Below is an excerpt from ISS Corporate Solution’s recently released paper “Incentivizing What Matters”. The full paper is available for download from the ISS Corporate Solutions (ICS) online library.
As companies begin incorporate sustainability into their strategies, designing executive compensation plans with meaningful Environmental, Social, and Governance (ESG) performance metrics requires a thorough approach involving materiality assessment, multi-stakeholder engagement, ESG strategy development, impact assessment and data analysis.
ISS Corporate Solutions’ (ICS) compensation and sustainability advisors teamed up to explore ESG metrics in executive compensation in Europe and the U.K., using ISS data to:
- Examine the current state of ESG metric utilization
- Provide a framework for identifying material ESG factors
- Offer practical tips on how to incorporate ESG factors into executive incentives
By Aya Batyrbekova, Vice President, EMEA Advisory ISS Corporate Solutions Jun Frank, Executive Director, Advisory West, ISS Corporate Solutions.