R6-Unilever UNGC COP Advanced Level 2022
R6-Unilever UNGC COP Advanced Level 2022
R6-Unilever UNGC COP Advanced Level 2022
Criterion 1: The COP Place responsibility for The Unilever Compass is our company strategy. It is owned and embedded
describes execution of sustainability across all functions.
mainstreaming into strategy in relevant corporate
corporate functions and functions (procurement, Sustainability Governance
business units. government affairs, human
resources, legal, etc) ensuring
no function conflicts with
company’s sustainability
commitments and objectives
Align strategies, goals and The Unilever Compass is embedded within all Divisions, Categories and
incentive structures of all operating companies, including newly acquired businesses.
business units and subsidiaries
with corporate sustainability Sustainability Governance
strategy Annual Report 2021: Our Strategy, Our Business Model p8-13
Annual Report 2021: Directors Remuneration Report p84-92
1
Assign responsibility for The Unilever Compass comprises nine sustainability pillars and a series of
corporate sustainability medium to long-term commitments. Each is owned and led by a member of
implementation to an the Unilever Leadership Executive. Cross function, divisional and category
individual or group within leadership teams are responsible for implementing the Unilever Compass.
each business unit and
subsidiary Sustainability Governance
Planet & Society – Climate Action
Planet & Society – Protect and regenerate nature
Planet & Society – Waste-free world
Planet & Society – Positive Nutrition
Planet & Society – Health and wellbeing
Planet & Society – Equity, diversity and inclusion
Planet & Society – Raise living standards
Planet & Society – Future of work
Planet & Society – Respect Human Rights
Planet & Society – Responsible Business
Design corporate sustainability The Unilever Compass comprises nine sustainability pillars. The issues that
strategy to leverage synergies each pillar addresses overlap and mutually reinforce each other. For example,
between and among issue our climate action and protect and regenerate nature agendas are interlinked.
areas and to deal adequately
with trade-offs Annual Report 2021: Planet & Society
Annual Report 2021: Our Strategy, Our Business Model p8-13
Sustainability Governance
Ensure that different corporate Cross functional governance groups work to ensure that the outcomes from
functions coordinate closely to the Unilever Compass result in positive outcomes for planet and society.
maximize performance and
avoid unintended negative Sustainability Governance
impacts
2
Other established or emerging We have been signatories to Global Compact LEAD for ten years. LEAD is a
best practices group of sustainability leaders that aim to achieve higher levels of
environmental, social and governance performance, tackle corporate
sustainability issues and encourage greater action by the corporate sector.
Criterion 2: The COP Analyze each segment of the The Unilever Compass spans our entire value chain as outlined in our business
describes value chain value chain carefully, both model (p12-13). It also addresses all material issues identified by our
implementation upstream and downstream, materiality processes which in turn consider our impacts across the value
when mapping risks, chain. Our Climate Transition Action Plan is an example of careful mapping of
opportunities and impacts climate impacts across the value chain, including risks and opportunities.
Communicate policies and Partnerships based on clear standards of responsible sourcing strengthen our
expectations to suppliers and supply chain and the businesses within it. Our Responsible Sourcing Policy
other relevant business (RSP) sets out our commitment to conduct business with integrity, and with
partners respect for universal human and labour rights as well as environmental
sustainability. It’s a crucial part of the due diligence we undertake to identify
and encourage remediation by suppliers of issues within our extended supply
chain.
3
Implement monitoring and We have an extensive internal audit programme as well as external audit of
assurance mechanisms (e.g. high-risk suppliers via our Responsible Sourcing Policy.
audits/screenings) for
compliance within the Responsible Sourcing Policy - Audit Requirements
company’s sphere of Human Rights Progress Report 2021
influence Planet & Society: Human Rights in our value chain
Planet & Society: Our eco-efficiency reporting
Undertake awareness- We work with a wide range of business partners – from suppliers to customers
raising, training and other – to ensure they have the capability to meet our sustainability requirements.
types of capacity building
with suppliers and other Planet & Society: Partner with Purpose
business partners Annual Report 2021: Suppliers & business partners p27-28
Annual Report 2021: Customers p25-26
Human Rights Progress Report 2021
Planet & Society: Sustainable and regenerative sourcing
Planet & Society: Clean Home. Clean Planet. Clean Future
Criterion 3: The COP Commitment to comply with Our Code of Business Principles commits us to comply with the laws and
describes robust all applicable laws and regulations of the countries in which we operate and to respect human rights.
commitments, strategies respect internationally Our Code’s Respect, Dignity and Fair Treatment Policy specifies what
or policies in the area of recognized human rights, employees must commit to. We respect and promote all internationally
human rights wherever the company recognised human rights. In line with the UN Guiding Principles on Business
operates (e.g., the Universal and Human Rights, we base our Human Rights commitment and Policy
Declaration of Human Rights, Statement on the International Bill of Human Rights and the principles of
Guiding Principles on Human fundamental rights of the ILO’s Declaration on Fundamental Principles and
Rights) (BRE1 + ARE1) Rights at Work. Our Responsible Sourcing Policy and Responsible Business
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Partner Policy are based on the same approach. Our People & Nature Policy
contains “Respecting & promoting Human Rights” as one of its four principles.
Integrated or stand-alone Our human rights governance is led from the top, overseen by our CEO and
statement of policy supported by our Unilever Leadership Executive (ULE), the most senior leaders
expressing commitment to of our business. Additional Board-level oversight is provided by the Corporate
respect and support human Responsibility Committee. The Board of Unilever approve our Code of Business
rights approved at the most Principles and our Human Rights Policy Statement.
senior level of the company
(BRE 1 + BRE5 + ARE 1 + ARE 5) Planet & Society - Respect Human Rights
Responsible Sourcing Policy
Responsible Business Partner Policy
People & Nature Policy
Statement of policy Our Code of Business Principles defines our expectations of employees through
stipulating human rights its Respect, Dignity & Fair Treatment Code Policy. Our Code commits us to
expectations of personnel, establishing mutually beneficial relations with our suppliers, customers and
business partners and other business partners and its Responsible Sourcing & Business Partnering Code
parties directly linked to Policy guides employees in doing so. In our business dealings, we expect our
operations, products or partners to adhere to business principles consistent with our own, and to
services (BRE 1) comply with our third party policies (our Responsible Sourcing Policy, our
Responsible Business Partner Policy and our People & Nature Policy) and
commit to working with us to address issues that negatively impact society and
the planet.
