Unilever has long been seen as a leader when it comes to sustainability. From how it sources raw materials to how it treats its workers and designs its products, the company has often gone further than most. But with shifting global priorities and increasing pressure to deliver real results, is Unilever still raising the bar—or falling behind?

Here’s a straightforward look at what they’ve done recently, what’s changed, and what’s still underway.

Climate Action: A 74% Cut in Emissions

Unilever has reduced greenhouse gas emissions from its own operations—factories and offices—by 74% since 2015. This is ahead of schedule, beating its previous goal of 70% reduction by 2025. Every Unilever site now runs on 100% renewable electricity.

The harder challenge is tackling emissions that come from their supply chain and how customers use their products, known as Scope 3. These make up the bulk of the company’s carbon footprint. To address this, Unilever is aiming to reduce industrial emissions by 42% and emissions from land use (such as agriculture) by 30.3% by 2030, using 2021 as the starting point.

“We’re making good progress on cutting emissions in our own operations—but the bigger challenge lies in our value chain,” said Rebecca Marmot, Unilever’s Chief Sustainability Officer.

Plastic: Targets Shifted, But Progress Is Visible

In 2019, Unilever made a bold promise: cut virgin plastic use in half by 2025. That target has since been adjusted. The company now aims for a 40% reduction by 2028. While some saw this as a step back, Unilever has still made meaningful progress.

So far, the company has reduced virgin plastic use by 23%. Around 57% of its packaging is now recyclable, reusable, or compostable. Recycled plastic now makes up 21% of its total packaging materials, with a target of reaching 25% by 2025.

“We’ve had to adjust timelines, but our focus on reducing plastic waste remains strong,” said Richard Slater, Unilever’s Chief R&D Officer. The company is also pushing for system-wide changes, backing the creation of a legally binding UN treaty to address global plastic pollution.

Protecting Nature and Farming Regeneratively

Unilever is taking action on nature, too. The company has committed to farming 1 million hectares of land using regenerative practices—methods that improve soil health, boost biodiversity, and store carbon. It also plans to protect or restore another 1 million hectares of forests, wetlands, and other ecosystems by 2030.

So far, it has launched 23 regenerative farming projects covering 130,000 hectares, and 13 ecosystem restoration programs covering 425,000 hectares. In addition, 97% of Unilever’s key raw materials—including palm oil, tea, soy, and paper—are now sourced without deforestation.

“Nature is our biggest supplier—and protecting it is business-critical,” said CEO Hein Schumacher.

Paying a Living Wage

Unilever now pays all of its employees worldwide a living wage, meaning enough to cover basic needs like food, housing, healthcare, and education. That’s a big step beyond the legal minimum wage in many countries.

The company is also encouraging its suppliers to do the same. As of now, suppliers that make up 32% of Unilever’s procurement spend have joined its Living Wage Promise. The target is 50% by 2026.

“We know that paying a living wage is one of the most effective ways to reduce poverty and drive equality,” said Anouk Heilbron from the social impact team.

Putting Women in Leadership

Unilever has reached gender balance in management: 55% of its managers globally are now women. That’s higher than most companies of its size and industry. Beyond the workplace, Unilever is also changing how it markets its products. It no longer advertises to anyone under the age of 16. It’s also banned digitally retouching body shapes and skin color in its advertising campaigns. And on the product side, 91% of its children’s ice creams now meet strict limits on sugar and calories.

“We believe brands have a responsibility to challenge stereotypes and promote healthy, inclusive messages,” said Conny Braams, a former commercial leader at Unilever.

Governance: ESG Built Into the Business

Unilever isn’t just setting goals—it’s tying them into how the business is run. Their full climate transition plan was approved by 97% of shareholders. Executive pay is linked to performance on sustainability goals. And their ESG data is reviewed and verified by PwC, one of the big four auditing firms.

The company has also made it clear that it will leave trade associations that don’t support action on climate change. This shows that its commitments go beyond internal policies and extend into the wider business environment.

When Plans Change: A Focus on What Matters Most

In 2024, Unilever updated some of its goals. It extended its timeline for reducing plastic, scaled back its supply chain wage targets slightly, and dropped a target on supplier diversity. Some critics called this a step backward. But CEO Hein Schumacher explained the shift as a move to focus on what really matters. “We’re prioritizing where we can make the biggest difference—and staying transparent about it,” he said.

Instead of sticking to overly ambitious targets and risking failure, the company is now focusing on fewer, more impactful areas like decarbonisation, fair wages, and product innovation.

What This Means for ESG Professionals

Unilever is not perfect. But in a space where many companies are still learning how to talk about ESG, Unilever has been doing the work for over a decade—and they continue to lead in many areas.

They’re cutting emissions. They’re changing how products are made, sold, and marketed. They’re raising the bar on pay and inclusion. And when plans need to change, they’re honest about it.

If you’re looking for a real-world example of what ESG in action looks like—progress, pressure, and course correction—Unilever remains one of the most useful companies to watch.

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