Environmental & Social Metrics in Executive Remuneration: A Look at the Nordics

Environmental & Social Metrics in Executive Remuneration: A Look at the Nordics

March 28, 2025

As environmental and social (E&S) considerations continue to be part of many European investors’ investment and stewardship considerations, so too are these E&S factors increasingly embedded as performance metrics in companies’ executive remuneration frameworks. This trend reflects a focus on E&S alignment with company strategy, the use of sustainability factors in operational considerations, and the opportunities inherent in signaling integration of E&S considerations to investors.  This paper outlines the extent to which Nordic companies integrate E&S performance metrics in their executive remuneration programs, particularly from 2020 through 2023 (FY2023 pay disclosed in 2024 proxy statements). This review is also intended to assist investors in contextualizing their assessment of the FY2024 pay practices presented in 2025 proxy statements.

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