#CSIfocus: Customers do reward sustainable brands

Unilever CEO, Paul Polman, with former First Lady, Dr Graça Machel

Consumers expect more of brands and businesses now – and they reward those that deliver a wider social benefit in addition to the traditional product performance at an affordable price. In line with this, Unilever embarked on the Unilever Sustainable Living Plan (USLP) five years ago. The company’s purpose is simple but clear - to make sustainable living commonplace.

The USLP is Unilever’s blueprint for growing its business, whilst “decoupling its environmental footprint from growth and increasing its positive social impact”.

Meaningful sustainability

How the implementation of meaningful sustainability measures can positively benefit business and society was the subject of a high-level discussion recently at a Unilever Collective action Business Breakfast in South Africa with 200 business and government influencers.

The key point of discussion was achieving collective action to drive sustainability and deliver positive change to meet the targets set out in South Africa’s National Development Plan (NDP), as well as the United Nations’ Sustainable Development Goals (SDGs).

Unilever CEO, Paul Polman, told the audience at the gathering in June 2016, that, “It will take much more than one company, government and community to solve the issues that face us. We need collective action for a brighter and more sustainable future for all.

“Consumers expect more of brands and businesses now – and they reward those that deliver a wider social benefit in addition to the traditional product performance at an affordable price,” Polman said.

Polman added to the discussion: “Business can play a leadership role in disrupting markets in support of sustainable living – and they will be rewarded by consumers who are also seeking responsibility and meaning, as well as high quality products at the right price. There is no trade-off between business and sustainability; it is creating real value for Unilever.”

Consumer attitudes

Participants at the Unilever event also discussed shifting trends in consumer attitudes around sustainability, including new Unilever research challenging the commonly held perception that sustainability doesn’t sell. The research shows that:

• Sustainability is no longer a niche issue.
• 54% of consumers want to buy more sustainably. Many already are. And it tells us that more want to.
• Consumers want it all - high performing products, the right price, and with a purpose that they can connect with.

Professor John Simpson, director of the UCT Unilever Institute of Strategic Marketing, joined Polman on stage to debate how collective sustainable action can positively impact the South African economy, environment and, ultimately, improve people’s lives.

“Sustainability is now a strategic element of business that South African organisations should embed in their daily operations. There is more that local companies can do to emulate early adopters such as Unilever who have incorporated sustainability with growth to deliver its targets on people, profit and planet,” said Simpson.

Globally, Unilever has helped around 482 million people to improve their health and hygiene, including through handwashing, improving self-esteem and oral hygiene. The majority of its foods and beverage portfolio met, or are better than, benchmarks based on national nutritional recommendations – and 34% met highest nutritional standards. Unilever also enabled around 600,000 smallholder farmers and 1.8 million small-scale retailers to access training and support.

In its own operations, Unilever continues to make good progress – since 2008, the company has reduced CO₂ emissions from energy by 39% per tonne of production; water by 37% per tonne of production; and waste sent to disposal by 97% per tonne of production. The company aims to be carbon positive by 2030.

Polman concluded, “Unilever will continue to design products that are less carbon and water intensive, as well as educate and support suppliers and consumers to operate more sustainably. However, we will not meet our goals, nor will society fulfil its potential, unless we mobilise collective action to achieve wider transformation.”