Doing Well by Doing Good

The journey towards sustainability - Unilever Sri Lanka

2009
Social impact . Economic impact . EnvironmEntal impact
Contents
Our corporate purpose 1
Unilever Sri Lanka our company at a glance 2
Awards and recognition 3
Sustainability as a business strategy 4
Social impacts: reaching out to our community 7
About this report
This publication is the frst of its kind for Unilever Sri Lanka, and it signifes
our commitment to the philosophy of sustainability. In it we examine how
Unilever Sri Lanka is impacting Sri Lankan lives and provide an account
of the goals and achievements of the sustainable development initiatives
that we have undertaken during the recent past in the areas of:
Social impact
Economic impact
Environmental impact
This is a frst step towards a formal sustainable development report
that we plan to start publishing annually with quantitative reporting in
line with the Global Reporting Initiative guidelines. While the impacts
reported here are limited to our main manufacturing facility at Grandpass,
we will in future be including our facilities at the Lindel industrial estate,
and our instant tea factory in Agarapathana as well.
Economic impacts: creating wealth and growing people 18
Environmental impacts: eco-efciency in manufacturing 30
Goals and achievements 37
Doing Well by Doing Good
The journey towards sustainability
Social impact . Economic impact . EnvironmEntal impact
mission
our mission is to add vitality to life. We meet every-
day needs for nutrition, hygiene and personal care
with brands that help people look good, feel good
and get more out of life.
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We see opportunities to grow our business by addressing some of the
most important social and environmental challenges facing the world
and our business today. We call this Doing Well By Doing Good
Our values
Over 100 years ago, our founders created not only some of the worlds
frst consumer brands, but also built a business with strong values and
a mission to act on social issues. We continue to build on this heritage.
A commitment to sustainable development and responsible business
practice is embedded in our Vitality, Mission and Corporate Purpose.
A sustainable approach to adding vitality
Sustainable Development is about meeting the needs of society
today without compromising the ability of future generations to
survive and prosper. For us at Unilever Sri Lanka, it means closely and
honestly examining our business and our brands and how they impact
Sri Lankans. And it means making sure that while we deliver value to
our investors and do well, at the end of the day we also do good by
enriching the lives of all those we touch. We understand that in the
long term, it is only by adding value to the lives of our consumers,
partners, employees and members of the community in which we
work, that we achieve sustainable success.
Unilever has been increasingly integrating sustainability into the way
we achieve our mission of helping people to get more out of life. On a
global scale, Unilever invests heavily in research and development to
improve the quality and value of our products. It is also continuously
working towards reducing the environmental impacts right across
the lifecycle of each product, from direct manufacturing impacts to
indirect impacts such as those caused by the sourcing of raw material
and the actual use of the product by the consumer. The company has
developed its own metrics to measure these impacts in meaningful,
quantifable ways and reports regularly on progress towards sustainable
development goals. Unilevers online Sustainability Development
Report 2008 (www.unilever.com) gives a comprehensive account of
the companys social, economic and environmental performance.
Building a sustainable business:
strategy and governance
In the local context, we at Unilever Sri Lanka are also examining every
area of our business in the light of sustainability. From the sourcing of
raw material to manufacturing, distribution and consumer use, we are
assessing the impacts we have on our suppliers, our employees, our
business partners, our consumers, the community that we operate in,
and Sri Lankas environment.
Our corporate purpose
Our mission is to add vitality to life. We meet everyday needs for
nutrition, hygiene and personal care with brands that help people look
good, feel good and get more out of life.
Our deep roots in local cultures and markets around the world give
us our strong relationship with consumers and the foundation
for our future growth. We will bring our wealth of knowledge and
international expertise to the service of local consumers a truly multi-
local multinational.
Our long-term success requires a total commitment to exceptional
standards of performance and productivity, working together
efectively, and a willingness to embrace new ideas and learn
continuously.
To succeed also requires, we believe, the highest standards of corporate
behaviour towards everyone we work with, the communities we touch
and the environment on which we have an impact.
This is our road to sustainable, proftable growth, creating long-term
value for our shareholders, our people and our business partners.
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Unilever Sri Lanka
Our business and our brands
Unilever Sri Lanka, formerly known as Lever Brothers Ceylon Limited
was incorporated in 1938 with brands such as Sunlight, Lux and Pears
Rose. The frst soap factory was set up in Grandpass in 1940, and the
manufacture of bakery fats and margarine commenced a year later. In
1958 we established our own selling and distribution organisation. Over
the next three decades we diversifed and expanded our operations
which were managed by several corporate entities such as Lipton,
Brooke Bond and Premier Foods. In the nineties, we consolidated our
businesses under the umbrella of Unilever Ceylon Limited. In 2004 we
became known as Unilever Sri Lanka.
Now, seventy years since we frst began operations in the country,
we are home to twenty-six strong brands that enable us to meet the
everyday needs of Sri Lankans for hygiene, nutrition and personal care.
Developed with our local consumers at heart, our brands are all leaders
in their product categories, and are uniquely positioned in line with our
mission of adding vitality to life.
We are proud of the exceptionally motivated and loyal individuals who
make up the staf of Unilever Sri Lanka and work as one dynamic team
to grow and nurture our brands. They share Unilevers philosophy and
vision, and its commitment to business ethics, work place safety, and
employee health, as well as its concern for the environment and the
greater community permeates through all levels of the organisation.
