Our focus areas in sustainability

We believe that embedding sustainability across our value chain is non-negotiable. Therefore, going forward we will draw greater focus on climate, nature, plastics, and livelihoods which are important sustainability priorities relevant for our business and communities around us.

Climate

Achieve net-zero emissions.

Nature

Nurture resilient and regenerative natural and agricultural ecosystems.

Plastics

Tackle plastic pollution through reduction, circulation, and collaboration.

Livelihoods

Ensure decent livelihoods for people in our value chain.

We remain fully committed to the fundamental tenets of operating as a responsible business: protecting human rights, advancing equity, diversity & inclusion, doing business with integrity and ensuring the safety of people.

Top ESG-rated FMCG company in India

75

#1 in Personal Products Sector in India and among the top 10% companies globally

(As per S&P Global’s Sustainability Yearbook 2024)

AA

Our rating has been upgraded from 'A' to ‘AA'

A/A-

Leadership across all 3 categories i.e. Climate, Water, and Forest

83

Ranked #1 in India in LSEG ESG ratings in the Personal & Household Products Sector

63

Our ESG Score has been classified as a 'Strong' score

21.4

#11 globally in Household Products Category
(Medium Risk)

Environmental, Social and Governance initiatives at Hindustan Unilever

In our journey towards doing well by doing good, we have ensured that our goals and actions are aligned with the nation’s development agenda and the United Nations Sustainable Development Goals (SDGs).

Click on the tabs below and scroll to know more about our Environmental, Social and Governance (ESG) initiatives.

At HUL, we live by our Code of Business Principles and endeavour to operate with utmost integrity, transparency, and accountability. We believe that good governance is the foundation of sustainable and responsible growth and the key to creating long-term value for our stakeholders. Our people and business partners are aligned with our culture, and we embrace the spirit of good governance in everything we do.

Dev Bajpai Executive Director, Legal & Corporate Affairs
and Company Secretary

Ritesh Tiwari

Corporate governance philosophy

Conducting our business with integrity and highest level of governance has been core to our corporate behaviour and forms its bedrock.

Our core values

Integrity

Respect

Responsibility

Pioneering

Our core principles

Our core principles of governance have been the guiding force for our corporate behaviour over the last ninety years and will continue to be so in years to come.

Board Oversight

Board of Directors

The Board’s primary role is to ensure the long-term sustainable success of our business for the mutual benefit of all stakeholders.

Board Committees

The Board Committees play a crucial role in the governance structure and have been constituted to deal with specific areas/activities which need a closer review.

Audit Committee

Nomination and Remuneration Committee

Stakeholders’ Relationship Committee

Corporate Social Responsibility Committee

Risk Management Committee

Environmental, Social and Governance Committee

CEO & MD and Management Committee

The CEO & MD, supported by the Management Committee, is responsible for ensuring delivery of our strategy, business plans and financial performance.

Management Accountability

Board composition

Independent

Non-Executive

Executive

100%

Board Committees led by
Independent Directors


100%

Members in Audit Committee, Nomination and Remuneration Committee and Corporate Social Responsibility Committee are Independent Directors

Skilled and
competent board

The Board comprises Directors with appropriate balance of skills, experience, diversity, independence, and knowledge about our business that enables it to discharge its duties and responsibilities effectively.

92%

Leadership expertise

83%

Crafting business strategies

92%

Understanding of emerging markets and consumer insights

75%

Financial expertise and risk management

75%

Experience of overseeing large and complex business operations requiring proven administrative & managerial skills

33%

Cyber security, digital / information technology and data governance

100%

Corporate governance and legal framework

100%

Purposeful business and sustainability / ESG

100%

People and talent development

Our Board Familiarisation Programme
comprises the following:

  • Induction programme for all new Directors

  • Immersion sessions on business and functional issues

  • Strategy sessions

100%

Independent Directors covered by familiarisation training

Board activities and key
discussions during the year

The Board of Directors met seven times in FY 2023-24, with a participation rate of 99%. The Board discussed and decided on a variety of matters ranging from succession planning, ESG to people development.

Insight into Board discussions

Strategy

Sustainability & Risk Management

Governance

People & Talent

Financial Review

Operational and functional

Strategy

Governance

Financial review

Sustainability & Risk Management

People & Talent

Operational and functional

Key decisions during the year

Appointment of Ms Neelam Dhawan and Mr Tarun Bajaj as Additional (Independent) Directors

Strategic partnership with Brookfield for Green Energy to help HUL in its journey towards net-zero

Amendment to the Policy on Determination of Materiality of Events

Reconstitution of the Committees to increase the independence of the Committees

Changes to the Management Committee

Introduction of the HUL Performance Share Plan Scheme 2024

3 full day

Board strategy meeting in January 2024

average attendance

in Board meetings

Business integrity
& compliance

Business Integrity Framework

Business Integrity is all about how we work. Our Business Integrity Framework ensures that how we do business is fully aligned with our values and applicable laws and regulations. It has three pillars:

We seek to embed a culture of integrity at all levels

We encourage employees to speak up and give voice to their values

We have the tools to investigate and if necessary, sanction confirmed breaches, and use what we learn to continually improve

Code of Business Principles

Our Code of Business Principles is our guidebook for putting our values into practice. It sets out a clear standard of conduct to ensure that we make the right choice always. The Code and Code Policies provide a framework of simple ‘Musts’ and ‘Must Nots’ designed to be readily applied by employees in their day-to-day work. They are mandatory for all employees and others working for HUL.

