PH businesses continue to deliver growth and impact through Transform to Net Zero coalition

Climate change is real and especially for us, Filipinos, its effects hit closer and closer to home.  The Global Climate Risk Index reported that the Philippines is among the top five most disaster-prone countries that are exposed, affected by, and is highly vulnerable to climate change (https://climatechange.denr.gov.ph/), proving the country’s higher risk of experiencing the ill effects of climate change which pose risk to human health and greatly impact the how we live our daily lives.

To the underscore the value of our people’s awareness on climate change and climate action, an event billed as Net Zero Carbon Alliance (NZCA) 101 Media Training was held to encourage and inspire journalists, media practitioners, and communicators to provide the voice that will awaken businesses and consumers to take bolder steps and get involved in supporting Climate Action. During times when better and effective communication is needed to enjoin everyone into action, this event is a huge step towards every individual’s journey and battle against the climate crisis.

Climate change has a great impact on the economy as weather disturbances, natural calamities, water crisis and other hosts of global warming effects do not only affect food sourcing, manufacturing and production, but it also causes disruptions in the supply chains and logistics.  All these add to the unavailability of supply which, in turn, results in increased cost of food and goods, and annual losses in the country’s gross domestic product (GDP).   A study based on the Asian Development Bank cited that if climate change risks are not mitigated, the Philippines will lose 6% in GDP annually from 2100 (https://niccdies.climate.gov.ph/climate-change-impacts) and the gap between the rich and poor will even be wider. There will be lesser access to clean water, higher risks of extreme heat, small businesses and livelihood will close down especially farms and fisheries, and economic growth will stagnate, further exacerbating poverty.

How businesses can help curb the environmental crisis

The UN emphasized that opting for sustainable development (as mentioned in its Sustainable Goal 13: Climate Action) means creating jobs, allowing for substantial cost savings, enhancing brand image, and long-term resilience for any organization. Currently, several businesses are becoming increasingly mindful about sustainability, environmental responsibility and transitioning to renewable energy—which are cleaner, less expensive, and emit little to no greenhouse gas emissions (https://www.un.org/sustainabledevelopment/climate-change/). The good news is several leading companies have taken the first steps towards transitioning to renewable energy to save the Philippine economy from this clear and present danger. 

Unilever—one of the biggest FMCG players in the country with strong category positions in Nutrition, Beauty & Wellbeing, Personal Care, Ice Cream & Home Care—is recognized for its commitment to be a high-performing sustainable business. To future-proof its value chain, Unilever takes a bold step to drive climate action through a determined sustainability agenda, a mindful advocacy it has championed for over two decades now. 

Unilever’s Climate Transition Action (CTAP) is a forward-looking list of actions and medium and long-term goals, ensuring that its operations do not compound, through proactive mitigation efforts and comprehensive adaptation strategies. Under this CTAP, the company is progressively reducing its emissions, reformulating products and shifting to sustainable packaging. Faced with the ever-evolving economic, social, and environmental challenges, Unilever zeroes in on delivering impact by making sustainability progress integral to the way it does business, ever steadfast in its resolve to deliver consistent and competitive performance while transforming its business to achieve its sustainable development goals. 

CTAP: Taking action today

Unilever’s CTAP immediately started the journey towards lowering the company’s emissions by 2030, reformulated its products, and opted for better and more sustainable packaging, without compromising on product performance and consumer satisfaction.  Unilever also started utilizing regenerative farming methods to make its supply chain more resilient, protecting crops against extreme weather conditions, and uses renewable energy by recovering waste heat in all its operations for added efficiency ang lesser exposure to volatile energy markets (Sustainability | Unilever).  

Building on a decade of sustainable living, Unilever’s new era of sustainability leadership focuses on nature, plastics, livelihoods and climate.  After publishing its CTAP in 2021 and updated it in March 2024, (https://www.unilever.com.ph/news/2024/why-weve-updated-our-climate-transition-action-plan/), it has already reduced greenhouse gas (GHG) emissions in its operations and lowered the emissions intensity of its products across its value chain.  Ultimately, the ambition is to reach net zero across all value chains by 2039 and to be able to bring it to fruition, Unilever believes that it is crucial to reduce emissions over the next few years and put the building blocks in place to ensure long-term delivery.  Unilever also cites specific key actions that it has taken so far including the use of lower-GHG ingredients in its Home Care products, increased use of plant-based and lower-GHG ingredients in their nutrition products, reducing use of palm oil in soap bars, among others.  

