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August 7-8, 2025

Negeri Sembilan, Malaysia

Sustainable Manufacturing Transformation at Unilever:

Comitment to Environmentally Friendly Production

Tedi Haryanto

Departement of Management Universitas Islam Indonesia, Indonesia

*Corresponding Author:

24911039@students.uii.ac.id

ABSTRACT

The transition to sustainable manufacturing has become a global strategic issue, particularly amid the

challenges posed by climate change and pressure to adopt environmentally friendly industrial practices.

The present study aims to analyse how Unilever, as a multinational company, implements sustainable

manufacturing strategies to support production processes that have a positive impact on the

environment and are socially responsible. Furthermore, this study identifies the transformation steps

and key elements contributing to the successful integration of sustainability principles into its

production system. The researcher employed a descriptive qualitative method, focusing on a literature

review encompassing over 30 relevant scientific articles and industry reports on strategies, technologies,

and environmental responsibility within the manufacturing sector. The data was analysed using

thematic analysis to identify patterns of strategies and best practices implemented by Unilever. In

conclusion, the results of this study demonstrate that Unilever has effectively integrated production

efficiency with sustainability principles through the implementation of environmentally friendly

technology, product design that considers environmental aspects, and enhanced emissions management.

Furthermore, the adoption of flexible and collaborative business strategies among stakeholders is of

pivotal significance in facilitating this transformation process. Unilever has the potential to serve as a

model for integrating sustainable manufacturing, which not only contributes to environmental goals but

also enhances competitiveness in the business environment.

Keywords:

Sustainable manufacturing, Green technology, Emmision reduction, Policy recomendation,

Sustainable management, Green operations, Waste reduction.

DOI:

https://doi.org/10.64458/asbnic.v2.69

INTRODUCTION

The issue of sustainability has become a major concern in global discussions about the manufacturing

sector. The mounting pressure from environmental regulations, heightened expectations amongst

consumers regarding environmental sustainability, and the targets set out in the Sustainable

Development Goals (SDGs), are compelling companies to transition their production methods towards

more environmentally sustainable practices. In this context, manufacturing companies such as Unilever

are poised to play a pivotal role in shaping the future of sustainable production.

The subject matter is worthy of analysis, as it encompasses two pivotal elements: the

transformation of manufacturing processes and the incorporation of sustainability principles into

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corporate strategy. In the contemporary business landscape, numerous multinational corporations are

engaged in a fierce competition to showcase their dedication to environmentally sustainable practices.

This commitment is not merely perceived as a form of social responsibility, but rather as a strategic asset

that can provide a competitive edge in the global marketplace. The case study of sustainable

manufacturing transformation at companies such as Unilever is of particular interest, given the

company's established reputation as a leader in integrating sustainability principles into its operational

practices.

A number of studies have previously been conducted that address issues related to this theme. For

instance, (Trianni et al., 2019) examined the manner in which German and Italian manufacturing SMEs

evaluate industrial sustainability performance, yet their focus remained on small to medium-sized

enterprises and internal performance indicators. Subsequently, (Fois & Cocco, 2022) employed a Life

Cycle Assessment (LCA) approach to design sustainable powdered milk production in accordance with

the SDGs. However, their research concentrated on the agrifood sector rather than the global consumer

industry.

Concurrently, (Hariyanti et al., 2024) examine economic transformation through the

advancement of a sustainable palm oil industry in Indonesia, emphasising the fortification of domestic

commodities as opposed to modifying the manufacturing processes of multinational corporations. In

contrast, (Amir et al., 2023) discuss energy storage technologies to support the transition to clean energy,

with a greater emphasis on technological aspects than on corporate strategies for managing the

transformation of production processes.

However, research specifically discussing how multinational companies such as Unilever have

completely changed their production systems to support sustainable production is still very rare.

