How CPGs Like Unilever, Clorox, and Kenvue Are Working to Operationalize Sustainability Mandates

When it comes to sustainability in consumer goods, the stakes couldn’t be higher — nor the weight of responsibility greater. Consumer industries contribute 30-35% of emissions globally, per Accenture and the World Economic Forum, and these emissions can make up more than 90% of a consumer company's carbon footprint.“Emissions in our supply chains — which are known as Scope 3 emissions — are not in our direct control,” Unilever’s chief procurement officer Willem Uijen tells CGT. “And so, working with our suppliers is critical to their reduction. We estimate that over 60% of the emissions in the scope of our net zero ambition come from the raw materials, ingredients, and packaging we buy.” Integrating sustainability goals into business strategy has become both a necessity and obligation for CPGs. In response, many have set lofty, well-intentioned targets for sustainability goals that risk falling short. Today’s stakeholders demand tangible results, action, and accountability. With mandates of such magnitude, companies must develop and provide robust metrics to track and measure their success. Learn how sustainability is an ongoing practice, supported by data-driven metrics, and how technology can help progress reporting techniques to keep the momentum around circularity initiatives. 1. Refine data standards to reduce reporting complexitiesLeveraging advanced data analytics and artificial technologies enables real-time tracking of metrics, pinpoints areas for improvement, and more precisely measures the impact of initiatives across the board. The data, however, needs to be in good shape first. In pursuit of better data access, personal care company Kenvue has developed a new framework that prioritizes data's ability to serve employees, rather than the other way around. The company’s chief technology and data officer Bernardo Tavares says this shift has streamlined data management, allowing Kenvue to focus on key questions related to ingredients, materials, and pricing. After establishing a strong foundation of clean data and implementing data quality metrics, Kenvue teams developed a data catalog, which was made widely accessible and integrated through APIs.In addition, data action teams help to develop a minimum viable model, which is then enriched with clean data and supported by sustainable business rules — “to make sure it’s not a fire drill every other year,” Tavares says. CPG giant Unilever is well-attuned to using refined data systems in its sustainability efforts. Using a bespoke NDPE (no deforestation, no peat, no exploitation) dashboard, the company monitors sustainability compliance across its supply chain, tracking over 2,000 palm oil mills. This integration of deforestation alerts, radar technology, and partnerships like Earthqualizer demonstrates how precise data can empower actionable insights. Clorox has also joined the growing ranks of CPGs streamlining data standards to track circularity efforts more effectively. Through a new partnership, the company is enhancing sustainability efforts by enabling suppliers to track and report their progress, boosting data visibility across its ecosystem. Through this, Clorox can access relevant data and export it for submissions to the Carbon Disclosure Project, a global disclosure system for managing environmental data. Clorox suppliers will be able to measure, manage, and reduce carbon emissions, using the platform to meet carbon reduction targets.“Climate action is complex,” shares Niki King, chief sustainability officer at Clorox. “It requires companies to engage all parts of their supply chain to meaningfully reduce their environmental impact.”2. Explore the role of AI to drive efficiencies In an ideal world, clear and consolidated data-sharing frameworks lead to more efficient reporting, allowing companies to refocus efforts on creatively reducing their environmental footprint. In reality, there’s a disconnect between perception and preparedness. According to a recent KPMG survey, 83% of executives believe their organizations are ahead of their peers in sustainability reporting, but 47% still use spreadsheets as their primary ESG data management system. To more quickly bridge this gap, leading CPGs should not shy away from automation and artificial intelligence. “We often say Gen AI is the most human technology we’ve had,” Oliver Wright, Accenture’s global consumer goods and services industry group lead, explains. “Its conversational interface means people are likely to use it, and it enables tailored guidance — like route optimization for sales or maintenance schedules for manufacturing. The technology explains what the ‘next best action’ is, making it easier to execute improvements on the front line.” Kenvue is not only improving data access but also leveraging consumer insights to enhance transparency around product ingredients and environmental impact, supported by AI enhancements for its marketing tech stack and digital tools. The company has extended the use of these new technologies in areas like Neutrogena's ingredient glossaries and Johnson Baby’s transparency tool. Highlighting the rise of AI-driven decision-making, Tavares notes that “companies are going to be collaborating and deciding on inventory and orders using agents that they increasingly trust through better algorithms. Understanding that world and becoming more predictive in real time is super exciting and important.” Unilever has also leaned heavily on AI innovation to bolster sustainability efforts. By deploying digital twin technology in its factories, the company optimizes manufacturing processes to reduce waste and energy consumption. At its Heppenheim ice cream factory in Germany, the company is using AI to respond to short-term fluctuations in energy costs (depending on when the sun shines and the wind blows), Uijen tells CGT. “By integrating the operation of cooling systems on our warehouses with real-time energy cost data, we have generated cost savings while also balancing our energy demand with grid supply, helping grids transition to renewable energy.” In