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Banker bonuses tied to ESG outcomes

Banker bonuses tied to ESG outcomes

by Starling Insights

Starling Insights Editorial Board

Aug 25, 2021

Observations

European bankers soon will need to show that they are contributing to a cleaner environment, a better society, and good governance. In another sign that ESG is reshaping finance, most of the 20 major European banks recently surveyed by Bloomberg said that they were either working on, or already had, a model that links staff remuneration to a firm’s performance on sustainability metrics.

This comes as European regulators explicitly add ESG risks to pay guidelines, which will be in effect by the end of the year.

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