Unilever's Sustainable Living Plan
Introduction
Unilever, a British-Dutch multinational company founded in 1929, is one of the world's largest
producers of consumer goods. With over 400 brands including Dove, Knorr, Lipton, and Ben &
Jerry's Unilever's products reach billions of consumers in more than 190 countries. Recognizing
the significant environmental impact of its operations and the broader consumer goods industry,
Unilever launched the Unilever Sustainable Living Plan (USLP) in 2010. This ambitious strategy
aims to decouple the company's growth from its environmental footprint while increasing its
positive social impact.
Environmental Challenges in the Consumer Goods Industry
Resource Depletion and Waste Generation
The consumer goods industry is notorious for its extensive use of natural resources and the
generation of substantial waste. The sourcing of raw materials like palm oil, paper, and soy can
lead to deforestation, loss of biodiversity, and soil degradation. Additionally, packaging waste,
especially single-use plastics, contributes significantly to land and ocean pollution. The Ellen
MacArthur Foundation estimates that by 2050, there could be more plastic than fish in the oceans
by weight if current trends continue.
Carbon Emissions and Supply Chain Complexity
Manufacturing processes, transportation, and distribution networks in the consumer goods sector
are energy-intensive, leading to high greenhouse gas emissions. The global nature of supply chains
adds layers of complexity, making it challenging to monitor and reduce carbon footprints
effectively. According to the World Economic Forum, supply chain emissions are, on average, 5.5
times greater than a company's direct emissions.
Unilever's Sustainable Initiatives
1. Unilever Sustainable Living Plan (USLP)
The USLP is the cornerstone of Unilever's sustainability efforts. It sets out over 50 measurable
targets to be achieved by 2020, focusing on three main goals:
Improving Health and Well-being: By providing products that enhance hygiene and nutrition,
Unilever aims to help more than a billion people take action to improve their health and well-
being.
Reducing Environmental Impact: The company seeks to halve the environmental footprint of its
products across the value chain, addressing issues like greenhouse gas emissions, water usage, and
waste.
Enhancing Livelihoods: Unilever is committed to improving the livelihoods of millions by
supporting fair business practices and promoting opportunities for women and smallholder
farmers.
2. Reducing Environmental Impact
Greenhouse Gas Reduction
Unilever has invested heavily in renewable energy and energy efficiency. By 2020, 100% of the
grid electricity used in its manufacturing operations came from renewable sources. The company
has also implemented innovative solutions like installing biomass boilers and utilizing waste
materials as energy sources. As a result, Unilever reduced CO₂ emissions from energy by 65%
compared to 2008 levels.
Waste and Packaging
Tackling the plastic waste crisis, Unilever has pledged to halve its use of virgin plastic by 2025
and collect and process more plastic packaging than it sells. Initiatives include developing
refillable packaging, using recycled plastics, and partnering with waste management companies to
improve recycling infrastructure. For example, the "Loop" initiative allows consumers to purchase
products in durable, reusable packaging that is collected, cleaned, and refilled.
Water Conservation
Unilever recognizes that water scarcity affects over 40% of the global population. The company
works on reducing water usage in its operations and innovates products that require less water.
Brands like Comfort have developed fabric conditioners that enable consumers to use shorter rinse
cycles, saving millions of liters of water annually.
3. Sustainable Sourcing
Unilever is one of the world's largest buyers of agricultural raw materials. The company aims to
source 100% of these materials sustainably. By 2020, over 62% of agricultural raw materials were
sustainably sourced. Unilever works closely with smallholder farmers to promote sustainable
agricultural practices, improve crop yields, and enhance livelihoods. For instance, the company
provides training on integrated pest management and soil conservation techniques.
4. Product Innovation
Circular Economy Principles
Embracing the circular economy, Unilever designs products with the entire lifecycle in mind. The
company develops concentrated detergents that require less packaging and energy during
production and transportation. Brands like Seventh Generation focus on biodegradable ingredients
and minimal packaging.
Consumer Behavior Change
Recognizing that a significant portion of the environmental impact occurs during product use,
Unilever runs campaigns to encourage sustainable consumer behaviors. The "Turn off the tap"
initiative under the Lifebuoy brand educates consumers about water conservation during
handwashing. Similarly, the Dove brand promotes self-esteem and body positivity, aligning social
impact with sustainability.
Impact and Achievements
Unilever's efforts have yielded substantial results:
• Environmental Impact: The company achieved zero non-hazardous waste to landfill
across all its factories. It also reduced waste associated with product disposal by 32% since
2010.
• Social Impact: Through health and hygiene programs, Unilever has reached over 1.3
billion people. The Lifebuoy handwashing campaign alone has educated millions of
children in Asia and Africa, helping to reduce preventable diseases.
• Economic Performance: Unilever's sustainable brands have consistently outperformed
others, accounting for 75% of the company's growth and growing 69% faster than the rest
of the business in 2018. This demonstrates that sustainability and profitability can go hand
in hand.
• Industry Influence: Unilever actively participates in global forums like the United
Nations Global Compact and the World Economic Forum, advocating for collaborative
efforts to address environmental challenges.
Challenges and Future Outlook
Supply Chain Complexity
Ensuring sustainability across a vast and diverse supply chain remains a significant challenge.
Issues like deforestation linked to palm oil production and labor rights violations require constant
vigilance. Unilever is investing in blockchain technology to enhance supply chain transparency
and working with certification bodies like the Roundtable on Sustainable Palm Oil (RSPO).
Balancing Cost and Accessibility
Implementing sustainable practices can increase operational costs. However, Unilever strives to
keep products affordable for consumers. The company invests in research and development to find
innovative, cost-effective solutions. For example, using plant-based ingredients can reduce costs
over time due to lower energy requirements.
Consumer Engagement
Changing consumer behavior is crucial for achieving sustainability goals. Unilever continues to
invest in marketing and educational campaigns to raise awareness. However, cultural differences
and varying levels of environmental consciousness across markets make this a complex task.
Regulatory Environment
Navigating different regulatory frameworks worldwide can be challenging. Unilever advocates for
consistent global policies that support sustainability, such as carbon pricing and extended producer
responsibility for packaging waste.
Conclusion
Unilever's Sustainable Living Plan exemplifies how a multinational corporation can integrate
environmental sustainability into its core business strategy. By addressing environmental
challenges through innovation, responsible sourcing, and consumer engagement, Unilever has
made significant strides toward reducing its environmental footprint. The company's experience
underscores that sustainability and profitability are not mutually exclusive but can be mutually
reinforcing. Unilever's journey offers valuable lessons for businesses across industries aiming to
contribute positively to the planet while achieving economic success.
Discussion Questions:
1. How can companies balance profitability with environmental sustainability, and what
strategies demonstrated by Unilever can be adopted by other industries?
2. What challenges might businesses face when implementing sustainable practices, and how
can they overcome these obstacles based on Unilever's experiences?
3. How has Unilever's Sustainable Living Plan influenced its innovation and product
development strategies, and what impact has this had on its competitiveness in the market?
4. In what ways does Unilever engage with stakeholders such as suppliers, consumers, and
governments to advance its sustainability goals, and what lessons can other companies
learn from its stakeholder collaboration?