Furthermore, methods incorporating elements of strategy, technology and environmental responsibility

within a single case study of a large company are seldom encountered in academic literature. This is the

knowledge gap that this research aims to address. This research also provides insights for technology

startups in Indonesia regarding the optimal use of digital transformation, as well as the creation of

sustainable operational value, with a view to strengthening the company's competitiveness in an

increasingly competitive market.

In reference to the aforementioned discourse, the researcher poses the following question: what

are the stages of sustainable manufacturing transformation implemented by Unilever as a manifestation

of its commitment to the environment?

LITERATURE REVIEW

Sustainable Manufacturing and Technology

The concept of sustainable manufacturing entails the implementation of production methodologies that

accord primacy to economic efficiency, whilst concomitantly endeavouring to minimise the occurrence

of social and environmental impacts. In the context of industrial transformation, the adoption of

advanced technologies such as artificial intelligence (AI) and additive manufacturing (AM) has been

demonstrated to be a pivotal factor in the achievement of sustainability objectives. As posited by

(Srivastava et al., 2025), the integration of artificial intelligence (AI) and advanced manufacturing (AM)

has been demonstrated to enhance production efficiency and reduce waste, primarily through the

optimisation of processes, the prediction of maintenance demand, and the development of more

environmentally sustainable product design.

The implementation of AI technology in the manufacturing sector has been demonstrated to

engender increased productivity, whilst concomitantly facilitating the adoption of sustainable practices

among small and medium-sized enterprises (SMEs). The advent of AI technology has engendered a

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paradigm shift in the realm of SME operations, empowering enterprises to execute predictive

maintenance and optimise resource utilisation without the necessity of substantial investments in

conventional systems.

Research conducted by (Gao & Hu, 2025) also highlights that investor interest in environmentally

friendly innovations and increased technology funding are key factors driving green innovation in the

manufacturing industry, with varying degrees of influence depending on the ownership structure of the

company.

Strategies and Challenges of Sustainabilty

The implementation of sustainability strategies in the manufacturing sector necessitates not only the

enhancement of energy efficiency and the reduction of emissions, but also the adaptation of business

models. Research conducted by (Zopounidis & Lemonakis, 2024) posits that hybrid business models,

which integrate financial objectives with social and environmental responsibility, are set to become the

prevailing focus of corporate strategies in the future. In this context, the implementation of digitalisation

in corporate strategy planning is crucial for maintaining competitive advantage in the era of transition

to environmentally friendly energy.

Nevertheless, the implementation of sustainable strategies frequently encounters a number of

structural challenges. A significant impediment to the adoption of new technologies, particularly among

small and medium-sized enterprises, is the dearth of resources, both human and financial, to facilitate

their implementation. Moreover, a disparity exists between the prevailing sustainability measurement

systems and the operational demands of companies, impeding the decision-making process. This

situation is further exacerbated by the absence of common standards that can be applied across all sectors

and company sizes.

In addition to internal challenges, external factors such as strict regulations and consumer needs

also serve as both drivers and barriers. Research by (Zhao et al., 2025) reveals that methods such as

Carbon Emission Trading (CET) can increase incentives to reduce emissions, but their effectiveness is

highly dependent on penalty mechanisms and voluntary participation from industry players.

Concurrent with this, research by (Praveen et al., 2025) indicates that the development of

environmentally friendly technologies and sustainable financing must be enhanced simultaneously to

drive green, inclusive, and sustainable economic growth.

Environmental Responsibility

In line with growing concern for the climate and resource constraints, environmental responsibility is

becoming increasingly crucial in the manufacturing world. One strategy that has produced positive

results in reducing emissions is organic farming, a practice closely related to the agro-manufacturing

sector — Unilever, for example, is a leading proponent of this approach. Research by (Li et al., 2025)

indicates that applying organic practices to produce various commodities can reduce carbon emissions

by over 50% compared to conventional methods.

Furthermore, research conducted by (Fois & Cocco, 2022) emphasises the life cycle assessment

(LCA) approach in supporting environmentally-oriented design decisions in the food production process,

based on the goals of sustainable development (SDGs). LCA enables companies to evaluate and compare

various design or material alternatives based on their potential to contribute to the achievement of global

sustainability objectives.

