnership with speciality chemicals company
Clariant to develop more nature-based ingredients in laundry liquids such as Omo.
Clariant have helped us develop ‘soil release’ polymers, which are more biodegradable
and renewable than previous ingredients while still giving great cleaning.
Action: Our strategy is to develop innovative products which help people adapt to water
insecurity, expanding usage occasions whilst eliminating any negative impacts on
aquatic environments from wash-off.
Estimated timeframe for realization
4 to 6 years
Magnitude of potential financial impact
Medium-high
Are you able to provide a potential financial impact figure?
Yes, an estimated range
Potential financial impact figure (currency)
Potential financial impact figure - minimum (currency)
2,000,000,000
Potential financial impact figure - maximum (currency)
3,000,000,000
Explanation of financial impact
Action: Our strategy is to develop innovative products which help people adapt to water
scarcity, expanding usage occasions. Result: Based on detailed business case studies
estimating the potential financial impact of new products using future water-smart
technologies and portfolio shifts towards low-water or waterless formats in our Home
Care and Beauty & Personal Care Divisions, Unilever estimates this could yield around
€2-3 billion incremental sales in 2025 based market analysis study conducted in 2015.
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W5. Facility-level water accounting
W5.1
(W5.1) For each facility referenced in W4.1c, provide coordinates, water accounting
data, and a comparison with the previous reporting year.
Facility reference number
Facility 1
Facility name (optional)
Country/Area & River basin
Brazil
Parana
Latitude
-23.08
Longitude
-47.22
Located in area with water stress
Yes
Total water withdrawals at this facility (megaliters/year)
176.8
Comparison of total withdrawals with previous reporting year
Lower
Withdrawals from fresh surface water, including rainwater, water from
wetlands, rivers and lakes
166.6
Withdrawals from brackish surface water/seawater
0
Withdrawals from groundwater - renewable
10.2
Withdrawals from groundwater - non-renewable
0
Withdrawals from produced/entrained water
0
Withdrawals from third party sources
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0
Total water discharges at this facility (megaliters/year)
0
Comparison of total discharges with previous reporting year
Much lower
Discharges to fresh surface water
0
Discharges to brackish surface water/seawater
0
Discharges to groundwater
0
Discharges to third party destinations
0
Total water consumption at this facility (megaliters/year)
176.8
Comparison of total consumption with previous reporting year
Much lower
Please explain
Situation: Small volume reductions, together with increased efficiencies have reduced
water abstraction by 15% and intensity by 12% vs previous year. In 2020 the site had
invested in cooling tower optimization and steam condensate recovery programme
saving an estimated 36,000m3 of water, the benefits of which are apparent in the
performance. The site continue to recycle 100% of washwater back into production and
as part of the continuous improvement programme remain vigilant to opportunities to
drive further savings. Task: The site has been focusing on the optimization of their
water recycling system, already a zero liquid discharge factory.
Action: In 2021 this site focussed on efforts on their decarbonisation agenda, a
significant project to transition the spray drying towers away from natural gas.
Facility reference number
Facility 2
Facility name (optional)
Country/Area & River basin
Brazil
Parana
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Latitude
-23.25
Longitude
46.97
Located in area with water stress
Yes
Total water withdrawals at this facility (megaliters/year)
465.9
Comparison of total withdrawals with previous reporting year
Much higher
Withdrawals from fresh surface water, including rainwater, water from
wetlands, rivers and lakes
7.1
Withdrawals from brackish surface water/seawater
0
Withdrawals from groundwater - renewable
358
Withdrawals from groundwater - non-renewable
0
Withdrawals from produced/entrained water
0
Withdrawals from third party sources
100.8
Total water discharges at this facility (megaliters/year)
0
Comparison of total discharges with previous reporting year
About the same
Discharges to fresh surface water
0
Discharges to brackish surface water/seawater
0
Discharges to groundwater
0
Discharges to third party destinations
0
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Total water consumption at this facility (megaliters/year)
465.9
Comparison of total consumption with previous reporting year
Much higher
Please explain
Situation: Increased growth (4%) and production volume split between category types
e.g. Personal care and homecare liquids production have led to an increase in total
water abstraction at the site. Driven by water scarcity and increasing regulation on
wastewater discharge the site have been progressing on their Circular Water
programme, recycling and reusing back into production. In 2021 the site further invested
in advance wastewater treatment to address accumulating salts in the system
supporting advanced recovery.
Task: In 2020 and 2021 Unilever began the Water Stewardship programme, using the
Alliance for Water Stewardship standard to identify shared water risks and design a
roadmap for action in the basin.
Result: During the year, Unilever invested a further €734K into advanced tertiary
treatment for water recycling, saving an expected 80,000m3 per year. Water projects
alone had an average payback of less than 2years.
Facility reference number
Facility 3
Facility name (optional)
Country/Area & River basin
India
Penner River
Latitude
11.92
Longitude
79.83
Located in area with water stress
Yes
Total water withdrawals at this facility (megaliters/year)
194.1
Comparison of total withdrawals with previous reporting year
About the same
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Withdrawals from fresh surface water, including rainwater, water from
wetlands, rivers and lakes
0
Withdrawals from brackish surface water/seawater
0
Withdrawals from groundwater - renewable
193.7
Withdrawals from groundwater - non-renewable
0
Withdrawals from produced/entrained water
0
Withdrawals from third party sources
0.45
Total water discharges at this facility (megaliters/year)
0
Comparison of total discharges with previous reporting year
About the same
Discharges to fresh surface water
0
Discharges to brackish surface water/seawater
0
Discharges to groundwater
0
Discharges to third party destinations
0
Total water consumption at this facility (megaliters/year)
194.14
Comparison of total consumption with previous reporting year
About the same
Please explain
Situation: Production at the site has increased by 2%, with a proportionate increase in
water abstraction. and 0.5% improvement on water intensity. This is a zero liquid
discharge factory, with all wastewater treated and reused on site. Discharge data is
managed on site & used for compliance, managing costs & targeting efficiencies. The
total discharge is an assumption based on a the water balance model.
Task: The site continue to drive water savings through the world class manufacturing
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programme.
Action: 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.
Results: 2020-2021 actions resulted in 7.23 billion litres in water savings, 4,456 days of
employment (direct & indirect) and an increase in agricultural yield of 362.85 tonnes.
Facility reference number
Facility 4
Facility name (optional)
Country/Area & River basin
South Africa
Orange
Latitude
-26.25
Longitude
28.37
Located in area with water stress
Yes
Total water withdrawals at this facility (megaliters/year)
53.7
Comparison of total withdrawals with previous reporting year
About the same
Withdrawals from fresh surface water, including rainwater, water from
wetlands, rivers and lakes
0
Withdrawals from brackish surface water/seawater
0
Withdrawals from groundwater - renewable
0
Withdrawals from groundwater - non-renewable
0
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Withdrawals from produced/entrained water
0
Withdrawals from third party sources
53.7
Total water discharges at this facility (megaliters/year)
0
Comparison of total discharges with previous reporting year
About the same
Discharges to fresh surface water
0
Discharges to brackish surface water/seawater
0
Discharges to groundwater
0
Discharges to third party destinations
0
Total water consumption at this facility (megaliters/year)
53.7
Comparison of total consumption with previous reporting year
About the same
Please explain
Result: Overall the water abstraction at the site remains consistent with previous years.
