BY:Kshitij Jindal

Parth Maheshwari
Rohan Khurana
Shiven Kinha
Subhash Kapoor
Namita Sharma
Shivangi Saraf
Saumya Tiwary

Contents
1. ITC
1.1

Introduction

1.2

ITC Sustainable Business Development Initiatives

1.3

Corporate Governance Policy of ITC

1.4

ITC CSR Activities

1.5

CSR Theories Applicable to ITC

1.6

ITC Alignment to Business Responsibility Principles(NVG)

1.7

Shortcomings in ITC CSR Practices and Suggestions for

Improvements

2. HUL
2.1

Project shakti

2.2

Strategic sourcing of tomatoes

2.3

Stakeholders of hul

2.4

Reducing sachet waste through pyrolysis

2.5

Lifebuoy promoting health and hygiene through

handwashing

2.6

Domex toilet academy

2.7

Project prabhat

2.8

Non strategic initiatives

2.9

Corporate governance

2.10 Principles of nvg applicable to hul

3. Conclusion

ITC
INTRODUCTION
ITCwasincorporatedonAugust24,1910underthenameImperialTobacco
CompanyofIndiaLimited.ITCLimitedisanIndianconglomerateheadquarteredin
Kolkata,WestBengal.Itsdiversifiedbusinessincludesfivesegments:FastMoving
ConsumerGoods(FMCG),Hotels,Paperboards&Packaging,AgriBusiness&
InformationTechnology.
ITCisoneofIndia'sforemostprivatesectorcompanieswithamarketcapitalisationof
US$45billionandaturnoverofUS$7billion.ITCisratedamongtheWorld'sBest
BigCompanies,Asia's'Fab50'andtheWorld'sMostReputableCompaniesbyForbes
magazineandamongIndia'sMostValuableCompaniesbyBusinessToday.

ITC SUSTAINABLE BUSINESS INITIATIVES

Business cannot succeed in societies that fail. Businesses must play a more
meaningful, involved and active role in the creation of a more sustainable and
inclusive future. ITC is pursuing innovative business strategies that synergize the
creationofsustainablelivelihoodsandthepreservationofnaturalcapitalwiththe
buildingofshareholdervalue.ThisTripleBottomLinestrategyofbuildingeconomic,
socialandenvironmentalcapitalinvolves:
EmbeddingSustainabilityinBusiness
InvestinginSocialDevelopment
AdoptingaLowCarbonGrowthPathandaCleanerEnvironmentApproach

Environmenta
l

Carbon Positive: 9
Consecutive years
Water Positive: 12
years in a row
Solid Waste
Recycling Positive:
for the last 7 years
Soil & Moisture
conservation to
1,49,000 hectares.
38% Renewable
Energy
Greenest luxury
Hotel Chain: All
ITCs premium
luxury Hotels are
LEED Platinum
certified
1,63,000 hectares
greened

Economic

Market
capitalisation: Over
$45 billion
Turnover: Over $7
billion
26% Compound
annual growth in
total shareholder
returns over the last
18 years
Over 31,000
employees
Powering growth
with multiple
business drivers
Powered by the
vitality of worldclass brands

Social

Creating around 6
million sustainable
livelihoods
Creating community
assets
Educating 3,00,000
children
Benefitting 4 million
farmers
40,000 sustainable
livelihoods for rural
women
Animal husbandry
services for
10,00,000 milch
animals
70 million persondays of employment
generated

Sustainability Policies of ITC

Life Cycle
Initiatives

ITC endeavours to embed the principles of sustainability, as far as

practicable, into the various stages of product or service life-cycle including
procurement of raw material / service, manufacturing of product or delivery
of service, transportation of raw materials and finished goods, and disposal
by consumers.

Stakeholder
Engagement

ITC believes that it is necessary to represent to and engage with authorities

on matters concerning the various sectors in which it operates. ITC's
engagement with the relevant authorities is guided by the values of
commitment, integrity, transparency and the need to balance interests of
diverse stakeholders.

Responsible
Advocacy

ITC is committed to providing products and services that offer best-in-class

quality and user experience. With a continually growing portfolio of
businesses that use agri / farm products, ITC endeavors to use sustainably
sourced ingredients in products and internationally accepted standards of
manufacturing in relevant businesses.

ITC is committed to providing products and services that offer best-in-class

quality and user experience. With a continually growing portfolio of
Product
businesses that use agri / farm products, ITC endeavors to use sustainably
Responsibility
sourced ingredients in products and internationally accepted standards of
manufacturing in relevant businesses.

Responsible
Sourcing

ITC endeavors to integrate sustainability in the procurement process for its

products and services across its diversified business portfolio.

Freedom of
association

ITC believes all employees are important stakeholders in the enterprise and it
is imperative to build a culture of mutual trust and respect, interdependence
and meaningful engagement. This approach helps in building, strengthening
and sustaining harmonious employee relations across the organization.