Statement of policy publicly Our Human Rights policies for employees and business partners are published
available and communicated on our website. Our Business Integrity page details employees’ Code of
internally and externally to Business Principles training. Our Partner with Purpose page explains our
all personnel, business Responsible Sourcing Policy’s (RSP) mandatory requirements: agreeing to the
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partners and other relevant terms of the RSP is a pre-requisite for any partner wanting to do business with
parties (BRE 1 + BRE 5 + ARE 1 us.
+ ARE 5)
Code of Business Principles and Code Policies
Human Rights Policy Statement
Responsible Business Partner Policy
People & Nature Policy
Other established or In support of our commitment to respect and promote human rights and the
emerging best practices effective implementation of the UN Guiding Principles, in 2021 we created a
framework to enable us to address our salient human rights issues consistently
and effectively. We're using it to define a theory of change and action plans
which include capability building and impact assessment metrics to measure
progress. Our Human Rights Progress Report 2021 details how we used it to
tackle forced labour, harassment and fair wages.
Criterion 4: The COP Process to ensure that We are embedding human rights in our own business and in our relationships
describes effective internationally recognized with business partners. We have put in place robust mechanisms to ensure
management systems to human rights are respected compliance with our Code of Business Principles and Code Policies and our
integrate the human business partner policies. We have put in place robust mechanisms to ensure
rights principles compliance with our Code of Business Principles and Code Policies and our
business partner policies.
On-going due diligence Our Salient Issue Framework enables us to detect issues and prioritise any
process that includes an necessary actions across the 8 salient human rights issues we’ve identified for
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assessment of actual and our business. Our Responsible Sourcing Policy includes an audit process based
potential human rights on risk. This is supplemented by Human Rights Impact Assessments which look
impacts (BRE 2 + BRE 3 + ARE 2 at our operations and business partners. Our Human Rights Progress Report
+ ARE 3) 2021 details our latest work on due diligence. Along with our Human Rights
Supplier Audit Update 2020 it also details the actions we’ve taken to remediate
issues with suppliers.
Internal awareness-raising Alongside our regular Code of Business Principles training, we run training on a
and training on human rights range of human rights topics such as women’s safety and ethical recruitment
for management and in particular countries.
employees
Human Rights Progress Report 2021 p10-11
Human Rights Report 2020 p78
Planet & Society – Human Rights in our operations
Operational-level grievance We operate a range of grievance mechanisms for our stakeholders. They are
mechanisms for those an integral part our Code of Business Principles and our policies for our
potentially impacted by the business partners.
company’s activities (BRE 4
+ARE 4) Code Support Line (open to third parties)
Our Speak up Platforms and Investigating Code Breaches
Responsible Sourcing Policy p10-11
Responsible Business Partner Policy
Planet & Society – Human Rights in our value chain
People & Nature Policy
Planet & Society – Sustainable Palm Oil: Our grievance procedure for
sustainable palm oil
Allocation of responsibilities We publish details of our governance on our website. Our Board has ultimate
and accountability for responsibility for strategy and the management of risk (such as lack of ethical
addressing human rights behaviour). Oversight of human rights, including responsible sourcing, is led by
impacts the Board’s Corporate Responsibility Committee. Operational leadership rests
with the Unilever Leadership Executive, led by our CEO which oversees delivery
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of the Unilever Compass, including our Human Rights commitments. Our
Human Rights agenda is led by our Chief Business Operations Officer. Our
teams work together to embed respect for human rights in our business and
markets. Our Responsible Business team is responsible for the governance of
and compliance with our Responsible Sourcing Policy while our Global
Sustainability and Sustainable Sourcing Teams work together to identify
emerging human rights issues, create action plans to respond to our salient
human rights issues and work both bilaterally and more widely to prevent their
re-occurrence.
Internal decision-making, Operational leadership rests with the Unilever Leadership Executive (ULE), led
budget and oversight for by our CEO, which oversees delivery of the Unilever Compass, including our
effective responses to human Human Rights commitments. ULE agree strategy, actions and investment as
rights impacts required. Additional Board-level oversight is provided by the Corporate
Responsibility Committee. Our Procurement Business Integrity Committee
decides on complex situations regarding sourcing in line with our Responsible
Business Policy.
Processes to provide for or Third-party audits play an important (not crucial) role in identifying human
cooperate in the remediation rights issues. When issues are identified, suppliers are required to immediately
of adverse human rights put a corrective action plan in place. They are then audited against that
impacts that the company has corrective action plan to verify remediation, with the results uploaded into our
caused or contributed to (BRE supplier qualification system - which impacts the compliance of suppliers as it
3+ BRE 4 + ARE3 + ARE 4) is connected to our purchase order system. Through our RSP First programme
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we ensure that agreeing to the terms of our Responsible Sourcing Policy is a
pre-requisite for any partner wanting to do business with Unilever.
Process and programs in place We’re embedding human rights across every function of our business, and
to support human rights collaborating with others to promote systemic change. We’re embedding
through: core business; human rights across every function of our business. Our policy framework helps
strategic philanthropic/ social us set consistent expectations for ourselves and our partners. We’re also
investment; public policy collaborating with others to promote systemic change.
engagement/ advocacy;
partnerships and/or other Human Rights Report 2020, Governance p67, Policy Framework p68,
forms of collective action (BRE Collaboration p17
6 + ARE 6) Human Rights Progress Report 2021, Collaboration p7
Modern Slavery Statement
Planet & Society – Respect Human Rights
Planet & Society – Our salient human rights issues
Planet & Society – Human Rights in our value chain
Planet & Society – Human Rights in our operations
Partner with purpose
Other established or emerging Through the Unilever Compass we’ve set a groundbreaking goal on living
best practices wages and living income.
