Ex-Unilever CEO Polman Calls ESG Criticism ‘Incomprehensible’

(Bloomberg) -- Unilever Plc's former Chief Executive Officer Paul Polman defended the Dove soap maker's sustainability agenda as the company faces growing pressure from shareholders to improve its performance. 

Activist investor Nelson Peltz recently took a stake in the company, without disclosing his aims. And earlier Terry Smith, founder of Fundsmith LLP and one of Unilever's top 15 shareholders, called out the company for focusing to much on sustainability at the expense of its business.

Polman on Thursday pushed back. “To say that Unilever shouldn't spend time trying to get rid of deforestation or lower carbon emissions is incomprehensible,” the ex-CEO said during a business ethics speaker series hosted by Trinity Business School. 

Polman said he presided over a 300% jump in the company's share price and that his successor Alan Jope should be given time to transform the consumer-goods giant. 

A slumping share price has put Jope under pressure to chart a new course and shed underperforming assets. 

Unilever on Jan. 25 said it plans to cut 15% of its senior managerial positions to speed decision-making after Peltz's stake came to light. The company last month abandoned its pursuit of GlaxoSmithKline Plc's consumer-health business after the drugmaker rejected its overtures and investors disparaged the offer.

©2022 Bloomberg L.P.