Operations
Unilever Sri Lanka produces 95% of all the products marketed in
Sri Lanka, right here in the country, providing direct employment
to 1100 people and indirect employment to thousands more. The
manufacturing of our Home Care, Personal Care and Foods is carried
out at our central manufacturing facility at Grandpass, which has a total
annual capacity of 80,000 metric tons. We also operate a hard soap
manufacturing plant and distribution centre at the Lindel Industrial
Estate in Sapugaskanda, while Premium Exports Ceylon Ltd., a subsidiary
of Unilever, operates an instant tea factory located in Agarapathana.
Product categories
Skin cleansing, skin care, oral care, hair care, personal grooming,
household care, fabric cleaning, tea, spreads.
Our brands
Home Care
Sunlight, Vim, Rin, Surf Excel, Comfort, Wonderlight
Personal Care
Lux, Lifebuoy, Signal, Rexona, Ponds, Pears, Fair & Lovely, Sunsilk, Dove,
Axe, Clear, Vaseline
Poods
Ceylonta, Lipton, Laojee, Bru, Astra, Flora, Marmite and Knorr
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Highlights of recognition received from external bodies from 2004 - 2009
2004 Awarded the Ceylon Chamber of Commerce Best Corporate Citizen Award - First Runner Up
2005 Signal is voted Most Preferred Brand at National Icon Awards
Awarded CIMA Community Leader Award
2006 Awarded Presidents Award for Environment
Sunlight is voted FMCG Brand of the Year, Vim - the winner in Household Care category, and Signal, the winner
in Personal Care category at the Power of the People (PoP) Awards
2007 11 Unilever brands won Superbrand status
Awarded the National TPM and 5S Awards for our main manufacturing facility at Grandpass
2008 Ranked among the top 10 of Sri Lankas Most Respected Companies (and the highest ranked multinational) by LMD
Sunlight voted the FMCG Brand of the Year and Youth Brand of the Year, and Lifebuoy - the Personal Care Brand
of the Year, at the Power of the People (PoP) Awards
2009 11 Unilever brands ranked within the top 50 of the Top 100 Private Brands of Sri Lanka published in the
Brands Annual
Sunlight celebrates 125 years
Awards and Recognition
Ceylon Petroleum Corporation Award by the Sri Lanka Energy Managers Association
Awarded the Ministry of Environment Green Jobs Award under the Climate Change category, for use of
renewable energy
Moves upto 5th position in LMDs Most Respected ranking
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I am pleased to present to you the Unilever Sri Lanka Sustainable
Development Overview, an initiative to report on our eforts to integrate
concepts of sustainable development into our business strategy.
Sharing our journey
The past few years have seen Unilever Sri Lanka examine its spectrum
of operations to gauge our potential impact on stakeholders.
And now, for the frst time, we are reporting on these impacts and
on what we are doing to ensure that our growth in this country is
indeed sustainable, focussing on the sustainability initiatives we have
undertaken in the areas of:
Creating positive social impacts - reaching out through our
brands to boost peoples personal vitality and well-being by
promoting better nutrition and hygiene habits, helping to
empower women, and responding to the needs of local
communities while encouraging our employees to get actively
involved in community projects.
Economic impacts - creating livelihoods and generating
wealth for more Sri Lankans by increasing the proportion of raw
Doing Well by Doing Good
Sustainability as a business strategy
materials sourced within the country and the proportion of goods
manufactured locally, developing the small and micro industrial
sector, and investing in our employees and our business partners.

Helping our environment by optimising the use of resources and
minimising waste in our manufacturing operations.
We have a lot to be proud of. Our community outreach programmes
have been going on for over twenty-fve years. We rank among the
most preferred employers in the country, and among the most
respected corporate entities, and we have actively helped to build
the businesses of our suppliers and other business partners. We are a
responsible manufacturer: through our continuous eforts to improve
our performance in this area, we have signifcantly reduced the use of
resources and the generation of waste.
But, there is still much to be done. We are only at the beginning of our
journey towards sustainability. In order to tread lightly on our planet,
we need to continuously improve the sustainability of all aspects of our
operations, and to this goal we are completely committed.
This publication is yet another step in our journey. By publicly sharing
indicators of our performance, we are pushing ourselves to new
heights in accountability. In the coming years, we will be publishing
formal Sustainable Development reports in which we will attempt to
quantify our impacts in line with global standards.
Amal Cabraal
Chairman
Unilever Sri Lanka
20 November 2009
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The journey towards sustainability
SOC|AL |MPACT . LCONOM|C |MPACT . LNv|PONMLNTAL |MPACT
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...llnklng our brands wlth
programmes that are deslgned to
upllft the llves of those around us...
...llnklng our brands wlth
programmes that are deslgned to
upllft the llves of those around us...
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Social Impact
Reaching out to our community
For over 25 years, long before CSR became a buzzword with corporates, we at Unilever
Sri Lanka have been reaching out to the people in our community, linking our brands with
programmes that are designed to uplift the lives of those around us, irrespective of whether
they are customers of Unilever or not.
From boosting peoples personal vitality and well-being by promoting better nutrition,
hygiene and lifestyles, to helping empower women and improving healthcare for children,
and providing disaster relief, we are committed to responding to the needs of local
communities.
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Social Impact contd..
As one of the market leaders in the
manufacture of soap and toothpaste, we are
uniquely placed to play a role in improving
peoples health by making efective
products that provide protection against
disease; helping people access the right
products; and transforming everyday habits
through behaviour change campaigns.
