LT5078 Sustainability, Business And Responsibility Case Study

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Unilever and its impacts Case study

Unilever is the largest consumer goods organization which known for its great brands. The firm is operated in around 190 countries with 4.4 million retails stores. The company has 149,000 workers and in the year of 2024 has generated approximately 60 billion euros revenue. Unilever offers diverse range of goods such as cleaning, food, beverages as well as personal care items (Unilever, 2025). This includes Dove, Lifebuoy, Lux, Knorr, Hellmann’s and Magnum, persil and many more well-known brands. The firm is implementing the practice such as direct dispatch where the items are distributed straight from the factory to the customers. The company has been a pioneer in sustainable palm oil sourcing as well as work with the suppliers to incorporate responsible practice. Unilever has incorporated the highly efficient supply chain which reduce lead times as well as enhance product accessibility.

Unilever’s supply chain management is designed to meet the diverse requirements of the customers. This include effective order fulfilment, responsive supply chain as well as specific forecasting. The firm is embracing the digital technologies to improve the effectiveness as well as visibility of their supply chain. This include use of AI powered analytics, sensors as well as block chain of transparency.

Sustainability reporting

The company’s sustainable living plan emphasizes on environment, health and wellbeing as well as enhances livelihoods of people (Li et al, 2022). Unilever has announced the saving of 1 million of CO2 since year 2008 and has the millstone to be carbon positive by year 2030. The firm has named themselves as an industry leader in the personal products with the S&P Dow Jones Sustainability Index (DJSI) in the environmental, social and governance (ESG) report.

Study samples and reference documents help students perfect assignment organization and skill development. Offering help writing assignment while preserving originality. The LT5078 Sustainability, Business And Responsibility Case Study illustrates Unilever's ESG strategies, supply chain sustainability, and climate action plans. For learning and reference only.

ESG risk score

Score

In 2023, Unilever’s ESG score was 63 which has been classified as a strong score by CRISIL (Sustainability Ratings and Rankings, 2024). With this score, the firm has established the strong external connections as well as promote internal collaboration to seize the opportunities for launching new innovations in the marketplace. The company’s approach to sustainability is about offering sustainable practices such as plastics, climate, nature and livelihoods. Unilever’s climate transition action plan (CTAP) emphasize on ten areas by 2030. This include spending in deforestation free supply chain as well as reformulate the products to use low emissions ingredients with no comprising performance (Aagaard, 2022).

Unilever is responsible in reducing the use of the virgin fossil carbon in their product by using recycled and renewable carbon sources. As a part of global organizations, Unilever aim in handling social as well as environmental concerns like health and hygiene and micro nutritional deficiency (Blinova et al, 2022). The firm’s supply chain sustainability efforts has become a benchmark in the sector for incorporating the environmental as well as social governance into the business. The organization has reduced greenhouse gas (GHG) emissions in their processes as well as lowered the emissions power of products in the value chain. However, barriers in supply chain like lack of raw materials, delays in transportation as well as labour shortage have caused the production.

ESG report analysis and evaluation

Unilever ESG report

Company’s materiality map

https://www.unilever.com/files/origin/cf17132cc64d96e9c05235892d16969313289a67.pdf/unilever-materiality-matrix-final.pdf

Three most material issues for the company:

1. Climate Change and Carbon Emissions
2. Sustainable Sourcing of Raw Materials
3. Human Rights and Fair Labour Practices

Unilever’s climate action plan has set the strategy as well as plan of reaching the 2039 net zero emissions (Le, 2022). The firm place the strong emphasis on the responsible palm oil sourcing. The firm ensure fair labour practices which protect the employees from exploitation, unfair wages as well as unsafe working conditions.

Scrutiny of Unilever’s ESG Progress

1. Climate Change and Carbon Emissions: the company’s climate transition action play outline the goal in accomplishing net zero emissions by year 2039. Sustainability has been significant for the organization. They have reduced their operational greenhouse gas (GHG) with transition to electricity as well as lowered the climate influence of their product offerings (Belas et al, 2021).
2. Sustainable Sourcing of Raw Materials: Unilever employs rainforest association certification for tea as well as roundtable on the sustainable palm oil (RSPO) which certification for the palm oil. This deal assist the organization to leverage its facility to offer product in line with their nature goal. These initiatives assist the farmers to enhance productivity, supply high quality sustainable palm oil as well as raise concerns (Luo et al, 2024). The firm collect data on soil conditions, farmers land, tree oil as well as challenges which assist them in tailor support for smallholders. The company helps farmers in obtaining the required legal documents for the certification.
3. Human Rights and Fair Labour Practices: the firm is strongly supporting workers in their direct supply chain by year 2030. The firm has developed the training on building the responsible recruitment system to assist the business partners (Meseguer-Sánchez et al, 2021). This training emphasize on prevention of forced labour relating to the employment and recruitment of migrant employees. Unilever’s dignity, respect as well as fair treatment code policy outline the responsibility in upholding the culture of fairness as well as respect.

Conclusion

In conclusion, the firm has made major commitments to environmental and social initiatives emphasizing on enhance health and wellbeing which enhance livelihood. This approach meets the needs of the social conscious customers and also handles employee concern regarding the workplace welfare.

