March 13, 2026

ByDeepak

Unilever Sustainability

Unilever, the Anglo-Dutch consumer goods company with over 400 brands sold in 190 countries, published its Annual Report and Accounts 2025 in March 2026, alongside updated sustainability performance data for fiscal year 2024. The company operates a four-pillar sustainability agenda covering climate, nature, plastics, and livelihoods, supported by 15 short and medium-term goals anchored to its Growth Action Plan 2030 (GAP 2030). Unilever’s Climate Transition Action Plan (CTAP), updated in 2024 and approved by over 97% of shareholders at the 2024 AGM, sets out SBTi-validated pathways to net zero by 2039.

Sustainability Strategy and Goals

Unilever’s formal strategy centers on absolute emissions reductions without the use of carbon offsets, a stance that differentiates it from many FMCG peers. The 2024 CTAP, validated by the Science Based Targets initiative, establishes separate near-term targets for energy and industrial Scope 3 emissions, forest, land and agriculture (FLAG) Scope 3 emissions, and operational Scope 1 and 2 emissions. Together, the two Scope 3 pathways represent a combined 39% absolute reduction by 2030 from a 2021 baseline.

Net Zero and Carbon Emissions

Unilever targets a 100% reduction in absolute Scope 1 and 2 emissions by 2030 versus a 2015 baseline, with net zero across the full value chain by 2039. Total greenhouse gas emissions across Scope 1, 2, and 3 reached 55.54 million tCO2e in 2024, a 3.12% increase from 2023. Scope 3 emissions dominate, accounting for 53.8 million tCO2e (97% of total), with purchased goods and services alone representing 77.68% of all Scope 3 emissions.

• Total GHG footprint 2024: 55.54 million tCO2e, up 3.12% from 2023​
• Scope 1 and 2 operational emissions in 2024: 1.74 million tCO2e, up 0.58% from 2023​
• Scope 3 emissions in 2024: 53.8 million tCO2e, of which purchased goods and services account for 41.79 million tCO2e​
• Scope 1 and 2 target: 100% reduction from 2015 baseline by 2030; already at 70% reduction by 2023​
• Net zero target: 2039, using absolute reductions with no carbon offsets​

Water Stewardship

Unilever operates 21 water stewardship programmes in water-stressed areas as of 2024, with plans to accelerate the portfolio in 2025. The company’s production efficiency data shows a 50% reduction in water abstraction per tonne of production from the 2008 baseline at Hindustan Unilever, with further improvements reported at manufacturing sites globally. Water stewardship is integrated into Unilever’s Nature pillar and tied to watershed-level interventions rather than factory-level metrics only.

• 21 active water stewardship programmes in water-stressed areas globally by end of 2024​
• 50% reduction in water usage per tonne of production vs 2008 baseline (Hindustan Unilever operations)​
• Plans to accelerate water stewardship programme expansion across water-stressed sourcing regions in 2025​

Regenerative Agriculture

Unilever targets implementing regenerative agriculture practices across 1 million hectares of agricultural land by 2030. By end of 2024, this covered 130,000 hectares globally, with its Foods business (Hellmann’s, Knorr) targeting 550,000 hectares by 2027. The 2024 CTAP documented 46 supplier collaboration projects covering 270,000 hectares transitioning to regenerative systems at publication, spanning soybean, rapeseed, rice, wheat, corn, tea, and dairy production.

• Regenerative agriculture coverage: 130,000 hectares by end of 2024, targeting 1 million hectares by 2030​
• 46 supplier collaboration projects covering 270,000 hectares at time of 2024 CTAP publication​
• Estimated cost of regenerative agriculture programme: EUR 140 million (USD 155 million) cumulatively by 2030​
• Priority crops include soybean and rapeseed for Hellmann’s, and rice and vegetables for Knorr​

Deforestation and Biodiversity

Unilever achieved 97% deforestation-free order volumes for its five highest-risk commodities, which are palm oil, paper and board, tea, soy, and cocoa, in 2024. This reflects sustained investment in supplier verification infrastructure and smallholder support programmes built over several years. The company also sourced 79% of its key agricultural crops from sustainably certified sources in 2024.

