Hazel Mainwaring of E.ON UK on how to reflect sustainability in pay and pensions
Speaking on the How business sustainability goals are changing benefits REBA webinar on 10th May 2023, Hazel Mainwaring, reward and performance lead consultant at E.ON UK, talked about how her organisation values sustainability through its reward structures.
There’s no one-size-fits-all approach to making ESG targets part of the management bonus scheme. “It’s about understanding your business model; the most important ESG aspects for your organisation; and how far down the journey you are,” she said. “Linking to the things that fit your business model is key.”
Where sustainability targets are included, they should reflect a broad range of relevant factors. On E.ON UK’s long term incentives, these include diversity; health and safety measures; a climate action metric; and independently assessed ESG ratings performance.
E.ON has also built sustainability into its financial recognition. “This is given for delivering a significant project and has various criteria, including role modelling sustainability,” Mainwaring added.
Including a sustainable default fund within a company pension can also signal the organisation’s commitment but she said employee choice is essential. “Different funds represent different elements of risk and return, and for me, it’s really about giving choice around ESG focused elements of your pension scheme rather than forcing colleagues down that route.”