As stated in the CTAP, “Unilever envisioned that by the end of 2023, the GHG emissions as a result of producing its key forest-risk products such as palm oil, paper, soy, cocoa, and tea will be zero.  Additionally, 97.5% of our palm oil, paper and board, tea, soy and cocoa order volumes were deforestation-free by the end of 2023, based on Unilever’s deforestation-free requirements.” (Our progress towards a deforestation-free supply chain | Unilever).  

Currently, it has invested in its value chain to meet current and future demand for deforestation-free commodities. The company also enrolls its suppliers and farmers in its programs to encourage them to improve practices so as not to contribute to land use and to promote regenerative agriculture. As to the packaging of its products, Unilever is steadily increasing its use of post-consumer recycled plastic (PCR) to help reduce its dependence on virgin derived plastics. It has also designed its packaging towards recycling and reuse.  As further proof of its commitment to environmental responsibility, Unilever already uses 100% renewable grid electricity globally, in all its factories, offices, R&D facilities, data and distribution centers, and warehouses since January 2020.  It has also installed Solar Photovoltaic (PV) to power its Cavite Nutrition factory’s three main buildings, particularly the Savoury factory, Dressings factory and utilities building.    

All roads lead to Net Zero

Unilever is a founding member of Transform to Net Zero, a coalition which aims to accelerate achievement of an inclusive net zero global economy no later than 2050.  Consistent with its drive for collaborative action, Unilever worked with the Net Zero Carbon Alliance (NZCA) in the Philippines for a media training on Net Zero reporting.  The event gathered journalists, media practitioners, communicators, thought leaders, and government agency representatives, government agency representatives in a candid discussion on the gaps and opportunities in climate reporting.  The workshop provided a platform for journalists and knowledge partners to deep dive into key topics that impact the country as well discuss how to foster better engagement between business and the media. Participants also gained further knowledge about an anthology of issues related to more effective net zero media reporting, through discussions and case studies.  

During the event, Rondell Torres, Unilever Philippines Sustainability Lead, discussed about how local actions could align with Unilever’s global climate commitment and announced about the company’s recently updated CTAP to reflect the company’s progress on Climate Action, and additional new climate science that has emerged sourced from experts like the UN Intergovernmental Panel on Climate Change, among others.  “Reporting on the latest climate science and progress on climate action remains an important responsibility for our media partners. Like our partners in the Net Zero Carbon Alliance, we fully support the role of the media in climate reporting and covering private sector efforts to advance the goal of limiting global warming to no more than 1.5°C, per the Paris Agreement.  For our part, Unilever is aiming to accelerate greenhouse gas emissions reductions within our own operations and our value chain, and how to deliver these results are captured in our 2024 Climate Transition Action Plan. Ultimately, we are living out our purpose to make sustainable living commonplace, and we value our partners in media and sustainability to make this all happen,” Torres said.

Businesses are key drivers towards Climate action and Unilever believes that sustainability is a business enabler and simply the right thing to do for the people and the planet.

It emphasizes, however, that saving the environment is both a business and moral imperative, as Climate action should be a collective effort and everyone’s responsibility.  Therefore, Unilever is calling on everyone—businesses, governments, international alliances, government, and all Filipinos—to come together and get involved in its efforts to curb climate change. Given the impending threats and consequences, there is a serious need for all aspects of society to commit and align with the global pledge to reach net zero by 2050.  The race to achieve a zero-carbon economy is a concerted effort, because business alone cannot drive the transition at the speed that is required. Everyone is expected to put their foot down, act, and be involved in collective solutions towards climate action as working together is humanity’s inherent superpower.    

For more information about Unilever’s sustainable goals, you may visit Unilever Climate Transition Action Plan updated 2024, or its website: https://www.unilever.com.ph/

INQUIRER.net BrandRoom/JC

Read more...