Task/Action: The site continues to drive water efficiency as part of its continuous
improvement programme. The site is a zero liquid site with water recycled into the
utilities and processing. Situation: 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. Catchment level activities are at Design Stage. As part of this
programme, a number of internal efficiencies were also identified with requests for
capex submitted in 2022 including several water reuse and recycling initiatives.
Facility reference number
Facility 5
Facility name (optional)
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Country/Area & River basin
India
Other, please specify
Gulf of Kutch
Latitude
23.25
Longitude
69.67
Located in area with water stress
Yes
Total water withdrawals at this facility (megaliters/year)
134.9
Comparison of total withdrawals with previous reporting year
Much higher
Withdrawals from fresh surface water, including rainwater, water from
wetlands, rivers and lakes
0
Withdrawals from brackish surface water/seawater
0
Withdrawals from groundwater - renewable
0
Withdrawals from groundwater - non-renewable
0
Withdrawals from produced/entrained water
0
Withdrawals from third party sources
134.9
Total water discharges at this facility (megaliters/year)
0
Comparison of total discharges with previous reporting year
About the same
Discharges to fresh surface water
0
Discharges to brackish surface water/seawater
0
Discharges to groundwater
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0
Discharges to third party destinations
0
Total water consumption at this facility (megaliters/year)
134.9
Comparison of total consumption with previous reporting year
Much higher
Please explain
Situation: Production volume has increased by 9% whilst total water abstraction has
increased relatively by 14% increasing intensive by 4% (measured as m3 per tonne of
production). This has been largely driven by an internal agility agenda across key SKUs.
This is a zero liquid discharge factory, with all wastewater treated and reused on site.
Wastewater data is managed on site & used for compliance, managing costs & targeting
efficiencies. Task: As part of the continuous improvement programme the factory
continued to drive action on water efficiency and have benefited from a series of water
efficiency projects implemented in 2020 delivering over 3000m3 of water savings.
Result: Key water projects identified were associated with further improving the water
recycling opportunities with impact expected to be realized by 2021. In addition, the
Unilever Prabhat Water Stewardship programme working with the NGOs BAIF to
address water insecurity in the surrounding communities by taking action on check
dams, farm ponds, farm bunding as well as establishment of community water users
association and local cadre. 2020-2021 actions resulted in 3.8 billion litres in water
savings, 56,460 days of employment (direct & indirect) and an increase in agricultural
yield of 714 tonnes. Whilst the water conservation values are highly dependent on the
rainfall, in 2020-21 annual conservation effort was 28 times the abstraction of the
manufacturing site.
Facility reference number
Facility 6
Facility name (optional)
Country/Area & River basin
Brazil
Paraiba Do Sul
Latitude
-23.18
Longitude
-51.83
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Located in area with water stress
Yes
Total water withdrawals at this facility (megaliters/year)
29.6
Comparison of total withdrawals with previous reporting year
About the same
Withdrawals from fresh surface water, including rainwater, water from
wetlands, rivers and lakes
0
Withdrawals from brackish surface water/seawater
0
Withdrawals from groundwater - renewable
29.3
Withdrawals from groundwater - non-renewable
0
Withdrawals from produced/entrained water
0
Withdrawals from third party sources
0.3
Total water discharges at this facility (megaliters/year)
0
Comparison of total discharges with previous reporting year
About the same
Discharges to fresh surface water
0
Discharges to brackish surface water/seawater
0
Discharges to groundwater
0
Discharges to third party destinations
0
Total water consumption at this facility (megaliters/year)
29.6
Comparison of total consumption with previous reporting year
About the same
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Please explain
Situation: The site is a laundry site, using spray dry towers to manufacture homecare
laundry powders. The site is a zero liquid discharge site with water recycled into the
utilities and processing. Wastewater (from sanitation) is treated onsite using primary and
secondary treatment before being discharged via infiltration trenches, and excluded
from this data. Task: The site continue to drive aggressive water reduction programme
in the factory. Result: During 2021, Unilever invested a €28k a HVAC related water
reclamation and recovery system expected to save 4,000m3 per year
Facility reference number
Facility 7
Facility name (optional)
Country/Area & River basin
Indonesia
Other, please specify
Citarum
Latitude
-6.25
Longitude
107.15
Located in area with water stress
Yes
Total water withdrawals at this facility (megaliters/year)
1,298
Comparison of total withdrawals with previous reporting year
About the same
Withdrawals from fresh surface water, including rainwater, water from
wetlands, rivers and lakes
98.2
Withdrawals from brackish surface water/seawater
0
Withdrawals from groundwater - renewable
0
Withdrawals from groundwater - non-renewable
0
Withdrawals from produced/entrained water
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0
Withdrawals from third party sources
1,200
Total water discharges at this facility (megaliters/year)
613.6
Comparison of total discharges with previous reporting year
About the same
Discharges to fresh surface water
0
Discharges to brackish surface water/seawater
0
Discharges to groundwater
0
Discharges to third party destinations
613.6
Total water consumption at this facility (megaliters/year)
684.4
Comparison of total consumption with previous reporting year
About the same
Please explain
Situation: Absolute water abstraction is similar to the previous year a 3% increase.
Water intensity increased by 8%. This was due to production changes: reduction in
beverage production which has a low water intensity, and an increase in volumes of ice
cream which has a relatively larger water intensity. Total discharge is based on
assumptions from a site water model where improvements in data collection on
wastewater are incorporated in global monthly reporting systems. Wastewater is treated
onsite using primary, secondary and tertiary treatment before being discharged to the
industrial park treatment facility for further treatment.
Task: 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 the Indonesia Water Coalition. The common objective is to
support civil society and government in achieving water security and sustainability of the
water resources.
Action: Key improvements to the site factory hub in 2021: closed loop cooling tower
improvements, rainwater harvesting, condensate recovery and CIP optimisation. Result:
In 2021 the site factory hub invested nearly €317k to deliver 5 water-efficiency initiatives
which are expected to reduce annual water abstraction by over 80,000m3.
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Facility reference number
Facility 8
Facility name (optional)
Country/Area & River basin
Turkey
Other, please specify
Konya Closed Basin
Latitude
37.89
Longitude
32.48
Located in area with water stress
Yes
Total water withdrawals at this facility (megaliters/year)
594.3
Comparison of total withdrawals with previous reporting year
About the same
Withdrawals from fresh surface water, including rainwater, water from
wetlands, rivers and lakes
0
Withdrawals from brackish surface water/seawater
0
Withdrawals from groundwater - renewable
0
Withdrawals from groundwater - non-renewable
0
Withdrawals from produced/entrained water
0
Withdrawals from third party sources
594.3
Total water discharges at this facility (megaliters/year)
197.4
Comparison of total discharges with previous reporting year
About the same
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Discharges to fresh surface water
0
Discharges to brackish surface water/seawater
0
Discharges to groundwater
0
Discharges to third party destinations
197.4
Total water consumption at this facility (megaliters/year)
396.9
Comparison of total consumption with previous reporting year
Higher
Please explain
Situation: Production at site has increased by 6% and total water abstraction has
increased by 4% vs the previous year. This is a homecare and personal care site,
producing laundry liquids, detergents and shampoos, conditioners and body &
handwash. During 2021 the changes were dominated by a change in production
volumes across the categories, growth in Homecare liquids with a slightly higher water
intensity and reduction from the sulphonation plant which produces raw unfinished
goods and has a lower water intensity. Task: In 2020-21 Unilever started the Water
Stewardship programme in this site and neighbouring site to address shared water risks.
