Home

Unilever embraces sustainability-linked supplier finance and WBCSD aligned governance model

Published: Sep 2026
Adam Smith Awards 2026

Best Sustainable Treasury Solution

Overall Winner

Unilever PLC

Photo of Bas Van Niel, Citi, Simon Duchatelet, Charlotte Ward and Subhodeep Chakraborty, Unilever PLC.

Subhodeep Chakraborty

Director, Unilever Group Treasury

Charlotte Ward

Director, Unilever Climate & Nature Fund
Unilever logo

Unilever is one of the world’s leading suppliers of beauty and wellbeing, personal care, home care and food products, with sales in over 190 countries and products used by 3.7 billion people every day.

in partnership with

Citi logo

The challenge

Unilever launched its sustainability-linked supply chain finance (SCF) journey with a supply base known to have different levels of climate maturity, to provide support to its suppliers wherever they were on a climate action roadmap. As of 2025, the company’s growing Supplier Climate Programme now includes almost 200 partners and 40% of its raw material Scope 3 emissions. While some of these suppliers have already calculated their full product carbon footprints, others are beginning to build emissions baselines. The intention is to accelerate decarbonisation across the group, with access to conditional finance being one of the important unlocks as suppliers needed affordable, predictable financing to progress through the asks of the Supplier Climate Programme.

A further challenge was Unilever’s need for a globally consistent, externally recognised sustainability governance standard to obtain accurate, auditable supplier emissions data at product level granularity.

The solution

Unilever and Citi co-designed a sustainability-linked SCF initiative in multiple markets so that supplier financing rates directly correlate to their climate action progress under Unilever KPIs. Requiring suppliers to calculate their product carbon footprints using World Business Council for Sustainable Development (WBCSD)’s Partnership for Carbon Transparency (PACT) standard helped Unilever to obtain verified data needed to reward and incentivise measurable improvements.

Key elements of the solution:

  • Integration and operationalising WBCSD’s PACT methodology.

  • Sustainability-linked pricing structure.

  • Supplier Climate Programme integration.

  • Scalable funding capacity.

  • Existing enterprise resource planning connectivity.

  • Rapid digital supplier onboarding.

Best practice and innovation

The judges commended Unilever for an advanced sustainable SCF initiative with an innovative tiered pricing model for suppliers at different maturity stages.It sets a best practice example for sustainability‑linked financing, through a combination of disclosure granularity, governance excellence, data integrity and incentive engineering.

Unilever’s role in collaborating on the WBCSD-PACT methodology, their triple data verification, and use of external audit provide exceptional sustainability data integrity. It is a rare example of strategic and forward-thinking innovation in the design of global SCF programmes, showcasing sophisticated metrics that advance the market standard.

Key benefits

  • Process efficiencies.

  • Future-proofed solution.

  • Improved key performance indicators (KPIs) or metrics.

  • Improved visibility, increased automation.

  • Increased system connectivity.

  • Manual intervention reduced.

  • Quality accreditation achieved.

The supplier experience

This work also transforms how key Unilever suppliers experience sustainability financing – turning climate ambition into a practical, financially supported pathway for progress. No matter their level of climate maturity, they are incentivised to keep moving forward faster by being financially rewarded for delivering on Unilever KPIs.

The development of the WBCSD methodology and Unilever’s triple verification process creates trust among suppliers that sustainability assessments are consistent, transparent and fair – an essential element of supplier engagement and long-term behavioural change. It also allows other companies across industries to benefit from this framework.

Mid-sized manufacturing partners – often the most financially constrained – now access competitively priced liquidity through Citi’s streamlined onboarding, enabling them to upgrade equipment, reduce energy consumption and build resilience against cost volatility.

The initiative can also help suppliers to understand how their business practices may affect the communities in which they operate, potentially incentivising them to invest in practices that could improve their disclosed metrics, which could include:

  • Cleaner production processes.

  • Reduced energy usage.

  • More efficient material consumption.

  • Building a global blueprint.

Unilever aims to scale this finance model for key suppliers based in a number of markets over 2026 and beyond. The company is confident it will accelerate the reduction of its Scope 3 emissions and create a more resilient and future‑ready supply chain serving millions of consumers.

Bas Van Niel

Benelux Trade & Working Capital Sales, Services, Citi

Citi congratulates Unilever for winning the Overall Winner in the Best Sustainable Treasury Solution at the Adam Smith Awards 2026. This prestigious recognition underscores Unilever’s pioneering vision in integrating sustainability with financial strategy.

Our collaboration with Unilever on the US sustainability-linked supply chain finance programme exemplifies how strategic collaboration can drive measurable climate action. By linking supplier financing rates to sustainability performance, Unilever has set a new industry benchmark, empowering suppliers and fostering responsible global supply chains.

We are honoured to be Unilever’s trusted adviser, supporting their commitment to a more resilient and sustainable future. This achievement highlights the transformative power of innovative treasury solutions.

in partnership with

Citi logo
Adam Smith Awards sail

The Adam Smith Awards are the industry benchmark for best practice and innovation in corporate treasury. The 2026 awards attracted 635 nominations. To find out more please visit treasurytoday.com/adam-smith-awards

Join our global community

Creating a free account helps us to understand our community better, and tailor our content and events to suit your needs. You can unsubscribe at any time.

Already have an account? Sign in

Search for your company; if not found, select 'Other' and enter it manually below
  • • At least 8 characters
  • • At least 1 uppercase letter (A-Z)
  • • At least 1 lowercase letter (a-z)
  • • At least 1 digit (0-9)