How climate change can be addressed through executive compensation

February 8, 2021 by  
Filed under Business, Eco, Green

Comments Off on How climate change can be addressed through executive compensation

How climate change can be addressed through executive compensation Nidia Martínez Mon, 02/08/2021 – 00:44 Environmental, social and governance (ESG) issues are increasingly becoming incorporated across all aspects of organizations, including business strategies, operations and product/service offerings. Recent global research of boards of directors by Willis Towers Watson found that 70 to 80 percent of respondents have identified ESG priorities and developed ESG implementation plans. However, only 48 percent have fully incorporated ESG into their businesses, indicating that organizations are at different stages in their ESG journeys. While the most cited reason for taking ESG actions is that they see it as the right thing to do, over three-quarters (78 percent) of respondents indicate that they believe ESG is a key contributor to strong financial performance. Although many organizations have adopted ESG principles, executives and boards could do more to meet the demands of institutional investors, customers, employees and other stakeholders especially in regard to climate change risk. Some 41 percent of respondents ranked the environment — including climate change — as their leading ESG priority; and 43 percent anticipated it will remain No. 1 in three years. A particularly effective way to advance ESG principles is through redefining responsible leadership. And one of the most useful tools in prompting leaders to address climate change and make their organizations more sustainable is through compensation and incentive programs, and the incorporation of new climate-action metrics into such programs. Rising demand for sustainable solutions The drive to make companies more climate resilient and sustainable started with institutional investors, long aware of climate risk. Consumer awareness, likewise, has grown significantly as climate change becomes more apparent in their daily lives amid news stories about extreme weather, such as wildfires. Many consumers are more conscious than ever when choosing brands whose policies meet their own interests. For some, this attitude carries over as a factor in the companies they choose to work for, further encouraging organizations to incorporate climate action and sustainability, among other ESG criteria, to help attract and engage the best talent. Only 48% of CEOs are implementing sustainability into their operations. Despite this backdrop, many boards have not incorporated climate awareness into their organizations yet. Analysis of company public disclosures conducted by Willis Towers Watson shows that while about 11 percent of the top 350 European companies have CO2 emissions linked to their incentive plans, only 2 percent of US S&P 500 companies have it. As we look forward, nearly four out of five (78 percent) survey respondents plan to change their use of ESG priorities in executive incentive plans over the next three years, with 40 percent looking to introduce ESG measures into long-term incentive plans and nearly one-third looking to increase the prominence of environmental measures. Executives acknowledge need for climate action Despite the lack of environmental and climate metrics in executive compensation and rewards programs, executives acknowledge the need to address climate risk. According to a 2019 survey by the United Nations (UN) and Accenture , 71 percent of CEOs believe that — with increased commitment and action — business can play a critical role in contributing to the UN’s Sustainable Development Goals. Yet only 48 percent of CEOs are implementing sustainability into their operations, consistent with the findings from Willis Towers Watson’s research as noted earlier. Our research found that the most common challenges cited when incorporating ESG metrics into executive compensation plans include setting targets (52 percent), identifying (48 percent) and defining (47 percent) performance metrics, and establishing time periods to affect meaningful change (35 percent). Given these responses, it is fair to assume that the lack of standardized climate change metrics is holding back the wider adoption of including climate action in executive compensation. Furthermore, every business has a measurable carbon footprint. Therefore, boards can make reducing that footprint — with the ultimate goal of reaching carbon neutrality — a metric for their organizations and incorporate it into executive compensation. As every industry is different, the metrics to incentivize climate action need to be customized by sector, as highlighted through the industry-specific standards provided by the Sustainability Accountability Standards Board or other climate change disclosure frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD). As organizations refine their climate change strategies and disclosures, they can start to consider the linkages to their executive compensation programs. Multiple ways to link executive pay to climate action As indicated by our research, more boards will be linking relevant climate action measures to executive incentive plans over the next few years. There are a few ways to make the connection, ranging from underpins to modifiers to short-term incentive (STI) plans to key performance indicators (KPIs) within long-term incentive (LTI) plans to standalone hyper-long-term incentive plans. An underpin (or minimum funding threshold) is most appropriate in the case of a company with meaningfully high CO2 emissions that newly introduces climate sustainability metrics. It should include a threshold or basic level of CO2 emissions required for some payout under other incentive plan metrics to occur. An individual performance rating modifier can be tailored to an individual’s role and improve line-of-sight for more qualitative or strategic climate change objectives, but it may not promote collaboration by participants to achieve a common material goal. Plan modifiers are standalone metrics that consider the “how” and the “what.” A modifier allows for the entire STI or LTI award payout to be increased or decreased by a certain percentage. If the underlying target is met, then no modification would be made and the underlying STI or LTI award would be made based on the other metrics. KPIs provide a direct measure that reinforces the importance of climate change and usually are easily communicated, quantifiable objectives. A more highly weighted metric requires clear linkages to funded metrics, but the KPI needs to have a material weighting to demonstrate its importance to plan participants and external stakeholders. KPIs in LTI plans introduce standalone climate change metrics that are most appropriate if there is a longer time horizon to produce measurable results (such as carbon emission reductions). A drawback, however, is the length of performance period may dilute momentum to achieve sustainability results, the key drivers of LTI plan performance, and could de-emphasize financial/market performance. Standalone incentive plans are separate from other incentive plans, with the sole purpose of measuring sustainability performance and reducing climate risk (such as a hyper-long term that aligns with the sustainability strategy). Such plans encourage participants to take a longer-term view of performance, but they may be difficult to communicate or viewed as duplicative of other incentives. Because most CO2 emission reduction targets tend to have longer-term horizons, the typical annual and three-year incentives may not be directly aligned with these goals. Nonetheless, even short-term incentives can have a significant impact in terms of corporate culture. But to encourage longer-term decision making (for example, a target period of 10 years) often associated with large capital investments, and to emphasize its prominence, companies could introduce a separate, hyper-long-term incentive plan focused solely on CO2 emission reductions. Modern incentive plans are based on time as a constant (such as one- or three-year performance periods) and performance as a variable (achievement of threshold, target, stretch goals). However, a hyper-LTI could allow a different variation, in that the performance goal could be treated as constant (CO2 emission reduction of 50 percent) and time could be treated as the variable. Thus, encouraging early achievement of goals via incentive upside, and conversely punishing delayed achievement of CO2 reduction targets with an incentive downside. Climate-related measures can provide a return on investment through reduced energy consumption and waste in addition to the goodwill of stakeholders such as investors, customers and employees. Implementing such incentive arrangements may not be straightforward. Companies will need to consider whether and how best to rebalance other components of pay, how to deal with disclosures of mega-LTI grants, and ensure that targets are sufficiently stretched so that proxy advisers do not perceive these plans to have soft targets as way of boosting executive pay. Large institutional investors have supported proposals for long-term alignment between CO2 emissions and incentives, provided that the quantum and opportunity are properly calibrated, and mechanics are carefully laid out. To convince skeptics, focus on the bottom line For boards and management that are a little more suspect of climate sustainability, consider that climate-related measures can provide a return on investment through reduced energy consumption and waste in addition to the goodwill of stakeholders such as investors, customers and employees. As the World Economic Forum’s January 2019 publication on effective climate governance for boards sets out, monetary incentives for senior management teams should be tied to long-term organizational goals that contribute to resilience and prosperity over time. There is little to prevent linking climate-risk and opportunity-related factors to compensation if they are material to an organization’s long-term sustainability, value creation and risk mitigation. Executive compensation always has been an effective tool to foster innovation. Now we must marshal its power to encourage the march toward a climate resilient future. Pull Quote Only 48% of CEOs are implementing sustainability into their operations. Climate-related measures can provide a return on investment through reduced energy consumption and waste in addition to the goodwill of stakeholders such as investors, customers and employees. Contributors Ryan Resch Topics Leadership Finance & Investing Risk & Resilience WEForum Featured in featured block (1 article with image touted on the front page or elsewhere) Off Duration 0 Sponsored Article Off Illustration of a deal being closed. Shutterstock kentoh Close Authorship

