LONDON — Unilever expects to reach net zero emissions from all its products by 2039, according to the company. The effort is part of a range of measures and commitments designed to improve the health of the planet. The company said it will also work with a new generation of farmers and smallholders to drive programs to protect and restore forests, soil and biodiversity; and it will work with governments and other organizations to improve access to water for communities in water-stressed areas.

Unilever said its brands will collectively invest €1 billion in a new dedicated Climate & Nature Fund. This will be used over the next ten years to take action with projects that will likely include landscape restoration, reforestation, carbon sequestration, wildlife protection and water preservation. The new initiatives will build on work already underway, such as Ben & Jerry’s initiative to reduce GHG emissions from dairy farms, and Seventh Generation advocating for clean energy for all, as well as Knorr helping farmers grow food more sustainably.

“While the world is dealing with the devastating effects of the COVID-19 pandemic, and grappling with serious issues of inequality, we can’t let ourselves forget that the climate crisis is still a threat to all of us,” Unilever chief executive officer Alan Jope said. “Climate change, nature degradation, biodiversity decline, water scarcity — all these issues are interconnected, and we must address them all simultaneously. In doing so, we must also recognize that the climate crisis is not only an environmental emergency; it also has a terrible impact on lives and livelihoods. We, therefore, have a responsibility to help tackle the crisis: as a business, and through direct action by our brands.”

Fighting the Climate Crisis

The company said its existing science-based targets are: to have no carbon emissions from its own operations, and to halve the GHG footprint of its products across the value chain, by 2030. In response to the scale and urgency of the climate crisis, the company said it is additionally committing to net zero emissions from all its products by 2039 – from the sourcing of the materials used, up to the point of sale of its products in the store.

“To achieve this goal 11 years ahead of the 2050 Paris Agreement deadline, we must work jointly with our partners across our value chain, to collectively drive lower levels of greenhouse gas emissions. We will, therefore, prioritize building partnerships with our suppliers who have set and committed to their own science-based targets,” said Jope. “We believe that transparency about carbon footprint will be an accelerator in the global race to zero emissions, and it is our ambition to communicate the carbon footprint of every product we sell. To do this, we will set up a system for our suppliers to declare, on each invoice, the carbon footprint of the goods and services provided; and we will create partnerships with other businesses and organizations to standardize data collection, sharing and communication.”

“The race to zero must be a collective effort, and business alone cannot drive the transition at the speed that is required. We call on all governments to set ambitious net-zero targets, as well as short term emissions reduction targets, supported with enabling policy frameworks such as carbon pricing,” Jope added.

Protecting and Regenerating Nature

In addition to continuing to drive sustainable sourcing and an end to deforestation, Unilever is setting out to help regenerate nature: increasing local biodiversity, restoring soil health and preserving water conservation and access. To do this, the company said it will work to empower a new generation of farmers and smallholders who are committed to protecting and regenerating their farm environment. Initiatives that Unilever will drive include securing legal land rights, access to finance and financial inclusion, and development of restorative practices. This integrated approach will improve the livelihoods of smallholder farmers and give them leverage to drive the regeneration of nature.

Unilever has been leading the industry on sustainable sourcing practices for over a decade, and the company said it is “proud that 89% of our forest-related commodities are certified as sustainably sourced to globally recognized standards. However, to end deforestation, we must challenge ourselves to even higher standards. This means that we need to have visibility on exact sourcing locations, and no longer rely on the mass balance system, which does not allow for accurate verification of deforestation-free when sourcing derivatives of its commodities.”

The company said it will achieve a deforestation-free supply chain by 2023. To do this, Unilever will increase traceability and transparency by using emerging digital technologies – such as satellite monitoring, geolocation tracking and blockchain – accelerating smallholder inclusion and changing its approach to derivates sourcing.

The company is also committed to working with the industry, NGOs and governments, to look beyond forests, peatlands and tropical rainforests, and to protect other important areas of high conservation value and high carbon stock which it said are under threat of conversion to arable land, with potentially devastating impact on the natural habitats.

Unilever said it plans on  introducing a pioneering Regenerative Agriculture Code for all its suppliers. The new code will build on Unilever’s existing Sustainable Agriculture Code and will include details on farming practices that will help rebuild critical resources. Unilever said it would make the Regenerative Agriculture Code available to any organization.

Unilever said it will step up direct efforts to preserve water. Already, 40% of the world’s population is affected by water scarcity, and more than 2.1 billion people consume unsafe drinking water. Unilever said it will implement water stewardship programs for local communities in 100 locations by 2030. The company said it will take the information gained from its Prabhat program in India, which tackles water quality and supply risks around its factories. This program takes a community approach to water management, and Unilever said this not only helps farmers across cropping seasons, but also addresses the need for adequate and easy access to water. The company said it will build a model for this water stewardship program, and partner with key suppliers for them to also run similar programs.

Unilever will also join the 2030 Water Resources Group, a multi-stakeholder platform hosted by the World Bank, to contribute to transformative change and building resilience in water management in key water-stressed markets, such as India, Brazil, South Africa, Vietnam and Indonesia.

To further protect water resources, the company also said it aims to make its product formulations biodegradable by 2030, to minimize their impact on water and the aquatic ecosystems. “Although some of the ingredients that we currently use have no viable biodegradable alternatives, we will work with partners to drive innovation and find solutions to help us reach our ambition,” said Jope.

“Our collective responsibility in tackling the climate crisis is to drive an absolute reduction of greenhouse gas emissions, not simply focus on offsetting – and we have the scale and determination to make it happen,” said Unilever chief supply chain officer Marc Engel. “But this is not enough. If we want to have a healthy planet long into the future, we must also look after nature: forests, soil biodiversity and water ecosystems. In most parts of the world, the economic and social inclusion of farmers and smallholders in sustainable agricultural production is the single most important driver of change for halting deforestation, restoring forests and helping regenerate nature. In the end, they are the stewards of the land. We must, therefore, empower and work with a new generation of farmers and smallholders in order to make a step change in regenerating nature.”

Jope added: “The planet is in crisis, and we must take decisive action to stop the damage, and to restore its health. Last year, we set out a plan to tackle perhaps the most visible environmental issue we have in the consumer goods industry: plastic packaging. We set ourselves new and stretching targets that include halving our use of virgin plastic and helping collect and process more plastic packaging than we sell. While it’s critical to address the impact that our products have at the end of their life, it’s just as important to continue to look at the impact they have on the planet at the start of their life – in the sourcing of materials – as well as in their manufacture and transport. We will reduce the impact that our products and our operations have on the environment, and we will do our part to bring the planet back to health.”