SR UNILEVER 2012_ENG_tcm110-370144 - SRA

Transcription

Touching The
the lives
Lives
of every
Every Indonesian
Indonesian
every day
Every
Day
Sustainability
Laporan Tahunan
Report
2012
2011-2012
Annual Report
CONTENT
2
SUSTAINABILITY SCORE CARD
68
OUR CONTRIBUTION TO
ECONOMIC DEVELOPMENT
4
OUR APPROACH TO
SUSTAINABILITY REPORTING
72
PRODUCT RESPONSIBILITY
8
PRESIDENT DIRECTOR
STATEMENT
76
PEOPLE: THE HEART OF OUR
BUSINESS
12
ABOUT US
86
MOST SIGNIFICANT AWARDS
RECEIVED DURING 2011-2012
24
SUSTAINABILITY GOVERNANCE
88
ASSURANCE STATEMENT
34
THE BUSINESS CASE FOR ACTION
90
GLOSSARY
38
IMPROVING HEALTH AND WELLBEING
91
GRI CONTENT INDEX
46
REDUCING ENVIRONMENT
IMPACT
58
ENHANCING LIVELIHOODS
2
Sustainability report 2012
PT UNILEVER INDONESIA TBK
SUSTAINABILITY SCORECARD
Targets and Achievements in Brief
UNILEVER SUSTAINABLE LIVING
PLAN (USLP) AREA
TARGET
Improving Health and Well Being
Reduce diarrheal & respiratory
disease.
Change the hygiene behaviour of 1 billion
consumers globally by promoting the benefits
of hand washing at key times by 2015
Improve Oral Health.
Encourage day and night brushing. Change the
tooth brushing behaviour of 50 million people
globally by 2020
Reducing Environmental Impact
Reduce water use in the laundry process
by making easier rinsing products more widely
available. Provide 50 million households
in water-scarce countries with home care
products that use less water by 2020
Enhancing Livelihoods
Helping Smallholder farmers.
Link 500,000 smallholder farmers globally into
our supply network by 2020
3
Sustainability report 2012
2011 RESULTS (INDONESIA)
2012 RESULTS (INDONESIA)
1,404,000
4,957,000
1,110,000
1,910,000
17,571
19,429
persons
persons
million m3
(saved water)
22,000
small holders
persons
persons
million m3
(saved water)
24,000
small holders
4
our approach to sustainability reporting
Sustainability report 2011-2012
OUR APPROACH TO
SUSTAINABILITY
REPORTING
This is the third Sustainability Report produced by PT
Unilever Indonesia Tbk (Unilever Indonesia). It covers our
responsibilities to our stakeholders and the contributions
we have made to sustainable development.
About this Report
Unilever Indonesia commissioned a comprehensive
stakeholder analysis and materiality tests in order to
identify and highlight major issues of interest to our
stakeholders and develop an approach to reporting on
these issues.
This Report is consistent with our Annual Report and
our previous Sustainability Report. It continues to
feature the Disclosures on Management Approach
(DMA), which provides information on the nature of our
business in each area of the Global Reporting Initiative
(GRI-G3) Guidelines. Our strategies, achievements
and future plans for sustainability management are all
aligned with these guidelines, particularly in the areas
of sustainable environmental management, community,
social contributions, ethics and corporate culture. Where
company wide information is not fully available, we have
provided performance data and case studies which are
representative of our general approach.(3.7)
We remain committed to providing detailed disclosures
with appropriate indicators and clear performance
trends. In this Report we have also tracked data on our
performance to date and evaluated our progress towards
achieving our targets.
Our transparency efforts are not limited to this Report.
Other material issues, such as Corporate Governance
and detailed data on our internal operations and business
activities, have been reported elsewhere, such as in our
Annual Report, and this information is not repeated here.
The Unilever Indonesia Sustainability Report covers our
entire organization in Indonesia which also includes the
Yayasan Unilever Indonesia (YUI) and other significant
subsidiaries which includes quantitative and qualitative
data from January 1, 2011 to December 31, 2012. Some
indicators are partial and only relate to certain divisions
or activities; this is indicated in the text. However any
restatements of information which was also present in our
previous report is only for updating reasons. Compared
to the previous reporting period, there are no significant
changes in the scope, boundary or measurement methods
applied (3.1,3.6,3.7,3.8,3.10, 3.11)
Our Sustainability Reports, which are produced
biennially, refer to the GRI-G3.1 Guidelines and the
Unilever Sustainable Living Plan and provides continuity
from our previous report published in May 2011. The
reliability of the information disclosed in this Report
has been assessed by Mazars. Their conclusions are
presented in their Independent Assurance Statement,
which can be found on page 88. A GRI Index table has
also been placed on page 91 for quick reference on our
sustainability performance. In our opinion this report
complies with B+ of GRI Application Level System as
stated in the Independent Assurance Statement above.
However, we also have requested a third party application
check conducted by Mazars to verify our declaration.
(3.2, 3.3, 3.9, 3.12, 3.13)
The report is published in English and Indonesian and
is available to all stakeholders in hard copy on request.
It can also be downloaded from our website. For further
information and comments please contact (3.4):
Sinta Kaniawati
General Manager Unilever Indonesia Foundation
PT Unilever Indonesia Tbk / Yayasan Unilever Indonesia
Graha Unilever, Jl. Jend Gatot Subroto Kav. 15 Jakarta
12930 Indonesia
Tel: +62 21 526 2112 E. [email protected]
Or visit:
www.unilever.co.id (3.12)
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Materiality ISSUES
1
3
High
4
10
7
5
8
9
15
18
11
6
12
13
Medium
23
19
16
20
14
21
Low
Important for the Stakeholders
22
17
24
Low
Medium
Important for the Company
High
2
1
Product Information/Labeling
2
Responsible Marketing
3
Customer Satisfaction
4
Occupational Health and Safety
5
Training and Development
6
Employee rights
7
Community Empowerment
8
Waste Management
9
Customer Care
10
Improvement in Living Condition
11
Microbead Reduction
12
Contribution and Donation
13
Supplier Development
14
Sustainability Criteria in Supplier Selection
15
Remuneration and rewards
16
Carbon Emission Mitigation
17
Outsourcing
18
Nutritional Improvement
19
Recycled Packaging
20
Equal Opportunity
21
Carbon Footprint Management
22
Diversity and Human Rights
23
Electricity energy consumption and fuel oil
24
Animal Testing
6
Materiality and Determining our Content
More than an instrument for determining the themes
that the organization should prioritize in the reporting
process, the materiality matrix helps to integrate the
sustainability strategy with the demands of internal
and external stakeholders. We have recently developed
this matrix which has been based on stakeholder forum
discussions, actions, consultations and studies. In
order to develop this matrix we have used the following
sources:
• Face to face encounters with suppliers, specialists from the marketing, consumer, environmental
management and fair trade areas), NGOs, and
Consumers
• Face to face meetings with employees and
representatives from the Trade Union (SPSI)
• Yayasan Unilever Indonesia Reports
• Unilever Sustainable Living Plan (3.5)
Stakeholder Engagement
Listening to others and learning from our stakeholders
informs our decision-making, strengthens our
relationships and helps us deliver our commitments
and succeed as a business.
Our approach
Many of the issues the Unilever Sustainable Living
Plan seeks to address fall outside our direct control,
so we need to engage governments and many others
to create an environment that is supportive of meeting
the big health and sustainability challenges the world
faces. Reaching our Plan’s targets depends on good
relationships with a range of people and organisations
that have a stake in our business.
With some, such as our customers, employees, suppliers
and investors, the relationship is based on direct contact
or financial involvement with the business. Others, such
as governments and regulators, local communities,
civil society organisations, academics and individual
concerned citizens, have a wider interest in what we do
and in our impacts on society as a whole.
Across all our activities we seek to engage with
stakeholders to help us reach our Sustainable Living
Plan targets, identify issues of concern, guide our
strategy and reporting and provide feedback on
specific areas of activity. Working in partnership is
crucial in developing and delivering some of our major
commitments.
How do we address issues?
Engaging with our stakeholders is a critical part of the
way we manage issues across our business. We have
put in place a governance model to manage issues and a
crisis prevention and response model.
Our issues management system has three building
blocks:
• monitoring and listening;
• planning for potential impacts;
• and acting fast but thoroughly and in a coordinated way.
We assess issues on the basis of their potential impact
on our brands; our business and reputation; and
the probability of occurrence. Our assessment will
increasingly be guided by the commitments in our
Sustainable Living Plan.
7
How do we engage with our stakeholders?
The variety of our relationships means we engage with
our stakeholders in different ways, depending on the
nature of the interest, the relevance to the business and
the most practical way to meet stakeholders’ specific
needs and expectations.
Inspiring people to change their behavior is central to
the success of our Sustainable Living Plan. For example
we need to encourage people to wash their hands with
soap at the right times or wash their clothes at lower
temperatures. Our brand teams are in continuous
conversation with our consumers to understand their
diverse tastes, needs and trends. We operate consumer
care lines, provide information about our business,
brands and their campaigns through many websites,
and conduct detailed consumer research to understand
people’s habits and attitudes.
With other stakeholders, for example local governments
and civil society organizations, our operating companies
and specialists in areas such as nutrition, have regular
meetings, participate in research projects, surveys and
symposia, and contribute to public policy and special
interest group debates.
Decisions to engage are made at local, regional and
global levels, and the results provide information for our
business decision-making. We focus on issues in which
we can make a meaningful contribution.
Generally, we find that constructive dialogue, including
with those who may hold critical views, helps our
understanding of the dilemmas we face in running a
business that is seeking to always be responsible and
sustainable.
8
president director statement
president
director statement
9
Unilever firmly believes in the need to invest in
Another challenge is ensuring the availability and the
sustainability in order to achieve its growth objectives.
sustainability of our agricultural raw materials as we
The Unilever Sustainable Living Plan (USLP) published in
grow our business. We aim, for instance, to source all
October 2010 is the company’s public global commitment
tea from Indonesia to be Rainforest Alliance certified
to achieving a wide range of specific sustainability
by 2015. Farmer income and community development
targets. With the USLP, Unilever aims to help more
are important elements of sustainability in agriculture.
than a billion people take action to improve their health
We are strengthening farmer co-operatives and we
and well-being, halve the greenhouse gas emissions,
partner with banks institutions to facilitate credit for
water consumption and waste of the making and use of
seeds procurement. We are also providing trainings and
its products and enhance the livelihoods of more than
carrying out pilot projects to help farmers increase the
500.000 farmers and distributors in its supply chains
yield of coconut sugar production by 20%. (SO1)
around the world. We aim to obtain our most important
raw materials from 100% sustainable sources within the
At Unilever Indonesia, we made good progress towards
next two to seven years.
our sustainability goals in 2011 and 2012 as part of
our share of Unilever’s global targets. In 2012, three
Unilever’s vision is that companies must be part of the
years ahead of schedule, we managed to achieve our
solution for the sustainability challenges that our earth
target or using only palm oil certified by the Roundtable
faces. Unilever as a good corporate citizen has to play a
on Sustainable Palm Oil (RSPO). With several energy
role in addressing these challenges. At the same time,
efficiency initiatives in place in our operations, we
our company is convinced that these challenges provide
managed to largely achieve our energy and greenhouse
many new opportunities that can and must benefit the
gas emission reduction targets.
environment, society and the company. Consumers
increasingly prefer products that have been produced
Our policy is to maximize local sourcing. We have
responsibly. Product and packaging innovations help us
stepped up efforts to source more of our raw materials
make more valuable products at the same price level.
locally, for example by fostering new coconut sugar
Savings in energy and raw materials reduce our cost, and
suppliers in Sulawesi, and we continue to promote and
a growing number of talented people choose to work for
support sustainable agricultural practices among our
responsible companies.
local suppliers. We have started to encourage suppliers
from outside Indonesia to set up production facilities in
Unilever Indonesia faces challenges in the sustainability
Indonesia, in order to reduce the need for transportation
environment in Indonesia in the coming three to five
of our supplies. In the coming years, we also seek to
years. The availability of clean water, especially in large
source more fresh fruits in Indonesia.
cities like Jakarta, is one of them. We have been actively
campaigning for water conservation on at least two
With a number of initiatives we conducted in the past
fronts: by product innovation, and by demonstrating
two years, converting to gas fuel, we have reduced our
how to save water when using our products. To reduce
SOx emissions per tonne of production by one third.
the use of water for bathing, cleaning and washing with
We are also replacing all ice cream cabinets that use
our products, we are developing products that help
ozone depleting CFCs with ice cream cabinets that use
consumers change their habits in a convenient way. One
environmentally friendly hydrocarbons.
example is the launching of our new innovative product
“Molto One Rinse”. This product reduces the amount of
water needed for laundry by two thirds.
10
president director statement
One of the most significant achievements in 2012 was
In 2012, we started to provide health and waste collection
the award of the Gold ‘PROPER’ rating for our Rungkut
facilities to traditional markets, and we aim to expand
factory. The PROPER rating system is used by the Ministry
this program to all our sales areas in Indonesia in the
of the Environment to assess companies’ environmental
coming years. Healthy and hygienic markets are a clear
compliance and social responsibility performance; the
example of a mutual benefit we share with our traders,
Gold rating means that we have consistently demonstrated
who account for half of our sales.
all-round environmental excellence, ethical business
practices and social responsibility. Our Cikarang factory is
We are also taking responsibility for our part of the waste
currently rated ‘Green’; this is the second-highest grade,
problem in Indonesia and anticipate new regulations
indicating that it has gone beyond compliance in terms of
in this area. We are expanding our work in reducing,
environmental performance, efficient resource use and
reusing and recycling waste from packaging. With
social responsibility.
trainings in our Trashion project and our support to
the Waste Banks, we have a high and easily replicable
Among the many awards we received, was the award
positive impact on waste collection. A challenge we
for “Best Corporate Social Responsibility” from Finance
will address in the coming years is the reduction of
Asia in 2011 and the 2011 Indonesian Millennium
waste from small sachets, which we aim to convert into
Development Goal Award by the Indonesian government
recycled plastic or energy.
for our women empowerment program which we
received in 2012.
To ensure the sustainability of our business we must also
run the business itself responsibly and with a high degree
We aim to reach 100 million people in Indonesia with
of integrity. In 2012 we gave more rigorous attention to
our programs in the area of health and well-being. We
improving the application of good corporate governance
expect to reach this target by 2015, five years ahead of
principles throughout the company. We are embedding
our original target. In 2012, we exceeded our targets
best practices and stronger controls in all our business
in promoting good hygiene through a much expanded
processes and at every point in the supply chain.
Global Hand washing Day campaign and by leveraging
the 21 Days Programme. This programme aims to
embed hand washing as a lifelong habit by encouraging
children to wash their hands at five key moments for 21
consecutive days.
11
Our labour relations continue to be stable and our
co-operation with the labour union in our company is
constructive. Since the end of 2012, we comply with the
new outsourcing regulations by having all people in our
company either work as permanent employees or on
a direct contract. We will also continue to invest in the
productivity of all our employees to ensure that we remain
competitive as wages in Indonesia rise and the markets in
Asia open up further to international competition.
Most of our brands, such as Lifebuoy, Pepsodent and
Bango have a strong social mission and a brand purpose,
which include one or more of what we see as our key
sustainability issues in the coming years. Our customers
are recognizing this and are rewarding us with very good
growth in stable segments.
Unilever Indonesia will continue to be a leader in
sustainability in Indonesia that demonstrates how
people, planet and profit can prosper together. Our
suppliers and distributors, NGOs, governments, and our
other stakeholders acknowledge and appreciate our
leading role and we want to continue and where possible
expand our partnership with them.
This will ensure a continued profitable growth for our
company that meets our objectives, and above all, helps
us all to live more sustainability. (1.1)
For and on behalf of the Board of Directors
Jakarta, 22 May 2013
MAURITS DANIEL RUDOLF LALISANG
President Director
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ABOUT US
ABOUT US
Established on 5th
December 1933, Unilever
Indonesia has grown to
be a leading company
of Home and Personal
Care as well as Foods
and Ice Cream products
in Indonesia. Unilever
Indonesia’s portfolio
includes many of the
world’s best known and
well loved brands, such as
Pepsodent, Pond’s, Lux,
Lifebuoy, Dove, Sunsilk,
Clear, Rexona, Vaseline,
Rinso, Molto, Sunlight,
Wall’s, Blue Band, Royco,
Bango (2.2)
13
The Company offered its shares to the public in 1981 and
Unilever Indonesia Holding B.V., The Netherlands
has been listed on the Indonesia Stock Exchange since 11
holds 6,484,877,500 shares with a nominal value of
January 1982.
Rp 64,848,775,000, or 85%, of the shares of Unilever
Indonesia. The public holds 1,145,122,500 with a nominal
The Company owns six factories in Jababeka Industrial
value of Rp 11,451,225,000 or 15% of the shares of PT
Estate, Cikarang, Bekasi and two factories in Rungkut
Unilever Indonesia Tbk. (2.6)
Industrial Estate, Surabaya, East Java. Its products
consist of about 43 key brands and more than 1,000 Stock
The PT Unilever Indonesia Tbk. (2.1) has one subsidiary:
Keeping Units (SKUs) which are sold through a network
PT Anugrah Lever (in liquidation). Up to August 2012 we
of about 644 independent distributors (429 in 2011)
owned 51% of PT Technopia Lever. (2.3)
covering hundreds of thousands of outlets throughout
Indonesia. Products are distributed through its own central
distribution centers, satellite warehouses, depots and
other facilities.
