General Disclosures

General Disclosures

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Message from Our Leadership

"Our vision is to deliver winning performance by being the leader in sustainable business. We will demonstrate how our purpose-led, future-fit business model drives superior performance, delivering growth that is consistent, competitive, profitable and responsible."

Ritesh Tiwari
Executive Director, Finance & IT and Chief Financial Officer

General Disclosures Highlights

0

Employees

0

Workers

0

%
Gender Diversity - Board Level

0

%
Gender Diversity - Managerial level

0

Persons with Disabilities (PwD)

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Women on Shopfloor

Employer of
Choice

by insideIIM.com

Best
Organization for
Women

by The Economic Times

I. Details of the listed entity

S. No Particulars held Response
1 Corporate Identity Number (CIN) of the listed entity L15140MH1933PLC002030
2 Name of the listed entity Hindustan Unilever Limited
3 Year of incorporation 1933
4 Registered office address Unilever House, B. D. Sawant Marg, Chakala, Andheri (East), Mumbai-400099
5 Corporate address
6 E-mail levercare.shareholder@unilever.com; comsec.hul@unilever.com
7 Telephone + 91 (0) 022 - 5043 2790/32516/32754
8 Website www.hul.co.in
9 Financial year for which reporting is being done 1st April, 2022 to 31st March, 2023
10 Name of the Stock Exchange(s) where shares are listed BSE Limited; National Stock Exchange of India Limited
11 Paid-up Capital ₹235 crores
12 Name and contact details (telephone, email address) of the person who may be contacted in case of any queries on the BRSR report. Name: Dev Bajpai - Executive Director, Legal & Corporate Affairs, and Company Secretary.
Contact: + 91 (0) 022 - 5043 2790/32754
Email: levercare.shareholder@unilever.com
13 Reporting boundary-Are the disclosures under this report made on a standalone basis (i.e., only for the entity) or on a consolidated basis (i.e., for the entity and all the entities that form part of its consolidated financial statements taken together)? Disclosures under this report are made on a consolidated basis for wholly owned subsidiaries

(Refer table V-21. (a) for list of wholly-owned subsidiaries)

II. Products/services

II-14. Details of business activities (accounting for 90% of the turnover):

S. No Description of Main Activity Description of Business Activity Entity turnover (%)
1 Manufacturing - FMCG Soaps, Detergents, Cosmetics & Toiletries, Packaged Foods 100.0%

II-15. Products/Services sold by the entity (accounting for 90% of the entity's Turnover):

S. No Product/Service NIC Code Total Turnover contributed (%)
1 Beauty and personal care 20231 Soaps
20236 Shampoos
20235 Toothpastes
20234 Deodorants
20237 Cosmetics
96020 Hairdressing and other beauty treatment		 36.7%
2 Home care 20233 Detergents
27501 Water purifiers
28195 Air purifiers
20239 Surface and Bathroom Cleaners		 35.4%
3 Food and refreshments 10791 Tea
10792 Coffee
10750 Packaged foods (including frozen desserts)
10794 Malt-based foods		 24.8%

III. Operations

III-16. Number of locations where plants and/or operations/offices of the entity are situated:

Location Number of Plants Number of Offices Total
National 29 10 39
International 0 0 0

III-17. Markets served by the entity:

a. Number of locations

Locations Number
National 28 States and 8 Union Territories
International 43 countries

We have a pan-India presence and serve all States and Union Territories in India.

b. What is the contribution of exports as a percentage of the total turnover of the entity?
2.5%, The focus of the Fast Moving Consumer Goods (FMCG) exports operation is two-fold: to expand global presence of brands, such as Vaseline, Dove, Pears, BRU, Red Label, Lakme, Horlicks, and Boost, and to effectively provide cross-border sourcing of FMCG products to other Unilever companies across the world.

c. A brief on the types of customers:
We have 90 years of presence in the country, and 9 out of 10 households in India use one or more of our brands. Our brands are present in around nine million retail outlets spread across the country through a network of 3,500+ distributors, who are the backbone of our retail reach. We work with many retail partners to help them grow sustainably alongside us. We have a long-standing relationship with our customers that is based on trust and mutuality of interest. We continue to work with all our partners including small family-owned stores to large, organised retail and e-Commerce to serve the evolving needs of our shoppers. Our endeavour is and has always been to ensure that our brands are easily available wherever shoppers choose to shop.

