Unilever unveiled its updated Climate Transition Action Plan (CTAP), which delineates the multinational corporation’s approach towards achieving its climate goals. A significant commitment includes that of cutting 39% of its total targeted Scope 3 emissions by 2030.
This announcement builds on the company’s original CTAP launched in 2020, which set forth the ambition to attain net zero emissions across its value chain by 2039. Additionally, Unilever has set forth to completely neutralize Scope 1 and 2 emissions by 2030, having already achieved a 70% reduction in these areas as of 2023, surpassing its interim goals.
Since 2015, Unilever has successfully lowered operational emissions by 74% and reduced the emissions intensity of its products by 21% from a 2010 benchmark. Unilever CEO Hein Schumacher and Chair Ian Meakins highlighted the multiple benefits of transitioning to a lower-emission business model.
“As a company dependent on agricultural and energy-intensive chemical ingredients, we believe that transitioning to become a lower-emission business has many benefits,” they said in a statement. “It increases resilience, improves efficiency, and future-proofs our value chain against transition risks such as carbon prices, while sparking innovation and helping to attract the best talent.”
Unilever: Wider sustainability efforts
The updated CTAP introduces broader Scope 3 objectives for 2030, focusing on comprehensive reductions across various domains including purchased goods and services, transport, product use, and more, aiming for a 42% reduction in certain categories and a 30.3% decrease in forest, land, and agriculture (FLAG) GHG emissions.
“Climate action is a priority for Unilever, to support business growth and the communities we serve.”
Unilever has detailed a range of initiatives to meet these ambitious targets, such as its Supplier Climate Program, product reformulations to utilize lower GHG ingredients, investment in regenerative agriculture, and efforts towards a deforestation-free supply chain.
The plan also includes transitioning to renewable energy sources, incorporating recycled plastics into packaging, and enhancing transport logistics to favor electric and alternative fuel vehicles.
Following the overwhelming support for its initial climate plan in 2021, with a 99% approval rate from shareholders, Unilever plans to present this new CTAP for a shareholder vote at its forthcoming AGM in May. Chief Sustainability Officer Rebecca Marmot emphasized the importance of collaborative efforts and innovation in realizing their climate objectives.
“Climate action is a priority for Unilever, to support business growth and the communities we serve,” she said. “We’re focusing our efforts where we can have most impact and driving innovation — but we cannot do it alone.
“We’re partnering with others to scale solutions and using our voice to spur collective action from governments, regulators and industry, up and down our value chain. We want to focus our business and the world to get on track for net zero.”
This follows reports from Bloomberg of growing ESG backlash against the company. Unilever’s comprehensive Climate Transition Action Plan can be fully accessed on their website here.
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