The site identified several improvement projects and received €200k funding through the
centrally managed Low Carbon Fund to support expected water savings of 35,000m3.
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.
Action: Catchment level activities are at Design Stage.
Facility reference number
Facility 9
Facility name (optional)
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Country/Area & River basin
China
Yongding He
Latitude
39.13
Longitude
117.2
Located in area with water stress
Yes
Total water withdrawals at this facility (megaliters/year)
183.2
Comparison of total withdrawals with previous reporting year
Higher
Withdrawals from fresh surface water, including rainwater, water from
wetlands, rivers and lakes
0
Withdrawals from brackish surface water/seawater
0
Withdrawals from groundwater - renewable
0
Withdrawals from groundwater - non-renewable
0
Withdrawals from produced/entrained water
0
Withdrawals from third party sources
183.2
Total water discharges at this facility (megaliters/year)
49.7
Comparison of total discharges with previous reporting year
Higher
Discharges to fresh surface water
0
Discharges to brackish surface water/seawater
0
Discharges to groundwater
0
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Discharges to third party destinations
49.7
Total water consumption at this facility (megaliters/year)
133.5
Comparison of total consumption with previous reporting year
Much lower
Please explain
Situation: Production at the site has increased by 19% vs previous year, total water
abstraction increased by 8% and water intensity reduced by 9%. During 2020 Chinese
manufacturing was significantly affected by Covid. This is a dual site making laundry
and savoury products. Task/ Action: The site continue to drive water savings through the
world class manufacturing programme. During 2021the site secured funding through the
centrally managed Low Carbon Fund (previously known as the Clean Technology Fund)
for improvements to sludge management, cooling water recirculation and CIP spray ball
upgrades steam and chiller systems, expected to deliver over 6,000 m3.
W5.1a
(W5.1a) For the facilities referenced in W5.1, what proportion of water accounting data
has been third party verified?
Water withdrawals - total volumes
% verified
76-100
Verification standard used
PricewaterhouseCoopers (PwC) has been providing independent limited assurance on
selected Unilever Sustainable Living Plan performance indicators for 10 years and water
for nine years. Prior to this Deloitte carried out independent assurance on our
environmental manufacturing performance indicators, including water. PwC’s assurance
engagement is in accordance with ISAE 3000 & they apply the Institute of Chartered
Accountants in England & Wales (ICAEW) Code of Ethics. PwC assurance statement is
attached. 2020 Assurance statement available here:
2020_tcm244-559815_en.pdf
Water withdrawals - volume by source
% verified
Not verified
Please explain
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Water abstraction by source are not specified under the independent limited assurance,
however the sum of water abstraction by source is used to calculate the Total Water
which is third party verified.
Water withdrawals - quality by standard water quality parameters
% verified
Not verified
Please explain
Water abstraction quality parameters are not third party verified as part of central water
accounting data. Water quality metrics are managed locally by site teams as part of the
site Quality protocols.
Water discharges - total volumes
% verified
Not verified
Please explain
Currently water discharges by total volumes are not third party verified as part of central
water accounting data. Water discharge volumes and qualities are managed locally by
site teams as part of meeting local regulations.
Water discharges - volume by destination
% verified
Not verified
Please explain
Currently water discharges by destination are not third party verified as part of central
water accounting data. Water discharge destinations use data from COD
measurements, as part of central waste accounting, the sum of which is third party
verified.
Water discharges - volume by final treatment level
% verified
Not verified
Please explain
Currently water discharges by final treatment level are not third party verified as part of
central water accounting data. Water treatment levels are tracked internally as part of a
central asset inventory.
Water discharges - quality by standard water quality parameters
% verified
76-100
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Verification standard used
Our discharge water quality parameters are reported & monitored using our global EPR
system, where we track discharge of COD centrally as a measure of water quality. PwC
has been providing independent limited assurance on selected Compass performance
measures in accordance with ISAE 3000 for 11 years and Chemical Oxygen Demand
for 10 years. PwC assurance statement is available here:
independent-limited-assurance-report-2021.pdf
Water consumption - total volume
% verified
Not verified
Please explain
Water consumption data is not third party verified as part of central water accounting
data. It is not anticipated that this will be verified in the future.
W6. Governance
W6.1
(W6.1) Does your organization have a water policy?
Yes, we have a documented water policy that is publicly available
W6.1a
(W6.1a) Select the options that best describe the scope and content of your water
policy.
Scope
Content
Please explain
Row
Company-
Description of business
Our water policy is embedded in our Unilever
1
wide
dependency on water
Compass Strategy. We take a holistic approach to
Description of business
water as it’s essential for our business - from growing
impact on water
crops to manufacturing, to how people use our
products. Our water goals extend right across our
Description of water-
value chain, including in the sustainable sourcing of
related performance
our agricultural commodities, manufacturing and
standards for direct
product innovation.
operations
Description of water-
We use our annual water footprint assessment to
related standards for
understand our business impacts and dependencies
procurement
on water and help guide our commitments and
Reference to international
strategy. We also consider how these impacts and
standards and widely-
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recognized water
dependencies might change due to the impacts of
initiatives
climate change.
Company water targets
and goals
Our strategy is supported by:
Commitment to align with
1) our Group Environmental Policy which embeds
public policy initiatives,
performance standards for factories.
such as the SDGs
Commitments beyond
2) The Unilever Sustainable Agriculture Code (SAC)
regulatory compliance
and the Unilever Regenerative Agriculture Principles
Commitment to water-
(RAPs) launched in 2021, and provide the basis for
related innovation
our sustainable sourcing, including requirements for
Commitment to
water management. These policies apply to all
stakeholder awareness
suppliers and include mandatory and best practices
and education
associated with water management. We use our RAPs
Commitment to water
to set up best practice pilots with suppliers to support
stewardship and/or
improvements in soil health, biodiversity, water quality
collective action
and climate resilience.
Commitment to safely
managed Water,
3) Our Unilever Environmental Care Framework,
Sanitation and Hygiene
which is based on the requirements of ISO 140001. All
(WASH) in the workplace
environmental aspects, including water are included in
Acknowledgement of the
this management framework.
human right to water and
sanitation
4) Product innovation strategies, innovating for people
and planet; for our consumers, for superior
Recognition of
performance, for value for money and for
environmental linkages,
sustainability. For instance the Unilever Compass
for example, due to
strategy includes commitments to transition all
climate change
formulations to be 100% biodegradable by 2030,
minimizing pollutants on the aquatic environment.
We communicate progress on water-related
innovation and performance on company-wide targets
related to our value chain in our Annual Report and
Accounts (ARA). In Unilever’s 2021 ARA, climate was
included as one of our key business risks (including
water related risks that may disrupt our production
and/or reduce consumer demand for our products).
