{"id":22531,"date":"2017-11-14T18:44:17","date_gmt":"2017-11-14T23:44:17","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/unilevers-climate-proofing-strategy\/"},"modified":"2017-11-14T18:44:17","modified_gmt":"2017-11-14T23:44:17","slug":"unilevers-climate-proofing-strategy","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/unilevers-climate-proofing-strategy\/","title":{"rendered":"Unilever\u2019s climate-proofing strategy"},"content":{"rendered":"<p>Unilever, which has been affected by the rising problems of climate change has actively stepped forward to combat the challenges. Climate change leadership has put Unilever on the &#8216;A List&#8217;. Unilever\u2019s approach to combating climate change has been recognized for the fifth consecutive year by the latest leadership index published by CDP (formerly the Carbon Disclosure Project)<a href=\"#_edn1\" name=\"_ednref1\">[1]<\/a>.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/mck-final-pic.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-22477 size-large\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/mck-final-pic-991x1024.png\" alt=\"\" width=\"640\" height=\"661\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/mck-final-pic-991x1024.png 991w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/mck-final-pic-290x300.png 290w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/mck-final-pic-768x794.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/mck-final-pic-581x600.png 581w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/mck-final-pic.png 1536w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a>Source: Mckinsey &amp; Company<\/p>\n<p>&nbsp;<\/p>\n<p><strong><u>Unilever\u2019s supply chain and bottom-line have been significantly impacted by climate change<\/u><\/strong><\/p>\n<p>CEO of Unilever, Paul Polman believes that climate change affects everything from Unilever\u2019s employees to the price of products to the bottom line. Disasters linked to changing climate have cost Unilever more than $400 million a year<a href=\"#_edn2\" name=\"_ednref2\">[2]<\/a>. Some growing challenges include<\/p>\n<ul>\n<li>Increasing raw materials cost: Unilever sources raw materials from tropical regions and deforestation in Latin America, Africa, and Asia is increasing carbon emissions, intensifying erratic weather and hurting business<a href=\"#_edn3\" name=\"_ednref3\">[3]<\/a>.<\/li>\n<li>Changing supply and demand patterns: Climate change is affecting rainfall patterns and driving water scarcity in highly populated regions. When so many of Unilever\u2019s products require water to use \u2013 whether to make a cup of tea or take a shower \u2013 this presents another immediate risk of climate change<a href=\"#_edn4\" name=\"_ednref4\">[4]<\/a>. In future, more extreme and unpredictable weather patterns may affect not only consumer preferences but also the types of products they seek in response to resource and economic constraints. Consumers may seek products that are more energy and water efficient to adapt to decreasing water availability and energy shortages<a href=\"#_edn5\" name=\"_ednref5\">[5]<\/a>.<\/li>\n<li>Reduced productivity: Erratic rainfall, high temperatures, resulting pests, and diseases create a negative effect on the volume and quality of products produced<a href=\"#_edn6\" name=\"_ednref6\">[6]<\/a>.<\/li>\n<\/ul>\n<p>In summary, climate change affects the entire supply chain of Unilever, posing threat to growth and bottom line.<\/p>\n<p><em><u>Unilever\u2019s 2016 greenhouse gas (GHG) footprint across the supply chain \u2013 consumers contribute to the highest share of footprint<a href=\"#_edn7\" name=\"_ednref7\"><strong>[7]<\/strong><\/a><\/u><\/em><\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-22518 size-large\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni-1024x406.png\" alt=\"\" width=\"640\" height=\"254\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni-1024x406.png 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni-300x119.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni-768x304.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni-600x238.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni.png 1176w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a>Source: Unilever<\/p>\n<p>&nbsp;<\/p>\n<p><strong><u>Unilever is adopting a multi-pronged approach to tackling climate change across the supply chain<\/u><\/strong><\/p>\n<p><strong>Unilever\u2019s plans<\/strong><\/p>\n<ul>\n<li>Eliminate coal from the energy mix by 2020.