ESG as a Performance Metric: What Compensation Professionals Need to Know

In the last few years, environmental, social, and governance (ESG) issues have jumped to the forefront of investor dialogue. A broad topic spanning many functional domains, ESG is prompting compensation executives to ask what it means for their roles and where the opportunities lie.

In this issue brief, we discuss why ESG is important and lay out three aspects of ESG that make it critically relevant to the compensation function.