Big Tick Award Logo 2010 - Environmental Leadership

Environmental Impact, All big ticks

Unilever – Environmental Leadership at the beginning of the value chain

Asda Environmental Leadership Award

Running a sustainable business isn’t just about doing the right thing. It makes us more effective, innovative, and can identify cost savings. It’s another way for us to work closely with our employees, suppliers and customers and of course to engage positively with our customers.’ – Dave Lewis, Unilever UK and Ireland Chairman

 

Dave LewisUnilever, UK and Ireland Chairman

As a multi-brand business, Unilever recognises that a sustainable approach is central to its reputation and competitive advantage. The company has therefore approached environmental issues in its direct operations but also crucially, has worked through its direct and extended supply chains to ensure that raw materials are both sustainably and ethically sourced. Unilever has addressed environmental issues throughout the entire value chain.

Unilever has made huge inroads in reducing the impact of direct operations. For example, in its manufacturing sites initiatives have been put in place to reduce water, waste and carbon emissions. For example the Marmite factory in Burton upon Trent now uses biogas energy from the waste by-product of the Marmite manufacturing process. Such initiatives stem from Unilever’s ‘Code of Business Principles’, which require the company to work towards the goal of ‘developing a sustainable business’ and a commitment to ‘working with others to promote environmental care, increase understanding of environmental issues, and disseminate good practice’. These principles are governed by employees through a central management system and internal strategy.

Similarly, Unilever engages its suppliers in its Business Partner Code and Sustainable Agriculture Code, working with partner organisations to engage suppliers in a positive way.

On customers, Unilever has partnered with Asda to set up ‘sustainability kitchens’ in-store, demonstrating to customers how small changes, such as washing at 30 degrees, can make a real difference. The company has also promoted Rainforest Alliance certification (on PG Tips) to its customers.

Impact

Environmental impacts

  • - in the UK Unilever has reduced its waste by 47.5%, energy consumption by 8.6% and water usage by 3.9%
  • 1 million road miles have been saved through collaboration with suppliers and distributors, for example vehicle sharing
  • Persil Small and Mighty has saved over 33 million litres of water and the equivalent of 262 million plastic shopping bags and 665 tonnes of Carbon Dioxide

Business benefits

  • Increase in sales: working with Wal-Mart Group to encourage customers to wash laundry at 30degrees whilst promoting new environmentally friendly products to do so led to a significant increase in sales in 2008
  • Build consumer preference: since promoting Rainforest Alliance certification on tea not only has the awareness of the Alliance gone up eight-fold but value sales of the tea have gone up by 5.6%
  • Business benefits for suppliers: one of the sustainable supply chain projects led to farmers seeing their yields increase by an average of between 5 – 15%

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