Benzinga | Sep 2, 2020 05:08AM EDT

Unilever Pledges $1.2B To Eliminate Fossil Fuels From Cleaning Products Within A Decade

Unilever Plc (NYSE:UL) said Wednesday it was allocating $1.2 billion for its "Clean Future" program to eliminate the use fossil fuels in its cleaning products.

What Happened: The Anglo-Dutch multinational said in a statement it was making a "deliberate shift away from the fossil fuel economy" as part of its pledge to achieve net zero emissions from its products by 2039.

The maker of products such as Omo, Sunlight, and Cif said it will replace all non-renewable fossil sources of carbon in its products with ones derived from plants and other biological sources, such as algae and waste materials.

Why It Matters: Chemicals used in the company's cleaning and laundry products account for the largest part of Unilever's emissions. The announced measures will reduce that footprint by 20%.

The extraction of hydrocarbons from ecologically sensitive areas is being opposed by environmental groups who are vowing to oppose digging for oil areas such as the Arctic National Wildlife Refuge, according to National Public Radio.

Several financial institutions such as Wells Fargo & Co (NYSE:WFC), Goldman Sachs Group Inc (NYSE:GS) and JPMorgan Chase & Co (NYSE:JPM) have said they would not finance such oil drilling.

Price Action: Unilever shares closed 0.22% higher at $58.13 on Tuesday.

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