2022 Global Trends in ESG

Every year, Guerdon Associates’ global GECN Group publishes its research on global trends on the use of ESG plus other non-financial measures in global executive remuneration.

The report titled “2022 Global Trends in ESG Incentives: Executive ESG pay not relenting” was published and made available to all subscribers in December.It shows the trend of linking executive remuneration to ESG metrics is increasing and set to continue.

Significant findings from our research include:

  • More than three-fourths of large companies now incorporate ESG measures into their incentive plans
  • Europe, the U.K., Australia, and South Africa lead the market with over 80% of large companies incorporating ESG measures into their incentive plans
  • By sector, Utilities and Materials lead the market with more than 90% of companies using ESG measures in compensation, which has not changed materially from last year
  • Social measures continue to be the most prevalent type of ESG measure used in incentives, gaining a further 5 percentage points since last year, from 67% to 72%
  • Globally, 60% of companies using social measures in incentives focus on diversity, up 15 percentage points from last year
  • Environmental measures made the most significant gains in prevalence, up by 20 percentage points in one year from 30% to 50% of companies
  • More than one-quarter (28%) of global companies with ESG measures now use those measures in their long-term incentive plans, which represents an increase of 11 percentage points from 2020

To read the full report, past reports, and deep dives into ESG trends in remuneration, see HERE.

© Guerdon Associates 2024
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