14
ABOUT US
Organisation Structure
Maurits daniel rudolf lalisang
President Director
FRANKLIN
CHAN GOMEZ
vishal gupta
DEBORA HERAWATI
SADRACH
AINUL YAQIN
IRA NOVIARTI
Chief Financial Officer
Director
Home Care
Director
Personal Care
Director
Foods
Director
Ice Cream & Marketing Service
- Finance and
Accounting
- Corporate
Management
- Commercial
Home Care
- Marketing Home
Care
- Commercial
PERSONAL Care
- Marketing
PERSONAL Care
- Commercial
Foods
- Food solutions
Business Unit
Accounting
- Marketing Foods
- Business System,
IT & ERP
- Legal Services
- Commercial Ice
Cream
- Marketing Ice
Cream
- Marketing
Services
• CMI
• CCM
• CAS
15
RAMAKRISHNAN
RAGHURAMAN
HADRIANUS
SETIAWAN
ENNY Hartati
SAMPURNO
SANCOYO
ANTARIKSO
AKHMAD SAEFUL
Director
Supply Chain
Director
Customer Development
Director
Human Resources
Director External Relations &
Corporate Secretary
Internal Audit
- Corporate
General
Affairs
- HR Business
Partners
- Industrial
Relations
- Experties Team
• Talent
• Learning
- Remuneration
- Service Delivery
Centre
- Medical Services
- Corporate
Communication
• Internal
Communication
• Media Relations
• External Affairs
- Unilever Indonesia
Foundation
• Enhancing
Livelihood
• Public Health &
Education
• Environment
- Investor Relations
- Commercial
Supply Chain
- Customer
Services
- Supply
Management
- Quality
Assurances &
Environment
- Supply & Demand
Planning
- Engineering &
Safety
- Manufacturing
- Logistics
- Activation
Implementation
Management
- Sales
Operations
- Customer
Marketing &
Trade Category
Management
- Commercial
Customer
Development
- Customer
Development
Management
16
ABOUT US
Unilever Indonesia’s headquarters are in Jakarta, where we have three offices that house our corporate departments,
our consumer advisory services, customer services and key account management.
Unilever Indonesia employs just over 6000 people in the company’s offices, factories, distribution centres and points of
sale (supermarkets, drugstore chains, convenience stores etc) (2.3, 2.4, 2.8)
All of Unilever Indonesia’s Operations are in Indonesia (2.5)
Size of the Organization (2.8)
PERIOD
2012
No of employees
2011
2010
6,447
6,027
4,796
Net Sales (Rp billion)
27,303
23,469
19,690
Total Capitalization
(Rp billion) :
11,984
10,482
8,701
8,016
6,801
4,652
- Liabilities
- Equity
Total assets (Rp billion)
3,968
3,680
4,048
11,984
10,482
8,701
Significant changes in company
structure, size, ownership and
management in 2011 and 2012
Categories and Brands in Indonesia
Unilever Indonesia has three product categories, Foods
and Beverages, Home Care and Personal Care, and a
number of brands in each category: (2.2)
In 2011, we opened a new Dove soap factory in Surabaya
and the Wall’s ice cream and Skin Care factories in
Cikarang were expanded. Following PT Sara Lee Body
Care Indonesia Tbk’s acquisition by Unilever Indonesia
Holding B.V., the Company is appointed to market its
brands in Indonesia. No changes in capital structure
or other capital formation, maintenance of alteration
operations took place in 2011 and 2012. (2.9)
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Foods and Beverages
Bango is one of Indonesia’s leading soya sauces,
made of selected high quality black soy beans, coconut sugar,
salt and water without any preservatives or additional chemical
ingredients. With Festival Jajanan Bango we help hawkers selling
traditional delicacies to promote their dishes and with the TV
program Bango Cita Rasa Nusantara, we explore and make
famous traditional heritage dishes across Indonesia.
Blue Band is a legacy brand that adds nutrients to our daily food,
containing 6 vitamins. Blue Band Gold contains twice the essential
fatty acid (omega 3 & 6)* and 9 vitamins to help children’s growth
and improve cardiovascular health.
Royco is our brand name for a range of seasoning products and
soups that make home cooking easier.
Sari Wangi is Indonesia’s leader in the tea bag segment,
reinforcing the important social function of tea drinking and
helping to revive leaf tea production in Indonesia.
Wall’s is a range of ice cream products that add moments of fun to
everyday life, as well as portions of calcium.
Buavita is our range of juices made from fresh fruits, rich in
vitamin C and without preservatives.
Unilever Food Solutions provides ingredients and services as
well as insights and inspiration for healthy ideas menus and
kitchen operations.
18
ABOUT US
Home Care
CIF is a multipurpose cleaning liquid consisting of detergent and
micro-particles, to clean up stains in the kitchen, bathroom and
other parts of the house.
Domestos Nomos Protector is mosquito repellent incense.
Pureit is a home installation that purifies water into germ-free
and safe drinking water, without electricity or gas, and at a lower
cost per liter than bottled water, refilling or boiling.
Rinso is leader in Indonesia’s detergent market, making laundry
effective and easy and unleashing people’s freedom to get dirty
clothing.
For 20 years, Sunlight liquid has been the biggest dishwashing
liquid brand in Indonesia
Vixal is a porcelain cleanser liquid that helps remove stains on
the toilet, porcelain, ceramic, mosaic, or other surfaces.
Wipol is a fragrance carbolic floor cleaning product containing
active pine essential oil, effectively killing germs and removing
any odor.
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PERSONAL CARE
Axe is the number one male fragrance brand in Europe and Latin
America, with increasing presence in the US and Asia. In Indonesia, Axe is
the leader in the male fragrance deodorant body spray segment.
Citra is a brand that embodies the natural Asian beauty. It covers a
range of hand and body body lotions and face moisturizing creams, and
has extended to a range of skin cleansing bar soaps, liquid soaps and
body scrubs.
Clear provides shampoos, conditioners, stylings and tonics that actively
help keep scalp healthy and free of dandruff.
Dove is a range of body care products, comprised of shampoo,
body cleansing, body lotion and deodorant containing the unique ¼
moisturizing cream. Dove Lightening Deodorant, cares for underarm
skin irritation due to frequent hair removal, and lightens the colour of
underarm skin.
Lifebuoy is one of Unilever’s oldest brands, providing affordable and
accessible hygiene and health solutions with bar soaps, hand wash
liquids and liquid shower gels.
LUX is our range of beauty soaps and shower gels with high-quality
fragrance created by world class experts.
The face care range of Pond’s provides oil control, lightening and antiageing care for the female skin.
Under our brand name Vaseline, we market a number of moisturizing,
nourishing and protective skin care liquids, as well as face and body care
for men.
20
ABOUT US
PERSONAL CARE
The Zwitsal Baby product range has been tested Hypo-Allergenic, and
is therefore safe for the sensitive baby skin. The products contain mild
formulation and are enriched with natural ingredients, which help keeps
the baby’s skin and hair moisturized and well-cared for.
Rexona is the world leader for deodorants for women and men. It is
available in various formats: roll-on, sticks, aerosol, lotion, and soft
solid. It gives the users all-day confidence by keeping underarms dry
and odour-free
Pepsodent is the oldest and most well-known toothpaste in Indonesia
and the only paste in Indonesia that actively educates and promotes
proper habit of brushing through school program and free dental check
up service.
She consists of three categories of scents for teen girls: Spray Cologne,
Splash Cologne, and Talcum Powder
Sunsilk is our range of shampoos, conditioners, and styling products for
women which is co-created with world hair care experts.
Tresemmé, the youngest brand in our hair care portfolio, offers a
professional hair care range of shampoos, conditioners, stylings and
treatment products, to give salon beautiful hair every day.
21
Unilever produces these products in its own factories
In 2011, the company booked Rp23.5 trillion in net sales,
and those of local partners, and markets them through
a growth of 19.2% compared to 2010. In 2012 net sales
distributors and retailers. (2.2)
amounted to Rp27.3 trillion.
With our brands, we serve markets in two main
In 2011, the company had Rp10,482 billion in assets, with
segments: Home & Personal Care (around 73% of our
Rp6,801 billion in liabilities and Rp3,677 billion in equity. In
sales) and Foods and Beverages (around 27% of our
2012, the company had Rp11,984 billion in assets, with Rp
sales) in 2011 and 2012. (2.7)
8,016 billion in liabilities and Rp3,968 billion in equity. (2.8)
Unilever Indonesia’s focus is on the Indonesian market,
and 99% of our product range is produced in Indonesia.
A small portion of our products is exported, mainly to
countries in Asia and Africa. We source products from
Asia, Africa and Latin America. (2.5)
Locations of Our Factories
kalimantan
sumatera
Rungkut
factories
Subang
INDONESIA
JAVA
Jakarta
Head Office
Indonesia consists of 18,000 islands
Cikarang
Factories
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ABOUT US
The Mission of Our Brands
preventable deaths, particularly among children, every
All of our brands play an important role in the daily life
year. This is why, through our Lifebuoy and Pepsodent
of people and in their health and well-being. They also
social missions, we are working with primary schools,
use considerable natural resources. All of our brands
early childhood programmes and maternal and child
therefore have a mission aimed at maximizing positive
health clinics to educate communities and embed good
impacts on people’s lives and communities, whilst
hygiene habits at an early age.
minimizing any negative impacts on our environment.
The missions of our brands are an integral part of our
Nutrition is one of the most important factors in ensuring
sustainability policy.
the healthy mental and physical development of young
children. As millions of people nationwide enjoy our
With a strong presence in the market and our close
foods and drinks, we have an excellent opportunity,
relationship with consumers across the country,
through our brands, to help people understand the
Unilever Indonesia is ideally positioned to deliver
nutritional benefits of our products and how to ensure
messages and promote actions that contribute to a
they and their families have a balanced diet with all the
healthier, more fulfilling lifestyle. Using our best-
nutrients they need.
known brands as a banner for such initiatives allows
them to be more readily embraced by consumers
Pureit is a brand that has an environmental mission
and customers, and enables us to make an impact on
as well as health and nutritional benefits. Pureit is an
issues that affect society as a whole. Our brands’ social
affordable household water purification system that
missions can be divided into two broad groups: Health,
effectively removes all harmful bacteria, pesticides and
hygiene & beauty, and Nutrition.
parasites from tap water, leaving it safe to drink without
the need to boil it. Using a simple carbon filtration
Promoting good hygiene is an overriding priority for the
country. The simple measure of proper hand washing
with soap at key times could help to prevent diarrhea
and other infectious diseases that cause thousands of
system, Pureit needs neither gas nor electricity.
23
BRAND
MISSION
Bango
Preserving the culinary heritage of the Archipelago and enhancing
the livelihood of black soy bean farmers
Blue Band
Every child has the right to good nutrition
SariWangi
Inviting Indonesian women to communicate openly and equally
with their partners through quality tea moments
Sunsilk
Inspiring Indonesian women to discover their natures and
strengths to give the best for themselves and to benefi t the people
around them, and inspiring drop-out teenage girls to unleash their
potential to be independent and enjoy the same opportunity as
their fortunate peers who continue schooling
Dove
Making women feel beautiful every day
Lifebuoy
Making 220 million Indonesians feel safe and secure by improving
their health and hygiene needs
Citra
Empowering Indonesian women
Molto Ultra Sekali
Encouraging Indonesian families to shift their paradigm of water
Bilas
use, to conserve energy and save the environment
Pepsodent
Improving people’s oral health so that they can better enjoy their
life
Rinso
Helping Indonesian children learn and develop by encouraging
them the freedom to experience life without fear of getting dirty
Sunlight
Empowering Indonesian women to contribute more to their
family and community, by equipping them with a series of useful
trainings and workshops that enrich their knowledge and skills
24
sustainability governance
SUSTAINABILITY
GOVERNANCE
Sustainability Strategy
and Governance
PT Unilever Indonesia,
Tbk as a subsidiary
of Unilever group, is
a private company in
Indonesia and is listed
on the Indonesian
Stock Exchange. It is
our responsibility as
the company’s second
largest operation
worldwide to develop
structures
that ensure
transparent
management,
accountability
and best
governance
practices in all
the bodies that
are responsible
for local
management
of the business.
(2.1, 2.6)
25
Vision, Values and Principles (4.8)
Because Unilever’s products touch the lives of around 2
billion people world wide, the company has set a vision
3. Inspire people to take small everyday actions that can
add up to a big difference for the world.
4. Develop new ways of doing business with the aim of
and values to sustain its existence. Unilever has paved
doubling the size of the company while reducing its
a clear direction for where it wants to go and how it can
environmental impact.
be achieved it by following the four pillars of its vision
which are:
Unilever has formulated the Unilever Sustainable Living
1. Work to create a better future every day
Plan, which includes specific sustainability commitments
2. Help people to feel good, look good and get more out
and targets for its global operations. At Unilever
of life with brands and services that are good for them
Indonesia, we aim to contribute our share to achieving
and good for others
these targets.
26
In order to succeed with the vision of Unilever we have
Responsibility
also set our Purpose and Principles which can be
We are committed to responsibility because we want to
looked at as our values. Our corporate purpose states
take care of our consumers, customers and employees,
that to succeed requires “the highest standards of
as well as the environment and the communities in which
corporate behaviour towards everyone we work with, the
we operate. We take this personally and always do what
communities we interact with, and the environment on
we say we will do.
which we have an impact.”
Pioneering
Our Values
We are committed to the pioneering spirit because it
created us and still drives us as a business. It gives us
Integrity
the passion for winning and for creating a better future. It
We are committed to integrity because it creates our
means that we are always willing to take intelligent risks.
reputation, so we never compromise on it. It defines how
we behave, wherever we are. It guides us to do the right
thing for the long-term success of Unilever.
Respect
We are committed to respect because people should be
treated with dignity, honesty and fairness. We celebrate
the diversity of people, and we respect people for who
they are and what they bring.
27
Code of Business Principles
The main document for the orientation of both the
personal and business conduct of our employees is
the Code of Business Principles. The code sets forth
principles of corporate behavior, incorporating values
such as honesty, integrity, ethics, legal compliance
and respect for human rights. It seeks to guarantee
transparent communication and compliance in our
operations and negotiations throughout the business
chain. See the full text of our Code of Business
Principles at http://www.unilever.co.id/aboutus/
goodcorporategovernance/corporateethics/Index.aspx
Whistleblower Mechanism
Unilever Indonesia has put in place a whistleblower
mechanism for reporting any breach or suspected
breach of the Code of Business Practice or any other
ethics violations. Employees can report violations either
directly to their line managers or to the Blue Umbrella
team, which comprises of the Human Resources, Legal,
Internal Audit and Communication departments and
is headed by the Human Resources Director. Upon
receiving a report, the Blue Umbrella team appoints
and assigns a team to investigate the issue. Appropriate
action will be taken in respect of any proven ethics
violation. All such reports are recorded in a system that
can be accessed by Unilever Regional and Global offices.
28
Unilever Indonesia is also a Indonesia Global Compact
the company to other parties and other parties to the
Network Signatory since 2009 and most of our Code of
company; and to perform any and all actions, pertaining
Business Principles are consistent with the UN Global
both to management as well as other affairs, within the
Compact Principles. We report on these principles through
boundaries set by the Articles of Association.
our annual report and sustainability report. (4.12)
In the Board of Directors, the Corporate Secretary
Unilever Indonesia’ Governance
Structure
plays a key role in communicating information and
Unilever Indonesia is governed by three principal organs
ensuring compliance with the Company Law, the Articles
– the General Meeting of Shareholders, the Board of
of Association, capital market regulations and other
Commissioners and the Board of Directors. They work
statutory obligations. He also maintains communications
together with various supporting bodies to implement
with regulatory institutions on all governance matters,
good corporate governance in the company.
corporate actions and relevant material transactions.
promoting transparent business activities and in
He provides up to date information about the company
Our Board of Commissioners acts as an independent
to shareholders, media, investors and the general
supervisory and monitoring body which oversees and
public and attends alls Board meetings and records the
supervises the Board of Directors in its management
minutes of the proceedings of the meetings. The Board of
to ensure the long-term interests of the company. As
Directors reports directly to the Board of Commissioners.
prescribed in the Articles of Association, the Board of
committees under its supervision in the form of reports
The Board of Directors and Board
of Commissioners are supported by
various other bodies
and meetings, and advises the Board of Directors on
This includes the Audit Committee, which works
management issues. The Board of Commissioners
to control risk, maintain supervision and preserve
is accountable to the Annual General Meetings of
accountability within the Company. It supports the
Shareholders, which also has the authority to entrust the
oversight function of the Board of Commissioners by
Board of Commissioners with other duties from time. The
reviewing and providing assurance on the integrity
Board of Commissioners also considers the interests of
of Unilever Indonesia’s financial statements, risk
our major stakeholders. Four of the five members of the
management and internal control, compliance with legal
Board of Commissioners are independent. There are no
and regulatory requirements, the external auditor’s
women in the Board of Commissioners at the moment.
performance, qualifications and independence, and the
The Board of Commissioners receives regular reports
implementation of the internal audit function. The Audit
from the Board of Directors and advises also on relevant
Committee consists of three members and is chaired
matters as stipulated in the Articles of Association.
by one of the Independent Commissioners. Members
Commissioners exercises oversight through regular
communication with the Board of Directors and the
of the Audit Committee are appointed and dismissed by
The Board of Directors consisting of ten directors,
the Board of Commissioners and report to the General
of which three are women, is responsible for the
Meeting of Shareholders.
management of the company and for setting the strategic
direction of the company, and for managing the company
The procedure for the appointment of new directors
in line with the objectives of the company. The Board of
and senior management personnel is formal and
Directors is also authorized to represent the company
transparent. The Nomination and Remuneration
on any matter, including in a Court of Justice, to bind
Committee is responsible for succession planning
29
and for proposing candidates for membership of the
Commissioners. The Internal Audit Unit is responsible
Board of Commissioners, the Board of Directors, and/
for following up the audits to ensure that management
or various other Committees. The Committee evaluates
actions have been effectively implemented or that senior
candidates and makes recommendations to the Board.
management has accepted the risk of not taking action.
