Deodorant emissions raise concern for Unilever

Unilever has, over the past decade, earned a reputation for obsessing about the environmental, social and governance (ESG) aspects of its business. But in 2022 the company saw a 2% increase in greenhouse gas emissions tied to its net-zero goals, thanks to higher raw material costs and increased use of products such as deodorant and hairspray.

In 2022, Unilever reported a 13% decrease in scope 1 and 2 emissions, or those derived from its own activity and from purchased energy.

For scope 3 emissions, which come from the company’s value chain, Unilever saw reductions in emissions from packaging materials, logistics and the use of more efficient freezers for ice cream.

But those improvements were offset by a 15% increase in emissions from “direct consumer use” of hydrofluorocarbon propellants, a category that includes hairsprays, body sprays and deodorants. It was led by growth in the US.

Unilever’s 2022 financial performance backs up the idea that customers are enjoying a post-pandemic return to toiletries. Boosted in part by higher pricing, the company saw a 7.8% increase in 2022 sales from its beauty and wellness division, a category that includes skin and hair products.

Unilever also saw a 7.9% increase in its personal care division, where reduced demand for skin cleansing products was offset by higher demand for deodorant.

Unilever CEO Alan Jope, like his predecessor, Paul Polman, has been focused on the company’s environmental footprint.

The maker of Hellmann’s mayonnaise and Axe body spray aims to reach net zero in its operations by 2030 and across its value chain by 2039. Since 2010, the company says it has reduced the greenhouse gas effects of its products across their life cycle by 19%.

Still, some Unilever shareholders have called for a greater focus on financial performance. Shares have risen just 2% during Jope’s tenure, which started in

January 2019. In July, he will be succeeded as CEO by Hein Schumacher, who currently runs dairy co-operative Royal FrieslandCampina.

For consumer conglomerates like Unilever, emissions from raw materials are proving a challenge in wider net-zero goals, as reducing them requires working with thousands of different suppliers. Almost 60% of emissions in 2022 included in Unilever’s net-zero target came from raw materials, where emissions rose 4%.

Unilever is also working towards using 25% recycled plastic in its packaging by 2025, and halving food waste in its operations over 2019, also by 2025. In 2022, the company saw a 17% reduction in food waste over 2019 levels.