Management and Process Disclosures

Policy and management processes

Management Disclosures Highlights

ESG Committee

At Board Level


Independent Directors on ESG Committee


ESG Goals

Policy and management processes

Disclosure Questions P1
Ethics & Integrity
Sustainable Products
Employee Well Being
Human Rights
Regulatory Requirement
Inclusive Growth
Consumer and IT
1. a. Whether your entity's policy/policies cover each principle and its core elements of the NGRBCs. (Yes/No) Yes, we have an ESG Policy, approved by our ESG Committee, which covers all NGRBC principles. In addition to the ESG Policy, we also have various other policies* relevant to NGRBC principles.
1. b. Has the policy been approved by the Board? (Yes/No) Yes
1. c. Web Link of the Policies, if available Policies can be accessed on the link and some internal policies as applicable to employees are available on our intranet.
2. Whether the entity has translated the policy into procedures. (Yes / No) Yes
3. Do the enlisted policies extend to your value chain partners? (Yes/No) Yes, our Code of Business Principles (CoBP) and Responsible Partner Policy (RPP) extend to value chain partners.
4. Name of the national and international codes/ certifications/ labels/ standards (e.g. Forest Stewardship Council, Fairtrade, Rainforest Alliance, Trustea) standards (e.g. SA 8000, OHSAS, ISO, BIS) adopted by your entity Our CoBP conforms to UNGC guidelines and ILO Principles Rainforest Alliance, TrustTea, Forest Stewardship Council, Roundtable on Sustainable Palm Oil (RSPO), Round Table for Responsible Soya, FSSC 22000 Unilever Occupational Health & Safety Framework based on the OHSAS Safety Management system Unilever Environmental Care Framework based on ISO 14001 standards Our CoBP conforms to UNGC guidelines and ILO principles Unilever Environmental Care Framework standards based on ISO 14001 standards Tax Transparency policy is based on OECD principles CSR disclosures pursuant to Section 135 of the Companies Act, 2013 We fully align our internal cyber security standards and control framework to an industry-recognised framework (CIS top 20 Centre for Internet Security).

Advertising Standards Council of India (ASCI) - Code on Fair Advertising to Consumers (we are a founder member of ASCI).
5. Specific commitments, goals, and targets set by the entity with defined timelines, if any. We have set specific environmental, social, and governance (ESG) goals i.e. 'HUL Compass ESG Goals', serving as our strategy to deliver consistent, competitive, profitable, and responsible growth. We have set an ambitious sustainability agenda to tackle the issues that our consumers and stakeholders care deeply about, such as climate change; protect and regenerate nature; waste-free world; positive nutrition; health and well-being; equity, diversity, and inclusion; raise living standards; and the future of work.

The HUL Compass ESG Goals forms a part of the Integrated Annual Report at Pages 10 and 11.
6. Performance of the entity against the specific commitments, goals and targets along-with reasons in case the same are not met. We constantly monitor the performance towards 'HUL Compass ESG Goals' and take adequate actions wherever required. We have a robust governance mechanism to monitor the progress of our sustainability goals. The Compass leadership team reports the progress to the Chief Executive Officer & Managing Director and Management Committee on a quarterly basis. Our ESG Committee, chaired by an Independent Director & comprising of a majority of Independent Directors, assists the Board in overseeing the vision and focus on our strategy relating to ESG as well as monitoring the progress against the stated vision and reviewing the policies and practices, initiatives and goals relating to ESG, ensuring that they remain effective.

For details, refer to ESG highlights section of the Integrated Annual Report at pages 36 to 39.

*P1: Code of Business Principles (CoBP), Policy on Conflict of Interest, Policy on Prevention of Insider Trading (Share Dealing Code), Anti-corruption and Anti-bribery Policy, Board Familiarisation Programme, Corporate Governance Code, Policy on Related Party Transactions, Whistle Blower Policy, Policy for Determination of Materiality of Events, Code of Conduct for Board and Members of Senior Management
P2: Responsible Partner Policy (RPP), Business Partner Code, Quality Policy
P3: CoBP, Safety & Health Policy, Equal Opportunity Policy, Disability Accommodation Policy, Parental Leave Policy, Prevention of Sexual Harassment Policy (POSH), Affirmative Action Policy, Education Assistance Policy, Reward Policy, Gender Transition Policy, Career Break Policy, Location flexibility and Split Family Arrangement, Travel Policy for New Parents
P4: CoBP, CSR Policy, Corporate Governance Code
P5: CoBP, Prevention of Sexual Harassment Policy (POSH), Policy to Support Survivors of Abuse, Whistle Blower Policy, Board Diversity Policy
P6: Environment, Health & Safety Policy, CoBP
P7: CoBP, Anti-trust and Fair Competition (as part of CoBP)
P8: Supplier Diversity & Inclusion Programme, CoBP, CSR Policy
P9: Cyber Security Policy, Data Privacy Policy, Quality Policy

Governance, leadership, and oversight

7.Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements (listed entity has flexibility regarding the placement of this disclosure) Dear Stakeholders,

I am pleased to share our first Business Responsibility and Sustainability Report (BRSR) for the Financial Year 2022-23. The report aims to enable our stakeholders to know more about our sustainability performance.