The Committee is also responsible for reviewing and
It also assists management to comply with the Sarbanes-
formulating recommendations on the remuneration
Oxley Act, particularly section 404 for the purpose of
package for the BoC and BoD as appropriate to their
the parent company’s reporting. Full responsibility for
rights and responsibilities. The Committee provides
compliance remains with the management. The Internal
recommendations to the Shareholders for approval at
Audit Unit also coordinates with the External Auditor
the Annual Meeting of Shareholders. The Nomination
on its audit of our financial statements. All members of
and Remuneration Committee consists of the Chairman
the Internal Audit Unit agree to comply with Unilever’s
and one other member of the Board of Directors, and the
Code of Business Principles. The External Auditor, which
Chairman of the Board of Commissioners.
provides an independent audit of the Company’s financial
statements, is appointed by the Board of Directors and
The Annual General Meeting of Shareholders is the
Board of Commissioners at the recommendation of the
company’s highest governance body. It has the authority to
Audit Committee. (4.1)
appoint and terminate the Commissioners and Directors,
and decides on other critical matters pertaining to the
Upon election, the directors receive a comprehensive
company’s business and operations including the amount
Manual and are briefed thoroughly on their
of the Directors’ and Commissioners’ remuneration,
responsibilities. Directors are expected to develop
the payment of dividends and distribution of profits, the
themselves and their skills in service of the company.
approval of the Annual Report, the appointment of the
(2.3) (4.1,4.2,4.3)
independent auditor, amendments to the Articles of
Association, and the delegation of authority to the Boards
Risk Management
to follow up matters discussed and agreed at the Annual
The Corporate Risk Management Committee assists the
General Meeting of Shareholders.
Board in ensuring that effective, up-to-date systems for
risk management are in place. We have identified and
Another key body is the Internal Audit Unit which is
assessed the risks relevant to our business. The most
led by the Head of Internal Audit assisted by a number
important of these are outlined below, together with the
of internal auditors, and governed by the Internal
associated mitigation measures.
Audit Charter. This charter specifies the structure of
the Internal Audit Unit and outlines the duties and
Operation Risk addresses our capability to secure timely
responsibilities of the internal auditors. The Internal
and cost-effective supplies of production materials. With
Audit Unit is responsible for preparing an annual audit
forward buying of traded commodities, we mitigate future
plan in consultation with the President Director and
price volatility of traded commodities. Contingency plans
the Audit Committee, and is required to communicate
have been prepared to enable us to secure alternative key
frequently with the Board of Commissioners, Board of
material supplies at short notice and to use substitute
Directors and the Audit Committee on its execution.
materials in ourproduct formulations and recipes.
Upon the conclusion of each audit, the Internal Audit Unit
produces a written report on the findings, conclusions
Market Risk management monitors market trends and
and recommendations and presents a summary of
insights from consumers to anticipate the position of
the same to the President Director and the Board of
local and international competitors to capture a larger
30
share of the growing market in Indonesia. The company
Public Policies
focuses on categories and products where the company
Our relations with government occur in two ways:
or its parent have, or can build, a competitive advantage,
through sector associations representing our personal
and where sales and margins can be grown consistently.
care, home care and foods business or directly, in
dialogues between the Unilever Indonesia management
People and talent management ensures that our
and public authorities. Our actions vary in accordance
company continues to attract, develop and retain talented
with the theme and its importance, but the majority of
employees. Resource Committees have been established
our participation is through sector associations such
in each of the divisions and functions. These Committees
as the Association for Food and Beverage Products
are responsible for identifying future skill and capability
(Gabungan Pengusaha Makanan dan Minuman
needs, defining career paths and professional training
Indonesia - GAPMMI), Association of Priority Lane
programmes, ensuring competitive pay in comparison to
Companies (Asosiasi Perusahaan Jalur Prioritas
the market, as well as identifying key talent and future
- APJP), and the Association of Indonesian Cosmetic
leaders. Surveys are conducted regularly to obtain
Industries (Persatuan Perusahaan Kosmetik Indonesia –
feedback from the employees.
PERKOSMI). (SO5, 4.13)
The risks reviewed by the Corporate Risk Management
We also work in close relationship with the Indonesian
Committee include risks related to sustainability.
Ministry of Trade and the Ministry of Industry in
promoting local products by taking part in various
Our Board of Directors regularly meets with the
exhibitions in the country. We have not received any
representatives of our labour union to inform them about
financial support from any governmental agencies, nor
major decisions and developments that may have an
do we offer any financial support to the Government or
important effect on our employees.
any political organizations. (SO6)
31
Unilever Sustainable Living Plan
Over the last three years there has been a definitive change in Unilever’s approach to its business model and growth
strategy. With the announcement of Unilever’s Sustainable Living Plan in 2010, we consolidated the vision that we canand should grow business and our operations while reducing environmental impact. The Unilever Sustainable Living
Plan encompasses action and projects with partners, employees and stakeholders in three areas: Improving Health and
Well-Being, Reducing Environmental Impact and Enhancing Livelihoods. (see chart). Our ambition is to double the size
of our business globally, whilst reducing our negative impacts and increasing our positive impacts in accordance with
specific targets. More details on the USLP are provided on www.sustainable-living.unilever.com
!
Sustainability Governance
This is a cross functional committee comprising of
With the introduction of the Unilever Sustainable Living
eight leaders the Executive Board. The committee
Plan (USLP) in 2010 and the evolution of the company’s
also develops local sustainability policies, oversees
governance in sustainability, Unilever Indonesia needed
the Sustainability Compass, serves as a two way
to develop a team that would be responsible for the
communication channel for sustainability related
governance of sustainability and disseminating the Global
questions and develops a communication engagement
Sustainable Living Plan throughout the company with the
plan aimed at the company’s stakeholders.
scale and complexity of the goals and targets, Unilever
Indonesia established a special committee in 2011, the
USLP Leadership Steering Team.
32
The implementation of the USLP and the achievement
The programs aimed at Enhancing Livelihoods, such as
of the targets set for Indonesia, is managed by the USLP
the partnership with the black soybean farmers managed
Leadership Steering Team, which is led directly by our CEO.
by the collaboration of Enhancing Livelihood Pillar and
Supply Management Division that report to the member
The governance of the USLP, including the management
of the Board of Directors.
of the scorecard and the reporting on the progress
towards achieving the objectives, will take place under
More details on our activities that are related to the
the supervision of member of the Board of Directors,
Unilever Sustainable Living Plan are given elsewhere in
supported by the General Manager of the YUI. As head
this Sustainability Report.
of sustainability for Indonesia, the General Manager
supports the CEO in tracking and monitoring the USLP
Health Safety and Environment
progress against the set targets.
Sustainability is one of the pillars of the CSHEC (Central
Safety, Health and Environment Committee) that consists
The USLP objective of helping one billion people
of members of the Board of Directors. Every Director
worldwide take action to improve their health and
will supervise a DSHEC (Divisional SHE Committee)
hygiene has been translated into the objective for
that has General Managers as member. The General
Indonesia to reach 100 million people through our
Manager of every factory will supervise the USHEC (Unit
Lifebuoy-programme. This target is owned by the brands,
SHE Committee) that coordinates safety health and
supported by other divisions, including Health pillar
environment (SHE) activities in factory.
under Unilever Indonesia Foundation.
The SHE committee monitors:
• PRPS (Policy, Rules, Procedures and Standards)
Consumer mobilization in management of post-use
• Emergency Preparedness and Responses
packaging waste will be supervised by Board of Director-
• Environment and Sustainability
member, supported by YUI Environment Program
• Travel/Road Safety
Manager. The objective for Indonesia is to recycle 1000
• Health and Office Safety
tons per year through the Waste Banks linked to our
• Business Partner and Contractor Safety
home care brands.
• Safety Beyond Workplace.
The reduction targets for water, waste, energy and
Sustainability Practices
greenhouse gases in our manufacturing operations as
Our sustainability strategy touches all aspects of
well as finding solutions to flexible waste and recovering
our operations and every stage in the lifecycle of our
energy from post consumption waste, will be supervised
products, with innovation and technology playing a
by the member of the Board of Directors referred to above.
central role. It also shapes the way we engage with
our stakeholders through community development
Sustainable sourcing of palm oil and soy beans will take
programmes and brand social missions, which are our
place under the supervision of the member of the Board
vehicles for promoting economic empowerment and
of Directors, supported by all relevant divisions, including
motivating consumers to adopt more sustainable ways
Unilever’s Supply Management Team.
of living and consuming. Using the power of our brands,
Unilever Indonesia is empowering people to take small
Creating a better work place, with health care and
actions that, together, have a big impact and take us
reductions of energy consumption and waste in offices
closer to the Unilever Sustainability Living Plan targets.
and travel will take place under the responsibility of the
member of the Board of Directors, and translated into
To disseminate and execute our sustainable practices
campaigns and programs that is managed by relevant
throughout the value chain, Unilever seeks to develop
divisions, such as communications and HRD.
responsible commercial partnerships, promote health
33
and well being of communities and encourage conscious
In the reporting period, no significant fines or non-
consumption among its consumers . We implement
monetary sanctions were imposed upon our company for
various actions focused on our strategic stakeholders,
any non-compliance with laws and regulations. (SO8)
such as the Sustainable Sourcing Programme , which
improves our monitoring of good practices throughout
Our company was not involved in any legal cases in
our supply chain. With our customers we further develop
relation to anti-competitive behavior, anti-trust and
the agenda of reducing our environmental impacts, such
monopoly practices or any other issues covered in our
as waste management and greenhouse gas emissions,
Code of Business Principles or compliance with the law
as directed by the Unilever Sustainable Living Plan.
in 2011 and 2012, and no cases are pending. (SO7)
Although we have room to improve in engaging our value
In the reporting period, we analyzed a number of our
chain, the importance of the Unilever Sustainable Living
business units for the risks related to corruption. These
Plan’s directions has increased as our business expands.
business units were procurement, marketing,external
affairs, community development.No instances of
Procurement
corruption were found. (SO2) No employees were
Our procurement practices are guided by the Unilever
dismissed and no contracts with business partners were
Business Partner Code and the Sustainable Agriculture
discontinued due to violations related to corruption. (SO4)
Code (SAC). The Business Partner Code is designed to
ensure fair working conditions throughout the supply
In the reporting period, we trained 2,750 of our
chain, including respect for human rights, freedom of
employees, both management and non-management
association, avoidance of child labour and force labour
staff, in our company’s anti-corruption policies and
and wage systems and working hours that are compliant
procedures. This represents 41% of our management
with Indonesian law. We also seek assurance that our
and non-management staff. (SO3)
suppliers meet our health, safety, and environmental
protection standards. The SAC is aimed at encouraging
our suppliers and farmers to adopt farming sustainable
practices. Our policy on sourcing raw materials
prioritizes local sources where feasible. All prospective
suppliers undergo an audit of their reliability and quality
management, and their performance on environment,
human rights, and other social issues is screened
according to the Codes above. (HR2, HR5, HR6)
Compliance, Anti Trust, and Corruption
Unilever Indonesia applies the highest possible
standards with regard to corruption, ethical business,
anti-competitive behavior and compliance with the
law and international business principles, such as
the OECD Guidelines for Multinational Enterprises.
These standards are included in our Code of Business
Principles (CoBP), which is actively and rigorously applied
throughout our organization under the direct supervision
of our Board of Directors. (4.12)
34
THE BUSINESS
CASE FOR ACTION
The Sustainability
Challenges and How We
Deal With Them
The world faces a
number of sustainability
challenges that require
immediate and decisive
action. A growing
population is putting
increasing pressure on
the earth’s resources,
leading to higher food
prices, local shortages,
loss of biodiversity
and climate change.
Millions of children in
developing countries die
of waterborne
diseases and
the percentage
of the world’s
population
suffering from
lifestyle diseases
such as diabetes
and obesity is
also on the rise.
Growing income
inequality poses
a threat to social
coherence.
35
All companies are affected by these developments
greenhouse gas emissions, as well as to improve the
and companies need to be part of the solution for the
livelihood of farming communities. The loss of natural
sustainability issues.
rainforest cover in Indonesia and other forms of land
degradation, and the related increase in greenhouse
As is the case for any company, sustainability issues
gas emissions pose a threat to both Indonesia’s
present both a challenge and an opportunity for
and the world’s environment. Unsustainable use of
Unilever Indonesia. Our company is among Indonesia’s
agricultural land will also have negative effects on
largest companies, Indonesia’s largest buyers of
agricultural production, as land degrades and farmers
agricultural products, Indonesia’s largest advertisers
seek other means of subsistence.
and Indonesia’s largest providers of daily used packaged
food and personal and home care products. This means
that our most important sustainability impacts are in
the following areas:
1) Sourcing of our agricultural products. We procure
large amounts of palm oil, black soybeans, and tea
and smaller amounts of coconut sugar, fruit and other
agricultural commodities. We seek to minimize the
impact of the production of these communities on the
use of water, land, natural environments, and related
36
Unilever has set worldwide targets to ensure that all
3) The use of water and energy related to the
the important agricultural products its uses comply
consumption of our products
with international sustainability standards, and we
are well on track to achieving these targets ahead of
Much of the ecological footprint of our product
schedule in Indonesia. We are also working closely
cycles consists of the water and energy used by our
with a growing number of farmer groups to increase
consumers when they use our products. Our company
the quality, yield, prices and income. This is helping
therefore invests substantially in product innovations
us to strengthen our bonds with our agricultural
that reduce the need for water and energy use when
suppliers, and with consumers;
consuming our products.
2) The use of water and energy in our eight factories
4) The post-consumption packaging waste is a major
and the use of fossil fuels in the transportation of
problem in Indonesia, for which we are taking our
our inputs and finished products is another area of
share of responsibility. The amount of plastic and other
sustainability issues that we actively manage. The
non-degradable waste from consumer goods that
availability of water is under serious threat in major
pollutes the environment in Indonesia is still growing
urban and industrial areas in Indonesia. If not all
with the fast growing consumption. Non-degradable
users of water take their responsibility to minimize
waste in the environment contributes to the poisoning
the use of water and to maximize the treatment of
of soil and to flooding problems, which also carries
water after use, this may cause shortages of water
reputational risks for companies like Unilever.
in cities and industrial parks, which could also affect
Unilever’s production facilities in coming years.
Unilever has carried our programs to clean up cities
in its green and clean programs, and has provided
Unilever Indonesia applies water saving and water
intensive assistance to waste recycling programs such
treatment equipment in all its plants.
as Trashion and waste banks. Unilever is also actively
searching bio-degradable and affordable alternatives
for small sachets.
Possible future sustainability issues for Indonesia in our
market segments that are anticipating include plastic
micro bead pollution and lifestyle diseases. (1.2)
37
The Business Case for Action
Yayasan Unilever Indonesia
At Unilever we believe that sustainability and business
The Unilever Indonesian Foundation (Yayasan Unilever
development can and must reinforce each other. As a
Indonesia, YUI) bridges business expertise and the
Company, we will be affected by the sustainability issues
community potential to create mutual benefit amongst the
set out above if we do not address them adequately. At
stakeholders involved. The YUI is now active in important
the same time the issues provide us with opportunities.
areas, such as on Java, Sumatra, Kalimantan, Sulawesi,
Savings in energy, raw materials and packaging reduce
Bali and Nusa Tenggara Timur. The YUI plays an important
our cost. Our product and packaging innovations
role in meeting our sustainability targets, which are
create more valuable products at competitive levels.
geared towards reducing our environmental footprint
Our stronger bonds with more prosperous farming
whilst doubling the size of our business worldwide.
communities help us ensure a stable and high quality
Much of the work of the YUI helps farmers and our other
supply of agricultural inputs.
business partners cope with the volatilities in commodity
markets and with natural disasters. All this contributes
Consumers, also in Indonesia, increasingly prefer
significantly to our global aim of bringing a better life more
products that have been produced responsibly and
than a billion people on the planet by 2020.
retailers have incorporated sustainability standards into
their supplier selection. A growing number of talented
people choose to work for responsible companies.
38
IMPROVING HEALTH AND WELL-BEING
IMPROVING
HEALTH AND
WELL-BEING
At least one Unilever is
used in all of Indonesian
households. This
highlights the importance
of our business for the
dissemination of products
and consumption habits
that favour the growth,
development and well-being
of communities. Improving
health and well-being is one
of the pillars of our USLP.
39
National Oral Health Month
Our approach
• Establishing, utilising and recognising peer educators;
In the implementation of health and well-being
• Partnering with local government in supporting a
improvement programs, Unilever through its brands
conducts an integrative approach which includes:
mutually beneficial agenda;
• Getting deeper into community involvement and
identifying community-level opportunities to support
• Creating a campaign around positive behaviour change,
made popular through awareness-raising press
conferences, press photo competitions, TV commercials,
and printed advertisement;
• On-ground engagement utilising community institutions,
such as schools and women’s informal groups, and
deploying the “Train the Trainers”-program and
establishment of support from multi stakeholders at
local level, to achieve a multiplier effect;
the health and well-being initiative.
40
The elaboration of the programs conducted in this area is
The focus of the campaigns has been on children at
as follows:
primary school age (6-12 years old) to ensure that these
habits will last a lifetime. The methodology used to
Hand washing campaign through the Power of 5 and
determine the change of habits is by developing a 21-day
Lifebuoy Berbagi Sehat
movement which includes keeping an actual track of
Every year, diarrhoea and pneumonia claim the lives
each day, when a person washes his hands and brushes
of over two million children under five worldwide.
his teeth. According to studies, doing something for 21
Yet studies show that washing hands with soap can
straight days can develop a habit. To make the program
significantly reduce the incidence of these diseases.
cost effective and scalable, Unilever Indonesia partners
In making this a lasting impact we need to encourage
with the Indonesian government and NGOs. By having
people to change their everyday habits, like washing
close relationship with national and local governments
hands with soap before eating and after going to the
in Indonesia, we are able to create a multiplier effect.
toilet. These are simple matters which are usually
With this, the success of the program can be replicated in
neglected but do have significant impacts. Many Unilever
other regions.
brands offer hygiene benefits.
