A Sustainable Business Model - Business for Peace speech, Paul Polman

Summary

The speaker discusses Unilever's Sustainable Living Plan (USLP), a business model aimed at addressing global challenges such as inequality, climate change, and resource scarcity. By decoupling business growth from environmental impact, Unilever focuses on long-term solutions like sourcing sustainable raw materials and improving health, well-being, and livelihoods globally. The USLP is not just a corporate responsibility strategy but a core business philosophy driving innovation and brand growth. Collaboration with governments and organizations is emphasized to bring transformational change in areas like deforestation and sustainability.

Takeaways

• 🌍 Unilever acknowledges global challenges like climate change, water scarcity, and inequality, and recognizes their interconnectedness.
• 🔄 The Unilever Sustainable Living Plan (USLP) was introduced to decouple business growth from environmental impact and increase positive societal contributions.
• 📅 Unilever shifted to long-term thinking by abandoning quarterly profit reports and focusing on long-term goals.
• 🌱 Unilever has committed to sourcing 100% of its agricultural raw materials sustainably to reduce environmental impact.
• 💡 The USLP has helped Unilever reduce waste, save over 200 million euros, and drive product innovations like compressed deodorants and concentrated detergents.
• 🌐 The USLP emphasizes corporate responsibility throughout the entire value chain, from sourcing to consumer use, positively impacting millions of smallholder farmers.
• 📈 Brands like Dove, Domestos, and Lifebuoy are becoming movements for social change and growing strongly due to their alignment with the USLP.
• 🤝 Collaboration with governments, NGOs, and suppliers is crucial for Unilever’s larger goals, such as eliminating deforestation from their supply chain by 2020.
• 💼 The USLP has become more than just a business model—it's a guiding philosophy that drives sustainable and equitable growth for Unilever.
• 👥 Unilever's focus on sustainability and inclusivity energizes its employees and attracts new talent, reinforcing the company's long-term mission.

Q & A

What challenges does Unilever believe the world is currently facing?

Unilever identifies several global challenges such as inequality, rising populations, climate change, food security, water scarcity, and global instability. Many of these challenges are interconnected, like the water-food-energy nexus, which is sometimes referred to as the 'Perfect Storm.'

What is the Unilever Sustainable Living Plan (USLP)?

The Unilever Sustainable Living Plan (USLP) is a business strategy introduced by Unilever to address global challenges by decoupling business growth from environmental impact and increasing the company's positive role in society. It emphasizes sustainability, long-term planning, and responsible business practices across the entire value chain.

Why did Unilever abandon quarterly profit reporting and short-term profit guidance?

Unilever abandoned quarterly profit reporting and short-term profit guidance to focus on long-term planning and sustainability. This shift allowed the company to move away from short-term pressures and align its strategy with the goals of the USLP.

What are some specific goals of the USLP mentioned in the speech?

Some specific goals of the USLP include halving Unilever’s total environmental impact, sourcing 100% of agricultural raw materials from sustainable sources, helping more than a billion people improve their health and well-being, and promoting the rights and livelihoods of people who rely on Unilever's products, including smallholder farmers.

How does Unilever view the relationship between business growth and sustainability?

Unilever views sustainability not just as a responsibility but also as an opportunity for business growth. By focusing on sustainable practices, Unilever aims to deepen relationships with consumers and suppliers, protect the long-term interests of the company, and contribute positively to the planet.

What impact has the USLP had on Unilever's cost savings and resources?

The USLP has helped Unilever achieve significant cost savings and resource efficiency. For example, it saved over 200 million euros in waste reduction in a single year. The plan has also helped mitigate risks and ensure the sustainable supply of resources, with 55% of Unilever’s agricultural raw materials now sourced sustainably.

How has the USLP influenced Unilever’s innovations?

The USLP has driven innovations at Unilever, such as compressed deodorants, concentrated detergents, and dry shampoos. These innovations respond to both consumer desires and the need to reduce environmental impact, showing how sustainability can spur product development.

Which Unilever brands have become movements for social change under the USLP?

Several Unilever brands have embraced the USLP’s principles and become movements for social change, including Dove (promoting women's self-esteem), Knorr (supporting smallholder farmers), Domestos (addressing sanitation issues), Pureit (bringing safe drinking water), and Lifebuoy (promoting handwashing to reduce child mortality).

What is Unilever’s approach to partnerships and collaborations in driving sustainable change?

Unilever believes that collaboration is key to driving large-scale, sustainable change. The company works with governments, suppliers, and NGOs to tackle issues like deforestation, aiming to eliminate deforestation from the commodity supply chain by 2020.

How does Unilever’s sustainable business model impact its employees?

Unilever's focus on sustainability has energized its workforce, attracting employees who are motivated by the company's commitment to making a positive impact. The USLP has become a core philosophy of the business, influencing not only strategy but also employee engagement.