LONDON, Sept 30 (Reuters) - Unilever ( UL ) has agreed
sustainability deals with its top 10 retail customers, including
Walmart ( WMT ), aimed at cutting greenhouse gas emissions and
minimising waste in its supply chain, the consumer giant's CEO
said on Monday.
Unilever ( UL ), which makes Dove soap, Knorr stock cubes and Ben &
Jerry's ( UL ) ice cream, was in the wake of the 2015 Paris agreement
on climate change the consumer industry's poster child for
setting tough sustainability targets.
About two years ago, however, the company came under
pressure from some investors concerned that Unilever's ( UL ) climate
strategy was distracting it from growing profits.
CEO Hein Schumacher in April changed some of the company's
years-old sustainability goals, leading to both praise from some
investors and criticism from climate activists.
"What's new and what's coming, and what I expect a lot from
in the years to come, is (our) collaboration on sustainability
agreements with (retail) customers," Schumacher said in an
interview at the Reuters IMPACT conference in London on Monday.
"We have a sustainability collaboration agreement... with
Walmart ( WMT ), for example...(The agreement) is about greenhouse gas
emission reduction, and we are their scope three."
Scope 3 emissions are those a company is indirectly
responsible for across its supply and distribution chain,
according to a classification development by non-profit
thinktank the World Resources Institute. A company's in-house
operations and energy use make up what is called Scope 1 and 2
emissions.
Walmart ( WMT ) has said previously it was working with suppliers to
avoid a 'gigaton' of greenhouse gas emissions from the global
value chain by 2030. Since it launched the initiative in 2017,
suppliers have reported that a total of 574 million metric tons
of emissions had been reduced or avoided, according to the
retailer's website.
Schumacher said Unilever ( UL ) also has a deal with health and
beauty retailer A.S. Watson's to create sustainable products
like body wash and toothpaste.
He added that Unilever ( UL ) was using climate-modelling to cut
supply chain emissions and make operations more resilient to
adverse events like drought.
"(Because of drought) we've completely changed our mustard
seed supply chain. We're changing our tomato supply chain, and
they do become a bit more resilient," he said.