Table of Contents
Unilever evaluated using sustainable value model.
Analyse Unilever’s case using the sustainable value approach
Discuss Unilever’s social, environmental, and economic value by using the 1+7 model
The idea that sustainability should be embedded
Unilever has its challenges.
This essay will focus on Unilever’s sustainability case. This section also considers the value creation levels to evaluate Unilever’s consumer goods producer.
Analysis of Unilever using sustainable value model and levels value creation Because Unilever was first to use the UN Guiding Principles Reporting Framework to create a human rights-based report, they announced their new goal of becoming ‘carbon negative’ in their production by 2030. Unilever is a well-known example of a sustainable product producer who creates value for both shareholders and stakeholder. The International Fund for Agricultural Development is forming a partnership for five years with Unilever. This partnership will draw on their expertise in sustainable food production and allow small-scale farmers to be able to access markets. The partnership will allow rural people to get a job but also help them escape poverty. Producers can lower their costs because 60% of agricultural raw material is renewable. Environmental stakeholders are proud of the efforts to end hunger, increase food security, and improve nutrition. Unilever has reduced the amount of plastic used in bottles by as much as 15%. Customers love them for being lighter and more durable than other plastics. Retailers also like them since they can save approximately 1, 000 tonnes per year. Environment stakeholders are pleased with the reduction in plastic resin. Unilever’s social and environmental value can be discussed using the 1+7 Value model. Unilever creates social and sustainability while also building brands and businesses. This topic will be addressed by the 1+7 Value Model.
Level 1: There are three areas that mitigating environmental hazards can have significant benefits for both shareholders and stakeholders. First, prepare for disasters in advance to decrease the chance of them happening. Remediation costs can be reduced by managing projects in advance. The third is to reduce product liability insurance. This means limiting the risk of environmental exposure for employees, contractors, customers, and contractors. Sustainability has a positive impact on business. Unilever, for example, had 60% of its agricultural raw materials sustainably sourced in 2015. This helped to minimize risk from the future supply chain due to climate change.
Process cost reduction (level 2). This refers to using less material or energy per unit production and reducing waste. Pollution prevention is more expensive than remediation. Since 2008, Unilever has saved more than 600 million dollars from energy, water and waste efficiencies in their global network of factories. Unilever has also made a contribution to reducing carbon dioxide emissions from manufacturing processes since 2008, attaining a 39% per-tonne reduction by 2015.
The company must differentiate at level 3 by offering environmentally preferable products. However, consumers are more inclined to buy green products and services. According to Lesley Thorne (Global Sustainability Manager) who spoke to Unilever about sustainability, both a Sustainable Living brand and a product must have a purpose. Dove’s purpose is to reach more than 15 million people, and its new compress aerosol deodorants can be used by half of those customers. This innovation reduces carbon footprint by approximately 25% per can.
Technology invocation, level 4, creates new markets for sustainable business. Unilever wins through brand recognition and innovation. Unilever Indonesia is also promoting its goods through direct marketing to customers and ensuring that the products are in good condition. Unilever Indonesia has also contributed to the growth of volume in Java.
Companies can enhance and protect their brand through level 5. This is because they have loyal customers, suppliers’ choice, and investors. Paul Polman is the CEO of Unilever. He believes that companies should take more responsibility for their business operations to benefit consumers, and not just the customer. Unilever, for instance, is more concerned with detergents. Because its products are washed at lower temperatures and conform to the Unilever Sustainable Living Plan, customers enjoy lower transport, packaging and value-chain benefits.
Level 6 companies try to influence the industry standard by promoting regulation over their competitor. Unilever Sustainable Living brand and the transformational change agenda show how they embed human right respect into their business operations. 2015 saw the publication of the UN Guiding Principles Framework’s first human rights reports. They trained 860 staff as human right ambassadors and 19,000 people on sexual harassment. In Brazil, women are learning entrepreneurship skills and improving their English skills through the Rin Career academy.
Level 7 – Radical innovation. This process innovation creates value for customers. Unilever will transform the world through its brands, innovation and sourcing. The fundamental changes they make to entire systems will be more important than incremental improvements. To combat climate change, they are focusing on three main areas. Second, sustainable agriculture. This will increase food production and the livelihoods for smallholder farmers. Unilever in particular has made a significant impact on women’s equality. To eradicate poverty and accelerate global development, it is crucial to empower women. Third, we must work for universal access and safe drinking water.
The ES Cloud allows Unilever to identify their core values and mission. Paul Polman is the CEO of Unilever. He stated that shareholders are becoming more skeptical of the idea of short-term maximization. So if a company focuses solely on shareholders, it might not last long. Unilever is focusing on making consumers’ lives better in a sustainable and fair way. Unilever believes that sustainability and growth are compatible. Shareholders will be rewarded if the Unilever Sustainable Living Plan succeeds, and it can also help consumers live a more sustainable lifestyle. Unilever reduces waste, energy consumption, and raw materials. This helps increase margins and create efficiency. Since 2008, they have seen their factory’s eco-efficiency improve their cost per unit. Unilever may not be perceived as green responsible for its sustainability efforts, but they can improve their competitive positioning. Unilever’s waste manufacturing projects has provided hundreds of job opportunities and cost savings in excess of 250m. Their growth was approximately half due to sustainable living brands, which grew at a faster rate than other businesses. Unilever has to reconsider product design to maximize social and environmental benefits. Sustainability opens up innovation opportunities. This opens up new markets for their brands and allows them to communicate with their customers in different ways to satisfy their changing needs. combat climate change. Unilever, in November 2015, announced they would be carbon neutral by 2030. By 2030, 100% of their energy will come from renewable sources. They will make every effort to reduce the greenhouse gas impact of sourcing, manufacturing, innovation and to eradicate deforestation in their supply chains.
Unilever has its challenges. Unilever also faces problems. Unilever still faces major challenges. The vast majority of targets are in operation in an unstable and uncertain world. However, Unilever can’t prove that they will achieve these targets without significant time investment. Also, they have to adapt and modify in order to develop a sustainable marketplace. The number of people leaving farming to pursue other careers is increasing, and farming is becoming less popular among young people. Unilever must now face the challenges of sourcing agricultural raw materials. Unilever Sustainable Living Plan provides solutions to climate and developmental challenges and adds value. However, they have to be open to working with governments and NGOs.
