Increase in Global Adoption of ESG Metrics in Executive Pay

Last year saw continued growth in the global adoption of ESG metrics in executive incentive plans, with Europe continuing to lead the way, according to a survey report by insurance advisor Willis Tower Watson.

A total of 77% of listed companies include ESG metrics in either their annual or long-term incentive plans in 2022, up from 68% in 2021.

Nine-in-ten European companies now include at least one ESG metric in their executive incentive plans and the region continues to lead the way on ESG metric adoption.

This marks an increase from 79% in 2021, with Germany and France the highest adopters at 98% and 100% respectively.

Furthermore, the worldwide prevalence of environmental metrics has almost doubled year-over-year, rising from 22% in 2021 to 40% in 2022.

Read more articles like this on Regulation Asia’s sister publication, ESG Investor.

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