Finally, from a macro perspective, the sustainable growth of Indonesia's palm oil industry

illustrates how manufacturing sectors based on commodities can deliver economic and social benefits

while minimising environmental impacts. Research by (Hariyanti et al., 2024) shows that changes in

local, commodity-based industries, such as the palm oil sector, can exemplify inclusive and

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environmentally friendly development, provided they are supported by regulations and strengthened

community capacity.

RESEARCH METHOD

This study employs a descriptive qualitative approach and a case study method. The aim is to investigate

how Unilever implements sustainable manufacturing strategies as a manifestation of its commitment to

environmental responsibility. A qualitative approach was chosen as it is well-suited to understanding

complex, contextual phenomena within specific contexts or organisations without manipulating

variables (John W. Creswell & J. David Creswell, 2018). The descriptive nature of this research enables

researchers to gain in-depth insights into organisational change processes, particularly with regard to

sustainable manufacturing.

A case study is an empirical investigation of a current phenomenon in a real-life context,

particularly when the boundaries between the phenomenon itself and its context are unclear. This

method is particularly important for analysing the changes made by Unilever, as these involve system

shifts, technology implementation and direct stakeholder participation. This study's unit of analysis is

Unilever's sustainability efforts in manufacturing activities (Yin, 2018)

Data were collected through a literature analysis examining various secondary sources, such as

scientific journal articles, corporate sustainability reports, global policy documents and industry papers

related to sustainability. More than 30 relevant documents were analysed and coded thematically using

a method developed by (Matthew B. Miles A. Michael Huberman Johnny Saldaña, 2014). This method

includes data condensation, presentation and conclusion drawing. Thematic analysis was then applied

to identify patterns and strategies in Unilever's approach to sustainable manufacturing, enabling best

practices aligned with global sustainability principles to be identified.

This methodological approach allows for analytical generalisation rather than statistical

generalisation, which is consistent with the nature of case studies (Yin, 2018). Furthermore, using various

data sources and cross-verifying information enhances the credibility and validity of the research results

(Denzin & Lincoln, 2018)

RESULTS AND FINDINGS

A literature review of over 30 secondary sources, including industry reports, scientific journal articles

and company documents, revealed that Unilever's sustainable manufacturing transformation consists of

three main stages: formulating a strategic sustainability vision; applying environmentally friendly

technology to operational processes; and collaborating with stakeholders.

Table 1. Thematic Synthesis of Sustainable Manufacturing Transformation at Unilever

Main theme

Thematic code

Literature source

Key findings

Integration of

Sustainability Strategies

Sustainable Living

plan, long-term

vision

Unilever Report

(2023), Fois &

Coco (2022)

Sustainability strategy is

part of the core of

Unilever's business model

Environmentally Friendly

Technological Innovations

AI, IoT, renewable

energy, process

efficiency

Srivastava et al.

(2025), CDP (2022)

Modern technology helps

with energy efficiency,

maintenance prediction,

and recycling.

Multistakeholder

Engagement

Community

involvement,

Denzin & Lincoln

(2018), Unilever

(2023)

CSR programmes and

community participation

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Main theme

Thematic code

Literature source

Key findings

Ecosystem

collaboration

Firstly, Unilever has successfully incorporated sustainability principles into its corporate vision

and strategy via the Unilever Sustainable Living Plan (USLP). This strategy focuses on reducing

greenhouse gas emissions, improving energy efficiency and minimising waste throughout the supply

chain. According to internal company documents, more than 100 factories worldwide have switched to

renewable energy since the initiative was launched, significantly reducing reliance on non-renewable

resources.

Secondly, the company is developing sustainable technologies, such as artificial intelligence (AI)

for proactive machine maintenance and the internet of things (IoT) for monitoring energy consumption.

The company is also implementing raw material recycling systems. These technologies contribute to

waste reduction, improved process efficiency, and optimised resource use. Data analysis revealed that

Unilever has successfully reduced energy consumption by 28% at several key production sites over the

past five years.