Criterion 5: The COP System to monitor the We monitor compliance with our Code of Business Principles and publish the
describes effective effectiveness of human rights results on our website. Our Salient Issue Framework enables us to detect issues
monitoring and policies and implementation and prioritise any necessary actions across the 8 salient human rights issues
evaluation mechanisms with quantitative and we’ve identified for our business. Its objectives include reporting and impact
qualitative metrics, including
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of human rights in the supply chain (BRE3 + metrics. We also report on Human Rights Impact Assessments.We track and
integration ARE3) audit compliance with our Responsible Sourcing Policy.
Monitoring drawing from We monitor compliance with our Code of Business Principles and publish the
internal and external results on our website.
feedback, including affected
stakeholders Code Support Line (open to third parties)
Stakeholder impact assessment and consultation are core to our human rights
due diligence and reflected in our Human Rights Impact Assessments.
Collaboration with others is also essential to our approach, e.g. with unions.
Human Rights Progress Report 2021 – Due Diligence p5, Collaborative Action
p7
Human Rights Report 2020 - Collaboration p17, Freedom of Association p30
Human Rights Supplier Audit Update 2020, Union Engagement p6
Planet & Society – Human Rights in our value chain
Planet & Society – Sustainable Palm Oil: Our grievance procedure for
sustainable palm oil
Leadership review of We’ve assigned Unilever Leadership Executive (ULE) owners to our Unilever
monitoring and improvement Compass sustainability goals which include human rights. Quarterly reporting
results of performance to the ULE enables them to monitor progress and take action
to ensure we stay on track.
Process to deal with incidents Our Code of Business Principles and Code Policies set out our requirements for
the company has caused or running our business responsibly: we publish the results of breaches of our
contributed to for internal Code on our website.
and external stakeholders
(BRE4 + Our Responsible Sourcing Policy sets out a clear process for addressing issues.
ARE4) When issues are identified, suppliers are required to immediately put a
corrective action plan in place. They are then audited against that corrective
action plan to verify remediation, with the results uploaded into our supplier
qualification system - which impacts the compliance of suppliers as it is
connected to our purchase order system.
Grievance mechanisms that Grievance mechanisms play a critical role in opening channels for dialogue,
are legitimate, accessible, problem solving, investigation and, when required, providing remedy. We
predictable, equitable, provide them in our own business and work with others to make them
transparent, rights- available to suppliers.
compatible, a source of
continuous learning, and Code of Business Principles and Code Policies
based on engagement and Code Support Line (open to third parties)
dialogue (BRE4 + ARE4) Human Rights Progress Report 2021, Supplier Audit Results p10
Planet & Society – Sustainable Palm Oil: Our grievance procedure for
sustainable palm oil
Human Rights Report 2020, Collaboration p17
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Outcomes of integration of We publish our progress in our Human Rights Report and Annual Report. Our
the human rights principles groundbreaking living wage commitment illustrates one of the outcomes of
integrating human rights principles.
Other established or Our new Salient Issue Framework enables us to detect issues and prioritise
emerging best practices actions across the 8 salient human rights issues we’ve identified for our
business. Implementing this consistent, structured approach allows us to
identify the issue and who it impacts, a theory of change, interventions and
actions. Our Human Rights Progress Report 2021 p9-15 illustrates how we
have applied it to 3 of our salient issues.
Criterion 6: The COP Reference to principles of Our Code of Business Principles commits us to comply with the laws and
describes robust relevant international labour regulations of the countries in which we operate and to respect human
commitments, strategies standards (ILO Conventions) rights. Our Code’s Respect, Dignity and Fair Treatment Policy specifies what
or policies in the area of and other normative employees must commit to. We respect and promote all internationally
labour international instruments in recognised human rights. In line with the UN Guiding Principles on Business and
company policies Human Rights, we base our Human Rights (including Labour Rights)
commitment and Policy Statement on the International Bill of Human Rights and
the principles of fundamental rights of the ILO’s Declaration on Fundamental
Principles and Rights at Work. Our Responsible Sourcing Policy and Responsible
Business Partner Policy are based on the same approach. Our People & Nature
Policy contains “Respecting & promoting Human Rights” as one of its four
principles.
Reflection on the relevance of Respect for human rights, including labour rights, is embedded in our Code of
the labour principles for the Business Principles and we are unequivocal that respect for human rights
Company underpins all our Unilever Compass commitments. The Compass also recognises
the critical role of living wages in reducing poverty and enabling people to
access other human rights.
Written company policy to Respect for human rights, including labour rights, is embedded in our Code of
obey national labour law, Business Principles, our Responsible Sourcing Policy, Responsible Business
respect principles of the Partner Policy and Human Rights Policy Statement. Planet & Society – Human
relevant international Rights in our operations and our Human Rights Report 2020 describe our
labour standards in company approach to engaging on labour rights.
operations worldwide, and
engage in dialogue with
representative
organization of the workers
(international, sectoral,
national).
Inclusion of reference to the Through our RSP First programme we ensure that agreeing to the terms of
principles contained in the our Responsible Sourcing Policy is a pre-requisite for any partner wanting to
relevant international labour do business with Unilever. Customers and distributors are required to
standards in contracts with comply with the terms of our Responsible Business Partner Policy.
suppliers and other relevant
business partners Human Rights Policy Statement
Responsible Sourcing Policy p3
Human Rights Progress Report 2021 p6
13
Specific commitments and We pay our employees at least a living wage, as set out in our Code of Business
Human Resources policies, in Principles and Code Policies. We expect our suppliers to adhere to values and
line with national principles consistent with our own and through the Unilever Compass have set a
development goal on living wages and living incomes for suppliers. Our People & Nature
priorities or decent work Policy covers wages and employment terms as well as no-deforestation. Our
priorities in the country of Human Rights Progress Report 2021 illustrates how we are implementing our
operation living wage commitment in priority markets, tackling forced labour in a number
of countries and addressing issues in the palm oil industry.
