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How Unilever is improving livelihoods across its global value chain

Unilever’s sustainability targets play a critical role in future-proofing our business, ensuring focus and urgency in the areas where we can deliver the most impact. Discover how we’re taking action on our four priority sustainability focus areas: climate, nature, plastics and livelihoods.

We’re working to improve the livelihoods of the people who grow, make and sell our products – and who are important to our success.

Our actions to improve livelihoods fall into three main areas:

Together, these actions are helping to build our supply chain resilience, increase productivity and reach more consumers.

Reducing inequality through decent livelihoods

Reducing inequality through decent livelihoods

Our long-term ambition is for everyone in our value chain to have a decent livelihood. This includes earning a living wage that can cover the essentials of daily life. And having work that is secure, dignified and fair.

Not only does this support people’s standards of living and drive wider economic growth, it also makes our business more resilient.

While we’ve been working to create change in this area for many years, we’re now focusing on three parts of our value chain where we can have the biggest impact.

Supporting smallholder farmers to increase incomes and build resilience

Supporting smallholder farmers to increase incomes and build resilience

We’re helping the smallholder farmers who grow our key crops to increase their incomes.

We’re supporting them with capacity-building and regenerative agriculture programmes that lead to better crop yields and quality, while building their resilience.

And through enrolling farmers in certification schemes, we’re improving traceability and helping them to grow crops more sustainably.

A living wage for our suppliers

A living wage for our suppliers

Our ultimate aim is for all Unilever suppliers to pay a living wage.

To move towards this, we’re asking suppliers to sign our Living Wage Promise, committing to assessing the gap between what they pay and a living wage, and to taking steps to close it.

We’re working with suppliers that manufacture exclusively for Unilever to support progress towards living wages. Over time, we expect employees in these supplier manufacturing operations to earn compensation that meets or exceeds living wage levels.

And we’re driving collective action, working in coalition with others to create a shared understanding of living wage and momentum towards better practices.

Supporting small retailers in Unilever’s value chain

Supporting small retailers in Unilever’s value chain

We’re helping the network of millions of small businesses that sell our products to improve their business success, while they’re helping us reach consumers with our brands.

To unlock growth for small-scale retailers, we’re rolling out digital platforms that facilitate ordering and stock management.

And we’re helping them to increase profits and strengthen their businesses by supporting them to improve their commercial and digital skills.

Collective action to advance decent livelihoods on the ground and in policy

Collective action to advance decent livelihoods on the ground and in policy

There is a limit to what we can achieve on our own.

We’re working with partners on the ground to create real change to people’s lives and livelihoods through access to knowledge, skills and technology.

And through local and global coalitions, we’re pressing for private sector action and government policy shifts that support decent livelihoods and level the playing field for living wage.

How are we progressing against our livelihoods targets?

We continue to make progress towards our livelihoods targets. Find out more about our progress in 2025 below and in our Annual Report & Accounts (PDF 6.16 MB).

  • Target: Help 250,000 smallholder farmers in our supply chain access livelihoods programmes by 2026*

    • We supported 210,000 smallholder farmers to improve productivity and farming practices in 2025.
    • This was achieved through certification, income growth and regenerative agriculture programmes.

    *Progress towards this target is cumulative. The 2025 figure includes the Ice Cream business prior to the Unilever Ice Cream demerger.

  • Target: Suppliers representing 50% of our procurement spend to sign our Living Wage Promise by 2026[a]

    • By the end of 2025, suppliers representing 43% of our procurement spend had signed our Living Wage Promise.
    • We continue to equip suppliers with the tools, knowledge and resources needed to start measuring and addressing living wage gaps.
  • Target: Help 2.5 million SMEs in our retail value chain grow their business by 2026[a]

    • We supported 2.12 million SMEs in our retail value chain to grow their business through access to skills, finance and technology in 2025.
    • Progress was slower than planned, with fewer active retailers than in 2024. This largely reflected the transition in key markets from local applications to our global digitised distributive trade platform, as well as the impact of the demerger of our Ice Cream business on activity levels.

[a] Figures for 2025 exclude Ice Cream following the Unilever Ice Cream demerger.

Close up image of large pile of coconuts with brown husks, stacked together outdoors.

Helping smallholder farmers grow incomes and build resilience

We’re helping smallholder farmers grow their incomes through better farming practices and certification schemes. Because with the right support, smallholders can be at the forefront of global efforts to protect and regenerate nature.