We recognize the human right to water, and through
our brands, operations and supply chain, we’re
committed to respecting people’s rights to water, and
to acting as water stewards. We have also signed the
Glasgow Declaration for Fair Water Footprints to
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transform how the global economy interacts with the
water environment.
W6.2
(W6.2) Is there board level oversight of water-related issues within your organization?
Yes
W6.2a
(W6.2a) Identify the position(s) (do not include any names) of the individual(s) on the
board with responsibility for water-related issues.
Position of
Please explain
individual
Chief
The Unilever Board delegates the running of Unilever Group to the CEO, with the
Executive
exception of some strategic matters (i.e. approval of dividends). Whilst the Board
Officer (CEO)
takes accountability, the CEO is ultimately responsible for the oversight of our
environmental agenda, including management of water related risks and
opportunities, including our commitments to tackle water security.
The CEO can delegate responsibilities to the Unilever Leadership Executive (ULE).
The ULE is comprised of the CEO, CFO and other senior executives. All ULE
members report to the CEO but are not part of the Board’s decision-making process,
which is reserved for the CEO and CFO as the only two executive Board members.
In 2020, our CEO approved Unilever’s new set of sustainability commitments under
the Unilever Compass, which succeed the Unilever Sustainable Living Plan (USLP).
These included commitments on implementing water stewardship programmes in
100 locations in water-stressed areas by 2030 and ensuring 100% of our ingredients
are biodegradable by 2030. These commitments were further supported by the
CEO’s approval of Unilever’s dedicated €1bn Climate & Nature Fund, a commitment
that will see our brands taking meaningful action on projects including landscape
restoration, reforestation, carbon sequestration, wildlife protection and water
preservation.
W6.2b
(W6.2b) Provide further details on the board’s oversight of water-related issues.
Frequency that
Governance
Please explain
water-related
mechanisms into
issues are a
which water-related
scheduled
issues are
agenda item
integrated
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Row
Scheduled -
Monitoring
Unilever’s Board has ultimate responsibility for
1
some meetings
implementation and
reviewing, monitoring and guiding the strategy for
performance
the Unilever Group, as well as its conduct. The
Overseeing
Board has overall accountability for the management
acquisitions and
and guidance of risks and opportunities, including
divestiture
those associated with climate change, water security
and water stewardship.
Overseeing major
capital expenditures
The Unilever Leadership Executive (ULE) and the
Providing employee
Board delegated Corporate Responsibility
incentives
Committee (CRC) support the Board’s management
Reviewing and
of water-related issues. In 2021, the Board held 6
guiding business
planned meetings and 3 additional meetings.
plans
Reviewing and
The Board’s delegated CRC oversees Unilever’s
guiding major plans
conduct as a responsible global business. Core to
of action
this remit is its governance of progress on Unilever’s
Reviewing and
sustainability agenda, as set out in the company’s
guiding risk
integrated business strategy, the Unilever Compass,
management policies
and reviewing sustainability-related risks,
Reviewing and
developments and opportunities.
guiding strategy
Reviewing and
Within the Unilever Compass, there are water-
guiding corporate
related targets including those for manufacturing,
responsibility strategy
agriculture and consumer use, which the CRC
oversees. The CRC report their findings to the Board
Reviewing
regularly so that they can fulfil their oversight
innovation/R&D
responsibilities.
priorities
Setting performance
The CRC’s responsibilities are complemented by
objectives
those of the Audit Committee. During 2021 the Audit
Committee continued to review the sustainability
assurance provided by PwC (including
Environmental & Occupational Safety which includes
metrics such as water use in manufacturing) and
plan for the assurance on non-financial Compass
metrics going forward.
For the fifth year, we applied the recommendations
of the TCFD, including in our Annual Report and
Accounts (ARA), which in 2021 included disclosures
on water related risks to our business. Unilever has
adopted TCFD recommendations since their
establishment. In Unilever’s 2021 ARA, climate was
included as one of our key business risks (including
water related risks that may disrupt our production
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and/or reduce consumer demand for our products).
As part of the Board sign-off process, the Board and
the Audit Committee are required to approve the
ARA, which includes our TCFD statement. These
risks are reviewed by the Board on an annual basis.
W6.2d
(W6.2d) Does your organization have at least one board member with competence on
water-related issues?
Board member(s)
Criteria used to assess competence of board member(s) on water-
have competence
related issues
on water-related
issues
Row
Yes
Our Board-delegated Corporate Responsibility Committee meet every
1
quarter to oversee Unilever’s conduct as a responsible global business.
Core to this remit is its governance of progress on our Protect and
regenerate nature commitments which are a key part of Unilever’s
strategy, the Compass. Within our Protect and regenerate nature
commitments is our regenerative agriculture commitment focused on
water and soil health, our water stewardship commitment and our
biodegradability commitment.
It’s comprised of three non-executive Board directors, each with broad
sustainability experience, based on their external appointments (i.e.
Global Center of Adaptation) and previous industry/cross-industry
experience.
W6.3
(W6.3) Provide the highest management-level position(s) or committee(s) with
responsibility for water-related issues (do not include the names of individuals).
Name of the position(s) and/or committee(s)
Chief Executive Officer (CEO)
Responsibility
Assessing water-related risks and opportunities
Managing water-related risks and opportunities
Frequency of reporting to the board on water-related issues
Quarterly
Please explain
Our CEO is one of two Executive Directors on our Board and is a member of the
Unilever Leadership Executive (ULE). The Board delegate responsibility for the day-to-
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day leadership of the business including strategy, monitoring of performance and policy,
to the CEO. A key responsibility is assessing and reporting progress on sustainability
targets, including those on water. Unilever Compass is on the ULE agenda and
therefore, water-related topics reported to the board include our commitment to
implement water stewardship programmes in 100 locations in water-stressed areas by
2030 and 100% of ingredients biodegradable by 2030. The ULE meet quarterly to
discuss sustainability progress, including risks and opportunities relating to water. The
CEO is responsible for reporting back to the Board. He is also responsible for external
engagements and was part of the Global Leadership Council (GLC), a group of leaders
advocating for universal water, sanitation and hygiene.
Name of the position(s) and/or committee(s)
Other C-Suite Officer, please specify
Chief Supply Chain Officer
Responsibility
Assessing water-related risks and opportunities
Managing water-related risks and opportunities
Frequency of reporting to the board on water-related issues
Quarterly
Please explain
The Chief Supply Chain Officer (CSCO) is a member of the Unilever Leadership
Executive (ULE) and leads on key water-related matters so the CEO and Board can fulfil
their oversight responsibilities e.g. driving reduction in absolute water abstraction and
water intensity metrics for manufacturing, and the sustainable sourcing of agricultural
ingredients. The ULE is the highest operational leadership group. The CSCO directly
reports to the CEO. We have a dedicated internal water steering group, led by the
operational lead for our water targets and reporting into the CSCO. This group takes a
full value chain approach to its water oversight, including supply chain, R&D and
advocacy.
W6.4
(W6.4) Do you provide incentives to C-suite employees or board members for the
management of water-related issues?
Provide incentives for management of water-related issues
Comment
Row 1
Yes
Outlined in 6.4a.