IV. Employees

IV-18. Details as of the end of the Financial Year:

a. Employees and workers (including differently abled):
We are committed to drive equity, diversity, and inclusion across our value chain. As on March 2023, we have achieved 40% gender diversity across our managerial base and have a strong roadmap to be gender-balanced at managerial level by 2025. Through several programmes, such as 'Samavesh' and 'Ahilya', we are striving to enhance women representation in our factories and salesforce. We have over 850 women as shopfloor employees across our manufacturing locations and have onboarded over 1,000 women in sales.

We are committed to including differently abled persons in our employment ecosystem and workforce. We allow for voluntary self-disclosure and reasonable accommodation policy to enable employees to discreetly disclose their disability and avail support. We have set ourselves a clear objective i.e. 5% of our workforce will be made up of differently abled people by 2025. Refer our page for more details on https://www.hul.co.in/planet-and-society/equity-diversity-and-inclusion/

No. Particulars Total(A) Male Female
No. (B) % (B/A) No. (C) % (C/A)
Employees
1 Permanent (D) 7,719 5,700 73.8% 2,019 26.2%*
2 Other than permanent (E) 311 190 61.1% 121 38.9%
3 Total employees (D + E) 8,030 5,890 73.4% 2,140 26.6%
Workers
4 Permanent (F) 11,251 10,900 96.9% 351 3.1%
5 Other than permanent (G) 8,856 8,306 93.8% 550 6.2%
6 Total workers (F + G) 20,107 19,206 95.5% 901 4.5%

*As on March 2023, we have achieved a gender diversity of 40% across our managerial base.

IV-18. Details as of the end of the Financial Year:

b. Differently abled Employees and workers:

No. Particulars Total(A) Male Female
No. (B) % (B/A) No. (C) % (C/A)
Differently Abled Employees
1 Permanent (D) 60 55 91.7% 5 8.3%
2 Other than permanent (E) - - 0.0% - 0.0%
3 Total differently abled employees (D + E) 60 55 91.7% 5 8.3%
Differently Abled Workers
4 Permanent (F) 13 13 100.0% - 0.0%
5 Other than permanent (G) 5 4 80.0% 1 20.0%
6 Total differently abled workers (F + G) 18 17 94.4% 1 5.6%

IV-19. Participation/Inclusion/Representation of women

Total(A) No. and percentage of females
No. (B) % (B/A)
Board of Directors (BoD) 10 2 20.0%
Key Management Personnel (KMP)* 3 - 0.0%

Above table represents HUL's Board of Directors and Key Management Personnel

* All KMPs i.e. Managing Director & Chief Executive Officer, Executive Director - Finance, IT & Chief Financial Officer and Executive Director - Legal & Corporate Affairs and Company Secretary are part of Board of Directors

IV-20. Turnover rate for permanent employees and workers

We are known for attracting and developing the best talent in the industry and HUL is often referred to as the leadership factory. Recognised as one of the best companies to work for, we continue to be the 'No. 1 Employer of Choice across sectors, based on brand perception study by InsideIIM at target B-Schools in 2022' and 'One of the Best Organisations for Women in 2022 and 2023' by Economic Times.

FY 2022-23
(Turnover rate %)		 FY 2021-22
(Turnover rate %)		 FY 2020-21
(Turnover rate %)
Male Female Total Male Female Total Male Female Total
Permanent Employees 17.7% 25.3% 19.6%* 17.3% 21.9% 18.3% 8.0% 16.5% 9.9%
Permanent workers 7.9% 11.1% 8.0%** 3.7% 2.0% 3.7% 3.4% 2.3% 3.4%

Turnover rate includes voluntary and involuntary attrition
* Voluntary: 16.7%; Involuntary: 2.9%
** Voluntary: 0.5%; Involuntary: 7.5%