Participation and leadership We describe our approach to engaging on labour rights in our Human Rights
in wider efforts by employers’ Report 2020 and Human Rights Progress Report 2021.
organizations (international
and national levels) to jointly Planet & Society – Human Rights in our operations Planet & Society – Human
address challenges related to Rights in our value chain
labour standards in the
countries of operation,
possibly in a tripartite
approach (business – trade
union – government)
Structural engagement with We describe our approach to engaging on labour rights, including the formal
a global union, possibly via a mechanisms we have put in place with unions, in our Human Rights Report
Global Framework 2020.
Agreement
Planet & Society – Human Rights in our operations
Planet & Society – Human Rights in our value chain
Human Rights Policy Statement
Other established or Through the Unilever Compass have set a groundbreaking goal on living wages
emerging best practices and living incomes for suppliers. Our Human Rights Progress Report 2021
describes how we are tackling forced labour through our Salient Issue
Framework. It also explains how we continue to improve our approach to
human rights due diligence.
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Criterion 7: The COP Risk and impact assessments Risk management is integral to our strategy and at the core of our Board
describes effective in the area of labour agenda. Our Annual Report p44-50 identifies our process for managing risk and
management systems to lists our principal risks, which include ethical, legal and regulatory risks.
integrate the labour Stakeholder impact assessment and consultation are also core to our human
principles rights due diligence and reflected in our Salient Issue Framework and Human
Rights Impact Assessments. Managing risk is integral to our policies.
Dialogue mechanism with We describe our approach to engaging on labour rights, including the formal
trade unions to regularly mechanisms we have put in place with unions, in our Human Rights Report
discuss and review company 2020.
progress in addressing
labour standards Planet & Society – Human Rights in our operations
Human Rights Progress Report 2021 p5, 10, 14
Responsible Sourcing Policy p26, 29
People & Nature Policy p5
Allocation of responsibilities We publish details of our governance on our website. Our Board has ultimate
and accountability within the responsibility for strategy and the management of risk (such as ethical
organization behaviour). Oversight of human rights, including responsible sourcing, is led by
the Board’s Corporate Responsibility Committee.
Operational leadership rests with the Unilever Leadership Executive, led by our
CEO which oversees delivery of the Unilever Compass, including our Human
Rights, including Labour Rights, commitments. Our Human Rights agenda is led
by our Chief Business Operations Officer with involvement from other members
of the Unilever Leadership Executive where relevant, including the Chief People
& Transformation Officer and Chief Legal Officer.
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Human Rights Policy Statement
Human Rights Progress Report 2021
Human Rights Report 2020
Planet & Society – Respect Human Rights: strategy & goals
Planet & Society – Respect Human Rights
Responsible Sourcing Policy
Responsible Business Partner Policy
People & Nature Policy
Internal awareness-raising We train our employees on our Code of Business Principles and run specialised
and training on the labour training for particular teams, such as on forced labour for our procurement
principles for management teams.
and employees
Planet & Society – Business integrity
Human Rights Progress Report 2021 p10-14
Planet & Society – Human Rights in our operations
Active engagement with We expect our suppliers to adhere to values and principles consistent with our
suppliers to address labour- own, and collaboration is integral to our approach. Our Human Rights Progress
related challenges Report 2021, Human Rights Report 2020 and Human Rights Supplier Audit
Update 2020 detail our approach and the results of supplier audits.
Grievance mechanisms, Grievance mechanisms play a critical role in opening channels for dialogue,
communication channels and problem solving, investigation and, when required, providing remedy. We
other procedures (e.g., provide them in our own business and work with others to make them available
whistleblower to suppliers.
mechanisms) available for
workers to report concerns, Code of Business Principles and Code Policies
Code Support Line (open to third parties)
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make suggestions or seek Planet & Society - Business Integrity
advice, designed Planet & Society – Human Rights in our value chain
and operated in agreement Human Rights Progress Report 2021, Supplier Audit Results p10
with the representative Planet & Society – Sustainable Palm Oil: Our grievance procedure for sustainable
organization of workers palm oil
Human Rights Report 2020, Collaboration p17
Other established or Through the Unilever Compass have set a groundbreaking goal on living wages
emerging best practices and living incomes for suppliers. Our Human Rights Progress Report 2021
describes how we are tackling forced labour, living wage and palm oil through
our Salient Issue Framework. It also explains how we continue to improve our
approach to human rights due diligence.
Criterion 8: The COP System to track and measure We monitor compliance with our Code of Business Principles and publish the
describes effective performance based on results on our website.
monitoring and standardized performance
evaluation mechanisms metrics Code of Business Principles and Code Policies
of labour principles Code Support Line (open to third parties)
integration
Our Salient Issue Framework enables us to detect issues and prioritise any
necessary actions across the 8 salient human rights issues we’ve identified for
our business. It objectives include reporting and impact metrics. We also publish
Human Rights Impact Assessments.
Dialogues with the We describe our approach to engaging on labour rights, including the formal
representative organization mechanisms we have put in place with unions, in our Human Rights Report
of workers to regularly review
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progress made and jointly 2020. Our Human Rights Progress Report 2021 shows how we are collaborating
identify priorities for the with others, including our Partner with Purpose suppliers, to tackle salient issues.
future
Annual Report 2021 - Suppliers & business partners p27-29
Planet & Society – Human Rights in our operations Planet & Society – Human
Rights in our value chain
Human Rights Policy Statement
Audits or other steps to We expect our suppliers to adhere to values and principles consistent with our
monitor and improve the own, and collaboration and auditing are integral to our approach. Our Human
working conditions of Rights Progress Report 2021, Human Rights Report 2020 and Human Rights
companies in the supply Supplier Audit Update 2020 detail our approach and the results of supplier
chain, in line with principles audits.
of international labour
standards Annual Report 2021 - Suppliers & business partners p27-29
Responsible Sourcing Policy
Responsible Business Partner Policy
People & Nature Policy
Planet & Society – Promoting diverse suppliers
Process to positively engage Our Human Rights Progress Report 2021 shows how we are collaborating with
with the suppliers to address others, including suppliers, to tackle salient issues. Working with our Partner
the challenges (i.e., with Purpose suppliers, we have launched Partner Promises on Equity, Diversity
partnership approach & Inclusion and Living Wages to drive systemic change.
instead of corrective
approach) through schemes Annual Report 2021 - Suppliers & business partners p27-29
to improve workplace
practices
Outcomes of integration of Through the Unilever Compass we have set a groundbreaking goal on living
the Labour principles wages and living incomes for suppliers. Our Human Rights Progress Report 2021
describes how we are tackling forced labour, living wage and palm oil through
our Salient Issue Framework. Through our Partner with Purpose suppliers we are
driving our Compass commitments and systemic change.
