Five ways Unilever’s taking focused, urgent and systemic climate action
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Climate change is already affecting our planet – and our business. Here are five ways we’re working to mitigate the risks and meet the challenges it presents to Unilever’s value chain and beyond.
At Unilever, we’re responding to climate change with comprehensive action across our value chain. Our aim? Faster progress towards our near-term climate targets and ultimately net zero emissions.
We’re continuing to transform our operations by addressing energy use in our factories. We’re engaging our suppliers to accelerate their own progress on decarbonisation and working with partners to reduce the climate impact of our products.
And we’re using our scale, reach and advocacy to push for systemic, collaborative change and to remove barriers to progress. Because while businesses like ours have a vital part to play, individual action isn’t going to be enough.
Here are five ways we’re taking action on climate change
We’re moving to renewable thermal energy in our operations
Unilever is shifting to renewable thermal energy in our factories and we are the first company in Indonesia to buy biomethane for industrial use.
This renewable fuel, created from palm oil waste, is now starting to replace the natural gas we’ve been using at our palm oil processing facility in North Sumatra – the largest greenhouse gas-emitting site in our global operations.
We expect biomethane to provide almost a quarter of the facility’s energy needs by 2030.
We’re supporting key suppliers to switch to renewable power
Earlier this year, Unilever brokered a deal that will help to increase renewable electricity use for some of our third-party manufacturers in India.
The power-purchase agreement means solar energy will be supplied to ten of our collaborative manufacturers, and Unilever’s own factories, at a fixed price for the next 20 years.
Not only is the move set to generate cost savings of up to 25%, it will also increase renewable energy capacity on the national grid, supporting India’s net zero transition.
We’re working with farmers and suppliers on regenerative agriculture
Drought can reduce crop yields, threaten farmers’ livelihoods and put food security at risk. We’re using regenerative agriculture to make our supply chains more resilient to climate change impacts and help lower emissions.
Working with farmers and suppliers, we’ve already implemented regenerative agriculture practices across over 130,000 hectares globally using measures such as cover crops and precision drip irrigation to improve soil health, use less water and sequester carbon.
Expert partners help to ensure the methods implemented suit specific local challenges, and Unilever is supporting farmers financially by contributing to investment costs.
We’re collaborating with partners to transform the chemicals industry
Reducing emissions from chemical ingredients is a major challenge facing our Home Care business – we need to shift away from fossil fuels to renewable and recycled feedstocks.
In India, Unilever is chairing a working group of a government-initiated coalition which aims to develop an industry roadmap and set a new standard for sustainability in the sector.
We’re calling for governments to support the provision of non-fossil-fuel-based chemical raw materials at a competitive price, enabling our business and others to move faster.
We’re pushing trade associations to speak up for climate action
Earlier this year, we shared our latest Climate Policy Engagement Review, in which we assessed how well 26 of our trade associations align with our positions on climate.
The report highlighted that 18 of these bodies were aligned, up from 13 out of 27 the previous year, but that others were still too supportive of fossil fuels.
We’re finding ways to encourage the remaining trade associations to increase their direct engagement on the issue so that we can share a united voice on climate policy priorities.
As leaders from government and business gather in New York City for the UN General Assembly and Climate Week NYC, Unilever is urging governments across the globe to set ambitious and credible country climate plans, known as Nationally Determined Contributions (NDCs), to enable business to more fully play its part in driving the net zero transition.
Read more here (PDF 11.37 MB) about how governments and business can align their climate strategies to drive faster emissions reduction.
“Unilever is determined to deliver on our climate targets, and our immediate priority is reducing emissions from our raw materials and ingredients,” explains Hannah Hislop, Unilever Global Head of Sustainability, Climate.
“We also need enabling policies that will remove barriers, catalyse systems change and help businesses like ours to bring solutions to scale as quickly as possible,” she adds.
Unilever is using biomethane made from palm oil waste to help lower emissions at our facility in Indonesia. Discover how we’re working to grow our business more sustainably and inspire positive change in the palm oil industry.
Unilever is supporting the smallholders who grow key ingredients for our products. Discover how we’re providing the training, tools and resources to help improve their incomes – and secure a sustainable supply chain for our business.
Regenerative agriculture can help restore soil health, conserve water and enhance biodiversity. It’s also a strategic imperative for our business. Learn how we’re working with farmers and suppliers to build a more resilient food supply chain.