In a world where climate change-induced extreme weather events are disrupting supply chains and causing food scarcity, the role of sustainability in business has never been more critical. The need for a sustainable approach isn’t just a matter of corporate responsibility; it’s a strategic imperative that affects not only the planet but also the long-term viability of businesses. Unilever, a global leader in consumer goods, exemplifies this commitment to sustainability, working tirelessly to make sustainable living commonplace.
Defining Business Sustainability
Business sustainability goes beyond profit margins; it’s a holistic approach that seeks to conduct business without causing harm to people or the planet while safeguarding the company’s future. At its core, it encompasses efforts to reduce greenhouse gas emissions, protect nature, and implement social governance practices. Unilever has made it its mission to make sustainability an integral part of its business model, from the products it sells to their influence on wider society.
Unilever believes that true sustainability isn’t just about limiting negative impacts; it’s about creating positive change wherever possible. By actively protecting and regenerating nature, Unilever not only reduces emissions and fosters biodiversity but also supports local communities. For instance, they encourage smallholder farmers to adopt sustainable farming practices that benefit both people and the planet.
The Benefits of a Sustainable Business Model
- Leading the Charge: Companies that embrace sustainability are at the forefront of addressing climate change and carbon emissions. A report by Deloitte in 2023 indicated that 84% of business leaders acknowledge that global economic growth can align with climate change goals. Furthermore, 75% of organizations reported an increase in sustainability investments over the past year, signaling a growing commitment to sustainability within the industry. Early adopters of sustainable business models position themselves as industry leaders, demonstrating a proactive approach to tackling global challenges.
- Meeting Consumer Demand: Today’s consumers expect transparency, responsibility, and action from the brands and companies they support. Kantar’s 2023 report, “Who Cares, Who Does,” revealed that 22% of households actively make sustainable purchasing decisions. “Eco-active” consumers, who prioritize sustainability, contribute significantly to the fast-moving consumer goods industry, estimated at a staggering $456 billion (€426 billion). Meeting consumer demands for sustainability is not just ethical but also a savvy business move.
- Creating Operational Efficiency: Embracing sustainability often necessitates significant changes to manufacturing processes, supply chains, and other business aspects. These changes, such as transitioning to cleaner energy sources, conserving water, and reducing transportation, can lead to improved operational efficiency. Research by McKinsey and Co. has shown that implementing policies to enhance resource efficiency can positively impact operating profits by up to 60%. Unilever, for instance, has saved approximately €1.5 billion through energy and water efficiency measures since 2008.
- Creating Growth Through Purpose: Purpose-driven businesses are not only ethically sound but also enjoy substantial growth. According to Kantar, purpose-driven companies witnessed a remarkable growth rate of 175% between 2008 and 2020, in stark contrast to the 70% growth experienced by low-purpose brands. Unilever’s commitment to a sustainable business strategy, as outlined in the Unilever Compass, is designed to drive growth while aligning products with environmental and social benefits. This approach aims to make sustainable living accessible to everyone.
Collaborative Efforts for Lasting Change
Recognizing that environmental footprints extend beyond individual operations, Unilever actively collaborates with various stakeholders to protect and restore biodiversity and combat climate change. From practical initiatives on the ground to the Supplier Climate Programme, Unilever works with suppliers to advance climate goals. The company also engages with international forums, such as the World Economic Forum’s Alliance of CEO Climate Leaders, advocating for ambitious climate action across the private sector.
Moreover, Unilever invites project developers, co-funders, and innovators to join forces through Unilever’s Climate & Nature Fund. These collaborations are essential in accelerating the solutions needed to transition to sustainability, offering economic certainty on a global scale.
Business sustainability is not a mere corporate buzzword; it’s a pathway to a better future for our planet and our businesses. Unilever’s unwavering commitment to sustainability serves as a testament to the tangible benefits of this approach, including economic growth, consumer trust, operational efficiency, and purpose-driven success. As we navigate an increasingly interconnected world, sustainability remains the key to building a resilient, responsible, and prosperous future for all.