The campaigns have focussed mainly on
children, since lifetime habits are best
inculcated in childhood.

Spreadlng the Slgnal smlle
Since its launch in 1982, the Signal Oral Health Service has been
inculcating the importance of good oral habits in pre-school and
primary school children through activities such as providing free dental
check-ups and distributing samples of toothpaste and toothbrushes as
well as educational leafets and posters, and by conducting large scale
community-based oral health camps. To date, Signal has reached over
three million children with its message of how brushing twice a day
with fuoridated toothpaste can play a signifcant role in preventing
tooth decay and gum disease.
Signal also supports dental research and has sponsored several
International Dental Congresses held in Sri Lanka. A successful
lobbying efort initiated by Unilever Sri Lanka and carried through
by the Sri Lanka Dental Association (SLDA) resulted in the Ministry
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of Health declaring 31st October each year as National Oral Health
Day. Sri Lankas toothpaste penetration level is 90%, higher than its
neighbouring countries, India, Pakistan and Bangladesh, while the
per capita consumption of toothpaste, an indicator of the number of
people who brush their teeth, is double that of its neighbours.
Sina Bo Wewa
The warmth of the Sri Lankan smile catches the imagination of any
visitor to our shore and has given Sri Lanka the image of being one
of the friendliest nations in the world. This inspired Signal to launch
Signal Sina Bo Wewa (which can be loosely translated as Spread the
Signal Smile) in 2005. As part of this programme, a Signal Smile truck
travelled the length and breadth of the country photographing 100,000
enchanting smiles, while spreading the message of oral hygiene. This
efort incidentally won a place in the Guinness Book of Records for the
highest number of photographs under a single theme. The campaign
was also highly commended by Sri Lankas tourism industry, for its
dazzling portrayal of Sri Lankas warmth and hospitality. The Sina Bo
Wewa campaign continues to this day.
The warmth of the Sri Lankan smile
catches the imagination of any visitor
to our shore and has given Sri Lanka
the image of being one of the friendliest
nations in the world.
2000 200l 2002 2003 2004 2005 2006 2007 2008
l80,000
l60,000
l40,000
l20,000
ll0,000
0
Number of children reached through Signal programmes
Increase in brushing teeth with fuoride.
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Social Impact contd..
Through the Lifebuoy health and
hygiene awareness programmes that
we have been conducting in schools
since 2002, we have been able to
spread our message of cleanliness to
more than 1 million students in 750
schools...
Comlng clean wlth Llfebuoy
At frst thought, infuencing more people to wash their hands and
brush their teeth may not seem like much, but in fact the potential
for improving health and actually saving lives is tremendous. Simple
changes to everyday habits, like washing hands with soap and water
before touching food and after going to the toilet, can halve the risk of
contracting diarrhoeal diseases that claim the lives of over 3.5 million
children each year, globally.
Through the Lifebuoy health and hygiene awareness programmes that
we have been conducting in schools since 2002, we have been able to
spread our message of cleanliness to more than 1 million students in
750 schools.
The frst series of programmes, known as Suwa Sirith Meheya was
designed to educate children about basic health and hygiene habits,
create awareness of how simple habits like washing of hands with
soap can help in preventing the spread of diseases, and help parents
to encourage these habits in their children.
In 2006, we launched a new programme we called Ignite the Hero
Within, which attempts to create awareness in a fun, appealing
way, with Germ Fighter Clubs set up in schools, so that the children
themselves get involved in promoting good hygiene.
The frst ever Global Handwashing Day - an initiative led by The World
Bank, UNICEF, Centres for Disease Control and Prevention, USAID and
Unilever was held on 18 October 2008. Unilever Sri Lanka celebrated
this special day by collaborating with the Ministries of Health and
Education and UNICEF to get one million school children involved in
activities like making a pledge to lead a healthier life and, of course,
washing their hands with soap and water.
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The Plora Healthy Heart pro[ect
The Flora brand has long been associated with heart health. In Sri Lanka,
Floras Hadaridma or Healthy Heart campaign was launched in 2007
to communicate the message that heart disease is preventable and
create awareness of the lifestyle changes that could prevent people
from falling victim to this disease.
The programme, being carried out in partnership with Nawaloka
Hospitals Plc and the Sri Lanka Heart Association, is driven in urgency
by the statistics that show that the number one cause of death in
Sri Lanka is heart-related disease and that at least seven out of ten
cases could be averted by leading a healthier lifestyle.
Public awareness of the dangers of unhealthy living is still low and we
hope that the focussed message of the campaign - the importance
of eating better, reducing stress and exercising regularly - will enable
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Social Impact contd..
The campaign is also being taken
to corporate ofces to address how
busy executives could reduce the level
of stress in their lives and be kinder to
their hearts by adjusting their diets and
other aspects of their lifestyles.
Sri Lankans to make more informed lifestyle choices which in turn will
help them to live longer and healthier lives.
To reach as many people as possible as quickly as possible, the
campaign uses television as the medium of choice. Programming
includes lifestyle counselling from leading cardiologists and heart-
healthy cooking tips from renowned chefs.
The campaign is also being taken to corporate ofces to address how
busy executives could reduce the level of stress in their lives and be
kinder to their hearts by adjusting their diets and other aspects of their
lifestyles.
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...a special initiative to improve the
facilities at maternity, neonatal and
paediatric wards at government-run
hospitals that provide medical care for
infants and children from low income
families.
