Many more institutional investors are now incorporating sustainability as one of the key reasons for making any investment decisions. This is borne out by the business research conducted by Callan on institutional investors where 43% confirmed to do so. This is 21 percentage points higher than the corresponding figure for 2013. But mere talk is not enough as companies need to align such intentions with the ESG (Environmental Social Governance) goals. Bonuses need to tied up with sustainability for the big strategic moves. To take this on, boards must ask themselves certain tough questions beginning with how the company can differentiate from the rest. Another is whether core competencies exist within the company to leverage such situations. And finally, whether the return on investment can justify the steps currently being undertaken.

Source:https://hbr.org/2018/11/how-to-tie-executive-compensation-to-sustainability

Uploaded Date:26 November 2018