VIETNAM PROGRESS REPORT 2012-2013

In 2010 we created the UNILEVER SUSTAINABLE LIVING PLAN; the blueprint for achieving our vision to double the size of the business whilst reducing our environmental footprint and increasing our positive social impact.
OUR RESPONSE The Unilever Sustainable Living Plan is our strategic response to the challenges the world faces. It is at the heart of our compass strategy, encompassing our ambitions vision and purpose. OUR PURPOSE TO MAKE SUSTAINABLE LIVING COMMONPLACE We work to create a better future every day, with brands and services that help people feel good, look good and get more out of life. Our first priority is our customers, then our employees, suppliers and communities. When we fulfill our responsibilities to them, we believe that our shareholders will be rewarded.
THE UNILEVER SUSTAINABLE LIVING PLAN

Our plan has three important goals to achieve by 2020: Help more than a billion people take action to improve their health and well-being. Halve the environmental footprint of its products across the value chain. Source 100% of our agriculture raw materials sustainably and enhance the livelihoods of people across our value chain.

Two years into its ten-year Unilever Sustainable Living Plan, Unilever Vietnam reports solid progress on these three goals.

UNILEVER SUSTAINABLE LIVING PLAN VIETNAM 2013

UNILEVER SUSTAINABLE LIVING PLAN VIETNAM 2013

IMPROVING HEALTH AND WELL-BEING

REDUCING ENVIRONMENTAL IMPACT

Following the Prime Ministers Awards to Unilever Vietnam in 2011 for its Excellent contribution to environmental protection, Unilever Vietnam has been honored with the Vietnam Environmental Award 2013 granted by the Vietnam Environment Administration, Ministry of Natural Resources and Environment. This is in recognition of our strong and long-term commitment to protect the environment since the beginning of our operation in Vietnam, especially in the last 2 years since the launch of our Sustainable Living Plan. Two years into its ten-year Unilever Sustainable Living Plan, Unilever reports solid progress on halving the environmental footprint of our products across the value chain. We are making good progress towards reducing CO2 and waste from manufacturing, sourcing our raw materials sustainably and rolling out sustainable product and packaging innovation. During 2008-2012, greenhouse gas emissions from energy in manufacturing have been cut by nearly a third and manufacturing waste has halved. Over half of Unilevers 252 manufacturing sites around the world now send zero non-hazardous waste to landfill and the company has set itself a new target of extending this to all its factories by 2015. In Vietnam, we have set a new target to send zero non-hazardous waste to landfill by 2014.

We have directly impacted 7 million people and indirectly reached more than 19 million people via various communication channels
HEALTH AND HYGIENE REDUCE DIARRHOEAL AND RESPIRATORY DISEASE THROUGH HAND WASHING In 2013, we have continued to make good progress towards our goal. Through Lifebuoys handwashing program, we have given free soaps and hygiene education to 3.5 million people.

WORKING WITH PARTNERS

Our partnership with the local government as well as local and international NGOs is tremendously important in helping us achieve our goals. We are very proud of the close relationship we have developed with Ministry of Health, Ministry of Education & Training, Vietnam Womens Union, Ministry of Natural Resources and Environment and Ministry of Agriculture and Rural Development as they have enabled us to raise public awareness and provide education to local consumers in various areas, including hand washing, oral care, sanitation and enhance livelihood through income generation, sustainable tea sourcing. Our long track record of strong commitments to social and community work in Vietnam since we began our business in 1995 has given us a strong foundation for further cooperative programs with Vietnams Government to realize the goals set in our USLP. . Continuing our cooperation with Ministry of Education and Training, we have agreed on another five-year-term Clean-GreenHealthy School theme which aims to teach primary school children nationwide about environment, personal health and hygiene habits. Since 2011, our brands P/S, Omo, VIM and Lifebuoy have delivered our commitment to improve childrens health and well-being by providing green educationthrough various activities in primary schools nationwide. For the past 2 years, we have already built 270 new toilets in 27 primary schools and have installed 51 playgrounds within school ground and 12 public playgrounds. Since2006, we have installed 334 playgrounds nationwide to enhance the physical, health and well-being for school children.

GREENHOUSE GASES

WATER REDUCING OUR WATER USE WHERE IT MATTERS MOST

Reduce water use in the laundry process. Our laundry products involve water during use. We have researched new technologies to invent new formulas that help consumers to use less water. In 2011, we launched Comfort One Rinse, our fabric conditioner on the Vietnamese market. This enables people to rinse clothes in one bucket of water instead of three, saving up to 30 liters of water a wash and thus reducing water use in the laundry process. Comfort One Rinse products are used in 6.5 million households worldwide and have helped save 248 million m3 of water. Reduce water use in our manufacturing process
We have made good progress in reducing water used by our manufacturing sites. Water usage per ton of production has decreased by 19% between 2011 and 2013.

WORKING WITH PARTNERS SUSTAINABLE SOURCING

Sustainable tea By 2015 we aim to have the tea in all Lipton tea bags sourced from Rainforest Alliance Certificated estates. By 2020, 100% of Unilevers tea will be sustainably sourced. In January 2012, our official signing ceremony of sustainable tea development cooperation with Vietnam Ministry of Agriculture and Rural Development recognized our continued focus on sustainability through this key partnership initiative. The initiative aims to cooperate closely with tea farmers and processors to increase exports of grown and processed tea from Vietnam. Our progress on sourcing has been strongwith 16,000 tons of tea sourced sustainably up-to-date. Globally, 39% of the overall tea purchased for all our brands was sourced from Rainforest Alliance Certified farms.