Pears Safe Hands reaches out to chlldren ln need
Each year, hundreds of thousands of sick children are taken care of
completely free of charge through Sri Lankas national network of
government-run hospitals. At Unilever it was felt that we should do our
share to help and in 2002, Pears adopted as part of its social mission
a special initiative to improve the facilities at maternity, neonatal and
paediatric wards at government-run hospitals that provide medical care
for infants and children, particularly those from low income families.
Unilever Sri Lanka began to channel 25 cents for every product sold
into a fund set aside for this purpose, and soon there was enough to
get the project started.
In October of the same year, Pears Safe Hands completed equipping
and refurbishing the Emergency Treatment Centre and Nebulisation
Unit of the Lady Ridgeway Childrens Hospital in Colombo.
Since then, similar projects have been carried out at fourteen hospitals
around the country, based on the recommendations of the Sri Lanka
College of Paediatricians. So far 27.5 million rupees has been collected
through the fund, helping to provide an estimated one million infants,
children and mothers with better equipped and more cheerful wards
in which to receive treatment and recuperate from illness.
As the project moved from hospital to hospital, groups of volunteers
from Unilever Sri Lanka have also become involved and, often together
with members of the local community, have undertaken to spruce up
other areas of the hospital such as the childrens play areas, adding that
extra dimension of personal involvement to the project.
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...encouraging womens economic
empowerment by providing
information and resources in the areas
of career, education and enterprise...
Social Impact contd..
Lmpowerlng women
Unilever set up the Fair & Lovely Foundation in 2003 with a mission
to encourage womens economic empowerment by providing
information and resources in the areas of career, education and
enterprise. Since then it has initiated a series of personality and
entrepreneurship development programmes including a series of
career guidance fairs, which have been widely acclaimed as being
both timely and useful.
Empowering women is one of the most efective ways of creating prosperity, particularly in
rural communities. An empowered woman will not only uplift the living standards of her own
family, but often that of her extended family and other community members as well, so the
benefts ripple outwards.
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Professional career counsellors from
the University of Colombo were also
on hand to talk to visitors one-on-one
and ofer guidance and advice, while
profling tests were employed to help
identify professions best suited to the
skills and interests of each student....
One of the problems faced by senior students or young graduates
is a lack of information on the range of vocations available to them.
A fxation on just a handful of popular options like medicine, engineering
and teaching, results in those who miss out being left frustrated and
often unemployed.
From 2005 onward, the Foundation has been working to fll this void
by organising regular career fairs in collaboration with the Vocational
Training Institute. At the 2008 Jeewika Athwela career guidance fair
held in Matara, dozens of industry and vocation stalls presented some
150 avenues of employment. Each stall ofered descriptions of the
relevant sector or a comprehensive account of a particular vocation
and a biographical narrative of a model professional. An experienced
practitioner from each feld was also available to answer any specifc
questions.
Professional career counsellors from the University of Colombo were
also on hand to talk to visitors one-on-one and ofer guidance and
advice, while profling tests were employed to help identify professions
best suited to the skills and interests of each student. A CV corner
taught interested visitors how to create their own CVs and gave tips
on flling out job applications. Booklets with general information on 28
diferent sectors of industry, trade and vocations, and a comprehensive
index of vocational training institutes in the country were also made
available.
Held over a three-day period, the fair attracted over 25,000 visitors.
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Social Impact contd..
Projects carried out by Mehewara
teams in 2008 include: setting up
a new library for a government
school in the neighbourhood
of Unilevers Grandpass factory;
working with a group of partially
blind children from the Deaf and
Blind School in Ratmalana to create
greeting cards, which were then
used as e-cards by Unilever; and a
make a wish come true programme for 21 children from a childrens
home in Maharagama, where employees treated the children to a fun-
flled day out complete with a picnic in the park and a movie, capped
by armfuls of gifts to take home.
Gettlng |nvolved ln Mehewara
Mehewara, (Sinhala for social service) is a formal scheme designed to
accommodate the desire of many of Unilever Sri Lankas employees
to get personally involved in community work. Unilever fully endorses
and encourages the idea of employees taking a hands-on approach,
and has taken the progressive step of ofering employees one week of
paid leave each year to work for a charitable cause of their choice.
While this initiative is independent of Unilevers own social
responsibility projects, some employees choose to participate in these
projects. Mehewara encourages employees to work in teams to build
camaraderie, and plans to expand the scheme to include families of
employees as well.
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Unilever also provided temporary
infrastructure facilities and helped
manage a refugee camp that housed
up to 6,000 people from the east coast
for two months, and supported an
income generation programme for
fshermen afected by the tsunami.
Dlsaster rellef and reconstructlon
After the tsunami of December 2004 that wreaked destruction along
the southern and eastern coasts of Sri Lanka, taking the lives of over
31,000 and leaving thousands homeless, Unilever Sri Lanka and its
employees sped to the aid of the victims of the disaster by pledging
Rs 100mn for relief and reconstruction projects.
Within a day, we had started distributing food, water and other
essential items. 1000 packets of cooked food were airlifted to those
in need for 7 days, along with 30,000 care packs and 25,000 kg of rice.
Water bowsers were sent to deliver water to refugee camps and several
trucks were placed at the disposal of the World Food Programme and
the Ministry of Health to distribute medicines to camps during the
next two months. Unilever also provided temporary infrastructure
facilities and helped manage a refugee camp that housed up to 6,000
people from the east coast for two months, and supported an income
generation programme for fshermen afected by the tsunami. On the
trade rehabilitation side, we put up 14 temporary shops, which also
included stock replacement, seminars and workshops for retailers in
order to motivate them to recommence operations.
