Sustainable business and executive pay
Sustainable business and executive pay

The following Share Incentives practice note provides comprehensive and up to date legal information covering:

  • Sustainable business and executive pay
  • What is sustainable business and ESG issues?
  • ESG reporting
  • Sustainable business and executive pay
  • Investment Association’s response to sustainability in relation to executive pay
  • The Institutional Shareholder Services’ response to sustainability in relation to executive pay
  • PIRC’s response to sustainability in relation to executive pay
  • PLSA’s response to sustainability in relation to executive pay
  • Glass Lewis’ response to sustainability in relation to executive pay
  • ICSA’s response to sustainability in relation to executive pay
  • More...

Sustainable business and executive pay

What is sustainable business and ESG issues?

Sustainable business is a broad concept and encompasses the impact an entity is having on the environment, but also on society more widely. Sustainability is becoming an increasingly important part of the corporate agenda and businesses are coming under pressure to employ responsible operational and strategic practices—especially in light of the climate change targets that stakeholders and governments are focussing on. This Practice Note provides a high level picture of some of the ways that the sustainability cause has impacted executive pay. It also reports on ongoing changes in guidance released by the government and the main institutional investor bodies. For further information on sustainable business more generally, see: Sustainable business toolkit.

ESG reporting

Heightened emphasis on transparency and accountability through corporate governance and disclosure has renewed the focus on environmental, social and governance (ESG) impacts. There is increasing interest in the ESG performance of companies by various stakeholders. A range of mechanisms exist to shape corporate social responsibility (CSR) and foment voluntary reporting by companies on their ESG performance. Adhering to one such framework heightens credibility, and a proactive approach to sustainability presents opportunities while ensuring a company’s preparedness to embrace evolving legal requirements. Stock exchanges are also encouraging voluntary disclosure on ESG. At the RIO+20 conference a group of stock exchanges held forums to explore how

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