V. Holding, Subsidiary and Associate Companies (INCLUDING JOINT VENTURES)

V-21. (a) Names of Holding, Subsidiary, Associate Companies, and Joint Ventures

S. No. Name (A) Type of holding/subsidiary/ associate/joint venture % of shares held by the listed entity Does the entity indicated at column A, participate in the business responsibility initiatives of the listed entity?
1 Unilever PLC Holding - No
2 Unilever Group Limited Holding - No
3 Unilever Overseas Holdings AG Holding - No
4 Unilever UK & CN Holdings Limited Holding - No
5 Unilever South India Estates Limited Holding - No
6 Unilever Assam Estates Limited Holding - No
7 Unilever Overseas Holdings B V Holding - No
8 Unilever India Exports Limited Wholly-owned subsidiary 100.0% Yes
9 Pond's Exports Limited Wholly-owned subsidiary 90.0% Yes
10 Lakme Lever Private Limited Wholly-owned subsidiary 100.0% Yes
11 Unilever Nepal Limited Subsidiary 80.0% Yes
12 Daverashola Estates Private Limited Wholly-owned subsidiary 100.0% Yes
13 Jamnagar Properties Private Limited Wholly-owned subsidiary 100.0% Yes
14 Levers Associated Trust Limited Wholly-owned subsidiary 100.0% Yes
15 Levindra Trust Limited Wholly-owned subsidiary 100.0% Yes
16 Hindlever Trust Limited Wholly-owned subsidiary 100.0% Yes
17 Hindustan Unilever Foundation Wholly-owned subsidiary 76.0% Yes
18 Bhavishya Alliance Child Nutrition Initiatives Wholly-owned subsidiary 100.0% Yes
19 Unilever India Limited Wholly-owned subsidiary 100.0% Yes
20 Zywie Ventures Private Limited Subsidiary 51.0%* No
21 Nutritionalab Private Limited Joint Venture 19.8%* No

* On a fully diluted basis

VI. CSR Details

VI-22. (i). Is CSR applicable as per Section 135 of the Companies Act, 2013 (Yes/No)?
Yes, CSR provisions are applicable as per Section 135 of the Companies Act, 2013. A belief that sustainable business drives superior performance lies at the heart of our business strategy. We have been undertaking CSR activities long before it was introduced by regulations. We have a dedicated CSR Policy focussed on People and Planet, which lays down the approach towards community development in the areas of water conservation, health and hygiene, skill development, education, social advancement, gender equality, empowerment of women, ensuring environmental sustainability and rural development projects. The CSR Policy, as approved by the Board of Directors, is available on our website at https://www.hul.co.in/investor-relations/corporate-social-responsibility/

VI-22. (ii). Turnover (in crores) : ₹ 59,144 crores
VI-22. (iii). Net worth (in crores) : ₹ 50,221 crores

VII. Transparency and Disclosures Compliances

VII-23. Complaints/Grievances on any of the principles Principles (one to nine) under the National Guidelines on Responsible Business Conduct:

Stakeholder group from whom complaint was received Grievance redressal mechanism in place? (If yes, provide web-link for the grievance redressal policy) FY 2022-23 FY 2021-22
No. of complaints filed during the year No. of complaints pending resolution at close of the year Remarks No. of complaints filed during the year No. of complaints pending resolution at close of the year Remarks
Communities Yes
https://app.convercent.com/en-us/LandingPage/99b958aa-55a1-e611-80d3-000d3ab1117e and manual registers at factories		 - - - - - -
Investors (other than shareholders) Not applicable, as we do not have any investors other than the shareholders (e.g., preference shareholders or debenture holders)
Shareholders Yes
https://www.hul.co.in/investor-relations/investor-contacts/ 		186 6 Refer note below** 166 1 An interim reply was filed
Employees and workers Yes
https://app.convercent.com/en-us/LandingPage/99b958aa-55a1-e611-80d3-000d3ab1117e and manual registers at factories		 79 12 - 53 13 -
Customers* Yes
https://www.hul.co.in/contact/ 		3,411 100 - 1,971 185 -
Value chain partners* Yes
https://app.convercent.com/en-us/LandingPage/99b958aa-55a1-e611-80d3-000d3ab1117e 		2 1 - - - -

* Customers include distributors; Value chain partners include vendors/suppliers.

** 4 Complaints were resolved by 5th April 2023 and for the remaining 2 complaints, interim responses were submitted before 31st March 2023.

VII-24. Overview of the entity's material responsible business conduct issues. Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk or an opportunity to the business, rationale for identifying the same, approach to adapting or mitigating the risk along-with its financial implications, as per the following format.

We live in an uncertain and constantly changing world. Having a formal process to identify material sustainability issues helps us report on those, that matter most to our business and stakeholders. A sustainability issue is material to us if it meets two conditions. Firstly, if it is considered a principal risk or an element of a principal risk, which could impact our business or performance. And secondly, if it is deemed to be important to our key stakeholders, including: consumers, our people, customers, suppliers & business partners, shareholders and planet & society. We use our sustainability materiality assessment to identify priority sustainability issues across our value chain so that we are able to report on the issues of most interest to our stakeholders. Table below captures the key material issues identified by us.

