Only 6% of organisations link staff pay to environmental or sustainability targets, according to a new report from the Institute of Sustainability and Environmental Professionals (ISEP).
The figure comes despite the green economy outpacing wider UK employment and economic growth, contributing more than £80 billion last year.
Businesses often link pay to sales targets, customer experience and operational metrics. Yet based on our survey, only 6% of organisations with sustainability professionals link remuneration to sustainability targets.
It seems like a no-brainer. If we are going achieve our net-zero targets and other crucial environmental outcomes, financial incentives need to be playing a role.”
ISEP CEO Sarah Mukherjee
The report, State of the Sustainability Profession, is based on a survey of ISEP members and interviews with industry leaders.
It highlights the growing influence of sustainability professionals, with 66% contributing to strategy and research and 30% involved in product and service innovation.
However, most of the focus remains on reporting, compliance and risk management.
Budget trends indicate support is growing—fewer than 2% of organisations cut sustainability spending in the past year and nearly half increased it, despite economic headwinds.
Leadership also plays a key role in success.
“The data seems to back this up and indicates that 80% of the organisations with the highest level of greenhouse gas emissions reduction also have CEOs that are regarded as ‘leading, visible champions or proactively supporting sustainability,’” Mukherjee added.
Other findings raise concerns.
More than 40% of respondents said their organisation does not track water usage for sustainability purposes and more than 70% are not measuring biodiversity net gain.
Additionally, 28% do not report on greenhouse gas emissions at all.
The report urges companies to integrate sustainability more deeply into operations, including linking performance to pay, to meet future climate and regulatory demands.
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