Jeff Seabright, chief sustainability officer at Unilever, explains how the company has integrated the SDGs into its strategy — and why the global financial system needs urgent reform.
James Murray:What was Unilever's initial response to the SDGs?
Jeff Seabright:The purpose of business is first and foremost to serve society, and Unilever has always embraced this responsibility. For over 100 years, our goal has been to improve the lives of the world's citizens one day and one person at a time. Our mission has not changed much since our founder William Lever focused on what he called "shared prosperity" during the 1880s. Today we are living out this commitment through the Unilever Sustainable Living Plan (USLP), which aims to grow our business whilst halving our environmental footprint and increasing our social impact.
This vision is closely aligned with the Sustainable Development Goals (SDGs), which provide us all with a roadmap on how to achieve long-term growth and development, in a sustainable way, by 2030. So, whilst our unique heritage still shapes the way we do business today, our scale and reach mean we're well placed to both contribute to and benefit from the SDGs, which we're addressing in a number of ways through the USLP. However, to drive this forward with greater speed, we are consistently setting ourselves new and ambitious targets: for example, to become carbon positive by 2030; and ensure all our plastic packaging is fully recyclable, reusable or compostable by 2025.
Murray:How does a company go about addressing such a large number of goals and targets? Do you have to prioritize or should you engage with all of them?
Seabright:The SDGs are a scorecard on how well the world is doing, but also as an enormous opportunity to address some of the world's biggest challenges. We are getting to the point wherein each of the opportunities identified (be it food security, education, climate change, sanitation, gender equality, etc.), the cost of not acting is becoming higher than the cost of action. At a time that we need jobs and growth, we have the plan already given to us. So, it's in the best interest of businesses to act.
For us, implementing the goals means applying an SDG lens to every aspect of strategy: appointing the right leaders; innovating sustainable solutions that improve people's lives; inspiring more sustainable choices; and working in partnerships with others to drive systemic, lasting change around the world.
No single goal is more important than another and they are all interconnected; that's the beauty of the goals. Every business can make a difference, irrespective of its size. It's up to each company to identify in which areas they can have the greatest impact and work with others — through SDG 17 on partnerships — to create a shift across the industry.
Murray:Do you agree with some of the criticism that they can be difficult for businesses to navigate and translate?
Seabright:Companies have a once-in-a-lifetime opportunity to embrace the SDGs as a driver of business growth. There are still many challenges to overcome, including the short-term focus of financial markets, the difficulty in giving social or environmental capital a true value and political systems too focused on the next election cycle instead of on the next generation. If they fail to get behind systems change and the kind of inclusive capitalism laid out by the SDGs, the costs and uncertainty of doing business will swell. On the other hand, if a critical mass of companies joins the movement for system change, it will create an unstoppable force.
Murray:How has Unilever taken practical steps in support of the SDGs?
Seabright:We are working across many of the SDGs through the USLP, which sets out three big goals: to help more than a billion people to improve their health and well-being; halve our environmental footprint; and enhance the livelihoods of millions across our supply chain.
The plan takes responsibility across the total value chain — from farm to fork and addresses external issues such as climate change, food security, deforestation and sanitation. It puts sustainability at the heart of our operations, supply chain, innovation and brands. It's a moral and business imperative. Through the USLP, we are cutting costs, reducing risk, driving growth and engraining a sense of purpose throughout the organization, which attracts talent.
The plan takes responsibility across the total value chain — from farm to fork and addresses external issues such as climate change, food security, deforestation and sanitation.
Transparency is also key to reestablish trust and our plan calls out 50 targets to be achieved and relies heavily on working in partnership with others. Increasingly driving more transformational changes especially around livelihoods, women, social compliance in the value chain, climate change, food security and sanitation, health and hygiene. In doing so, we are unlocking new markets and investing in brands with purpose and innovation. The interdependence and mutuality of the goals ensure that progress against one leads to progress against others.
Murray:How has the company built a business case for working on the SDGs? What are the benefits of having an SDG-informed sustainability strategy?