Materiality: Key global sustainability challenges for consumer goods industry

Materiality Map for the Consumer Goods Industry

https://www.spglobal.com/_assets/documents/ratings/research/101568349.pdf

Three most material concerns for the industry

1. Climate Change and Carbon Emissions
2. Sustainable Sourcing and Supply Chain Management
3. Fair Labour Practices

1. Climate Change and Carbon Emission: Greenhouse gas emissions are driven by human activities in sectors such as consumer goods. The majority of this has increased because of the fossil fuel consumption as well as industrial emissions. Companies which emphasize on ESG challenges performed better financially by generating around 2.6 time more value for its shareholders (CDP Climate Response, 2023) . Organizations are under pressure to cut carbon emissions as nations aims to accomplish their climate responsibilities. This include investment in wind and solar energy as well as on-site solar projects. Organizations such as Unilever and Pepsi has offered granular emission data as well as detailed net-zero strategies.
2. Sustainable Sourcing and Supply Chain Management: Consumer good industry is emphasizing in operationalize sustainable as well as deforestation free palm oil. The palm oil sector brings trade, jobs and money to produce employs millions of smallholder farmers. This industry is committed for 100% of palm oil used within UK for sustainable sources which does not harm nature (Lewis., J, 2025). Supply chain disruptions have serious plummeting shareholder value as well as reduce shareholder trust.
3. Human Rights and Fair Labour Practices: Child labour is a persistent problem in the consumer goods supply chain. Minimum wages law does not ensure the protection to all employees. Nestle has distributed the plan to enhance its funding for cocoa supply chain sustainability to 1.3 £ by year 2030 (Nestle to triple cocoa supply chain sustainability, 2025) . The modern slavery act in UK handle these challenges of the modern-day slavery within global supply chain. Companies need to undertake their own risk assessment, global supply chain as well as review their own operations. Each organization needs to explain the conduct audits as well as recognize supplier noncompliance.

The impact of sustainability challenges on Unilever and their response

1. Climate Change and Carbon Emissions: the company’s raw materials as well as packaging account for more than 60 percent of their value chain emissions. The firm was selling 1700 polluted plastic sachets, fuel global plastic pollution crisis as well as dump amount of waste on the nations. Shifting consumer behaviour for the sustainability has remained the challenge which influence the direct control (Sheehy and Farneti, 2021). However, the firm took various approach to handle the issues of incorporation of implementing sustainable operations. The firm also promote sustainable lifestyle by increasing customer awareness with promotional campaigns, advertising as well as educational initiatives.
2. Sustainable Sourcing and Supply Chain Management: the pressure from the Greenpeace as well as other NGOs has led to major changes in the organization’s approach to palm oil sourcing (Huang et al, 2022). The firm has issued the response letter to the Greenpeace which has outlined the views on the key challenges raised such as NDPE compliance. Multiple stakeholders as well as verification approach for the industry reform. The letter included with the source links as well as actions take concerning every supplier on the list.
3. Human Rights and Fair Labour Practices: Unilever has been criticized for abuse in palm oil supply chain linked with human rights abuses. This comprise forced labour as well as child labour, exploitative working practices as well as gender discrimination. The firm’s accountable partner policy comprise a mandatory need for their suppliers to pay the living salary to their employees by year 2030 (Unilever, 2025). The firm has started closing the gap among the pay and living wages with the suppliers closest to the organization. The firm is committed to evaluate their wage gap as well as taking steps in the direction of paying the living wage. With an provision from sustainable trade initiative (IDH), the firm offers tools, training and other resources to assist suppliers in understanding living wages (Feng et al, 2022).

Discussion: the firm use sustainability materiality assessment to recognize the superior sustainability challenge across the value chain so that they are able to report on the challenges of most attentiveness to the stakeholders (Camilleri, 2022). Sustainable supply chain has become the top priority of the organization.

LT5078 Sustainability, Business And Responsibility Case Study

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Business case: Incorporating sustainability further into Unilever business strategy

For companies, embracing the sustainability is a moral and strategic necessity which aligns with changing customer expectations. This aligns with the changing customer expectations, investment trends, regulatory stress as well as offering tangible advantages such as cost savings (Ferreira et al, 2021). When the organizations neglect to handle the challenges can lead to financial loss as well as reputational harm. The firm is working to build the resilient supply chain by enhancing resource effectiveness and also transforming the business to accomplish their ambitious.

Two actions that can help achieve progress in the firm’s most material challenges

1. Adopt Circular Economy Practices for Packaging
2. Enhance Supply Chain Traceability and Fair Labour Practices

Expected benefits: Sustainable practice can lead to major cost saving with enhanced resources effectiveness as well as waste reduction. ESG is significant of modern business strategy, provide various advantages such as cost savings, risk management as well as enhance financial performance of the firm (RAMLI et al, 2023). A well-structured ESG supply chain strategy can lead to the range of advantages such as enhance regulatory compliance, cost reductions as well as enhance social awareness.

