ESG Based Performance Conditions for Employee Incentive Awards
These provisions make remuneration awards conditional upon achieving ESG targets and so incentivise and reward long-term decision-making that is required to deliver sustainable, climate-aligned action.
Summary: Conditions that incentivise performance by linking executive directors’ and other key employees’ share-based remuneration awards to achieving climate targets.
Please find the text for this clause on The Chancery Lane Project website here.
| Clause Type | Environmental, Social, Governance |
| Jurisdiction | England and Wales |
| Industry | Multiple / cross-industry |
| Focus Area | Collaborative |
| Scope | other |
| Contract Type | Employment Agreement |
| Relevant UNSDGs | Goal 13: Climate Action |
| Connecting Clauses | No |