During the year that followed, Unilever Sri Lanka funded the
construction of 50 houses in Hikkaduwa and 70 houses in Trincomalee,
while also undertaking the renovation of several schools and hospitals
along the coastal belt.
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Economic Impact
Creating wealth and growing people
By increasingly sourcing our raw materials locally, manufacturing on-shore, and engaging
local businesses as suppliers, distributors and logistics providers, Unilever plays a positive
role in Sri Lankas economic development, creating livelihoods and generating wealth for
Sri Lankans.
And by consciously espousing ethical business practices - in our own business and those of
our partners, directing our eforts towards encouraging small industries, creating sustainable
livelihoods, and investing in the growth and development of our employees and our business
partners, we ensure that more people share the economic benefts of our operations in
Sri Lanka.
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95% of all Unllever products
marketed ln Srl Lanka are produced
on shore.
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Economic Impact contd..
Lthlcal buslness
Everything we do is underpinned by our commitment to the highest
standard of corporate behaviour. The Code of Business Principles that
we know simply as The Code is Unilevers statement of values and
spells out the standard of conduct that all our employees are expected
to meet. It is the benchmark against which we examine our own
behaviour, and against which we invite the outside world to judge our
activities.
The Code covers all aspects of our business interactions. It describes the
standards we must meet in terms of our general conduct, compliance
with laws and regulations, adherence to open and honest business
transactions, and avoidance of confict between personal interests
and company responsibilities. It covers good corporate governance
on behalf of our shareholders, and the necessity to cooperate with
government and public bodies in our pursuit of legitimate business
interests. And it calls for respect for public opinion and respect for
competition, as well as concern for safety throughout our operations.
It highlights our responsibility to ensure that our products are
completely safe and ofer good value to our customers in terms of
price and quality. It specifes how we must build up mutually benefcial
relationships with our employees, our partners (including suppliers,
third party manufacturing units, co-packers, distributors, agencies, and
key accounts), our community and our environment.
Several mechanisms are in place to ensure that The Code is strictly
adhered to. A confdential ethics hotline allows anyone having any
concern regarding a possible violation of the code to call in and voice
this concern with the assurance of anonymity.
Unilevers global policies provide a mandatory set of rules that cover
operational and functional matters and are designed to ensure
consistency in key areas of conduct.
Responsible marketing
Unilever is also committed to responsible marketing. While we do not
directly target our marketing to children below 6 years of age, we also
restrict marketing targeted at children between 6 to 11 years of age
to the food and beverage products which have a positive nutrition
profle. We also avoid using models or actors who are either excessively
slim or promote unhealthy slimness in response to concerns about the
possible ill-efects of pursuing excessive slimness.
IMPACT ON SOCIETY
RESPONSIBLE
MANAGEMENT
PRACTISES
MUTUALLY
BENEFICIAL
RELATIONSHIPS
CONSUMERS
SHAREHOLDERS
COMPETITION
INNOVATION
PUBLIC
ACTIVITIES
EMPLOYEES
BUSINESS
PARTNERS
COMMUNITY
ENVIRONMENT
STANDARD
OF CONDUCT
OBEYING
THE LAW
BUSINESS
INTEGRITY
CONFLICT
OF INTEREST
FOUNDATION OF TRUST
The Code - Our impact on all stakeholders,
internally and externally
UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw 2l
value addltlon and partner growth
95% of all Unilever products marketed in Sri Lanka are produced on
shore. Our main production facility at Grandpass in Colombo and our
instant tea factory at Agarapathana provide direct employment to
1,100 people.
We are also committed to sourcing more of our raw material locally. All
of the leaf tea used in our Ceylonta brand is sourced locally, as is the
palm oil used for our edible products, and over 90% of our packaging
material. We also outsource manufacturing of some products to third
parties whom we refer to as co-packers, while warehousing, distribution
and transportation services are also provided by third parties. An
estimated 10,000 indirect jobs are sustained by Unilever Sri Lanka.
By adding value locally, the wealth that is generated is distributed
among our shareholders, employees, suppliers, distributors and service
providers, as well as the Government of Sri Lanka.
We understand that while adding value through the economic chain,
creating jobs and contributing to government revenue is important,
it is by ensuring that we have mutually benefcial relationships with
our partners that we can make this value chain truly sustainable. For
this reason, we have ongoing initiatives to share global best practices,
transfer technology and provide useful inputs into the business
processes of our business partners.
...Unilever plays a positive role in Sri
Lankas economic development,
creating livelihoods and generating
wealth for Sri Lankans.
22 UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw
Economic Impact contd..
...it is by ensuring that we have
mutually benefcial partnerships
with our suppliers, co-packers and
distributors that we can make this
value chain truly sustainable.
Because of our commitment to long-term relationships, we are careful
at the outset to only select partners whose business practices are
compatible with our own. Over the years, Unilever has developed a
Business Partner Code, which we ask all our partners to abide by. We
in turn provide them with the training and support they may need to
achieve the standard required.