Diversity and
equal
opportunity

ITC believes that diversity at the workplace creates an environment

conducive to engagement, alignment, innovation and high performance. This
is achieved by a policy that ensures diversity and non-discrimination across
the Company.

Child Labor
and forced
Labor

ITC believes in a "No Child Labor and No Forced Labor" policy.

Human rights
consideration
of stakeholders
beyond the
Workplace

ITC provides products and services of superior quality and value by sourcing
its technologies, equipment, inputs and finished goods from reputed
international and Indian manufacturers and suppliers. ITC expects its
business partners to establish a human rights compliant business environment
at their workplace. ITC believes that its vendors and suppliers must establish
processes for mapping/monitoring progress on human rights performance.

Environment,
Health &
Safety

ITC is committed to conducting its operations with due regard for the
environment and providing a safe and healthy workplace for its employees.

CORPORATE GOVERNANCE POLICY OF ITC

ITC's Corporate Governance initiative is based on two core principles. These are:
Management must have the executive freedom to drive the enterprise forward
without undue restraints exercised within a framework of effective accountability.
ITC believes that any meaningful policy on Corporate Governance must provide
empowerment to the executive management of the Company, and simultaneously
create a mechanism of checks and balances which is used with care and responsibility
to meet stakeholder aspirations and societal expectations.
The cornerstone of ITC Governance policy is trusteeship, transparency, empowerment
and accountability, control and ethical corporate citizenship. The practice of
Corporate Governance in ITC is at three interlinked levels:
Strategic
supervision

by the Board of Directors

Strategic
management

by the Corporate Management Committee

Executive
management

by the Divisional / Strategic Business Unit (SBU) Chief Executive

assisted by the respective Divisional / SBU Management
Committee

Board of Directors:
Executive Chairman of ITC shall operate as the Chief Executive for ITC as a whole
Directors shall be appointed / re-appointed for a period of three to five years, and in
the case of Executive Directors up to the date of their retirement, whichever is earlier.
The Board shall determine from time to time the retirement age for both Executive
and Non-Executive Directors.
The Board shall specify the maximum number of company Directorships which can
be held by members of the ITC Board.

 The Board shall meet at least six times a year and meetings will be held once in two
months. The annual calendar of meetings shall be agreed upon at the beginning of
each year.
The quorum for meetings shall be one third of members and decisions shall be
taken by simple majority, unless statutorily required otherwise. Minutes shall be
circulated within 15 working days of the meeting and confirmed at the next meeting
Composition of the DMC shall be determined by the Line Director with the
approval of the CMC.

The Board shall have the following Committees whose terms of reference shall be
determined by the Board from time to time:

Committee

Members

Chairman

Audit
Committee

Non-Executive Directors of the Company, as may

be decided by the Board. The Director responsible
One of the
for the Finance function, Head of Internal Audit and
Independent
representative of Statutory Auditors shall be
Directors
Invitees with the Company Secretary as the
Secretary.

Compensation
Committee

Non-Executive Directors of the Company, as may

be decided by the Board.

One of the
Independent

Directors

Nominations
Committee

The Executive Chairman and Non-Executive

Executive
Directors of the Company, as may be decided by the
Chairman.
Board.

Investor
Services
Committee

Directors of the Company, as may be decided by the One of the NonBoard, with the Company Secretary as the
Executive
Secretary.
Directors

Sustainability
Committee

The Executive Chairman and Non-Executive

Directors of the Company, with the Company
Secretary as the Secretary.

Executive
Chairman.

ITCS CSR ACTIVITIES

In pursuance of the Companys policy on Corporate Social Responsibility (ITCs CSR
Policy detailed in the Policies & Guidelines section of this Report), ITC has crafted
innovative business models that create larger and enduring value by not only
generating new sources of competitive advantage for its businesses, but also in the
process augmenting natural capital and sustainable livelihoods for the nation.
The various CSR initiatives include:
1. Consumption of Energy
ITCs water conservation, watershed development and rainwater harvesting projects
not only improve the sustainability of their agri-related businesses, but also create
sustainable livelihoods for a large number of marginal farmers.
Establishment of green buildings is one of the relevant responses to the environmental
challenges. ITCs Hotels Business reaffirmed this commitment by formally adopting
the Responsible Luxury credo which is exemplified by the
ITC Grand Chola, which is Worlds Largest LEED Platinum rated Green Hotel.
2. Minimizing Carbon Intensity and Adopting a Low Carbon Growth Path

