Use of Life Cycle Assessment by Unilever Benefits and Consequences P J McKeown Safety and Environment Assurance Centre Unilever Life Cycle Assessment of Food Products Technological Institute, Aarhus 8th February 2001 Unilever SEAC

Outline of Presentation Unilever - Who are they? Unilever Environment Policy and Strategy Life Cycle Assessment - supporting the strategy Unilever SEAC

Multinational organisation >275,000 employees Unilever - Who are they? Multinational organisation >275,000 employees Factories in >90 countries Sales in over 150 Countries Main product categories Foods and Home and Personal Care Products Unilever SEAC

Unilever - Foods Brands SEAC

Unilever Environment Policy Unilever is committed to meeting the needs of customers and consumers in an environmentally sound and sustainable manner, through continuous improvement in environmental performance in all our activities Unilever SEAC

Unilever Environment Policy Measure and report environmental performance of manufacturing sites Target setting - continuous improvement EMS - all sites audited with improvement plans Moving towards external accreditation - ISO 14001 Unilever SEAC

Unilever Environment Strategy Eco-efficiency in the supply chain Eco-innovation in products and services Sustainable Development Initiatives Communication Life Cycle Assessment helps to support the Strategy Unilever SEAC

Eco-efficiency in the Supply Chain Historically - main focus of environmental improvements on own processes LCA applied to many of our product systems • Started in late 1980s • Identify areas of significant environmental impact • Quantify Unilever’s contribution to the total impact • Broaden focus of environmental improvements Unilever SEAC

Example Product Systems Studied Using LCA Frozen vegetables Ice Cream Tea Tomato-based sauce Margarine and spreads Laundry products Household cleaners Shower gels Toothpaste Unilever SEAC

Position of Unilever in Food Supply Chain Primary Raw Material Extraction Agriculture Raw Material Processor Unilever Factory Distribution/Retail Network Consumer Unilever SEAC

SEAC Frozen Vegetable Life Cycle FERTILISERS PESTICIDES DIESEL FUEL LAND, WATER GREENHOUSE GASES RUN-OFF LEACHATE VEGETABLE AGRICULTURE ENERGY ELECTRICITY NATURAL GAS WATER VEGETABLE PROCESSING FACTORY WATER POLLUTION SOLID WASTE PACKAGING MATERIALS REPACK PROCESS FOR PEAS EMISSIONS RESOURCES ELECTRICITY TRANSPORT FUELS FROZEN PRODUCT IN COLD STORE DISTRIBUTION / RETAIL FUELS PACKAGING WASTE CONSUMER TRANSPORT AND STORAGE WATER FUELS ELECTRICITY Unilever SEAC ELECTRICITY NATURAL GAS CONSUMER USE / WATER HEATING PACKAGING WASTE

Outcome of Food LCA Studies Many impacts occur both upstream and downstream of our operations To achieve significant improvements and benefits for the environment a new approach was required: • Engage in partnership with the supply chain • Educate consumer Unilever SEAC

Eco-innovation in Products and Services Awareness raising - product developers/marketing Integrate eco-efficiency into design Include environmental considerations in innovation awards Improve understanding of consumer attitudes Work in partnership with industry and retail trade Unilever SEAC

Integrate Eco-efficiency into Design Use of existing tools to assess environmental impact of innovation projects Development of a range of tools for use at decision points in Innovation Process Model Pilot the use of eco-efficiency parameters to enhance creativity Unilever SEAC

Environmental Assessment Tools Innovation Process Model Decision gates LAUNCH Post Launch Evaln. Launch Prepn. Ideas Feasibility Capability Rollout Full LCA Screening LCA Checklist/ Matrix Environmental Assessment Tools Unilever SEAC

Making Tools Available LCA - Currently “niche” application Often seen as “time-consuming”, “expensive” .. Life cycle approaches must be simplified and made available Web tool being developed for product/process developers Unilever SEAC

