Consumers
Environmental, Social and Governance
Our sustainability strategy is fully integrated into our business strategy. It enables us to consistently make progress on our sustainability agenda while delivering better performance.
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
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.
Governance: For the benefit of our stakeholders
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.
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.