Environmental, social and governance trends in the ASX100

For the fourth consecutive year, Guerdon Associates and sister firms in the GECN Group undertook research on the use of environmental, social and governance plus other non-financial (ESG Plus) metrics used in executive incentive plans across global markets.

Of the entire ASX 100, 86% of companies have disclosed ESG measures in their incentive plans for FY22.

Of the number of companies which have linked ESG measures, 9% have measures in the long-term incentive (LTI) plans.

The most popular form of capturing ESG measures in executive variable remuneration is in the short-term incentive (STI) plan, with 88% of companies reporting ESG measures in their STI plans. However, 9% of companies with ESG measures disclosed have both STI and LTI plans linked to ESG metrics.

‘Social’ measures are the most prevalent type of ESG measure in the ASX100 for FY22, which remains the trend from past years. Of the ‘social’ measures, measures related to ‘employee health & safety’ were the most frequent.

Keep a look out for the full report that will reveal global trends, and additional articles in the coming months which will dive deeper into the details of ESG measures, breaking it down further.

To receive the report when it is published, please contact us at info@guerdonassociates.com

You can review past reports HERE:

© Guerdon Associates 2024
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