September 9, 2021
The number of companies in the EU with ESG KPIs in compensation packages has in fact jumped from 4 percent in 2008 to 34 percent in 2020, according to a recent report by Diligent. The energy (59 percent) and utilities (64 percent) sectors had the highest amount of companies incorporating ESG metrics in their compensation plans.
“At the end of the day, you get what you incentivize,” said DiGuiseppe. Companies should therefore ensure ESG KPIs in executive compensation plans clearly align with the overall ESG strategy of the business to be most effective, he said.
By Aoife Morgan, Journalist, Financial Director
Kira Ciccarelli is the Lead Research Specialist of the Diligent Institute, the modern governance think tank and global research arm of Diligent Corporation. In her role, Kira researches and produces high-level modern governance reports, blog articles and podcasts designed to inform director decision-making and highlight best practices.
Before joining Diligent, Kira worked in a variety of data-driven research roles, including analyzing global aid funds to the UN Sustainable Development Goals (SDGs) and compiling a meta-analysis of political experimental findings for the Analyst Institute. She holds a BA in Public Policy from the College of William & Mary.