• Deforestation-free order volumes: 97% across palm oil, paper and board, tea, soy, and cocoa in 2024​
• Sustainably certified key crop sourcing: 79% in 2024​
• Smallholder farmer support programmes underpin the deforestation-free supply chain verification system​

Packaging and Circular Economy

Unilever reached 21% recycled plastic content in packaging in 2024, against a 25% target for 2025, placing it close but not yet at the finish line. The recyclable, reusable, or compostable rate for all plastic packaging reached 57% in 2024, with rigid plastic at 76% and flexible plastic at only 13%. Unilever reset its original 2025 packaging targets after publicly acknowledging they were unachievable, extending the 100% recyclable packaging deadline to 2030 for rigid plastic and 2035 for flexible packaging.

• Recycled plastic in packaging: 21% in 2024, vs 25% target for 2025​
• Recyclable, reusable, or compostable plastic packaging: 57% in 2024 (rigid 76%, flexible 13%)​
• Plastic packaging collected and processed vs amount sold: 93% in 2024, vs target to collect more than it sells by 2025​
• Virgin plastic reduction: 30% target by 2026 vs 2019 baseline, down from the original 50% by 2025 target​
• Post-consumer resin (PCR) supplier network: grew from 2 suppliers in 2016 to over 60 by 2024​

Human Rights and Responsible Sourcing

Unilever has paid a living wage throughout its own directly employed operations since 2020 and holds Fair Wage Network accreditation since 2021. For supply chain workers, a mandatory requirement was added to the Responsible Partner Policy requiring all suppliers to pay a living wage by 2030. The company targets 50% of its procurement spend covered by suppliers who signed the Living Wage Promise by 2026.

Unilever faced significant criticism in 2024 after it abandoned an earlier pledge to pay direct suppliers a living wage by 2030 in favour of a revised commitment covering only suppliers representing 50% of annual goods and services spend. It also dropped a separate EUR 2 billion annual spend target with diverse businesses and a 5% workforce disability commitment.​

• Living wage in own operations: achieved since 2020; Fair Wage Network accredited since 2021​
• Supply chain living wage target: 50% of procurement spend covered by Living Wage Promise signatories by 2026​
• Original living wage commitment to all direct suppliers by 2030 revised downward in 2024​
• Human rights due diligence expanded to palm oil supply chain through worker-led surveys and management maturity assessments​

Nutrition and Health

Unilever holds a portfolio of food and beverage brands that include Hellmann’s, Knorr, Magnum, and Ben and Jerry’s across its Nutrition and Ice Cream divisions. The company’s product reformulation work under the CTAP includes adjusting laundry detergents to activate at lower wash temperatures and reformulating ice cream to maintain frozen at higher freezer temperatures, reducing household energy use embedded in product consumption. Reducing high-emissions ingredients such as palm oil in food products is also part of the Scope 3 reduction roadmap.​

Community and Social Impact

Unilever’s livelihoods platform targets improving the economic security of smallholder farmers, small and medium enterprise (SME) retailers, and supply chain workers at scale. The company’s supplier regenerative agriculture investment programme, estimated at EUR 140 million by 2030, directly benefits farming communities through soil health, resilience, and farm income stability projects. Its worker-led survey programme in the palm oil supply chain uses technology to systematically surface and classify human rights impacts, with a supplier-led cascade model designed for geographical scale-up.

Governance and Transparency

Unilever’s CTAP was supported by more than 97% of shareholders at the 2024 AGM, the highest approval rate of any climate plan the company has put to a shareholder vote. The company reports against GRI, CDP, and integrates climate and sustainability disclosures into its Annual Report and Accounts rather than publishing a separate sustainability report. Planet Tracker’s independent review of the 2024 CTAP noted the plan as a significant step forward but flagged the absence of detailed financial disclosure linking investment levels to expected emissions outcomes.

