ESG Viewpoint – Should ‘doing good’ pay out? Linking executive pay to ESG metrics

Insights

ESG Viewpoint – Should ‘doing good’ pay out? Linking executive pay to ESG metrics

ESG metrics in pay matter. We explain why, outline our expectations for companies in this area and detail our engagement efforts and the progress made.
Historically, executive pay has incentivised leadership to increase traditional measures of issuer performance such as revenue or operational efficiency. Now, as the world shifts its concept of corporate materiality and impact to include environmental and social matters, issuers are increasingly integrating sustainability goals alongside more traditional executive compensation key performance indicators (KPIs). These range from emissions reductions to workplace diversity targets – and, if achieved, can benefit stakeholders beyond just shareholders such as staff, society, and the environment.
In 2021, more than half of S&P 500 issuers – and nearly half of FTSE 100 issuers – included at least one ESG metric in executive incentive plans.
  • In 2021, Shell increased the weighting of its energy transition condition in the long-term incentive plan (LTIP) to 20%.
  • Since 2021, McDonald’s has factored diversity goals into executive bonuses.
  • Since 2020, Siemens has weighted 20% of stock awards for its managing board on an internal sustainability index based on three KPIs, including CO2 emissions.

Interested in learning more?

Read more about ESG metrics and executive pay, our expectations for companies and the progress we’ve been making through our engagement efforts. Download the full viewpoint to discover more.

 

30 septiembre 2022
Kirsty Nicholson
Kirsty Nicholson
Impact Reporting Analyst, Responsible Investment
Jamie Jenkins
Jamie Jenkins
Managing Director, Head of Global ESG Equities
Share article
Temas clave
Temas relacionados
Listen on Stitcher badge
Share article
Temas clave
Temas relacionados

PDF

ESG Viewpoint – Should ‘doing good’ pay out? Linking executive pay to ESG metrics

Risk Disclaimer

Views and opinions have been arrived at by Columbia Threadneedle Investments and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

 

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

 

Engagement efforts outlined in this Viewpoint reflect the assets of a group of legal entities whose parent company is Columbia Threadneedle Investments UK International Limited and that formerly traded as BMO Global Asset Management EMEA. These entities are now part of Columbia Threadneedle Investments which is the asset management business of Ameriprise Financial, Inc. Engagement and voting services are also executed on behalf of reo® clients.

Opiniones relacionadas

12 agosto 2024

Natalia Luna

Senior Thematic Investment Analyst, Global Research

Comicios en Estados Unidos: la Ley sobre Reducciónde la Inflación y el riesgo de que se derogue

La Ley sobre Reducción de la Inflación ha contribuido a que se produzca un notable incremento de las energías limpias y los proyectos tecnológicos en Estados Unidos, así como de las inversiones en producción.
Tiempo de lectura - 3 min
23 julio 2024

Joe Horrocks-Taylor

Senior Associate, Analyst, Responsible Investment

Opinión en materia ASG - Compromisos medioambientalmente beneficiosos: diferenciar lo ecológico del ecopostureo (greenwashing)

Compromisos medioambientalmente beneficiosos: diferenciar lo ecológico del ecopostureo (greenwashing).
Tiempo de lectura - 5 min
7 diciembre 2023

Letitia Byatt

Social Impact Analyst

Alice Evans

Responsible Investment Strategist

Vicki Bakhshi

Director, Responsible Investment

Invertir en una transición justa

Es esencial considerar la dimensión social en nuestra transición hacia un mundo con bajas emisiones de carbono. Exploramos las implicaciones para la inversión de una transición justa.
Tiempo de lectura - 10 min
20 septiembre 2024

La Fed tiene la clave para los próximos movimientos del mercado

La Reserva Federal parece dispuesta a recortar los tipos de interés esta semana.
12 septiembre 2024

Steven Bell

Economista Jefe EMEA

Los tipos de interés van a bajar. Pero, ¿cómo de rápido?

Se avecinan recortes de tipos, pero ¿son los mercados demasiado optimistas en sus expectativas?
28 agosto 2024

Steven Bell

Economista Jefe EMEA

¿Qué nos dicen los bancos centrales sobre los tipos de interés?

Los mercados están anticipando recortes de tipos de 100 puntos básicos para finales de año. Con sólo 3 reuniones por delante, se trata de una cifra bastante elevada.
Tiempo visualización - 5 min
true
true

Risk Disclaimer

Views and opinions have been arrived at by Columbia Threadneedle Investments and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

 

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

 

Engagement efforts outlined in this Viewpoint reflect the assets of a group of legal entities whose parent company is Columbia Threadneedle Investments UK International Limited and that formerly traded as BMO Global Asset Management EMEA. These entities are now part of Columbia Threadneedle Investments which is the asset management business of Ameriprise Financial, Inc. Engagement and voting services are also executed on behalf of reo® clients.

También puede interesar

Enfoque de inversión

El trabajo en equipo nos define y es fundamental en nuestro proceso de inversión, estructurado para facilitar la generación, consecución e implementación de grandes y fuertes ideas de inversión para nuestras carteras.

Fondos

Columbia Threadneedle Investments dispone de una amplia gama de fondos de inversión que cubre diversos objetivos de inversión.

Capacidades de inversión

Ofrecemos un amplio abanico de soluciones y estrategias de inversión gestionadas activamente que abarcan mercados y clases de activos a escala mundial, regional y nacional.

Confirme algunos detalles sobre usted para visitar su centro de preferencias

*Campos obligatorios

Algo salió mal. Por favor, vuelva a intentarlo

Gracias. Ahora puede visitar su centro de preferencias para elegir qué información le gustaría recibir por correo electrónico.

Para ver y actualizar qué información recibe de nosotros por correo electrónico, visite su centro de preferencias