Suppliers and co-packers are invited to visit our production facilities
and are ofered classroom-based training on the implementation of
our recommended occupational safety, health and environmental
care practices. Some suppliers are even given the opportunity to visit
Unilever factories in other parts of the world to gain exposure to best
UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw 23
practices in specifc areas. Unilever has helped set up or improve the
facilities of many of our local suppliers, notably suppliers of packaging,
palm oil and colouring. In most cases, Unilever has helped to source
the necessary plant and machinery, and provided the technological
know-how and training required to bring the suppliers operations up
to the standards demanded by Unilevers stringent quality and safety
criteria.
Business partners
We currently have 49 business partners involved in the distribution of
Unilever products. Together, they employ over 400 sales representatives,
merchandisers and ofce staf, and account for 80% of our turnover.
We work together with these partners to carry out skill gap analyses
and provide the training needed to remedy shortcomings, and to
introduce measures such as insurance schemes to enhance the
working conditions of their staf. Our distributors know that they can
depend on us for continued support and we have established one-to-
one contact points to address all business-related concerns.
Two local logistics service providers handle the total ambient
logistics chain and the cold chain operations for Unilever Sri Lanka.
We ensure that they maintain the standards of business conduct we
require and comply with the relevant legal, regulatory, safety, health
and environmental criteria throughout the contract period, thus
guaranteeing the well-being and security of their employees, and
ensuring business continuity and continuous improvement in the
logistics operations.
Our distributors know that they can
depend on us for continued support
and we have established one-to-one
contact points to address all business-
related concerns.
24 UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw
Economic Impact contd..
An empowered woman will not only
uplift the living standards of her own
family, but often that of her extended
family and other community members
as well, so the benefts ripple outwards.
Creatlng llvellhoods through
Saubhagya
Project Saubhagya is an innovative partnership
scheme that trains village women to become rural
entrepreneurs. The main objective of this programme
is to give rural Sri Lankan women an opportunity to
create micro-enterprises that could provide them with a sustainable
source of income, while improving direct rural reach for Unilever
products.
Unilever ofers the women a range of mass-market products that are
relevant to rural customers and provides them with the training they
need on basic enterprise management. With this in place, the women
are ready to embark on their own micro-enterprises. Saubhagya
entrepreneurs act as direct-to-home ambassadors for Unilever brands
in their own villages and through their business are able to earn a
substantial income for their families.
But this initiative has changed these womens lives in ways that are
even more profound than the income they earn from selling products.
It has brought them self-esteem, a sense of empowerment and a place
in society.
We have helped establish more than 3,000 Saubhagya entrepreneurs
to date and our target is to have 3,500 micro-entrepreneurs by next
year.
UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw 25
Lmployee health, safety and vltallty
Fostering best practices of course begins with our own operations. At
Unilever, the health and safety of all our employees is a primary business
objective and we are committed to the continuous improvement of
our record of health and safety at work.
Our aim is to prevent all incidents of personal injury and occupational ill
health. Employees and their manager at all levels are held accountable
for the occupational health and safety. Whilst Unilever recognises that
employees have a right to expect a healthy and safe place of work
we expect all our employees to work safely. Thus, we constantly create
awareness and promote responsible behaviour as well as safe working
conditions, to maintain an accident free workplace.
The Chairman of Unilever Sri Lanka heads the Central Safety, Health
and Environment Committee, which develops all occupational safety
We constantly create awareness and
promote responsible behaviour as well
as safe working conditions, to maintain
an accident free workplace.
policies, rules, procedures and standards that we implement in order to
protect our employees and our environment. Our commitment to this
area is refected in a decrease in recordable accident frequency.
In addition to health protection - protecting employees from possible
work-related hazards, our corporate Occupational Health Strategy
also addresses health promotion - improving the health of individual
employees to enable them to work safely and efectively. A personal
vitality programme, Vitality for Me, was launched in 2007 to help
employees to fnd ways of renewing their well being and energy, both
26 UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw
Economic Impact contd..
in terms of ftness of body (nutrition, health, hygiene and personal
care) and ftness of heart, mind and spirit (managing personal energy
to improve vitality). Our eforts in this area won us international
recognition, when we were presented with the Unilever Regional
Health Award for Asia in 2008.
Pespectlng human rlghts
We abide by all Sri Lankan labour laws that ensure human dignity and
labour rights, and also by Unilevers own stringent standards set out in
our Code of Business Principles. 65% of our employees are members
of trade unions, and we are proud to be a frontrunner in adopting a
new, more efective approach to labour relations promoted by the
International Labour Organisation.
...our corporate Occupational Health strategy also addresses health promotion
- improving the health of individual employees to enable them to work safely and
efectively.
UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw 27
Growlng people
Growing our employees as professionals and as individuals is a key
measure of our success and is vital to our sustainability. We are proud
to be an equal opportunity employer and one who places the well-
being of our employees at the very top of our agenda. At all levels, we
strive to provide opportunities for career growth as well as for personal
development.
We recognise that our employees represent the companys philosophy,
refect the companys image, and act as ambassadors for every message
that we deliver. In line with our human resources development goals of
tapping potential, addressing weaknesses and building performance
and professionalism, Unilever Sri Lanka spends over 29 million rupees
annually on employee training.
In addition to external training to strengthen key areas, we also place
an emphasis on sharing knowledge within our organisation through
internal training and mentoring programmes. In 2008, over 60% of
employees across all levels in the organisation received foreign/local
in-house training.
workforce categorlzatlon
Unilever Sri Lanka created history in 2008 not only for the company
but in the country also with the Workforce Categorisation project. This
initiative intends to upgrade skills of workforce employees at Unilever
Sri Lanka and will contribute towards workforce development in the
industry as well as the country.
