As more consumers begin to value companies' sustainability policies and employers' attitudes toward environmental science, a greater portion of executive compensation should be tied to sustainability success, according to an op-ed penned by leaders at the business consulting firm Semmler Brossy in the Harvard Business Review.
In the 1980s, executives began to see more of their compensation to metrics reflecting quality control, an issue that gained widespread attention at the time. Although some may believe there is not as strong a business case to be made for sustainability as there is for quality control, there are both moral and financial incentives for being environmentally conscious, the op-ed authors contend.
Not only can sustainability initiatives reduce energy consumption and waste over time, but they can also improve a company's reputation with customers and employees. Tying these programs to executive compensation could demonstrate a top-down culture of environmental consciousness that will make sure rhetoric is backed up by action, the authors argue.
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