Technology and Innovation

Unilever uses product reformulation as a primary technology lever for Scope 3 reduction. Reformulating laundry products for low-temperature activation removes in-use energy emissions at the consumer level, where a significant portion of downstream Scope 3 emissions originate. The company’s packaging innovation includes trials of over 50 reusable and refillable packaging models globally, with cardboard-boxed laundry sheets and capsules scaling as plastic-free alternatives. In supply chain visibility, Unilever deployed a prototype automated system during a 5-month pilot to identify and classify potential human rights impacts systematically rather than relying on manual audit processes.

Global Partnerships and Advocacy

Unilever is a founding signatory of the UN Global Compact and a member of the Fashion Pact equivalent for FMCG, the Consumer Goods Forum. The company collaborated with WBCSD on supply chain emissions frameworks and advocated publicly for a global plastics treaty and extended producer responsibility (EPR) schemes at the UN level. Unilever’s Global Deal partnership supports living wage advocacy, and its membership in the Fair Wage Network gives independent credibility to its operational wage compliance claims.

Progress vs. Target Tracker

https://www.unilever.com/sustainability/leading-the-change/goals-and-ambitions/
https://www.unilever.com/files/unilever-annual-report-and-accounts-2024.pdf
https://tracenable.com/company/unilever/ghg-emissions

Key Sustainability Innovations and Technologies

Unilever’s most material product-level innovation is reformulating consumer products to reduce in-use energy consumption. Cold-active laundry detergent formulations that work at lower wash temperatures address one of the largest Scope 3 downstream emission categories, which is consumer household energy use during product application. This approach directly reduces emissions without requiring infrastructure investment from the consumer, making it one of the most scalable levers available to an FMCG company with global brand reach.​

On packaging, Unilever’s cardboard-boxed laundry sheets and capsules are the most commercially scaled plastic substitution model in the company’s portfolio, having moved beyond pilot to market rollout. The company trialled over 50 reusable and refillable packaging models globally before concentrating investment on formats that reached commercial viability. Its post-consumer resin (PCR) supplier network expanded from 2 in 2016 to over 60 by 2024, demonstrating sustained demand signal for recycled plastic that influences supplier investment decisions.

In supply chain human rights governance, a 5-month technology pilot tested automated identification and classification of potential human rights impacts using structured data, replacing manual audit sampling with a continuous monitoring approach. This is still in prototype stage but signals Unilever’s intent to shift from periodic compliance audits to systemic real-time risk detection across its complex multi-tier supply chain.​

• Cold-active detergent reformulation: reduces consumer-phase energy use, addressing one of the largest downstream Scope 3 categories​
• Cardboard-boxed laundry formats: commercially scaled plastic-free alternative to liquid detergent bottles​
• PCR supplier network: grew from 2 to 60+ between 2016 and 2024, anchoring global demand for recycled plastic​
• Automated human rights impact detection: 5-month prototype pilot using systematic data classification across supply chain tiers​
• EUR 140 million regenerative agriculture investment committed through 46 supplier projects across seven crop categories​

Measurable Impacts

Unilever’s operational emissions trajectory shows genuine progress at the Scope 1 and 2 level. Market-based Scope 1 and 2 emissions fell from 1.1 million tCO2e in 2021 to approximately 711,000 tCO2e in 2024, a reduction in excess of 35% in three years. Against the 2015 baseline, the company claims approximately 70% reduction in operational emissions by 2023, driven by renewable energy procurement and factory energy efficiency programmes. Hindustan Unilever specifically reduced CO2 emissions per tonne of production by 99% from the 2008 baseline by fiscal year 2024-25.

Plastics performance showed mixed results. Recycled plastic use in packaging climbed from 18% in 2021 to 21% in 2022, 22% in 2023, and 21% in 2024, indicating a small reversal in 2024. The collection and processing rate improved significantly, reaching 93% in 2024 against the target of collecting more plastic packaging than it sells. On deforestation, 97% deforestation-free commodity volumes in 2024 represents the best performance the company has publicly reported on this indicator.

