Unilever links climate action to growth strategy

The company uses AI and digital twins, which are virtual replicas of factory processes and production lines that incorporate real-time site data.

Unilever is using climate action to support its growth strategy, with initiatives spanning product development, renewable energy, manufacturing technology and supplier partnerships, according to Rianne Buter, Global Head of Sustainability at Unilever.

Speaking ahead of Climate Week NYC 2026, Buter outlined how the company is addressing emissions while managing operational risks, improving efficiency and developing products and production processes.

Climate action shapes Unilever product development

Buter said Unilever’s climate strategy is integrated into its approach to sourcing raw materials, formulating products, manufacturing and consumer use. The company is also using product innovation and reformulation to reduce greenhouse gas emissions.

In North America, Axe body sprays use boosted nitrogen technology, combining nitrogen with a reduced share of propellant. Dove Frizz Protect and Smooth Hairspray has a formula designed to reduce greenhouse gas emissions, while Dove and TRESemmé shampoo and conditioner bottles in the US use 100 percent post-consumer recycled plastic, excluding caps and pumps.

Unilever’s Home Care business is also using its RhamnoClean technology in Sunlight dishwashing products in Indonesia and other markets. The technology uses plant-based, readily biodegradable alternatives to fossil-fuel-based chemicals.

Renewable energy drives emissions reductions

Unilever has reported a 77 percent reduction in operational greenhouse gas emissions, covering scope 1 and 2 emissions, from its 2015 baseline by the end of 2025. The company has set a target of a 100 percent reduction in its own operations by 2030.

Rianne Buter, Global Head of Sustainability, Unilever: "Our response to climate change isn’t separate from Unilever’s growth priorities. It’s part of how we do business – to manage risk, increase efficiencies and build a more resilient future."

Unilever also reported that renewable electricity accounted for 88 percent of its global electricity consumption in 2025. The company is adapting infrastructure to use renewable electricity for heating and cooling while exploring renewable thermal energy sources including solar, geothermal and biofuels.

AI and technology support manufacturing efficiency

Unilever said thermal energy decarbonisation remains complex because newer technologies often need to be integrated into existing manufacturing infrastructure. In 2025, the company combined industrial-scale heat pumps and electric boilers at sites in India and the Philippines.

At its Unilever Oleochemical Indonesia plant in North Sumatra, the company has also started using biomethane derived from liquid waste from palm oil production as a renewable thermal energy source.

Technology is also being applied to reduce energy consumption in manufacturing.

At the company’s Gandhidham Personal Care site in India, the use of AI and digital twins supported 24 percent production growth between 2021 and 2024. Unilever said energy savings contributed to a 90 percent reduction in scope 1 and 2 emissions between 2021 and 2023.

AI and suppliers support Unilever climate targets

Unilever is also working with suppliers to address emissions in its wider value chain. By the end of 2025, almost 200 key suppliers, representing 40 percent of the company’s raw material scope 3 emissions, were included in its Supplier Climate Programme.

The programme focuses on sharing best practices, innovation and financing partnerships to reduce emissions and improve resilience across the supply chain.

One initiative involves aluminium can suppliers and the use of aluminium produced with lower-carbon energy to reduce emissions associated with aerosol packaging.

www.unilever.com

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