The Role of Circularity in Fortune 5000 (Part 2)

Case Study: Unilever

Unilever, a global consumer goods company, has been at the forefront of circular implementation. Unilever’s commitment to circularity is evident in its various initiatives. The

Unilever Sustainable Living Plan outlines its vision to decouple growth from environmental

impact while increasing positive social impact. A key pillar of this plan includes the highly ambitious target to achieve 100% recyclable plastic packaging by 2025, highlighting their dedication to waste reduction and sustainable materials management.

 

Boost in Brand Reputation


Unilever’s effort in promoting renewable energy is another initiative that has boosted

its brand reputation. The RE100 initiative shows Unilever’s commitment to sourcing 100% of its

energy from renewable sources by 2030, further emphasizing its environmental consideration.

 

Such efforts demonstrate how Unilever’s circular business practices strengthen its brand

reputation by showing their active role in addressing environmental challenges and promoting

sustainability.

 

Attractive Choice for Dividend Investors


Unilever's bold approach towards circularity, sustainability, and ESG goals has positively impacted its stock performance over the past five years. The consistent commitment to sustainable goals and the growing interest of investors in companies with strong ESG principles have led to a steady increase in the value of Unilever's shares. CNN Money provides a detailed report on Unilever's stock performance over the past five years. Yahoo Finance offers comprehensive historical data, corroborating the steady performance of Unilever in the stock market. 


Furthermore, Simply Wall St analyzes how Unilever's sustainable initiatives have made it an attractive choice for dividend investors. These resources highlight how Unilever's circularity commitment has delivered sustainability and driven strong financial performance.


Documented Cost Savings


One of the most impactful examples of cost savings via Unilever’s adoption of a circular

principles can be seen in its waste reduction initiatives. By implementing more efficient

packaging designs and reducing the use of virgin plastic, Unilever has been able to save an

estimated $227 million in packaging costs since 2008, according to its Sustainable Living Plan

Progress Report.

 

Additionally, Unilever’s “zero waste to landfill” commitment across its global factory network has led to significant cost savings in waste disposal. In 2015, they reported saving €200m over five years due to the waste reduction efforts at their factories.


Another impressive example is the implementation of their eco-efficiency programs, which focus on conserving resources like water, energy, and materials. Unilever's 2019 Sustainability Report reveals that these programs have saved the company nearly €650m since 2008.  Adopting circular business practices has helped Unilever reduce its environmental footprint and generated substantial cost savings for the company.


In our next post, we will conclude by emphasizing the importance of developing an Environmental and Social Justice (ESJ) framework as the strategic approach to doing business in the future. 

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