We’re focusing on the farmers who grow our key crops, with an approach tailored to each crop and country’s context. Working through a range of local partners, we help farmers improve their incomes through programmes focused on income growth and regenerative agriculture.

A smiling woman carrying a basket of harvested palm fruit on her head in a sunlit palm plantation.

Improving incomes through targeted programmes

Our income growth programmes support people growing palm, coconut and tea by providing access to training, information and financial support. This helps farmers diversify their incomes, access credit and become more productive. We’re particularly focused on including more women in these programmes.

Female rice framer harvesting rice crop from a large green field.

Scaling regenerative practices

Our regenerative agriculture programmes help smallholders working with dairy, vegetables, tea, coconut, black soy, cereals and spices conserve water, look after the soil and use fewer chemicals. This boosts yields and builds farmers’ resilience, while also replenishing the land.

Our jasmine rice project in Thailand is resulting in lower costs and higher yields for farmers, as they replace expensive chemical fertilisers with more sustainable alternatives which also improve soil quality. This supports increased incomes and the overall long-term resilience of the farms, protecting future livelihoods.

A photograph of a group of people seated in a circle on a blue tarpaulin sheet surrounded by palm trees. A facilitator is conducting a training session.

Increasing certification and traceability

We’re helping the farmers who grow our products become certified and enjoy the benefits this brings. Schemes like RSPO, trustea, Rainforest Alliance and Fairtrade help farmers increase their incomes and support more sustainable farming practices. Certification also improves the traceability of our crops and helps us enhance our impact.

Certification puts farmers on a path toward improved farming practices by supporting them to improve their productivity and build skills, offering incentives for sustainable practices, and fostering community engagement.

A smiling woman standing in a palm plantation, wearing a bright pink headscarf and a red outfit with patterned sleeves. She’s giving a thumbs-up gesture, surrounded by vibrant greenery and palm trees.

Collaborating across industry to increase farmer incomes

We’re working across industry to overcome barriers to increasing farmer incomes. We’re involved in a variety of collaborations such as the Sustainable Trade Initiative (IDH) Business Action Committee to share knowledge and best practice towards this objective.

Fork lift truck driver moving a pallet of cardboard boxes labelled OMO in China

Moving towards a living wage

We’re committed to paying a fair wage to all direct employees, which we achieved across our own operations in 2020. This commitment has been independently recognised through accreditation by the Fair Wage Network in 2021 and again in 2024. To maintain this standard, we annually review employees’ pay and benefits against an independent living wage benchmark, taking corrective action where needed.

For a business like ours with respect for human rights at its core, paying a living wage is a priority. Not only does this improve people’s lives, it also enhances our supply chain resilience and increases workers’ productivity.

Person in glasses wearing white hard hat and blue overalls.

Supporting suppliers to adopt living wages

Our Responsible Partner Policy includes a future mandatory requirement for our suppliers to pay a living wage (PDF 4.45 MB) to their workers.

We’re working with suppliers to evaluate any living wage gaps and develop plans to close them. Nearly all factories that manufacture products exclusively for Unilever include living wage in employment contracts.

Two individuals in a shipping yard standing in front of blue and orange cargo containers. One person is wearing a white hard hat and a formal suit, and the other person is wearing a yellow hard hat, a safety vest and more casual clothing.

Closing living wage gaps

To move towards our longer-term ambition, we’re focusing on countries where the living wage gap is the biggest, where the social safety net for workers is weakest, and where we can make the most impact based on our presence and scale.

We’re asking key suppliers to sign our Living Wage Promise: committing to evaluating their wage gap and to taking steps towards paying a living wage. With support from the Sustainable Trade Initiative (IDH), we’re providing training, tools and other resources to help suppliers understand what a living wage is, why it’s so important and how to get started.

Find out more about our Living Wage Supplier Programme
Four individuals are engaged in a conversation and looking at printed maps in a field/plantation setting. The group includes people dressed in casual and outdoor work attire, one wearing a wide-brimmed hat and another in a shirt with a WWF logo.

Advocating for widespread adoption of living wage

For the widespread adoption of living wages, we need a true collective effort.

So we’re asking governments to review minimum wage policies to ensure they reflect living wages. We’re working with business peers and civil society to amplify the message that living wage is good for businesses, society and the overall economy. And we’re pushing investors to put living wage at the heart of their environmental, social and governance (ESG) criteria.

A light blue flag featuring the white logo of the International Labour Organization (ILO) against a bright blue sky.

Driving momentum on living wage

A smiling shopkeeper wearing an orange coat stands inside a small convenience store. Behind him, shelves are stocked with various products, including ‘OMO’ and ‘Sunlight’.