W6.4a
(W6.4a) What incentives are provided to C-suite employees or board members for the
management of water-related issues (do not include the names of individuals)?
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Role(s)
Performance
Please explain
entitled to
indicator
incentive
Monetary
Chief Executive
Reduction of water
One element of our Remuneration Policy is the
reward
Officer (CEO)
withdrawals
long-term Performance Share Plan (PSP), linked
Chief Financial
Reduction in
to financial and sustainability performance,
Officer (CFO)
consumption
guided by our Sustainability Progress Index
volumes
(SPI), it accounts for 25% of the total PSP award
Other C-suite
for the CEO, other C-Suite officers and senior
Officer
Improvements in
executive leadership. The PSP replaced the
All Unilever
efficiency - product-
Management Co-Investment Plan (MCIP) in
Leadership
use
Executive
2021.
(ULE)
Performance is determined through the SPI, an
assessment made jointly by the Board-delegated
Corporate Responsibility and Compensation
Committees (CC). The Committees determine a
rating from 0% to 200% each year based on 7
key performance indicators.
SPI in 2021 was based on a selection of key
performance indicators (KPIs) from our USLP
which ran until 2020, reflected in the PSP up to
and including the 2021 award. In 2021, the SPI
included external recognition and performance
such as achieving Leader or A ratings in CDP
Water.
MCIP performance is assessed annually and
then tallied as an average index for each 4 year
MCIP performance period, enabling the CC to
determine the level of matched shares. The level
of monetary reward is dependent on the average
score between 0 to 200% over the 4 years.
The performance indicators have all been chosen
as indicators to measure performance as they
feed into our Compass commitments which our
UEL is accountable for. We have updated the
SPI incentive performance measure to reflect the
Compass from the 2022 PSP award onwards.
Non-
Other, please
Improvements in
Unilever Compass Awards are an internal
monetary
specify
efficiency - direct
recognition program aimed at recognizing
reward
Employees
operations
teams/individuals who are pioneering new ways
of doing business. Every team (functional or
project team) team) can apply and winners will
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Improvements in
be selected by the Board Panel.
efficiency - supply
chain
Projects must align with one of the three pillars of
Improvements in
the Unilever Compass - Improve the health of
efficiency - product-
the planet; Improve people’s health, confidence
use
and wellbeing; Contribute to fairer, more socially
inclusive world. Unilever sees giving recognition
Implementation of
for great work as an important way of motivating
employee
employees to feel empowered, help them
awareness
collaborate and use an owner’s mindset for
campaign or training
planning. It also helps share best practice across
program
the business and drive efficiencies.
Increased access to
workplace WASH
Measures of success: Winners are chosen based
Other, please
on their alignment with the Unilever Compass
specify
goals - one of which relates to climate and
Behavioural
environmental targets and includes water targets.
change
This could include, for example, water-smart
innovations which reduce product water intensity
(e.g fast-rinsing laundry detergent or non-rinse
hair conditioner), working with suppliers and
farmers to reduce water in agriculture or
behaviour change programs to use less domestic
water or WASH programs on drinking water,
handwashing with soap or sanitation. Both are
aligned with the Improve the health of the planet
pillar of the Unilever Compass.
W6.5
(W6.5) Do you engage in activities that could either directly or indirectly influence
public policy on water through any of the following?
Yes, direct engagement with policy makers
Yes, trade associations
Yes, funding research organizations
Yes, other
W6.5a
(W6.5a) What processes do you have in place to ensure that all of your direct and
indirect activities seeking to influence policy are consistent with your water
policy/water commitments?
Our process: our materiality assessment confirms the issues important to us and our
stakeholders are consistent with our approach to engagement. We use stakeholder research
and consider alignment with our Vision & Purpose; potential value chain impacts; and the
degree we can affect change. We take a multi-stakeholder approach to avoid over focus on a
handful of topics and update our assessment annually to make sure it reflects business
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changes and the external environment. Our 2021 assessment confirmed water continue to be
material and is addressed in our Unilever Compass strategy. Policy and advocacy in support of
these ambitious climate and nature goals is an explicit part of the strategy and a responsibility
of the Global Sustainability Team in partnership with Corporate Affairs. As an example, we're
active members of the UN CEO Water Mandate, WEF Global Water Initiative.
Action taken if inconsistency discovered: as described above, our materiality assessment and
stakeholder research enable engagement aligned with our Vision & Purpose. Through the
process described above, if we recognise a gap in our engagement or the need to strengthen
our position, for example in certain geographies or business areas then we actively seek to
promote advocacy within this area. For example, as global water security is a key issue
addressed in our policy and commitments, we joined forces with the 2030 Water Resources
Group to provide emergency WASH support in response to Covid-19.
W6.6
(W6.6) Did your organization include information about its response to water-related
risks in its most recent mainstream financial report?
Yes (you may attach the report - this is optional)
annual-report-and-accounts-2021.pdf
W7. Business strategy
W7.1
(W7.1) Are water-related issues integrated into any aspects of your long-term
strategic business plan, and if so how?
Are water-
Long-
Please explain
related issues
term time
integrated?
horizon
(years)
Long-term
Yes, water-
16-20
Our purpose is to make sustainable living commonplace.
business
related issues
We deliver this is through our strategy, the Unilever
objectives
are integrated
Compass. It contains long-term goals to tackle the
intertwined issues of climate, water & nature to combat
water insecurity:
• Implement water stewardship programmes in 100
locations in water-stressed areas
• 100% of our ingredients will be biodegradable
• Help protect and regenerate 1.5 million hectares of
land, forests and oceans
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To assess long-term viability of our company and
objectives, our Directors annually carry out an
assessment of principal risks/issues, including those that
threaten the business model, future performance,
solvency or liquidity. Climate change is a Principal risk
which incorporates physical issues, e.g. water scarcity
and its impacts on crop sourcing, our manufacturing sites
and consumer water use, constraining long-term growth
(16-20 years). Portfolio management is another
considering long-term growth/profitability of divisions,
geographies where we operate/channels that we operate
through. Both issues are aligned with our scenario
analysis, further guiding our response through the UC to
protect water: investing in new products/formulations that
work with less, poorer quality or no water, and the
management of localised water scarcity through our
water stewardship programme.
As we assess risks we will continue to integrate
outcomes with long-term business planning.
Strategy for
Yes, water-
16-20
Learnings from our USLP (2010-2020), scenario and
achieving
related issues
annual risk analysis are incorporated into our strategy for
long-term
are integrated
achieving our long-term water-related goals in our new
objectives
integrated business strategy, the Unilever Compass
(UC).
Action plans include innovations in key portfolio
segments & more R&D & consumer research. Our water-
smart products include: SmartFoam Rin laundry
detergent bar which cuts rinsing by half; & our Love
Beauty & Planet hair care range uses fast-rinse
technology in its conditioners. Home Care’s Clean Future
strategy is creating a new generation of cleaning &
laundry products to achieve our 100% biodegradability
by 2030 target eg Seventh Generation 100%
biodegradable liquid laundry formulas & Sunlight (Quix)
dishwashing liquid now contains rhamnolipids, a
renewable & biodegradable surfactant.