Sustainability is ingrained in our purpose: 'to make sustainable living commonplace'. We are committed to sustainable growth by delivering products that meet the evolving needs of our consumers, while minimising their impact on the environment. We firmly believe that sustainability and profitability go hand-in-hand.

Our Compass Strategy charts a clear pathway for us to embed sustainability into our multi-stakeholder model and achieve our vision of becoming a leader in sustainable business. To transform this vision into reality, we have set forth a series of multi-year, time-bound goals focused on vital areas, such as climate action, protecting and regenerating nature, waste-free world, positive nutrition, equity, diversity, and inclusion, raising living standards, and the future of work. These goals are anchored on three fundamental pillars: improve the health of the planet, improve people's health, confidence, and wellbeing, and contribute to a fairer, more socially inclusive world.

We have made significant progress against 'HUL Compass ESG Goals'. In our own manufacturing operations, we have reduced our CO2 emissions by 97% (per tonne of production), water usage by 48% (cubic meter per tonne of production) and total waste generated from its factories by 55% (per tonne of production) in FY 2022-23 compared to 2008 baseline. Hindustan Unilever Foundation (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. In Calendar Year 2021 and 2022, we have collected and processed more plastic packaging than we used as packaging materials for our products by maintaining industry-leading standards for balanced pan-India collection. We continue our food reformulation strategy to become a force for good and are committed to doubling the number of products sold that deliver positive nutrition by 2025.

In 2022, we formed an Environmental, Social, and Governance (ESG) Committee at the Board level comprising four Independent Directors and one Executive Director. The ESG Committee is responsible for overseeing and guiding our ESG Strategy, performance and implementation. This includes monitoring and reporting on our progress towards 'HUL Compass ESG Goals', as well as ensuring that our operations align with our purpose.

The Board acknowledges that sustainability is a perpetual voyage and is steadfast in its resolve to enhance our sustainability performance continuously. We will persist in striving to attain 'HUL Compass ESG Goals' by promoting innovation and collaboration throughout our value chain and spearheading progress towards a more sustainable future.

Sanjiv Mehta
Chief Executive Officer and Managing Director
8.Details of the highest authority responsible for implementation and oversight of the Business Responsibility policy (ies). Our CEO & MD is responsible for implementation and oversight of the Business Responsibility & Sustainability policies.
9. Does the entity have a specified Committee of the Board/ Director responsible for decision making on sustainability related issues? (Yes / No). If yes, provide details. The ESG Committee of the Board is responsible for oversight on sustainability-related matters. The ESG Committee of the Board comprises five Directors (four Independent Directors and one Executive Director).

Sr. no. Name of the Director DIN Designation Role
1 Ashu Suyash 00494515 Independent Director Chairperson
2 O. P. Bhatt 00548091 Independent Director Member
3 Kalpana Morparia 00046081 Independent Director Member
4 Ashish Gupta 00521511 Independent Director Member
5 Sanjiv Mehta 06699923 Executive Director Member

*Assured by external independent firm

10. Details of Review of NGRBCs by the Company: Indicate whether review was undertaken by Director / Committee of the Board/ Any other Committee

Subject for review Indicate whether the review was undertaken by the Director/ committee of the Board/any other committee Frequency (annually/half yearly/quarterly/other - please specify)
P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9
Performance against above policies and follow up action All NGRBC related Policies are reviewed by ESG Committee. Additionally, Audit Committee reviews the Code of Business Principles. ESG committee - Half yearly basis

Audit Committee - Quarterly basis (for CoBP)
Compliance with statutory requirements of relevance to the principles, and rectification of any non-compliances Compliance with statutory requirements of relevance to the principles, and rectification of any non-compliances is done by the Audit Committee Quarterly basis

11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external agency? (Yes/No). If yes, provide name of the agency.

S.No. P1 P2 P3 P4 P5 P6 P7 P8 P9
1 We have a robust functional review mechanism complemented with a strong independent internal audit process that covers the working of all key policies. The internal audits are conducted by various external independent firms during the year. In addition to above, relevant third-party assessments are conducted across business units periodically.

12. If answer to question (1) above is No i.e. not all Principles are covered by a policy, reasons to be stated:

Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
The entity does not consider the Principles material to its business (Yes/No) Not Applicable
The entity is not at a stage where it is in a position to formulate and implement the policies on specified principles (Yes/No)
The entity does not have the financial or/human and technical resources available for the task (Yes/No)
It is planned to be done in the next Financial Year (Yes/No)
Any other reason