ESG-linked pay incentives seen as top lever for corporate climate action
Other levers include having a climate transition plan and an internal carbon price.
CDP’s inaugural Corporate Health Check has found that nearly 80% of the companies that are on track to meet their climate targets link sustainability KPIs to executive pay, making this a top lever for climate action.
The Corporate Health Check assesses the climate-related targets and initiatives of nearly 25,000 companies worth 67% of global market value to identify the most impactful transparency and governance strategies for sustainable business.