100%

employees trained on Code of Business Principles

Key policies that guide
our behaviour

Corporate Governance Code

Our Corporate Governance Code adopted by the Board acts as a comprehensive framework within which HUL, the Board of Directors, and Board Committees may effectively operate for the benefit of varied stakeholders.

Responsible Partner Policy

Our Responsible Partner Policy and its fundamental principles embody our commitment to responsible, transparent, and sustainable business.

Whistle Blower Policy

Our Whistle Blower Policy acts as a mechanism to help alert the Management about any unethical behaviour, suspected fraud, abrasion or irregularity in HUL practices, without any fear or threat of being victimised, by responsible individuals.

Share Dealing Code

Our Share Dealing Code helps to develop a basic understanding of the law relating to prohibition of insider trading and to reiterate HUL’s policy and code for dealing in its securities.

Policy on Related Party Transactions

Our Policy on Related Party Transactions is intended to ensure that proper reporting, approval, and disclosure processes are in place for all transactions between HUL and its Related Parties.

Affirmative Action Policy

Through our Affirmative Action Policy we ensure no bias in employment opportunities for applicants belonging to disadvantaged sections of society if such applicants possess competitive skills and job credentials as made public.

Gender Neutral POSH Policy

We are committed to provide an environment that ensures every person at the workplace is treated with dignity, respect, and equality.

Safety & Health Policy

Through our Safety & Health Policy we aim to bring safety on top of mind for all employees and to integrate it with all business processes.

Policy for Supporting Survivors of Abuse

The Policy seeks to protect and grant relief to employees who are survivors of abuse, or acts of physical/emotional abuse beyond the workplace, i.e. in their personal (home) or other public spaces including online medium.

Environment Policy

Through our Environment Policy we aim to prevent or minimise the risk of an adverse environmental impact arising from processing of our products, its use or foreseeable misuse.

ESG governance

Sustainability is integrated into our business strategy with a belief that sustainable business and financial performance go hand-in-hand. With a robust governance mechanism, we are continually working towards our ESG Goals to lead change and make a positive difference to people and the planet.

ESG Governance Structure

  • Board of Directors

    Responsible for formulating the strategy relating to ESG and sustainability matters

  • ESG Committee

    Responsible for overseeing the vision and focus on the strategy relating to ESG and sustainability matters

  • ESG Functional Leads

    Responsible for on-ground implementation and execution of HUL ESG Goals

Every ESG Goal has a dedicated Management Committee Sponsor and a Goal Leader who drives its delivery, working closely with Business Units and Functions

Interaction of the ESG Committee with
other Board Committees

The ESG Committee works closely with other Board Committees, particularly in areas of ESG risk monitoring and reporting, to further our ESG ambitions.

ESG
Committee

+

Risk Management Committee

Oversee the identification and mitigation of risks relating to ESG and review the effectiveness of risk management and internal control policies, where relevant, to ESG matters

ESG
Committee

+

Audit
Committee

Monitor HUL’s ESG ratings and statutory requirements for sustainability reporting & disclosures e.g., Business Responsibility & Sustainability Reporting (BRSR)

Risk governance

We have an elaborate Risk Management Framework that aims to embed risk management in the normal course of business. Business Risk Assessment procedures have been set in place for self-assessment of business risks, operating controls and compliance with Corporate Policies.

Risk Governance Structure

  • Board of Directors

    Highest governing body overseeing all aspects of risk management.

  • Risk Management Committee

    Assists the Board in monitoring and reviewing the Risk Management Policy and carries out formal bi-annual review of risks.

  • Audit Committee

    Responsible for Risk Identification, Risk Minimisation and Risk Mitigation as a part of Risk Management Framework. (jointly with the Board and Risk Management Committee)

  • Management Committee

    Escalates any new or enhanced risks to the Risk Management Committee as soon as they are perceived in the business.

Members of the senior leadership provide an annual Positive Assurance confirming their understanding and adherence to the processes relating to risk management.

Internal Auditor provides an independent re-assurance to the Board, that all major risks affecting the achievement of HUL’s objectives are adequately understood and managed.