See the rest here:
How climate change can be addressed through executive compensation

6 of the best places to donate your things

February 21, 2019 by  
Filed under Business, Eco, Green, Recycle

Comments Off on 6 of the best places to donate your things

When you are going through the tedious task of cleaning out your closets, it’s always nice to know that you can box up all of the items you no longer use and donate them to charity to help those in need. Unfortunately, there are charities out there that seem to prioritize profit over helping people. But how can you tell which organizations will use your donations effectively, and which ones are just looking to make money? The used clothing market is bigger than you might think — over $4 billion — so there is a lot of money to be made if that is a charity’s focus. According to Charity Choices — a website committed to providing donors with facts about charities — many organizations like Goodwill and the Salvation Army sell their donations in bulk and then use the money to fund their various programs. Many others will use donations like clothing, cars and furniture in their own programs to help those in need. Related: Eco-friendly options for decluttering waste Ultimately, what matters is that your donated goods are actually used for charity . Here are some of the best places to donate your used items. Just remember to contact them first or research their websites to find out the specifics about what they do and do not accept. Dress For Success This international organization is committed to helping women land a job and thrive in the workplace by providing gently-used, work-appropriate clothing. You can donate new or gently-used suits, business apparel, shoes, handbags, cosmetics and jewelry at an affiliate near you. For men’s clothing, you can donate to Career Gear to help those in poverty get a job, learn skills and contribute to their family and community . Operation Paperback If you have old books taking up space in your closets or on your shelves, a great place to donate them is Operation Paperback . This organization donates books to troops serving overseas, veterans and military families. All you have to do is sign up on the website and input the genres you have, then it will give you a customized address list and send you a shipping kit so you can send out your used books. Another option for donating books is your local library . Libraries are often more than happy to accept gently-used books, CDs and DVDs. They will either put the items on their shelves or sell them to raise funds for library events and activities. They also accept donations of old computers that are still in usable condition. Habitat For Humanity ReStore Operated by Habitat For Humanity, the ReStores sell new and gently-used home items like furniture, building materials and kitchen appliances. If you have one in your area, it will pick up any large items you wish to donate, or you can drop off the smaller items. Then, it sells the items to the public for “a fraction of the retail price.” Related: This new initiative aims to sustainably recycle your old bras Habitat For Humanity also accepts donations of used tools like tape measures, hammers, screwdrivers and wrenches for its construction projects. You can also donate your car to the organization if you are looking to get rid of a junker. It accepts cars, trucks, motorcycles, RVs, boats, snowmobiles, farm equipment and construction equipment. Then, it uses a service to sell the vehicle, and 80 percent of the revenue goes to Habitat for Humanity to fund its projects. Animal shelters When it comes to used linens, most places won’t accept them. But one place that will be happy to take them off your hands is your local animal shelter . Animal shelters can use the used linens for lining beds or washing the animals. Just make sure to call ahead and see if it is accepting donations. Baby2Baby If your kids have outgrown their toys and baby supplies, consider donating them to Baby2Baby . This organization collects everything that is donated to it, and then it distributes the items to places like children’s hospitals and shelters. Baby2Baby accepts a long list of baby items including clothing, blankets, toys, cribs, car seats and high chairs. 1Million Project If you are looking for a place to donate your old cell phone, tablet or other electronic devices, try the 1Million Project . It provides low-income high school students with free mobile devices and internet connectivity to help them with their education. Images via RawPixel ( 1 , 2 ), Lubos Houska , Mike Mozart , Sneakerdog  and Shutterstock

Read the original post:
6 of the best places to donate your things

Give goods, find goods, and do good on National Thrift Store Day

July 31, 2017 by  
Filed under Eco, Green, Recycle

Comments Off on Give goods, find goods, and do good on National Thrift Store Day

If you’re the type of shopper that lives for finding hidden gems in vintage stores, mark August 17th on your calendar. That’s when National Thrift Store Day returns to encourage everyone to support their local thrift stores and score secondhand goods. New York City is taking this initiative a step further by bringing awareness to the day’s charitable component and reminding us why it would do a world of good if we went the thrift store route instead of buying brand new. Through its donateNYC program, the New York City Department of Sanitation helps New Yorkers “give goods, find goods, and do good” for their community – and they’re making it really easy for everyone to do their part. Read on for 10 great things you can find on Thrift Store Day – and where you can go to pick them up. Thrift stores have long been a place where anyone can hand off items that are no longer wanted or needed instead of throwing them in the trash. In this way, others who can’t afford these items at their original prices have a chance to own them at a lower price. Necessities like clothes, housewares, books, electronics and furniture are just some of the goods people can buy. Oftentimes, these thrift stores are run by charitable organizations that use the money collected from purchases to fund initiatives that further help those in need. Goodwill , for example, backs “programs that provide education, skills training and career development that help people earn jobs in communities nationwide.” Not to mention, this practice of donating, upcyling, and buying secondhand goods reduces the amount of garbage that ends up in landfills, the energy and resources consumed by waste management, and the amount of money flying out of our pockets. It’s a win all around. If you’re not sure where to drop off your unneeded goods, donateNYC eliminates that hassle for you. A directory of participating shops and a map of your nearest drop-off locations can be found online, as well as through the free donateNYC app for Apple and Android . The program is part of NYC’s 0X30 initiative , which aims to send zero waste to landfills by 2030, and it’s an excellent resource on National Thrift Store Day and every other day of the year. Below are some of the cool items you can find in thrift stores around NYC, courtesy of donateNYC. Vintage Clothing St. Luke’s Thrift Shop Council Thrift Shop Vintage Thrift Housing Works Goodwill The Salvation Army Handbags Housing Works Purses for Nurses Goodwill Vintage Thrift Bicycles Recycle-A-Bicycle Building Materials/Appliances Big Reuse Rebuilding Together NYC Salvage Store Habitat for Humanity NYC ReStore Electronics Lower East Side Ecology Center Jewelry CancerCare Arthritis Foundation Vintage Thrift Housing Works Hour Children Goodwill Textile Scraps FABSCRAP Furniture Refoundry Housing Works Habitat for Humanity NYC ReStore Big Reuse The Salvation Army Vintage Thrift Hour Children Housewares/furnishings St. Luke’s Thrift Shop Council Thrift Shop Vintage Thrift Housing Works Goodwill The Salvation Army Hour Children Habitat for Humanity NYC ReStore Books/Records Big Reuse Goodwill The Salvation Army Hour Children Housing Works Council Thrift Shop St. Luke’s Thrift Shop Cancer Care + donateNYC Images via Depositphotos and donateNYC