<\/li>\n<li>Tackle climate change by halting deforestation, championing sustainable agriculture and food security. For instance, Unilever uses a software tool, developed with the University of Aberdeen, to collect data on whether farmers in its supply chain are using sustainable practices. Unilever offers them the tool for free, with the aim of procuring 100 percent of its agricultural content from sustainable sources by 2020<a href=\"#_edn8\" name=\"_ednref8\">[8]<\/a>.<\/li>\n<li>Become carbon positive by 2030. Source 100% of energy from renewable sources. Support the generation of more renewable energy, making surplus available to markets and communities<a href=\"#_edn9\" name=\"_ednref9\">[9]<\/a>.<\/li>\n<li>Make manufacturing and distribution eco-efficient. Manufacture as efficient as possible \u2013 using fewer resources and generating less waste. Eco-efficiency targets focus on water, waste, energy, and carbon-di-oxide\u00a0and cover 263 manufacturing sites in 71 countries<a href=\"#_edn10\" name=\"_ednref10\">[10]<\/a>.<\/li>\n<li>Design products which are\u00a0<a href=\"https:\/\/www.unilever.com\/sustainable-living\/reducing-environmental-impact\/greenhouse-gases\/innovating-to-reduce-greenhouse-gases\/\">less GHG intensive<\/a>. Some innovative products include climate-friendly ice cream freezers, compressed deodorant sprays, and concentrated laundry detergents which wash clothes at lower temperatures<a href=\"#_edn11\" name=\"_ednref11\">[11]<\/a>.<\/li>\n<li>Help consumers use less water, less energy, and recycle more. Advocate public policy to tackle climate change<a href=\"#_edn12\" name=\"_ednref12\">[12]<\/a>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-22519 size-large\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni-1024x765.jpg\" alt=\"\" width=\"640\" height=\"478\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni-1024x765.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni-300x224.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni-768x574.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni-600x448.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/uni.jpg 1135w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>Source: Unilever<\/p>\n<p><strong><u>Other initiatives that Unilever could adopt<\/u><\/strong><\/p>\n<p><strong>Introduce business targets and incentives based on tackling climate change<\/strong><\/p>\n<p>Unilever could consider motivating its business divisions by attaching incentives to the agenda of tackling climate change. Divisions adopting the most sustainable practices and reducing carbon footprint could be rewarded financially and non-financially. On the contrary, divisions contributing to increasing climatic challenges could be monitored and penalized.<\/p>\n<p><strong>Extend support to suppliers<\/strong><\/p>\n<p>Unilever\u2019s leadership and advocacy can be extended to instill discipline and commitment among its many suppliers.\u00a0 Unilever could make a greater effort in setting an example to the smaller suppliers, supporting them with the handholding required to embrace climate change initiatives and pushing them to commit to climate change goals through support such as financing, technology and business continuity. It could also choose to be stringent in working with only those suppliers who commit to the climate change agenda through sustainable practices.<\/p>\n<p><strong>Market climate change imperatives and educate end consumers <\/strong><\/p>\n<p>Unilever\u2019s advocacy has been strong, but it has not been consistent across all its brands. Unilever could promote greater awareness among its 2.5 billion customers to reduce actions causing climate change through thought-provoking commercials and product packaging. Unilever has 400+ brands and can make a signification difference in customer education as more of its brands embrace customer advocacy. Climate change campaigns on social media will also lead to behavioral change. Periodic communications will serve to strengthen advocacy while improving the reputation of Unilever.<\/p>\n<p>&nbsp;<\/p>\n<p><strong><u>Improving the future<\/u><\/strong><\/p>\n<ul>\n<li>In addition to following the aforesaid value protection measures to fight climate change, how can Unilever turn climate change into an opportunity for value generation?<\/li>\n<li>How can Unilever inspire conversations and actions among organizations and governments who are indifferent to fighting climate change?<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Word count: 782<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Endnotes<\/strong><\/p>\n<p><a href=\"#_ednref1\" name=\"_edn1\">[1]\u00a0<\/a>&#8220;Climate Change Leadership Puts Unilever On \u2018A List\u2019 For Fifth Year&#8221;. 2017.\u00a0<em>Unilever Global Company Website<\/em>. https:\/\/www.unilever.com\/news\/news-and-features\/Feature-article\/2016\/climate-change-leadership-puts-unilever-on-A-List-for-fifth-year.html<\/p>\n<p><a href=\"#_ednref2\" name=\"_edn2\">[2]<\/a> &#8220;CEO: Climate Change Costs Unilever \u20ac400 Million&#8221;. 