Sustainability is now shaping executive pay at scale

Nearly 80% of major global firms now link executive pay to sustainability performance—a sharp signal that ESG is no longer a side conversation, but a boardroom imperative. According to KPMG’s review of 375 large companies, most are tying bonuses to material issues like carbon emissions, workforce diversity, and safety.

Notably, 37% of firms integrate ESG into both short- and long-term incentives, with EU companies leading the charge in long-term thinking. The message is clear—sustainability is now embedded in the architecture of strategic decision-making.

When pay reflects ESG priorities, leadership stays aligned with long-term value and stakeholder trust. This is governance with purpose.

Read the full article to see how top companies are rewriting incentives for impact.