• Market-based Scope 1 and 2 emissions: from 1.1 million tCO2e (2021) to 711,000 tCO2e (2024), a 35%+ reduction​
• Total GHG footprint: 55.54 million tCO2e in 2024, up 3.12% from 53.86 million tCO2e in 2023​
• Recycled plastic in packaging: 21% in 2024, down from 22% in 2023​
• Plastic collected and processed: 93% of packaging sold by 2024​
• Deforestation-free commodity volumes: 97% in 2024 across five key commodities​
• Sustainably certified key crop sourcing: 79% in 2024​

Challenges and Areas for Improvement

Scope 3 emissions are the defining structural challenge. At 53.8 million tCO2e in 2024, they rose 3.12% versus 2023 and represent 97% of Unilever’s total emissions footprint. The 2030 target requires a combined 39% absolute reduction from the 2021 baseline, which means cutting value chain emissions by more than 20 million tCO2e in six years from a position where they are currently rising. Purchased goods and services alone account for 41.79 million tCO2e, meaning supplier decarbonization at scale is not optional but essential.

The regenerative agriculture programme is critically underpaced. Covering 130,000 hectares by end of 2024 against a 1 million hectare 2030 target means only 13% of the target has been achieved in the first three years of the programme. Reaching 550,000 hectares by 2027 in the Foods business alone, as stated by the company, requires more than quadrupling the current coverage in three years. This is an ambitious but structurally necessary escalation given that FLAG emissions are governed by a separate 30.3% reduction target.​

The living wage rollback in 2024 creates a lasting reputational and governance risk. Abandoning the pledge to pay all direct suppliers a living wage by 2030 in favour of a 50% procurement spend coverage goal by 2026 significantly narrows the scope of the commitment. Given that Unilever sources from millions of smallholder farmers and hundreds of thousands of factory workers in lower-income countries, the revised target leaves the majority of the worker base without a binding wage floor commitment.​

• Scope 3 at 53.8 million tCO2e in 2024, up 3.12% from 2023; requires a 20+ million tCO2e absolute reduction by 2030​
• Regenerative agriculture at 130,000 hectares vs 1 million hectare 2030 target; 13% achieved​
• Recycled plastic content fell from 22% in 2023 to 21% in 2024, moving away from the 25% target​
• Flexible plastic recyclability at only 13% in 2024, with a target of 100% by 2035​
• Living wage commitment revised down in 2024, dropping the all-direct-supplier pledge and three separate social commitments​
• No financial disclosure linking projected investment to expected Scope 3 outcomes​

Future Plans and Long-Term Goals

By 2026, Unilever targets 30% virgin plastic reduction from the 2019 baseline and 50% of procurement spend covered by Living Wage Promise signatories. By 2027, the Foods business targets 550,000 hectares under regenerative agriculture, and the company targets 40% virgin plastic reduction from 2019. The full suite of 2030 commitments includes 100% Scope 1 and 2 elimination, 39% combined Scope 3 reduction, 1 million hectares under regenerative agriculture, 97%+ deforestation-free commodities sustained, and 100% recyclable rigid plastic packaging.

The 2039 net zero goal positions Unilever as one of the few FMCG companies with a target before 2050, relying entirely on absolute reductions rather than offsets. Meeting the target requires solving the purchased goods Scope 3 problem, which at 41.79 million tCO2e in 2024 dwarfs every other emissions category in the portfolio. Unilever’s thesis is that supplier engagement through the Responsible Partner Policy, regenerative agriculture investment, and product reformulation together create the systemic shifts needed, but no financial roadmap linking investment levels to expected outcomes has been published.

Comparisons to Industry Competitors

Procter & Gamble (P&G) and Nestlé are Unilever’s most appropriate FMCG comparators by scale and scope. P&G targets a 50% absolute Scope 3 reduction by 2030 and 100% recyclable or reusable packaging by the same year, with over 75% of its packaging recyclable as of latest reporting. Nestlé targets a 50% absolute reduction across its net zero scope by 2030 from a 2018 baseline, reporting 79.55 million tCO2e in 2023. Unilever’s 39% combined Scope 3 reduction target is less ambitious in percentage terms than both P&G’s 50% and Nestlé’s 50% targets, though Unilever’s explicit no-offsets commitment distinguishes the quality of its reduction pathway.

