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U.K. Executive Bonuses Now Depend on Sustainable Targets

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Photographer: Chris Ratcliffe/Bloomberg

A growing number of executives in Britain are finding that their pay packages rely on how well they perform on environmental, social and governance metrics.

Almost half the annual bonus plans awarded to executives at the biggest U.K. firms now include an ESG component, up from about a third a year ago, according to Alvarez & Marsal, which reviewed the most recent annual reports of FTSE 100 members. When it comes to long-term incentive plans, a third are now tied to ESG, doubling from a year ago, the consultancy found.