Seabright:The moral obligations of aligning to the SDGs is clear, but so too is the business case for the SDGs. No longer must moral and business square off; now business will do well by doing good. It is truly one of the most exciting business opportunities of our time.
The Business & Sustainable Development Commission, co-founded by Unilever, concluded that successful delivery of the SDGs will create market opportunities of at least $12 trillion a year and create 380 million jobs by 2030 in just four economic areas — food and agriculture, cities, energy, and health and wellbeing. Companies that align themselves with the SDG framework have the potential to grow two or three times faster than average GDP in the next 10 to 15 years.
But to realize these economic benefits, business needs to truly embed sustainability into business and right across the value chain, rather than existing alongside. And that requires a real shift in the way we do business.
Murray:Do you find any of the SDGs particularly exciting for the business?
Seabright:As a consumer goods company, the best way in which we can bring our purpose to life is through our brands and by leveraging our operating model. As a company of over 160,000 employees, with 2.5 billion consumers who use our products on any given day, we have an enormous opportunity and responsibility to help address the world's burning issues, as called out in the SDGs.
Brands that help solve problems are relevant and accepted. Not surprisingly, the stronger this purpose, the better the brands do. Our sustainable living brands are delivering more than 60 percent of Unilever's growth, and growing over 50 percent faster than the rest of the business. We are orienting our brands to serve the underserved, and when we do it well, we are rewarded with stronger business results. It requires a ruthless external focus and caring enormously about the consumers we serve. But above all, it requires us to simply put the interest of others ahead of our own.
Murray:And do you recognize any of the SDGs as particularly problematic?
Seabright:I would say that the challenge we face is more about the system in which we operate. Like all businesses, we are impacted by the increasingly short-term focus of financial markets and political systems. We need a reform of the financial system, with greater focus on serving long-term needs of society. Equally challenging is the need to change consumer habits at scale. Whilst people are increasingly asking for more responsible businesses, we still have a way to go to drive more sustainable behavior en masse. And finally, we need bolder, braver action and stronger willpower from leaders in a position to really make a difference.
Murray:Do you think the government and the business community are doing enough in support of the SDGs?
Seabright:We are going in right direction but of course, not going faster or further enough. If we harness willpower and creativity in the right way, and in partnership with others, there are unlimited opportunities. After all, no one organization working in isolation can hope to do move the needle to build a better world. That's why working in collaboration with others is so crucial — between businesses, customers, suppliers, governments, academia and NGOs — all key to driving the more sustainable form of capitalism that the SDGs demand. It requires true leaders who put the interest of others ahead of their own. Who knows, it's not about themselves. We have to find, invest in and empower those leaders, especially millennials and women, making them an integral part of this change agenda.
Murray:Do you think they can be met?
Seabright:Yes, I'm confident that they can be met. Consumers are demanding change around the world and we see an increasing number of businesses and governments stepping up to the plate with bold actions. Of course, as I've said, there are still challenges. For example, we need to overcome the common misconception that somehow action on climate and poverty are at odds with economic growth. As amajor report released by the Global Commission on the Economy and Climate this month indicated, bold climate action could deliver at least $26 trillion in economic benefits through to 2030, compared with business-as-usual. As businesses, we will need to give confidence to governments that economies can grow inclusively and sustainably and that policies which reward sustainable behavior are better for the bottom line.
FAQs
Unilever Sustainable Living Plan (USLP) was launched in 2010. USLP serves as the company's blueprint for sustainable growth in an uncertain world by helping to drive profitable growth for its brands, save costs, and fuel innovation.
How can SDGs be integrated into businesses? ›
7 Ways Companies Can Benefit from Integrating SDGs
- Pick the goals that matter the most to your organisation. ...
- Improve awareness of the goals. ...
- Prioritise employment opportunities. ...
- Examine supply chains. ...
- Boost transparency. ...
- Invest in climate mitigation. ...
- Focus on long-term goals.
Where will we act? he Unilever Sustainable Living Plan focuses on three broad areas – health and well-being, the environment and enhanced livelihoods. he lth nd well-being is the starting point because these are the benefits which many of our brands provide.
