Unilever, Carrots, SMEs, Finance & Resolutions

1. Messaging and meaning

Where best to locate a corporate sustainability team in a business? A perennial question that 联合利华 ’s reported decision to merge its sustainability and corporate communications and affairs teams has put back in the spotlight.??

Ten years ago, most sustainability teams sat in the corporate communications function. Sustainability was a largely separate endeavour from the core business, and the emphasis was on explaining corporate efforts to the outside world. But times have changed.??

Last year, just 19% of respondents to our? Sustainability Leaders Panel said they were part of the communications function, with almost twice that number saying sustainability was a standalone function or fully integrated into the business. As sustainability matures, becomes more embedded in business strategy and as reporting on sustainability becomes more regulated and more closely integrated into financial reporting, it’s less common to find sustainability professionals working in communications. That’s not to say comms isn’t a crucial part of the process – over 90% of respondents said they worked closely with their communications colleagues, who have a crucial role to play in explaining a company’s sustainability efforts to stakeholders. As the culture wars heat up and some companies begin to assess what they say about sustainability and how they say it, having skilled professionals navigate this landscape effectively makes a lot of sense.??

But separating the functions also makes sense. The goal of corporate communications and corporate affairs is to serve the best interests of the company. A legitimate aim but one that is not always well aligned with sustainability which – at best – should be balancing the needs of the business and society. And while in the long term, the two should align, putting the two together risks undermining a business’s ability day to day to make tough decisions and plays down the importance of innovation, strategy and procurement in sustainability. Locating it elsewhere connects it more closely to these core business functions where there is a possibility to create real change.??

So Unilever’s choice is an interesting one, particularly as it pulls back from the ambitious goals set by its previous leadership team in favour of “more focused” sustainability goals.? Time will tell if this is a cunning masterstroke designed to raise the profile of sustainability or a cost-saving measure which will see sustainability deprioritised within Unilever’s strategy.

2. We need more carrots

Late last year, major fossil fuel and industrial companies including Shell, BP and Tata Steel signed a letter urging the EU to make less carbon intensive products more attractive to the consumer, demanding tougher mandates on high polluting products, subsidies for green technologies, and robust carbon pricing to make low-carbon alternatives competitive.?

Their argument? Consumer demand is currently not strong enough for markets to solve the climate crisis alone. Without government intervention, green technologies—from sustainable aviation fuels to renewable energy—won’t scale fast enough.??

Are they passing the buck to policymakers and consumers to delay immediate corrective action or are they making a valid point about the need for systemic change? Whatever your views on the first, they aren’t wrong on the second point. Lower carbon alternatives still often come at a higher price point, creating a financial decision many are unable or not willing to make.??

But getting the policy balance right is no easy feat. The UK’s ‘net zero flight tax’ is already on the chopping block, having just come into effect. It’s designed to incentivise airlines to adopt sustainable aviation fuels by penalising high-emission flights; however, initial assessments from ministers suggest in a worst-case scenario it could increase the cost of flying by more than 20%. Whilst defenders of the tax suggest the actual cost increase would be closer to ￡4 per ticket, the resulting political backlash means the mandate may never actually leave the runway.?

If this teaches us anything, it’s that government action can’t be all stick. Consumers desperately need the carrot. Encouragingly, the EU commission states it is currently investigating subsidising the cost difference between prices for regular commodities and their lower carbon alternatives, in exchange for commitments from companies to cut emissions. What that looks like is not clear. But it is a very large piece of the puzzle, which is currently missing.

3. SMEs’ new disclosure sidekick

EFRAG has unveiled the Voluntary Sustainability Standard for non-listed SMEs (VSME) – the voluntary counterpart to the ESRS. In a paradoxical twist, while critics claim EU reporting requirements threaten competitiveness, the VSME aims to boost it by offering smaller businesses a lifeline to sustainability performance and disclosure.?

