May Monthly Briefing: Incentivising Sustainability Our views on what matters |
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As the world embarks on climbing out of lockdown, early signs of “building back better” provide some hope. The last few weeks have seen some noteworthy corporate commitment around raised ambition, inclusive growth and the importance of partnership: Danone which seeks AGM approval next month to become the first listed French “entreprise à mission”; JP Morgan CEO Jamie Dimon calling the crisis the wake up call to build a fairer society; and Intel’s 2030 Goals. The Canadian government is also using the crisis as an opportunity to re-open the economy with sustainability criteria embedded, with its loans for big business that demonstrate sustainability commitments. In this Monthly Briefing issue, our main article focuses on ‘Incentivising sustainability: can you force your CEO to care about ESG?’ and how investor-focused ESG ratings increasingly expect to see an explicit link between ESG metrics and executive pay. The accompanying article ‘Making sustainability pay: company examples of ESG incentives’ shares a variety of corporate approaches. With the majority of ESG funds having now proven their resilience through economic downturns, is this the moment when institutional investors will embrace a more long-term and holistic view of value creation and when we all start to experience the benefits of working with, and buying from, sustainable and responsible businesses? |
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| | Britvic signs for £400m sustainability-linked loan A first in the UK and another example of the increasingly popular credit facilities, with pricing linked to sustainability targets. Is this a sign of the times? Read More |
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| Executive pay becoming virus focal point for ESG investors How the pandemic is upping investor interest and action on salaries, bonuses and incentives for executives. Read More |
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| Build back better: Canadian government offers coronavirus loans for big businesses that demonstrate sustainability commitments How Canada is using the opportunity to re-open the economy with sustainability criteria embedded within recovery plans to create a more resilient future. Read More |
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| Incentivising Sustainability: can you force your CEO to care about ESG? Companies need to think beyond the short term, and to consider the ESG factors that impact the longer-term reputation, competitiveness and profitability of the business. Read More |
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| Making sustainability pay: company examples of ESG incentives A growing number of companies are linking executive pay to sustainability metrics; here are some examples of different companies’ approaches. Read More |
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| Webinar Invitation Learning from lockdown: A “new normal” for social impact? Join us for an afternoon filled with exciting content, group discussions and the opportunity to hear from social impact professionals from RB, SAGE, Siemens, ASDA, Experian and more. Read More |
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| Webinar Invitation Carbon Risk: the burning issue – carbon risk and opportunity reporting Join us on the 16th of June to discuss and share practical tips around: establishing greenhouse gas emission accounting practices; developing a credible strategy and targets; and responding to the TCFD recommendations. Sign up here |
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