Unilever 2013 Annual Report Download - page 52

STRATEI REPORT
As t s enttled to do by the ompanes Act 2006, the PL Board
has chosen to set out those matters requred to be dsclosed n
the Drectors’ Report whch t consders to be of strategc
mportance to PL n the Strategc Report (from the nsde front
cover to page 39), rather than here These matters are: likely
future developments in the business of PLC, PLC’s position on
environmental and sustainability matters, corporate
responsibility and diversity, together with a description of its
research and development activities and its risk management
policies and objectives.
REENHOUSE AS (H) EMISSIONS
REDUCING OUR ENVIRONMENTAL IMPACTS
Reducing the impacts of our own manufacturing operations –
eco-efficiency – is a long-standing element of our strategy to build
a sustainable business. We first reported on our eco-efficiency in
1996 and have a clear track record of improvement. As part of our
Unilever Sustainable Living Plan (USLP), we have set ambitious
eco-efficiency targets which include carbon dioxide (CO2)
emissions from energy used in manufacturing as well as water
and waste and targets for the new factories we are building. See
page 20 and our online Unilever Sustainable Living Report (to be
published at the end of April 2014) for further detail.
In line with the Companies Act 2006 (Strategic Report and
Directors’ Report) Regulations 2013 our greenhouse gas
performance is set out below. We have used the Greenhouse Gas
(GHG) Protocol Corporate Accounting and Reporting Standard to
calculate emissions of carbon dioxide from the combustion of
fuels (Scope 1) and from purchased electricity, heat, steam and
cooling (Scope 2). Carbon emission factors are used to convert
energy used in manufacturing to emissions of CO2. Carbon
emission factors for fuels are provided by the Intergovernmental
Panel on Climate Change (IPCC). Carbon emission factors for
electricity reflect the country or sub-region where each
manufacturing site is located and are provided by the
International Energy Agency (IEA) and local regulatory
authorities, for example the United States Environmental
Protection Agency (US EPA). We have selected an intensity ratio
based on production; this aligns our long-standing reporting of
manufacturing performance.
The GHG data relates to emissions during the 12 month period
1 October 2012 to 30 September 2013. This period is different to
that for which the remainder of the Directors’ Report is prepared
(which is the calendar year 2013). As a result of adjusting our
reporting period, we are able to deliver the complete data earlier,
thereby allowing time for external assurance of the data.
EMISSIONS OF CO2 FROM MANUFACTURING (TONNES),
1OCTOBER 2012 TO 30 SEPTEMBER 2013
Scope 1 1,013,690 tonnes CO2
Scope 2 939,457 tonnes CO2
Total Scope 1 & 2 1,953,147 tonnes O2+
Intensty rato 9885 kg O2 per tonne of producton+
Emissions from biogenic fuels 257,941 tonnes CO2
Emissions data includes material sources of Scope 1 and 2
emissions that have been subject to external assurance, ie
emissions of CO2 from energy used in manufacturing. Emissions
from the combustion of biogenic fuels (biomass, fuel crops etc) at
our manufacturing sites are reported separately to other Scope 1
and 2 emissions, as recommended by the GHG Protocol, and
excluded from our intensity ratio calculation.
Our GHG data does not include minor emissions sources that are
beyond our boundary of financial control or that are not material.
For example, emissions of CO2 from energy used in our offices
and warehouses are excluded, although we continue to drive
improvements in these areas through our USLP targets. The data
also excludes Scope 3 emissions (including consumer use of our
products) which we report as part of our USLP (see below).
One of the big goals of the USLP is to halve the environmental
footprint of the making and use of our products as we grow our
business by 2020 (see page 22). This is expressed on a per
consumer use basis – ie a single use, portion or serving of a
product, and measures the GHG emissions associated with the
lifecycle of a product from raw materials to manufacturing to
consumer use and disposal. To calculate this we consider
emissions spanning Scopes 1, 2 and 3. See page 22 and our online
Unilever Sustainable Living Report (to be published at the end of
April 2014) for further detail.
PROGRESS DURING THE YEAR
Total Scope 1 and 2 emissions during the reporting period have
demonstrated significant reduction compared to the previous
reporting period. They have also decreased significantly
compared to the 2008 baseline year of the target to reduce GHG in
manufacturing in the USLP.
Absolute emissions reduced by 3.0% compared to the previous 12
months (a reduction of 5.2% per tonne of production) and by over
830,000 tonnes+ (32% per tonne of production+) compared to the
USLP baseline year (2008).
The following are some of the biggest contributors to our
reductions in CO₂ emissions from energy used in manufacturing
during the reporting year:
• energy savings through adoption of a wide range of behaviours
and technologies. Energy use reduced by 3.0% per tonne of
production during the reporting period compared to the
previous 12 months; and
• investment in cost effective renewable energy technologies. At
the end of the calendar year, the number of manufacturing
sites that use either renewable fuels or other renewable
energy generated on site increased to 48 out of our total of 247.
EMPLOYEE INVOLVEMENT AND OMMUNIATION
Unilever’s UK companies maintain formal processes to inform,
consult and involve employees and their representatives.
A National Consultative Forum comprising employees and
management representatives meets regularly to provide a forum
for discussing issues relating to all Unilever sites in the United
Kingdom. We recognise collective bargaining on a number of sites
and engage with employees via the Sourcing Unit Forum, which
includes national officer representation from the three
recognised trade unions. Our manufacturing sites use tools such
as Total Productive Maintenance which rely heavily on employee
involvement, contribution and commitment.
+ PwC assured. In 2013 we adjusted our reporting period from 1 January - 31 December to 1 October - 30 September. We have recalculated the
prior12monthsto enable a like-for-like comparison (this has not been assured by PwC in 2013). For details and the basis of preparation see:
www.unilever.com/ara2013/downloads.
49Unlever Annual Report and Accounts 2013 overnance