What Could Unilever's New CEO Mean for Sustainability?

Unilever is behind some of the world’s favourite brands — think Dove, Axe, Ben & Jerry's and around 400 more in 190 countries that are used by more than 3.4 billion people every day.

The consumer goods leader is set for a significant leadership change as CEO Hein Schumacher steps down and passes the reins to current Chief Finance Officer Fernando Fernandez on 1 March.

The fast-moving consumer goods (FMCG) giant announced that Hein would leave his role as Chief Executive and Board Director on 1 March, before departing the company on 31 May. Fernando will officially become the organisation's new CEO from 1 March. 

“It has been a privilege to lead Unilever," said Hein. "We have made real progress and I am proud of what we have achieved in a short period of time.

"With a clear strategy, a portfolio reset in motion and a strong leadership team in place, I look forward to seeing Unilever move from strength to strength in the future."

Ian Meakins, Chairman at Unilever, commended Hein for "resetting Unilever’s strategy", as well as the "focus and discipline he has brought to the company". He also highlighted the "solid financial progress" delivered during 2024. 

"Hein introduced and led a significant productivity programme and the commencement of the Ice Cream separation, both of which are fully on track," Ian continued. 

"The Growth Action Plan (GAP) has put Unilever on a path to higher performance and the board is committed to accelerating its execution.

"We are grateful for Hein’s leadership and we wish him the very best for the future."

Meet Fernando Fernandez

Fernando Fernandez, set to take over as CEO, isn't new to Unilever’s leadership challenges and opportunities. His career at the company extends over three decades, during which he has held pivotal roles including President of Beauty & Wellbeing and leadership positions across significant markets in Latin America and Asia. His prior successes in these roles underline his capability to lead Unilever towards a promising future.

"The board has been impressed with Fernando’s decisive and results-oriented approach and his ability to drive change at speed," Ian says.

"He partnered in the development of the GAP and in driving the productivity programme. He has a strong track record of performance and portfolio management, a love of brands and a profound knowledge of Unilever’s operations.

“While the board is pleased with Unilever’s performance in 2024, there is much further to go to deliver best-in-class results. Having worked with Fernando closely over the last 14 months, the board is very confident in his ability to lead a high-performing management team, realise the benefits of the GAP with urgency and deliver the shareholder value that the company’s potential demands."

With Fernando at the helm, Unilever anticipates accelerating the execution of its strategic plans, aiming to achieve industry-leading performance and optimise shareholder value.

What does the move mean for sustainability at Unilever?

The shift in leadership comes after Unilever has had a turmultuous time under the leadership of Hein in terms of sustainability.

In April 2024, the company scaled back its ESG strategy under the provocative headline: ‘Defining a new era for sustainability leadership'.

"The reality is that Unilever’s sustainability agenda covers a wide range of issues," Hein said.

“But we have learned from experience that we need to be more focused in our allocation of resources to make tangible progress on the big, complex challenges we face.”

The deceleration focussed on areas including plastic reduction, wages for suppliers, sustainable sourcing and ecosystem protection.

A few weeks later, Unilever released its updated Climate Transition Action Plan.

“CTAP is really important, because it enables us to understand where our emissions sit across our business and our value chain," said Rebecca Marmot, then-Chief Sustainability Officer at Unilever.

“We’ve now got time-bound costed roadmaps that enable us to take action in each of the business groups.

“That means less exposure to volatility in the energy markets and more security of supply in key crops and commodities.”

The company said that it was focusing on three keys sustainability mission statements:

• "To be more focused in allocating our resources towards our biggest sustainability priorities
• "To be more urgent in driving actions towards our long-term ambitions
• "To be more systemic in our advocacy to address the enablers and blockers of progress outside of our direct control."

Hein said: “Our updated commitments are very stretching, but they are also intentionally and unashamedly realistic. We are determined that Unilever will deliver against them.”

One of the most recent controversies in Unilever’s sustainability lies in a re-organisation of the sustainability team. 

Rebecca Marmot was the company’s Chief Sustainability Officer from May 2019 to January 2025, when her role evolved to Chief Sustainability and Corporate Affairs Officer which she describes as ‘Global Head of Sustainability, Corporate Affairs and External Communications’.

With new leadership in place, Unilever could be in for another sustainability shake-up too.

A future of growth and innovation

As he prepares to lead Unilever, Fernando expresses his enthusiasm and vision for the company's future.

"Being appointed as CEO of Unilever is an honour," he shares.

"Our focus will be on building a future-fit portfolio with an attractive growth footprint and delivering unmatched functional and perceivable superiority across our top 30 power brands. I have full confidence in our team's ability to propel Unilever to a global industry-leading position and create substantial value for our shareholders.

"I would like to thank Hein for his values-led leadership and the performance focus he has brought to the business. I wish him every success for the future."

Fernando's leadership is expected to drive Unilever forward, leveraging its strong brand portfolio to position the company as a global leader in the FMCG sector.

Srinivas Phatak, currently Deputy CFO and Group Controller, is set to become the acting CFO from 1 March, bringing a wealth of experience in finance, strategy, and supply chain management to his new role.

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