Creating value and impact through effective and strategic philanthropy

Giving and Profitability

2018

Susan Sy, Head of Philanthropy Advisory, South East Asia

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Traditional Nonprofit

Nonprofit Income

generating

Social benefit enterprises

Social purpose business

Socially responsible

business

Commercial enterprise

with strong CSR

Commercial enterprise

Purely philanthropic Purely commercial

Mission motive

Stakeholder accountability

Income invested in programs

Profit-making motive

Shareholder accountability

Profit redistributed to shareholders

Key driver:

create social value

Key driver:

create financial value

Impact Only Impact First Finance First

Sustainable Ecosystem Broadening of possibilities to generate positive change

2

Corporate Responsibility & The Value Chain

Utilization of natural resources

Transportation impacts, supply

chain issues

Process pollution

Packaging disposal

Education

Product safety

Disposal of obsolete products

Marketing practices

Financial reporting practices

Business and societal issues are linked

Source: FSG, UBS Philanthropy Services

governance practices

Transportation impacts

working conditions

job training

product recycling disposal

Value Chain

3

What is Unilever doing in support of the SDGs?

Source: Unilever website

In a nutshell…

4

Water use

Cutting water use with innovation in technology such as fast-rinse technology as well as the SmartFoam technology which time use to rinse hands. The Comfort One Rinse fabric conditioner cuts the volume of water needed for handwashing clothes by up to half per wash, saving c. 20 litres

Unilever Centre for Environmental Water Quality (UCEWQ) in South Africa have been analysing the potential risks and opportunity from using greywater (wastewater) in small scale agriculture as well as developing materials to help people implement grewater recycling methods at home

Improving nutrition

Unilever – Sustainable Living Taking action to drive positive change and sustainable growth through their business, brands and partners

5

Waste & packaging

Unilever committed in 2017 to have 100% of their plastic packaging to be designed to be fully reusable, recyclable or compostable by 2025

Increase the recycled plastic content in their packaging to at least 25% by 2025. This helps reduce the weight of packaging by 33% by 2020 and 50% reduction in the waste associated with the disposal of the products by 2020

Opportunities for women

by leveraging Unilever's influence as one of the world’s biggest advertisers – not just to change the way Unilever market their products, but also to advocate and partner for change across the industry

Examples: Brooke Bond #SpeakourHeart: tackling tensions globally; Dove: #MyBeautyMySay: real women, real stories

Axe:IsItOKForGuys

by building a diverse business and value chain, in which women are empowered and act as role models for change

by developing sustainable living brands that are progressing gender equality and women´s empowerment

Sustainable sourcing

commitment to sustainably sourcing 100% of their tea, including loose tea, by 2020

Work with partners from tea growers, suppliers and NGOs to local and national governments, the wider tea industry and beyond

Example: public-private partnership with Kenya Tea Development Agency (KTDA) and the Sustainable Trade Initiative (IDH) – this enabled 86,000 farmers, including 42,000 women to train at Farmer Field Schools for guidance on how to share best agricultural practices, increase yields, improve quality and improve their health and nutrition.

Unilever – Sustainable Living Taking action to drive positive change and sustainable growth through their business, brands and partners

6

Greenhouse gases

Carbon positive by 2030 (eliminate fossil fuels from operations and directly support the generation of more renewable energy than we consume

Source all electricity purchased from the grid, 100% of energy across all operations from renewable sources by 2030

Eliminate coal from the energy mix by 2020

Directly support the generation of more renewable energy than we consume, making the surplus available to the markets and communities where Unilever operate by 2030

Inclusive business

Unilever works directly with around 30,000 smallholder farmers, whilst through their supplies they are connected to around 700,000 more, mostly smallholder tea farmers in Africa

Unilever – Sustainable Living Taking action to drive positive change and sustainable growth through their business, brands and partners

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Sustainable Development Goals

Source: UBS

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The population is growing and requires more resources

For illustrative purposes only. Past performance is not a reliable indicator for future performance.

Source: Global Trends 2030: Alternative Worlds , National Intelligence Council, UNEP 2012

8.3 billion people

35% more food

40% more water

50% more energy

The world’s population is expected to reach over 8 billion by 2030, posing even more demand on water, energy and food supplies. But amidst the challenge and uncertainty, there is vast opportunity.

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The Changing Face of Philanthropy

Philanthropic Donors

Philanthropic Investors

Strategic Philanthropists

Philanthropreneurs

Imp

act

Mea

sure

men

t

Time

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Doing well by doing good

More than financial performance

Sources: UBS WM Chief Investment Office and United Nations.

For illustrative purposes only. Please always read in conjunction with the Risk Information and the Glossary at the end of the document.

Good for companies growth Good for the society

No poverty Zero hunger Good health Quality

education Clean water

and sanitation

Affordable and clean

energy

Industry, innovation

and infrastructure

Reduced inequalities

Sustainable cities and

communities

Responsible consumption

Climate action Life below

water Life on land

Peace and justice

Partnership for the goals

Decent work and economic

growth

Gender equality

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UBS Commitments At the WEF 2017, UBS committed to direct our private clients to sustainable investing and philanthropy

Impact Investing Fund

Private Market impact investment in

collaboration with Fund managers to

stressed dual bottom line

UBS Global Philanthropists

Community

UBS Global Philanthropists Community

share best practice and encourage

collaboration to drive outcome-driven

impact

Global Visionaries

UBS Global Visionaries align, promote

and support to achieve SDGs

Philanthropy Advisory and

Sustainable Investing expertise

UBS as the world leader in

Philanthropy and Sustainable

Investing

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Achieving greater impact

Partnerships illustrate the focus on outcome and impact

Directly investment to where you have the most expertise and leverage your network

Deploying similar models and advocate for greater use of philanthropic capital

Inspire social entrepreneurs to deliver measureable societal impact in a scalable way

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