INSIGHTS

COMMUNITY ARTICLE

ESG Metrics in Executive Incentive Plans

In this report, Criticaleye Advisory Member, EY, discusses the way organisations are incorporating ESG metrics into incentive plans and how this has changed over the last three years.

Key points include:

In 2019, the number of FTSE 100-listed companies that employed an ESG measure was around 70 percent, compared to under 50 percent in 2016.
In a three-year period, organisations focused more on implementing environmental measures than social or governance.
Companies must avoid addressing ESG as a box-ticking exercise.