Head Count Report - July 2009
Total no. of employees Total
Permanent
Management - Work Level 2+ 60
Management - Work Level 1 306
Staf 119
Workforce 671
Total 1156
This signifcant achievement by Unilever Sri Lanka entails for the
workforce employee, career paths, skill development, performance
based increments and promotions and motivation to work. The
organization too will beneft by means of an efcient and skilled
workforce, improved productivity, competitive remuneration and
content employees.
In addition to external training to
strengthen key areas, we also place an
emphasis on sharing knowledge within
our organisation through internal
training and mentoring programmes.
28 UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw
Economic Impact contd..
Our staf training and development
programmes are considered among
the best in the industry and our
Internship and Management Trainee
positions are much sought after by
undergraduates.
Groomlng future leaders
In 2008 Unilever Sri Lanka initiated an internship programme for
undergraduates with the dual objectives of attracting and grooming
the best potential talent for the company, and helping to make
university students more employable for the private sector. The
candidates selected for the programme are undergraduates at the
countrys top universities and institutions, who have completed their
second academic year.
During the six-month programme the interns work on specifc projects
while being exposed to team building training, leadership workshops,
and functional academies. They are also encouraged to take on CSR
projects and participate in other staf activities, so that they have a
rich, balanced professional experience. At Uniliver we ofer them the
UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw 29
Functional placements provide
on-the-job learning while a
comprehensive training program,
regular performance reviews and a
performance development plan for
each trainee ensures that the high
standards of the global programme
are maintained...
combination of real responsibility and real work assignments wihtin
a challenging enviornment. We currently accommodate around 100
interns and trainees at Unilever.
Unilevers Management Trainee program is highly sought after
by graduates seeking a challenging and fulflling career. The 2009
programme is aligned to the Global Approach to Graduates
programme, and is being piloted in South Asia through Sri Lanka.
The 24-month programme has a functional focus while ensuring
each Management Trainee is also exposed to cross functional
spheres. Functional placements provide on-the-job learning while a
comprehensive training program, regular performance reviews and a
performance development plan for each trainee ensures that the high
standards of the global programme are maintained.
30 UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw
Environmental Impact
Eco-efciency in manufacturing
Unilevers Grandpass Factory is a complex manufacturing site with multiple production plants
and a total annual capacity of about 80,000 metric tons. Given the scale of our operations, we
are extremely mindful of our impact on the environment and invest a great deal of money
and efort into ensuring that our operations are environmentally sustainable.
Environmental considerations are an integral part of all planning, design and operational
decisions. And even though our manufacturing operations already comply with all relevant
local environmental standards, we are committed to further reducing our environmental
footprint by continuously working towards minimising both the resources we use and the
emissions and waste we generate.
UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw 3l
...contlnuously worklng towards
mlnlmlslng both the resources we
use and the emlsslons and waste we
generate.
32 UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw
Environmental Impact contd..
Unilever Sri Lankas Grandpass
site became fully compliant with
the Unilever Environmental Care
Framework Standards in 2001, and the
facility obtained ISO 14001 a year later.
Systems and standards
In line with Unilevers Environmental Care Framework Standards,
Unilever Sri Lanka has established its own formal environmental
management system. This is based on the ISO 14001 management
systems standard and is ultimately applicable to all areas of our
business.
An essential element of this system is the setting and reviewing of
targets for indicators that measure our performance in the areas of:
optimising the use of natural resources, raw material, packaging
material and energy; and minimising waste water discharges, solid
waste and emission.
Unilever Sri Lankas Grandpass site became fully compliant with the
Unilever Environmental Care Framework Standards in 2001, and the
facility obtained ISO 14001 a year later.
In recognition of our commitment to sound environmental practices,
we were awarded the Presidential Award for Environment in 2006.
We were presented with a merit award from the Sri Lanka Energy
Managers Association (SLEMA) for outstanding achievements in the
feld of Thermal Energy the same year.
UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw 33
2004 2008 Reduction
Total Energy (GJ) 295,900 218,696 26%
Specifc Energy Usage
(GJ/Ton of production) 4.44 3.04 32%
Water usage (m3) 262,241 213,147 19%
CO2 emissions (Tons) 25,140 18,752 25%
SOx emissions (kg) 206,818 164,050 21%
Total waste (Tons) l03,4l4 80,003 23%
...our facility is a zero discharge site...all waste water is treated and re-used
internally.
Pesource usage, waste and greenhouse gas
emlsslons
Our use of energy represents our most signifcant environmental
impact in terms of the usage of non-renewable resources and the
emission of greenhouse gasses which contribute to climate change.
In 2005 Unilever Sri Lanka began a formal site-wide Energy
Management Programme aimed at fnding ways to reduce the amount
of fossil fuel we burn to power our operations, and thus reduce our
emission of greenhouse gasses such as carbon dioxide. 85% of the
total energy requirement at the facility is for the generation of steam
34 UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw
Environmental Impact contd..
The switch from fossil fuel to carbon
neutral fuel means an efective
reduction in our carbon dioxide
emissions of 14,000 tons a year (a
reduction of 80%).
for manufacturing processes, thus the generation and usage of steam
that were the primary areas of focus. Through a series of changes that
were adopted to improve the efciency of each step in the process,
Unilever succeeded in reducing its total consumption of steam from
13 MT/hr to 10 MT/hr, and improved its specifc energy usage from 4.4
to 3.3 GJ/ton of production, between 2004 and 2008.
