Unilever steps up its fight against climate change

Unilever will become the largest company in the world to offer shareholders a vote on its climate change policies, which will see it cut emissions to zero by 2039. 

The FTSE100 maker of Marmite, Persil and Hellmann’s mayonnaise said it will offer votes on its green policy every three years and the company will report on its progress against its targets annually. 

To get there Unilever, which also makes Ben & Jerry’s, Lynx and PG Tips, will use more renewable energy, make manufacturing processes more efficient and package more products in 100 per cent recycled plastic. 

It will eliminate deforestation in the supply of paper, palm oil, beef and soy, and buy carbon credits to offset any emissions that are left over. 

Unilever sells £47billion of products to 2.5billion customers around the world, meaning efforts to reduce emissions will have widespread impact. 

Chief executive Alan Jope  said: ‘We are determined to play a leadership role in accelerating the transition to a zero carbon economy. 

‘We have a wide ranging and ambitious set of climate commitments – but we know they are only as good as our delivery against them. 

‘That’s why we will be sharing more detail with our shareholders who are increasingly wanting to understand more about our strategy and plans. 

‘Fund managers are asking us serious questions about environmental and social matters. 

‘I think the penny has dropped that the cost to the business of inaction is much greater than the likely cost of action.’ 

Several companies have committed to net zero targets including Ikea and Sky, by 2030, Sainsbury’s by 2040 and BP, Barclays and Shell, by 2050. 

Yesterday Marks & Spencer announced it would launch a green plan, and create an ESG (ethical, social and governance) sub-committee attended by its chairman Archie Norman. 

Oil company Exxon Mobil yesterday announced emissions targets and said it would publish pollution data, related to customers’ use of its products for the first time – days after activist investors took it to task over its environmental record. 

There has been an explosion in the popularity in funds this year catering to investors who want to see their money invested ethically, for example in firms taking positive steps to cut their environmental footprint. 

Unilever says putting their green policies to a vote means the board will be held to account on progress and prevent targets getting lost. The votes will, however, be non-binding. 

Removing plastic from Dove soap bars, and using recycled plastic for shower gel bottles saves enough energy per year to charge 3.4billion smartphones.

Unilever is also promoting ranges of vegan products, including vegan Hellmann’s mayonnaise and Ben & Jerry’s ice cream, as dairy animals produce huge amounts of greenhouse gases and contribute to deforestation. Its most recent annual report said 65 per cent of its carbon footprint came from consumers using its products.