S. No. Material issue identified Indicate whether risk or opportunity (R/O) Rationale for identifying the risk / opportunity In case of risk, approach to adapt or mitigate Financial implications of the risk or opportunity (Indicate positive or negative implications)
1 Climate change Risk Climate change is a principal risk to us, which has the potential to impact our business in the short, medium and long term. We face potential physical environment risks from the effects of climate change on our business, including extreme weather and water scarcity. Potential regulatory and transition market risks associated with the shift to a low-carbon economy include changing consumer preferences, increase in product cost, future government policy and regulation. Responsible business practices are critical to generating long-term value. We have set out a clear pathway to tackle climate change, as listed below
  • Zero emissions in our operations by 2030;
  • Halve Green House Gas (GHG) impact of our products across the lifecycle by 2030;
  • Net Zero emissions for all our products from sourcing to point of sale by 2039;
  • Replace fossil-fuel derived carbon with renewable or recycled carbon in all our cleaning and laundry product formulations by 2030.
Across the portfolio, our brands are working towards reducing the environmental impact, including at the consumer use stage.		 Programmes to mitigate risk emanating from climate change can lead to incremental costs in the short-to- medium-term, which can be partly compensated by increased efficiency in the long term. Importantly, these programmes would strengthen business resilience and protect long term value.
2 Packaging and waste Risk We use a significant amount of plastic to package our products. A reduction in the amount of virgin plastic that we use, the use of recycled plastic and an increase in the recyclability of our packaging are critical to our future success. We want to change the way we use plastic by treating waste as a valuable resource. We're transforming our packaging and pushing hard to create a circular economy for waste. Across the portfolio, our brands are working towards reducing the environmental impact, including at the consumer use stage.
  • Collection and Recovery: We are driving waste management programmes through tie-ups with various companies/ NGOs deploying mass collection, processing, and disposal models. We are also helping consumers to understand waste segregation and disposal methods. We have been collecting and processing more plastic packaging waste from across India than the plastic used in the packaging of our finished products in calendar year 2021 and 2022. Over 1,00,000 tonnes of plastic waste have been collected and safely disposed in 2022. We will continue to collect more plastic than we sell going forward as well.
  • Design and development of alternative packaging: We are working on innovative solutions for accelerated development of alternative packaging and associated Supply Chain capability in order to reduce usage of virgin plastic. We will continue to maximize the usage of recyclable plastic in packaging and aim to use 15% recycled plastics in our packaging by 2025.
  • Advocacy: Our advocacy efforts in the area of plastic waste management have been ongoing for the last several years. We believe that plastic is suitable medium for packaging of FMCG products as it's often the lowest carbon footprint option compared to other materials, however, the problem is with respect to plastic waste ending up in the environment. We had advocated amendments to the Plastic Waste Management Rules around the areas of including energy recovery as part of recycling, putting in place a National Framework on Extended Producers Responsibility (EPR) and harmonisation of regulations on plastic waste management between the Central & State Regulations. We are an active member of industry forums that engage with Government on advocacy in this area.
 Increased cost of developing sustainable packaging alternatives and risk of fines and penalties associated with non-compliance with statutory EPR regulations.

In the long run, initiatives and innovation have the potential to yield positive financial outcomes in the form of reduction in the amount of plastic used, use of recycled plastic and alternative packaging.
3 Water Risk The 2030 Water Resources Group has estimated that India will have only half the water it needs by 2030 for farming, household, and industrial use . Rising water scarcity could impact our operations by reducing demand for products that require excessive water during consumer use or decreasing sales because of reduced product efficacy due to water shortages. Uncertainty in the timing and severity of summer, winter, and monsoon may impact the business adversely. We have taken steps to reduce and conserve water across our manufacturing operations. We have delivered a 48% reduction in water usage (cubic meter per tonne of production) in our own manufacturing operations in FY 2022-23 as compared to the 2008 baseline. We could achieve this by focussing on reducing freshwater abstraction, implementing captive rainwater harvesting, and maximising the use of RO plants.
Considering the urgency and importance of water conservation in the communities, we set up Hindustan Unilever Foundation (HUF) in 2010, a wholly owned subsidiary, to create capacity to conserve water. HUF focusses on water conservation, building local community institutions to govern water resources and enhancing farm-based livelihoods through adoption of judicious water practices. So far, HUF along with its partners, has created a cumulative and collective water potential of over 2.6 trillion litres* since its inception over the last decade. To underscore the importance of the water potential created by HUF; 2.6 trillion litres of water is more than the quantity required to meet the drinking water needs of India's population for nearly two years.
We have taken the following goals around water:
  • Contribute to 3 trillion litres of water potential in India through HUF by 2025;
  • Implement water stewardship programmes in 12 locations in water-stressed areas by 2030.
 Water scarcity can have an adverse impact on our operations, agricultural sourcing and can potentially reduce demand for our products that require water during use.