Unlike the mandatory standards, this voluntary version removes the requirement for a double materiality assessment and focuses on a predefined list of topics, and centres on disclosures related to actions, commitments, and performance. This simplified approach acknowledges SMEs generally have smaller negative impacts than larger companies and fewer resources to dedicate to implementing the full ESRS requirements.?

SMEs can start with the Basic Module, focusing on environmental KPIs, workforce data, and anti-corruption measures, or go deeper with the Comprehensive Module, which includes governance, climate targets, human rights, and DEI disclosures. Both options are backed by detailed guidance, with practical tools like templates and calculators in development to ensure a smooth adoption process.?

With over 50,000 companies in scope for CSRD—including many large businesses—adopting the voluntary standard makes strategic sense for SMEs and even for non-EU companies looking to enhance their reporting. Many larger companies will require sustainability-related information from their SME partners to meet their own obligations. Aligning with the VSME helps SMEs stay competitive and relevant, meet increasing partner demands, and access more sustainable financing.?

The VSME is a practical way to tackle evolving sustainability demands.? If you’re interested, EFRAG has prepared a highlights webinar, as well as deep dives into the Basic Module and the Comprehensive Module.?? Whether you’re just getting started or staying ahead of the curve, we’re here to help you make it work for your business.

4. Learn to earn

Considering how to help your child navigate their financial future? Look no further than Finland, a frontrunner in financial literacy. Aiming to achieve the best financial literacy globally by 2030, Finland has introduced Yrityskyl?—a national network of business villages designed to empower young minds with real-world money skills.?

85% of Finnish students in 6th and 9th grade are participating in the 10-lesson programme where they learn how businesses, economies, and societies function. They even tackle life skills like job applications. The grand finale? A day spent in the bustling business village where students wear work uniforms, earn money, buy food and drinks, and grapple with financial curveballs—like spending too much and needing to make emergency cash.?

Finland’s National Literacy Strategy plays a key role in this work, supported by the National Legal Services Authority in partnership with the Bank of Finland along with a network of network of financial literacy actors including businesses. The Yrityskyl? programme itself is spearheaded by Junior Achievement Finland, a non-profit dedicated to ensuring children and young people have the skills they need to manage their daily lives. Through hands-on, gamified learning their approach blends practical experiences with theory to make financial education stick.?

Early exposure to concepts like earning, spending, and saving helps children develop essential skills to manage their money and make informed decisions as they grow. By starting these lessons early, we can give the next generation the confidence and knowledge they need to navigate their financial futures with greater ease and security.

5. New year, green you

Come January, gyms fill up, fridges get stocked with greens, and we all promise to become our best selves. But what if this year, your resolutions benefit both you and the world around you? Well, here are our three recommendations to make this happen.????

First is to eat consciously. Food waste isn’t just a climate issue – it’s also a social one, with the potential to help food insecurity as well as cut emissions. Services like Oddbox deliver “rescued” produce from farms straight to your door, while apps like Olio make it easy to share surplus food with neighbours. For larger-scale donations, organisations like Fareshare work to redistribute excess food from businesses to those in need. To make the most of the food you already have, try SuperCook to turn leftovers into recipes and the Appleblu refill kit to keep fresh produce fresher longer.??

Second is to take your fitness goals outdoors. Outdoor gyms are a low-impact, energy-efficient alternative to traditional indoor ones, and nature walks are a great way to refresh your mind while burning calories. Explore scenic trails around London or venture further afield to one of the UK’s stunning national paths for a weekend escape.??

Third, adopt a sustainability mindset for your travel plans this year. With holiday dreams on the horizon, consider greener options like taking the train instead of flying, which can reduce emissions by up to 90% on some routes. If your employer offers ClimatePerks, take advantage of exclusive discounts and trip-planning tools to make low-carbon travel easy. If they don’t yet, encourage them to sign up!?

There has never been a better time to start living more sustainably. Begin small, stay consistent, and make 2025 the year of mindful living.