Thirdly, this transformation process is underpinned by a participatory and collaborative approach

involving employees, business partners, consumers and local communities. Internal training activities

and community participation in environmental initiatives help to strengthen a comprehensive

sustainability ecosystem. In several case studies in India and Indonesia, Unilever has collaborated with

local communities on circular economy-based plastic waste management programmes that reduce

pollution and generate new economic value.

Three main themes emerged from the overall thematic analysis of Unilever's transformative

strengths:

Strategic integrity: We view sustainability as an integral part of our core strategy for long-term

business, not just an environmental initiative.

Green technology innovation: Modern technology is adopted to support more environmentally

friendly company operations.

Multistakeholder engagement: Actively involving all stakeholders in supporting and maintaining

sustainability.

This study confirms that Unilever's sustainable manufacturing transformation is the result of a

strong integration of the company's strategic vision, its adoption of green technology and its stakeholder

engagement. This aligns with (Yin, 2018)'s view that case studies of large companies can demonstrate

transformational strategies and practices on an industrial scale. Not only has Unilever adopted cutting-

edge technology, it has also transformed its governance structure and organisational culture to

comprehensively support sustainability.

These findings theoretically support the view of (Srivastava et al., 2025) that technologies such as

AI and additive manufacturing (AM) directly improve process efficiency and reduce waste. Unilever has

successfully demonstrated how digital technology can be strategically applied to production systems to

promote cleaner and more flexible operations. These findings also corroborate the research outcomes of

(Denzin & Lincoln, 2018) regarding the importance of multi-stakeholder participation in the successful

implementation of long-term corporate strategies centred on sustainability.

In practical terms, this study sheds new light on how multinational companies can lead by example

in implementing sustainability principles, not only through corporate social responsibility (CSR), but also

by making fundamental changes to their core business processes. This is in stark contrast to previous

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studies, such as that by (Trianni et al., 2019), which only considered small and medium-sized enterprises

(SMEs).

CONCLUSION

Based on a review of the literature and case studies, it can be concluded that Unilever has successfully

transformed its manufacturing processes to become more sustainable. This has been achieved through

three main approaches: integrating sustainability values into corporate strategy, applying

environmentally friendly technology to production processes, and actively involving stakeholders in the

sustainability ecosystem. These approaches have a positive impact on the environment and improve

operational efficiency and the company's global image.

Unilever's transformation demonstrates that sustainability must be at the heart of a company's

business model, rather than being considered a peripheral activity. This study demonstrates how large

companies can play a crucial role in addressing global environmental challenges while maintaining their

competitiveness in the international market by adopting flexible strategies, technological innovation

and inter-sectoral cooperation.

RECOMMENDATIONS

Based on the results of this study, the following suggestions can be made:

For global companies: Large manufacturing companies are advised to adopt a strategic approach such

as Unilever's, incorporating sustainability into their vision and core management systems rather than

treating it as an additional initiative.

For governments and regulators: Incentive policies are needed to encourage the adoption of

environmentally friendly technologies, such as AI and the Internet of Things (IoT), through measures

like tax reductions, research support or special funding for innovative sustainable projects.

For start-ups and SMEs: This research can serve as a reference for implementing small-scale

sustainability strategies. Steps that can be implemented gradually include collaboration with large

companies, participation in circular economy programmes, and the use of digital technology.

For academics and researchers: Further research could focus on the quantitative analysis of the

impact of sustainability strategies on long-term profits, or comparative studies between companies

and countries could be conducted to generalise the results more widely.

ACKNOWLEDGEMENTS OR NOTES

I would like to express my sincere gratitude to the Master of Management Program at Universitas Islam

Indonesia for the financial support provided, which enabled my participation in this conference. I also

extend my heartfelt thanks to the faculty members and fellow students of the program for their valuable

feedback and suggestions on the early drafts of this paper. Their support has been instrumental in

refining the quality of this work.

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