Unilever through its Lifebuoy brand trains teachers to
Indonesian families are aware of the importance of hand
deliver the hand washing behaviour change programme
washing with soap. It is being practiced in general, but
and provides materials and toolkits that they need. Each
has not yet transformed into real lasting healthy habits.
teacher can cascade the programme to an additional
In 2010, the percentage of households that has fully
three schools, through a “Train the Trainer”-model to
adopted a healthy way of living (Pola Hidup Bersih dan
create a multiplier effect.
Sehat or PHBS) was only 35.8%, and the national average
percentage of proper hand washing with soap was only
The cooperation between NGO-partners provides
24.5%. In 2011 and 2012, the Lifebuoy hand washing
coaching, monitoring and evaluation.
program was continued in collaboration with a local NGO
and the government.
Lifebuoy Berbagi Sehat
41
The partnership approach, involving government,
day, only 7.3% brush their teeth at proper times, which
schools, teachers and NGOs, has enabled Lifebuoy to
are after breakfast and before going to bed. In other
reduce the overall costs of the programme, thereby
words, oral health awareness and people’s willingness to
increasing the ability to take it to scale.
prioritise oral health is still low. It creates a good ground
for Pepsodent to make a positive contribution.
Our Cuci Tangan Pakai Sabun (hand washing with soap)
Pepsodent’s national movement umbrella of “Gosok Gigi
program now has more than 50,000 Little Doctors in
Pagi dan Malam”” continues to reach growing a number
more than 4,000 schools. It has reached more than 4
of beneficiaries. Through this national movement,
million people by the end of 2012, involving 4,418 primary
Pepsodent, in collaboration with the Indonesian Dentists
schools with 951,685 students of which 18,565 Little
Association (PDGI) and the Association of Dentistry
Doctors. On average, there is an improved practice of
Faculties (AFDOKGI), pioneered National Oral Health
hand washing with soap by 20% in assisted primary
Month in July 2010. Through an integrated preventive-
schools. In total, the program has been able to reach
curative approach, the program aims to continuously
1,404,000 and 4,958,000 in 2011 and 2012 respectively.
promote the importance of oral health through an
education program, and free dental check-ups in the
The Little Doctors have been playing a major role in
universities. During 2011 and 2012, not less than 1.8
peer to peer education amongst school children. A
million students in 8,418 primary schools were educated.
national competition to award the Little Doctor with the
most outstanding performance was conducted under
Safe Drinking Water
the partnership of Lifebuoy and Indonesian Doctor
Poor hygiene and sanitation remain the cause of millions
Association on an annual basis.
of preventable deaths. In developing countries around
80% of the diseases are waterborne. According to UN
Brushing Day and Night
estimates, over 2 billion people have limited access to
Our toothpastes play an important role in preventing
safe drinking water. Of these, nearly 800 million lack
tooth decay which is one of the world’s most common
even the most basic supply of clean water. This is a major
diseases and can lead to more serious health conditions.
public issue.
A simple practice of brushing twice a day can make a big
difference to oral health.
One main target of the USLP is related to the quality of
water consumed by the world’s population. Unilever’s
The brand social mission of Pepsodent in Indonesia
global target is to make drinking water available to
is to improve the quality of oral health and to reduce
500 million people by 2020. In order to achieve this,
the occurrence of cavity, caries and bleeding gums.
Unilever Indonesia will intensify the promotion of the
It has been triggered by the fact that despite the high
water purifier Pureit, which was initiated in 2008 (FP4).
penetration of toothpaste and high occurrence of tooth
Pureit, which is our in-home water purifier, provides
brushing, there is still a big lack of awareness and
water ‘as safe as boiled’ without the need for electricity
practise of, both in awareness and practice of oral
and at a price that is more affordable than boiling water.
hygiene and health among Indonesian consumers.
Launched first in India where the issue of water quality
The basic health research (Riskesdas 2007) reveals that
is critical, the main advantage of the product is that it
72.1% of Indonesian population suffer from caries. In
purifies water completely, eliminating 99.9% of viruses,
2012, 23.4% of the population experienced oral health
bacteria and parasites as well as hormones and heavy
problems, however only 29.6% of them seek help from
metals by means of filtration and chlorination.
a dentist for further examination. Besides, while 91.1%
of the Indonesian population brush their teeth every
42
We launched Pureit in Indonesia in 2010, underscoring
Two traditional markets in Yogyakarta and two in East
the multiple benefits offered and emphasizing the fact
Java were transformed into Healthy Markets through
that there is no use of gas or electricity to have safe
intensive facilitated interaction. Around 1,430 agents
drinking water. As with Lifebuoy, we seek to associate
of change are recruited among the 7,405 vendors who
Pureit sales with initiatives driving improved living
are volunteers themselves to support the socialization
standards for underprivileged sections of the society.
of healthy life style knowledge and supervise their
peers to practice more frequently the simple habit
Integrated Health Promotion Programme (IHPP)
of hand washing with soap and tooth brushing
The hygiene education programme did not stop at
after breakfast and before night sleep. Altogether
promoting washing hands, brushing teeth and providing
11,882 sellers in the Yogyakarta area and East
solutions for safe drinking water, but developed into an
Java were educated in the past three years. Public
Integrated Health Promotion Programme (IHPP) with its
sanitation facilities in the markets are improved and
first initiation in 2005 in Yogyakarta.
function better to offer a comprehensive comfort
and cleanliness. Vendors were also trained by our
The IHPP creates awareness of healthy lifestyles by
sales teams in marketing strategy, simple financial
channelling similar approaches and partnerships
management and product knowledge.
through the following activities and goes deeper into the
community in the local areas:
Other than that, vendors were also trained on safety
and security, so visitors will have a comfortable and
safe shopping experience at the traditional markets.
a. School Health & Hygiene Program
This program targets the school-going children with
the hygiene education through hand washing with
d. Healthy Village Program
soap and brushing at proper times.
In 2012 the program was implemented in 49 villages
in DI Yogyakarta, East Java and on Sumba. The
b. Kid’s Program
program has involved 148,685 community members
The program was implemented in four districts in the
to take active action in making themselves healthier
province of East Java. It involved 640 trained mothers
through the creation of a better living environment
and cadres with the objective to improve the growth and
and regular practices of basic health hand washing
development of 17.000 children under the age of five.
with soap and tooth brushing at proper times. This
Mothers and cadres are educated to understand better
program has empowered 848 community members to
the importance of applying a healthy life style and
become health cadres and play an important role as
providing a balanced nutritious diet to their children.
agents of change.
c. Healthy Market Program
e. Youth Health Program
In 2012, the Unilever Indonesia Foundation together with
In 2012, the program educated around 69,275 junior
local partners in DI Yogyakarta and East Java started
and high school students in 9 districts in North
to focus their efforts and resources on strengthening
Sumatra, East Java and Bali with support from 15,948
traditional markets to become Healthy Markets.
Youth Health Ambassadors. The Health Ambassadors
were selected from selected students that were
empowered through a series of trainings on public
speaking, reproductive health, HIV/AIDS prevention
and personal hygiene. The ambassadors then were
43
challenged to approach as many peers as possible
Project Laser Beam is truly unique in its holistic
and facilitated them to get better understanding of
approach aiming to eradicate child hunger. As the name
youth health and practice healthy habits. During the
suggests, the project is about a ‘laser beam’ sharp focus
celebration of International AIDS Day on 1 December,
on one geographic area at a time to maximize the impact
the ambassadors with best performance were granted
where it is needed most. Bangladesh and Indonesia are
with awards. Other than that, Unilever Indonesia
the chosen focus areas. Both countries together account
Foundation supported by local partners conducted
for almost a quarter (24%) of the world‘s malnourished
competitions on photo making, poster development
children under five years of age. The main aim of Project
and article writing. The support came from national
Laser Beam is to reach out to more than 2 million people
and local commissions of AIDS, Paramadina University
in both countries to eradicate hunger with the following
and the Ministry of Women Empowerment.
steps:
• Improve the nutrition of up to 500,000 children
• Provide access to clean drinking water, sanitation and
Nutrition Enhancement Programme
(NEP)
In our Nutrition Enhancement Programme (NEP) we are
undertaking a range of initiatives aimed at improving
nutrition in different target groups.
basic healthcare to communities
• Reach more than 1 million people with life changing
hygiene trainings in schools and amongst communities
• Enhance the livelihoods of 3,000 women in ultrapoor households.
Unilever engaged with the United Nations World
For Indonesia, Unilever Indonesia has targeted to reach
Food Programme (UNWFP) through a USD 50 million
at least 20.000 students with nutritious school meals in
commitment together with other partners such as Kraft
East Nusa Tenggara (NTT). At the end of the period of
Foods, DSM, and GAIN (Global Alliance for Improved
this report, we have reached around 10,250 students in
Nutrition) to deliver the first Millennium Development Goal
41 primary schools. This program has been conducted
of “Eradicating poverty and hunger” by rolling out Project
between Unilever Indonesia and the UNWFP. (FP6)
Laser Beam, a holistic approach to combat malnutrition.
We want our business to be part of the solution to the
Project Laser Beam breaks the ground in three ways, by:
issue of nutrition that Indonesia and the world are facing;
• Embracing a multi-stakeholder model to ensure
and with that in mind, Unilever has been developing a
activities are the most appropriate for the local situation
• Encompassing a holistic approach to nutrition with
Nutritional Enhancement Programme to improve the
nutritional profile of our foods products.
focus on food, health and hygiene
• Creating a new model for public-private partnerships
In 2012, YUI continued supporting the Project Laser
that is scalable, replicable and sustainable for use in
Beam. In April 2012, YUI participated in partners’
other countries around the world.
workshops and in the production of a film on the UNWFP
School Meal Programme in the Timor Tengah Selatan
District of NTT. The film supported fund raising activity
44
100%
of our children’s
ice cream will
have 110 Kcal or
less per serving
Our Global Nutrition Targets (FP4)
Besides the program with UNWFP we also seek to offer
our consumers practical, nutritive products that meet
their needs and address critical nutrition issues in
Indonesia. The company’s Research and Development
is in constant dialogue with the Nutrition area with the
objective of aligning new and old products in the portfolio
with consumer goods industry best practices.
0 trans fat
in all of our product
by 2012
Our global nutrition targets are:
• Removing trans fat: by 2012, all our products will
be free of trans fat from partially hydrogenated
vegetable oils
• Reduced sugar: we have already reduced the levels
of sugar in our ready to drink teas. By 2020, we will
reduce them by a further 25%
• Reduced calories: by 2014, 100% of our ice cream
will have 110 Kcal or less per serving. 60% of our
production will achieve this target by 2012.
conducted by a Netherlands-based food manufacturer
• Starting 2013, we will do at least 5% reduction across
from which funding was channelled to the UNWFP
the whole renovation cycle, aiming for the WHO
school meal program. Another workshop was held on
recommendation of 5g salt per day by 2020
behavioural change communication and the importance
of micro nutrition to improve the quality of food intake
To meet this global target, we continually work to improve
among primary school students.
the taste and nutritional quality of our products through
innovation and reformulation guided by the highest
YUI in collaboration with its local partner conducted
internationally recognized dietary guidelines. With our
health, hygiene and nutrition education in 30 primary
product, we aim to make a difference to the quality of
schools in the Kupang District in collaboration with the
people’s diets, addressing both over and under nutrition.
PKK, reaching around 5,266 primary school students.
Targeted to the mothers, similar education was also
conducted through 30 community health centres or
Posyandu in the district.
45
Remove trans fat
Provide healthy eating information
We have eliminated trans fat originating from partially
In 2012, we have implemented the information of 8 key
hydrogenated vegetable oil from all Blue Bland variants
nutrients and% Guideline Daily Amounts on the back
and some of Knorr products aligned with our global target
pack on Buavita Royale and Grape, Blue Band Cake &
to remove any remaining trans fat from our products by
Cookie, Food Solution with Bango 1.2 L, Bestfood Real
2012.
Mayonnaise, Bestfood Mayo Magic, and Pfanni puree.
Work in progress for the information of 8 key nutrients is
Reduce sugar
currently being done in stages for other categories like
We have already reduced sugar level in our Buavita fruit
beverages, spreads, savoury, ice cream and Unilever Food
juices and are committed to meet the highest nutritional
Solution product ranges to be in line with global target of
standards, based on globally recommended dietary
providing healthy eating information by 2015.
guidelines, with the introduction of our improved Buavita
pack.
Contributing to micronutrient intakes
Some of our brands can play a role in tackling under
Reduce calories
nutrition, particularly micronutrient deficiencies, through
The saturated fat, sugar and calories in children’s ice
food fortification. For example, Blue Band margarine is
cream (Wall’s Paddle Pop) in Indonesia have been reduced
fortified with vitamins A, B1, B2, B3, D and E, a single
and they contain 110 kilocalories or less portion as part of
portion provides more than 10% of the recommended daily
our work to meet a global target of 100% of our children’s
allowance. (FP6)
ice cream containing 110 kilocalories or less by 2014.
46
REDUCING ENVIRONMENTAL IMPACT
REDUCING
ENVIRONMENTAL
IMPACT
47
Due to the nature of our business, we leave
strategies and operations. Our aim is to halve our
environmental impacts throughout the value chain.
environmental footprint while doubling our business.
Therefore we believe that a Sustainability Based
Reducing environmental impact is one of the pillars of
Management system should be at the centre of our
our USLP.
48
Our most important materials in our production process are (EN1):
MATERIALS
UNIT
2011
2012
Agricultural commodities
(000) ton
257
270
Chemical Products
(000) ton
371
395
Packaging Materials - outer carton, tube, bottle, label
(million) pcs
12,25
12,97
Packaging Materials - reel, pouch, sachets, tape
(million) meter
2,39
2,74
Packaging Materials - shrink, wrapper, adhesive
(000) kg
2,29
2,35
Others -Food Ingredients
(000) ton
218
214
Environmental Management in our
operations
production area, we need to constantly engage with our
We have developed a management model of which the
will enable us to achieve our environmental targets.
suppliers and customers to develop viable solutions that
main reference is the priorities of the USLP, and other
questions related to the environmental impact of our
The reported data on environment are audited by an
operations in Indonesia. Since the inception of the USLP,
independent auditor to certify the validity of the reported
we have adapted priorities and strategies in Indonesia
data. With regular (or constant) monitoring within every
to meet the targets. At Unilever Indonesia we seek to
site in Unilever, performance of every parameter and
reduce our environmental impact by monitoring and
every site in the world is monitored for benchmarking.
improving the efficiency of manufacturing and nonmanufacturing operations and by developing projects
We are investing in a variety of technologies that advance
and actions with business partners such as suppliers,
environmental sustainability and will help us reduce
customers and others.
the current environmental footprint of our operations.
These specific investments have improved the efficiency
One of our main challenges is reducing greenhouse
of our facilities and reduced our need for electricity,
gas emissions. While we have eco-efficiency measures
fuels and water. We strive to comply with environmental
in place, the monitoring of emissions throughout the
laws and regulations while reducing our impact on the
supply chain – in particular at the product distribution
environment in our local communities by employing
stage- indicates that in addition to internal actions in the
multiple resources, including water treatment systems,
wastewater treatment systems and air emission controls.
Each year, we invest significant capital in maintaining and
improving these operations. In 2011 and 2012, we spent
Rp 224 million for waste disposal, emission treatment,
as well as prevention, protection and environmental
management expenditures. (EN30)
49
Unilever Indonesia conducts continuous life-cycle risk
Water
assessment, internal auditing and detailed recording
Unilever considers the reduction of water consumption
of environmental performance. This commitment goes
during the product lifecycle to be a priority in its global
beyond local and international regulations. During
operations. Worldwide, we want to provide 50 million
2012, Unilever Indonesia did not incur any penalties for
households in water-scarce countries, which includes
violations of environment-related laws and regulations.
Indonesia, with home care products that deliver excellent
The Company complies with all significant environmental
laundry cleaning but use less water by 2020. By 2015
requirements under the Department of Environment’s
we also want to reach 200 million consumers with
regulatory framework. No significant fines or penalties
products and tolls that will help them to use less water
were incurred for environmental non-compliance during
while washing and showering, and we want to double
the course of operations. (EN28) No significant spills took
that amount in 2020 to 400 million. We will also develop
place in the reporting period. (EN23)
comprehensive plans with our suppliers and partners to
reduce the water used to grow our crops.
One of the most significant achievements in 2012
was the award of the Gold ‘PROPER’ rating for our
To achieve this, Unilever Indonesia has developed
Rungkut factory. The PROPER rating system is used by
a strategy that combines eco-efficiency in our
the Ministry of the Environment to assess companies’
manufacturing and non-manufacturing activities
environmental compliance and social responsibility
(research and development, distribution, sales and
performance; the Gold rating means that we have
offices) with innovation processes and incentives to drive
consistently demonstrated all-round environmental
the responsible use of water in the consumption phase of
excellence, ethical business practices and social
our products.
responsibility. Our Cikarang factory is currently rated
‘Green’; this is the second-highest grade, indicating that
In our internal processes, both the manufacturing
it has gone beyond compliance in terms of environmental
and non-manufacturing departments are engaged in
performance, efficient resource use and social
initiatives aimed at reducing the volume of water used.
responsibility.
The factories accounting for the largest part of the water
consumption are the food plants, due to the significant
volume of water in the products themselves and in the
production processes which require constant cleaning to
guarantee quality.