Operationalizing the Proposed Actions

The circular economy for plastics aims in reducing the wasteful usage of the plastics, reuse, use renewable sources of production as well as recycle plastics in the economy without the environmental leakage. The change to circular system needs the fundamental change within the packaging design to reduce waste as well as promote sustainability. The strategies include reducing packaging materials, incorporate recycle materials as well as use biodegradable materials in the packaging designs (Babajide et al, 2023). By leveraging the AI, the firm can automate the compliance tracking, evaluate data in real time as well as predict the potential risks which improve the decision making procedure. By embracing the ethical sourcing, the firm can improve their brand image, promote customer trust as well as long term development.

References

Books and Journals

• Aagaard, A., 2022. Sustainable business: Integrating CSR in business and functions. River Publishers.
• Babajide, A., Osabuohien, E., Tunji-Olayeni, P., Falola, H., Amodu, L., Olokoyo, F., Adegboye, F. and Ehikioya, B., 2023. Financial literacy, financial capabilities, and sustainable business model practice among small business owners in Nigeria. Journal of Sustainable Finance & Investment, 13(4), pp.1670-1692.
• Belas, J., Çera, G., Dvorský, J. and Čepel, M., 2021. Corporate social responsibility and sustainability issues of small‐and medium‐sized enterprises. Corporate Social Responsibility and Environmental Management, 28(2), pp.721-730.
• Blinova, E., Ponomarenko, T. and Knysh, V., 2022. Analyzing the concept of corporate sustainability in the context of sustainable business development in the mining sector with elements of circular economy. Sustainability, 14(13), p.8163.
• Camilleri, M.A., 2022. Strategic attributions of corporate social responsibility and environmental management: The business case for doing well by doing good!. Sustainable Development, 30(3), pp.409-422.
• Feng, Y., Akram, R., Hieu, V.M. and Hoang Tien, N., 2022. The impact of corporate social responsibility on the sustainable financial performance of Italian firms: mediating role of firm reputation. Economic research-Ekonomska istraživanja, 35(1), pp.4740-4758.
• Ferreira, J.J., Fernandes, C.I., Schiavone, F. and Mahto, R.V., 2021. Sustainability in family business–A bibliometric study and a research agenda. Technological forecasting and social change, 173, p.121077.
• Huang, X., Chau, K.Y., Tang, Y.M. and Iqbal, W., 2022. Business ethics and irrationality in SME during COVID-19: does it impact on sustainable business resilience?. Frontiers in Environmental Science, 10, p.870476.
• Le, T.T., 2022. How do corporate social responsibility and green innovation transform corporate green strategy into sustainable firm performance?. Journal of Cleaner Production, 362, p.132228.
• Li, Y., Al-Sulaiti, K., Dongling, W., Abbas, J. and Al-Sulaiti, I., 2022. Tax avoidance culture and employees' behavior affect sustainable business performance: the moderating role of corporate social responsibility. Frontiers in Environmental Science, 10, p.964410.
• Luo, X., Qian, W., Liu, M., Yu, X. and Liu, Y., 2024. Towards sustainability: Digital capability, sustainable business model innovation, and corporate environmental responsibility of high‐performing enterprises in an emerging market. Business Strategy and the Environment, 33(6), pp.5606-5623.
• Meseguer-Sánchez, V., Gálvez-Sánchez, F.J., López-Martínez, G. and Molina-Moreno, V., 2021. Corporate social responsibility and sustainability. A bibliometric analysis of their interrelations. Sustainability, 13(4), p.1636.
• RAMLI, Y., PERMANA, D., SHIRATINA, A., SOELTON, M. and YUSOFF, Y.M., 2023, November. Implementing Innovation Strategic Against Sustainability Business On The Micro, Small And Medium Enterprises. In ICCD (Vol. 5, No. 1, pp. 60-65).
• Sheehy, B. and Farneti, F., 2021. Corporate social responsibility, sustainability, sustainable development and corporate sustainability: What is the difference, and does it matter?. Sustainability, 13(11), p.5965.

Online

• CDP Climate Response, 2023. Online. Available through. :< https://www.accenture.com/content/dam/accenture/final/markets/north-america/document/Accenture-CDP-Climate-Response-2023.pdf>.
• Lewis., J, 2025Raw Materials Sourcing. Online. Available through. :< https://www.johnlewispartnership.co.uk/csr/our-strategy/raw-materials-sourcing.html>.
• Nestle to triple cocoa supply chain sustainability, 2025. Online. Available through. :< https://www.edie.net/nestle-to-triple-cocoa-supply-chain-sustainability-funding-with-focus-on-human-rights/>.
• Sustainability Ratings and Rankings, 2024. Online. Available through. :< https://www.hul.co.in/sustainability/sustainability-reporting-centre/sustainability-ratings-and-rankings/#:~:text=In%202023%2C%20our%20ESG%20score,'Strong'%20score%20by%20CRISIL.&text=In%202022%2C%20we%20ranked%20%232,'Strong'%20score%20by%20CRISIL>.
• Unilever, 2025. Online. Available through. :< https://www.unilever.com/sustainability/livelihoods/#:~:text=Helping%20suppliers%20change,now%20pay%20a%20living%20wage>.