Government joins forces with Unilever and small businesses to create sustainable supply chains

Green supply chain news – by Thomas McMullan
23rd September 2014
The UK Government is joining forces with consumer goods giant Unilever to develop sustainable supply chains in third world countries at the same time as pledging millions of pounds of investment to help smallholders in developing countries tackle deforestation and manage scarce resources.
Speaking at the start of the UN Climate Summit in New York, yesterday, International Development Secretary, Justine Greening, said the UK Government would work with Unilever to “help millions of the world’s poorest people find jobs, improve water and sanitation and, ultimately, end dependency on aid”. At the same time, she announced the UK Government will invest £144 million into two major anti-deforestation initiatives – one to encourage partnerships between businesses and local communities to improve forest management and the other to support an EU crackdown on the illegal timber trade within developing countries.

Sustainable supply chains
“There is no point in building a health clinic for poor people in Bangladesh if it will get washed away by the next floods,” said Greening. “Investing in the better management of natural resources and putting a stop to deforestation is the smart thing to do. British businesses are already leading the way in setting up long-term sustainable supply chains. Our assistance will help companies, communities, smallholders and governments work together to reduce deforestation and increase crop yields,” Greening told the Forest and Climate Challenge conference at the United Nations General Assembly.

Public-private partnerships
The £114 million pledge will be split between two programmes; £60 million will be dedicated to the Investments in Forests and Sustainable Land Use initiative, which will support 10-15 “major” public-private partnerships to work with companies committed to removing deforestation from their supply chain, helping smallholder farmers to produce sustainable palm oil and timber.

Illegal timber trade
The remaining £85 million will go to the Forest Governance, Markets and Climate programme, which will support an EU crackdown on the illegal timber trade within developing countries where, according to a statement released by the Department for International Development (DFID), “weak governance allows illegal practice to flourish”.


Research & innovation
In what is being described as the first partnership of its kind, DFID and Unilever are each pledging £5 million to a research innovative ways to deliver affordable sanitation and safe drinking water.

The DFID has stated that the partnership will also aim to use social business models to improve health, hygiene and livelihoods for 100 million people by 2025.

“British businesses have the potential to make an enormous contribution to the fight against extreme poverty around the world,” said Greening. “This is not just good for the developing world, it is good for Britain. The frontier economies we will be working to improve are ultimately Britain’s future trading partners.”

Sustainable Living Plan
The partnership is part of Unilever’s Sustainable Living Plan (USLP), in which the company aims to double the size of its business whilst reducing its environmental footprint.

“It’s only through partnerships that we can achieve real scale,” said Unilever ceo Paul Polman. “By working collaboratively with our suppliers, NGOs and governments, we can make the biggest difference and go well beyond what’s possible in our own operations alone.”


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DFID and Unilever are each pledging £5m in R&D to deliver affordable sanitation and safe drinking water