Unilever Global Change location
Millions of people depend on Unilever to earn a living, so we’re committed to helping improve their living standards. We’re working to ensure that everyone who directly provides us with goods and services will earn at least a living wage or living income. And we’re helping small and medium-sized enterprises in our retail value chain to grow with the support of skills, finance and technology.
Our focus in 2022 was on collaborative manufacturing partners who are dedicated solely to Unilever production and suppliers who provide core services to Unilever.
We have increased the number of active small retail stores using our digital ‘route-to-market’ platforms to purchase our products, and in turn grow their business.
Millions of people depend on Unilever to earn a living. Ensuring that suppliers pay their workers a living wage or income by 2030(a) will help us to raise living standards throughout our value chain.
Our focus in 2022 was on the collaborative manufacturing partners who are dedicated solely to Unilever production. Some of our partners have already confirmed that workers at collaborative manufacturing sites are being paid a living wage. We have also made good progress in laying the foundations to ensure that suppliers who provide core services to Unilever pay a living wage.
To reflect the evolving nature of our third parties and value chain, in December 2022 we published our Responsible Partner Policy, which replaces the Responsible Sourcing Policy and Responsible Business Partner Policy. The new policy has a broader scope and includes guidance on reducing GHG emissions, minimising waste, safeguarding nature and protecting personal data. It also includes a future mandatory requirement for suppliers to pay a living wage to their workers. We plan to phase in this requirement across our different procurement categories.
We have put in place a comprehensive advocacy programme to drive the widespread adoption of living wage commitments by companies, governments, NGOs and investors. We recently published a study with Business Fights Poverty, the University of Cambridge and Shift to showcase the business benefits of taking action on a living wage. We have also started a number of impact studies, for example with Oxfam in India, to demonstrate the impact of paying workers a living wage.
Our business in emerging markets relies on a thriving distribution network and millions of small retailers – independent stores, outlets and kiosks, and micro-entrepreneurs making sales in neighbourhoods, on streets and door-to-door.
We are working to bring more retailers onto ‘eB2B’ digital commerce platforms which help keep their shelves stocked with products, so they can unlock the potential of their businesses. Platforms such as Shikhar in India, Siparis Direkt in Turkey and Sahabat Warung in Indonesia are helping small retailers who sell Unilever products to meet the changing needs of their consumers.
At the end of 2022, 1.8 million small retailer stores used our digital commerce platforms, enabling them to purchase our products and in turn grow their business. We now have evidence from four independent studies that our digital platforms support business growth. One study in Pakistan involving over 650 of our small retailers found that the majority of retailers who had used our digital commerce platform attributed their higher business growth to the use of the platform.
Beyond digital platforms, we are also providing targeted training and financial support to our smaller customers, such as extended payment terms and cashless payments. In the Philippines, for example, we are providing business skills training to micro-retailers through our Kabisig eSummits. The summits give retailers access to training on topics such as customer engagement and sales, so they can run their business more effectively and profitably. Independent studies have shown that the summits have helped participating retailers grow their business.
A living wage is the remuneration received for a standard working week by a worker in a particular place which is sufficient to afford a decent standard of living for the worker and their family. A living income is the net annual income required for a household in a particular place to afford a decent standard of living for all members of that household.
