At Unilever, we’re focusing our efforts to tackle climate change on what will have most material impact on our business and where we have greatest influence in our value chain. We developed our Climate Transition Action Plan (CTAP) with this in mind, outlining our actions and planned investments to move towards our near-term emissions reduction targets.
As we don’t operate in a vacuum, our progress depends on having the right policy and market conditions. That’s why we’re working to drive systemic changes that will help us and businesses like us to go further, faster.
A new report from Unilever sets out how business and government can accelerate the global shift towards a net zero economy by aligning their climate strategies. Written by corporate sustainability advisory firm ERM, the review outlines practical ways in which corporate transition plans and Nationally Determined Contributions (NDCs) can catalyse one another, alongside case studies demonstrating examples of how Unilever is already putting this into practice.
The road to COP30: time for governments to strengthen climate commitments
Ahead of COP30, the UN climate summit being held in Belém, Brazil, in November, global leaders are expected to submit their updated NDCs, the roadmaps outlining each country’s climate targets to 2035 and their plans to meet them. The strength of these commitments – and crucially their delivery – will determine how fast the world can lower emissions and still limit global warming to 1.5°C, while adapting to climate change impacts.
Our report shows that, when backed by policy and market incentives, ambitious NDCs have the potential to deliver long-term economic benefits, such as new growth opportunities, energy security and job creation. They can also help de-risk the transition for business, create a level playing field and provide the stability required for companies to unlock investment and accelerate their own climate transition plans. In turn, by creating robust strategies that support NDCs, businesses can drive innovation, maintain competitive advantage and build long-term resilience.
Unilever’s report shows what happens when corporate strategies and national commitments begin to move in sync. Aligning corporate transition plans with the NDCs will reveal both the promise and the friction of the ambition loop. The task ahead is clear: bridge the gaps, build accountability, and transform alignment into acceleration.
Former UNFCCC Executive Secretary Christiana Figueres
Our call to business to support stronger NDCs
The systemic transformations called for by Unilever to help us make faster emissions cuts will affect entire sectors and industries in our value chain. That’s why we need other companies to join us in pushing for investible NDCs that will help close the gap between capital flows and transition needs.
Ways we are supporting greater climate ambition at HUL
Reducing emissions from energy, agriculture and chemicals are key priorities in our CTAP and Unilever is already working to decarbonise in these sectors. The following initiatives demonstrate how we are supporting NDC priorities at Hindustan Unilever Limited (HUL).
Accelerating the shift to net zero in India’s chemicals industry
We’re supporting the decarbonisation of India’s chemicals industry by working to shift from fossil-based to renewable and recycled feedstocks in our Home Care products. This is an important step for India to achieve net zero emissions by 2070. At Hindustan Unilever Limited, we’re chairing a working group established by the government of India during its G20 Presidency in 2023, aiming to create a roadmap for sustainable chemical production. As well as looking at the wider enablers and dependencies within the chemicals industry, we’ve worked with industry and academic partners on a white paper outlining key technologies and policy interventions needed to accelerate the transition.
Working with suppliers on Power Purchase Agreements (PPAs)
Policy incentives offered by India led to the world’s lowest solar tariffs and promoted significant private sector investment in renewables. We signed a pioneering PPA deal supplying solar power to 32 sites across 15 Indian states, including our own factories and those of ten collaborative manufacturers. The project is expected to deliver 25% cost savings over 20 years and avoid 28,000 tonnes of CO₂e emissions annually. Strong government support was crucial in making this happen, waiving all central transmission charges for early adopters for the duration of the contract.
Accelerating the Net Zero transition of SMEs in India
The Federation of Indian Chambers of Commerce & Industry (FICCI) and Hindustan Unilever have founded the ‘Centre for Sustainability Leadership’. The ambition of the Centre is to help accelerate India Inc.’s climate action in line with Government’s net-zero commitments embodied in the ‘Panchamrit’ framework. The Centre aims to institutionalise sustainability leadership across FICCI members focusing particularly on decarbonisation, green entrepreneurship, and nature-based solutions. Together we are aiming to accelerate the Net Zero transition of SMEs in India.
We are working with farmers and suppliers on regenerative agriculture
At HUL, we work closely with smallholder farmers and ensure that they receive training and adopt good agricultural practices, resulting in significantly higher yields and better returns. In 2024, we stepped up our actions to protect and regenerate natural ecosystems associated with our sourcing locations. To facilitate the adoption of regenerative agricultural practices by farmers, we carried out several workshops throughout the year.
We’re pushing trade associations to speak up for climate action
Earlier this year, Unilever 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.
Unilever is 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.
Read more about how we’re engaging with partners on climate policy
Unilever’s hopes for Climate Week NYC and beyond
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.