Our Sustainable Agriculture Code & new Unilever
Regenerative Agriculture Principles provide guidance on
improving water quality and climate resilience.
We're building on what we’ve learnt from our Prabhat
programme in India, which works with communities to
tackle water quality & supply risks, adopting the Alliance
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for Water Stewardship Standard, & sharing best practice
with our peers’. To address water insecurity for our
consumers in key markets we joined the 2030 Water
Resources Group, working collectively through Multi-
Stakeholder Platforms.
Financial
Yes, water-
16-20
Our scenario analysis quantified how increased water-
planning
related issues
stressed areas/prolonged droughts could reduce crop
are integrated
outputs and increase raw material prices in 2030, 2039 +
2050. Previous analyses estimated how turnover could
be at risk in the shorter-term due to water scarcity
affecting frequency of use of products if we did not
reshape our product innovation strategy + portfolio.
Financial planning to mitigate these risks include
investing in new products/formulations that work with
less, poor quality or no water. We're also expanding our
water stewardship programme to 100 locations in water-
stressed areas. To ensure that the scale of action is
appropriate for the opportunity/risk, we set internal
business targets on water. These measure business
contribution (sales + profits) of ‘water-smart’ products -
for use in water-stressed situations. Targets range in
time horizon (5-10+ years) however, as they’re internal
targets relating to sales/profits, we do not share
externally.
Achieving our Compass goals is financially supported by
our €1 billion Climate & Nature fund.
To report on the long-term viability of our company and
objectives, our Directors annually review the overall
funding capacity and headroom to withstand severe
events and carry out a robust assessment of principal
risks (issues), including those that would threaten its
business model, future performance, solvency or
liquidity. This is aligned with the time horizons
underpinning e.g. principal risk reporting.
W7.2
(W7.2) What is the trend in your organization’s water-related capital expenditure
(CAPEX) and operating expenditure (OPEX) for the reporting year, and the anticipated
trend for the next reporting year?
Row 1
Water-related CAPEX (+/- % change)
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40
Anticipated forward trend for CAPEX (+/- % change)
5
Water-related OPEX (+/- % change)
31
Anticipated forward trend for OPEX (+/- % change)
7
Please explain
Increase in CAPEX: CAPEX spend is calculated using Low Carbon Fund data in 2021.
During 2021
€21.1m was spent on to water related savings projects with an estimated
combined payback of 2.2 years. The increase was driven by an emergence from
COVID-19, renewed focus on resource efficiency and improvement identified during the
water stewardship Compass programmes. CAPEX spend included projects such as
water recycling and reuse, steam recovery and improved metering.
Decrease in OPEX : OPEX spend is calculated using reported raw water costs by site.
Reductions have been driven by unit price reductions in South East Asia countering
increases seen in North Asia and Europe. Water is generally under valued, however we
anticipate in the future water costs will increase above inflation.
W7.3
(W7.3) Does your organization use scenario analysis to inform its business strategy?
Use of
Comment
scenario
analysis
Row
Yes
To understand the impact that climate change could have on Unilever’s 2030
1
business we have looked at the impact of 2°C and 4°C global warming by 2100
assuming we have the same business activities in 2030 as we do today. In the
2°C scenario, we assumed that in the period to 2030 society acts rapidly to limit
greenhouse gas emissions and puts in place measures to restrain deforestation
and discourage emissions (eg. implementing carbon pricing at $75-$100 per
tonne, taken from the IEA’s 450 scenario). We have assumed that there will be
no significant impact to our business from the physical ramifications of climate
change by 2030 - i.e. from greater scarcity of water or increased impact of
severe weather events. The scenario assesses the impact on our business from
regulatory changes. In the 4°C scenario, we assumed climate policy is less
ambitious and emissions remain high so the physical manifestations of climate
change are increasingly apparent by 2030.
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W7.3a
(W7.3a) Provide details of the scenario analysis, what water-related outcomes were
identified, and how they have influenced your organization’s business strategy.
Type of
Parameters, assumptions,
Description of possible
Influence on business
scenario
analytical choices
water-related outcomes
strategy
analysis
used
Row
Climate-
Parameters:
Potential company-
We are taking action to
1
related
specific water-related risks
address our water-
Assumptions: In assessing
assessed in the 1.5°C
related climate change
material risks/opportunities
scenario analysis
risks in line with the
in a world focused on
included:
output from the scenario
achieving 1.5°C we
analysis. All scenarios
reviewed in detail ‘proactive’
Water scarcity would lead
highlighted risks in our
and ‘reactive’ pathways
to increased droughts
supply chain. We're
(assessed as more likely
while limited resources to
mitigating physical
than other more extreme
irrigate soils could reduce
environment risks by
pathways). Proactive: ▪
crop outputs of some
investing in new
Aggressive and persistent
commodities used in
products and
regulation from today ▪
Unilever's Food &
formulations that work
Dramatic changes to lifestyle
Refreshment, Home &
with less water, poor
from today, towards
Beauty & Personal Care
quality water or no water.
minimising climate impact
products. Water
For example, many of
and social inequality ▪
shortages could also
our hair care products
Reliance on available and
impact a number of our
now have fast-rinse
proven technologies ▪ Lower
250 manufacturing sites
technology as standard,
reliance on carbon removal
and our ability to supply
using less water. We're
technologies Reactive: ▪
products. Our consumers
expanding our water
Gradual regulation by 2030,
could also face water
stewardship programme
very aggressive post-2030 ▪
shortages in their
to 100 locations in water-
Continuation of historical
everyday activities in
stressed areas by 2030.
societal trends until 2030,
certain regions, restricting
then rapid pivot ▪ Major
their showering and
In terms of timescales,
reliance on technologies that
laundry habits and
our larger goals such as
are not yet proven to scale ▪
creating a need for water-
our water stewardship
Higher reliance on carbon
smart or waterless
programmes in 100
removal technologies
products such as those in
water-stressed areas
our 'the good stuff' brand.
and 100% of ingredients
Analytical choices:
to be biodegradable are
Extreme weather events
over a 10-year period
Models used: IEA WEO
could significantly disrupt
(2020-2030).
2016 & 2020; RCP 1.9. For
our entire value chain.
the two transition pathways,
Sustained high
We monitor changing
we used S1 & S2 (based on
temperatures could lead to
weather patterns on a
Shared Socio Economic
reduced crop outputs due
short-term basis and
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Pathways - SSPs), from
to reduction in soil
integrate weather system
IPCC reports.
productivity which could
modelling into our
translate into higher raw
forecasting process. To
Data Sources: internal
material prices. In 2021,
mitigate negative effects
environmental, operational,
we witnessed spikes in
from extreme weather
and financial data and
soybean oil prices of
we have contingency
external science-based data
+90% and palm oil costs
plans to secure
and assumptions from
of +130% vs early 2020.
alternative key material
reputable and broadly used
Weather events such as
supplies at short notice
sources such as the IPCC or
hurricanes or floods,
or transfer or share
the International Energy
which would become
production between
Agency.
increasingly common and
manufacturing sites. We
intense, could cause plant
manage commodity price
Time Horizons: impact on
outages or disrupt our
risks through forward-
the business in 2030, 2039
distribution infrastructure.
buying of traded
and 2050 of limiting global
Additionally,
commodities and other
warming to 1.5°C.
macroeconomic negative
hedging mechanisms.
shocks among affected
Our Regenerative
communities could reduce
Agriculture Principles
or destroy consumer
and Sustainable
demand and purchasing
Agriculture Code
power.
encourage our
agricultural raw material
suppliers to adopt
practices which increase
their productivity and
resilience to extreme
weather.
