Semler Brossy's "ESG + Incentives report" benchmarks the types of "ESG" metrics being used by the Fortune 200 in their executive compensation programs, with the metrics most commonly used being characterized as "operational" metrics (i.e., aligned with day-to-day business results, e.g., customer satisfaction) as opposed to "sustainability" metrics (i.e., longer-term broad social/economic stability, e.g., D&I), as shown here (n=116):
Operational metrics are more likely than sustainability metrics to be incorporated as a weighted performance metric. D&I, the most common sustainability metric, is most commonly incorporated as part of a discretionary framework.
See our prior report on Semler Brossy's inaugural ESG+Incentives report; these prior reports: "Linking Exec Pay & Sustainability? Consider This," "Benchmarking ESG Incentive Plan Metrics," "Sustainability & Executive Compensation," and "Executive Compensation: E&S Performance Metrics"; and additional resources on our Executive Pay page. This post first appeared in the weekly Society Alert!