Unilever's CEO pledges sustainability will stay at heart of business after leadership change

There is little risk of a future chief executive of Unilever abandoning the company's sustainability-driven approach, incumbent Paul Polman said.

Unilever's CEO pledges sustainability will stay at heart of business after leadership change

"It’s so ingrained into our business model that I don’t think any individual would take that away," Polman said on a call to journalists after Unilever announced its first-half results.

"Look at the high standards the citizens of this world expect on compliance in the value chain," he added. "If you don’t look at ways to take material and cost out of the system, you won’t make it."

He pointed to innovations like a waterless toilet cleaner under the Domestos brand and vegan ice-cream alternatives as evidence that sustainability was woven throughout the business.

It was expected that Polman would step down in the first half of 2019 after Unilever hired executive search company Egon Zehnder International to find his replacement. But in May, he indicated he was in no rush to leave.

Unilever’s underlying sales growth for the first six months of this year was 2.5%, or 2.7% excluding the spreads business, which Unilever completed the disposal of this month. However, currency exchange effects meant that reported turnover was down 5%, or 4.8% excluding spreads.

In a statement, Unilever said it had increased its absolute level of brand and marketing investment and had increased media spend while cutting costs in advertising production. At Unilever’s full-year results announcement in February, CFO Graeme Pitkethly said the business had increased media spend by €250 million (£223 million) year-on-year.

Speaking on Thursday, Pitkethly said Unilever shareholders would vote in October on the planned corporate structure, which would see the business abandon its joint legal structure in favor of a single headquarters in the Netherlands.

While London’s Unilever House will lose its status, it will remain the head office of two of Unilever’s three divisions: home care and beauty and personal care.

Pitkethly said the move was "an important next step in unlocking flexibility," adding it would allow Unilever to "for the first time create true shareholder democracy" with a voting system that empowered shareholders to a greater degree.

Polman refused to comment when asked about the banquet he attended last week at Blenheim Palace with President Donald Trump and U.K. Prime Minister Theresa May.

This story first appeared on campaignlive.co.uk.

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