Extreme weather caused by climate change is already lowering crop yields and increasing water scarcity. And it risks disrupting supply chains and raising the price of raw materials.
Without a healthy planet, you can’t have a healthy business. Making the shift to sustainability makes business sense, giving companies a chance to help address the root causes of climate change while simultaneously building their own resilience to its impacts and delivering competitive growth.
What is business sustainability?
Business sustainability is when a company conducts its business without harming people or planet, safeguarding its future business in the process.
Reducing greenhouse gas emissions, protecting nature and delivering social governance are all ways that businesses can make the shift towards sustainability.
Unilever’s purpose is to make sustainability commonplace, through our business model, the products we sell and the influence we have on wider society. We also believe that a truly sustainable business doesn’t just focus on limiting negative impacts: companies should also aim to create positive impacts where possible. By protecting and regenerating nature, for example, businesses are not only reducing emissions and bringing back biodiversity, they can also support local communities by encouraging smallholder farmers to use better farming practices that benefit people and planet.
What are the benefits of a sustainable business model?
Sustainable businesses are future-fit. Companies that embrace sustainability are showing leadership in tackling climate change and getting ahead of the curve of carbon taxes. They are working to meet consumer demands, while boosting productivity and potentially cutting costs.
Here are four ways a sustainable business model can equal economic growth.
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Leading the charge
Smart companies are recognising the opportunities presented to early adopters of business sustainability. A 2023 report by Deloitte (A pop-up window will open) 84% of business leaders agree that global economic growth can be achieved while meeting climate change goals, and 75% say their organization has increased investment in sustainability in the past year, with action within the industry increasing. This indicates that there is a high potential for growth.
Companies making the transition to sustainable business models have an opportunity to establish themselves as leaders in their field without risking being left behind.
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Respond to consumer demand
Customers today expect transparency, responsibility and action from the brands and companies they buy from. According to Kantar’s Who Cares, Who Does (A pop-up window will open) According to a 2023 report, 22% of households are actively making more sustainable purchasing decisions, and “eco-active” people contribute an estimated $456 billion ($426 billion) to the rapidly changing consumer goods industry. euro).
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Improving work efficiency
Becoming more sustainable usually demands that businesses significantly change their manufacturing processes, supply chains and other aspects of their business model. The actions undertaken, such as switching to cleaner and smarter energy, saving water and reducing journeys travelled, can also lead to greater efficiency.
Research by McKinsey and Co (A pop-up window will open) found that implementing new policies to address resource efficiency can positively impact a company's operating profits by up to 60% in some cases. Since 2008, Unilever has avoided around €1.5 billion in costs through energy and water efficiency measures.
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Generating growth through purpose
There’s clear evidence to suggest that being purposeful can help companies attain growth, while also serving as a future-minded sustainable business strategy. A study from Kantar (A pop-up window will open) found that purpose-driven businesses grew 175% between 2008 and 2020, while low-purpose brands grew only 70%.
The Unilever Compass is designed to support growth, align all our products with environmental and social benefits, and make sustainable living easy and commonplace for everyone.
Why we work together to make a difference
For many companies, including Unilever, the majority of their environmental footprint occurs outside of their own operations, so working alone cannot reduce their impact at scale. But through strategic partnerships, we can accelerate the changes needed to transition to sustainability and provide greater economic certainty for all of us.
Unilever works with a wide range of stakeholders across jurisdictions to help protect and restore biodiversity and tackle climate change. landscape projects Taking practical action on the ground for supplier climate programs helping suppliers They are contributing the most to our footprint in advancing the fight against climate change.
We also work with international forums such as the World Economic Forum's (WEF) CEO Climate Leaders Alliance, which advocates for ambitious action on climate change across the private sector, and we work with project developers, co-financiers and We are inviting innovators to partner with us.Accelerate your solutions through Unilever Climate & Nature Fund.