the packaging space, Materne North America — manufacturer of the GoGo Squeeze brand — found it was struggling to manage multiple RFPS across various smaller categories while relying on spreadsheets. To accelerate progress, Materne took a strategic shift toward procurement price optimization (PPO), which uses AI to analyze market trends and past buying data to improve purchasing. PPO suggests starting price points for negotiations, creating an “anchoring effect” — the idea that the first price set in a negotiation influences both parties, making the final price stay close to it. Extending the use of this purchasing system to packaging resulted in $1 million in cost savings in a single event. This change has enhanced internal controls, made the value chain more resilient, reduced waste, and fostered a company-wide cultural transformation, spotlighting the importance of streamlined processes in interweaving sustainability and business goals.3. Centralize circular value chain practices In sustainability parlance, circularity shifts the focus away from things like carbon reduction and waste management to the entire product lifecycle — from creation to recovery — keeping resources in use and closing the loop. There’s an appealing business imperative behind this practice: According to McKinsey & Company, improved circularity could cut logistics costs for high-value products like electronics by as much as 30%, thanks to savings on storage and distribution. The key challenge lies in messaging and educating stakeholders about the impact of their decisions and which actions truly align with sustainability goals, particularly in areas like manufacturing and ingredient sourcing.“There’s a huge level of inefficiency in understanding the impacts of decisions, particularly in agriculture,” says Wright. “For example, many farmers in developing countries still don’t know that trimming plants the right way can increase productivity, which could be crucial for driving sustainability. With tools like Gen AI, we can communicate these better practices to end consumers in a language they'll understand.” Speaking to CGT last year, Ball Packaging’s director of sustainability Predrag Ozmo discussed how the aluminum-maker is working to mobilize value chains and measure and improve sustainability through collaborative efforts, while also embedding messaging about this plan throughout its business operations. Recycling aluminum uses only 5% of the energy required to produce new aluminum, reducing upstream emissions by 95% and making it a particularly viable candidate for a totally circular ecosystem. “We are very clear about that in every external communication, including our climate plan: industry alignment collaboration and systemic transformation are really essential to achieving our ambitious climate transition plan targets,” Ozmo shares. “Ball is a strong supporter of action-driven value chain mobilization around pioneering commitments to unlock the potential of emerging technologies needed for net zero.”Similarly, Unilever has made sustainability integral to its business strategy, achieving a 74% reduction in operational greenhouse gas emissions since 2015 by transitioning to renewable electricity and heat. “By the end of 2023, 97.5% of our palm oil, paper and board, tea, soy, and cocoa order volumes were independently verified as deforestation-free. This result comes from putting in place vital infrastructure and monitoring and verification systems, and working with suppliers and smallholder farmers to enhance supply chain transparency to protect nature and livelihoods,” said Uijen. 4. Learn from consumers and prepare for global collaboration With mounting pressure to move beyond the talk and deliver results, this is not a journey businesses can make alone. Collaboration and broader standardization are set to become ever more critical, and global regulators steer toward direct action on issues like plastic waste, greenhouse gasses, and health and nutrition. “While Europe is a kind of early-stage indicator, we’re seeing that direction of travel increasingly influences regulations elsewhere. Companies need to think about preparing for this kind of regulation as it becomes more global,” notes Wright. That is to say — companies must get their ducks in a row in order to comply with more stringent, far-reaching regulations on the horizon. Beyond regulatory practices and international laws, consumers themselves are increasingly demanding sustainable options, pushing brands and retailers to collaborate more closely. One such example of this is Kraft Heinz, which partnered with the U.K.’s largest retailer, Tesco on a pilot program addressing the U.K.’s soft plastic recycling challenge. Soft plastics returned by consumers to Tesco stores were repurposed into recyclable Heinz beans snap pots containing 39% recycled materials — a move projected to recycle 22 tons of plastic. In a conversation with CGT last year, Kraft Heinz’s associate director of packaging ESG and technology Linda Roman explained that the impetus for many of these innovations sits squarely with consumer preferences. “Research has shown that consumers want to shop at stores that prioritize sustainability, so we've been working closely with our retail partners to ensure that they can bring the sustainable options onto their store shelves to meet consumer needs,” Roman explained.By sharing the burden, brands can work with retailers to better deliver on sustainability goals. Driving Sustainability Efficiencies Through Data and CollaborationBy refining and improving data standards, CPGs can reduce reporting complexities and provide more accurate metrics, ensuring transparency and accountability across the value chain. Embracing emerging technologies like AI will enhance decision-making processes and, as CPGs continue to focus on circular value chain practices, companies should be sure to collaborate wherever possible — both internally and with retail partners. With consumer demand for greener products rising, CPGs must not only meet regulatory standards but also stay ahead of evolving market expectations.

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