Unilever wants trade associations to take a more active climate advocacy stance

After finding significant misalignment with its trade associations on climate advocacy last year, Unilever’s increased engagement has resulted in better alignment – though most associations are only “passively aligned”.

Being a member of trade associations that support the same climate agenda is a crucial part of companies’ advocacy efforts – yet many firms are misaligned with their industry associations on this topic.

To tackle this, Unilever conducted its first Climate Policy Engagement Review last year. After finding significant misalignment, Chief Sustainability Officer Rebecca Marmot launched an engagement campaign to strengthen associations’ positions on the phase-out of fossil fuels, the shift to renewable energy and the implementation of regenerative agriculture – topics that are core to Unilever’s sustainability strategy.

This effort has brought positive results: of the 26 associations Unilever is a member of, 18 had no example of misalignment with the company’s positions on climate in 2024 – up from 13 out of 27 the previous year.

In addition, five trade associations are fully aligned with Unilever’s climate advocacy, up from three in last year’s review.

Unilever reduces engagement with VCI

While Marmot said last year Unilever was not opposed to terminating its membership with associations that would refuse to adjust their position on climate change, the company has not had to resort to this option.

However, it excluded the German Chemical Industry Association (VCI) – which was particularly misaligned in 2023 – from this year’s review, on the basis that Unilever is only an indirect member as part of its membership with IKW – the German Cosmetic, Toiletry, Perfumery and Detergent Association.

In addition, the company says it has “communicated to VCI that they do not have permission to use Unilever’s logo or in any way imply that Unilever endorses VCI’s policy positions” – suggesting that it wants to distance itself from the association, which is critical of the EU Green Deal and Carbon Border Adjustment Mechanism, and supports new gas developments.

Moving from passive alignment to constructive action

Despite progress, Unilever deplores the fact that half of its trade associations are still only “passively aligned” on climate – meaning they do not take strong action to support the phase-out of fossil fuels.

“We’re urging the industry bodies we work with to actively demonstrate their support for Unilever’s climate policies, including a phase-out of fossil fuels, a swifter transition to renewables and greater implementation of regenerative agriculture practices,” said Marmot about this year’s review.