All three companies face the same structural Scope 3 problem: purchased goods and agricultural raw materials dominate value chain emissions and respond slowly to corporate mandates. Unilever’s deforestation-free sourcing at 97% is an area of genuine leadership; neither P&G nor Nestlé has publicly disclosed comparable commodity-specific deforestation-free attainment rates at this level. On living wages, Unilever’s Fair Wage Network accreditation for own operations sets it apart from P&G, which has not sought equivalent third-party verification.

FMCG ESG Metrics (Latest Available Data)

What to Watch: 12 to 18 Month Indicators

Scope 3 Direction in Fiscal 2025 Annual Report

Unilever’s Scope 3 emissions rose 3.12% in 2024, driven by purchased goods and services at 41.79 million tCO2e. The Annual Report 2026, expected in early 2027, will confirm whether the CTAP’s supplier engagement programme and product reformulation pipeline are beginning to bend the curve. A second consecutive year of Scope 3 growth would make the 39% reduction by 2030 not just difficult but structurally implausible without major supply chain restructuring or an admission that the SBTi-validated target requires revision.​

Regenerative Agriculture Hectare Count at 2025 Year-End

Unilever’s Foods business claims a 550,000-hectare regenerative agriculture milestone for 2027, requiring more than four times the 130,000 hectares achieved by end of 2024. Any 2025 year-end update below 250,000 hectares would signal that the 2027 Foods milestone and the overall 1 million hectare 2030 target are structurally unachievable at the current rate of supplier programme scaling. This is one of the company’s highest-exposure commitments given the direct link to FLAG Scope 3 reductions.​

Living Wage Promise: 2026 Procurement Spend Coverage Verification

Unilever targets 50% of procurement spend covered by Living Wage Promise signatories by 2026. Given the 2024 rollback of the broader living wage commitment, this 2026 milestone is now the primary measurable indicator of whether the company’s social sustainability programme has real supply chain reach. A verified attainment rate published alongside independent audit evidence by mid-2026 would restore credibility eroded by the 2024 target revision.​

Unilever has two genuinely credible achievements in its 2024 sustainability record. The first is its own operational decarbonization: a 70%+ Scope 1 and 2 reduction from the 2015 baseline without offsets, supported by market-based renewable energy procurement, is among the strongest in the FMCG sector. The second is deforestation-free sourcing at 97% across five high-risk commodities, a supply chain transparency infrastructure that took years to build and which most competitors have not matched at equivalent specificity.

The company’s credibility problem sits at the intersection of Scope 3 growth and a pattern of target revision. Total value chain emissions rose in 2024, regenerative agriculture is at 13% of its 2030 target, recycled plastic content fell year-on-year, and the living wage supply chain commitment was materially narrowed. Each individual revision was accompanied by a rationale. Taken together, they create a pattern that independent analysts and ESG investors have begun to categorize as a structural gap between ambition and execution at the value chain level.

Three strategic takeaways for practitioners benchmarking or replicating Unilever’s approach:

1. No-offsets pledges are a differentiator only if the Scope 3 reduction infrastructure exists to back them up. Unilever’s commitment to absolute reductions without carbon credits is the right framework, but it raises the stakes significantly for every year Scope 3 emissions rise rather than fall. Practitioners adopting no-offsets pledges should build in a quantified supplier decarbonization roadmap with disclosed investment levels before making the public commitment, because the credibility gap between the pledge and the mechanism becomes visible quickly.
2. Product reformulation as a Scope 3 lever is underused by most FMCG companies. Unilever’s cold-wash detergent and higher-temperature ice cream work directly reduces Scope 3 Category 11 (use of sold products) emissions at the consumer level. This is one of the few areas where brand-level product development decisions can reduce emissions that sit outside the company’s direct control without requiring supplier engagement. Practitioners in consumer goods should systematically map which of their top-selling SKUs carry the largest in-use energy footprint and run reformulation programmes against that list.​
3. Scaling regenerative agriculture requires procurement linkage, not just project counts. Moving from 130,000 to 1 million hectares in six years requires that ingredient purchase agreements actively require and reward regenerative practices, not just that collaborative projects exist. Companies that embed regenerative agriculture specifications into supplier contracts and pay a verifiable price premium for compliant supply will scale faster than those running parallel voluntary programmes.​