What is the corporate strategy of Unilever? ›
We will win with our brands, powered by superior products, innovation and purpose. Our brands will be built on advanced science and will grow by delivering functionally superior products, as well as taking action on social and environmental issues that our consumers care about.
What are the corporate goals of Unilever? ›
We want to do more good for our planet and our society – not just less harm. We want to act on the social and environmental issues facing the world and we want to enhance people's lives with our products. We've been pioneers, innovators and future-makers for over 120 years – we plan to continue doing that.
How will you integrate these SDGs into your organization and impact reporting strategy? ›
How to integrate the SDGs in your sustainability strategy
- Quick recap': the Sustainable Development Goals. ...
- Determine priority SDGs with the Sustenuto SDG prioritisation tool. ...
- Defining objectives. ...
- From strategy to action. ...
- Analyse the performance of your SDG actions: the SDG Action Manager. ...
- Conclusion.
The goals and targets are strongly connected to each other. For example, poverty (Goal 1) can lead to hunger and malnutrition (Goal 2), which may lead to health problems (Goal 3) that may prevent children from completing their education (Goal 4) or adults from getting a job (Goal 8).
What are the integrated SDGs? ›
The Integrated Sustainable Development Goals (iSDG) Model is a comprehensive simulation tool that can generate country-specific development scenarios to show the implications of policy on a country's progress towards the United Nations Sustainable Development Goals.
What was the sustainable livelihood plan of Unilever implemented across the world mainly to achieve? ›
The Unilever Sustainable Living Plan sets out hundreds of targets and commitments which fall under three key goals: to help more than a billion people improve their health and wellbeing, to halve the environmental impact of the making and use of our products and to enhance the livelihoods of thousands of people in our ...
What is triple bottom line of sustainability in Unilever? ›
Triple bottom line (TBL) emphasizes corporate social responsibility. It nudges organizations to consider social and environmental impacts along with the obsession for profits. TBL recommends focussing equally on the three Ps: people, profit, and the planet.
The Sustainable Development Goals (SDGs) aim to transform our world. They are a call to action to end poverty and inequality, protect the planet, and ensure that all people enjoy health, justice and prosperity.
How does Unilever give importance to strategic management? ›
Unilever uses culture as one of the strongest tools to achieve coordination and integration of different strategies, which include financial strategies, human resource strategies, acquisition and mergers when they happen and when they are necessary, product development and innovation strategies, and the cooperate ...
What are smart goals for Unilever? ›
The company has set itself three main goals to achieve by 2020: to help one billion people improve their health and wellbeing; to improve the livelihoods of hundreds of thousands of people in the supply chain; and to halve the environmental footprint of the group's products.
What are Unilever's goals and visions? ›
We want to do more good for our planet and our society – not just less harm. We want to act on the social and environmental issues facing the world and we want to enhance people's lives with our products. We've been pioneers, innovators and future-makers for over 120 years – we plan to continue doing that.
What are the 3 basic corporate strategies? ›
Corporate leaders typically pursue one of three corporate-level strategies for leading their companies: stability strategies, growth strategies, or retrenchment strategies.
What is corporate strategy Short answer? ›
A corporate strategy is a long-term plan that outlines clear goals for a company. While the objective of each goal may differ, the ultimate purpose of a corporate strategy is to improve the company. A company's corporate strategy may be to focus on sales, growth or leadership.
What are the 3 main categories of strategy in corporate level strategy? ›
Corporate level strategy can be subdivided into three types based on what you want to do with your business:
- Growth.
- Stability.
- Retrenchment.
Our future of work goals
Reskill or upskill our employees with future-fit skills by 2025. Pioneer new models to provide our employees with flexible employment options by 2030. Help equip 10 million young people with essential skills by 2030.
What are the goals of corporate strategy? ›
Corporate strategy at its core concerns itself with the entirety of a business, where decisions are made in regard to its overall growth and direction. Ultimately, corporate strategy strives to create value, develop a unique marketing advantage, and seize maximum market share.
What is Unilever corporate culture and values? ›
They help us put our values of integrity, respect, responsibility and pioneering into practice. They play a key role in setting out how we seek to ensure compliance with laws and regulations, protect our brands and reputation, and prevent harm to people or the environment.
