To ensure it meets its ambitious climate goals, Unilever is leading the way in product level transparency across its supply chains.
"We will be prioritising partnerships with suppliers that help us reduce our emissions, and we will be integrating climate related performance into our purchasing processes, not as an add-on or nice to have, but really as an integral part of our business strategy.”
About Unilever:
Unilever is one of the world’s leading suppliers of Beauty & Wellbeing, Personal Care, Home Care, Nutrition and Ice Cream products, with sales in over 190 countries and products used by 3.4 billion people every day.The company has set out a Growth Action Plan to unlock its full potential and business performance, focusing its sustainability efforts on four key priorities where it is best placed to drive impact: climate, nature, plastics and livelihoods.
Unilever decarbonization targets:
Unilever has a near-term science-based target to reduce absolute operational GHG emissions (Scope 1 and 2) by 100% by 2030 from a 2015 baseline. Unilever has also set near-term science-based targets to reduce absolute Scope 3 energy and industrial GHG emissions by 42% by 2030 from a 2021 baseline, and to reduce absolute Scope 3 forest, land, and agriculture (FLAG) GHG emissions by 30.3% by 2030 from a 2021 baseline. The company has an ambition to reach net zero by 2039 across its value chain.
Only when you actually start implementing PACT and sharing data will you and your suppliers be able to truly understand the scale of the challenge ahead and where to focus your joint decarbonisation efforts.
Why company joined PACT:
In 2021 Unilever started engaging key suppliers on climate action via its Supplier Climate Programme (aims to reach 300 by end of 2024). The company identified the need to improve accuracy and transparency regarding the emissions that correspond to the materials it buys, using a standardised and industry aligned approach. That is why Unilever joined PACT workstreams and is asking its suppliers to align with PACT framework methodology when calculating product carbon footprint (PCF) data.
Progress and achievement with PACT:
Key milestones: By May 2024 Unilever had successfully gathered over 250 Product Carbon Footprint (PCF) data points from key suppliers, calculated in alignment with the PACT methodology.
Impact of collaboration: This is enabling Unilever to increase the level of accuracy of its estimated Scope 3 emissions footprint, by switching from average global emission factors to suppliers’ specific ones. It is also allowing Unilever to gain transparency over the emissions of its ingredients and packaging materials, as well as gaining visibility on suppliers’ emissions reduction plans.
By tracking suppliers’ PCFs over time, Unilever will be able to monitor suppliers' progress in reducing their emissions for specific materials. Progressively, this will also allow Unilever to integrate suppliers' emissions information into its procurement strategy and make informed decisions on the sourcing of its ingredients.
Future for collaboration with PACT:
Interoperability: So far, Unilever has been receiving PCF data from suppliers via an in-house developed questionnaire (fully aligned with PACT methodology). The company has been developing its own Application Programme Interface (API) and encourages its suppliers to do so. Part of 2024 will be dedicated to testing out and scaling up the transfer of PCF data via PACT API solutions.
Accelerating PCF uptake across value chains: PACT has been instrumental in accelerating PCF data sharing across value chains, in turn helping to improve transparency.
Guiding insights for sustainability:
Just get started!
"Our recommendation to companies embarking on a similar journey is to START! Progress over perfection, as we all collectively progress in this very challenging journey. You will encounter complexities, inaccuracies and gaps along the way, but only when you actually start implementing PACT and sharing data will you and your suppliers be able to truly understand the scale of the challenge ahead and where to focus your joint decarbonisation efforts." (Giulia Saladino, Procurement Climate Specialist, Unilever)
Conclusion:
Through its Supplier Climate Programme and alignment with the PACT framework, Unilever has enhanced the accuracy and transparency of its upstream scope 3 emissions data, which over time will enable more informed procurement decisions. This proactive approach not only supports Unilever's sustainability goals but also fosters significant progress towards achieving its Net Zero by 2039 ambition.
