Firms link pay to carbon action
Nearly half of Europe’s largest corporations are now linking executive remuneration with climate action, according to the latest report released by the Carbon Disclosure Project (CDP).
The European Report: Higher Ambition, Higher Expectations found that 47% of the 859 companies surveyed now offer monetary incentives to their c-suites and boards, while 1 in 4 financially incentivize meeting targets.
The report also found that by 2020, 72% of the surveyed companies plan to use different climate scenarios to inform business strategies. Such scenario analysis helps companies consider their performance in different ‘alternative worlds’, such as if global warming is limited to 2°C or lower as a result of vastly reducing emissions.
“The next decade is vital if our shift to a sustainable economy is to be successful, and companies lie at the heart of this transition. Companies on the A List show that environmental and economic leadership go hand in hand, with the A List-based STOXX Global Climate Change Leaders Index having outperformed the STOXX Global 1800 by 5.5% per annum from 2011 to 2019,” CDP’s Europe Managing Director Steven Tebbe said.
The release of the report follows findings that corporate emissions reductions in 2018 in Europe equalled Australia’s annual carbon footprint.
The full report can be found here