At Unilever Indonesia’s factories we do not source water
process of our fabric softener Molto are being re-
from lakes, rivers or any other water bodies. All our
used. Water effluents from the waste water treatment
water comes directly from the Industrial Park Water
plant (WWTP) in the ice cream factory are reused in
Supply companies in which we operate. (EN8)
the production process of the detergent factory and as
cooling water in the cooling tower and condenser. Water
We measure our usage for each factory and we are taking
that has been used in the pasteurization process in the
various measures to reduce our water consumption in
ice cream factory is also re-used to rinse machineries,
our factories. The Home & Personal Care Liquid Factory
thus lowering fresh water consumption. With rain water
saves 17,000 m3 of water every year through tap on
harvesting for all factories, we managed to save 3434 m3
valve, implementation of pigging system and rainwater
of water per year.
harvesting. Between 25 and 30 m3 of effluents are
recycled in the production process of our floor-cleaning
The total water consumption and the water use in m3 per
product Superpell, and 100% of the effluents in the
tonne of production in our Rungkut factory developed as
production process of our dish wash liquid Sunlight are
follows, since 2008.
recycled by pre-treatment in a neutralization tank. With
pasteurization, 40% of the residues in the production
4
70000
3.5
60000
3
50000
2.5
40000
2
30000
1.5
20000
1
10000
0
water (m3)
water (m3/ton)
02
68.752
3.42
03
04
05
06
07
08
09
10
11
73.997 55.625 42.189 37.644 34.747 35.706 30.736 26.000 26.972
3.58
2.84
2.26
1.96
1.73
1.86
1.58
1.537
1.635
ytd ‘12
80000
28.131
1.47
0.5
0
Water Cons Load (m3/ton)
Water Consumption and Water efficiency in
the Rungkut Factory
Water Consumption (m3)
50
51
Because our water comes from the Industrial Park Water
used for rinsing is on average 10.75 liter water per kg of
Supply Company no waters are significantly affected by
clothes. Assuming that the total number of families in
our withdrawal of water. (EN9)
Indonesia is 52,575,000, the total amount of water used
can reach up to 1.17 billion cubic meters of water per day.
All our waste water is discharged to the waste water
treatment facilities in the industrial parks in which we
Since we launched this new product in 2010 we have
are located. (EN21)
been continuously educating consumers on water saving
in their daily washing activity.
Among the different product categories, the greater
proportion of our water footprint is related to home care
Molto One Rinse reduces the amount of water needed
products and fabric softeners used in washing clothes
for laundry by two thirds. We are aiming to make an
(38%), followed by the use of soap, bath gel and skin care
assessment of this effort in 2013 to determine whether
products (37%). A significant part of the clothes washing
we have developed an impact towards efficient use of
impact is associated with manual washing, common
water and water consumption. (EN26)
in developing countries and higher than the impact
from machine washing. To reduce the use of water for
Energy
bathing, cleaning and washing with our products, we
At our factories we use direct energy, which is Light
are developing products that help consumers change
Fuel Oil and Natural Gas, and indirect energy, which
their habits in an easy and pleasant way. One example is
is electricity, for our production process. We are only
the launching of our new innovative product “Molto One
using natural gas and light fuel oil in our direct energy
Rinse”. This product reduces the amount of water needed
consumption, and no other sources of direct energy.
for laundry by two thirds.
Molto One Rinse
We strive to reduce the use of light fuel oil, which emits
Water consumption is crucial in sustainability. Scarcity
a high volume of CO2, and to replace it with natural gas.
of clean water is considered a high risk for society. With
(EN6)
this in mind Unilever has developed Molto One Rinse,
our fabric softener product which reduces the amount
Increases in direct and indirect energy consumption in
of water used for rinsing after washing clothes to one
2011 and 2012 are due to increased production. We aim
bucket instead of three.
to increase our energy efficiency and have been able to
reduce our direct energy use per tonne of production
Water consumption is around 39 liters per day per
significantly since 2008. In 2011 we reduced the direct
household for bathing/toilet or 49.75% of water
energy use per tonne of product by 10%. In 2012, we
consumption, followed by laundry which uses an average
further reduce another 1% of 2011.
of 20 liters per day per household or 23.82% of water
consumption. Every family washes on average 1.9 kg of
dirty clothes daily, with the majority of them rinsing the
laundry up to three times. The total amount of water
52
We have developed a comprehensive energy efficiency
A set of targets have been developed against these
programme throughout our offices and factories in
initiatives, which are closely monitored to enable us to
order to achieve more efficient levels of indirect energy
measure the impacts we make towards energy reduction.
consumption.
With respect to energy from sources belonging to or
By making re-arrangements to the chiller in our skincare
controlled by Unilever, we also have been looking at
factory, we have managed to reduce the energy use by
increasing the proportion of renewable energy compared
38,800 GJ per year.
to non-renewable energy. In order to increase that
proportion we are studying fuel substitution projects in
In our foods factory, we were able to reduce our energy
the factories that use higher volumes of non-renewable
use by 13% and our CO2-emissions by 10%, by using
energy. One example of the use of renewable energy is
a boiler economizer and by having our energy use
the use of a Solar Heater at our Personal Care factory
audited frequently.
which is aimed at heating water used for production.
With this initiative we were able to save around 6.7 GJ of
A range of energy efficiency policies have been
energy per day.
introduced, including (EN6, EN7):
• Maximising natural light absorption and airflow with
ceiling ventilators
Greenhouse Gas Emissions
One of the targets of the Unilever Sustainable Living Plan
• Reducing office paper consumption
is a reduction in worldwide greenhouse gas emissions
• Encouraging the use of teleconferencing rather than
from our factories by 2020 compared to the 2008 level.
travelling
This represents a reduction of 63% per tonne production
• Switching off unused electronic appliances
from a 1995 baseline. We also aim to double our use of
• Using low energy light bulbs
renewable energy worldwide to 40% of our total energy
• Applying motion sensors in toilets and function rooms
requirement by 2020. All newly built factories are to have
to ensure lights are switched off
• Pick-up services for employees to reduce CO2
emissions
less than half the impact of current ones. In our global
logistics network, we aim for a 40% improvement in CO2
efficiency by 2020.
• Emissions checks for vehicles belonging to Unilever
Indonesia and our suppliers
• Ensuring all suppliers’ vehicles are in compliance with
emission standards.
• Encouraging foreign-based suppliers to set up
production in Indonesia to reduce the need for
transportation
• Changes in air conditioning systems and elevators in
offices and substitutions of conventional light bulbs
with LED models in offices and distribution centres
Achieving these targets is a challenge and reducing
these emissions throughout the cycle of our products is
a strategic objective. A major source of greenhouse gas
emissions is our energy consumption.
53
With the energy saving initiatives set out above, Unilever
facilities available. By 2020 we will increase the recycled
Indonesia has also been keeping track of the CO2
material content in our packaging to the optimum level.
emissions of its factories. We have achieved a number
We want to develop and implement a sustainable business
of reductions of CO2 emissions in 2012 due to the
model for handling our sachet waste streams by 2015. All
implementation of the initiatives we have made. The
PVC should be eliminated from our packaging by 2012,
CO2-emissions from our factories in kg per tonne of
where technical solutions exist.
production in 2011 and 2012 is summarized below. Our
CO2-emissions increased 110 mln kg in 2011 and 114 mln
In accordance with the USLP, Unilever Indonesia
kg in 2012, due to our higher volume of production. Our
takes a comprehensive life-cycle approach to waste
CO2 emissions per tonne production increased was 2011
management, applying the principle of Re-use, Reduce,
to 132 kg, but were reduced to 121 kg in 2012. (EN16)
Recycle and Eliminate. This approach covers waste
generation throughout the value chain, ranging from
Benchmarking with our global factories we have achieved
products and packaging to our operations in the country
a significant number of reductions. As can be seen in the
and the management of waste after the consumption of
chart below, compared to other sites, the Rungkut and
our products.
Cikarang factories have low emissions of CO2.
We focus on reducing the waste generated in the
Other than reducing emissions from direct energy use,
factories and in packaging production processes as well
we have also taken initiatives in reducing emissions by
as on improving the disposal of packaging and containers
maximizing pack size of our products. This initiative has
through re-using and recycling. We seek to reduce the
saved us around 500 tonnes of plastic per year which is
impact caused by the business by increasing the volume
equal to 3,000 tonnes saving of CO2 emissions per year.
of material recycled and minimizing disposal in landfills
Another initiative we took at our production sites is the
or by incineration.
use of full recycled board for our toothpaste cartons
which can save around 165 tonnes virgin pulp or around
We continue our efforts to decrease the volume of waste
4,400 trees a year. (EN18)
generated per tonne of production and have managed
to cut it by 50% since 2009. In 2011 we reduced the
We are also replacing all ice cream cabinets that use
amount of waste to 26.2 kg per tonne, of which 78.7%
ozone depleting CFCs with ice cream cabinets that use
was recycled. In 2012 we reduced the amount of waste
environmentally friendly hydrocarbons. (EN19)
further to 23.5 kg per tonne, of which 77.6% was
recycled. (EN2) Our non-recycled non-hazardous waste
Waste
is sent to a certified processing company to be used as
Globally, we want to reduce the weight of packaging that
landfill or incineration. (EN22)
we use by a third by 2020. In partnership with governments
and NGOs, we aim to increase recycling and recovery rates
on average to 5% by 2015 and to 15% by 2020. We continue
to make it easier for consumers to recycle our packaging
by using materials that best fit the end-of-life treatment
54
Our generation of non-hazardous (non-recycled) and recycled waste in total and in kg per tonne of production is
summarized below:
Non Hazardous (Non-Recycled) and Recycled Waste at
all sites total and per tonne production
25
20000000
20
15000000
15
10000000
10
5000000
5
0
10
11
12
0
10
11
12
Non-hazardous waste (kg)
Non-hazardous waste (kg/tonne)
Recycled waste (kg)
Recycled waste (kg/tonne)
In our foods factory, we apply general waste segregation. Plastic and paper are recycled, tea is recycled for composting,
disposable oil rags have been replaced by reusable oil rags. All of these project measures combined reduced the total
waste in our food factory by 41.86%. (EN22)
At the Rungkut plant, the spirit of 3R (Reduce, Reuse
and Recycle) has been implemented in the factory waste
management.
Reduce
The Packaging Development Team continuously works
on finding environmentally friendly materials. One of the
initiatives taken is the Bristol Project, in which it reduced
the size of the toothpaste packaging. This initiative
resulted in a saving of 1000 tonnes of paper per year and
is more sustainable in terms of transport and storage. It
has so far saved around 17000 trees.
Reuse
We also reuse the packaging. The return
rate of the packaging is around 80%.
Recycle
We recycle factory waste and we use
recycled packaging.
55
Hazardous Waste
Hazardous Waste is defined in accordance with the standard of the Ministry of Environment, and for our company
includes waste such as laboratory chemicals, medical waste and asbestos. We have been able to reduce our total
generation of hazardous waste from 821,000 kg in 2011 to 550,000 kg in 2012, and the average generation of hazardous
waste per tonne production from 0.979 kg to 0.582 kg.
The volume of hazardous waste and hazardous waste per kg production in our factories is shown in the following chart.
Hazardous waste generation in 2011 and 2012,
total and per tonne of production
6,000,000.00
5,000,000.00
8
7
4,000,000.00
6
5
4
3,000,000.00
3
2
2,000,000.00
1,000,000.00
0
09
10
11
12
Total Hazardous waste (kg)
1
0
09
10
11
12
Total Hazardous waste (kg/tonne)
Our hazardous waste is sent to a certified hazardous
as a possible government policy. The concept of EPR
waste processing company for incineration. Laboratorium
is defined as “an environmental protection strategy to
waste is segregated and undergoes bacterial treatment
reach the objective of decreasing the total environmental
in the WWTP. (EN24)
impact of a product, by making the manufacturer of
the product responsible for the entire life-cycle of the
Post consumer packaging waste
product and especially for the take-back, recycling and
In realizing the USLP’s target to halve our waste by 2020,
final disposal.” (Thomas Lindhqvist in a 1990 report to
Unilever is pursuing some groundbreaking and innovative
the Swedish Ministry of the Environment)
solutions on waste recycling and waste conversion.
Based on the study by the University of Indonesia in
To comply with EPR, particularly on the take-back,
2012, the total amount of post-consumer packaging
recycling and disposal of products, and to meet our USLP
waste contributed by Unilever in Indonesia reaches up to
objective, we have been exploring two groundbreaking
180,000 ton per year, consisting of primary and secondary
technologies. The first is a plastic recycling technology
packaging. Only 28% of our primary packaging is being
for the flexible packaging waste. Currently, flexible
recycled though recycling plants and waste collectors. To
packaging waste such as laminated pouches and
increase this recycling rate, we need an effective solution
metalized sachets, cannot be recycled effectively and
that will efficiently process waste in a large-scale. (EN7)
also have little value in the waste collection market,
hence they are not being collected by waste collectors
In addition to the USLP target, Unilever is also aware of
and scavengers. With many of Unilever’s products being
its Extended Producer’s Responsibility (EPR), which has
packaged in flexible packaging, our EPR includes this
also been discussed within the Government of Indonesia
flexible waste. To solve this, Unilever is conducting
56
various studies on plastic recycling technology which
The second technology that we are exploring is the
aims to break down flexible waste and turn it into
conversion of municipal solid waste through waste-to-
factory-grade plastic pellets. This preliminary study
energy approach. We are planning to conduct further
will determine the feasibility of the technology to be
studies on the technical and commercial feasibility of
implemented in Indonesia. We will further examine the
this technology. Best practices of similar technology in
results to pursue this technology.
other countries have shown the possibility of effectively
taking in hundreds of tons of waste per day. We believe
further study on the technology is required to confirm the
potential for success.
Coalition for Sustainable
Packaging (CSP)
As one of our multiple strategies to reduce our
inside knowledge on their respective
environmental impact through reducing post-consumer
waste management and Corporate Social
packaging waste in the environment, Unilever has
Responsibility programmes. Members
started the first non-profit coalition for sustainable
shared their experiences in managing
packaging with five other multinational and national
their own waste, from calculating
Fast Moving Consumer Goods companies in Indonesia.
Recycling Rate Index to establishing
Started in 2011, this collaboration, which has been
community programmes such as waste
named “Coalition for Sustainable Packaging (CSP)”,
banks and creative waste-based economy.
aims to leverage the efforts of each individual company
Government policies on Corporate Social
to better achieve the common vision of reducing post-
Responsibility and Extended Producers
consumer packaging waste in Indonesia. Modeled after
Responsibility were also discussed,
success stories in Thailand and Brazil, CSP harmonizes
taking into account critical inputs from
the common vision of the member companies while
each member. Experts on environment
multiplying the impact by collaboration on resources,
and waste from the private and public
expertise and funding.
sector were also invited to share their
knowledge.
The vision of the CSP is to become the Best Practice
in post-consumer packaging waste management
Currently, Unilever with the other five
that is integrated and sustainably implemented by
companies are in the process of finalizing
CSP members. The missions of CSP are: (i) improve
the MoU which will provide the legal
management of post-consumer packaging waste, (ii)
foundation and working framework ahead.
increase awareness of stakeholders on the importance of
A series of workshops and meetings have
managing post-consumer packaging waste and methods
been conducted throughout 2011 and
to manage waste, (iii) promote the collaboration of CSP,
2012 to finalize the agreements. Upon
and (iv) perform collective advocacy for policies regarding
signing of the agreement, CSP aims to
post-consumer waste.
start planning and implementing the
waste collection and waste reduction
Since 2011, members of the CSP have conducted a
programmes by 2013. As one of the
series of workshops and meetings to discuss not only
drivers of CSP, Unilever is committed
the working agreement of the coalition, but also on
to take CSP forward and demonstrate
topics relating to post consumer packaging waste. These
a successful method to reduce its
meetings were highly resourceful as members share
environmental impact by collaborating
with likeminded companies.
57
Effluents
SOx emissions We are aware that the use of water and wastewater
The initiatives we have conducted since 2010, converting
generation in our food production processes is
from light fuel oil to natural gas, have reduced our SOx
significant. It is a main challenge to drive continuous
emissions per tonne of product significantly, to 0.014 kg
improvement, particularly in the treatment of liquid
per tonne in 2011 and 0.0068 in 2012. For instance, by
effluents. We do not discharge our effluents directly
converting from fuel to gas for the boiler in our foods
into water bodies but distribute them to water reservoir
factory, we managed to reduce the SOx –emissions in
facilities such as the Jababeka Water Treatment Facility
kg per ton finished product by 59.5%. Our target is to
and the Rungkut Industrial Park Water treatment
reduce our SOx emissions further to 0.0023 kg per tonne
facility. By utilizing effluents from the boilers and cooling
production in 2017. We do not emit NOx.
tower our Waste Water Treatment Plant in Rungkut has
reached an absolute zero-level effluent discharge.
Compared to Unilever manufacturing sites in other
countries, our Rungkut and Cikarang factories have
We are monitoring the quality of our wastewater by
measuring the chemical oxygen demand (COD). The
COD-emissions has been decreased over the period
of 2009 to 2011, from 0.9 kg per tonne to 0.4 kg per
tonne.a.However there is a spike in COD-emissions in
2012 to 0.65 kg per tonne due to increase of production
in the home and personal care factory, with the same
capacity of the WWTP. The WWTP improvement just
finished in the end of the third quarter of 2012 and is now
already giving significant reductions of COD. (EN21)
among the lowest SOx emissions. (EN20)
58
ENHANCING
LIVELIHOODS
Enhancing livelihoods is one
of the pillars of our USLP. Our
programmes aim at stabilizing
and increasing the income of
our small-scale suppliers and
distributors while working
towards the betterment of the
communities and protecting the
environment.
59
Growing Together with the Community
programme educates people to protect the environment
by household waste segregation, recycling and greening.
