Polman warns Unilever not to pin underperformance on sustainability

Former head says financial woes are “not a purpose story but a slippage in performance story” as firm ousts latest CEO

Paul Polman has defended Unilever’s record on sustainability as the firm puts its chief financial officer at the helm in a bid to become more profitable.   

Responding to a LinkedIn post on the surprise exit of CEO Hein Schumacher, Polman warned against pinning Unilever’s underperformance on its sustainability efforts.  

Schumacher was ousted by the board last week, after less than two years, following downbeat forecasts for the company.  

“Market growth, which slowed throughout 2024, is expected to remain soft in the first half of 2025,” he wrote on 13 February as the company released its 2024 financial results.   

Chief financial officer Fernando Fernandez has been named new CEO. 

Schumacher’s attempts to improve performance have included major cuts to the firm’s sustainability ambitions, saying it “may have underestimated the scale and complexity” of some of its targets.  

Under Polman’s leadership, which lasted 10 years until 2019, Unilever made a series of high-profile commitments based on supporting the UN Sustainable Development Goals.  

He noted on LinkedIn this week that over the same period the firm outperformed both its competitors and the broader market, with shareholder returns estimated to have hit nearly 300%.    

“Sustainability is nothing else that [sic] positioning the company where the world is going, and if you want to win you might as well lead. Better to make the dust then eat the dust,” Polman commented.  

He said the company’s recent performance was “not a purpose story but a slippage in performance story,” which had made it a target for activist investors.   

Activist investment house Trian Partners is one of Unilever’s biggest shareholders, and its founder Nelson Peltz sits on the board.  

He is widely understood to be a major influence on the company’s recent decisions.  

In what seemed to be a reference to this, Polman warned that “one man shows” do not work in the long-term, adding: “Especially if the noise comes from someone who has never run a complex business like this…and frankly wants to earn a quick buck without much regard for the long-term viability and role of major companies.” 

He said Unilever had the potential “to do much better and lead in responsible business model” but that it would require leadership from management and – “importantly” – the board.  

REP has reached out to Polman and Trian Partners for comment.