Measures to reduce and conserve water would optimise resource requirement, not just in our operations, but also in the wider communities. This would secure water needs and create enabling environment for future demand of our products.
4 Sustainable sourcing Risk We use many different raw materials to make our products and these are subjected to various sustainability risks. Sustainable sourcing of these materials is fundamental to secure continuous supply and the future growth of the business. Our Responsible Partner Policy(RPP) (https://www.hul.co.in/investor-relations/corporate-governance/hul-policies/) and Unilever Sustainable Agriculture Code (https://www.hul.co.in/planet-and-society/protect-and-regenerate-nature/) are instrumental in ensuring we deliver on business objectives, while making a positive social impact to the lives of millions of people in the supply chains around the world and reducing our environmental impact. We have taken time-bound goals on sustainable sourcing, which are:
  • 100% sustainable sourcing of our key agricultural crops;
  • Deforestation-free supply chain in palm oil, paper and board, tea, soy and cocoa by 2023.
 Unfavourable conditions can impact our operations and increase the cost of our products.

In the longer term, sustainable sourcing of materials can de-risk the supply chain and secure continuous supply, thus enabling opportunities for growth and fulfilling future increase in demand of our products.
5 Governance, ethics, and compliance Opportunity Our brands and reputation are invaluable assets, and how we operate, contribute to society, and engage with the world around is always under scrutiny. Acting ethically is essential to protect our reputation and brands. We have strong values, clear policies, guidelines and related learning materials, as well as robust procedures and controls to prevent, detect and respond to any inappropriate behaviour. Our Business Integrity framework ensures that how we do business is fully aligned with our values and applicable laws and regulations of the country. Our Code of Business Principles (CoBP) and Code Policies govern the behaviour of employees, suppliers, and distributors and other third parties, who work with us. Processes for identifying and resolving breaches of Code and Code Policies are clearly defined and regularly communicated throughout the Company.
We, from the very inception, are known to conduct our business with integrity and highest level of governance, which form the bedrock of our business.		 We are committed to doing business with integrity and play a positive role in building relationships with customers, suppliers and other third parties. Good governance and ethics not only help increase trust among consumers, investors, and other stakeholders, but also help avoid fines, penalties, and other legal implications.
6 Human rights Risk Potential instances of human rights violations or non - compliance with statutory norms can lead to adverse financial and reputational implications The respect for human rights is one of the key priorities for us. The aim is to advance and promote respect for human rights in everything we do - the workplace, through its supply chain, distribution chain and through the brands. With our suppliers, peers, industry bodies, trade unions and civil society, we are working to addressing human rights impact and ensuring that all those connected to our value chain are treated with respect, dignity and fairness. In addition to this, our Code of Business Principles (CoBP) upholds the principles of human rights and fair treatment. Our CoBP also conforms to the International Labour Organisation (ILO) principles. The principles of human rights are followed in the same spirit within and outside the organisation when engaging with business partners. Potential human rights violations and non-compliance can cause damage to corporate reputation and have financial repercussions.
7 Diversity, equity, and inclusion Opportunity We believe that driving equity, diversity, and inclusion strengthens our business. A diverse and inclusive workforce can boost performance , reputation, innovation, and motivation. This will help build a fairer world and strengthen the business. Diversity equity and inclusion have been core elements of our culture and values. We have set out following goals to promote diversity, equity and inclusion across our business:
  • Achieve an equitable and inclusive culture by eliminating bias and discrimination in our practices and policies;
  • Accelerate diverse representation at all levels of leadership;
  • Ensure 5% of our workforce is made up of people with disabilities by 2025;
  • Procurement spends of ₹ 2,000 crores annually with diverse businesses by 2025;
  • Increase the representation of diverse groups in our advertising.
 Diversity, equity and inclusion in our business can boost our performance, drive innovation, help us create balanced work culture and contribute to a fairer, more socially inclusive world.

All of the above will help us attract and retain top quality talent.

*Assured by external independent firm

The above table represents material topics with a very high priority. For a complete materiality matrix, please refer to our website https://www.hul.co.in/planet-and-society/sustainability-reporting-centre/materiality-assessment/. The HUL Compass ESG Goals forms a part of the Integrated Annual Report at Pages 10 and 11.