Green and Clean Program
Now run in 10 cities, it has created 370 community waste
The Green and Clean programme was initially launched
banks, involving approximately 28,000 households.
in Surabaya in 2001 and has now been extended to nine
major cities in Indonesia, namely Jakarta, Yogyakarta,
Around 250 tons of inorganic waste has been collected
Bandung, Makassar, Medan, Manado, Banjarmasin,
with a value reaching almost 270 million rupiahs and
Denpasar, and Balikpapan. Empowering women,
involving around 28,000 members as customers of the
particularly housewives, as the agents of change, the
waste banks.
Women farmers presents their home made products
to Vice Minister of Agriculture and Unilever
60
Studies on the Green and Clean programme have shown that this initiative has brought positive impact on environmental
management, particularly in intervention areas. At least 2,407 neighbourhoods have been transformed into cleaner,
greener area with volume of waste reduced by up to 80%. Incidence of dengue fever and diarrhea in those areas has
also decreased significantly. It has also helped increase the average income of the community, increase the number of
productive housewives and raise the number of female leaders in organizations.
The results of the Green and Clean Programme in waste recycling are summarized below.
Summary Data Post Consumption Packaging Waste Recycling Green and Clean Programme 2012
ITEMS
TARGET
ACHIEVEMENT
Number of cities
10
10
Number of Areas
589
1,137
20,000
28,000
Number of Households
Number of Waste Banks
350
370
Volume of Waste Recycling (ton)
198
250
Waste Bank Program
We are providing comprehensive technical and
administrative support to the Waste Banks, as part of the
Green and Clean Programme. Through the Waste Bank
Programme, the community is encouraged to collect their
household waste, which are subsequently segregated and
sold to waste collectors.. Each household receives its part
of the revenues in a savings account. We are providing
comprehensive technical and administrative support to
the waste bank of Bank Sampah (Waste Banks). These
waste banks enable all households in a community to turn
in all their household waste in return for cash. Under the
Programme, 20 waste banks were established in Jakarta
and Surabaya in 2011.
In 2012, the Program gas aimed at collecting 198 tons of
household waste and at supporting the establishment of
350 waste banks. As the volume of waste collected reached
250 tons in 2012 with the establishment of 370 waste banks,
it was decided not to expand the number of waste banks.
In 2013 however, we aim to expand the number of waste
banks that we support to 700, reaching 30.000 households
in the 10 cities of our Green and Clean programme
intervention cities and collecting a total of 300 tons of waste.
This program not only helps to make communities and
neighbourhoods clean, it also helps thousands of households
with a modest but steady additional income.(EC 9)
Unilever Trendy Trashion
The Trashion (Trash Fashion) programme aims to answer
the need of tackling post consumer plastic waste while
empowering women to become waste entrepreneurs
by educating them to turn plastic packaging waste into
useful and attractive items with economic value.
The programme has been implemented in 6 cities and
involves 750 entrepreneurs in 73 SME centres.
Waste absorption from Trashion programme reached almost
4,000 kg with a turnover of around IDR 18 million in 2012.
Enhancing Livelihoods and Sustainable
Agriculture
In a global context, Unilever’s goal by 2020 is to have 100%
of our agriculture raw materials sourced from sustainable
sources, starting with 30% at 2012, and 50% at 2015.
In Indonesia, we undertook a number of activities in 2011
and 2012 to achieve this target.
61
An important milestone in 2011 was the broadening of
Our 2012 target was another 14 units in 8 intervention
our networking and relationship with critical partners in
districts, of which 13 units were implemented, and 1
the production chain. We started to apply a sustainable
unit established in the coconut sugar farmers’ area.
sourcing programme which is in line with the principles
of our Sustainable Living Plan. The programme is aimed
In 2013, we are preparing the closure of the black
at mapping, identifying and enabling greater control over
soybean farmers schools and will focus on a Farmers’
more critical members of the supply chain in the social,
School Alumni development programme to ensure
environmental and labour aspects.
the sustainability of the programme in the field. We
also plan to expand the SP program by 3 units in
Many of our raw materials come from farms and forests.
“penderes” (coconut sugar sapper) communities.
We need to verify that materials are sourced from
verifiable sustainable renewable sources or made from
recycled materials.
2. Training on Sustainable Agriculture Code to farmers
In 2011, trainings in 2 areas of black soybean farmers,
1. Sekolah Petani (SP) – Farmers School
Nganjuk and Pacitan, were conducted. In 2012,
SP is an educational activity with the purpose of
training was conducted involving eight cooperatives.
empowering Unilever Indonesia’s partner farmers.
The training was facilitated by Gadjah Mada University
In every SP unit, 14 participatory meetings are held
and involved the cooperative management of
to discuss topic related to cultivation, management,
eight regions: Nganjuk, Madiun, Ponorogo, Ngawi,
and research.
Trenggalek, Pacitan, Bantul, and Kulon Progo.
In 2011, we target to establish 15 units of SP in 8
In 2013, we aim for the establishment of an ICS (internal
districts where our black soybean farmer development
control system) at farmers’ level for the implementation
programme is located. Farmers were expected to
of our Sustainable Agricultural Code (SAC).
actively participate in the SP. We closed the year with
14 units established in those 8 districts. 1 unit could not
be implemented due to changes in the growing season.
Farmers School
Unilever Sustainable
Agriculture Code
(SAC)
The Unilever Sustainable Agriculture Code (SAC) covers 11
parameters that should be followed by Unilever’s suppliers
and comprise of parameters for agrochemicals, consumption
of fuel, water, biodiversity, energy, waste, social and human
capital, animal welfare (or animal wellness), value chain and
local economy. (4.8)
62
Targets in 2012 were to increase the number of
participants to 1,800 people, to increase the assets
of the groups by 20% compared to 2011, and to
conduct advanced communication skills trainings for
women farmers. In 2012, 3,324 women participated
in the programme, and the increase of group assets
was 155%. Representatives of groups participated
in communication trainings in Yogyakarta. Women
farmers were also trained in audio visual media skills.
Targets in 2013 are to replicate the programme in
one new region, Ponorogo, while in existing areas
emphasis will be on increasing the assets of the
3. TUTUR (Pembinaan Petani Perempuan) – Women
group and on making TUTUR a meeting place and
farmers coaching on communication and self
communication forum for all women farmers.
expression.
The purpose of this activity is to improve farmers’
lives through women empowerment. The women
empowerment program reaches our black soybean
and tea women farmers. In 2011, a total of 55 women
support groups were established, with members
Tutur was appreciated by the Indonesian government
as one of the best women empowerment programme
and awarded with the 2011 Indonesian Millennium
Development Goal Award.
amounting to 1,923. The increase in assets was 91%.
Communications skill training was conducted by
inviting representatives of all groups in Yogyakarta.
Women’s Groups – Two Success Stories
Ibu Indarsih is a female farmer and member of one of
was approached, an overview of the programme and
the women groups. She was trying to find a job when the
its objectives was explained to 30 women. 24 of them
period for harvesting, sorting and grading ended, while
agreed to join the group, but the rest refused since
her husband was a labourer in Surabaya. She decided
there was no funding aid. In the first year, the activity
to build a business and took a loan of Rp 100,000 from
was running well, many people especially women
the group to make ‘puli crackers’. The crackers were
wanted to know the group’s activities. Members
sold at the small shop of Ibu Suyati, another member
of the group explained that there would be health
of the group. After just two weeks, her business grew
information materials, entrepreneurship games
and other small shops owned by other members of the
with prizes, and savings and loans. In the second
group started ordering the ‘puli crackers’. After two
year, the group got more unified and it successfully
months, as her business was growing, she took out a
registered as a women farmer - KWT (Kelompok
bigger loan of Rp 200,000 from the group, to make not
Wanita Tani). Eventually village officials started to
only baked crackers, but also raw crackers (krecek). The
see the group’s potential. In every woman’s event in
group provided financing and marketing for Ibu Indarsih’s
sub-district or regency, the village head now always
products.
appoints a women empowerment group’s member
as the village’s ambassador. The village officials are
Ketawang Village was a challenging area for group
now also facilitating in requesting funding to the local
creation; and the female villagers were not involved in
government, for instance for the donation of soybean
development activities. After a key figure in the village
processing machinery.
63
Supply Chain Management (EC6)
Black Soy Beans
Unilever Indonesia’s Supply Chain and Procurement
Improving productivity of black soybean for our Bango
Policy promotes sustainability within the supply chain to
brand was the aim of the programme. To improve the
achieve greater transparency and accountability amongst
sustainability of our agricultural supplies and promote
internal and external stakeholders. We see our suppliers,
better living for farmers and our other business partners,
vendors, contractors and customers as our important
we conducted field schools in black soybean farmer
stakeholders. We continuously seek to understand
groups, and extensive trainings to farmers’ cooperatives,
customers’ needs and deliver quality and value-added
in 8 regencies. We established 150 hectares of black
products in our business operations.
soybean seed area and we work with 1.000 farmers as
seed growers.
We divide our suppliers into three categories: production
items (used in manufacturing our products, such as
To date, the Black Soybean Farmer Empowerment
packaging, ingredients, chemicals and commodities),
programme has improved and promoted the welfare of
logistics (product warehousing and distribution) and non-
more than 9,000 farmers and over 12,700 women farmers.
production items (such as machinery and equipment).
One of the key factors in the black soybean
The main criteria for selecting suppliers are alignment
empowerment program is livelihood improvement
with the best sustainability practices, competitive costs,
among the women farmers, hence their family livelihood.
quality and service levels.
The approach we use is strengthening the groups. Each
group, consisting of women living in close proximity,
In order to manage our supply chain risks, we have
was encouraged to start income generating activities,
implemented a Business Partner Code and Sustainable
based on the available local resources and potential.
Agriculture Code. The codes set out the guidelines on the
An important income generating activity is sorting and
minimum standards required for procurement policies,
grading of soybean, which increases the prices. Unilever
procedures and systems. Suppliers must accept and
also supports women farmer groups to obtain food safety
sign our Business Partner Code and Code of Business
approvals from the local authorities for the packaged
Principles prior to working with us and must comply with
food products of their home industry.
national labour laws. The code prioritises local sourcing.
However imported materials will be used if we cannot
In 2012 we created a partnership with one of Indonesia’s
obtain these materials locally.
largest banks to provide advance financing for
cooperatives to buy seeds.
Palm Oil
In 2008 we stated our commitment to procuring all our
There has been a significant increase of supply from 570
palm oil from sustainable sources by 2015. We have always
tonnes in 2011 to over 1,584 tonnes in 2012 which is an
sourced our palm oil from Indonesia as the largest palm
increase of 178%. The demand of Bango however still
oil producing country. With this in mind we support the
exceeds the supply.
Roundtable on Sustainable Palm Oil (RSPO) in Indonesia.
The majority of our palm oil are used in margarine, ice
cream, soaps and home care products. In 2012, three
years ahead of schedule, we managed to achieve our
target or using only palm oil certified by the RSPO.
64
Tea
laws and internationally accepted norms in the four
We have been in partnership with the Rainforest Alliance
key areas of: Labor standards, Health and safety,
since 2007 to pursue sustainably sourced tea by 2015.
Environmental compliance and Business integrity.
Our tea suppliers are in Indonesia, Kenya, Malawi, India,
Sri Lanka, Vietnam, China and Argentine. Several of
One aspect of responsible sourcing is adhering to the
these tea suppliers have been audited and certified by
Good Agricultural Practice Guidelines which has ten
Rainforest Alliance. The Rainforest Alliance certification
criteria to judge the sustainability of tea, which include
is based on the Sustainable Agriculture Network (SAN)
the preservation of soil fertility and nutrients and of
standards, which covers farmers welfare, environment,
biodiversity, the development of social and human capital
economy and ethics. One criteria is that tea estates must
and the local economy, the minimization of soil loss, pest
pay at least the minimum wage to their employees. At
management and the use of water and energy.
the moment the tea estates pay about 5% above the local
minimum wage for plantation. (EC5)
We also follow a number of other internal guidelines
which cover pesticide requirements, aflatoxin limits,
Unilever Indonesia is also in progress for qualifiying
allergen standards, benzoa limits, heavy metal limits and
all tea suppliers, in our USQS (Unilever Supplier
microbiological specifications for leaf tea.
Qualification System) Program, to be compliant not only
in our Unilever Quality standard, but also in Responsible
Regarding sustainable sourcing in agriculture we have
Sourcing aspect. Unilever’s Responsible Sourcing
been cooperating with one of our suppliers, PT Pagilaran,
Program is designed to ensure that suppliers have
and with Universitas Gajah Mada and NGO-Persada on
the capability to meet the requirements of Unilever’s
a number of projects in Farmer Field Schools to provide
Supplier Code. Unilever ’s Supplier Code requires
training on seedling regeneration, fertilising, technical
compliance with a set of standards aligned with national
assistance and women’s empowerment through business
development among women groups.
Tea Farmers
65
Supporting
Tea Planting in
Central Java
Tea plantations in Central Java province
In 2012, SL activities that have
play an important role in ensuring the
been successful in the Kaliboja
sustainability of black tea supply to PT
region will be replicated by
Unilever Indonesia.
tea farmers in the district of
Batang (District Bwang and
The implementation of CSR activities began
Reban), which is a development
in 2009, and is a collaboration between PT.
area under the PT. Pagilaran
Unilever Indonesia (via the Unilever Indonesia
Production Unit, Sidoharjo. The
Foundation), PT. Pagilaran, and the Faculty of
plantations in the region have
Agriculture of the University Gajah Mada. As
a large area of about 700 ha, so
initial results were modest, in 2011 the CSR
the overall improvement will
activity used a new approach in the form of
have a significant impact on
“Sekolah Lapangan” (Field School or SL). SL
the supply of raw materials of
activities were run for three months and at the
black tea. Besides being aimed
end of the activities, the results of the trainings
at increasing the production of
in tea cultivation, pest management, and
tea plantations, this program
cooperatives building as well as the quality of
also motivates the farmers to
the farmers plantation were evaluated.
continue tea planting, increases
their income, builds cooperation,
Tea production in the region increased by
and helps preserve local arts and
48%, tea supply to PT Pagilaran increased by
culture. (EC9)
67%, and the commitment of the society to
maintain the tea plantation and partner with
the tea processing industry is now high. Local
government officials (village heads, district, and
related agencies in the District of Pekalongan
and Banjarnegara) were also enthused.
66
We have created 80 champion farmers, whom we
The objectives of this initiative are:
expect to spread good agro practices in tea growing to
• To improve the quality and quantity of coconut sugar in
thousands of farmers. Currently 25 of the 48 plantations
line with consumer demand and Unilever Indonesia’s
in Indonesia which supply tea to Unilever have received
stringent standards
the Rainforest Alliance certification.
• To create mechanisms to secure the financial
independence of coconut sugar farmers to protect
Coconut Sugar
Coconut sugar is a main ingredient of our soy sauce
product, Kecap Bango. We have maintained a high
quality sourcing while coping with the increase of
their well being
• To increase farmers’ capacity to produce sustainable
coconut sugar of higher quality
• To develop knowledge about coconut sugar culture.
demand for coconut sugar. Since mid-2009, Unilever
Indonesia introduced an initiative to safeguard the
We carried out a pilot project in coconut sugar and
economic development of coconut sugar farmers. This
planted 6,000 seedlings in 2012. In total we have planted
initiative began in Pangandaran and has been extended
over 39,000 coconut tree seedlings since 2009. We are
to Sukabumi and Lampung. At the moment we have
also carrying out a programme for fertilizing 200,000
around 15,500 farmers under this programme and we
coconut trees starting in late 2012.
continue to educate our farmers through meetings,
multimedia and booklets on how to maintain the quality
Our aim is to increase the yield, and with it the income
of their products. Our suppliers have also been involved
for farmers, of coconut sugar by 20% in the coming
in various programmes for their farmers, including
years. We are also strengthening farmer groups and
rewards and benefits, accident insurance and training
helping make the climbing of the trees safer.
and we have made a road map for compliance with our
sustainable agricultural code (SAC).
Coconut sugar farmer
67
Safe School Campaign
Humanitarian Aid
As part of our community development, Unilever
constantly participates in social activities such as
disaster prevention, rehabilitation activities and
2012
• Supporting the publication of books for the Safe
School Campaign, with Yayasan Skala
• Supporting Training on disaster risk reduction
emergency relief. We are actively involved as partners
for traders at the Pasar Pakem, Yogyakarta, and
in the National Platform for Disaster Risk Reduction
renovation of the Pasar Pakem (after the Merapi
(Planas PRB), BNPB (National Agency for Disaster
volcano eruption)
Management) as well as other social organizations.
• Donation for Padang Flood Victims
Planas PRB is a national coordinating mechanism
• Donation for Palu earthquake victims
for Disaster Risk Reduction (PRB) by accommodating
• Donation for Flood Relief preparation program with ACT.
interests of multi-stakeholders and serving as advocate
at different levels. This participation is part of our drive to
increase social awareness of the importance of planning
and implementation of effective disaster risk reduction. In
the execution of this programme, Unilever works closely
with NGOs, government agencies, and business partners
in various regions. In 2011 and 2012 we conducted the
following activities:
2011
• Supporting Safety School Campaign events with
Yayasan Skala and Yayasan Kerlip
• Supporting Jakarta Flood victims via ACT Aksi Cepat
Tanggap – an NGO)
• Providing 1,000 units of Pureit for disaster victims
through partner NGOs
Books for the Safe
School Campaign
68
OUR CONTRIBUTION TO ECONOMIC DEVELOPMENT
OUR CONTRIBUTION
TO ECONOMIC
DEVELOPMENT
Economic Performance Indicators
In general, the creation and
distribution of economic value
is based on the revenue and
expenditure of the operational
activities of Unilever. The increasing
national economic growth has
expanded the range of consumer
goods offered to the market.