ITC continues to enlarge its positive carbon footprint through enhanced energy
conservation, use of renewable energy sources and the expansion of carbon
sequestration through large-scale Social and Farm Forestry Programmes.
3. Consumption of Energy
Intergovernmental Panel on Climate Change In 2012-13, ITC Units consumed 21,347
Terra Joules (TJ) of energy. Despite significant grow slight increase of 1.0% in the
total energy consumption as compared to previous year (21,130 TJ in 2011-12).This is
directly attributable to the energy conservation projects implemented across the ITC
Units and better capacity utilization.
4. Progress In Reduction of Specific Energy Consumption In ITCs Businesses
A focused approach on energy conservation through rigorous third party audits and
implementation of the recommendations and better capacity utilization resulted in
substantial
reduction
in
specific
energy
consumption.
ITCs Paperboards and Specialty Papers Business has been rated the most energy
efficient in the Indian Paper and Paperboards sector, according to the Centre for
Science and Environment, New Delhi, (Challenge of the New Balance, CSE, 2010).
5. Water Conservation
Conducting water audits, benchmarking and implementation of best practices to
achieve the lowest possible specific freshwater intake.
6.

Zero Effluent Discharge

Treating and progressing towards achieving recycling of all waste water within
premises.
7.

Water Positive Footprint

They have enhanced water footprint through rainwater harvesting.

All ITC Units are required to ensure that wastes are segregated at source in
accordance with Company-defined guidelines. This ensures maximum reuse/recycling
of waste. For example, it is ensured that paper waste is not contaminated with wet
waste, which would render it unrecoverable.
8.

Towards 100% Recycling

Each category of waste is individually addressed and tracked to ensure that it can be
reused, if possible, and if not, recycled. This ensures that almost no waste from their
businesses lands up in municipal or private landfills.
9. CSR at marketplace

Enlarging ITCs Carbon Positive Footprint

ITCs Social and Farm Forestry Initiatives have added more than 17,000 hectares of
plantations during 2012-13. Total plantations, as on March 31, 2013, stand at over 1,
42,000 hectares.

Resource Conservation

Reduce waste generation through constant monitoring of specific waste generation

data at all ITC Units.

CSR AT COMMUNITY
1. ITC e-Choupal
Recognizing the various challenges faced by the farmer and leveraging ITCs
consumer facing businesses, ITC e-Choupal was designed to provide a 360-degree
intervention to trigger a virtuous cycle of higher farm productivity, higher income,
enlarged capacity for farmer risk management, and thereby larger investments to
enable higher quality and productivity. This initiative has benefitted over 4 million
farmers in 40,000 villages.
2. Social Investments Programme Coverage
These projects are spread across 10 states covering 60 districts. The interventions
reach out to more than 6 lakh households in more than 6,500 villages. Of the total
projects currently being implemented, 76% are targeted at the Companys rural
stakeholder households, while the balance 24% addresses stakeholders residing
around their factories.
3. Animal Husbandry
The programme for genetic improvement of cattle through artificial insemination to
produce high-yielding crossbred progenies has been given special emphasis because it
reaches out to the most impoverished and has the potential to enable them live with
social and economic dignity. Ten new Cattle Development Centres (CDCs) were
established during the year, taking the total to 303 centres covering nearly 5,000
villages that facilitated 2.75 lakh artificial inseminations during the year.
4. Project Gomukh- Integrated Dairy Management Programme
The overarching objective of the project is to increase milk productivity and improve
the quality of milk, thereby increasing farm incomes significantly.
5. The Social Forestry Programme
ITC promotes pulpwood plantations in Andhra Pradesh and energy security in
Karnataka which cumulatively covers a total of 33,448 hectares in 1,717 villages,
impacting nearly 40,000 poor households.
6. Building Skills and Social Infrastructure around their Factories

For the households around their units, these projects aim at creating sustainable
livelihoods through community development.

CSR THEORIES APPLICABLE TO ITC

Maximization of shareholder value

ITC believes that its aspiration to create enduring value for the nation provides the
motive force to sustain growing shareholder value.

Cause-related marketing

Every Classmate notebook carries ITC's Corporate Social Responsibility message on

its back. For every four Classmate Notebooks purchased, ITC contributes 1 to its
social development initiative that supports, among other projects, primary education.

Corporate constitutionalism

Social responsibilities of businesses arise from the amount of social power that they
have. They are undertaking various environmental and social activities on a large
scale.

Corporate (or business) citizenship

The firm is understood as being like a citizen with certain involvement in the
community. As a corporate citizen with enduring relationships in rural India, ITC has
a history of collaboration with communities and government institutions to enhance
farm productivity and the rural resource base. With initiatives like e-choupal ITC is
transforming the way farmers do business, and the way rural markets work.

Stakeholder management

ITC considers all its employees and the community as its stakeholder. Through
various skill development and social infrastructure development around their plant, it
balances
the
interests
of
the
stakeholders
of
the
firm.

Universal rights

ITC takes care of the human rights, labor rights of all its employees.

