Doing business differently: growing in a resource-constrained world Paul Polman: CEO Unilever University of Indonesia 29 September 2011
Strengthening our partnership
An uncertain world
A V.U.C.A world
Structure • Social and environmental challenges • Unilever’s strategy for growth • Sustainable business models for 21 st century • The importance of leadership
Unilever Sales in over 180 countries Present in half the households on the planets Used by 2 billion people every day Revenues of around $60 bn
You will know us by our brands
Our brands have a long history
• Social and environmental challenges • Unilever’s strategy for growth • Sustainable Business models for 21 st century • The importance of leadership
Shift of economic power to the east
Shift of power to the consumer in a digital world
The end of the “age of abundance” Source: UK Government Office Of Science
Population growth drives everything A city the size of 9.6 billion people in 2050 London every month
• Social and environmental challenges • Unilever’s strategy for growth • Sustainable business models for 21 st century • The importance of leadership
Double our growth while reducing our environmental impact Our ambition is to € 80bn double the size of Unilever whilst at the same time reducing our environmental € 40bn footprint environmental impact
Unilever Sustainable Living Plan
Three key features ALL BRANDS ALL COUNTRIES
Three key features ALL BRANDS LIFECYCLE ALL COUNTRIES IMPACTS Raw Materials Manufacture Transport Consumer Use Disposal
Three key features SOCIAL ALL BRANDS LIFECYCLE ECONOMIC ECONOMIC ALL COUNTRIES IMPACTS ENVIRONMENTAL
Black soy bean farmers SOCIAL 7,000 farmers and 40,000 beneficiaries ECONOMIC ECONOMIC high quality supply for Kecap Bango sustainable practices ENVIRONMENTAL
Three big goals HELP SOURCE HALVE IMPROVING REDUCING ENHANCING 1 BILLION 100% ENVIRONMENTAL HEALTH ENVIRONMENTAL LIVELIHOODS PEOPLE IMPROVE OF AGRICULTURAL & WELLBEING FOOTPRINT OF IMPACT THEIR HEALTH RAW MATERIALS OUR PRODUCTS &WELL-BEING SUSTAINABLY
We have only one planet, not three
Consumers want it A more sustainable Ethically sourced brand is a more products are desirable brand growing
Customers want it Many retailers have their They need our support own sustainability goals to achieve them
It fuels innovation New products with new Product and packaging innovation consumer benefits
It fuels innovation Safe, clean, inexpensive 5 times less expensive drinking water than bottled water
It helps grow markets 1.6 million people Global target: 1 billion people by reached with hygiene 2015 education in Indonesia
It saves money Manufacturing eco-efficiency approx $300m savings 2006-10
• Social and environmental challenges • Unilever’s strategy for growth • Sustainable business models for 21 st century • The importance of leadership
Key elements of the new business model Shared value Long-term Collaborative outlook Accept wider Transparent responsibilities
• Social and environmental challenges • Unilever’s strategy for growth • Sustainable business models for 21 st century • The importance of leadership
We need leadership from a new generation
“Unless we change direction, we are likely to end up where we are going” Chinese Proverb ”
A growing world player
“Optimism is the faith that leads to achievement. Nothing can be done without hope and optimism.” Helen Keller ”
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