Unilever’s Sustainability Agreements with Retail Giants

By Richa Naidu and Chandini Monnappa

LONDON (Reuters) – Unilever has agreed sustainability deals with its top 10 retail customers, including Walmart, to cut greenhouse gas emissions and minimize waste in its supply chain, according to the consumer giant’s CEO.

Unilever, known for brands like Dove, Knorr, and Ben & Jerry’s, has been at the forefront of sustainability since the 2015 Paris agreement on climate change. However, the company faced pressure from investors worried that its climate strategy was hindering profit growth.

CEO Hein Schumacher revised some of Unilever’s long-standing sustainability goals, receiving mixed reactions from investors and climate activists. “What I expect a lot from in the years to come is our collaboration on sustainability agreements with retail customers,” Schumacher stated at the Reuters IMPACT conference.

He mentioned Unilever’s sustainability collaboration agreement with Walmart, focusing on reducing greenhouse gas emissions. According to the World Resources Institute, Scope 3 emissions refer to those for which a company is indirectly responsible through its supply and distribution chain.

Walmart aims to avoid a ‘gigaton’ of emissions by 2030, having already reported a reduction of 574 million metric tons since launching the initiative in 2017. Unilever has also partnered with A.S. Watson to develop sustainable products like body wash and toothpaste.

Furthermore, Unilever is employing climate modeling to enhance its supply chain resilience, particularly in shifting conditions like drought, which has led to significant changes in their mustard seed and tomato supply chains.