IMPROVING ORAL HEALTH

The oral health improvement program of P/S Vietnam has been implemented in cooperation with the Ministry of Education and Training, Ministry of Health, and the National Hospital of Odonto- Stomatology in Ha Noi and Ho Chi Minh City as part of the Protect the Vietnamese Smiles (PVS) agenda. Through this program, we aim to educate and improve oral health care to change the brushing behavior of 8 million people by 2020.

CELEBRATE GLOBAL HAND WASHING DAY ADVOCACY CAMPAIGN

This is one of the most successful campaigns from our Lifebuoy brand as it engages consumers, school children and teachers, as well as employees and communities. We received important support from our local partners Ministry of Health, Ministry of Education and Training and our global partners, UNICEF, to promote hand washing with soap. 150,000 people in the campaign pledged to wash their hands with soap for a healthy Vietnam.

Our Brush Day and Night campaigns have proved very effective and we are set to achieve our target early. Since the beginning of 2012, 2.7 million people have received free dental check-up and treatments. We also built 13 new brushing areas. Dental clinic intervention served over 13,000 students per year in 13 key primary schools nationwide as a pioneer in field of basic dental school.

VIM GERM-FREE TOILET FOR BETTER HEALTH

More than 2,000 children die every day from diarrhoea, which is closely linked to a lack of clean toilets for over 2 billion people worldwide. One in every four people in Vietnam do not have access to a clean toilet. We committed to fund 60 billion VND for a five-year campaign to improve sanitation condition for Vietnamese people with the target of building 800 new toilets in 80 primary schools nationwide and delivering sanitation education to 10 million Vietnamese by the end of 2018 via various communication channels.

Halve the greenhouse gas impact of our products across the lifecycle by 2020 Reduce greenhouse gas emissions from our manufacturing We have made particularly good progress in reducing greenhouse gas emissions from transport and manufacturing by increasing efficiency and using more renewable energy such as bio-fuel, bio-mass, solar energy and reusing hot water. Our greenhouse gas impact per consumer use has reduced by approximately 6% since 2011. Reduce greenhouse gas emissions through biomass Implementing biomass boilers for the three factories (HCL, PCL & Foods) to replace DO usage with biomass usage, reducing CO2 emission by 276 tons per year, reducing 4,075 kg of sox per year and saving 2.56 per ton of finished goods. Reduce greenhouse gas emissions from washing clothes Achieving a reduction of 19% in greenhouse gas emissions. We communicate the benefits of lowtemperature washing on our packaging and online and encourage our consumers to use the right dosage. We continued to make good progress in reformulating our products to reduce greenhouse gas emissions. We have partnered with one of our customers, Big C, to implement campaigns aiming at educating shoppers on CO2 emission awareness and on informed choices of the products that have less environement footprints such as Omo Liquid and Comfort One Rinse. Reduce greenhouse gas emissions from refrigeration Reduce GHG from Walls refrigeration 25% of our current freezers have been installed with climate-friendly freezers. Reduce employee travel We are investing in advance video conferencing facilities to make communication easier while reducing travel for our employees. When we moved to our new Unilever Homebase Office in 2008, we encouraged employees to use the company shuttle bus instead of private means of transportation. We have applied WebEx and Skype for internal meetings and consumer interviews and encouraged further use of these capabilities to make communication easier while reducing employee business travel. We have installed one telepresence room. To date, 50% of our office staff has used company buses instead of individual vehicles.

WASTE

Reduce waste in manufacturing We have improved our Waste Water Treatment process and as a result reduced 30% of sludge sent to landfill. By the end of 2013 we have reduced our waste per ton by 19%. Reduce packaging In 2013, we successfully eliminated 10% of unnecessary packaging and PVC packaging was eliminated from use in both innovation and promotion. Reduce office waste We are continuing to work with others (suppliers and waste service providers) to reduce, reuse and recycle waste. The Green Office program has helped remove all cups and waste bags made of plastic and were replaced by eco friendly materials. 30 % reduction in paper consumption per head by end 2013.

UNILEVER SUSTAINABLE LIVING PLAN VIETNAM 2013

ENHANCING LIVELIHOOD
Enhance the livelihoods of millions of Vietnamese as we grow our business.

SUPPORTING ECONOMIC DEVELOPMENT FOR POOR HOUSEHOLDS FOR A BETTER LIVELIHOOD Micro-entrepreneurs
The company is always committed to making Vietnamese lives better, especially for women and children. This is a solid basis for the long-term strategic partnership between the Unilever Vietnam Foundation (UVF) and Vietnam Womens Union (VWU). The program, Empowering women through business development and health education, aims to help poor women in all 63 provinces of Vietnam to improve living standards by giving them better access to employment and training, to establish their own small businesses with the support from micro finance program and to enhance their daily family care by educating them about good health, hygiene and nutrition. Initiated in January 2007, Micro Finance Program has been implemented effectively in 7 provinces and financially supported poor women with a sustainable source of funding to start their own small businesses. This program not only provides these women with micro loans but also personal capability development trainings. 5 out of 7 provinces where the projects are implemented have successfully built Micro Finance model of independent Social Fund which operate sustainably under the management of local Womens Unions. We have helped 20,000 poor households access to micro financial loans worth 100 billion VND and will have provided training on health and nutrition for nearly 2.6 million women by the end of 2013. By 2020, we aim to roll out this project to other provinces and provide support for over 100,000 women to access to micro finance program.

Unilever Vietnam International Co., Ltd 156 Nguyen Luong Bang Street, Ward Tan Phu, District 7, HCMC T +84 (8) 54135686 F +84 (8) 54135630 The Unilever Sustainable Living Plan: Further information on our progress report 2013 can be found on our website:

WWW.UNILEVER.COM.VN/SUSTAINABLE-LIVING