Evert-Jan Daniels
Marc Engel, Unilevers Chief Procurement Officer for Supply Chain.
Global fast-moving consumer goods (FMCG) giant Unilever plans to double the size of its business but halve its environmental footprint by 2020.
It is an ambitious plan, but Unilever’s global procurement boss, Marc Engel, believes it is achievable and that its African operations had an important role to play in getting to the target.
Last week, Engel was in Durban, home to Unilever’s southern African headquarters, speaking to more than 80 of the group’s top suppliers and updating them about the company’s sustainable-living plan and growth strategy.
“Africa is a vital part of Unilever’s plans and we currently have a e3 billion [more than R30bn] business in Africa, which is growing significantly,” he told The Mercury in an interview.
“Africa is Unilever’s fastest-growing region in terms of turnover, which is in line with the continent now being seen more than ever as a serious place to do business. We are not only growing our business here in terms of new consumers, but operations and production facilities, too.
“We’ve had a presence in South Africa for more than 100 years and make some of the country’s leading FMCG brands. While we have operations in many African countries, our headquarters in La Lucia, Durban, is an important corporate hub for us on the continent where much of our expertise are based and growth plans in Africa are managed,” he said.
Unilevers green R670m Indonsa dry foods factory in Durbans Riverhorse Valley Business Estate, which is one of the most technologically advanced and environmentally sensitive factories in the world.
“Food security is becoming a global issue and Africa is seen as one of the key solutions by being home to some of the most arable land in the world… In terms of the impact on the environment and the communities in which we operate, Unilever aims to grow and do business in a more sustainable, reputable and equitable way.”
He said Unilever’s shift to embracing sustainable growth and taking ‘‘green issues” more seriously came in 2009 with the appointment of Paul Polman as CEO.
Polman, who has been described as “Captain Planet” by the influential Harvard Business Review, put “green issues”, such as the target to halve Unilever’s carbon footprint by 2020, at the core of the business.
“Since taking over as CEO… |in 2009, he has transformed the Anglo-Dutch multinational into one |of the world’s most innovative |corporations,” said Harvard Business Review.
Engel said Polman’s strategic leadership had resulted in the launch of the Unilever Sustainable Living Plan in 2010. The plan addresses how it would double the size of its business, while at the same time reducing its environmental impact by half and making a more positive social impact by 2020. Other goals include sourcing 100 percent of the firm’s agricultural raw materials sustainably and helping 1 billion people improve their health and well-being.
Engel said the conference in Durban was part of Unilever’s aim to achieve its 2020 targets by getting the buy-in of its local suppliers.
Paul Polman, CEO of Unilever and who has been described as Captain Planet by the Harvard Business Review meets UN secretary general Ban Ki-moon, right, at UN headquarters in New York.
Picture: UN Photo
“We cannot do this on our own. Our suppliers all over the world are integral to Unilever achieving its ambitious 2020 goals. As part of the broader plan, we have launched the ‘Partner to Win’ programme, which aims to work with our suppliers to create long-term partnerships for mutual and more sustainable growth,” he said.
“We are making good progress, but it is vital for us to work in closer partnership with our strategic suppliers to ensure faster innovations and to invest sustainably throughout our value chain.”
Traditionally the buying function was based mainly around cost, but as part of Unilever’s sustainability plans, the company recognised that suppliers could add a lot of value and ideas in reducing the carbon footprint across the value chain.
Last year Unilever opened the R670m Indonsa “green” savoury dry-food factory at Durban’s Riverhorse Valley Business Estate.
Indonsa was a global first for the group in Africa in terms of advancing its focus on advanced sustainable “green” technology.
Apart from energy-saving technologies, the plant is not connected to the city’s water supply; all its water requirements are catered for from huge rainwater collection containers on its roof.
Unilever, which had a global turnover of e46.5bn last year, |operates 250 plants selling about |170 billion products in 180 countries annually.
Engel said this scale meant that the company could play a significant role in driving the sustainability business agenda through hundreds of suppliers worldwide.
He said the company was also playing a bigger a role in consumer awareness by developing products that had a lower environmental impact. One example was washing powder, where one bucket of water was used instead of three in the washing process.
