What is Unilever's Supplier Climate Programme?

In 2021, Unilever kicked off an ambitious project aimed at greening the supply chain - the Supplier Climate Programme. This groundbreaking initiative has garnered significant momentum, with a focus on the most impactful sectors of their supply chain.

Strategic climate actions

At the heart of Unilever's climate strategy lie about 300 suppliers.

These companies, chosen for their high contributions to Unilever's 'Scope 3' GHG emissions, represent a critical segment for targeted climate action - covering nearly half of the company's indirect emissions from raw materials, ingredients, and packaging.

From diverse industries like palm/oleochemicals to petrochemicals, these suppliers are integral to Unilever's products and sustainability goals.

The upgraded Climate Transition Action Plan (CTAP) highlights the Supplier Climate Programme as a cornerstone for achieving Unilever's stringent science-based targets.

By 2030, the plan aims to slash 'Scope 3' GHG emissions significantly. Given that a staggering 63% of Unilever’s total emissions come from its raw materials, ingredient, and packaging sectors, the programme's focus is clear: help suppliers understand, calculate, and reduce their environmental footprint.

Writing on LinkedIn after sharing this post, Willem Uijen, Chief Procurement Officer at Unilever, said: "My teams are grappling with a huge challenge.

"We've been shaping and scaling our Supplier Climate Programme. We're on track to engage around 300 key suppliers by the end of 2024, equipping them with guidance and tools they need to accelerate their climate journeys.

"And it's happening. We're getting more and more product carbon footprint data back from these suppliers, enabling us to jointly track supplier progress and identify our biggest decarbonisation opportunities across each of our procurement portfolios.

"This task isn't easy. Results don't come quick. And we're all learning from each other as we go. I want to thank our Procurement and Business Operations Sustainability teams for their hard work.

"By sharing our experiences so far, we hope to encourage more companies to take climate action along their supply chains."

Collaboration at the heart of sustainable supply chains

The programme has not just been about setting targets but also about fostering collaboration and shared learning. Companies like Weener Plastics and Ball Corporation, supplying packaging solutions to Unilever, have actively participated. Their engagement in the programme has prompted them to start measuring and sharing their Product Carbon Footprint (PCF) data, fuelling a chain reaction towards broader climate action in their respective supply chains.

Lenny Ellenkamp-van Olst, Director of Sustainability at Weener Plastics, says: "Sustainability was already high on our agenda when we joined the Programme, but we didn't have much experience of making footprint calculations ourselves, so being offered a pre-selected tool to use was helpful.

"Now we're training our teams using the PCF calculations we've made. It helps our developers design products in the best way and enables our operational teams to focus on the most relevant emission-reduction plans.

"We know some changes will require more time or larger investments because the biggest reductions can often only be achieved by redesigning the entire product and its processes. However, we've already made operational savings since the start of the Supplier Climate Programme, from reducing scrap rates to optimising our cooling systems and processes.

"We've also used the Programme as leverage to engage our own suppliers regarding missing emissions data. Large customers wanting to see progress on emissions helps to emphasise the importance of data availability."

Predrag Ozmo, Sustainability Director at Ball Corporation, adds: "Ball is happy to be collaborating with Unilever on decarbonisation efforts and jointly driving action to reduce the environmental impact of our packaging.

"Working together with other businesses is paramount in addressing this challenge. We must foster consensus, alignment and joint action across shared value chains.

"It's essential to explore and explain the business case for climate action. Understanding the costs of action versus inaction is imperative. Embracing an ambitious climate approach now will safeguard all our businesses in the long run."

What is next for the programme?

The ongoing efforts underline a future where partnerships and shared goals pave the way for significant GHG reductions. Stella Constantatos, Unilever's Supplier Climate Programme Lead, emphasises the growing momentum among suppliers to step up their climate actions, thereby aiding Unilever in fine-tuning its approach to tackling the climate impact within its supply chain.

"We're seeing more suppliers accelerating their climate actions," says Stella Constantatos, Unilever's Supplier Climate Programme Lead.

"By collaborating with us in the programme, our partners are not only better equipped to reduce emissions, they are also helping us build a more accurate picture of the climate impact in our supply chain. This allows us to focus on the best emission-reduction opportunities and paves the way for our future partnership."

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