The SDGs can help a company define its aspirational purpose in a way that is relevant and inspiring to stakeholders, allow purpose to become the foundation for its strategy, and ignite long-lasting positive change that may increase shareholder value over the long term.
Which sustainable development goal SDG encourages companies to integrate sustainability information into their reporting cycle? ›
target 12.6
Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle.
What are the benefits of the SDGs for companies? ›
What are the benefits of the SDGs for companies? The SDGs facilitate the alignment of corporate strategy with the needs of today's society. They highlight areas of innovation and can help to open up new markets. That is why the topic of opportunities is very relevant in the context of the 17 goals.
What are the three core dimensions of sustainability which are integrated in the SDGs? ›
They are integrated and indivisible and balance the three dimensions of sustainable development: the economic, social and environmental. The inter-linkages and integrated nature of the SDGs are of crucial importance in ensuring that the purpose of the new Agenda is realized.
What are the 5 critical components of the SDGs? ›
At a broad level, IMF engagement on the SDGs is aligned with the five SDG pillars of people, prosperity, planet, peace, and partnership.
How are the 17 SDGs interconnected? ›
The SDGs are deeply interconnected – a lack of progress on one goal hinders progress on others. In a world of increasing inequality, civil unrest and environmental stress, business will only thrive if the 2030 Agenda is realized.
How many SDGs are integrated? ›
The 17 SDGs are integrated—they recognize that action in one area will affect outcomes in others, and that development must balance social, economic and environmental sustainability.
Which SDG is the most important explain? ›
Globally, 'climate action', 'good health' and 'well-being and quality education' are considered particularly important (Theresa et al., 2020). In another survey, 'zero hunger', 'clean water and sanitation' and 'no poverty' were selected as the most important SDGs (Lampert and Papadongonas, 2016).
What are the three core elements of SDGs? ›
For sustainable development to be achieved, it is crucial to harmonize three core elements: economic growth, social inclusion and environmental protection. These elements are interconnected and all are crucial for the well-being of individuals and societies.
What is the impact of Unilever Sustainable Living Plan? ›
Halve the greenhouse gas (GHG) impact of our products across the lifecycle by 2030. our greenhouse gas impact per consumer use has decreased by around -10% since 2010. Our manufacturing: By 2020 CO2 emissions from energy from our factories will be at or below 2008 levels despite significantly higher volumes.
Our business simply will not prosper without a healthy planet and society. We've set out an ambitious sustainability agenda to tackle the issues that our consumers and stakeholders care deeply about – such as climate change, plastic pollution and inequality.
How can USLP strategy create a competitive advantage for Unilever? ›
The USLP makes us more competitive – it helps to build our brands, spurs innovation, strengthens our supply chain, lowers costs and risks, and is building trust. Sustainability is creating value for Unilever and society.
Does Unilever use triple bottom line? ›
Although the phrase was coined over 25 years ago, the triple bottom line approach to business — which is used by some of the world's biggest companies, including General Electric, Unilever and Procter & Gamble — has only recently been gaining traction across industries as consumers become more interested in supporting ...
Is Unilever a triple bottom line company? ›
Paul Polman, Unilever's CEO sees clear value in a triple bottom line approach to business. "In a volatile world of growing social inequality, rising population, development challenges and climate change, the need for businesses to adapt is clear, as are the benefits and opportunities," he says.
How are triple bottom line and sustainable business integrated? ›
The Triple Bottom Line approach to sustainability takes the view that the smaller impact your business has on the environment and the fewer natural resources you consume, the longer and more successful your business will be.
What are the six key areas of focus of the SDG goals? ›
Areas of Expertise
- Agriculture & Food Security.
- Economic Growth & Trade.
- Environment & Sustainability.
- Market Access.
- Supply Chain Consulting & Strategy.
SDG 3 aims to prevent needless suffering from preventable diseases and premature death by focusing on key targets that boost the health of a country's overall population. Regions with the highest burden of disease and neglected population groups and regions are priority areas.