W7.4
(W7.4) Does your company use an internal price on water?
Row 1
Does your company use an internal price on water?
No, but we are currently exploring water valuation practices
Please explain
The low purchase price of water and the perception of low purchase price continues to
represent a challenge to driving water efficiency whilst meeting internal investment
criteria. Much of the water we use on site is treated, heated, cooled &/or has chemicals
added to it, the cost of this can be up to 40x more expensive than the per m3 unit price.
In January 2022, we launched an internal calculator for supporting sites in articulating
the True Cost of Water, suitable for use in financial business cases and to drive
operational efficiency. We continue to support sites with access to funding through the
centrally managed Low Carbon Fund, and support with calculating the True Cost of
Water. On top of this Unilever’s Low Carbon Fund allows for extended payback periods
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
of up to 5 years for water stressed site investments. We continue to explore water
valuation processes that address future water risks & means of embedding into
business cases & operational decision making.
W7.5
(W7.5) Do you classify any of your current products and/or services as low water
impact?
Products
Definition used to classify
Please explain
and/or services
low water impact
classified as
low water
impact
Row
Yes
We define low water impact
We are creating many water-smart
1
products as those that have
products to make it easier for consumers to
lower detrimental impact on
use less water in their homes.
water resources, water quality
and ecosystems than the
Example of some low water impact
market average.
products: Our Rin detergent bar uses up to
half the water needed for rinsing, making
We evaluate this on a brand
the washing process easier for consumers
and product division level.
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 and our roll out of
antibacterial Sunlight washing-up liquid that
can be used without water and rinsing.
W8. Targets
W8.1
(W8.1) Describe your approach to setting and monitoring water-related targets and/or
goals.
Levels for
Monitoring at
Approach to setting and monitoring targets and/or
targets and/or
corporate
goals
goals
level
Row
Company-wide
Targets are
Our approach and motivation: Our 1.5C scenario analysis
1
targets and goals
monitored at
highlighted water scarcity as a risk to Unilever that would
Business level
the corporate
lead to increased droughts while limited resources to
specific targets
level
irrigate soils could reduce crop outputs. Whilst water could
and/or goals
impact our sourcing, shortages could also impact our
manufacturing sites and our ability to supply water-based
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Site/facility
Goals are
products, not to mention our consumers ability to use our
specific targets
monitored at
products. Over 85% of our water use occurs when
and/or goals
the corporate
consumers use our products. Poor accessibility of water
Brand/product
level
by consumer therefore impacts demand & sales. Our
specific targets
scenario analysis also helps reinforce our investment
and/or goals
strategy in new products and formulations that work with
less, poorer quality or no water to mitigate this. Unilever
has been carrying out this type of analysis since 2017.
Our global water strategy aims to both safeguard our
ability to operate & help contribute to SDG 6. Our target
and goal setting around water are guided by our business
strategy to win with our brands as a force for good,
powered by purpose and innovation, that improve the
health of the planet.
Operations: Today, around 40% of Unilever’s
manufacturing sites are located in areas classified as
water-stressed. Therefore, we are placing more focus on
these sites, setting more ambitious targets and supporting
the sites in taking action. Having made good progress with
the water reduction goals and targets in our own factories,
we expanded to water stewardship beyond our factory
walls in order to mitigate water risks. One of our Unilever
Compass goals is to implement water stewardship
programmes in 100 of our most water-stressed areas by
2030.
Supply chain: water is essential to our supply chain, for
example the growth of crops to develop our products.
Therefore, our Compass commitment is to empower
farmers and smallholders to protect and regenerate farm
environments, supported by our Regenerative Agriculture
Principles aimed at increasing water efficiency and
improving water quality.
Product innovation: These targets come on top of our
continued commitments to develop water smart products
through our Clean Futures strategy, and 100% of our
product formulations to be biodegradable by 2030.
Advocacy: Whilst we are managing water risk through our
operations, innovations and supply chain, we are also
collaborating with wider stakeholders and we set
ourselves an advocacy target to join the 2030 Water
Resources Group, hosted by the World Bank, to
contribute to transformative change and building resilience
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
in water management in key water-stressed markets.
Governance: We report against our targets annually via
our ARA. The Unilever Leadership Executive (ULE),
chaired by the CEO, meet on a quarterly basis to monitor
our sustainability progress against the new Unilever
Compass goals, including those targets related to water.
This represents a significant step towards integrating
water considerations into our core business operations.
W8.1a
(W8.1a) Provide details of your water targets that are monitored at the corporate level,
and the progress made.
Target reference number
Target 1
Category of target
Water, Sanitation and Hygiene (WASH) services in the workplace
Level
Other, please specify
Handwashing and behaviour change
Primary motivation
Other, please specify
Brand equity + sales of new products + commitment to the UN Sustainable
Development Goals (SDGs)
Description of target
Our Compass commitment to take action through our brands to improve health and
wellbeing and advance equity and inclusion, reaching 1 billion people per year by 2030
is supported by brand commitments. For example, Lifebuoy has committed to reach 500
million people every year until 2030 with communications to help improve hand hygiene
behaviour and help advance health access initiatives.
For more than a century, our Lifebuoy soap brand has been on a mission to change
handwashing behaviours. Through Lifebuoy’s Social Mission programmes and
communications, we’ve helped over a billion people develop better handwashing habits,
improving hygiene, protecting against illness and helping to prevent childhood deaths.
Its H for Handwashing education campaign has been teaching children about the
importance of handwashing since its launch. And the Hygiene & Behaviour Change
Coalition created by Lifebuoy, Domestos, the UK government and others has equipped
many more to practise better hygiene.
Quantitative metric
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Other, please specify
Number of people reached through brand communications
Baseline year
2020
Start year
2020
Target year
2030
% of target achieved
7
Please explain
In 2021, we reached 686 million people through our health and wellbeing commitment
and started our €30 million initiative to encourage more children to adopt handwashing
habits for life.
W8.1b
(W8.1b) Provide details of your water goal(s) that are monitored at the corporate level
and the progress made.
Goal
Other, please specify
Catchment level action
Level
Company-wide
Motivation
Reduced environmental impact
Description of goal
Why the goal is important: around 40% of our manufacturing sites are located in areas
classified as water-stressed. With water being central to our business development from
growing crops to manufacturing, we are placing more emphasis on these sites to
support them in taking action. Therefore, our goal is to implement water stewardship
programmes in 100 of our most water-stressed areas by 2030 and working with others
to address shared water challenges.
How the goal is being implemented company-wide: we’ve made good progress in
reducing water usage within our own factories and through our direct operations. Our
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
water stewardship goal expands beyond our direct operations to our supply chain and
beyond.
