#13 The Game-Changing Case Study Hiding in your Cupboard

In 2010, one of the world’s biggest companies made a bold move that would shake the foundations of corporate strategy.

It stunned the markets by placing sustainability and social impact above short-term financial targets, and its CEO even abolished quarterly financial reporting.

Investors and industry analysts were skeptical, questioning whether such a drastic shift in focus could succeed in a market dominated by shareholder expectations for short-term returns.

But the results were extraordinary.

This is the story of Unilever's Sustainable Living Plan.

It not only delivered massive social and environmental impact but also demonstrated that a purpose-led business model can drive commercial success.

4 min read

A Purpose-Driven Strategy

Paul Polman was ahead of his time.

He believed that sustainable business practices would lead to superior long-term performance.

Appointed CEO in 2009, he set out to decouple Unilever's growth from its environmental footprint, while increasing social impact.

The Sustainable Living Plan (SLP), announced the following year, was the manifestation of this vision.

Aligning with Unilever's purpose of "making sustainable living commonplace", the plan laid out three audacious goals to be achieved by 2020, underpinned by 70 specific, time-bound targets:

1. Improve Health and Wellbeing: Help more than 1 billion people improve their health and hygiene.

2. Reduce Environmental Impact: Halve the environmental footprint of Unilever’s products across their lifecycle.

3. Enhance Livelihoods: Improve the livelihoods of millions by supporting sustainable farming and empowering workers.

At the time, these goals were written off by many in the industry as overly ambitious, even unachievable.

Critics doubted whether a company of Unilever’s size could deliver on such comprehensive, purpose-driven targets while remaining competitive in the global market.

However, the SLP was not just a sustainability initiative — it became a strategic framework that guided all decision-making across the business.

The Eisenhower ESG Matrix in Action

In last week’s edition, I introduced my adaptation of the Eisenhower Matrix — a prioritisation tool traditionally based on importance and urgency.

However, I believe “importance” is often too narrowly defined by short-term financial metrics. By instead using “alignment with purpose”, companies can make more effective, long-term decisions, especially regarding their ESG strategies.

As demonstrated in this case study, Unilever applied a similar approach, where purpose became the driving force behind its decisions, balanced against the urgency of external pressures such as regulations and stakeholder expectations.

This shift allowed Unilever to break free from the short-term financial metrics that dominate many businesses and make the key decisions required to deliver the SLP.

Focus on High-Impact: Dove and Ben & Jerry’s

Two of Unilever’s most iconic purpose-driven brands, Dove and Ben & Jerry’s, embodied the “Focus” quadrant of the adapted ESG Matrix. These brands were deeply aligned with Unilever’s purpose and represented urgent societal needs, making them high-priority initiatives.

Dove’s Campaign for Real Beauty

Dove’s Campaign for Real Beauty focused on improving women’s self-esteem and challenging harmful societal norms. By 2020, Dove’s Self-Esteem Project had helped over 35 million people, and the brand had seen its revenues grow substantially. Dove’s alignment with both Unilever’s purpose and the pressing social need for body positivity made it a high-priority initiative that drove both social impact and financial returns.

Ben & Jerry’s Social Activism

Ben & Jerry’s, long known for its social advocacy, further deepened its commitment under Unilever’s SLP. The brand took bold stances on issues such as climate change and racial justice, not only advancing Unilever’s sustainability agenda but also positioning itself as a leading voice in social responsibility. Its sales growth outpaced many of Unilever’s other brands, validating that purpose-driven initiatives can be both impactful and profitable.

Unilever reported that its purpose-led brands grew 69% faster than the rest of its portfolio by the end of the SLP period, further validating Polman’s belief that aligning purpose with impact leads to stronger business outcomes.

Mitigate Risk: Detergent Reformulation

Not every initiative Unilever undertook was as closely aligned with its purpose as Dove or Ben & Jerry’s.

Reformulating its detergents and cleaning products to reduce environmental impact was primarily driven by regulatory requirements, falling into the “Mitigate” quadrant of the matrix.

While this wasn’t a core marketing focus, it was crucial to reduce chemical usage and improve sustainability. This initiative aligned with Unilever’s long-term vision of sustainable living, while also mitigating legal and environmental risks associated with stricter regulations.

Eliminate Non-Core: The Margarine and Spreads Divestment

In 2017, Unilever made a decisive move to sell off its margarine and spreads business, including brands like Flora and I Can't Believe It's Not Butter, to private equity firm KKR for $8 billion.

While the products were still profitable, they conflicted with Unilever’s purpose of promoting healthy and sustainable living due to their use of palm oil and reliance on processed ingredients.

By divesting this business (which represented 7% of revenue), Unilever made a clear statement that short-term financial importance would not outweigh long-term alignment with its purpose.

This decision exemplified the concept of using "alignment with purpose" as a key factor in decision making, demonstrating that the company was willing to forgo short-term financial benefits in favour of its long-term sustainability goals.

What Did Unilever Achieve by 2020?

Although Unilever set audacious goals in 2010, it made significant progress during the 10-year term of the SLP:

1. Improve Health and Wellbeing: Unilever exceeded its target, reaching 1.3 billion people through its health and hygiene programs.

2. Reduce Environmental Impact: The company reduced its environmental footprint by 32%, although it fell short of halving it.

3. Enhance Livelihoods: Unilever improved the livelihoods of millions, including 2.6m women, 1.8m small-scale retailers and 0.8m smallholder farmers.

Although Unilever didn’t achieve every target, the SLP became a benchmark for corporate sustainability.

By 2020, Unilever’s share price had doubled, with its purpose-driven brands accounting for 75% of its growth, outperforming the broader market.

The SLP showed that aligning strategic decisions with purpose and urgency, as seen in the Eisenhower ESG Matrix, can create value for both society and shareholders.

And it demonstrates that purpose-led strategies can drive meaningful impact while delivering long-term financial success.

The journey towards a better way of doing business

We are on the cusp of a new paradigm of responsible business, and helping impactful companies pair purpose with profit will accelerate the shift.

I believe this holds the key to solving many of our greatest challenges and inspiring positive change throughout society.

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