Transforming large and small businesses to net zero

Organisations should be brave in their net zero transition plans, according to Thomas Lingard, Unilever’s global head of sustainability. Speaking during a Net Zero Business Transformation webinar organised by the UN Global Compact Network UK and 103 Ventures, he noted that Unilever can not see how it will reach all the goals set out in its recently-released Climate Transition Action plan 2024. However, he added, it was important to be bold and to work with others to scale up innovation and ensure policymakers support the systems transformations that are needed.

One of the biggest challenges facing the consumer goods company is its ambition to grow sales volumes, which creates a “negative headwind” in terms of emissions reduction. An increasingly important area for the company, Lingard said, is advocacy to ensure policy and standards makers create the right environment for transformation.

Unilever’s advocacy points include:

• raising the ambition of national climate strategies and plans in key markets to align with the 1.5deg C pathway;
• ensuring carbon is priced at levels necessary to deliver the Paris Agreement;
• scaling up renewable energy capacity and the rapid phase-out of fossil fuels, including subsidies;
• support for forest protection and nature restoration; and
• encouraging the evolution of the GHG Protocol Standards to incentivise emissions reduction actions in value chains.  

The company put together its transition plan by focusing on how its dependencies, notably raw materials and ingredients, contribute to climate change. It took a bottom up approach, identifying ten areas for emissions reduction, ranging from supplier climate programmes to ice cream cabinets. It set consistent short and long term goals, making it clear who is responsible in each area.

Unilever also used its Taskforce on Climate-related Financial Disclosures (TCFD) risk exposure statements to create its internal business case. 

Lingard likened the work of the sustainability team to air traffic controllers, ensuring everything is moving in the right direction. “But the work has to be done by the people in R&D, marketing, logistics, manufacturing and sourcing,” he said. Everyone has delivery targets. He said people within finance, supply chain, marketing and legal had proved powerful allies, understanding the risks faced if transition does not happen.

He also noted the value of bringing other skills into the sustainability and transition plan. For example, legal experts have been able to advise how to approach certain actions that need to be taken, and R&D and engineers are rising to the challenge. 

Speaking from an SME perspective, Kid-A, a telecomms consultancy and managed services business, showed what could be achieved. The company is B-corp certified and its carbon emission reduction plan has been verified by the Science-based Targets Initiative (SBTi). 

Under this the company has committed to reduce:

• scope 1 and 2 greenhouse gas emissions by 42% by 2030 (based on 2022 emissions), and to measure and reduce our scope 3 emissions; and

• reduce scope 1, 2 and 3 emissions by 90% by 2050 (based on 2022).

Andy Silcock and Adam Toms, co-founders of Kid-A, advised those in SMEs who are not sure how to get started, to just get “stuck in”. For example, they said, weigh waste, track mileage, speak to your energy supplier, understand what energy you are using, use an Excel spreadsheet, and speak to verified experts who don’t charge the Earth.

They added that regardless of business size, it is important to keep things simple, to communicate well, not worry about making mistakes, take the time to embed new behaviours, create discipline, accuracy and honesty, be transparent, and keep going regardless. Critically, they said it is important not to cut corners, but pursue “better, not perfect”.

More information on the Net Zero Business Transformation webinar series can be found here.

Unilever’s Climate Transition Plan

Kid-A’s website