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The proportion of Nordic companies incorporating E&S performance metrics in their executive remuneration programs has more than tripled, rising to 30-percent…

March 28, 2025

Environmental & Social Metrics in Executive Remuneration: A Look at the Nordics

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Below are some of the key takeaways from ISS’ recently released report titled Environmental & Social Metrics in Executive Remuneration: A Look at the Nordics. The full report is available to institutional subscribers by logging into ProxyExchange then selecting the Knowledge Center and its Library tab and to corporate subscribers by logging into Compass then selecting Governance and the Governance Library or Governance Exchange tab. 

If you are not a subscriber, you can download a copy of the full report here. 

  • The proportion of companies in the Nordic countries that have integrated E&S metrics into their executive variable remuneration programs has increased, though the figures remain lower compared to the rest of Europe. 
  • Between 2020 and 2023 (the last full pay cycle for which disclosed data is available), the proportion of Nordic companies incorporating E&S performance metrics in their executive remuneration programs has more than tripled, rising to a 30-percent inclusion rate in 2023 compared to only 9 percent in 2020. 
  • Of the Nordic countries, Denmark and Finland stand out as having the highest proportion of companies utilizing E&S metrics in their executive remuneration programs. 
  • The proportion of Nordic companies incorporating E&S metrics in their short-term incentive programs is higher than in their long-term incentive programs. In 2023, approximately 25 percent of companies included E&S metrics in their STIPs, compared to the 16 percent that used E&S metrics in their LTIPs. 
  • It is common among companies listed on Nordic’s main indices using E&S performance metrics in their executive compensation schemes to incorporate a mix of both environmental and social performance metrics. 
  • The most common environmental performance metric among companies listed on the Nordic main indices relates to reduction in greenhouse gas emissions, and the most common social metric concerns increase in gender diversity. 

If you are not a subscriber, please contact sales@iss-stoxx.com (for institutional investors) or contactus@isscorporatesolutions.com (for corporations) to learn more about accessing bespoke governance research. 


By:
Lena-Marie Jorelle
Noel Rodhe

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