Unilever, a global leader in consumer goods, is deeply committed to decoupling its business growth from environmental impact. This commitment is central to their Compass strategy, aligning with the UN Sustainable Development Goals. A significant part of this ambition involves transforming Unilever Transportation And Freight Logistics to drastically reduce its carbon footprint. Unilever aims to achieve net-zero emissions from its entire product range by 2039, a bold step ahead of the Paris Agreement’s 2050 target. This ambitious goal necessitates a complete overhaul of their supply chain, from raw material sourcing to product delivery, with logistics and distribution playing a pivotal role.
Their distribution network transports products over 1.5 billion kilometers each year from factories to where they’re sold – that’s the equivalent of travelling to the moon and back twice every day. This vast network highlights the scale of Unilever’s logistics operations and the corresponding environmental impact. Currently, logistics and distribution account for approximately 15% of Unilever’s total greenhouse gas emissions. Despite the scale, Unilever has already made significant strides, achieving a 43% reduction in carbon intensity in this area since 2010.
“Unilever is committed to achieving net-zero emissions by 2039, including from logistics and distribution. We are looking to work with all stakeholders across the value chain to achieve this objective. Smart Freight Centre plays a crucial role in this by providing logistics emission standards and creating collaboration projects across industries.”
Ashish Joshi
Global Supply Chain Director, Unilever
This quote from Ashish Joshi emphasizes Unilever’s dedication to sustainable logistics and their collaborative approach, recognizing the importance of industry standards and partnerships in achieving their ambitious targets for unilever transportation and freight logistics.
Strategies for Decarbonizing Unilever’s Logistics
Unilever’s strategy to decarbonize its unilever transportation and freight logistics is multifaceted, focusing on reporting and target setting, reduction measures, and collaboration across the industry.
Report and Set Targets
Transparency and clear targets are fundamental to Unilever’s approach. By openly reporting their emissions and setting ambitious reduction targets, Unilever ensures accountability and drives progress within their operations and across their value chain related to unilever transportation and freight logistics.
Reduce: Optimizing Transportation and Freight Operations
Unilever is actively implementing various strategies to reduce emissions from unilever transportation and freight logistics:
-
Modal Shift to Rail and Sea: Recognizing the higher carbon footprint of road transport, Unilever is strategically shifting towards rail and sea for long-distance freight. For instance, in North America, a significant 38% of their transportation distance is already covered by rail, demonstrating a substantial commitment to this modal shift.
-
Enhancing Trucking Efficiency: For unavoidable road transport, Unilever focuses on maximizing efficiency. This includes initiatives like deploying double-decker trailers in the Philippines, enabling 16% more product transport per trip. In Mexico, intelligent route planning and optimized pallet configurations have boosted fill rates by 10%. Furthermore, in India, improved truck loading systems and direct customer deliveries are minimizing unnecessary journeys and reducing distribution center reliance, all contributing to a more efficient unilever transportation and freight logistics network.
-
Digital Freight Matching (DFM): Embracing digital innovation, Unilever has implemented Digital Freight Matching in the US. This system utilizes smartphone apps to connect with smaller trucking providers, leveraging spare capacity and reducing “empty miles” by 10%. This not only cuts emissions but also lowers brokerage fees and enhances supply chain flexibility within unilever transportation and freight logistics.
-
Alternative Fuel Pilots: Exploring cleaner energy sources is crucial. Unilever is piloting alternative fuels like CNG (Compressed Natural Gas) and LNG (Liquefied Natural Gas) in 13 countries across the globe, including Argentina, Chile, Peru, Russia, North America, China, India, Turkey, Japan, France, Greece, Italy, and the Netherlands. These pilots are vital steps in transitioning towards lower-emission fuels for unilever transportation and freight logistics.
Collaborate for Industry-Wide Change
Unilever understands that transforming unilever transportation and freight logistics requires collaboration. By working with industry partners, organizations like the Smart Freight Centre, and other stakeholders, Unilever aims to drive systemic change and promote sustainable practices across the entire logistics sector.
Unilever: A Global Leader Committed to Sustainability
Unilever stands as a leading global supplier in Beauty & Personal Care, Home Care, and Foods & Refreshment, with products reaching 2.5 billion people daily across over 190 countries. With a workforce of 149,000 and a turnover of €50.7 billion in 2020, Unilever’s scale and influence are undeniable. Their commitment to sustainable unilever transportation and freight logistics is a testament to their broader dedication to environmental responsibility and creating a positive impact while serving billions of consumers worldwide.
References
Annual Report and Accounts 2020
Unilever sets out new actions to fight climate change (press release July 2020)
Greener logistics – the world has a lot further to travel
