Unilever CEO: Harmonizing the global policy environment in the lead-up to INC-5 

07 May 2024 --- Following the recent close of the penultimate negotiation round for a UN global plastics treaty (INC-4) in Canada, Unilever CEO Hein Schumacher says national rules will not suffice to unite the world’s current “fragmented policy environment,” which is forcing major companies to pull back from their pollution commitments in order to stay competitive.

Schumacher’s statement comes shortly after the corporation announced it is axing a number of its sustainability pledges — mainly surrounding plastic — to make its ambitions more realistic. 

While some environmentalists criticized the move, highlighting Unilever’s consistent and prevalent role in producing the world’s most polluting plastic packaging, others commended the public honesty and agreed that such moves are inevitable given the need to remain competitive. Without mandatory policies, legislators cannot expect companies to voluntarily sacrifice profits to reduce their environmental footprints. 

“I felt it necessary for governments to hear directly why a treaty with globally binding rules — including rules on upstream policy interventions — is what business needs,” says Schumacher. “Unilever and the Business Coalition are calling for global rules because voluntary initiatives alone will not solve the crisis. At Unilever, we know that for us to deliver on our plastic packaging commitments, we need all actors to pull in the same direction.”

The Business Coalition for a Global Plastics Treaty is a group of over 200 organizations from across the plastic value chain advocating for a legally binding global treaty, as opposed to a treaty giving individual nations the power to set their own standards. 

Hein Schumacher speaking at the INC-4 in Ottawa, Canada.

Harmonizing the policy landscape 
To achieve a binding global agreement, governments must put in place policies that “level the playing field,” Schumacher says. 

“Business responds to regulatory certainty, but the reality is we are facing a hugely fragmented policy environment for packaging from country to country. A treaty can harmonize this landscape, helping to simplify our supply chains, scale existing solutions and spur further innovation.”

Schumacher asserts there is reason to be positive ahead of the final negotiation rounds set for November in Busan, South Korea. 

“The Business Coalition’s membership continues to grow, illustrating the unprecedented alignment across the plastics value chain on the need for globally binding rules to be at the core of the treaty,” he says. 

“Promisingly, the treaty text is being streamlined. And, vitally, measures across the full life-cycle of plastic remain. The Business Coalition’s priority areas are included — restrictions and phase-outs, product design and extended producer responsibility. Agreeing global rules in these areas is not only achievable, it will also accelerate the voluntary work already being done by the industry.”

Intersessional work 
Schumacher also says the mandate for intersessional work between now and November is also essential. 

“This will allow for much-needed technical discussions, improving the chances of text alignment ahead of INC-5. The Business Coalition is ready to support the intersessional process, bringing the lessons learned from voluntary initiatives such as the Global Commitment led by the Ellen MacArthur Foundation in collaboration with the United Nations Environment Programme.” 

Plastic reduction stipulations are crucial to an effective treaty, he continues asserting this is “the quickest way to cut plastic pollution.” 

However, reduction policies on virgin plastic production remain unclear. The same is also true for reuse and refill models. “I was encouraged to see growing momentum behind calls for reduction policies, including the proposal from Peru and Rwanda for intersessional work in this area — something we support. With just a few months to go, this crucial element still does not have a clear path forward.”

“We believe governments should prioritize discussions on upstream measures such as phasing out problematic and avoidable plastic products in a globally coordinated way and harmonizing design criteria for plastic packaging.”

“While these will be the more difficult conversations to have, global rules in these areas will provide business with the certainty needed to scale existing solutions, spark innovation and mobilize investment,” he concludes. “Business has shown it can scale solutions, but to go much faster and further, we need mandatory global rules.”

By Louis Gore-Langton