2017.\u00a0NL Times. https:\/\/nltimes.nl\/2015\/05\/21\/ceo-climate-change-costs-unilever-eu400-million<\/p>\n<p><a href=\"#_ednref3\" name=\"_edn3\">[3]<\/a> Catanoso, Justin. 2017. &#8220;UNILEVER CEO: We Need To Do More To Fight Climate Change&#8221;.\u00a0Business Insider. <a href=\"http:\/\/www.businessinsider.com\/unilever-ceo-speaks-on-climate-change-2014-12\">http:\/\/www.businessinsider.com\/unilever-ceo-speaks-on-climate-change-2014-12<\/a><\/p>\n<p><a href=\"#_ednref1\" name=\"_edn1\"><\/a><\/p>\n<p><a href=\"#_ednref4\" name=\"_edn4\">[4]<\/a> &#8220;Climate Action Demands Business Action And Policy Change&#8221;. 2017.\u00a0Unilever Global Company Website.https:\/\/www.unilever.com\/news\/Join-in\/2016\/faster-and-further-climate-action-demands-business-action-and-policy-change.html<\/p>\n<p><a href=\"#_ednref5\" name=\"_edn5\">[5]<\/a> \u00a0\u201cAdapting to Climate Change: A Guide for the Consumer Products Industry.\u201d 2017.Bsr.Org. <a href=\"https:\/\/www.bsr.org\/reports\/BSR_Climate_Adaptation_Issue_Brief_CP.pdf\">https:\/\/www.bsr.org\/reports\/BSR_Climate_Adaptation_Issue_Brief_CP.pdf<\/a><\/p>\n<p><a href=\"#_ednref6\" name=\"_edn6\">[6]<\/a> &#8220;Identifying Climate Risks In The Supply Chain: New Insights, New BSR Initiative | Blog | BSR&#8221;. 2017.\u00a0Bsr.Org. <a href=\"https:\/\/www.bsr.org\/our-insights\/blog-view\/identifying-climate-risks-in-the-supply-chain-new-insights-new-bsr-initiati\">https:\/\/www.bsr.org\/our-insights\/blog-view\/identifying-climate-risks-in-the-supply-chain-new-insights-new-bsr-initiati<\/a><\/p>\n<p><a href=\"#_ednref7\" name=\"_edn7\">[7]<\/a> &#8220;Our Greenhouse Gas Footprint&#8221;. 2017.\u00a0Unilever Global Company Website. <a href=\"https:\/\/www.unilever.com\/sustainable-living\/reducing-environmental-impact\/greenhouse-gases\/Our-greenhouse-gas-footprint\/\">https:\/\/www.unilever.com\/sustainable-living\/reducing-environmental-impact\/greenhouse-gases\/Our-greenhouse-gas-footprint\/<\/a><\/p>\n<p><a href=\"#_ednref8\" name=\"_edn8\">[8]<\/a> &#8220;Starting At The Source: Sustainability In Supply Chains&#8221;. 2017.\u00a0Mckinsey &amp; Company. <a href=\"https:\/\/www.mckinsey.com\/business-functions\/sustainability-and-resource-productivity\/our-insights\/starting-at-the-source-sustainability-in-supply-chains\">https:\/\/www.mckinsey.com\/business-functions\/sustainability-and-resource-productivity\/our-insights\/starting-at-the-source-sustainability-in-supply-chains<\/a><\/p>\n<p><a href=\"#_ednref9\" name=\"_edn9\">[9]<\/a> &#8220;Our Carbon Positive Ambition&#8221;. 2017.\u00a0Unilever Global Company Website. <a href=\"https:\/\/www.unilever.com\/sustainable-living\/reducing-environmental-impact\/greenhouse-gases\/our-carbon-positive-ambition\/\">https:\/\/www.unilever.com\/sustainable-living\/reducing-environmental-impact\/greenhouse-gases\/our-carbon-positive-ambition\/<\/a><\/p>\n<p><a href=\"#_ednref10\" name=\"_edn10\">[10]<\/a> Unilever global company website. (2017). Eco-efficiency in manufacturing. [online] Available at: https:\/\/www.unilever.com\/sustainable-living\/reducing-environmental-impact\/eco-efficiency-in-manufacturing\/ [Accessed 9 Nov. 2017]<\/p>\n<p><a href=\"#_ednref11\" name=\"_edn11\">[11]<\/a> &#8220;Innovating To Reduce Greenhouse Gases&#8221;. 2017. <em>Unilever Global Company Website<\/em>. <a href=\"https:\/\/www.unilever.com\/sustainable-living\/reducing-environmental-impact\/greenhouse-gases\/innovating-to-reduce-greenhouse-gases\/\">https:\/\/www.unilever.com\/sustainable-living\/reducing-environmental-impact\/greenhouse-gases\/innovating-to-reduce-greenhouse-gases\/<\/a>.<\/p>\n<p><a href=\"#_ednref12\" name=\"_edn12\">[12]<\/a> &#8220;Reducing Environmental Impact&#8221;. 2017.\u00a0Unilever Global Company Website. <a href=\"https:\/\/www.unilever.com\/sustainable-living\/reducing-environmental-impact\/\">https:\/\/www.unilever.com\/sustainable-living\/reducing-environmental-impact\/<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unilever whose supply chain has been significantly impacted by climate change has commendable initiatives lined up to fight the climate change battle.<\/p>\n","protected":false},"author":9755,"featured_media":22548,"comment_status":"open","ping_status":"closed","template":"","categories":[1218,690,44,14],"class_list":["post-22531","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-climate-change","category-consumer-products","category-supply-chain-management","category-sustainability","hck-taxonomy-organization-unilever","hck-taxonomy-industry-consumer-products","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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