August 14, 2023 Executive Compensation ESG & Human Capital Management Reports

2023 ESG + Incentives Reports S&P 500 Analysis

Examining the prevalence of various ESG metrics in incentives across S&P 500 companies

Our new report shows how ESG metric prevalence in incentives continues to increase among S&P 500 companies but at a slower rate than prior years, as market focus shifts to refining existing ESG metric types and structures rather than increasing adoption.

While ESG has become highly politicized, the principles behind the movement (corporate responsibility, diversity, sustainability, etc.) remain critical to long-term company performance. We expect the dialogue within companies and among stakeholders regarding these metrics to shift toward how these measures are being used, including the following:

  1. Have we appropriately focused on the material and strategically important measures for our success?
  2. Are the measures appropriately weighted relative to other strategic priorities?
  3. Do employees and stakeholders understand the measure’s significance & how they fit in long-term strategy?
  4. Is there appropriate rigor in defining the goals and assessing results to ensure that we are making needed progress?

Contributors

John Borneman

Matthew Mazzoni

In Collaboration With

ESGAUGE Provided data for this report

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