In a move heavily criticised by environmentalists, Unilever – a consumer goods company behind notable brands ranging from Dove beauty products to Ben & Jerry’s ice cream – has decided to scale back its environmental and social objectives.
Last Friday, Unilever’s current chief executive Hein Schumacher confirmed plans to tone down the London-based firm’s ethical pledges on a range of issues including plastic usage and pay. The company is valued at £94 billion on the London Stock Exchange.
Unilever scales back environmental and social pledges
Unilever used to be a prominent proponent of corporate ethics – especially under the tenure of its former boss Paul Polman. But the shift comes amid a trend of pressure from shareholders in different corporations to cut costs and focus more on stock market performance.
Unilever is one of the largest users of plastic packaging across the globe. It had previously promised to cut its use of virgin plastics by 50% by 2025. But currently, it seeks a reduction of a third by 2026, according to Bloomberg. The change equates to tonnes of more fresh plastic.
In addition, the company has also decided to leave behind a promise to pay direct suppliers a living wage by 2030, instead proposing fair pay for suppliers accounting for half its annual spend on goods and services by 2026, the Guardian reported.
Unilever is also abandoning a pledge to spend £1.7 billion annually with diverse businesses by 2025 and a commitment to let people with disabilities make up at least 5% of its workforce by the same year. Environmental groups are concerned by the changes.
Unilever bosses “should hang their heads in shame”
Nina Schrank, the head of plastics at Greenpeace UK, said Unilever bosses “should hang their heads in shame”. “The tsunami of plastic they produce each year meant their existing targets were already not fit for purpose. We needed much more.”
Under former boss Polman – and his successor Alan Jope – consumer goods company Unilever became hugely involved in ethical initiatives. The recent dilution of its ethical stance comes after a period of worsening performance on the stock market.
