In 2020, we set out our long-term ambition to achieve net zero across our value chain by 2039. One of the biggest challenges is sufficiently reducing the emissions associated with chemical ingredients in our Home Care products, particularly those made from fossil feedstocks.
We can lower these emissions by advocating for an industry transition to renewable and recycled raw materials, instead of petrochemicals. One of our main areas for this advocacy work is in India, our biggest Home Care market.
To help lead the drive towards net zero in India’s chemical industry, Hindustan Unilever (HUL) is chairing a working group of the Resource Efficiency and Circular Economy Industry Coalition (RECEIC), established by the Government of India during its G20 Presidency in 2023.
This working group on Material Transition for the Chemicals Industry seeks to create a clear roadmap for transitioning the industry away from virgin fossil use, setting a new standard for sustainability in the sector.
Rajat Arora, Head of Unilever Home Care R&D in Asia and chair of the working group, says: “Because of the scale of our business in India and the impact we can create, we want to be – and have a responsibility to be – at the forefront of this change. At HUL we believe ‘what is good for India is good for HUL’.”
An industry at a crossroads
India’s chemical and petrochemical industry – currently valued at $220 billion (€203 billion) and employing 2 million people – stands at a critical fork in the road.
While it’s vital to the country’s manufacturing ambitions, its reliance on fossil feedstocks poses dual challenges of reducing greenhouse gas emissions and its dependence on imports. This raises concerns about resource security and economic and environmental sustainability.
As India advances towards its commitment of achieving net zero emissions by 2070, the sector must transform how it sources and processes its raw materials. It needs to shift from imported fossil fuels to local bio-based alternatives.
Reimagining the sector’s future
At the first RECEIC conference (where we were the principal partner), we led the debate on the opportunities and challenges alongside senior government officials, representatives from across industries, academics and international experts. A white paper was also released by the HUL-chaired working group.
The paper details insights to accelerate the transition, focusing on areas that require cross-industry co-operation. It explores research and technology pathways, especially for feedstocks such as used cooking oil and waste biomass. It also proposes developing India-relevant frameworks and standards, taking learnings from the EU, the OECD and CEFIC (the European Chemical Industry Council which is the main European trade association for the chemical industry). CEFIC’s Safe and Sustainable-By-Design principles are of special interest here.
“The recommendations in this white paper provide a carefully crafted roadmap for stakeholders to collaborate effectively in driving the required transformation,” says Rajat. “By implementing them, India can transform its chemicals manufacturing sector, meet climate goals, lead technology development and unlock economic opportunities.
This strategic shift aligns with India’s vision for sustainable industrial leadership and Atmanirbhar Bharat (a self-reliant India), potentially positioning the country as a global leader in sustainable chemical production while supporting both environmental and economic objectives.
Rajat Arora, Head of Unilever Home Care R&D
Accelerating progress towards lower-emission chemicals
To help us lower emissions sooner rather than later, we’ve set a target to reduce scope 3 energy and industrial emissions by 42% by 2030 (versus 2021). Our Climate Transition Action Plan (PDF 7.98 MB) sets out our actions towards this, including lowering emissions linked to two key chemicals we buy: soda ash and linear alkylbenzene sulphonate (LAS). In 2024, we worked with suppliers to reduce the greenhouse gas (GHG) footprint of LAS production.
Driving a faster transition across the industry
Despite being a large global company, Unilever is a relatively small player in the chemical industry. There is only so much we can achieve on climate on our own. This is why we’re working with a broad range of stakeholders to drive a faster transition of the industry.
The chemical supply chain also contains many interdependencies. So any approach must consider the entire sector from aviation fuel to industries like ours. Innovation, investment and delivery at scale take time – and we need government action sooner rather than later.
Unilever is pushing for countries to support the infrastructure needed for non-fossil-fuel-based chemical raw materials at a competitive price. This will involve integrated national policies that work together to deliver industry transformation.
“Addressing scope 3 or supply-chain greenhouse gas emissions is a challenge many large companies are facing,” says Rebecca Marmot, Unilever Chief Sustainability and Corporate Affairs Officer. “But by working together, we can accelerate progress and find solutions that benefit consumers and industry, yet still deliver the emission reduction that is needed.”
Read the working group’s white paper (PDF 19.7 MB)