Not satisfed with these incremental improvements, we also evaluated
several alternatives to fossil fuels, and in March 2009 Unilever Sri
Lanka commissioned a biomass boiler which is fuelled by indigenous
renewable energy resources, to replace its existing boilers fuelled by
furnace oil. This represented a quantum leap in our quest for cleaner
and greener energy. The switch from fossil fuel to carbon neutral fuel
means an efective reduction in our carbon dioxide emissions of 14,000
tons a year (a reduction of 80%), in addition to bringing a host of other
green benefts.
Water is a precious and increasingly scarce resource. The usage
of water in our manufacturing process is therefore one of the key
indicators monitored by our environmental management system. By
carefully auditing all the processes that use water, and implementing
changes wherever necessary, we have been able to minimise
wastage, particularly through improvements in the efciency of steam
generation, reducing the amount of steam used, and the recycling
of condensate. Between 2004 and 2008, we have brought down the
usage of water by 19%.
Waste water from our Grandpass production facilities is treated on site
by a state-of-the-art efuent treatment plant with a capacity of 350
tons of efuent per day. Our facility is a zero discharge site, which means
that all waste water is treated and re-used internally. The sludge from
the treatment plant is de-watered, solar dried and used as fertiliser.
Unilever Sri Lanka uses a two-pronged strategy to minimise solid waste.
The frst is to prevent losses and wastage of raw material by improving
production efciency and refning and modifying production processes.
And the second is to re-use and recycle as much of the residual waste
as possible. Much of the packaging waste as well as all the ofce and
canteen waste from our site are now recycled by third parties.
UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw 35
Swltchlng to green energy
Of the total energy requirement of Unilever Sri Lankas Grandpass
facility, as much as 85% is for the generation of steam used in the
manufacturing processes. Until a few months ago, we depended on
traditional boilers fuelled by furnace oil. Despite our ongoing eforts
to reduce our consumption of fuel through a variety of energy saving
measures in our production process, the fact that burning fossil fuels
resulted in high carbon dioxide (CO2) and sulphur (SOx) emissions
remained a serious concern. Furnace oil also carried the added
disadvantages of high cost, and being subject to frequent price
fuctuations.
The solution was to turn to an alternative fuel, and in March 2009,
Unilever commissioned a biomass boiler with a steam generation
capacity of 12 tons/hr enough for the normal running of the factory,
to replace its existing fossil fuel boilers. The new boiler, installed at
a cost of 120 million rupees, is fuelled by renewable resources such
as coconut shells, wood chips and saw dust. These fuels are also
categorised as carbon neutral a term referring to biomass which (if
not burnt as fuel) would release the carbon dioxide trapped through
photosynthesis back into the atmosphere, through the natural process
of decay. The sulphur (SOx) emissions from the biomass boiler are also
signifcantly less than those released by petroleum fuel boilers.
The new technology will result in a saving of approximately 4,500
tons of furnace oil a year an estimated net reduction of 14,000 tons/
year of CO2, and 200 tons/yr of SOx, which represents a reduction in
greenhouse gas emissions of 80%.
The use of saw dust as one of the boiler fuels has an additional
environmental beneft. The disposal of this waste product is a perennial
problem faced by the timber industry. Much of the saw dust waste
is either directly dumped or eventually fnds its way into waterways,
causing severe water pollution. Unilever now uses up to 30 tons of saw
dust per day.
The new boiler, installed at a cost
of 120 million rupees, is fuelled by
renewable resources such as coconut
shells and saw dust. These fuels are also
categorised as carbon neutral...
36 UN|LLvLP SP| LANKA SUSTA|NA8LL DLvLLOPMLNT OvLPv|Lw
8etter eco-emclency ln soap manufacture
Unilever soaps have long been market leaders in Sri Lanka. Sunlight
commands 78% of the local market for laundry soap and Lifebuoy,
Lux and Pears soaps together account for 64% of the skin cleansing
market. Each year our Grandpass factory manufactures over 47,000
tons of soap.
Until 2009, the soap manufacturing plant used palm-based neutral
oils using the energy-intensive SAGE (Soap After Glycerine Extraction)
process, which required the running of a separate plant for the
extraction of glycerine another process with high energy cost.
After evaluating several options for improving the energy efciency of
the manufacturing process, Unilever Sri Lanka invested in setting up a
new alternative process which replaced the neutral oil with a Distilled
Fatty Acids (DFA) based blend. This new process is much simpler and
eliminates the need for several of the pumps and other machines that
Unilever Sri Lanka invested in setting
up a new alternative process which
replaced the neutral oil with a Distilled
Fatty Acids (DFA) based blend.
were part of the SAGE process. It also eliminates the need to run a
separate glycerine extraction plant.
Estimates based on the frst four months of production indicate that
there will be a saving of 11,000 tons of steam and 440Mwh of electricity
per year, bringing down energy usage from 0.54GJ/ton to 0.19GJ/ton
of production. This translates into a reduction in CO2 emissions of 3000
tons for this process.
Unilever Sri Lanka Ltd
258 M. Vincent Perera Mawatha,
Colombo 14
Sri Lanka
Tel: +94 (0) 11 470 0800
Fax: +94 (0) 11 244 5213
Web: www.unilever.com.lk

Information in this report pertains to Sri Lanka. For global information
on our social, economic and environmental performance, please visit
our online Sustainable Development Report 2008.