Salesforce Announces Including ESG Goals in Executive Pay Programs

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by KnowESG
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A Brief Summary

Salesforce, a CRM software company, said that it will begin incorporating ESG targets into its executive compensation plans. Salesforce will start tying a percentage of executive variable compensation for Executive Vice President and above to four ESG indicators this year, starting with equity and environmental sustainability.

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The variable pay considerations' equity initiatives will focus on expanding the representation of Black, Latinx, