Unilever scales back ESG pledges (2024)
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Unilever, a long-time corporate ESG supporter, has announced that it will scale back its ESG goals, citing practical difficulties and reduced investor support for such efforts:
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The move by Hein Schumacher, Unilever’s chief executive officer, marks a major shift for the £95 billion ($118 billion) consumer group — home to brands ranging from Hellmann’s mayonnaise to Domestos bleach — which has built its business strategy on a bedrock of ESG policies for more than a decade. Seen as the corporate world’s biggest cheerleader for the idea that companies should do good in the world, the downgrading of some commitments will be watched closely by other businesses under shareholder pressure to reduce costs and boost stock market performance. Unilever, one of the world’s biggest users of plastic packaging, had previously committed to halve its use of virgin plastics by 2025. That target will now be one-third by 2026 — the difference accounting for more than 100,000 tons of fresh plastic annually. A commitment to pay all its direct suppliers a living wage by 2030 will be replaced by a living wage promise covering suppliers of half of its spending on goods and services by 2026. A pledge to spend an annual €2 billion ($2.1 billion) with diverse businesses worldwide by 2025 has been dropped along with a commitment that 5% of the workforce will be made up of people with disabilities by the same year. The shift represents a sharp break with Schumacher’s predecessors Paul Polman and Alan Jope, who became industry advocates of the need for companies to take greater responsibility for sustainability and equality.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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