Strengthening small retailers

Through access to skills, finance and technology, we’re working to increase income opportunities and raise living standards across our network of millions of retailers around the world.

Supporting the extensive global trade network that sells our products strengthens our business. And by helping SMEs grow, we can create an impact beyond our value chain so that families and communities can benefit too.

A shopkeeper wearing a striped shirt and a red scarf around his neck is using a smartphone while standing in front of a colourful shop display. The shop is filled with a variety of products, including packets hanging on the wall and jars of goods on the counter.

Going digital to increase sales

Our digital tools allow retailers to browse products, prices and promotions, place orders, and see what is selling well. This creates a better experience for our customers and helps increase sales.

In India, for example, AI enabled features through our Shikhar app are making day to day operations easier and more efficient for small-scale retailers. Voice commands support less digitally confident users, while smart basket features can pre populate regular orders and suggest when to restock.

By the end of 2025, there were 2.12 million small stores using our digital platforms, primarily across South and South East Asia.

A vibrant outdoor market stall showcasing a variety of goods for sale. The stall is stocked with colourful products, neatly displayed on shelves and in baskets. In the foreground is a woman wearing a traditional conical hat and a striped shirt sitting next to a basket of goods.

Improving access to finance and skills

Helping retailers access financial services and improve their financial skills helps them grow their business and increase profits. And this builds resilience – both for their businesses and ours.

We have a range of programmes around the world working to expand financial and digital literacy, cashless payments, and access to credit and working capital. Our ongoing work with impact measurement experts 60 Decibels independently verifies the impact of our SME growth initiatives.

Two women interacting in a store setting. One is wearing a black top and smiling, and the other woman is dressed in a light teal shirt.

Supporting retailers to access finance

  • Our Shakti programme empowers 200,000 women entrepreneurs in remote, rural areas of Asia and Africa with access to finance and business training. This helps them sell more products, achieve financial independence and in turn raise their living standards.
  • Jaza Duka, a digital working capital initiative by Unilever in partnership with Mastercard and KCB Bank, supports over 20,000 small retailers in Kenya. More than half of the participating businesses are run by women, with retailers recording average sales growth of around 20% as a result of improved access to credit and digital payments.
  • Kabisig eSummit teaches skills such as stock control, financial management, sales and customer service to 200,000 micro-entrepreneurs in the Philippines, mostly women, to help them better manage their businesses and improve their incomes.

TRANSFORM: More than a decade of public-private partnership for impact

TRANSFORM is an impact accelerator supporting visionary enterprises across Asia and Africa. Over its lifetime, the partnership has supported more than 160 impact enterprise and research projects across 19 countries, reaching over 20 million people.

As a joint initiative led by Unilever, alongside the UK Government’s Foreign, Commonwealth and Development Office (FCDO) and EY, TRANSFORM brings together public-sector resources with private-sector capabilities. It helps entrepreneurs and researchers to test and scale innovative solutions which tackle a wide range of social and environmental issues, including:

  • Strengthening livelihoods: helping to improve incomes for farmers and retailers, and creating opportunities for young people to earn.
  • Driving environmental progress: supporting regenerative agriculture and safe plastic waste collection and recycling.

TRANSFORM creates opportunities for Unilever to explore new routes to market, pilot business models such as refill, and identify innovative suppliers.

Having delivered its intended outcomes, TRANSFORM will conclude at the end of 2026. It leaves behind a legacy of impact and insights to inform future collaborations. These learnings are captured in How to collaborate for impact, a playbook designed to help other organisations apply the public-private partnership model.

Our other sustainability priorities

A Unilever packaging expert wearing protective clothing and glasses in an industrial setting, inspecting a plastic bottle  in front of manufacturing or packaging machinery. The Unilever logo is visible on the person’s coat.

Plastics

We’ve been working hard to create a circular economy for plastic packaging for a number of years. We’ve learnt that transformation takes time. Given the size of this challenge, we’re using our innovation capabilities to find new, scalable solutions.

A yellow metal walkway runs through the centre of an array of solar panels on the roof of a Unilever building in India.

Climate

Climate action has long been a part of how we do business. But the world must move faster to avoid the worst effects of climate change. We've set more ambitious climate targets and identified clearer actions to respond to this challenge.

An aerial view of a green forest landscape with winding rivers.

Nature

The world – and our business – needs resilient natural and agricultural ecosystems to thrive. We’re committed to contributing to the protection and regeneration of nature, within and beyond our value chain.

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