Thursday, 21 June 2012
Turning Green: Linking Executive Pay to Sustainability - 21st Jun...
Turning Green: Linking Executive Pay to Sustainability - 21st Jun...: I wrote about this subject in our October e-newsletter last year, that the volatility of markets had started to force boards to rethink the ...
Linking Executive Pay to Sustainability - 21st June 2012
I wrote about this subject in our October e-newsletter last year, that the volatility of markets had started to force boards to rethink the way senior executives are remunerated, and many began to consider linking incentives to internal company targets instead of shareholder return.
Intel links employee compensation to sustainability results and is doing this for its entire workforce. Since 2008, every employee’s annual bonus is calculated on the basis of the firm’s performance on sustainability measures like product energy efficiency, completion of renewable energy and clean energy projects, and the company’s reputation for environmental leadership.
National Grid’s compensation model shows how to embed sustainability practices into a company’s DNA. Like Intel, National Grid has tied CEO and other executive compensation to performance on the company’s greenhouse gas (GHG) reduction goals – and these are aggressive goals: an 80% reduction by 2050, with 45% by 2020.
Xcel Energy’s compensation for executive officers is tied to GHG reductions but they go further by disclosing details of the targets and compensation in its annual report, and not just in sustainability reports. Important here is getting the key information directly to the investment community and secondly, it demonstrates that Xcel sees sustainability as a core business issue. This is demonstrating smart practice that will no doubt empower employees throughout the organisation.
Further examples were outlined by Environmental Leader this month in an interesting article covering details of a report from the Conference Board about how US companies are tying executive compensation to sustainability performance.
The Conference Board highlight how sustainability issues are becoming increasingly common in the boardroom, particularly as the volume of shareholder proposals regarding environmental and social policies has grown. One area receiving attention from directors is the link between sustainability performance and executive compensation. The Director Notes discusses corporate directors’ increasing interest in sustainability matters, progress toward a notion of performance assessment that incorporates nonfinancial elements, and companies’ efforts to explain how they link incentive awards to sustainability targets in response to shareholder proposals.
Incorporating nonfinancial elements is a perpetual challenge, one we attempted to deconstruct in the article written by Kate Bennet for those who missed it - here is a link Assessing and Communicating the True Value of Corporate Sustainability Initiatives.
Have a great weekend!
Intel links employee compensation to sustainability results and is doing this for its entire workforce. Since 2008, every employee’s annual bonus is calculated on the basis of the firm’s performance on sustainability measures like product energy efficiency, completion of renewable energy and clean energy projects, and the company’s reputation for environmental leadership.
National Grid’s compensation model shows how to embed sustainability practices into a company’s DNA. Like Intel, National Grid has tied CEO and other executive compensation to performance on the company’s greenhouse gas (GHG) reduction goals – and these are aggressive goals: an 80% reduction by 2050, with 45% by 2020.
Xcel Energy’s compensation for executive officers is tied to GHG reductions but they go further by disclosing details of the targets and compensation in its annual report, and not just in sustainability reports. Important here is getting the key information directly to the investment community and secondly, it demonstrates that Xcel sees sustainability as a core business issue. This is demonstrating smart practice that will no doubt empower employees throughout the organisation.
Further examples were outlined by Environmental Leader this month in an interesting article covering details of a report from the Conference Board about how US companies are tying executive compensation to sustainability performance.
The Conference Board highlight how sustainability issues are becoming increasingly common in the boardroom, particularly as the volume of shareholder proposals regarding environmental and social policies has grown. One area receiving attention from directors is the link between sustainability performance and executive compensation. The Director Notes discusses corporate directors’ increasing interest in sustainability matters, progress toward a notion of performance assessment that incorporates nonfinancial elements, and companies’ efforts to explain how they link incentive awards to sustainability targets in response to shareholder proposals.
Incorporating nonfinancial elements is a perpetual challenge, one we attempted to deconstruct in the article written by Kate Bennet for those who missed it - here is a link Assessing and Communicating the True Value of Corporate Sustainability Initiatives.
Have a great weekend!
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Tuesday, 17 April 2012
University Guide for the Built Environment - April 2012
17 April 2012 – The Fifth Estate, Australia’s leading online newspaper for the sustainable property industry, has today published an investigative report and an ebook that demonstrate a revolution in the way sustainability is taught and integrated into university courses related to the built environment. Click Here
Monday, 2 April 2012
Turning Green April 2012 e-newsletter
Turning Green Green Scene Career E-Newsletter April 2012
Green career transition tips, the Australian Sustainability Conference and Exhibition 2012, sustainable capitalism and ethical sourcing – all in this month’s April 2012 Green Scene Career E-Newsletter click here
Saturday, 3 March 2012
My Career Article featuring Turning Green March 2012
The day Lisa Tarry, a Gen X boss with baby boomer, Gen X and Gen Y staff, was told by her youngest employee, ‘‘Let’s just Skype about the project over the weekend’’, she learnt a lesson about how inter- generational workforces place a special kind of pressure on a manager’s leadership style …… read more here - My Career Article March 2012
Monday, 6 February 2012
Turning Green February 2012 e-newsletter
2012 is to be kickstarted with some stimulating ‘masterclasses’ – the Republic of Everyone in conjunction with UK based Futerra Sustainability Communications Agency Futurra is offering a range of masterclasses encouraging sustainable behaviours. We also see Carbon Training International go from strength to strength with the Applied Energy Efficiency 2-day course being offered over the next couple of months as part of the Carbon Management Masterclass Series. Access the Green Scene Career E-Newsletter here
Friday, 16 December 2011
Turning Green December 2011 e-newsletter
Turning Green would like to wish all our clients and candidate a very restful holiday season and we look forward to working with you in 2012. This Christmas 2011 e-newsletter features two articles of interest written by our e-newsletter contributors Jodi Smith and Kate Bennett.
Jodi’s article highlights that venture capital investment incentive, particularly in cleantech, is integral to ensuring that Australia capitalises on its natural resources and scientific expertise. It also highlights a recent report by Australian Cleantech, which profiled over 767 Australian cleantech companies, and contained data indicating that as a sector, revenue topped $22 billion (which equates to nearly half of the revenue of the construction industry in Australia), with an employee base of 25,000+. Figures also showed a 31.4% increase in average total revenue per cleantech company in Australia between 2009-2010. According to the report, the majority of cleantech companies are in the water industry, followed by the energy efficiency sector, solar and then waste.
Kate’s article tackles the issue of communicating intangibles. Her article cleverly cuts through the plethora of tools, frameworks and approaches to identify and outline the key steps and requirements for evaluating an organisation’s intangible assets and social impact. Kate also highlights in the resources section, a great book titled The Green Scorecard: Measuring the Return on Investment in sustainability initiatives. The book tells us that in order to succeed, companies must adopt a results-based, return on investment (ROI) focus that helps them identify, develop and implement green projects that add value-from an economic, environmental and societal perspective.
We hope you enjoy and look forward to working with you in 2012.
