Hindustan Unilever Ltd

Advocacy We were an early signatory to the We Mean Business open letter to G20 leaders calling for higher ambition ahead of the COP26 conference in 2021. Subsequently we partnered with the UK government as a Principal Partner of COP26 in Glasgow. Alan Jope served as a member of the COP26 Business Leaders Group to rally UK and international businesses. During the conference, we participated in numerous events including the World Leaders Summit, the Forest, Agriculture, Commodities and Trade (FACT) dialogue to reduce emissions in commodity value chains and events on creating high integrity standards for voluntary carbon markets. We also developed a climate advocacy toolkit to support our market teams to push for higher climate ambition. Trade association policy alignment We've committed to ensuring that all direct lobbying relevant to climate policy is consistent with the Paris Agreement. At the end of 2021 we published our climate policy position on our website for indirect climate lobbying. In 2021 we rejoined the European Chemical Industry Council (CEFIC) to help accelerate the European chemical industry's transition towards circular chemistry. We will clearly indicate when CEFIC submissions on climate change-related policies do not align with our own climate positions.

Our engagement with our broader stakeholder community is undertaken by respective functions in consultation with the leadership team and overseen by the ESG committee. Feedback from different stakeholder groups on environmental, social, or economic topics is shared with the ESG Committee of the Board. We also have a CSR committee to review, monitor, and provide strategic direction to our CSR practices and social initiatives.

In June 2019, our CEO also urged more alignment between Unilever's climate ambitions and those in our wider value chain through an open letter to trade associations asking them if their lobbying position on climate policy was consistent with the 1.5°C ambitions set out in the Paris Agreement. Unilever has already committed to ensuring that all direct lobbying relevant to climate policy is consistent with our stated objectives in delivering the 1.5°C ambition of the Paris Agreement."
"We've committed to ensuring that all direct lobbying relevant to climate policy is consistent with the Paris Agreement. At the end of 2021 we published our climate policy position on our website for indirect climate lobbying. In 2021 we rejoined the European Chemical Industry Council (CEFIC) to help accelerate the European chemical industry's transition towards circular chemistry. We will clearly indicate when CEFIC submissions on climate change-related policies do not align with our own climate positions. [...] We've long championed the importance of aligning indirect climate lobbying through trade associations. Since 2019, we've asked the trade associations, of which Unilever is a member, to confirm that their lobbying activities are in line with the Paris Agreement too. In some cases, this triggered discussions to clarify existing positions and we'll continue our efforts in this area, publishing an annual list of principal trade associations. We've committed to ensuring that all direct lobbying relevant to climate policy is consistent with the Paris Agreement. At the end of 2021 we published our climate policy position on our website for indirect climate lobbying.

Compliance – Monitoring – Reporting

Compliance with these principles is an essential element in our business success. The Board is responsible for ensuring these principles are applied throughout Unilever.

The Chief Executive Officer is responsible for implementing these principles and is supported in this by the Global Code and Policy Committee, which is chaired by the Chief Legal Officer.

Day-to-day responsibility is delegated to all senior management of the geographies, divisions, functions and operating companies.

They are responsible for implementing these principles, supported by local Business Integrity Committees.

Assurance of compliance is given and monitored each year.

Compliance is subject to review by the Board supported by the Corporate Responsibility Committee and for financial and accounting issues the Audit Committee.

Unilever has already committed to ensuring that all direct lobbying relevant to climate policy is consistent with our stated objectives in delivering the 1.5-degree ambition of the Paris Agreement. However, direct advocacy is not the only form of policy influence that a business exerts. Unilever has long championed the importance of aligning indirect climate lobbying (through trade associations) with an organisation's climate position. In 2019, we asked our trade associations to confirm whether their policy engagement matched the 1.5-degree ambition of the Paris Agreement. Our intervention was positively received, and in several cases, it triggered a discussion about clarifying existing positions. We believe this is a growing area of importance, and beginning later this year, we will publish: • An annual list of our principal trade associations • A climate policy position that we will use to assess trade association membership renewals. [...] The Board takes overall accountability for the management of all risks and opportunities, including climate change. Our CEO and Executive Board member, Alan Jope, is ultimately responsible for oversight of our climate change agenda. The Corporate Responsibility Committee and Audit Committee review our climate reporting and receive presentations from sustainability experts, including the Sustainability Advisory Council, which includes external sustainability leaders from civil society organisations and academia. [...] The Board is supported by the Unilever Leadership Executive (ULE). The ULE meet monthly to discuss key strategic matters. During 2020, several agenda items related to climate change were discussed, including progress against our climate goals. Additional specialist governance groups are in place to support our climate agenda and ULE decision making, including: • The Carbon Neutral Board: Drives delivery of our carbon ambition at the corporate and country-level and leads strategic partnerships and policy on renewables. It is chaired by our Chief Supply Chain Officer, Marc Engel. • The Sustainable Sourcing Steering Group: Supports our strategy focusing on long-term, sustainable access to our key crops. It is chaired by our Chief Procurement Officer, David Ingram.