Unilever reaches 2.5bn consumers every day and the company takes its responsibility for setting sustainability aspirations for the industry very seriously. Ambitious targets have been set. The Dove brand will be the biggest brand to be packaged in 100% recycled plastic. All of Unilever’s production sites will be carbon neutral by 2030, with 26 sites already meeting this standard. Sustainable packaging and cleaner ingredients, especially in Home Care, are consumer trends that Unilever is aiming to stay ahead of. No trade-offs in the pursuit of margins and growth. Management believes it can achieve both faster growth and higher margins. The CEO cited the Dove brand, which has grown on average 7% p.a. over the last 10 years and seen its margins expand 580bps. We suspect portfolio change may play a role, too. The US is still a work in progress, but there are some encouraging signs of a turnaround. E-commerce will be critical in this market over the next few years. China is growing sales at 8-9% organically and margins are expanding. Unilever will double its coverage in lower tier cities within 12 months; these new areas hold 50% of China’s population. E-commerce is driving nearly all the growth in this market, and Unilever is very well positioned in that channel. Investment view. There was little “new” news to come out of the CMD this year, but we did take comfort in the quality of the management team across the markets and categories. Growth is clearly the priority, and management is also preparing for the future by developing innovations that are based on sustainability as a principle – which it views as an unavoidable mega-trend. A pause in M&A is sensible, and would probably be welcomed by the market, especially if it is accompanied by increased buybacks. Add maintained.