I am divided on the importance of the article in the url below – an announcement by Unilever that it plans to give shareholders a regular vote on its sustainability plan (see also Strategic CSR – Unilever):
"Unilever PLC said it would become the first major company to voluntarily give shareholders a vote on its efforts to reduce carbon emissions, seeking greater engagement with investors on climate issues."
On the one hand, it is inflating the importance of shareholders in company decisions, while not giving a similar level of access/influence to other stakeholders. On the other hand, however, it is an acknowledgement that Unilever feels the issue of sustainability has evolved to the point where it will generally win these votes; it also is a smart strategic move to wrest the initiative away from shareholders and control the way debates on this issue are handled at the firm's AGM:
"The owner of Dove soap and Ben & Jerry's ice cream said Monday it would seek approval from investors every three years on its plan to mitigate its carbon impact and the risks of climate change on its business. However, the vote would be only advisory and doesn't require Unilever to make changes. Major investors say they are putting more emphasis on addressing the threats posed by climate change, with shareholder resolutions on the issue becoming more common. By proposing its own climate resolutions for shareholders to vote on—which take into account the challenges and realities of achieving them—Unilever is in the driving seat, said one big investor."
And, then again, perhaps Unilever is just resigned to the inevitable:
"BlackRock Inc., one of Unilever's largest investors, said earlier this year that it would be increasingly likely to vote against management and boards if companies don't disclose climate-change risks and plans in line with key industry standards."
Alternatively, perhaps it is better for Unilever to proactively instigate this change, which allows it to constrain the vote as "advisory" only, while continuing to stretch its own performance on this issue:
"A Unilever spokeswoman said investor interest in managing the transition to net zero was growing and that the company wanted to send a signal that it was serious about meeting these targets."
Either way, the timing of the announcement was fortuitous, given yesterday's announcement by the SEC that it will start requiring firms to report the environmental impact of operations and the risk climate change poses to the business. Unilever is more progressive on such issues than most companies – a position that is reflected in the timelines and targets the firm is pursuing:
"The consumer-goods giant is among the growing number of companies setting public targets for cutting carbon emissions over the next few years. London-based Unilever has promised to eliminate emissions from its own operations by 2030 and to do the same from sourcing to point of sale by 2039. It also plans to halve the footprint of its products in the next decade, which involves the more difficult process of cutting emissions from consumers using its products."
Take care
David
David Chandler
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Unilever Allows Climate Input
By Saabira Chaudhuri
December 15, 2020
The Wall Street Journal
Late Edition – Final
B6