69
In 2012, Unilever presented an outstanding performance
Total net profits before income tax moved up by 16.2
improvement. The revenue increased by 16% from Rp
percent to Rp 4,839 billion in 2012 from Rp 4,164 billion
23,469 billion in 2011 to Rp 27,303 billion in 2012, despite
in 2011.
intense competition. This growth is supported by an
increase in the volume growth from two principal product
During 2012 and 2011, Unilever successfully increased
divisions, Home and Personal Care with total sales of
its economic value to Rp 27,384 billion in 2012, up from
Rp 17,200 billion (2011) and Rp 19,900 billion (2012)
Rp 23,615 billion in 2011. The company then distributed
and Foods & Beverages with total net sales of Rp 6,300
an amount of Rp 22,545 billion in 2012, up from and
billion (2011) and Rp 7,400 billion (2012). This growth was
Rp 19,451 billion in 2011, while the economic value
driven by capacity expansion in manufacturing plants and
increased to Rp 4,839 billion in 2012, up from Rp 4,164
product innovation.
billion in 2011.
70
OUR CONTRIBUTION TO ECONOMIC DEVELOPMENT
Direct Economic Value Generated and Distributed (EC1)
(in billions of Rp)
2012
2011
27,303
23,469
38
33
Direct Economic value generated
Revenues
Finance Income
Other income
Total Direct Economic value generated
43
113
27,384
23,615
19,551
16,981
Economic Value Distributed:
Operating costs
Employee wages and benefits
1,261
996
Payment to government
1,628
1,410
69
27
Payment to providers of capital
Community investments
Total Economic Value Distributed
Economic Value Retained
36
37
22,545
19,451
4,839
4,164
Under the Unilever Indonesia Employee Benefits
The total long-term employee benefits obligations in
Scheme, the pension benefits have been divided into
2012 and 2011 were Rp 391 billion and Rp 256 billion,
two programs: a defined benefit pension plan and a
respectively. (EC3)
defined contribution pension plan. A defined benefit
plan is a pension that defines an amount of pension
During 2012 and 2011 Unilever did not receive any
benefit that an employee will receive on retirement.
incentive including financial assistance from the
For all permanent employees who were hired before 1
government for any operations or business activities.
January 2008, Unilever has a defined benefit pension
(EC4)
plan covering all of those employees who have the right
to pension benefits.
It is Unilever policy to maintain fair and competitive
remuneration compensation packages for its employees.
All permanent employees who were hired from 1 January
For non-managerial staff, based on the market factors
2008 onwards are covered by a defined contribution
and a job grading system, the company pays one
managed by a Defined Contribution Pension Fund. A
minimum salary for all factories which is based on the
defined contribution plan is a pension plan under which
Collective Labour Agreement as signed with the Trade
the Company pays fixed contributions into a separate
Union representing all employees. All third party workers
entity. The company is also required to provide a
are being ensured that their salary complies with
minimum amount of pension benefits in accordance with
minimum wage as stipulated by the government (UMR).
Labour Law No. 13/2003 which represent an underlying
There is no difference in salary levels between male and
defined benefit obligation. The company provides other
female employees. (EC5)
long-term employee benefits such as jubilee and long
leave benefits.
71
One of the Unilever core values is to support the
More product specific supplier requirements are
sustainable local businesses, which is reflected in a
described elsewhere in this report. (EC6)
Business Partner Code and a Sustainable Agriculture
Code), and in the practice and transactions with
Unilever’s business is subject to risk implicated by
local suppliers. Through the CoBP, Unilever plays an
climate change. Extreme weather changes and natural
active role in the expansion of the local economy by
disasters have been affecting the production of the
encouraging local skills development and providing
commodities that are the main materials for our
business opportunities and a platform for technology
products, such as the black soybean. The physical impact
improvement. In 2011, Unilever sourced raw materials
of climate change may result in increased financial costs
and packaging material from 532 suppliers, and in 2012
such as higher distribution costs for operations in areas
from 572 suppliers.
that are prone to floods or other natural events. Unilever
has continuously improved its assessment on how to
Our spending on local suppliers increased from 7.5
minimize the risks of extreme weather events and the
trillion in 2011 to almost 8.5 trillion in 2012.
potential financial impact on the operations. (EC2)
It is our policy that our suppliers must:
In 2012 and 2011, Unilever through YUI invested a
• provide competitive advantage to Unilever to meet its
total of Rp 37 billion and Rp 36 billion respectively for
goal of serving consumers at cost effective price and
significant investments and support on communities and
payment terms
local economies (EC8) of which more details and impact
• meet the Responsible Sourcing Audit requirements,
set by Unilever;
• be able to partner to for growth;
• be able to bring innovative ideas and products to
Unilever to help serve the consumers;
• be committed on Sustainability goals of Unilever;
• bring outstanding service mindset.
analysis are described in this report, which include
the paragraphs in the chapter Enhancing Livelihoods,
Sustainable Agriculture and Health & Well being.
72
PRODUCT
RESPONSIBILITY
73
Product Safety
Because we produce goods which are directly consumed (for foods products), we must assess each life cycle stage of the
product in accordance to safety and health matters. At the moment our portfolio has been assessed for compliance with
the procedures as outlined below (PR1)
YES
Product Design and Concept
v
Research and Development
v
Certification
v
Production and Manufacturing
v
Marketing and Promotion
v
Supply and Storage Distribution
v
Service and Use
v
Dispose, Reuse or Recycle
v
NO
74
Responsible Marketing and
Communication
On pack information
Unilever Indonesia is dedicated to offering safe, quality
cross-functional team evaluation on various aspects of
products and to marketing them responsibly. We add
compliance. The Local Product Compliance Approval
vitality to life. We translate this mission into products that
(LPCA) procedures involves various departments and
address consumer needs, insights, interest and social
aims to ensure regulatory compliance. The information
triggers in society. Due to the impact our communications
on the packaging of products being launched and
have on daily life and consumption habits of Indonesian
marketed must be accurate, well supported and includes
people, we observe a series of internal and external
a correct ingredient list, instructions for use
policies and regulations that define and restrict the
and precautionary notes. (PR6)
All of our product packaging undergoes an internal
content and targets of our product advertising.
Responsible Communication
As a reference, we adopt the Unilever’s Global Food
We aim to promote positive behavioural changes through
and Beverage Marketing Principles which provide
our brands’ social missions because we believe that
guidance on the communication of our major portfolios.
products with good hygienic benefits may not deliver
This documents mandates the communication on our
the maximum benefits if consumers do not use them
products to be in accordance with their nutritional
in a correct way. Our Pepsodent and Lifebuoy brands
profile, the description of product qualities to be based
are amongst the brands that strive to encourage our
exclusively on scientific data, and the advertising of
consumers to brush their teeth and wash their hands
our food and beverages to be in accordance with their
from an early age for the sake of their own health
positioning and relevance to consumer diets. (PR6)
and well being in the future. Highlights of these two
brand social missions can be read in more detail in the
Improving Health and Well Being Section.
75
Marketing to Children
During the reporting period we received one incident
We apply a standardized provision for marketing to
on non-compliance with our regulations and voluntary
children. For example, when marketing Wall’s ice cream
codes which concerns product and service information
products to children we only target children aged 6-12.
and labelling. However no fine was issued and we have
None of our marketing communications target children
not been taken to court regarding this matter. Another
below the age of six. To support a healthy diet for children,
incident involved non-compliance with our marketing
we ensure that our Wall’s products comply with the
communications for one of our beverage products. Two
allowed limits of saturated fat, trans fat, sodium and sugar.
non-compliances occurred but we only received a warning
which we have resolved accordingly. (PR2, PR4, PR7)
Suara Konsumen (Consumer Line)
The Company handles customer complaints and inquiries
through a dedicated consumer care service, ‘”Suara
Konsumen”. Through Suara Konsumen, we seek to
strengthen the relationship between our company and
our consumers and customers by responding to their
concerns and expectations regarding our products, and
by increasing their satisfaction with our products. In
2011, of a total 48,726 instances of feedback, by far more
than 90% were inquiries. All complaints and inquiries
have been dealt with satisfactorily.
Unilever factory
76
people: the heart of our business
PEOPLE: THE HEART
OF OUR BUSINESS
77
People management at Unilever Indonesia
aims to ensure the attraction and retention
of the best professionals in the country,
investing in a healthy, accident free working
environment that favours the development of
our employees.
Our People
We understand that our employees are the foundation
and drivers of our success. Accordingly, ‘people’ is one of
our strategic focus areas. Creating value through - and
for - employees by attracting, developing and retaining
the globally competitive people necessary to implement
our strategy and meet our growth targets remains one of
the group’s most vital attributes. Based on the USLP, we
have committed ourselves to many initiatives to improve
our working environment, such as our diversity policy
– focused on encouraging more women in leadership
roles – the creation of new benefits, the reduction in
accident rates and actions to retain professionals with
career potential. At this moment the Board of Directors
itself consists of seven male and three female directors.
The appointment of these members is based on their
capability and is free from any unfair judgement or bias.
Likewise in recruiting new staff members we base our
decisions on their capability. We do not have a special
policy on local hiring and consider our area of operations
to be Indonesia. The majority of our employees are
Indonesian.
We have a strong performance culture. This is embedded
in our operations and the stringent targets we set each
year. The Performance Development Plan (PDP) is an
annual performance assessment that is applied to all
employees. This helps employees understand where
their management competencies lie and identify areas
for improvement. A Key Performance Indicator (KPI)
matrix is used to quantify our financial and non-financial
targets. This matrix measures each employee’s success
in reaching these targets.
78
Employee Profile
Our workforce encompasses employees in diverse areas, such as factory, sales, and administration, spread
throughout the country.
NUMBER OF EMPLOYEES BY EMPLOYMENT LEVEL AND REGION BROKEN DOWN (LA1)
CLASSIFICATIONS
Number of Employee
2012
2011
MEN
WOMEN
TOTAL
MEN
WOMEN
TOTAL
5,379
1,068
6,447
5,090
937
6,027
Total
6,447
6,027
By Employment Level
Management
Non Management
869
429
1,298
785
342
1,127
4,510
639
5,149
4,305
595
4,900
Total
6,447
6,027
By Employment Region
Headoffice
230
387
617
228
345
573
Unilever Food Solutions
60
26
86
57
24
81
Customer Services and
624
236
860
510
173
683
Cikarang Factory
3,464
378
3,842
3,295
357
3,652
Rungkut Factory
1,001
41
1,042
1,000
38
Key Account Mgt
Total
6,447
1,038
6,027
79
Diversity in Focus
Unilever established diversity age targets of workers
Unilever Indonesia has been seeking to improve its
especially for females in management and co-worker
social and gender diversity indicators. We started to map
positions. In 2011 and 2012, the workforce consists
diversity within the company and to fix future goals and
of average 17% female employees, while 32% of
targets. The main advances have been in the inclusion
management positions are held by women. Three women
and development of women in leadership roles (LA13).
are members of the board. In the diversity of age, in
We believe that equality is crucial in our company, so
2011, 57% of our staff is below 30 years old, 26% % is
there are no disparities in pay between women and men.
between 30 and 40 years old and 17 % is over 40 years
The ratio of basic salary and remuneration of men to
old. In 2012, 57% of our staff is below 30 years old, 26%
women is 1:1. (LA14)
is between 30 and 40 years old and 16% is over 40 years
old. Our efforts to increase the diversity in every level of
Performance Culture
the organization will continue and we expect the progress
As part of Unilever’s strong pillar of Great People, the
we’ve made to be sustainable. The table below shows the
company has a performance culture that has evolved
Composition of Governance Bodies and Employees in our
to include annual target setting, performance ratings,
company in 2011 and 2012. (LA13)
leadership differentiation tools, standards of leadership
and reward management.
Unilever develops five assessments to measure
employees’ individual and team performance by
establishing annual target setting, performance ratings,
a leadership differentiation tool, and standard leadership
and reward management. Unilever conducted regular
performance reviews for 6,027 employees in 2011 and
and 6,447 employees in 2012, , accounting for 100% of the
total workforce in management and non-management
level. (LA12)
80
Composition of Governance Bodies and Employee by Gender and Age Groups (LA13)
CLASSIFICATION
NUMBER OF
AGE GROUP (MALE)
AGE GROUP (FEMALE)
EMPLOYEE 2012
MEN
WOMAN
TOTAL
<30
30-40
>40
<30
30-40
>40
Management
869
429
1,298
314
351
204
229
131
69
Non-management
4,510
639
5,149
2,828
1,104
578
334
182
123
Total
5,379
1,068
6,447
3,142
1,455
782
563
313
192
CLASSIFICATION
NUMBER OF
AGE GROUP (MALE)
AGE GROUP (FEMALE)
EMPLOYEE 2012
Pria
Wanita
Jumlah
<30
30-40
>40
<30
30-40
>40
Management
785
342
1,127
274
296
215
160
107
75
Non-management
4,305
595
4,900
2,572
974
659
308
160
127
Total
5,090
937
6,027
2,846
1,270
874
468
267
202
81
New Hires and Employee Turnover
We have a low turnover compared to previous years and believe this is a result of providing a good working environment,
a competitive reward system and challenging employment opportunities.
New Hires and Employee Turnover (LA2)
CLASSIFICATION
2012
2011
MEN
WOMEN
TOTAL
MEN
WOMEN
TOTAL
1,003
189
1,192
1,360
244
1,604
< 30
938
167
1,105
1,223
213
1,436
30 - 40
62
22
84
126
29
155
>40
3
-
3
11
2
13
Total
1,003
189
1,192
1,360 244
1,604
Total New Employee Hires
New Employee by Age
New Employee by Region
Headoffice
33
68
101
24
65
89
Unilever Food Solutions / Mendut
13
3
16
19
7
26
Customer Services and Key Account Mgt
152
71
223
137
43
180
Cikarang Factory
718
44
762
1062
117
1179
Rungkut Factory
87
3
90
118
12
130
Total
1,003
189
1,192
1,360
244
1,604
183
49
232
159
55
214
Employee Turnover
Voluntary
Retirement
70
3
73
92
14
106
Other (incl dismissal, death)
221
28
249
196
27
223
Total
474
80
554
447
96
543
82
Local Hiring
Unilever provides equal opportunity to everyone to work and become a part of Unilever. There is no policy specifying
that Unilever on the first hand must employ locally. However, Unilever tries to ensure that employees are hired from the
local community. With regard to the recruitment of senior management, there are no specific policies taking account
of the place of residence of the person concerned. However the recruitments is based on the personal capability and
qualifications of these members. The table below shows the diversity in Unilever’s workplace during 2012 and 2011.
(EC7)
Diversity of Employment
2012
Head Office
Unilever Food Solutions
2011
LOCAL
EXPAT
LOCAL
EXPAT
605
12
561
12
84
2
78
3
860
0
683
0
Cikarang Factory
3841
1
3652
0
Rungkut Factory
1042
0
1038
0
Total
6447
0
6012
15
Customer Services and Key
Account Mgt
Health and Safety
Unilever is committed to conducting business activities
in a manner that protects the health and safety of its
employees, contractors, customers and communities.
Risk and accident prevention and respect for human
life are incorporated into work routines. Occupational
health and safety in all our operations are based on the
Framework Standards System used globally by Unilever.
This is on par with the internationally recognized ISO14001
and OHSAS18001. In order to make sure the Health and
Safety of our employees are being watched over carefully,
Unilever Indonesia has a Central Safety, Health and
Environment Committee (CSHEC) which is led by Unilever
Indonesia’s President Director and consists of seven
sub-committees (USHEC). Each sub-committee is led
by a director. The Committee comprises of 194 employee
representatives, which is equivalent to 4 percent of the
total employees. (EC7, LA6)
83
Rates of Injury, Occupational diseases, lost days and absenteeism and total number of work
related fatalities, by region and by gender) (LA7)
No
Location
Men
Total
Employee
Injuries
Women
Occupational
diseases
Medical
Aid
Lost
Tim
Disabling
Injury
Absentee
rates
Total
Employee
Injuries
Men and Women
Occupational
diseases
Medical
Aid
Lost
Tim
Disabling
Injury
Absentee
rates
Total
Employee
Injuries
Medical
Aid
Lost
Time
Disabling
Injury
Occupational
diseases
Absentee
rates
Year
2012
Headoffice
230
0
0
0
0
0
387
0
0
0
0
0
617
0
0
0
0
0
Unilever Food
Solutions
60
0
0
0
0
0
26
0
0
0
0
0
86
0
0
0
0
0
Customer Services
and Key Account
Mgt
624
0
0
0
0
0
236
0
0
0
0
0
860
0
0
0
0
0
Cikarang Factory
3464
15
1
0
0
0
378
0
0
0
0
0
3842
15
1
0
0
0
Rungkut Factory
1001
5
1
0
0
0
41
0
0
0
0
0
1042
5
1
0
0
0
Headoffice
228
0
0
0
0
0
345
0
0
0
0
0
573
0
0
0
0
0
Unilever Food
Solutions
57
0
0
0
0
0
24
0
0
0
0
0
81
0
0
0
0
0
Customer Services
and Key Account
Mgt (also in AREA)
510
0
0
0
0
0
173
0
0
0
0
0
683
0
0
0
0
0
Cikarang Factory
3295
10
7
0
0
0
357
0
0
0
0
0
3652
10
7
0
0
0
Rungkut Factory
1000
1
4
0
0
0
38
0
0
0
0
0
1038
1
4
0
0
0
Year
2011
Unilever has implemented its Health and Safety systems
Unilever is also aware of the health and safety of its
in its manufacturing sites, called Medical Occupational
employees, their families and communities. Regularly
Health. These systems are aligned with the OHSAS
the company organizes a number of education, training,
(Occupational Health and Safety Assessment System)
prevention/risk control and treatment programs. These
18001. Together with the representative of employees,
issues include diabetes, cholesterol, cancer, HIV and
we established the Unit Safety Health and Environment
other serious illnesses. Unilever also distributes reliable
Committee (USHEC). Unilever is responsible for
information on managing health and offers prevention
protecting its people from work-related hazards to their
programmes such as a vaccination programme, and a
health and to promote, maintain and enhance the health
day care and nursery programme (for female employees
of its people so as to maximize their fitness to work safely
who are breast feeding). (LA8)
and effectively. The sustained safety results reflect a
culture shift within the company towards an injury-free
Unilever provides its employees with comprehensive
workplace. In 2011 and 2012, total injury cases were 22
and competitive benefits programme to meet the needs
and no fatalities occurred. (LA7)
of employees and their families. The benefits including
health insurance, parental leave, retirement provision,
religious holiday allowance, and other benefits for
84
50
training sessions
with more than
2000 employees
every year
employees and members of their immediate families.
