Volkswagen says it plans to link top executives’ bonuses to ESG targets.
VW will seek shareholder approval for the updated remuneration system at its annual general meeting next year, Chairman Hans Dieter Poetsch told Bloomberg News. Poetsch added, “Integrating ESG criteria into the bonus calculations for our management board offers concrete incentives to pursue the sustainability goals we have outlined. The progress of ESG initiatives will be tracked via key metrics including internal decarbonization and diversity indices”.
Executives’ compensation includes the bonus, a fixed salary and a long-term incentive plan linked to share-price performance.
The company estimates its cars account for 1% of global carbon-dioxide emissions. The group has pledged to become carbon-neutral by 2050.