Unilever and biotech firm Geno are planning to make a joint $120 million investment in scaling and commercializing the production of plant-based alternatives to products such as palm oil that are commonly found in household products but have a massive environmental impact.
The funding will be used to develop and support the use of plant-based ingredients using Geno’s biotechnology platform, which will also help scale the production of new ingredients.
While Unilever is making an investment in identifying and increasing the use of plant-based alternatives, it said it would continue to use palm oil in its products. The approach will help the consumer packaged goods giant diversify its supply chain and offer choices to shoppers looking for sustainable products.
“Biotechnology has the potential to revolutionize the sourcing of our cleansing ingredients and ensure Unilever is a future-fit business – for consumers, shareholders, and the planet we all share,” said Unilever’s Chief Research and Development Officer Richard Slater.
“This new venture will sit at the intersection of science and sustainability, meaning we can continue to grow our business without relying only on palm oil or fossil fuel derivatives, while also making our supply chains more resilient from having access to ingredient alternatives,” Slater added.