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Planet & Society – Sustainable and regenerative sourcing
Other established or Our Human Rights Progress Report 2021 describes how we are tackling forced
emerging best practices labour, living wage and palm oil through our Salient Issue Framework. It also
explains how we continue to improve our approach to human rights due
diligence. Working with our Partner with Purpose suppliers, we have launched
Partner Promises on Equity, Diversity & Inclusion and Living Wages to drive
systemic change.
Criterion 9: The COP Reference to relevant Unilever supports the UN’s Sustainable Development Goals and the ambitions of
describes robust international conventions the Paris Agreement, as outlined in our Climate Transition Action Plan. Our work
commitments, and other international on protecting and regenerating nature also supports the Convention of
strategies or policies in instruments Biological Diversity.
the area of (e.g. Rio Declaration on
environmental Environment and
stewardship Development)
Reflection on the relevance of The Unilever Compass reflects our commitment to improving the health of the
environmental stewardship planet. The ‘Planet’ is recognised as one of our key stakeholders in our business
for the company model in our Annual Report, which also provides extensive commentary on our
impact on the environment and the business case for tackling issues such as
climate change, plastic pollution and biodiversity loss.
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Written company policy on Unilever’s Environmental Policy outlines our commitment to the Planet. Related
environmental stewardship policies such as the People & Nature Policy provide more detailed policy
commitments in relation to specific parts of our value chain, such as commodity
suppliers.
Specific commitments and The Unilever Compass includes a number of medium and long-term
goals for specified years environmental commitments in three priority areas: climate action, waste-free
world and protect and regenerate nature. Further details and reporting on our
progress can be found in our Annual Report (p29-31).
Other established or Unilever’s Climate Transition Action Plan was among the first by a large
emerging best practices company to be put to a shareholder vote. It sets out details on how we will
decarbonise our business and achieve net zero across our value chain by 2039.
Criterion 10: The COP Environmental risk and At a corporate level, our risk management process, outlined in our Annual
describes effective impact assessments Report, identifies two principal risks that relate directly to the environment -
management systems climate change and plastic packaging (p47). Our TCFD statement (p44-50)
to integrate the provides further detail on our most significant climate risk and opportunities.
environmental Furthermore, our materiality analysis identifies the environmental issues that are
principles most important to our stakeholders – including issues such as climate change
and water. At a product-level, we use environmental safety assessments to
determine any potential risk of adverse effects that could come from using and
disposing of our products.
Assessments of lifecycle We use Life Cycle Assessment to understand the impact of our products and
impact of products, ensuring brands, considering the sourcing of raw materials, such as via mining or
environmentally sound agriculture, to product manufacture, distribution, consumer use and disposal).
management policies
Allocation of responsibilities The Unilever Leadership Executive are responsible for driving our environmental
and accountability within the agenda. The Board’s Corporate Responsibility Committee provide oversight – see
organisation the Report of the Corporate Responsibility Committee in our Annual Report for
more details (p80-81). Our Environmental Policy reinforces accountability for
environmental issues.
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Internal awareness-raising Training and capacity building on environmental issues such as climate change
and training on and plastic is a key part of Unilever’s learning and development agenda –
environmental stewardship withing functions and across divisions, categories and markets.
for management and
employees
Grievance mechanisms, Unilever’s Code of Business Principles and Code Policies outlines our
communication channels and commitment to provide transparent, fair and confidential procedures for
other procedures (e.g. employees and third parties to raise concerns. The main way for third parties to
whistleblower mechanisms) raise complaints is via the Code Support Line. Employees can also report
for reporting concerns or concerns via our Speak Up platform. Unilever has a zero-tolerance policy on
seeking advice regarding retaliation and will not tolerate any form of retaliation against anyone who
environmental impacts reports a concern.
Criterion 11: The COP System to track and measure Our reporting on the Unilever Compass is, wherever possible, aligned to
describes effective performance based on standardised performance metrics. Our Annual Report includes a number of
monitoring and standardized performance environmental disclosures which are based on industry agreed definitions. For
evaluation mechanisms metrics example, our greenhouse reporting is aligned to the Greenhouse Gas Protocol
for environmental (p34 and 55) and our reporting on plastic recyclability is based on EMF best
stewardship practice guidelines (p34). We also report on a number of ‘core’ WEF ESG metrics.
Our Basis of Preparation includes details of external measurement standards
that we align with.
Leadership review of The Unilever Leader Executive have full oversight of progress against the Unilever
monitoring and improvement Compass including quarterly performance monitoring.
results
Process to deal with incidents The Unilever Environmental Care Framework Standard (not public) includes
procedures on how we respond to environmental incidents.
Audits or other steps to We work in partnership with suppliers to encourage adoption of our
monitor and improve the commitments and to build capacity. For example, we invited our suppliers to
environmental performance commit to setting a public target to halve absolute GHG emissions by 2030,
of companies in the report their progress and share their data with us. We’re also exploring new ways
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supply chain to support suppliers through guidance, tools and resources. See our Annual
Report for more (p53). We also audit high risk suppliers against the requirements
of our Responsible Sourcing Policy.
Outcomes of integration of We report extensively on the outcomes from our Compass strategy, primarily
the environmental principles through our Annual Report and in the Planet & Society Hub, notably climate
action, waste-free world and protect and regenerate nature.
Other established or Our first Climate Transition Action Plan progress report details the progress we’re
emerging making as we decarbonise our business and work towards net zero across our
best practices value chain.
