Companies in Action
Alcoa increases percentage of executive incentive pay tied to sustainability metrics and covers diversity issues. The number of companies tying executive compensation to sustainability metrics that go beyond compliance continues to increase and gain relevance in driving performance improvements. According to the Alcoa's 2019 proxy statement, in 2018 the company linked 30% of its annual cash-based incentive goals to sustainability metrics, up from 20% in 2017. Priority metrics covered safety (15%), GHG emission reductions (5%) and diversity metrics, including a goal of increasing female representation in the company's workforce globally (10%).
Kellogg Company engages with employees across the company and fosters senior management accountability. Every department and team in a company can affect an organization’s sustainability commitments. Kellogg's Social Responsibility and Public Policy Committee of the board of directors oversees the company's corporate responsibility strategy and climate policy. The company's 2020 proxy statement also state that policies and strategies overseen by the committee are aligned with its lobbying, advocacy and membership efforts. The company’s SVP of Global Corporate Affairs, who reports to the Chairman and CEO, implements the strategy by working with leaders from across the business and provides regular updates to the CEO and board committee. The company’s Chief Sustainability Officer (CSO) reports to the SVP of Global Corporate Affairs. Kellogg convenes a monthly cross-functional team meeting to assess and track the company’s policy and strategy on corporate responsibility issues such as climate risks, forced labor, child labor, freedom of association and collective bargaining and water management and sanitation. The company CEO, SVP, CSO and other leaders also have annual performance targets that are tied to Kellogg’s corporate responsibility metrics.
The Walt Disney Company’s Chief Financial Officer has ultimate oversight of sustainability. Senior executives who realize the impact of sustainability on the company’s financial health are critical to effectively integrating sustainability into the business. The corporate social responsibility team at Disney is led by the company’s CFO, who partners closely with the CEO, Chief Human Resources Officer, the General Counsel and each of Disney’s business segment leaders to guide the broader strategy. The company has also established executive leadership councils—such as the Environmental Governance Council—to empower executives across the company to own the goals and foster integration of key sustainability priorities into business strategy. Ultimate oversight for social responsibility is held by Disney’s CFO, Christine McCarthy. In the company’s 2019 CSR report, as in previous years, the CFO contributes an opening letter underscoring the connection between corporate social responsibility and the financial health of the company—including driving competitive advantage, enhancing risk management and attracting employees.