More than four in 10 (43 per cent) employers have implemented, started to implement or are considering climate metrics for their executive incentive plans, while another 27 per cent may consider these in the future, according to a new survey by Willis Towers Watson.
The survey, which polled more than 90 North American companies, found nearly half (46 per cent) said they expect their employees to play a role in the delivery of climate strategy. Indeed, a third (33 per cent) agreed that executive compensation should be tied to delivery of climate strategy, while 81 per cent said it’s important to integrate climate strategy into their employee value proposition.
Read: Manulife Financial linking executive team goals to climate action
“Starting with a push to achieve net-zero emissions, employers are now taking steps to embed climate actions throughout their organizations,” said Shankar Raman, senior director of human capital and benefits at Willis Towers Watson, in a press release. “Engaging employees and executives in efforts to achieve climate goals is challenging but critical.”
About two-thirds (62 per cent) of respondents said they’ve implemented, started to implement or are considering implementing new specific climate-related teams or roles and another 13 per cent said they may consider doing so in the future. A third (34 per cent) said they’ve placed, started to place or are considering placing a chief sustainability or environmental officer on the executive committee, while 27 per cent said they may consider doing so in the future.
Read: CPPIB taps Deborah Orida as chief sustainability officer
Additionally, slightly more than half (53 per cent) of respondents said they’ve implemented, started to implement or are considering employee engagement and listening activities to understand employee attitudes on climate, while another 21 per cent said they may consider these for the future.
Many of the companies polled are making progress with their climate efforts, according to the survey. Some 43 per cent said they’re currently developing environmental and climate strategy objectives. Others indicated they have a clearly defined strategy to address environmental and climate risk priorities (28 per cent) and quantifiable targets to address these risk priorities (28 per cent).
In addition, 27 per cent said they’re already measuring achievement against targets or they’re exploring how to address environmental and climate issues. A similar percentage of respondents said they’ve communicated a roadmap to achieve their goals to employees.
Read: Nike releases new DEI goals, ties executive pay to broader ESG efforts