Go here to read the rest: 
Give goods, find goods, and do good on National Thrift Store Day

Give goods, find goods, and do good on National Thrift Shop Day

July 13, 2017 by  
Filed under Eco, Green, Recycle

Comments Off on Give goods, find goods, and do good on National Thrift Shop Day

If you’re the type of shopper that lives for finding hidden gems in vintage stores, mark August 17th on your calendar. That’s when National Thrift Shop Day returns to encourage everyone to support their local thrift shops and score secondhand goods. New York City is taking this initiative a step further by bringing awareness to the day’s charitable component and reminding us why it would do a world of good if we went the thrift store route instead of buying brand new. Through its donateNYC program, the New York City Department of Sanitation helps New Yorkers “give goods, find goods, and do good” for their community – and they’re making it really easy for everyone to do their part. Read on for 10 great things you can find on Thrift Store Day – and where you can go to pick them up. Thrift stores have long been a place where anyone can hand off items that are no longer wanted or needed instead of throwing them in the trash. In this way, others who can’t afford these items at their original prices have a chance to own them at a lower price. Necessities like clothes, housewares, books, electronics and furniture are just some of the goods people can buy. Related: Sweden opens an entire mall full of reclaimed goods Oftentimes, these thrift shops are run by charitable organizations that use the money collected from purchases to fund initiatives that further help those in need. Goodwill , for example, backs “programs that provide education, skills training and career development that help people earn jobs in communities nationwide.” Not to mention, this practice of donating, upcyling, and buying secondhand goods reduces the amount of garbage that ends up in landfills, the energy and resources consumed by waste management, and the amount of money flying out of our pockets. It’s a win all around. If you’re not sure where to drop off your unneeded goods, donateNYC eliminates that hassle for you. A directory of participating shops and a map of your nearest drop-off locations can be found online, as well as through the free donateNYC app for Apple and Android . The program is part of NYC’s 0X30 initiative , which aims to send zero waste to landfills by 2030, and it’s an excellent resource on National Thrift Shop Day and every other day of the year. Below are some of the cool items you can find in thrift shops around NYC, courtesy of donateNYC. Vintage Clothing St. Luke’s Thrift Shop Council Thrift Shop Vintage Thrift Housing Works Goodwill The Salvation Army Handbags Housing Works Purses for Nurses Goodwill Vintage Thrift Bicycles Recycle-A-Bicycle Building Materials/Appliances Big Reuse Rebuilding Together NYC Salvage Store Habitat for Humanity NYC ReStore Electronics Lower East Side Ecology Center Jewelry CancerCare Arthritis Foundation Vintage Thrift Housing Works Hour Children Goodwill Textile Scraps FABSCRAP Furniture Refoundry Housing Works Habitat for Humanity NYC ReStore Big Reuse The Salvation Army Vintage Thrift Hour Children Housewares/furnishings St. Luke’s Thrift Shop Council Thrift Shop Vintage Thrift Housing Works Goodwill The Salvation Army Hour Children Habitat for Humanity NYC ReStore Books/Records Big Reuse Goodwill The Salvation Army Hour Children Housing Works Council Thrift Shop St. Luke’s Thrift Shop Cancer Care + donateNYC Images via Depositphotos and donateNYC

Read the original post:
Give goods, find goods, and do good on National Thrift Shop Day

Siemens and AES start new energy storage company to rival Tesla

July 13, 2017 by  
Filed under Business, Green

Comments Off on Siemens and AES start new energy storage company to rival Tesla

Tesla’s no longer the only big company in the energy storage game. Back in April, Mercedes-Benz started to deliver home energy storage units in Germany, and now technology giants Siemens and AES are creating a new energy storage company, Fluence . The venture could reach consumers in more than 160 countries. AES and Siemens intend to draw on their knowledge of the power industry to offer energy storage technology in Fluence. Although the new venture will operate independently of its parent companies, according to a press release, it will draw on technology both have developed, like the AES Advancion and Siemens Siestorage technologies. AES CEO Adrés Gluski said of the move, “This will accelerate the integration of renewables into the energy network of tomorrow.” Related: New on-demand energy system generates and stores power in one device In combination, the two companies have either deployed or been awarded 48 projects in 13 countries to install 463 megawatts of battery-based energy storage . AES has been deploying energy storage systems for 10 years, in seven countries. Siemens has been around for much longer. The company was founded in 1847 and boasts a sales presence in over 160 countries. Which means Fluence stands to do well, on a global level. According to the press release, “The company will empower customers around the world to better navigate the fragmented but rapidly growing energy storage sector and meet their pressing needs for scalable, flexible, and cost-competitive energy storage solutions.” And the energy storage market is growing at a steady pace. According to IHS Markit , the sector could expand from three gigawatts (GW) in installed capacity in 2016 to 28 GW just around six years later, in 2022. That’s enough power to run roughly 18.6 million households. The companies expect after regulatory approvals, the transaction will close later in 2017. + Fluence Via Siemens and AES Images via AES Energy Storage on Twitter and Siemens

More:
Siemens and AES start new energy storage company to rival Tesla

Millennials are more likely to donate their unwanted clothes than older adults

March 19, 2016 by  
Filed under Eco, Green

Comments Off on Millennials are more likely to donate their unwanted clothes than older adults

Millennials are less likely than older adults to throw out old clothes and other unwanted textiles , according to a recent study. Basically, those aged between 18 and 34 were more apt to donate unused goods to secondhand stores like Goodwill and the Salvation Army. READ MORE >

Go here to see the original: 
Millennials are more likely to donate their unwanted clothes than older adults

B:Hive Co-Working Space Features Upcycled Barn Wood Conference Tables and Thrifted Decor

October 29, 2013 by  
Filed under Eco, Green, Recycle

Comments Off on B:Hive Co-Working Space Features Upcycled Barn Wood Conference Tables and Thrifted Decor

Read the rest of B:Hive Co-Working Space Features Upcycled Barn Wood Conference Tables and Thrifted Decor Permalink | Add to del.icio.us | digg Post tags: b hive Bridgeport , b hive coworking space , co-working space , craigslist furniture , Goodwill , green office spaces , green working spaces , recycled furniture , upcycled furniture , vintage furniture        

The rest is here:
B:Hive Co-Working Space Features Upcycled Barn Wood Conference Tables and Thrifted Decor

41 Ways to Waste Less Today

July 11, 2013 by  
Filed under Eco

Comments Off on 41 Ways to Waste Less Today

1. Donate clothing to Goodwill. They’ll even gladly take your damaged clothes.

View post:
41 Ways to Waste Less Today

8 Tips for an Easy Goodwill Drop-off

June 17, 2013 by  
Filed under Eco

Comments Off on 8 Tips for an Easy Goodwill Drop-off

Have you ever put together a Goodwill donation and wondered whether you’re doing it right? Have no fear, we’ve put together some top-notch tips and answered your questions to make sure your next donation is a breeze for both you and your local…

Read the original:
8 Tips for an Easy Goodwill Drop-off

8 Tips for an Easy Goodwill Drop-off

June 17, 2013 by  
Filed under Eco

Comments Off on 8 Tips for an Easy Goodwill Drop-off

Have you ever put together a Goodwill donation and wondered whether you’re doing it right? Have no fear, we’ve put together some top-notch tips and answered your questions to make sure your next donation is a breeze for both you and your local…

Read more from the original source:
8 Tips for an Easy Goodwill Drop-off

Next Page »

Bad Behavior has blocked 2163 access attempts in the last 7 days.