What are the 17 SDGs Why is SDG important? ›
The 17 Sustainable Development Goals (SDGs), with their 169 targets, form the core of the 2030 Agenda. They balance the economic, social and ecological dimensions of sustainable development, and place the fight against poverty and sustainable development on the same agenda for the first time.
What is Unilever decision making strategy? ›
The Unilever response was to develop a unique approach known as Decision Making Under Uncertainty (DMUU). This is a disciplined, methodical and structured approach to decision-making, with probabilistic analysis at the heart of its logical reasoning.
What is the competitive strategy of Unilever? ›
Unilever's Generic Strategy (Porter's Model)
Unilever uses broad differentiation as its generic strategy for competitive advantage. The main focus of this generic strategy is its emphasis on features or characteristics that make the company's products stand out against competitors.
These include:
- Enhancing materiality to make it integral to the business.
- Developing robust climate change mitigation and adaptation strategies.
- Respecting planetary and social boundaries through context-based sustainability.
- Innovating with new sustainable business models.
Waste-to-Energy Recycling
This is a method of turning waste into energy and yet another one of the best sustainable development examples we'll see next year. These facilities use combustion to turn non-hazardous waste into steam energy and electricity.
What are examples of sustainable strategies? ›
Examples:
- Install low-flow faucets and water efficient toilets.
- Reduce landscape water use.
- Engage employees to be more conscientious.
- Install automatic light shut off.
- Use energy efficient light bulbs.
- Reduce scrap material during production.
At the center of the company is the Unilever Sustainable Living Plan (USLP). Introduced in 2010 by the then recently joined CEO Paul Polman, its stated aim was to double the size of the business whilst halving its environmental footprint by 2020.
What are the strategies for sustainable development explain any four strategies? ›
Strategies for Sustainable Development
It means more is produced per unit of input. Use of Environment-friendly Sources of Energy: promotion of wind energy, solar energy and other environment friendly sources of energy in place of fossil fuels. Promotion of Organic Farming: Adaption of chemical free agriculture.
What are the three strategies for sustainable development? ›
It fosters humans' well-being and quality of life, along with environmental quality. We argue that there are three different, but complementary, ways to achieve these objectives: eco-efficiency, de-commoditization (or de-commodification), and sufficiency.
What are the four strategies of sustainable development? ›
The four pillars of sustainability
- Human sustainability. Human sustainability aims to maintain and improve the human capital in society. ...
- Social sustainability. ...
- Economic sustainability. ...
- Environmental sustainability.
A sustainability or corporate responsibility strategy is a prioritised set of actions. It provides an agreed framework to focus investment and drive performance, as well as engage internal and external stakeholders. The starting point for any strategy needs to be why the company is in business.
What are the five strategies of sustainable development? ›
Here's what we came up with:
- Take it step by step.
- Strategically balance conflicting objectives.
- Work from the bottom up.
- Use stories to drive change.
- Next steps.
The SDGs are embedded in our growth strategy of “Connected Services” and point us to new business opportunities through ventures that work to resolve social issues. They represent societal expectations and needs and allow us to contribute to a globally relevant agenda.
Sustainability reduces costs and can affect operating profits by up to 60%, according to McKinsey & Company. Being sustainable also increases productivity as a Deloitte study shows that companies with an inclusive culture have a 27% higher profitability and a 22% greater productivity.
What are some strategies that companies use to incorporate sustainability in their business models? ›
Examples of Sustainable Business Practices
- Partner With Nonprofit Organizations. ...
- Educate Your Employees. ...
- Encourage Volunteerism. ...
- Rethink Your Supply Chain.
Halve the greenhouse gas (GHG) impact of our products across the lifecycle by 2030. our greenhouse gas impact per consumer use has decreased by around -10% since 2010. Our manufacturing: By 2020 CO2 emissions from energy from our factories will be at or below 2008 levels despite significantly higher volumes.
How is Unilever making sustainable living commonplace? ›
We aim to work with others to eliminate deforestation from the world's commodity supply chains whilst tackling the climate change threat. We are working with partners to make sustainable agricultural production mainstream, to help to end hunger, achieve food security and improve nutrition.
