Unilever boss Alan Jope
(Picture: Getty Images for Concordia Summi)Unilever is not the only UK business getting flak from investors over ESG.
After Fundsmith’s Terry Smith recently hit out at the consumer giant for “losing the plot” over sustainability issues, a new survey from EY suggests seven out of 10 UK bosses have clashed with investors over similar concerns.
EY said today almost all - 98% - of UK CEOs it surveyed say ESG (environmental, social and governance issues) will be “an important value driver”. But 70% report clashing with shareholders over sustainability plans.
Smith recently slammed Unilever for trying to define a purpose for mayonnaise, saying management should spend more time focusing on improving the business.
EY found bosses face disagreements both with investors like Smith who thinks ESG issues are getting too much attention and others who think it needs even more focus.
Steve Ivermee of EY said: “We’re seeing this tension develop now, with some company stakeholders pushing for companies to move faster, while others are calling for a stronger focus on immediate returns.”
Two-fifths of shareholders want firms to wait for competitors to act first on sustainability rather than leading, EY found.
