Eco-efficiency in manufacturing

Our approach

Reducing the impacts of our own manufacturing operations – eco-efficiency – is a core part of our strategy. Our long-standing work in this area has helped us improve the understanding of our impacts and underpinned our commitment to reducing our environmental footprint in areas such as water, waste and greenhouse gas emissions.

Our progress in this area is key to helping us achieve our overall carbon reduction target.

Our approach is underpinned by our environmental management system, which is based on ISO 14001. An essential element is the setting and reviewing of targets for our key performance indicators (KPIs). This approach helped us set our target to reduce our CO₂ from energy in our manufacturing operations by 25% by 2012 (measured per tonne of production against a 2004 baseline).

Encouraging best practice

We have launched a new initiative 'Simple Solutions' to encourage our factories in the simple techniques they can use to increase environmental savings. The aim is that using best practice will become standard practice and if all of our 264 factories contribute a little bit we will make a big difference in reducing our environmental footprint.

SEAC (Unilever's Safety & Environmental Assurance Centre) and the Engineering Excellence Team have developed a step-by-step, easy to implement guide generated from the many good practices which have been collected from factories around the regions. Regional SHE (Safety, Health and Environment) directors have subsequently implemented these 'Simple Solutions'.

These include putting machines onto energy-saving mode when not in use, providing better insulation for pipes to reduce energy loss, spotting air compressor and steam leaks, or fixing drippings taps and leaky hose pipes. While many factories are already doing these things, 'Simple Solutions' aims to make the practice standard in all facilities.

'Simple Solutions' is part of a broader programme to build on success with eco-efficiency. Other initiatives include building new greener factories, making the best use of technology (for example, using combined heat and power plants, such as turbines that create electrical and heat energy at the same time) or using more renewable energies (for example, wind, solar power and biomass).

We have also established intranet sites for SHE at corporate and business group level to help share best practice around the world. One example of this is a searchable web portal that has been developed with more than 350 examples of good practice covering water, waste, chemical oxygen demand (COD) and general environmental issues. Our global network of senior SHE professionals also meets regularly to agree SHE programmes and identify future needs. Environmental awareness workshops are co-ordinated at a regional level.

Data collection

Eco-efficiency data for our main KPIs is reported quarterly to the Unilever Executive. This enables us to monitor our performance closely and act quickly to make improvements.

Every year we collect data from each of our manufacturing sites using our web-based reporting system for key measures of environmental performance. Over the past 15 years we have continually improved the way we collect and report data.

In 2007 we focused on improving reporting of our energy and CO₂ emissions to allow better reporting of data on renewable energy, biomass and resulting CO₂ emissions. This brought our reporting in line with the requirements of the Greenhouse Gas Reporting Protocol. In 2008 we continued to improve our system for the reporting of monthly and quarterly environmental performance data by our sites. As a result of these improvements, eco-efficiency data for our main KPIs is now reported quarterly to the Unilever Executive rather than at year end. This enables us to monitor our performance more closely and to act more quickly to make improvements, eg in order to maintain progress against our milestones.

During 2009 we made additional improvements to the monthly/quarterly reporting system and have continued to drive further eco-efficiency improvements through review of the data and the resultant actions taken.

The definitions and basis of reporting of the environmental performance indicators shown in this section of the website are described in our 'Basis of Reporting' document (available to download in related links).

Target setting

Our external reporting focuses on our performance against long-term targets. This provides a more accurate reflection of our progress rather than reporting against rolling annual milestones, since most of our eco-efficiency initiatives yield results over a longer timeframe. We have already adopted this approach for CO₂ from energy (in setting a 2012 target) and work is in progress to define long-term targets both for CO₂ from energy and for our other two key performance indicators of water and total waste.

Summary of performance

In 2009 we collected environmental performance data from 264 manufacturing sites in 69 countries (including sites that have now closed). We do not collect data from third-party companies that manufacture or pack our products.

The table below shows the detail for our three key performance indicators of CO₂ from energy, water and total waste. We improved our eco-efficiency performance in all three measures.

Summary of key eco-efficiency performance indicators in 2009

We have set a target to reduce CO₂ from energy in our manufacturing operations by 25% by 2012 (measured per tonne of production against a baseline of 2004). We are on track to meet this target.

We have achieved a 40% reduction in CO₂ from energy per tonne of production since 1995 (equivalent to a 46% reduction in absolute terms). In 2009, we reduced our CO₂ by 2.6% per tonne of production compared with 2008 (equivalent to a 5.2% reduction in absolute terms).

We have been consistently reducing water use in our manufacturing. Since 1995, we have reduced the quantity of water per tonne of production by 65% (equivalent to a drop of 68% in absolute terms). In 2009, we reduced our water consumption by 5.3%m³/tonne of production compared with 2008 (a reduction of 7.9% in absolute terms).

Total waste from manufacturing sent for disposal has decreased by 73% since 1995. In 2009, we reduced total waste per tonne production  by 17.6% compared with 2008 (equivalent to 19.8% in absolute terms).

Summary of eco-efficiency performance – all indicators

Our 2009 data shows that we have made good progress for all our eco-efficiency key performance indicators apart from hazardous waste.

Target scorecard

Progress against 2010/2012 targets

*2012 target

**Increased level for 2009 is due to additional waste streams/waste reclassification and the continued disposal of accumulated hazardous waste, primarily in India

2009 data for these indicators are reported in Our manufacturing performance, together with progress against targets. This data has also formed part of the eight environmental performance indicators that have been independently assured by Deloitte LLP, see Assurance.

Training & awareness

Our approach is to deliver tools, techniques and awareness, and share best practice, directly with those people responsible for reducing the environmental impact of our manufacturing operations. Much of our progress has been achieved through good manufacturing practices at our factories, which we continue to promote through an environmental roadmap that includes an awareness-raising programme called Simple Solutions.

Environmental prosecutions & fines

We always aim to maintain the highest possible standards of environmental management but occasionally we encounter setbacks. We monitor and report all occurrences of environmental prosecutions and resulting fines associated with infringements, from our manufacturing sites, corporate head offices and research laboratories. The figures shown in the table below cover the 264 manufacturing sites that reported data for 2009, plus our corporate head offices and research laboratories (9).

In 2009 there were two prosecutions, both related to non-compliance with liquid effluent discharge limits and arrangements. These resulted in a total fine of €2 345.

Environmental prosecutions & fines 2005–2009

*Includes head offices and research laboratories