02 May 2024 , 08:02
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Unilever's AGM erupted into chaos as activists held the board to account over the firm's environmental impact.
The maker of Marmite and Dove has long been viewed as a pioneer in environmental, social and governance (ESG) performance. However, it faced backlash recently for shrinking its goals and pushing back some deadlines.
Its executive team, which has seen numerous changes in the past year, also rolled out a fresh growth strategy aimed at ramping up shareholder returns following several years of "disappointing" performance. Despite the tension, all resolutions were passed during Wednesday's AGM, with 98% supporting the company's updated Climate Transition Action Plan.
Yet the board was on the defensive as shareholders voiced worries about a potential compromise of sustainability for growth. Before matters could get underway, scores of protesters lined outside Hilton Bankside London brandishing placards with slogans such as "Unilever: Stop greenwashing" and "No economy on a dead planet".
Proceedings were interrupted straightaway as Greenpeace activists set off a confetti cannon and handing over an open letter signed by 140,000 people urging the board to end single-use plastics during Chairman Ian Meakins's introductory speech, As they were being led out by security, one woman aimed her frustration directly at Unilever's CEO, exclaiming: "Hein Schumacher, you and your board are cheap plastic polluters, responsible for the mess that we are in today. You have to change."
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Shareholder questions were dominated by ESG concerns over climate change, consumer health and the firm’s continued presence in Russia. Despite this, the company's leadership maintained that sustainability is still central to their strategy, as they highlighted their renewed commitment to balancing strong performance with ethical practices.
Mr Meakins said: "We do not see there is a trade-off between performance and doing the right thing in terms of sustainability."A group of Friends of the Earth (FOE) activists repeatedly questioned the board about committing to a 48% reduction in all greenhouse gas emissions by 2030.
In response to an activist, Mr Schumacher proudly cited Unilever's history of sustainable actions, urging: "Please look at the league tables. I don't want to talk about other companies but let me put it this way, we are absolutely leading the pack. I welcome your presence at the meeting, I really do. But in a way you're at the wrong meeting. There are many other companies that you need to talk to and I agree with that."
The demonstration reached its peak when around 100 FOE members stood up, chanting "power to the people" and brandishing fists covered in green gloves, as they made a symbolic exit from the meeting room. Members of the Rio Mukti communities from Central Sulawesi in Indonesia confronted the board, alleging their land was seized and turned into palm oil plantations by Astra Agro Lestari (AAL) in the mid-2000s a company linked to Unilever's supply chain.
Nengah Wantri, 48, said: "It's very difficult to live in my own country and my own land and it's very hard to live day by day," she disclosed to the PA news agency before the AGM. We can't pay for our children's education and we cannot buy rice or other food and groceries."
Ms Wantri revealed she had been imprisoned twice for gathering fallen fruit, stating: "It's very embarrassing to be accused of stealing from the company that stole your land."
Ketut Sovok, 46, now employed on a friend's farm after his own land was taken, said: "It breaks our soul because previously we had our own land. Now we have to work under someone else, under the instructions of the company or friends and this is very difficult. To see justice, we want our land returned to us but we also want compensation for the environmental damage caused, and the years of abuse and intimidation we've endured."
In response to queries regarding AAL, Mr Schumacher clarified that the company is not a direct supplier to Unilever. In addition, he stated that Unilever has conducted its own research and prefers to discuss with its direct suppliers about their methods of sourcing.
The board considers these allegations "very very seriously," he confirmed. "It is new to me here today and that's something we need to investigate going forward and your point is therefore well heard."