The common good

Various of ITCs CSR initiatives are oriented towards the common good of society.

ITC ALIGNMENT TO BUSINESS RESPONSIBILITY REPORT

PRINCIPLES (NVG)
ITC links Sustainability Report 2014 to Business Responsibility Report Principles to
assess compliance with Environmental, Social and Governance (ESG) norms.
Principl Business Responsibility Report Principles to
Coverage in Section of
e
assess compliance with ESG norms
Sustainability Report 2014

Businesses should conduct and govern

themselves with Ethics, Transparency and Governance Structure
Accountability

Businesses should provide goods and services

that are safe and contribute to sustainability

throughout their life cycle

Businesses should promote the wellbeing of all

employees

Energy
Air Emissions
Water Management
Resource Conservation

Labour Practices and

Decent Work
Occupational Health and
Safety

Human Rights
Significant Investments

Economic Performance

Stakeholder
Engagement

Businesses should respect the interests of, and

be responsive towards all stakeholders,

especially those who are disadvantaged,
vulnerable and marginalized

Labour Practices and

Decent Work

Human Rights
Significant Investments

Social Investments Mission Sunehra Kal

Businesses should respect and promote human Human Rights Significant

rights
Investments

Raw Materials
Business should respect, protect, and make Biodiversity
efforts to restore the environment
Social Investments Mission Sunehra Kal

Responsible Policy
Advocacy
7

Businesses, when engaged in influencing public

and regulatory policy, should do so in a Stakeholder Engagement
responsible manner
Memberships and
Affiliations

Economic Performance
Businesses should support inclusive growth and
equitable development
Social Investments Mission Sunehra Kal

Businesses should engage with and provide Stakeholder Engagement

value to their customers and consumers in a
responsible manner
Product Responsibility

SHORTCOMINGS IN ITC CSR PRACTICES AND

SUGGESTIONS FOR IMPROVEMENTS
Although e-choupal helps eliminate the middleman and therefore allows farmers to
get a better price form what they grow, it does nothing to solve the more fundamental
problem of the inherent inefficiencies created by so many tiny farms.
E-Choupal relies on infrastructure, which is often lacking in rural communities.
Electricity and telecommunication services can sometimes be less than 100% reliable
in some of the places where E-choupal has been implemented
For few of the Indicators under Specific standard disclosure under G4 GRI ITS has
not disclosed any information citing the reason that there is no frame work in place

to access such indicators. For such indicators they could take initiative and develop
their own framework for reporting.

HUL
Strategic Initiatives
1.Project Shakti Doing well by doing
good
HUL created a unique micro-entrepreneurship model with the aim of integrating
business interests with societal need.

About Project Shakti

A rural woman from poor economic background (in some cases member from a Self
Help Group) is selected as a Shakti entrepreneur, commonly referred as 'Shakti
Amma'. She receives stocks from HULs rural distributor. After being trained by the
company, the Shakti entrepreneur then sells those goods directly to consumers and
retailers in the village. This project was extended in 2010 for marginalised men,
typically the husbands and brothers of Shakti Amma, the male members of Shakti
Amma family, who distribute HUL products on bicycles to nearby villages.

Project Shakti Model

1.
3.

2.

HUL executive
Panchayat/
elling , commercial knowledge
and
book-keeping
Recruits
women/men
identifed meet
from the
village self-help group in an unco

4.
6.

5.

kti Amma makes a 10% margin

on the
A
Shakti
Amma
is products
asked to she
put sells
Rs. 20,000 as investment which is used to bu
The products are then sold door-to-door
Project Shakti started
With 17 women in one state in 2001
Provides livelihood opportunities

Over 65,000 Shakti Ammas distribute our HUL products in more than 165,000
villages and reach over 4 million rural households.
Over 50,000 Shaktimaans. Each Shaktimaan covers around 3 villages in his
own villages vicinity

Incentive for Shakti Ammas

Shakti Ammas are earning more than Rs. 1,000 a month.

o Door to door selling (11% margin on sales)
o Sell from own home (11% margin on sales)
o Retailers (3% margin)
The company provides training in selling , commercial knowledge and bookkeeping
The Shakti Ammas can choose to set up their own business or become project
Shakti distributors by investing Rs. 10,000 15,000 in stock at the outset by
micro-finance banks facilitated by HUL. The company sells the products at
additional discounts to the Shakti Entrepreneurs (SEs) thus enabling them to
raise incomes of their families. The initiative almost doubles the average
household income of a SE.

Target
As per Unilever Sustainable Living Plan, Unilever will increase the
number of Shakti entrepreneurs that it recruits, trains and employs
from 45,000 in 2010 to 75,000 in 2015 globally.
HUL distributes Tata Teleservices using Shakti amma
distribution channel

In 2011, HUL entered into an agreement with Tata Teleservices to

distribute their products in rural markets, leveraging our existing
networks. They are now distributing telecom products for Tata
Teleservices in 95,000 telecom outlets through a network of over
700 rural distributors.

