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Unilever to put climate plan to shareholder vote
14th Dec 2020 09:26
(Sharecast News) - Unilever has pledged to put its climate change plans to regular shareholder votes, making it the world's biggest company to do so voluntarily.
The FTSE 100 consumer goods company said it would publish its plan in early 2021 and give shareholders a non-binding vote at its annual general meeting on 5 May. Unilever will update the plan on a rolling basis and hold shareholder votes every three years on major changes, it said.
The plan will set out Unilever's strategy to reduce emissions at its operations and in its value chain and describe how the company is managing risks connected to the climate emergency. Unilever has pledged to have zero emissions from its own operations by 2030 and net zero emissions from sourcing to point of sale by 2039.
"It is the first time a major global company has voluntarily committed to put its climate transition plans before a shareholder vote," the maker of Dove soap, Persil washing powder and Marmite said.
"The economy-wide shift to net zero emissions will require a greater and deeper level of engagement between companies and their investors. In setting out our plan, we hope this increased level of transparency and accountability will strengthen the dialogue with our shareholders and encourage other companies to follow suit."
Asset managers and pension funds have been taking the climate emergency more seriously faced with the threat that the value of their investments could be damaged if management fails to adapt to the needs of the environment. Activist investor Chris Hohn has called on companies to give shareholders more say on their plans.
Unilever shares fell 0.9% to £43.77.50 at 09:57 GMT.
The FTSE 100 consumer goods company said it would publish its plan in early 2021 and give shareholders a non-binding vote at its annual general meeting on 5 May. Unilever will update the plan on a rolling basis and hold shareholder votes every three years on major changes, it said.
The plan will set out Unilever's strategy to reduce emissions at its operations and in its value chain and describe how the company is managing risks connected to the climate emergency. Unilever has pledged to have zero emissions from its own operations by 2030 and net zero emissions from sourcing to point of sale by 2039.
"It is the first time a major global company has voluntarily committed to put its climate transition plans before a shareholder vote," the maker of Dove soap, Persil washing powder and Marmite said.
"The economy-wide shift to net zero emissions will require a greater and deeper level of engagement between companies and their investors. In setting out our plan, we hope this increased level of transparency and accountability will strengthen the dialogue with our shareholders and encourage other companies to follow suit."
Asset managers and pension funds have been taking the climate emergency more seriously faced with the threat that the value of their investments could be damaged if management fails to adapt to the needs of the environment. Activist investor Chris Hohn has called on companies to give shareholders more say on their plans.
Unilever shares fell 0.9% to £43.77.50 at 09:57 GMT.