Linking Executive Pay to ESG Targets

Linking executive pay to sustainability targets aligns leadership incentives with long-term organisational goals related to environmental, social, and governance (ESG) priorities. This practice can help to ensure that executives are motivated to drive sustainable growth, reduce environmental impact, and promote social responsibility alongside financial performance. 

It also signals to stakeholders (investors, employees, and customers) that the organisation is serious about embedding sustainability into its core strategy.