Criterion 12: The COP Publicly stated formal policy Unilever’s commitment to doing business with integrity requires consistently high
describes robust of zero-tolerance of global standards: our zero-tolerance approach towards bribery and corruption,
commitments, corruption (D1) outlined in our Code of Business Principles and Code Policies, applies to all
strategies or policies in Unilever operations, regardless of local business practices, and prohibits both
the area of public and commercial bribery (e.g. to or from any third party). This extends to all
anticorruption our employees, board members, third parties, new acquisitions and joint
ventures, irrespective of financial values involved.
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Commitment to be in Our Code of Business Principles and Anti-Bribery and Legal Consultation Code
compliance with all relevant Policies require all employees to always comply with laws and regulations that
anti-corruption laws, apply to the countries in which Unilever operates, including anti-corruption
including the implementation legislation.
of procedures to know the
law and monitor changes Annual Report 2021 – Code of business principles p80
(B2)
Statement of support for Unilever supports global and local efforts to fight corruption. We support
international and regional international organisation’s such as the United Nations and the Organisation for
legal frameworks, such as the Economic Cooperation and Development in their efforts to implement their
UN Convention against international conventions and best practice. We also participate actively in key
Corruption (D2) fora such as the World Economic Forum (PACI and Global Future Councils), the
UN Global Compact, the International Chamber of Commerce, the B-20 and
Transparency International. Our thought leadership has promoted and
supported advancements in key anti-corruption themes such as: reduction of
interactions with public officials through elimination of red tape and increase of
e-government solutions, improvement of corporate registries and enhancement
of compliance in small and medium enterprises. All these efforts support our
goal to build corruption-free environments for the benefit of our company, our
value chain partners and consumers.
Detailed policies for high-risk In addition to our Code of Business Principles and Code Policies, we have
areas of corruption (D4) additional anti-corruption written standards and controls for interactions with
public officials, brand protection, corporate transactions (M&A), customer
incentives, gifts & hospitality, grants & donations and conflicts of interest.
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Policy on anti-corruption The anti-corruption policies detailed in our Code of Business Principles and Code
regarding business partners Policies and outlined above, extend to our employees working with third parties.
(D5) Our Responsible Business Partner Policy also includes bribery.
Other established or We provide thought leadership and influence key policymakers on positive
emerging best practices regulatory change that can help our consumers, Unilever and our business
partners (including small and medium enterprises) to live and be able to do
business in corruption free environments.
Criterion 13: The COP Support by the organization’s Our CEO sets an unequivocal tone from the top: he communicates regularly with
describes effective leadership for anti-corruption leaders and all employees on business integrity, making clear that adherence to
management systems (B4) our Code and Code Policies is non-negotiable. Many other members of our
to integrate the anti- Unilever Leadership Executive are also vocal champions: they make time to
corruption principle regularly share their personal perspective on business integrity with their teams,
through communications and ‘integrity moments’ at the start of meetings to
briefly focus on a specific topic or learning where appropriate. At Board level, our
Corporate Responsibility Committee has oversight of the implementation of the
Code and Code Policies. Our Audit Committee is updated on relevant compliance
developments.
Carrying out risk assessment A bespoke risk assessment exercise is conducted on an annual basis to
of determine the business activities and geographies that require specific actions
potential areas of corruption to enhance our controls and respond to changes in our risk exposure.
(D3)
Annual Report 2021 – Working with integrity p19
Annual Report 2021 – Our risks p50
Planet & Society – Business integrity: countering corruption
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Human Resources procedures Our annual Business Integrity mandatory training is deployed to all employees
supporting the anti- and includes anti-corruption lessons based on our learnings from investigations,
corruption risk assessments and business partnering. Additional bespoke training is offered
commitment or policy, to employees that face a greater risk in their activities.
including
communication to and Planet & Society – Business Integrity
training Code of Business Principles and Code Policies
for all employees (B5 + D8)
Internal checks and balances We use a risk-based approach to implement our Business Integrity programme.
to ensure consistency with We constantly seek to improve our analytics capabilities, so trends, hotspots and
the anti-corruption root causes are rapidly identified and addressed. Each operating company
commitment (B6) periodically reviews its Business Integrity programme and profile to identify focus
areas for improvement. Development needs identified through this assessment
are addressed as part of local, or where appropriate, global plans. The work of
local teams is available for independent review by our Corporate Audit function.
We have additional detailed controls for preventing financial accounting errors
and fraud. Our financial controls are externally audited annually. Our Corporate
Audit function includes the audit of Business Integrity controls in their scope of
business unit audit work.
Actions taken to encourage We want to work with suppliers, customers, agents, distributors and other
business partners to business partners who have values similar to ours and uphold the same
implement standards as we do. We have therefore developed specific tools that set out the
anti-corruption commitments standards of integrity we expect from third parties who interact with us.
(D6)
Responsible Business Partner Policy
Responsible Sourcing Policy
Planet & Society – Business Integrity
Management responsibility Our Business Integrity programme is led by senior executives and dedicated
and subject matter experts. It is overseen by our Board.
accountability for
implementation of the anti- Code of Business Principles and Code Policies
corruption commitment or Sustainability Governance
policy (D7) Annual Report 2021: Report of the Corporate Responsibility Committee p80-81
Planet & Society – Business Integrity
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Communications Employees can get in touch with their line manager, a Business Integrity Officer
(whistleblowing) channels or a member of their local Business Integrity Committee. Alternatively, they can
and follow-up mechanisms use our confidential external Unilever Code Support Line (whistleblowing line) via
for reporting concerns or telephone or online. In addition to the internal and external channels provided,
seeking advice (D9) where available, employees are able to utilise other external reporting channels
and report directly to the authorities.
Internal accounting and Our Code of Business Principles includes a Code Policy on Accurate Records,
auditing Reporting and Accounting. We have additional detailed controls for preventing
procedures related to financial accounting errors and fraud. Our financial controls are externally
anticorruption (D10) audited annually. Our Corporate Audit function includes the audit of Business
Integrity controls in their scope of business unit audit work.
