Unilever CEO Has ‘No Idea’ How It Will Meet Full Net-Zero Target
Jope was outlining the challenges in meeting scope 3 goals, which the company has less influence over, by 2039.
(Bloomberg) -- Unilever Plc Chief Executive Officer Alan Jope said he had “no idea” how the consumer giant would meet a target of reducing “scope 3” carbon emissions -- which includes those generated by consumers using its products.
The company’s goods range from Dove soap to Knorr noodles and Surf detergent, and the energy used by consumers to cook food, wash clothes or clean their hair and skin “accounts for 60% of our total carbon footprint,” Jope said at the Consumer Goods Forum in Dublin on Tuesday. The energy output from its factories and distribution network is “almost immaterial” by comparison, the CEO added.
Jope was outlining the challenges in meeting scope 3 goals, which the company has less influence over, by 2039. He said it would require significant changes in consumer behavior and action from governments, including the adoption of much higher use of renewable energy worldwide. Unilever focuses on advocacy to help promote the changes needed as part of its overall carbon reduction strategy, he said.
The consumer giant is on track to meet its scope 1 and 2 emissions, which are those directly under the control of the company, said Jope.
Unilever is considered to be a leader in promoting the importance of sustainability as part of its business model. It has attracted some shareholder criticism during the past year, however, for focusing too much on sustainability when its performance is lagging compared to rivals. Terry Smith, the veteran founder of Fundsmith, notably accused Unilever of having “lost the plot” in its efforts to showcase its green credentials.
Jope said embracing sustainability is making Unilever a stronger, better financial performer and that many shareholders supported its strategy.
“We had one high profile investor who criticized us for being too committed to sustainability but that is such an outlier from every other experience we have,” he said.
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