 The Importance of Mobilising ESG with IncentivesPoul Lykkesfeldt () and Laurits Louis Kjaergaard () Chapter Chapter 37 in Investor Relations and ESG Reporting in a Regulatory Perspective, 2022, pp 291-295 from Springer Abstract: Abstract People respond to incentives, which we explore in this chapter. It is evident that ESG must be integrated into the business strategy and not only be an independent focus area. Therefore, the employees that serve as the company’s most important stakeholder must be involved in a successful implementation. With an integrated strategy, the company is also recommended to have a balanced business scorecard that relates to both the financial and non-financial priorities. Today, we suspect most variable remuneration is based on reaching financial quantitative targets. There is a common phrase within incentive structures: “You get what you measure”, i.e. if a company only decides to track and incentivise on revenue performance, then sales of the company will likely go up. ESG incentives are like traditional incentive measures; they should support and reinforce strategy and direction. As a result, the IRO should embrace relevant ESG goals and objectives and consider a company’s quantification of specific ESG issues. Keywords: ESG incentives; Mobilising ESG; Window dressing; Greenwashing; SMART incentives; Periodic goals; Long-term ESG (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-05800-4_37 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-05800-4_37 Access Statistics for this chapter More chapters in Springer Books from Springer |
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