Executive Summary
Unilever Nigeria’s 2024 Sustainability Report shows commitment across four priority pillars: climate, plastics, nature, and livelihoods. The company aligns with UN SDGs, regularly reports to frameworks such as GRI, SASB, and IFRS S1/S2, and details both governance structures and materiality assessment processes. Impact initiatives include women’s economic empowerment, local sourcing, plastics reduction, and youth employability. Data transparency encompasses energy, water, waste, and emissions metrics. Future priorities focus on expanding renewable energy use, improving supply chain sustainability, and maintaining robust community engagement. Key risks include climate, regulatory, operational, and reputational—are managed via structured committees and consistent policy review. Areas for improvement include strengthening supplier assessments, increasing disclosure granularity, and expanding diversity policies.
SDG Alignment
SDGs Identified: Unilever Nigeria’s sustainability strategy aligns with multiple SDGs, notably: No Poverty (SDG 1), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Reduced Inequality (SDG 10), Quality Education (SDG 4), Clean Water and Sanitation (SDG 6), Responsible Consumption and Production (SDG 12), Good Health and Well-being (SDG 3), and Sustainable Cities and Communities (SDG 11).
Integration: SDGs are embedded in major initiatives such as Shakti (women’s empowerment), FUCAP (youth skills/employment), plastics reduction, water management, and oral health education.
Geography: Impact is focused on Nigeria, with plans aligning to global Unilever Group standards for all local operations and expansion via collaborations (e.g., UNICEF partnership for youth employability).
ESG Management
Governance: Board-level oversight via Sustainability Committee, with direct involvement from the CEO and leadership team. Steering and working committees ensure operational accountability.
Frameworks: ESG reporting guided by GRI, SASB, IFRS S1 and S2, Nigerian Stock Exchange Guidelines, and SEC Sustainable Financial Principles.
Policies: Responsible Sourcing Policy (RSP), rigorous internal controls and audits, whistleblowing hotline, periodic stakeholder engagement.
Initial Areas of Impact
Programmes/Projects:
- Shakti: 13,490 women (170 PWDs) empowered since inception.
- FUCAP: 296,934 youths trained in employability skills.
- Plastics: 13,000 tons collected with Wecyclers; >50% plastic sourced locally.
- Oral Health: Pepsodent Schools Program reached 2,103,307 pupils in 2024, 9 million+ since start.
- Community and disaster relief: Product donations to support local crises (Ibadan blast, Borno floods).
Metrics for Definition
- GHG Emissions: Reduction targets—net zero by 2039; total direct emissions in Agbara factory reduced from 9,693.79 tons CO₂ (2022) to 370.59 tons (2024).
- Energy: Total use in 2024—100,108.38 GJ; renewables prioritized.
- Plastics: Total packaging—217 tons in 2024; recycled plastic—79 tons; 20% of packaging now recyclable.
- Water: Usage dropped to 37,949 m³ in 2024 (from 87,520 in 2023).
- Waste: Zero landfill achieved; 100% waste recycled/reused.
- Diversity: 38.6% women in management; diversity policies in progress.
Areas of Focus
Future Priorities:
- Expand renewable energy use and energy-efficient production.
- Deepen supply chain transparency and sustainability audits.
- Advance youth employability and gender inclusion initiatives.
- Strengthening engagement with vulnerable communities and disaster response.
Materiality Concepts
Material Topics: Five major issues were identified, these are Livelihoods, Health and Nutrition, Plastics, Nature, and Climate. Materiality matrices are used to define priorities and rank impacts.
Alignment: Materiality assessment informs strategy, risk, stakeholder engagement, and reporting.
Sustainability Risk Management Concepts
Risk Governance: Risk oversight via Board, Sustainability, and Business Integrity Committees. Use of internal audits, risk assessments, and controls.
Key Risks Managed:
- Regulatory: Carbon tax, land use, EPR, product composition rules.
- Operational: Water scarcity, waste, extreme weather, supply chain disruptions.
- Reputation: Human rights, diversity, data privacy, business ethics.
Management Tools: Mitigation plans, contingency planning, periodic reviews, stakeholder feedback integration.
Sustainability Strategy Concepts and Management
Strategic Concepts:
Four core priorities—Climate, Plastics, Nature, Livelihoods—structuring all sustainability programmes and metrics.
Management:
- Dedicated committees for strategy rollout and monitoring.
- Annual ESG reporting, materiality assessments, cross-functional alignment.
- Continuous improvement through feedback, audits, and external assurance.
Future Revision Plans: Adoption and integration of new global standards (ISSB IFRS S1/S2); enhanced stakeholder review cycles.
Areas for Future Improvement
- Increase disclosure on supplier and local sourcing ESG impacts.
- Enhance segmentation of workforce diversity metrics.
- Expand Scope 3 emissions tracking and risk reporting.
- Broaden community engagement measurement and reporting.
- Update and validate external assurance practices for transparency.