Criterion 14: The COP Leadership review of We use a risk-based approach to implement our Business Integrity programme.
describes effective monitoring and improvement We constantly seek to improve our analytics capabilities, so trends, hotspots and
monitoring and results (D12) root causes are rapidly identified and addressed. Each operating company
evaluation mechanisms periodically reviews its Business Integrity programme and profile to identify focus
for the integration areas for improvement. Development needs identified through this assessment
of anti-corruption are addressed as part of local, or where appropriate, global plans. The work of
local teams is available for independent review by our Corporate Audit function.
Process to deal with incidents We publicly report on our internal process to investigate potential breaches and
(D13) metrics for substantiated cases.
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Business Integrity: Our Speak Up platforms & Investigating Code Breaches
Planet & Society – Business Integrity
Public legal cases regarding As at 31 December 2021, we had no public cases regarding corruption.
corruption (D14)
Criterion 15: The COP Align core business strategy The Unilever Compass, our company strategy, is aligned with a number of the
describes core business with one or more relevant UN Sustainable Development Goals.
contributions to UN goals/issues
goals and issues Planet & Society – Sustainable Development Goals
Annual Report 2021: Our Strategy, Our Business Model p8-13
Develop relevant products We provide many of examples of products and business and models that
and services or design support the Sustainable Development Goals throughout our Planet & Society
business models that Hub. We also work with UN Women to advance our efforts on gender equality
contribute to UN goals/issues (SDG5), and UNICEF in areas such as clean water and sanitation (SDG6). We bring
this to life through our brands, for example, our UNICEF partnerships
with Dove on self-esteem and Domestos on sanitation.
Adopt and modify operating The Unilever Compass, our company strategy, is aligned with a number of the
procedures to maximize Sustainable Development Goals. Our strategy guides our strategic choice and
contribution to UN actions which ultimately impact our policies and process. For example, we
goals/issues recently launched the People and Nature Policy to guide our efforts on
eliminating deforestation and protecting natural ecosystems.
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Annual Report 2021: Our Strategy, Our Business Model p8-13
Other established or We provide many of examples of products and business and models that
emerging best practices support the Sustainable Development Goals throughout our Planet & Society
Hub. We also work with UN Women to advance our efforts on gender equality
(SDG5), and UNICEF in areas such as clean water and sanitation (SDG6). We bring
this to life through our brands, for example, our UNICEF partnerships
with Dove and Domestos.
Criterion 16: The COP Pursue social investments Through our business strategy, the Unilever Compass, we have set stretching
describes strategic and philanthropic goals to improve the health of the planet, improve people’s health and wellbeing
social investments and contributions that tie in with and create a fairer and more socially inclusive world. Our goals on a waste-free
philanthropy the core competencies or world and living wage are examples. Our multi-stakeholder business model
operating context of the commits us to working closely with our stakeholders: we build strategic
company as an integrated partnerships such as TRANSFORM and create innovative business models to help
part of its sustainability take our initiatives to scale. We have also aligned our philanthropic approach to
strategy disasters and emergencies with our business expertise to provide targeted
support and assistance.
Coordinate efforts with other Working in partnership is essential to delivering our strategy. We created
organizations and initiatives TRANSFORM with the UK’s Foreign, Commonwealth & Development Office to
to amplify—and not negate support entrepreneurs meeting the needs of low-income households in S Asia
or and sub-Saharan Africa. We are partnering the Global Solidarity Fund to
unnecessarily duplicate—the replicate this approach in Latin America. These partnerships are helping to bring
efforts of other contributors change on a large scale. We also harness our supply chain to bring about
change, for example through our partner promises on people and the planet.
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Take responsibility for the In our own business, we are led by our Code of Business Principles and Code
intentional and unintentional Policies. Our multi-stakeholder business model commits us to working with our
effects of funding and have stakeholders to bring about change and we seek to make a positive impact
due regard for local customs, through policies such as our People & Nature Policy, Responsible Sourcing Policy,
traditions, religions, and Responsible Business Partner Policy and Regenerative Agriculture Principles.
priorities of pertinent
individuals and groups
Criterion 17: The COP Publicly advocate the Our multi-stakeholder business model commits us to working with our
describes advocacy and importance of action in stakeholders to bring about change and by engaging with others we can amplify
public policy relation to one or more UN our actions. We take an active part in many initiatives to mobilise action, for
engagement goals/issues example our Human Rights Progress Report 2021 explains how we are
collaborating with suppliers, NGOs and business groups. Our Climate Transition
Action Plan highlights how we are influencing wider society; and our Sustainable
Development Goals page lists some of our key collaborations, including those of
our brands. Across our Planet & Society hub, each Taking a Stand page
summarises our stance and how we’re using our voice across issues such as
nature, waste, diversity and living standards.
Commit company leaders to Our leaders are active in mobilizing action as part of delivering our Unilever
participate in key summits, Compass business strategy. Our Annual Report 2021 p72-74 includes their
conferences, and other external appointments, for example our CFO is Vice-Chair of the Task Force on
important public policy Climate-related Financial Disclosures while our President of Foods is a member
interactions in relation to one of Leading Executives Advancing Diversity. Our Annual Report 2021 p29-31 also
or more UN goals/issues illustrates some of our key actions. Our Sustainable Development Goals page
lists some of our key collaborations, including those of our brands.
Other established or Through our Climate Transition Action Plan we have set out how we will reduce
emerging best practices our emissions to net zero and how we will use our voice to drive the systemic
change that is urgently needed.
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Criterion 18: The COP Develop and implement Our multi-stakeholder business model commits us to working with our
describes partnerships partnership projects with stakeholders to bring about change and by engaging with others we can amplify
and collective action public or private our actions. For example we created TRANSFORM with the UK’s Foreign,
organizations (UN entities, Commonwealth & Development Office to support entrepreneurs meeting the
government, NGOs, or other needs of low-income households in South Asia and sub-Saharan Africa and are
groups) on core business, partnering the Global Solidarity Fund to replicate this approach in Latin America.
social investments and/or We also harness our supply chain to bring about change, for example through
advocacy our Partner with Purpose programme’s promises on people and the planet. Our
Climate Transition Action Plan p5, 37-39 highlights how we are working with
others; and our Sustainable Development Goals page lists some of our key
collaborations, including those of our brands.
