Exploring new business models

We are determined to reduce our use of single-use plastics by investing in alternative models of consumption which focus on refills and reusable packaging. Our internal framework recognises the importance of recycling but we know it’s not the only solution. In some cases, “no plastic” may be the best solution – and this is one of the most exciting parts of our strategy for plastic.

As a business we have already conducted a number of dispensing trials with our retail partners, however, we are still working to overcome some of the key barriers linked to consumer behaviour, commercial viability and scale. In France for example, we are piloting a laundry detergent dispensing machine in supermarkets for our Skip and Persil laundry brands to eliminate single-use plastic.

We're exploring alternative materials such as aluminium, paper and glass. When we substitute one material for another, we want to minimise any unintended consequences, so we conduct lifecycle assessments to work out the environmental impact of our choices. We're looking at new packaging formats and alternative models of consumption, such as introducing cardboard packaging for deodorant sticks.Brewing up breakthroughs with biodegradable tea bags,As we continue to look for ways to achieve our target, we have found a way to use a plant-based material for tea bags derived from renewable sources such as corn starch, which can be industrially composted.

Our Saga brand in Poland, Red Rose in Canada, and SariMelati and SariMurni teas in Indonesia have adapted their manufacturing process to use plant-based materials.Bold action across the value chain ,New business models and innovations, using circular economy principles, are transforming traditional take-make-dispose thinking with incredible speed.

We want to be part of the circular economy revolution and are committed to pioneering breakthroughs and new ways of doing business.

In October 2018, for example, we signed a collaboration agreement with global resource management business Veolia to work on emerging technologies that will help create a circular economy on plastics. Starting in India and Indonesia, the three-year agreement focuses on ways to develop and scale up collection and reprocessing infrastructure so that recycled content is channelled back into the value chain. Together, we will explore ways to build recycling capacity and develop new processes and business models.

This is just one example, but many more innovations are needed if we are to move towards a more circular economy – and in doing so, unlock the economic prize for business.A call to action.At Davos 2018, Unilever announced four key actions the consumer goods industry should take to create the systemic change required and accelerate the transition to a circular economy. We called:

For companies to invest in innovation towards new delivery models that promote reuse.

For more companies to commit to 100% reusable, recyclable or compostable packaging by 2025 and set stretching targets for using post-consumer recycled content.

For a Global Plastics Protocol (refer to Global Commitment below) setting commonly agreed definitions and industry standards on what materials are put into the marketplace, to ensure our packaging is compatible with existing and cost-effective recycling infrastructures.

For companies to engage positively in policy discussions with governments on the need for improvements to waste management infrastructure, including the implementation of Extended Producer Responsibility schemes.