ISS Urges Shareholders to Reject Unilever’s Climate Plan in Key AGM Vote
Leading proxy advisory firm Institutional Shareholder Services (ISS) has recommended that investors vote against Unilever’s climate transition plan at the company’s upcoming Annual General Meeting on May 8. The move signals growing investor scrutiny over the effectiveness and transparency of corporate ESG efforts in the FMCG sector.
Unilever’s climate plan—a non-binding resolution seeking shareholder approval—faced criticism from ISS for lacking sufficient disclosure and progress. The advisor cited “limited supporting disclosures” on how the consumer goods giant intends to meet its net-zero ambitions, including the absence of short- and medium-term emissions targets tied to its supply chain and product usage.
ISS acknowledged that while Unilever had made meaningful commitments, such as achieving net zero emissions across its operations by 2030 and its value chain by 2039, it has not clearly outlined interim milestones or quantified pathways. This lack of clarity, according to ISS, undermines investors’ ability to assess whether the plan is credible and achievable.
Unilever remains under pressure to demonstrate measurable progress on its climate pledges, especially as sustainable sourcing and decarbonization across the value chain become central to risk management and brand positioning in the FMCG industry. Consumer demand for ESG accountability is rising, and key institutional investors are increasingly influenced by proxy advisor recommendations.
ISS’s stance follows mounting scrutiny from climate-focused investor groups and comes amid broader debates over how FMCG conglomerates should set, communicate, and be held accountable for environmental targets. If a significant portion of shareholders vote against the proposal, it could prompt Unilever to revisit and strengthen its disclosures and strategy execution related to emissions reductions.
The recommendation may also influence how other companies in the fast-moving consumer goods space address ESG transparency, particularly around Scope 3 emissions—indirect emissions from the value chain that often represent the bulk of a company’s carbon footprint.
Unilever, whose portfolio includes household brands such as Dove, Hellmann’s, and Ben & Jerry’s, has positioned itself as a global leader in sustainable business. The vote outcome could serve as a bellwether for shareholder appetite for concrete ESG delivery across the sector.