India Inc keenon ESG issues

Companies must chalk out a plan that drives the right ESG behaviour in the long term and reward the management for the same, says global advisory firm Willis Towers Watson

New Delhi: Companies in India are increasingly focusing on the importance of environmental, social and governance (ESG) issues following the Coronavirus pandemic, and their compensation committees can play a crucial role in taking this agenda further, according to global advisory firm Willis Towers Watson. Rewards and incentives could be incorporated in a company's ESG matrix to achieve the larger agenda, and companies must chalk out a plan that drives the right ESG behaviour in the long term and reward the management for the same, Willis Towers Watson said. "The incentivising achievement of the ESG matrix must be done in a top-down manner. Boards need to set the right expectations for the management and reward them for delivering the desired performance while demonstrating the right behaviours," said Rajul Mathur, consulting head (talent and rewards), India, Willis Towers Watson.