Econom ical
High cost
cuttings by
removing the
middlemen from
distribution
channels
Increase in
market share by
expanding
consumer base
Higher m arket
reach and
penetration in
rural areas

Social
Providing
livelihood to
marginalised
wom en and
em powering
them
Im proving skills
of Shakti Amm as
Villages becom e
better places to
live, less crime
rate

Environm ental
Due to
substitution of
middlemen,
transportation by
trucks is replaced
by Shakti
amm as m oving
around in
bicycles, leading
to less pollution
and saving nonrenewable
sources of
energy

Associated MDG goals

1. Goal (1) Eradicate Extreme poverty and hunger
2. Goal (3) Promote gender equality and empower
women
3. Goal(5) Improve maternal health
4. Goal(7) Ensure environmental sustainability
5. Goal(8) Develop a global partnership for
development

All good so far, but still scope for

improvement.
1. Shakti Ammas are indirect employees of HUL. Empowering them alone is not
sufficient. Ensuring that their financial position be secured, is important too.
This can be achieved by helping them insure against home loan, child
education loan by sharing the cost of premium charged by the insurance
company.
Course of Action:Almost one-third of Rs.20,000 that HUL keeps as an investment from each
Shakti amma, be kept aside against a SIP or mutual fund and premiums for
loan be recovered from there.

Strategic Sourcing of Tomatoes

It is a sustainable sourcing initiative to source tomatoes used in Kissan Ketchup in
India from farmers under Unilever Sustainable Living Plan launched in November
2010. HUL entered into a Public-Private partnership with Maharashtra Government
for sustainable sourcing of tomatoes.

About Strategic Sourcing

As part of this initiative, HUL provides farmers with a buy-back guarantee for their
produce as part of the sourcing arrangement. HUL also offers global and local
knowledge and expertise in sustainable agriculture practices in tomato cultivation; this
includes the latest agricultural techniques, irrigation practices and selection of the
right type of seeds.
Public-private partnership
The public-private partnership is for one year with effect from April 1, 2012 to March
31, 2013
Scale of Strategic Sourcing of tomatoes
Farmers cultivate two seasons of crops on an area of 800 hectares in Nasik,
Ahmednagar and Pune (an overall radius of 100 km around Nasik).
Till 2013, over 1600 farmers have registered for this project to grow tomatoes on
over 2000 acres of land.
This Supply Integration initiative undertook for Sustainable tomato sourcing
through 1,100 smallholder farmers, 1500 acres, 28,000 metric tonnes of tomatoes
In 2013, 80% of tomatoes used in Kissan ketchup in India were from Sustainable
Sources.
Ensuring Quality of tomato sourced
There are two main routes to ensure raw materials count as sustainably sourced,
either by working towards one of the Unilever recognised certification standards or
through self-assessment using the Unilever Sustainable Agriculture Code.

The Business Model

Farmers

Guidelines to
farmers on
good
agricultural
practices

Varun Agro,
food
processing
company in

HUL uses the

processed
tomato pulp

Varun Agro collects

produce from
farmers following
harvest

Win-win situation for HUL and farmers.

Increase in tomato production & productivity for farmers

Strengthening of tomato supply chain

Assured supply of tomato to the company.

Tripple Bottom Line

Economical
Increase in tomato
production. 5%
saving in Supply
Chain cost with
sourcing network
optimisation
Strengthening of
tomato supply
chain
Improvement in
energy efficiency,
technical
efficiencies,
wastage reduction
and yield
improvement.
Assured supply of
tomato to the
company.

Social

Environmental

Improving the
livelihood of
farmers. Annual
income of a farmer
grown four times to
Rs 3 lakh a year per
crop. Extra income
of Rs 1-2 lakh from
flowers that are
sowed alternating
with tomato crop.
Cost come down by
Rs 50,000/hectare
Farmers exposed to
effective
agricultural
practices. The
fruiting cycle has
also come down
from 150 days to 70
days

Environment
focused agricultural
practices. Execution
of good agricultural
practices and
adoption of drip
irrigation systems
see farmers make
signifcant savings
in water, labour,
pesticide and
fertilizer, limiting
any negative
impact on the
environment.

MDG goals targeted

1. Goal (1) Eradicate Extreme poverty and hunger
2. Goal (3) Promote gender equality and empower
women
3. Goal(7) Ensure environmental sustainability
4. Goal(8) Develop a global partnership for
development
Target

HUL aims to source 100% of its tomatoes from sustainable sources by 2015. Unilever
is committed to sourcing sustainably all its agricultural raw materials by 2020.

