How is Unilever Innovating to Reduce Supply Chain Emissions?
Unilever is teaming up with agricultural innovator Nufarm to combat emissions across its supply chain, focusing on a crop that promises significant environmental benefits.
The partnership explores energy cane, a new variety of sugar cane engineered to produce oils that can replace petrochemical ingredients in cleaning and personal care products. It marks a critical step in Unilever’s broader commitment to reducing Scope 3 emissions and achieving net zero across its value chain by 2039.
Scope 3 emissions are indirect emissions occurring across a company's supply chain, from the sourcing of raw materials to the use of finished goods. They often make up the majority of a business's carbon footprint.
For Unilever, raw materials alone account for more than half of its overall emissions, making sustainable alternatives like energy cane vital for meaningful progress.
What makes energy cane a game-changer?
Unlike traditional crops used for oil extraction, energy cane uses the entire plant, from its leaves to its stems, to produce fatty acids. These fatty acids serve as key ingredients in many of Unilever’s household and personal care products.
This comprehensive utilisation of biomass not only reduces waste but also unlocks a sustainable and renewable source of oils, a critical step toward decarbonising supply chains.
Energy cane is more than a source of plant-based oils; it’s a crop designed for resilience. Tolerant of harsh climates and drought, it minimises environmental impact while supporting biodiversity and soil health. Farmers benefit too, as energy cane adapts easily to modern agricultural practices and offers sustainable harvesting options.
Nufarm, with its century-long expertise in agricultural innovation, plays a key role in this project. Known for sustainable crop technologies, the company has been pivotal in scaling energy cane’s development.
Together, Unilever and Nufarm aim to bring this innovation to commercial scale, making it the first biomass crop designed for large-scale production of plant-based oils in consumer goods.
By continuing to invest in biotechnology, we aim to further unlock the power of nature and build a more sustainable and diverse supply chain for the future.
This partnership enables us to identify alternative ingredients for our household, beauty and personal care brands, further supporting our ambition to reach net zero emissions across our value chain by 2039.
The wider impact
The potential of energy cane extends far beyond oils. The plant also produces sugar, a valuable by-product that could be leveraged for other biotechnology applications, such as creating enzymes or fragrances.
Even the leftover fibres may find new life as raw material for paper or packaging, ensuring no part of the crop goes to waste.
This focus on maximising every aspect of energy cane reflects Unilever’s ambition to pioneer resource-efficient solutions that contribute to the circular economy.
By reducing dependency on petrochemical ingredients and harnessing the plant’s versatility, the company sets a new benchmark in sustainable agriculture.
The crop’s adaptability and minimal environmental footprint also align with Unilever’s efforts to build resilience in agricultural supply chains.
As global environmental pressures mount, innovations like energy cane offer a glimpse into how businesses can balance sustainability with the need for reliable and scalable resources.
A sustainable future through collaboration
While energy cane’s potential is immense, Unilever and Nufarm's project remains in its early stages, with current efforts focused on research and development.
However, the long-term implications are far-reaching. If successfully scaled, energy cane could transform ingredient sourcing not only for Unilever but across various industries.
Unilever’s work with Nufarm illustrates the power of collaboration and innovation in addressing global challenges.
By leveraging advances in biotechnology, they are reimagining how ingredients are sourced, processed and used, ensuring a future where supply chains are greener, more efficient and better equipped to meet sustainability goals.
As Unilever continues to refine its sustainability strategy, energy cane serves as a beacon of what is possible when science, industry and environmental responsibility come together.
Explore the latest edition of Supply Chain Digital and be part of the conversation at our global conference series, Procurement & Supply Chain LIVE.
Discover all our upcoming events and secure your tickets today.
Supply Chain Digital is a BizClik brand.