Baseline year
2020
Start year
2020
End year
2030
Progress
8% progress. Indicators that are used to assess progress: we are aligning with the
Alliance for Water Stewardship (AWS) standard to define a successful water
stewardship programme. We also monitor water indicators within these programmes
such as water demand and water consumption. In Konya, Turkey, for example, much of
the water used by our ice cream factory comes from groundwater via the Industrial Park
provider - a shared aquifer used by other industry and agriculture organisations.
Unregulated irrigation in the region is resulting in declining ground levels. Today, the
factory is implementing water recycling and reuse practices. And by applying the
Alliance for Water Stewardship standard, the site has been broadening water security
engagement with other stakeholders in the region
The threshold and how we have progressed: our goal is to implement water stewardship
programmes in 100 of our most water-stressed locations by 2030. We have established
programmes in 8 sites in India, and in 2021 were underway with programmes in 12 of
our manufacturing sites across in Indonesia, Brazil, South Africa and Turkey.
Goal
Reduce environmental impact of product in use phase
Level
Brand/product
Motivation
Reduced environmental impact
Description of goal
Why the goal is important: today, most of our ingredients in our Home Care, Beauty &
Wellbeing and Personal Care portfolios are biodegradable. We’re focusing on the
ingredients that aren’t yet biodegradable and looking for alternatives that break down
easily and quickly after use without compromising our products’ performance. We’re
aiming to make our product formulations biodegradable by 2030, to protect water
resources. We’re focusing on the products that are generally washed off after use in
people’s homes. These include laundry, household cleaning, skin cleansing, oral care
and hair care products.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
Company-wide implementation: the goal is part of our company-wide Compass strategy
that is governed by our board. Our Clean Future strategy is creating a new generation of
cleaning and laundry products that biodegrade in the environment and are derived from
renewable and recycled carbon sources. We’re innovating with new types of polymers
and other slowly degradable ingredients that leave no trace behind. I.e. Seventh
Generation has pioneered 100% biodegradable liquid laundry formulas across its range
which are better for aquatic systems as the product rapidly and safely degrades. Some
ingredients that we currently use have no viable biodegradable alternatives. Our
scientists are collaborating with suppliers, partners and academia to find solutions.
Baseline year
2020
Start year
2020
End year
2030
Progress
Indicators that are used to assess progress: The brand has extended its biodegradable
formulas for new body washes and deodorants. In many cases, we’ll replace our use of
non-biodegradable ingredients with biodegradable alternatives. Some ingredients that
we currently use have no viable biodegradable alternatives, an indicator to progress
against this goal would be when alternatives so become available achieved through
research, collaboration and innovation. Ultimately, our progress against this goal will be
assessed by our review against our target of 100% ingredients biodegradable by 2030.
The threshold and how we have progressed: Whilst we have made progress against this
target, we have put 0% against % of target achieved as we have not reported on the
progress made corporately in year one.
W9. Verification
W9.1
(W9.1) Do you verify any other water information reported in your CDP disclosure (not
already covered by W5.1a)?
Yes
W9.1a
(W9.1a) Which data points within your CDP disclosure have been verified, and which
standards were used?
Disclo
Data
Verific
Please explain
sure
verified
ation
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
modul
standa
e
rd
W8
Water
ISAE
In 2021, PricewaterhouseCoopers LLP (PwC) assured our water
Target
abstract
3000
abstraction metric. PwC’s assurance engagement is in accordance with
s
ed in m3
ISAE 3000 and they apply the Institute of Chartered Accountants in
per
England & Wales (ICAEW) Code of Ethics. The Unilever Board's Audit
tonne of
Committee oversees the Compass assurance programme. External
producti
independent assurance supports our internal controls. Risk
on in
management is integrated into every stage of our activities, processes
2020 (1
and systems to ensure we mitigate accuracy and reliability risks. Our
October
Corporate Audit function provides us with an objective and independent
2019 to
review of the effectiveness of risk management and internal control
30
systems throughout Unilever. The Reporting Criteria “Unilever’s Basis
Septemb
of Preparation 2021”
er 2020);
•
2bed4a0b2b2b5380a76c527e.pdf has been used to
Change
prepare and report the Selected Information and Selected Statements.
in the
volume
PwC Assurance statement available:
of water
in m3
fbc6af305351/pwc-independent-limited-assurance-report-2021.pdf
abstract
ed in
2020
•
Percenta
ge
change
in the
water
abstract
ed per
tonne of
producti
on
•
Emission
s of
chemical
oxygen
demand
(COD) in
kg per
tonne of
producti
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
on in
2021
W8
Metric:
ISAE
PricewaterhouseCoopers LLP (PwC) assure our sanitation metric every
Target
The
3000
other year. They independently assured our Health and Hygiene pillar
s
number
commitments in 2021. The Unilever Board's Audit Committee oversees
of
the Compass assurance programme. External independent assurance
people
supports our internal controls. Risk management is integrated into every
reached
stage of our activities, processes and systems to ensure we mitigate
on a
accuracy and reliability risks. Our Corporate Audit function provides us
cumulati
with an objective and independent review of the effectiveness of risk
ve basis
management and internal control systems throughout Unilever. The
by an
Reporting Criteria “Unilever’s Basis of Preparation 2021”
interventi
on
2bed4a0b2b2b5380a76c527e.pdf has been used to
through
prepare and report the Selected Information and Selected Statements.
our
program
PwC Assurance statement available
mes on
handwas
fbc6af305351/pwc-independent-limited-assurance-report-2021.pdf
hing,
selfestee
m,
sanitatio
n, oral
health,
skin
healing
and safe
drinking
water by
the end
of 2021.
W10. Sign off
W-FI
(W-FI) Use this field to provide any additional information or context that you feel is
relevant to your organization's response. Please note that this field is optional and is
not scored.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
W10.1
(W10.1) Provide details for the person that has signed off (approved) your CDP water
response.
Job title
Corresponding job category
Row 1
Chief Supply Chain Officer
Other C-Suite Officer
W10.2
(W10.2) Please indicate whether your organization agrees for CDP to transfer your
publicly disclosed data on your impact and risk response strategies to the CEO Water
Mandate’s Water Action Hub [applies only to W2.1a (response to impacts), W4.2 and
W4.2a (response to risks)].
Yes
SW. Supply chain module
SW0.1
(SW0.1) What is your organization’s annual revenue for the reporting period?
Annual revenue
Row 1
52,440,000,000
SW1.1
(SW1.1) Could any of your facilities reported in W5.1 have an impact on a requesting
CDP supply chain member?
This is confidential
SW1.2
(SW1.2) Are you able to provide geolocation data for your facilities?
Are you able to provide geolocation data for your facilities?
Comment
Row 1
No, this is confidential data
SW2.1
(SW2.1) Please propose any mutually beneficial water-related projects you could
collaborate on with specific CDP supply chain members.
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Unilever plc CDP Water Security Questionnaire 2022 29 July 2022
SW2.2
(SW2.2) Have any water projects been implemented due to CDP supply chain member
engagement?
No
SW3.1
(SW3.1) Provide any available water intensity values for your organization’s products
or services.
Submit your response
In which language are you submitting your response?
Please confirm how your response should be handled by CDP
I understand that my response will be shared
Response
with all requesting stakeholders
permission
Please select your
Public
submission options
Please confirm below
131