Eco-CEO

Pay Tied to Sustainability




While sustainability is often categorized as a long-term strategy to mitigate both corporate reputational and financial risk, a small but growing number of companies are beginning to tie environmental goals to executive compensation. That means leaders of participating firms now must weigh operational variables such as greenhouse gas emissions against short-term financial outcomes.

In a report published by Sustainalytics and the sustainability nonprofit Ceres, 24 percent of the 613 largest publicly traded companies have now tied sustainability to executive compensation, up from 15 percent in 2012. “At the end of the day, people are motivated by their pocketbooks,” says Veena Ramani, Ceres senior director of corporate programs. “I think investors have come to recognize that if you want companies to take this stuff seriously, you’re going to have to link it to people’s compensation.”

The shift is part of a broader push to tie corporate social responsibility areas such as environmental, social and governance metrics, as well as labor and local community impacts, to core business models.


Source: GreenBiz.com

Edit ModuleShow Tags

More from Natural Awakenings

Gardening Asanas

Overdoing garden work can produce aches and pains, but by integrating yoga positions while planting and weeding, we can emerge pain-free after hours of being on our knees and bending.

Indigenous Wisdom

Indigenous elders from around the world meet together to pass down four sacred gifts of wisdom we would do well to heed.

Nature’s Remedies

Creatures in the wild ranging from microbes to elephants cope with parasites, pests and pain using natural substances; it all suggests why our preserving the natural world is good for us, too.

Healthy Climate, Healthy People

As the Earth slowly heats up, we’re being affected by rising allergens, disaster-related trauma and the increase in insects carrying dangerous diseases.

Whole Grains Help Us Eat Less

When overweight Danes exchanged refined grain products such as white bread and pasta for whole-grain equivalents, they tended to feel full sooner, eat less, lose weight and have less inflammation.
Edit ModuleShow Tags
Edit ModuleShow Tags