Three out of four global listed companies already use ESG metrics for incentives


F.R.| 77.7% of listed companies in Europe and the US included ESG metrics in their 2022 annual reports on long-term incentive plans, 68% more than the previous year, according to the 2022 Global Report on ESG Metrics in Executive Incentive Plans prepared by Willis Towers Watson (WTW) based on an analysis of 1,073 such reports on both sides of the Atlantic.

In the case of Europe, 90% of the sample now includes at least one ESG metric in their executives’ incentive plans, 79% more than the previous year. France – 100% – and Germany – 98% – are the countries most likely to do so.

In terms of thematic metrics, “environmental metrics almost doubled globally, year on year, increasing from 22% to 40%.” While significant regional disparities in the use of climate and environmental metrics persist, WTW experts expect “adoption to increase in all regions amid pressure from institutional investors and the regulatory environment.”

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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.