Stakeholders Of HUL

Dorma
nt

Discretio
nary
Government

Deman
ding

Domin
ant

Danger
ous

Depend
ent

Definitiv
e

Investors

Employees

Industry

Shareholders
,

Regulatory
Agencies

NGOs

Local

Customers

Residents
Communitie

Contractors

s,
Suppliers
Distributors

REDUCING SACHET WASTE THROUGH PYROLYSIS

Over 40 billion sachets go out of Unilever every year.

Thousands of tons of products are sold in single-use sachets in developing
markets.
This makes brands affordable to people with low incomes.
However, low recycling value and the lack of disposal facilities means sachets
can end up as litter or landfill.

REDUCING THE ENVIRONMENT IMPACT OF SACHETS

HULs approach is to:

Implement design improvements to create sachets that use less material or

material with less environmental impact

support litter awareness programmes

Work with others to explore economic models which create incentives for
collection and reuse of our packaging.

HOW PYROLYSIS WORKS

Pyrolysis offers a closed loop system which involves catalytic

depolymerisation of plastics into fuel.
The fuel can be used in the factories as furnace oil.
Its factory in Puducherry has successfully used the fuel to power its boiler to
check feasibility of this approach.

CHALLENGES FACED

The costs associated with the collection of sachets remain prohibitive due to
the almost non-existent value of the sachet itself.

One of the biggest barriers to turning pyrolysis into a business opportunity for
reprocesses is taking collection of sachet waste to scale. HUL has engaged
NGOs in India to assist us and we plan to test different approaches.

CREATING VALUE FROM WASTE IN INDONESIA

Unilever Indonesia has initiated a Community Waste Bank Programme.

This aims to empower communities to take their own action to manage their
waste whilst receiving economic benefits.

Unilever Indonesia assists communities in developing a system where they can

collect inorganic waste and sell it based on its value. The money received is
saved at a bank and can be cashed in over time
In 2013, there were 712 community waste bank initiatives, with around 36,000
members.

After opening in 2012, Sobirins waste bank in Gunung Samarinda collects

over 2-3 tons of non-organic solid waste each month.
Each household manages to save about 50,000 rupiah (about $5) a month
through this waste bank.

PERFORMANCE

HULs goal is to develop and implement a sustainable business model for

handling our sachet waste streams by 2015.

ASSOCIATED MDGs

To ensure environmental sustainability

To combat HIV/AIDS, malaria, and other diseases
To develop a global partnership for development

To eradicate extreme poverty and hunger

TRIPLE BOTTOM LINE ASSOCIATED WITH THE ABOVE

INITIATIVE

Economical

Social

Environmental

It will provide
help the
company produce
fuel at a lower
cost and lower
their cost of
production.

It will provide a
source of income
for the waste
collectors.
It will also
provide
additional income
for the local
residents with
initiatives such as
Community
Waste Bank
Programme.

Since the sachets

are recycled it
will help reduce
the amount of
wastage.
If the technology
is extended it will
help to reduce
the overall plastic
waste

LIFEBUOY PROMOTING HEALTH AND HYGIENE THROUGH

HANDWASHING

More than 600,000 children in India do not reach the age of five due to
diarrhoea and pneumonia.
Hand washing with soap can prevent over a third of those deaths.
Lifebuoy soap has embarked on a noble mission to change the hygiene
behaviour of 1 billion consumers by 2015 across Asia, Africa and Latin
America by promoting the benefits of hand washing with soap at key times.

FIVE LEVERS FOR CHANGE METHODOLOGY

Lifebuoy has used Unilevers Five Levers for Change methodology to develop a
series of interventions to ensure that people not only understand why washing hands
with soap is important, but also practice the new habit over a period of time and get
rewarded for sticking with it.
These five levers are:

Visibly clean is not necessarily clean: (Lever 1: make it understood)

Mother & child interaction: (Lever 2: make it easy)

Pledging: (Lever 3: make it desirable)

Positive reinforcement: (Lever 4: make it rewarding)

21 days practice: (Lever 5: make it a habit)

THE RIPPLE EFFECT

Past studies show that if one can reach one child through a school programme, that
child will go home and influence the behaviour of his or her whole family.

RURAL AND URBAN OUTREACH PROGRAMMES

In 2013, HUL touched 10.8 million people through our Lifebuoy hand washing
programme. It has reached out to 58 million people since 2010 in both rural and urban
India.
HELP A CHILD REACH 5

In 2013, HUL launched the Help a Child Reach 5 campaign with a pilot
project in Thesgora village in Madhya Pradesh in India which has the largest
incidence of diarrhoea in the country.
A study by Nielsen has shown a reduction of diarrhoea in Thesgora from 36%
to 5% aided by a significant adoption of hand washing habit among mothers
and children at key occasions during the day.

BIHAR HAND WASHING PROJECT:

In 2013 HUL also launched a pilot hand washing project in two districts of
Bihar state -- Begusarai and Khagaria.

