How Unilever is Responding to Weak Climate Scope Pledges
Atmospheric CO2 is now 50% higher than pre-industrial levels, according to the US National Oceanic and Atmospheric Administration.
Yet, emissions are still rising and McKinsey says a 30% jump is likely this decade. Meanwhile, global companies are rowing back on climate promises, raising questions over the effectiveness of voluntary corporate action.
Unilever, the consumer goods giant, is sticking with its Climate Transition Action Plan while many others loosen their targets.
As Bloomberg Businessweek reports, this shows a widening gap in corporate climate leadership and asks 'is voluntary action through the supply chain enough?'
Supply chain retreats reveal corporate climate fatigue
More than 10,000 companies have signed up to climate targets via the Science Based Targets initiative, but the follow-through is increasingly thin. Several firms have downsized their ambitions, cutting back in the face of political pressure, rising costs or slow regulatory change.
Energy firm bp, for example, is increasing oil drilling and pulling funds from renewables. Coca-Cola and PepsiCo have scaled back the plastic reduction targets they set in 2021. In banking, Wells Fargo and HSBC have weakened emissions goals. Retailer Walmart has admitted delays in hitting environmental milestones.
This is not just corporate drift, explains Ken Pucker, Professor at Tufts University’s Fletcher School of Law & Diplomacy and former Chief Operating Officer at Timberland.
Speaking to Bloomberg, he calls it a wake-up call: “I am heartened by the alacrity of the retreat and the ferociousness of it, because I think it uncovers the reality that we all need to understand, which is companies aren’t going to save the planet. The quicker that people understand and integrate that, the better.”
Supply chains sit at the heart of these challenges. Decarbonising them goes far beyond low-hanging fruit like LED bulbs or rooftop solar. True change involves costly overhauls—shifting from fossil-fuelled transport, overhauling packaging, or transitioning to low-carbon manufacturing materials.
Auden Schendler, climate author and former Senior Vice President of Sustainability at Aspen One, illustrates the point. “I would happily spend the rest of my life changing lightbulbs and retrofitting buildings,” he told Bloomberg.
“It’s incredibly gratifying, it saves money, it reduces pollution, it makes buildings run better. But here’s the only problem: It’s not a solution to the climate problem.”
Voluntary pledges, but little regulation
Voluntary action has defined much of the corporate climate response so far.
However, with retreat now becoming a trend, Bloomberg's reporting suggests these efforts are not enough to match the urgency of the crisis. In many cases, companies are undermining their own climate commitments by resisting regulation behind the scenes.
Trade groups can offer companies political cover while lobbying against climate legislation—even when their members outwardly support action. Airlines, for instance, resist mandates on Sustainable Aviation Fuel (SAF) despite having net zero goals.
In response, the European Union has introduced the ReFuelEU Aviation Regulation to enforce SAF targets.
This contradiction between public pledges and political lobbying undermines the credibility of voluntary climate efforts.
Yet Unilever stands apart in its approach to lobbying. Rather than simply signing up to climate goals, it evaluates the positions of the trade groups it belongs to. If these organisations are found to be out of line with Unilever’s environmental values, the company says it is ready to disclose the misalignment and leave.
That kind of transparency has been rare. By putting supply chain pressure on trade bodies and exposing conflicts between words and actions, Unilever is creating space for real accountability.
Regulation reshapes corporate risk
What Unilever does also matters to its peers. If regulations penalise polluters and reward early movers, companies that go first might finally gain market advantage rather than face higher costs. Without that, early adopters face a risk: bearing the expense of change while competitors stall.
Groups like ClimateVoice are pushing from within. They’re calling on employees to advocate internally for companies to back climate legislation. That shift—from voluntary individual targets to collective legislative action—could be what’s needed to turn pledges into delivery.
Regulation is not a threat to business; it could be the safety net companies need to decarbonise their supply chains without losing competitive edge. For those dragging their heels, though, that window may be closing.
