Committing to sustainability with Unilever CEO Paul Polman

Summary

This transcript highlights Unilever's commitment to sustainability through its Unilever Sustainable Living Plan. The company aims to double its turnover while reducing environmental impact and increasing social responsibility. Unilever addresses global challenges like poverty, climate change, and food insecurity with long-term solutions, emphasizing sustainable sourcing and circular economies. Through innovation and transparency, Unilever has achieved significant results, such as reducing CO2 emissions by 70% and running zero-waste factories. The company’s purpose-driven approach has led to higher employee engagement, attracting top talent and building trust with stakeholders, creating a more inclusive and sustainable business model.

Takeaways

• 😀 Long-term structural solutions are essential for tackling complex global issues like poverty, climate change, and food insecurity, as they cannot be solved overnight.
• 😀 Businesses, especially in industries like food, must address these challenges or risk not being in business in the future.
• 😀 Unilever’s Sustainable Living Plan aims to double its turnover while reducing environmental impact and increasing social value.
• 😀 Achieving sustainability in agriculture requires significant time and effort to convert supply chains, as products like tea and palm oil cannot be sourced sustainably overnight.
• 😀 Waste reduction and circular economy principles are central to Unilever's approach, with initiatives like zero waste factories and a 70% reduction in CO2 emissions.
• 😀 Food waste represents a major issue, with 30-40% of food being wasted in the supply chain, presenting both an environmental challenge and an opportunity for cost reduction.
• 😀 Unilever focuses on improving livelihoods through sustainable agriculture, aiming to provide communities with better opportunities and ensure repeatable, generational success.
• 😀 Sustainability and inclusivity are integral to Unilever’s business model, helping create an inclusive world where wealth is more equitably distributed.
• 😀 Transparency and opening up their business model has led to stronger relationships with stakeholders, enhancing trust and collaboration in the value chain.
• 😀 Employee engagement has increased significantly due to Unilever's purpose-driven business model, with employees motivated by the company's social impact, resulting in lower turnover and high employee satisfaction.
• 😀 Unilever’s efforts are recognized globally, making it one of the most preferred employers and attracting millions of applicants annually, demonstrating the value of purpose-driven work.

Q & A

What are the key challenges the speaker identifies regarding global issues like poverty and climate change?

The speaker highlights the enormity and complexity of global issues such as poverty, climate change, and leaving people behind in development stages. These challenges are not simple to solve and require long-term, structural solutions, often needing decade-long plans to address issues like smallholder farming and deforestation.

Why does the speaker emphasize the importance of addressing these global challenges in business?

The speaker argues that businesses, such as those in the food industry, must tackle these issues because ignoring them could eventually threaten the viability of the business. A failure to address challenges like sustainability or resource usage could result in businesses no longer being competitive or sustainable in the long run.

What is the Unilever Sustainable Living Plan and what are its key goals?

The Unilever Sustainable Living Plan aims to double the company's turnover while reducing its environmental impact and increasing its social impact. One key target under this plan is to source agricultural products sustainably, which involves transforming supply chains and ensuring that resources like tea and palm oil are sustainably sourced.

What are some of the specific achievements Unilever has made as part of its sustainability efforts?

Unilever has achieved several sustainability milestones, including running its factories with zero waste and reducing its CO2 emissions by 70%. Additionally, the company is focusing on packaging reductions and discovering new ways to make its products more sustainable, including reducing food waste in the supply chain.

How significant is food waste in Unilever's sustainability model?

Food waste is a major issue in Unilever's sustainability efforts, with 30-40% of food being wasted in the supply chain. This waste represents not only a moral dilemma, as a billion people go hungry, but also a financial opportunity, as reducing waste could cut costs and improve efficiency across the value chain.

What is the concept of a 'circular economy' and how does Unilever approach it?

The circular economy concept involves rethinking how products are used, reused, and how waste can serve as an input for other industries, creating a closed-loop system. Unilever embraces this idea by focusing on sustainable agriculture, better livelihoods, and repeatable, long-term practices that can continue across generations.

What role does transparency play in Unilever's business model?

Transparency is central to Unilever’s business strategy. By opening up its operations and being more transparent, the company has built greater trust with stakeholders and partners in the value chain. This transparency also contributes to the company’s broader mission of inclusivity and sustainability.

How has Unilever's focus on sustainability affected its employee engagement?

Unilever’s focus on sustainability has significantly boosted employee motivation and engagement. The company reports a notable increase in employee engagement scores over the past few years, as workers are proud to contribute to meaningful, purpose-driven initiatives that make a real difference in the world.

How competitive is Unilever in terms of attracting talent?

Unilever is highly competitive in attracting talent, with 1.8 million people applying to work for the company. It enjoys low turnover rates and is ranked as one of the most sought-after employers, often topping LinkedIn's lists in various countries.

What is the overall impact of Unilever's sustainability efforts on its business performance?

Unilever’s sustainability initiatives have not only enhanced its social and environmental impact but also improved its business performance. The company has seen an increase in energy and motivation among employees, which contributes to its success. This purpose-driven model has helped position Unilever as a leader in both sustainability and business efficiency.