It has reached nearly one million people through the initiative during the year.
The ambition on this project is to impact the hand washing behaviour of 45
million people in rural Bihar in India over the next five years.

URBAN SCHOOL CONTACT PROGRAMME:

In urban India, Lifebuoy has been running a direct school contact programme
for the last three years.
It teaches children in urban schools the benefit of washing hands on five
critical occasions every day.
In 2013, we reached out to six million people through this programme.

GLOBAL HANDWASHING DAY

The year 2013 marked the sixth year of Global Hand washing Day (GHD)
which is celebrated every year on October 15.
On GHD in 2013, 1800 HUL employees volunteered to spread the awareness
on hand washing in 150 schools in 35 cities reaching over 50,000 children
across India.

ASSOCIATED MDGs

To combat HIV/AIDS, malaria, and other diseases

To reduce child mortality

To develop a global partnership for development

TRIPLE BOTTOM LINE ASSOCIATED WITH THE ABOVE

INITIATIVE

Economical
It will help the
company to
increase the sales
of Lifebuoy as
well as enhance
its brand image.

Social
It will promote the
importance of
cleanliness and
eventually lead to
a decrease in
diseases caused
by harmful
bacteria.
It lead to a
reduction of
diarrhoea in
Thesgora from
36% to 5%
In 2013, HUL
reached out to six
million people
with this
programme.

DOMEX
TOILET ACADEMY (DTA)
Improving hygiene and
sanitation:
Lack of access to hygienic sanitation:

o One of the key cause of diarrhoea amongst children in India

o 620 million defecate in open 60% of these are Indians By WHO
and UNI3CEF
DTA was in November 2013 with the aim of building 24,000 toilets by 2015
in the areas where people defecate in the open and dont have access to
improved sanitation facilities.

Spreading awareness Why is it important?

o Around 6, 00,000 children do not reach the age of 5 because of

diarrhoea and pneumonia lack of proper sanitation being one of the
reasons.
o They want to spread awareness with the help of local entrepreneurs by
asking them to build and sell toilets this stimulates the growth of the
local entrepreneur, people getting job, the increase in Domex sales and
leads to improve sanitation facilities resulting better hygienic condition
for the people living in that area.
o The academy provides training to the local entrepreneurs and masons
to supply the toilet, hence, assuring personal monitoring in the entire
process.
About DTA:
o Reached 850 people in 2013.
o Its based on community partnership model to make it scalable and self
sustainable.
o Partnered with eKutir rural management services private limited.
o Currently trained 40 local entrepreneurs who are working as per the
plan.

o DTA provides seed capital and also provides the initial operational cost
for the execution of this project.

The outreach:

o With the help of local Self Help Groups(SHGs) i.e. 12000 women
SHGs, in Vidharbha, they target to spread information regarding
importance of hygienic sanitation to women and children and they
provide facility of micro loans via micro finance institutions to buy the
toilets from the local entrepreneurs.
o It has taken help from an NGO named Nageshwara Charitable Trust.
o First ever academy to sponsor for world toilet day in partnership with
World Toilet Organization(WTO).

Impact:

o In 2013, Junapani, a village in Wardha district in Maharashtra was

made open defecation free. Today, there are around 80 toilets as a
result of the efforts of DTA.
o The programme was expanded to cover 300 villages in Odisha and 40
villages in Maharahtra.
o 103 toilets have been built in Orissa and Maharashtra.
o Currently under execution in Chhindwara.

How was the consumer made to contribute

(indirectly)?
o There was an online campaign carried out by HUL regarding the
awareness of hygiene sanitation.
o HUL would give 5 Rs for every click on the link and casting a vote,
showing support for campaign.
o For every bottle of Domex purchased HUL gave 5% of the revenues to
DTA.

The MDG goals which we can associate with

this project :

o Goal 3: Empowering women.

o Goal 4: Reduce under five mortality
o Goal 6: Combat diseases Diarrhoea and pneumonia in this case
In accordance with Narendra Modis Swachch Bharat call.
The integrative aspect of DTA is that the society is getting benefited and the
instrumental aspect is the increase in sales of Domex

The business model:

Provide fundamental
training
to
local
entrepreneurs
according to the plan.