LCA Web Tool EXPERT / SYSTEM ADMINISTRATOR (SEAC LCA) Remote PC plus Web browser (e.g. IE5) Create product templates, control panels, standard report formats, database maintenance and access control Experts use system for LCA studies Windows NT Server (Port Sunlight) LCA Web application and tools (to create control panels and standard report formats) Product System Templates, TEAM™ Software, Databases Request submitted via WEB using standard Control Panel Results returned via WEB in selected standard format END USER (Trained) Remote PC plus Web browser (e.g. IE5) Unilever SEAC

Sustainable Development Initiatives Unilever committed to 3 sustainable development themes • Sustainable Fisheries • Sustainable Agriculture • Clean Water Stewardship Unilever SEAC

Background to Sustainability - OBIA Overall Business Impact Assessment (OBIA) - Unilever Imprint LCA of Unilever’s Global Business Convert to relevant potential environmental impacts Scale using estimated total global potential environmental impacts Compare with normalised economic value added (sales/global GDP) Identify areas of potential un-sustainability Unilever SEAC

Unilever’s Contribution to Environmental Performance Indicators 6 = sales as proportion of Global GDP 5 Bars = Unilever potential impact as proportion of estimated total global potential impact 4 3 environment impact more than 2 economic value added 1 environment impact less than economic value added solid waste ozone depletion energy acidification nutrification global warming photochemical smog SEAC Unilever

Sustainable Agriculture The supply chain for over 2/3 of Unilever’s raw materials starts at farms or plantations There are many problems associated with intensive agricultural systems Loss of soil fertility Reduction in biodiversity Use of water (over 70% of global water abstraction used in agriculture) Decline in quality of rural life

Sustainable Agriculture Pilot Projects • Black leaf tea • Peas • Spinach • Tomatoes • Palm Oil • Other oil seeds Unilever SEAC

LCA and Sustainable Agriculture • LCA methodology applied to each sustainable agriculture pilot crop • Provides understanding of environmental impacts across agricultural supply chains • Places Agricultural stage in context with rest of supply chain • Aids in the development of sustainability indicators Unilever SEAC

Approach to Sustainability Indicators Produce high-yield crops while minimising losses during harvest and processing; increase nutritional quality while keeping the amount of inputs (e.g. fertilisers and pesticides) as low as possible Ensure that soil fertility, water, biodiversity and air are not adversely affected Use as many renewable resources as possible and minimise the use of non-renewables Enable communities to protect and improve their well-being and environments

Sustainable Agriculture Ten Key Indicators: • Soil Fertility & Health • Soil Loss • Nutrients • Pest Management • Biodiversity • Product Value • Energy • Water • Social and Human Capital • Local Economy Unilever SEAC

Clean Water Stewardship Water is used in the supply chain of our ingredients Water is used in Unilever factories Water is a vital ingredient in many of our products Consumers often need water to use our products

LCA and Clean Water Stewardship • Water imprint undertaken based on OBIA approach • Regional assessment is now being undertaken • Based on Life Cycle approach across supply chain Unilever SEAC

• Corporate Environment Report • Unilever Internet Site Communication and LCA Internal • Awareness Raising • Innovation support External • Trade • Regulators • European Commission • Industry • Corporate Environment Report • Unilever Internet Site • Conferences, Presentations • Brochures, publications Unilever SEAC

Individual Product LCA Summary (1) Individual Product LCA Identify significant environmental aspects across the life cycle of products Place Unilever contribution in context Aid in Internal communication and awareness raising Support for new product launch (PR) Uptake of environmental aspects in product development/innovation (ecodesign) Tool development to extend use of LCA to a wider audience (web) Unilever SEAC

Assessment of Unilever’s global environmental impact Summary (2) Strategic Level - LCA Assessment of Unilever’s global environmental impact Contributed to the initiation of the Sustainable Development projects Life cycle approach is integral to certain aspects of the Sustainable Development projects LCA as a tool and concept is a key, integral component of Unilever’s environmental strategy Unilever SEAC