Join industry peers, UN Our multi-stakeholder business model commits us to working with our
entities and/or other stakeholders to bring about change and by engaging with others we can amplify
stakeholders in initiatives our actions. Examples include our Climate Transition Action Plan p5, 21-25, 37-
contributing to solving 39, supported by advocacy and partnerships for climate, waste and sustainable
common challenges and and regenerative sourcing. Our Sustainable Development Goals page lists some
dilemmas at the global of our key collaborations, including those of our brands.
and/or local levels with an
emphasis on initiatives
extending the company’s
positive impact on its value
chain
Other established or Via our Climate Transition Action Plan we have set out how we will reduce our
emerging best practices emissions to net zero and how we will use our voice and partnerships to drive the
systemic change that is urgently needed.
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Corporate Sustainability Governance and Leadership
Criteria for UNGC Best practice Further information
Advanced Level
Criterion 19: The COP CEO publicly delivers explicit Our CEO Alan Jope is vocal on a range of sustainability issues and attends high
describes CEO statements and profile events such as COP and Davos to advocate for systems change and
commitment and demonstrates personal business case for sustainability.
leadership leadership on sustainability
and commitment to the UN Annual Report 2021 - Chief Executive Officer's review
Global Compact
CEO promotes initiatives to Our CEO Alan Jope is involved in a number of industry initiatives which aim to
enhance sustainability of the accelerate progress on key sustainability issues. For example, he is on the Board
company’s sector and leads of Directors of the Consumer Goods Forum advocating for purposeful business,
development of industry and the World Economic Forum advocating for common ESG report standards.
standards
CEO leads executive The Unilever Board delegates responsibility for the day-to-day operational
management team in leadership of the business including strategy, monitoring of performance and
development of corporate policy, to our CEO, Alan Jope. The CEO leads the ULE which monitors
sustainability strategy, implementation and delivery of our business strategy, including delivery of
defining the Unilever Compass and its sustainability goals.
goals and overseeing
implementation Planet & Society Hub: Sustainability Governance
Annual Report 2021: Report of the Corporate Responsibility Committee p80-81
Make sustainability criteria The reward packages of all Unilever Leadership Executive, Senior Management
and UN Global Compact and Management employees (Managers, Directors, Vice Presidents and Senior
principles part of goals and Vice Presidents - around 17,000 employees) includes fixed pay, a bonus as a
incentive schemes for CEO percentage of fixed pay and eligibility to participate in a long-term Performance
and executive management Share Plan (PSP). The PSP is linked to financial and sustainability performance,
team guided by our Sustainability Progress Index (SPI), which accounts for 25% of the
total PSP award. The SPI includes a number of KPIs which are closely aligned to
our Compass Sustainability commitments.
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Annual Report 2021 – Director’s remuneration report: Sustainability Progress
Index p84 and p91
Criterion 20: The COP Board of Directors (or The Board has ultimate responsibility for reviewing, monitoring and guiding the
describes Board equivalent) assumes strategy for the Unilever Group, as well as its conduct. It has overall
adoption and oversight responsibility and oversight accountability for the management and guidance of risks and opportunities, for
for long-term corporate example those associated with climate change, plastic packaging and ethical
sustainability strategy and behaviour.
performance
Planet & Society Hub: Our sustainability governance
Board establishes, where Specific responsibilities relating to sustainability are discharged through a
permissible, a committee or number of Board Committee’s. The Corporate Responsibility Committee oversees
assigns an individual board Unilever’s conduct as a responsible business, sustainability and our corporate
member with responsibility reputation.
for corporate sustainability
Annual Report 2021: Report of the Corporate Responsibility Committee p80-81
Annual Report 2021: Report of the Audit Committee p78-79
Planet & Society Hub: Our sustainability governance
Board (or committee), where Specific responsibilities relating to sustainability are discharged through a
permissible, approves formal number of Board Committee’s. The Audit Committee reviews significant breaches
reporting on corporate of the Code of Business Principles as part of its remit to review risk management.
sustainability It also oversees the independent assurance programme for selected metrics in
(Communication on Progress) our Unilever Compass and reviews the Annual Report.
Criterion 21: The COP Publicly recognize The Unilever Compass, our company strategy, is intended to benefit multiple
describes stakeholder responsibility for the stakeholders who we rely on to grow our business. Our reporting explicitly
engagement company’s impacts on focuses on the value we have created for our stakeholders, including impacts on
internal and external our stakeholders.
stakeholders
Annual Report 2021: Stakeholder review p15-27
Annual Report 2021: Our strategy p8-9
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Define sustainability We use our materiality analysis to inform our strategy and public reporting, often
strategies, involving stakeholder input and analysis of stakeholder feedback and insights.
goals and policies in The sustainability commitments set out in the Unilever Compass were informed
consultation with key by a ‘listening exercise’ involved over one hundred stakeholders. We also use
Stakeholders input from our Sustainability Advisory Council to guide and critique the
development of our strategy.
Consult stakeholders in To make our purpose a reality and grow our business, we need to work closely
dealing with implementation with our stakeholders: our people, consumers, shareholders, governments and
dilemmas and challenges regulators, suppliers, customers, scientists, NGOs, communities and peer
and invite them to take active companies (most often through trade associations). We provide examples of
part in reviewing how we engage stakeholders on many aspects of our business and performance
performance on our Engaging with stakeholders page. Further examples of stakeholder
engagement can be found in our Annual Report (p63).
Establish channels to engage We provide examples of how we invite stakeholders to provide their feedback to
with employees and other us on our Engaging with stakeholders page. Further examples of stakeholder
stakeholders to hear their engagement can be found in our Annual Report (p63), including the ways in which
ideas and address their consumers and employees can provide feedback on their experiences. Our
concerns, and protect Business integrity pages details how we protect whistleblowers.
‘whistle-blowers’
Other established or Our CEO and members of the Unilever Leadership Executive participate in a bi-
emerging best practices weekly ‘Your call’. This gives our workforce direct and regular access to our
leadership team, who answer questions on issues of concern to them as
employees, such as our approach to equity, diversity and inclusion, progress on
our sustainability commitments and company financial performance.
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