Skip to content

Executive Bonuses in Crosshairs in New CO2 Rule: ESG Regulation

Lignite Power Plant
Photographer: Bloomberg Creative Photos/Bloomberg
Updated on

Executives will face bonus cuts if the companies they run fail to hit climate transition targets, under a new European Union proposal that greatly expands the range of levers regulators can draw on to meet terms of the Paris Agreement.

C-suite managers at companies with more than 1,000 employees will be held personally responsible if trajectories for emissions cuts don’t align with the objective of limiting global warming to 1.5C, according to the current text of the Corporate Sustainability Due Diligence Directive