Provide them with

the
necessary
fnancial facility if
necessary

Increase the sale

of Domex in rural
area

Project Prabhat:

Launched in December 2013 in order to contribute to the development of the

local communities around the manufacturing units of HUL.
Its aim is to reach larger communities around the unit and hence have a
synergy between the units and the external environment.
This helps in increasing the brand visibility and creating a goodwill for
Unilever.
It focuses on health and hygiene, livelihoods and water conservation initiatives
which are fully aligned to the USPL guidelines.
In December 2013 the lifebuoy school of 5 was run in Silvassa.
With respect to the water conservation initiative under prabhat, Hindustan
Unilever Fund (HUF), a wholly of HUL is contributing towards the water
agenda that would support in harnessing opportunities to improve the water
security (availability, storage and usage) of the region. In the selected
communities, HUF works with NGOs as local implementing partners.
The locations covered in Phase 1 include Silvassa, Khamgaon, Orai and Etah.
The initiatives planned are drip irrigation, building check dams etc.
The livelihood program emphasizes on to empower youth by enhancing their
business skills and hence provide them with a better livelihood. HUL has
collaborated with LabourNet for the implementation of the same.
The location covered in phase one are Haridwar, Pondicherry,Silvassa,
Khamgao, Goa and Nasik.
Some other programs covered are beauty and hair care, work place skills,
tailoring, spoken english, retail sales, hospitality and BPO.

Triple bottom line associated with both the

initiatives:

DTA
Environmental: Keep it
clean by creating facilities
for defecating.
Social: Training the local
entrepreneurs & hence help
them set up their business.

Project
Prabhat

It focuses on all the aspects

of the triple equally.

 Both the initiative taken by HUL are in

accordance with the integrative and the ethical
theories of corporate social responsibility.

NON STRATEGIC INITIATIVES

REDUCING GREENHOUSE GASES
From
CO2 emission per tonne of production reduced
manufacturing
by 27% in 2013 compared to the 2008 baseline.
Achieved through several environment friendly
initiatives at our manufacturing sites such as
replacing fossil fuels with biomass fuel for
boilers, solar lights and water heaters, installing
hot air generators and thermic fluid heaters at
our sites.
Increased the share of renewable energy by 2%
over 2012 and 8.5% over 2008.
The share of renewable energy in our total
energy consumption in our manufacturing is
21%.
From
transport
and travel

From refrigeration

CO2 emission from your Companys logistics

network has reduced by 430bps (from 78.4 kg
CO2 per tonne to 74.1 kg CO2 per tonne) in
2013.
In 2013, the Company maximised the direct
dispatches of our products in key categories to
70% and improved truck utilisation from 89% to
91% through usage of right truck type.
The Company also shifted incremental 3000
tonnes of load from road to rail mode of
transport resulting in reduction of carbon
footprint generated through warehousing and
transportation.
Made ice cream business environment friendly
by purchasing more climate friendly freezers.
There are currently 33,750 freezers with HC
( Hydrocarbon) technology in the fleet in India.

REDUCING WATER FOOTPRINT

From
The Company reduced water usage per tonne in
manufacturing
our manufacturing operations by 37% compared
process
to the 2008 baseline.
Initiatives - recycling treated effluent water for
gardening, installing reverse osmosis technology

at various utilities, collecting and recycling of

rain water, arresting major leakage and loss of
water at the manufacturing sites led to this
reduction.
In 2013, of total 38 sites, 33 sites became zerodischarge sites, an addition of 3 sites compared
to that of last year.
Six more sites implemented rainwater
harvesting taking the total to 28 sites, creating a
potential of 371,000 kilo litres water per annum.
Rainwater harvesting and use of RO for
recycling effluent water has helped your
Companys sites to reduce fresh water
abstraction by over 86,000 kilo litres.
Amli and Doom factories adopted the rainwater
harvesting and recycling model.In Goa,
rainwater on the terrace area of the factory is
collected and recycled for use.

Corporate Governance:

Chairman: Harish Manwani

MD and CEO: Sanjeev Mehta
CFO: P.B.Balaji
Executive director: Pradeep Banerjee
Independent director: S.Ramadaroi, O.P.Bhatt, Sanjeev
Mishra

 Corporate information:

o Registered office and research centre

o Executive director, legal & Corporate Affairs and
Company Secretary
o Statutory Auditors
o Solicitors
o Registration and share transfer agents
o Subsidiary agents

The National Voluntary Guidelines provides the following nine principles.

Principle 1: Ethics, Transparency and Accountability [P1]
Principle 2: Products Lifecycle Sustainability [P2]
Principle 3: Employees Well-being [P3]
Principle 4: Stakeholder Engagement [P4]
Principle 5: Human Rights [P5]

Principle 6: Environment [P6]

Principle 7: Policy Advocacy [P7]
Principle 8: Inclusive Growth [P8]
Principle 9: Customer Value [P9]

Conclusion
We can see it from two perspective:
Strategic: the activities carried out under these initiatives will
definitely benefit the company but ample care should be taken care
that during the execution of these activities, should an individual be
harmed and so should the environment.
Non- strategic: these are the kind of activities which may or may
not benefit the companies i.e. they are generally classified as
philanthropic. Care should be taken that once started, these
activities should be carried on with the same intent with which it
had begun and it should nowhere be neglected deeming it as
unimportant or less important. It should be given equal priority like
the other activities.