The benefits are categorized based on the employment
status of the employees. (LA3)
The parental leave is organized by the company
regulations. The maternity leave should commence one
month before the expected date of birth of the child,
and that the employee may not return to work for two
months after the birth of the child. In 2012 and 2011, the
100%
total number of employees who were entitled to parental
employees are
covered by the
Eleventh Collective
Working Agreement
(PKB XIX)
employed twelve months after their return to work. (LA 15)
leave were 1058 and 937 respectively. The total number
of employees who returned to work after parental leave
ended was 20 in 2012 and 7 in 2011. All of them were still
As of the end of 2012, 100 % of employees are covered
by the Eleventh Collective Working Agreement (PKB XIX),
which was signed on June 1, 2011. PKB has received
registration determination with the Directorate General
of Industrial Relations and Worker Social Security,
Ministry of Manpower and Transmigration through
Decree No. B.78/PHIJSK-PKKAD/PP&PKB/VI/2011. This
agreement clarifies the rights and responsibilities of the
employer, employees and the union. (LA4)
For significant operational changes that may impact
employees, such as facility consolidations or closings,
Unilever complies at a minimum with local mandates and
applicable collective bargaining agreements. A minimum
of 30 days’ notice is provided. (LA5)
The opportunity to develop and advance employee’s
career is at least as important as the well-regarded
compensation, benefits and employee programs
at Unilever. The company offers internal and
external extensive and globally accessible training
and development training at the individual, team,
organizational and leadership levels. In 2011 and 2012,
the Mega Mendung Residential Learning Center has been
hosted more than 50 training sessions with more than
2000 employees every year. The Learning Management
System (LMS) is available online to all employees and
provides world class courses and resources. In addition,
Unilever tracks employee training and education
specifically by employee category and gender.
85
Learning and capability development is one of the main ways of helping employees to boost their own employability. The
three most effective methods of learning for Unilever employees are developed through experiences, relationships and
formal programs. Most of the learning experience is gained through their daily responsibilities at Unilever with business
projects, coaching from the Line Manager and training programs. During 2011 and 2012, the training activities that have
been held by Unilever consist of various forms. Training time for management and non-management was 20 hours per
employee per year on average, while the number of trainees reached 6,027 and 6,447 employees respectively. (LA10)
Training and Training HouRs, by Gender and Employee Category (LA10)
Year 2012
EMPLOYEE CATEGORY
Management
Non Management
TOTAL TRAINING HOURS PER YEAR
TOTAL TRAINING HOURS PER
EMPLOYEE PER YEAR
MEN
WOMEN
TOTAL
MEN
WOMEN
TOTAL
39,383
29,582
68,965
83
91
175
158,677
3,922
162,599
35
30
65
Year 2011
EMPLOYEE CATEGORY
Management
Non Management
TOTAL TRAINING HOURS PER YEAR
TOTAL TRAINING HOURS PER
EMPLOYEE PER YEAR
MEN
WOMEN
TOTAL
MEN
WOMEN
TOTAL
39,383
29,582
68,965
83
52
175
138,639
3,358
141,997
35
31
66
Remuneration
In terms of pay between males and females, the
company’s pay policies are designed to promote equal
pay for equal contribution, capability and experience.
There is no difference between pay ratios by virtue of
gender. In its realization, the differences are due to rank
of employment, performance assessment, position/title
and time of services. (LA 14)
86
most significant awards received during 2011-2012
MOST SIGNIFICANT
AWARDS RECEIVED
DURING 2011-2012
Capital Market Awards
Best Corporate Governance
Unilever Indonesia’s policies, programs and other
activities in areas related to sustainability were
recognized in a long list of awards, of which the
most significant are set out below.
Awards 2011
International
• Asia’s Best Managed Companies 2011 from Finance
Asia, “Best corporate Social Responsibility (1st rank),
• International Business Award 2011 – Stevie Award,
Maternal Health (Women Farmers Program on Black
for Your Life” in category: CSR Program of the Year
Soya Bean), Runner Up for Program Care for your life:
• International Business Award 2011 - Stevie
Award, Distinguished Honoree for Unilever
HIV/AIDS Prevention Program.
• Ranking Companies in ASIA: 1st Rank Asia
Sustainability Rating (ASR)
Indonesia Foundation (UIF)’s Community Relations
• Best Managed Company 2011 in the Category: Overall
Campaign: UIF’s 10thAnniversary: “Small Actions,
Best Managed Company in Indonesia - Large Cap,
Big Difference”in category: Communications or PR
ASIAMONEY
Campaign of the Year –Community Relations
Indonesia
Distinguished honoree for Jakarta Stop AIDS - Care
for Your Life for CSR Program of the Year
•
Reduction Program via Unilever Green and Clean)
• MDG Award Best CSR Program for Promoting
Distinguished Honoree for Jakarta STOP AIDS “Care
(Asia, Australia and New Zealand)
•
• Charta Peduli Indonesia 2011 ( Top Disaster Risk
Distinguished honoree for Community Relations
UIF, 10th anniversary “Small Actions Big
Difference” category Communications and PR
Campaign of The Year
87
PROPER Award
Indonesia Sustainability Reporting Award
Asia’s Best Employer Brand Awards
SRI-Kehati Appreciation
Awards 2012
International
• Asia’s Best Companies 2012 by Finance Asia
• 2nd Asia Best CSR Practices Awards 2012 by CMO Asia
Best Managed Company, Best Corporate Governance,
Health and Poverty Alleviation
Best Corporate Responsibility (1st runner-up), Most
Committed to a Strong Dividend Policy (ranked 1st)
• 3rd Asia’s Best Employer Brand Awards by
Category Community Development, Concern for
• Stevie Award 2012 by The Stevie Awards
Category 1st : Communications or PR Campaign/
Universum
Program of the Year - Reputation/Brand Management;
Award for Talent Management, Award for Innovation
Credibility Through Jakarta Food Editors Community
(SILVER STEVIE WINNERS)
in Recruitment, Award for Excellence in Training and
Award for Managing health at work, Won the overall
Category 2nd : Corporate Social Responsibility
Award of Asia’s Best Employer Brand 2nd Most
Program of the Year in Asia, Australia and New
Attractive Employer in FMCG (for both Business and
Zealand; Healthy Market - a representation of
Engineering Students)
Indonesia wet market in preserved traditional value
(BRONZE STEVIE WINNERS)
Indonesia
• Penghargaan Peduli Gizi 2012 (Nutrition Care
Awards), Persagi Pangan dan GAPMMI; Inovasi produk
margarin Blue Band Gold (Product innovation Blue
Band Gold)
• Indonesia MDG Awards 2011, Office of Special Envoy
of The President of The Republic of Indonesia on
MDGs (Utusan Khusus Presiden Republik Indonesia
untuk MDGs); 1. Winner: Women Farmer Development
Program (BSB), UIF Program at Jogja; 2. Runner up:
Care for Your Life - HIV/AIDS Prevention Program
• WQA-GCSS (Worldclass Quality Achievement - Global
Customer Satisfaction Standard) 2012; SWA & MARS
- 1. Pepsodent (Pasta Gigi), 2. Pond’s (Pembersih
Wajah)
• SRI-Kehati Appreciation: One of 25 Listed Company
in SRI_Kehati Index 2012 - SWA & BEI – Kehati,
SRI = Sustainable Responsible Investment, KEHATI
= Keragaman Hayati (Indonesian Biodiversity
Foundation)
• Indonesian Customer Satisfaction Award (ICSA) 2012
by Majalah SWA dan Frontier Consulting Group
• Anugerah Peduli Pendidikan 2012 by Kementerian
Pendidikan dan Kebudayaan ICD
• Best Corporate Governance 2012 by BCD, Category:
Role of Stakeholders
• PROPER Award 2012 by Kementerian Lingkungan
Hidup: Peringkat Gold for Rungkut Factory, Peringkat
Green for Cikarang Factory
• Indonesia Sustainability Reporting Award (ISRA)
2012 by NCSR (National Center for Sustainability
Reporting): 1. Best Sustainability Report 2010 in
Group B – Category Industries, 2. Best Website 2012
(Runner Up 2)
• AIDS Award 2012 – Gold Winner by Menteri Tenaga
Kerja dan Transmigrasi RI for Surabaya Rungkut: HIV/
AIDS at workplace (2.10)
88
89
90
GLossary
AFDOKGI
Association of Dentistry Faculty
APJP
Asosiasi Perusahaan Jalur Prioritas (Association of Priority
Lane Companies)
BPNB
National Agency for Disaster Management
COBP
Code of Business Principles
COD
Chemical Oxygen Demand
GRI
Global Reporting Initiative (GRI-G3) Guidelines
GAIN
Global Alliance for Improved Nutrition
GAPMMI
Gabungan Pengusaha Makanan dan Minuman Indonesia
(Association for Food and Beverage Products)
LMS
Learning Management System
PDGI
Indonesian Dentist Association
PLANAS PRB
National Platform for Disaster Risk Reduction
PERKOSMI
Persatuan Perusahaan Kosmetik Indonesia (Association of
Indonesian Cosmetic Industries)
UNWFP
United Nations World Food Programme
USLP
Unilever Sustainability Living Plan
SAC
Unilever Sustainable Agriculture Code
WWTP
Waste Water Treatment Plant
91
GRI Content
Index (3.12)
1. STRATEGY AND ANALYSIS
Report from the Board of Commissioners
Page
1.1
Report from the Board of Commissioners
and Board of Directors
11
Description of key impacts, risks, and
opportunities
36
1.2
2. ORGANIZATIONAL PROFILE
2.1
Name of the organization
3.7
13, 24
2.2
2.3
2.4
2.5
Primary brands, products, and/or servic
Operational structure of the organization
Location of organization’s headquarters.
Number of countries where the
organization
12, 16, 21
2.6
2.7
2.8
2.9
Nature of ownership and legal form.
Markets served
Scale of the reporting organization
Significant changes during the reporting
period
13, 24
2.10
Awards received in the reporting period
13, 16, 29
16
16, 21
21
16, 21
16
87
3. REPORT PARAMETERS
Report Profile
3.1
Reporting period
3.2
Date of most recent previous report
3.3
Reporting cycle
3.4
Contact point
Report Scope and Boundary
3.5
3.6
Process for defining report content
Boundary of the report
4
4
4
4
6
4
Limitations on the scope or boundary of
the report
3.8
Basis for reporting on joint ventures,
subsidiaries, etc.
3.9
Data measurement techniques
3.10
Effect of any restatements of information
3.11
Significant changes from previous
reporting periods
GRI Content Index
3.12
Table identifying the Standard
Disclosures in the report
Assurance
3.13
4
4
4
4
4
4
Policy and current practice on external
88
assurance
4. GOVERNANCE, COMMITMENTS, AND ENGAGEMENT
Governance
4.1
Governance structure of the organization 29
4.2
Status of the Chair of the Board
29
4.3
Independent and/or non-executive Board 29
members
4.8
Mission, values, codes of conduct, and
25, 61
principles
Commitments to External Initiatives
4.12
Externally developed economic,
28, 33
environmental, and social charters,
principles, or other initiatives
4.13
Memberships in associations
30
ECONOMIC PERFORMANCE
Aspect: Economic Performance
EC1.
Direct economic value generated and
70
distributed
EC2.
Financial implications due to climate
71
change
EC3.
Defined benefit plan obligations
70
EC4.
Financial assistance received from
70
government
92
GRI CONTENT INDEX
Aspect: Market Presence
EC5.
Standard entry level wage compared to
local minimum wage
EC6.
Spending on locally-based suppliers
EC7.
Senior management hired from the local
community
Aspect: Indirect Economic Impact
EC8.
Infrastructure investments and services
provided for public benefit
EC9.
Indirect economic impact
ENVIRONMENT PERFORMANCE
Aspect: Materials
EN1.
Materials used
EN2.
Recycled materials used
Aspect: Energy
EN3.
Direct energy consumption
EN4.
Indirect energy consumption
EN5.
Energy saved due to conservation and
efficiency improvements
EN6.
Initiatives to provide energy-efficient or
renewable energy
EN7.
Initiatives to reduce indirect energy
consumption and reductions achieved
Aspect: Water
EN8.
Total water withdrawal
EN9.
Water sources significantly affected by
withdrawal of water
Aspect: Emission, Effluents, and Waste
EN16.
Total direct and indirect greenhouse gas
emissions
EN18.
Initiatives to reduce greenhouse gas
emissions and reductions achieved
EN19.
Emissions of ozone-depleting substances
EN20.
NOx, SOx, and other significant air
emissions
EN21.
Total water discharge by quality and
destination
EN22.
Waste and disposal method
EN23.
Total number and volume of significant
spills
EN24
Hazardous waste
EN25.
Biodiversity value of water bodies
Aspect: Products and services
EN26.
Initiatives to mitigate environmental
impacts
EN27.
Percentage of products sold and their
packaging materials that are reclaimed
Aspect: Compliance
EN28.
Fines and non-monetary sanctions
64, 70
63, 71
82
71
65
48
53
51
51, 52
52
50
51
53
53
53
57
51, 57
53, 54
49
55
51
55
49
Aspect: Overall
EN30.
Total environmental protection
expenditures
SOCIAL PERFORMANCE
Labor Practices and Decent Work
Performance Indicators
Aspect: Employment
LA1.
Profil of workforce
LA2.
Recruitment and Employee turnover
LA3.
Benefits provided to part-time employees
Aspect: Labor/Management Relations
LA4.
Collective bargaining agreements.
LA5.
Notice period for operational changes
Aspect: Occupational Health and Safety
LA6.
Health and safety committees.
LA7.
Rates of injury and fatalities.
LA8.
Education, training, counseling,
prevention, and risk-control programs
in place
Aspect: Training and Education
LA10.
Average hours of training per year
LA11.
Training Programs to support the
continued employability of employees.
LA12.
Employees’ performance and career
development reviews.
Aspect: Diversity and Equal Opportunity
LA13.
Employees’ diversity.
Aspect: Equal Remuneration for Women and Men
LA14.
Ratio of basic salary of men to women.
LA15.
Return to work and retention rates after
parental leave by gender
HUMAN RIGHTS PERFORMANCE INDICATORS
Aspect : Investment and Procurement Practices
HR2.
Human right screening of suppliers and
contractors
Aspect: Freedom of Association and Collective
Bargaining
HR5.
Rights of freedom of association
Aspect: Child Labor
HR6.
Child labor
48
78
81
84
84
84
82
83
83
85
79
79-80
85, 79
84
33
33
33
SOCIETY PERFORMANCE INDICATORS
Aspect: Local Communities
SO1.
Impacts assessment and development
program
Aspect: Corruption
SO2.
Business units analyzed for risks related
to corruption
9
33
93
SO3.
Employees trained on anti-corruption
policies and procedures.
SO4.
Actions taken in response to incidents of
corruption.
Aspect: Public Policy
SO5.
Participation in public policy development
.
SO6.
Contribution to political parties,
politicians, and related institutions.
Aspect: Anti-Competitive Behavior
SO7.
Legal actions for anti-competitive
behavior, anti-trust, and monopoly
practices
Aspect: Compliance
PRODUCT RESPONSIBILITY PERFORMANCE
INDICATORS
Aspect: Customer Health and Safety
PR1.
Life cycle stages; health and safety
impacts
PR2.
Incidents of non-compliance with
regulations and voluntary codes
concerning health and safety impacts of
products and services
Aspect: Product and Service Labeling
PR4.
Incidents of non-compliance with
regulations and voluntary codes
concerning product and service
information and labeling
Aspect: Marketing Communication
FP6 .
Percentage of total sales volume of
consumer products, by product category,
that are lowered in saturated fat, trans
fats, sodium and added sugars.
33
33
30
30
33
73
75
75
43, 45
94
the sr winning team
THE SR
WINNING TEAM
Alexander Ricky Tjahjono
Yayasan Unilever
Indonesia
Pangki Miguno
Supply Chain
Daniel Gunawan
David Riman
Supply Chain
Eka Sugiarto
Yayasan Unilever
Indonesia
Leo Indarwahono
Yayasan Unilever
Indonesia
Andre Setiawan
Yayasan Unilever
Indonesia
Maria Dewantini
Communications
Maya Tamimi
Yayasan Unilever
Indonesia
Nimanda Saleh
Silvi Tirawati
Sinta Kaniawati
Yayasan Unilever
Indonesia
Yayasan Unilever
Indonesia
Thomas
Catherine
Human Resources
Development
Ilvan
Human Resources
Development
Tyagita Wisnuyadi
Supply Chain
Mario A.Amrillah
Corp Affair Legal
Council
95
96
97
Name
Name
Name
Name
Title
Title
Title
Title
Name
Name
Name
Name
Title
Title
Title
Title
Name
Name
Name
Name
Title
Title
Title
Title
PT Unilever Indonesia Tbk
Graha Unilever
Jl. Jend. Gatot Subroto Kav 15
Jakarta 12930
Indonesia
T. +62 21 526 2112
F. +62 21 526 4020
E. [email protected]
www.unilever.co.id

SR UNILEVER 2012_ENG_tcm110-370144 - SRA

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