In A 'VUCA' World, Unilever Bets On 'Sustainable Living' As A Transformative Business Model (Forbes, Avi Dan)

In 2010 Unilever committed to doubling the size of its business in 10 years while reducing the environmental footprint and increasing its social impact. They have embedded a new business model called Sustainable Living through a new marketing strategy called ‘Crafting Brands for Life,’ which puts people first, builds brand love, and unlocks the magic of brands.


Keith Weed is Chief Marketing and Communication Officer of Unilever, and a director of the company. Prior to his present post he served as Executive Vice President of Home Care, Oral Care, and Water. I spoke to Mr. Weed following his keynote at last week’s ANA’s annual conference in Orlando, Fla.

AVI DAN: You were very outspoken about how ambitious your plan is from the beginning. What was the strategy behind this approach?

KEITH WEED: We felt that in order to be accountable, and have our employees and partners accountable, the scope has to be established publicly, and that we have to set up specific goals and timetables. Otherwise it is just too easy not to meet these goals, especially when the scope of the plan is as transformative as this.

AVI DAN: How did your approach to sustainability evolve and inform your new business model?

KEITH WEED: We are not trying to make sustainability a separate agenda; we’re trying to make it a central agenda. We didn’t want it to be a couple of pages in a magazine but a commitment that the whole company could get behind.

AVI DAN: Why change the business model in the first place?

KEITH WEED: We look at the world through a lens, which we call VUCA, which stands for “Volatile, Unstable, Complex, and Ambiguous.” So you can say, “It’s a very tough world”, or you can say, “It’s a world that’s changing fast, and we can help consumers navigate through it.” Two-and-a-half billion more people will be added to the planet between now and 2050, of which 2 billion will be added in developing countries. The digital revolution, the shift in consumer spending, all this suggests that companies have to reinvent the way they do business.

AVI DAN: One of the interesting features of “Sustainable Living” is that you extended it throughout the whole supply chain. How did that come about?

KEITH WEED: When we researched improving sustainability in our own organization, we realized that our own footprint in things like reducing waste in electricity, water etc., would be only 6%. But a quarter of the resources come from the supply chain, from sourcing raw materials. And another 50-60% in consumer use, in people using water to wash clothes, for example. The model had to be comprehensive to be successful.

AVI DAN: Is there a financial benefit to sustainability?

KEITH WEED: We have saved in eco-efficiencies in our factories €250 million. Similarly, to our suppliers, there’s a savings as well.

AVI DAN: In this VUCA world, what other skills should marketers adopt?

KEITH WEED: I would advise marketers to look to the future more. There are enough people in business, and probably finance, who spend a lot of time counting where the money goes. But in a fast changing world, marketers need to focus more on foresight and insight. Both are important of course, but I would argue that foresight is even more important.

AVI DAN: What keeps you up at night?

KEITH WEED: Lack of integration. With all the new avenues of communication there is a proliferation, which is very difficult to manage. I would love one-stop shopping but I refuse to sacrifice quality.