June 23, 2020
Report on ESG Metrics & Incentive Programs
– Lynn Jokela
Earlier this year, I blogged about a report analyzing use of ESG metrics in S&P 500 company incentive programs – it showed 50% of those companies include ESG metrics in annual incentive programs. Here’s another report – this one from Semler Brossy – that looks at use of ESG metrics in Fortune 200 company incentive programs. Semler Brossy reports that over half of the Fortune 200 also use ESG in their incentive plans but distribution is inconsistent across industries. The report attributes the variation to differences in external pressures and the level of strategic/competitive importance of ESG within sectors and then shows the breakdown of ESG metric prevalence by industry.