Unilever's Sustainability Strategy

• Unilever's new global strategy competes through sustainability.

Unilever's Logo and Values

• Over half of Unilever's values are focused on sustainability.
• The sun in the logo symbolizes the dedication to reduce greenhouse gas production.
• The bee represents community spirit and commitment to keeping the environment pollution-free.
• DNA symbolizes life and the possibility for a better future.
• The hand signifies care, sensitivity, and commitment to helping people achieve better health and hygiene.
• Hair depicts beauty, aesthetics, and connection to confidence.
• The palm tree shows respect for nature's growth and the environment.
• The swirl represents the enthusiasm to blend flavors and taste.
• The spoon showcases the improvement of nutrition and cooking for a healthier diet.
• The chili pepper signifies fresh agricultural ingredients used in production.
• The bowl represents the role of healthy food for sustainability.
• Fish symbolizes fresh food from nature and the sea.
• The wave signifies cleanliness in products.
• Packaging symbolizes the commitment to enhance customer experience.
• Clothes depict feeling fresh and confident in clean attire.
• Transformation represents finding new ways towards a positive change.
• The heart represents the symbol of love and health.
• Particles show the role of science/research helping lives/surroundings.
• Plant shows significance of the nature in the value chain for Unilever.
• The virtuous cycle shows recycling to reduce production waste.
• Lips symbolize transparent communication.
• Ice cream represents the significance of pleasure and refreshment.

Unilever's Stakeholder Hierarchy

• The USLP hierarchy and Unilever's values aim to improve performance.
• This is achieved by signaling the integration of societal issues into its core business strategy to key stakeholders.
• There is a growing consumer trend toward improved health and a protected environment.
• Employee motivation and empowerment leads to greater innovation.
• Government regulations and NGO activist campaigns are focusing more on global threats.
• Trust and transparency are important for SRIs that are growing in importance in capital allocations.

Differentiation through Sustainability

• The Sustainable Living Plan (USLP) allows Unilever to differentiate its products in markets seen as homogeneous.
• Differentiation creates loyal customers who value sustainability.
• Loyal customers have more inelastic demand, giving Unilever market power in pricing.

USLP's Initial Impact on Profits

• Customer loyalty results in higher prices and more sales.
• There has been an increase in Operating Margins from 13.6% to 14.5%.
• Market share gains have outpaced market growth.
• Employee loyalty has improved recruiting, retention, and productivity.
• Unilever is the world's 3rd most in-demand employer, behind Google and Apple.
• Employee satisfaction rating grew from 63% to 75%.
• Investor Loyalty resulted in more resources for R&D and Expansion.
• There has been an 18% increase in shareholder value.
• Unilever is listed on the Dow Jones Sustainability Index and GlobeScan.

Unilever's Market Power Pricing

• Profit maximization involves differentiation, customer loyalty, Pf, Qf, and that MR=MC.
• Factors such as competition and homogeneous goods, Pe and Qe, and found where D=MC facilitate social efficiency.
• Inefficiency occurs when firms with market power under produce, and society loses out on a net benefit.

Data-Driven Market Power Pricing

• For Profit Maximization MR=MC, Pf = $30, Qf = 3, Profit = 90-30 = $60
• For Social Efficiency D=MC, Pe = $10, Qe = 5, Profit = 50-50 = $0

USLP and Social Impact

• In 2013, 50 sustainability targets were defined, and only five were regarded as off plan
• In 2014, 67 defined sustainability targets, and only seven were off plan.
• Improved Internal Resource Efficiency with Internal Unilever GHG emissions decreasing by 40%.
• Improved Internal Resource Efficiency with Internal Unilever water impact decreased by 31%.
• USLP had Problems curbing external GHG and Water with GHG impact increased by 5%
• Consumers account for 68% of Unilever's GHGs, and water impact increased by 15% Consumers account for 85% of Unilever's water.

Options for the Future

• Double Down on USLP means early profit increases, and employee innovation.
• It will create Culture and brand loyalty to social accountability but does not guarantee control of GHGs and water.
• Hunker Down on Profits means Picked all low-hanging fruit.
• Hunker Down on Profits, slow growth, rising costs, focus on the 11 sustainable brands.
• Hunker Down on Profits leads to reputational loss and reduced employee morale.
• Pivot to Partners to meet USLP goals, cut costs expand reach however loss of agenda and unclear objectives.

Unilever USLP Update

• Hybrid approach with USLP reinforced commitment to sustainability for action on inequality/climate crisis.
• Some of the achievements include reaching 1.3 billion people through health, reducing total waste by 32%, reducing GHG and Renewable energy
• Some of the achievements include reducing sugar usage by 23%, women initiatives promote safety and gender balanced workplace.