There has been a six-fold increase in the number of companies planning to link executive pay with environmental targets, according to a report from ING.
Of the 450 firms surveyed for Now or never: A new bar for sustainability, more than 60% said they are considering tying compensation packages with green goals in 2021. Currently, less than 10% of companies have such rules.
Similar but smaller increases are expected for social and governance objectives.
Shell, BP and BMW are among the major companies who already link targets in this way, and Apple recently agreed to introduce an ‘ESG modifier’ to its annual bonus plan after shareholder pressure.
The study, which also includes responses from 100 institutional investors, found that the Covid-19 pandemic had served as a “wake-up call” on climate change and sustainability topics.
More than half of the corporates surveyed (57%) say the crisis has spurred them to speed up sustainability action, …