unilever news

Generally speaking, most of my fortnightly notes have a unifying theme to them, whether on the subject of Covid-19, accelerating the growth of our business, or – to take the one from two weeks ago – the launch of our Unilever Compass strategy. This one’s a bit different though. It’s more of a news bulletin, with updates on a range of important developments across the business.

Climate Transition Action Plan

Firstly, this week we published our Climate Transition Action Plan (CTAP). You might recall that at the end of last year we announced our intent to seek shareholder approval on how we will achieve our ambitions of zero emissions across our own operations by 2030, and net-zero across our value chain by 2039. These plans have now been laid out in our CTAP ahead of our Annual General Meeting in May. We are the first company in the world to lay out a plan like this and put it to a shareholder vote. I’d encourage you to take a look at the document. It provides a really clear explanation of how we will reduce greenhouse gas emissions in our operations, value chain, our brands and products, and by using our influence in wider society. We also hope that it will strengthen dialogue with our shareholders on our approach to tackling climate change and encourage other companies to follow suit. Congratulations to all those involved in producing this ground-breaking plan.

Elida Beauty

One of the most frequent questions we receive on Your Call is about our portfolio transformation work in our Tea and Beauty & Personal Care businesses.

I hope you are all aware by now that the majority of our Tea business is in the process of being set up as a separate and stand-alone business, which will report to me from 1 July, as we continue to consider our longer-term options for this business. A warm welcome again to John Davison, who joined Unilever as CEO of the new Tea Division last week.

However, we have spent less time discussing our portfolio transformation work in BPC and so I wanted to share a short update.

Our plans to step-up our growth in BPC have several focus areas, including growing in Hygiene, Skin Care, Prestige Beauty; and continuing our rapid growth in e-commerce channels. At the same time, we also need to address parts of the portfolio that require greater focus to thrive, and so last year we created a Transformation Team, led by Jean-Laurent Ingles, to review our BPC portfolio to identify opportunities to unlock and accelerate growth.

After a thorough assessment, the team identified a number of ‘Sleeping Beauty’ brands – brands like Q tips, TIGI, Caress, VO5, and Impulse – that have potential to step-up their growth if they are given the right level of focus and investment. These brands, and several others, will now come together to form a new stand-alone business entity, ‘Elida Beauty Limited’, under Jean-Laurent’s leadership and with a full management team, as we explore all possible options for their future. We will continue to keep you updated.

Manifesto for a Happier World

Around this time of year, there are several “Global Days” organised for the world to pause and reflect on the progress we are making. Over the last week, we have celebrated Global Recycling Day, World Oral Health Day, World Forest Day and World Water Day – there’s plenty on our News Centre about how our brands and business have been involved.

In addition, on 20 March, we also marked International Day of Happiness, giving our Wall’s brand the opportunity to share its new Manifesto for a Happier World as part of its purpose to create happier, more inclusive communities. It’s a very timely report, which looks at how people across the world are calling for governments to prioritise happiness over purely economic growth as we build back from the Covid-19 pandemic. In fact, Wall’s research found that when people consider their happiness, they now place a higher value on social connection and community togetherness, instead of primarily valuing individual financial success, status and personal possessions – an insight which will be relevant to many of our brands too.

It’s exciting to see the thought leadership that Wall’s is bringing to this topic as a brand with purpose, and of course the action it’s taking on-the-ground across many of our markets to build community happiness. Throughout this year, it will be bringing academics, policymakers, communities and activists together to shape a blueprint for a future where happiness is prioritised.

China

Given the importance of China to the world economy – and to our own business – we welcome opportunities to engage constructively with the Chinese authorities. I was delighted therefore to have the chance last weekend to participate in the China Development Forum (CDF), the principal body for bringing together senior members of the Chinese government with the heads of international businesses and foreign investors.

China is currently seeking to re-balance its massive economy – by stimulating domestic demand and reducing the overall reliance on export-driven growth. It’s a big change and one that provides huge opportunities for businesses like ours, well established – and well respected – in the country and with a portfolio heavily weighted to the domestic market. At the same time, we need China and other world economies to remain fully open to international flows of trade. I had the chance to put these points across at the CDF, including in meetings with Premier Li Keqiang. We’ve built a fabulous business in China over the years. We now want to give it every opportunity to be a major player in China, but also as a significant force for Unilever internationally.

CMI leadership announcement

Lastly, an important people update.

After almost eight years successfully leading our Consumer Marketing Insight function, Stan Sthanunathan has decided to retire from Unilever at the end of May. I’d like to thank Stan for the profound impact he has had on our business throughout his time with us. From the creation of our industry-leading People Data Centres, to the codification of our Five Growth Fundamentals, Stan has been a passionate advocate of putting our consumer at the heart of everything Unilever does. Stan’s purpose is to bring out the best in people by inspiring and provoking them, and it’s fair to say that he really did live his purpose with us! Stan, you have been a source of wise counsel and we wish you all the best in the next chapter of your life.

I am pleased to announce that Vijay Raj – currently VP CMI Markets and Centres of Excellence – will be appointed EVP CMI from 1 June, reporting into Conny Braams, Chief Digital and Marketing Officer. Vijay has more than 20 years of marketing insight experience at Unilever across divisional, market, and global roles, having worked for our business in India, the UK, Indonesia and most recently Singapore. I am sure that his visionary approach and passion for the digitisation of marketing will help to supercharge CMI into the future. Please join me in congratulating Vijay and welcoming him into his new role.

You can ask me about any of the updates above in next week’s Your Call, when I’ll be joined by our Chief Operating Officer, Nitin Paranjpe. So please join us on Thursday 1 April, 12pm BST (GMT +1). Pigeonhole will open the day before.

All the best,

Alan Jope, CEO

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