Per this study, more companies are incorporating executive bonuses around ESG, sustainability, carbon neutrality and diversity.

 

  • More companies are linking executive pay to ESG performance – the percentage grew from 66% in 2020 to 73% in 2021
  • Yet, only 17% believe these incentives are highly important for the company to achieve its ESG goals
  • Opinion: The above disconnect might suggest executives recognize the ESG program in their company has developed momentum and is likely to happen; and negotiating it into their compensation plans is a ‘safe bet’.  If so, this signals comfort and confidence in ESG being a key component of a company’s mission.

 

  • Companies with carbon footprint and emission reduction goals nearly doubled, from 10% in 2020 to 19% in 2021

 

  • Diversity, equity and inclusion goals rose nearly 50%, from 35% to 51%

 

As to the traditional innovation bell curve we all know about, the above numbers suggest a maturing of sustainability / ESG in corporations

  • ESG adoption has passed the Early Majority stage and is into the Late Majority stage
  • Diversity/equity/inclusion is in the Early Majority stage
  • Carbon/emission reduction has passed the Innovator stage and is into the Early Adopter stage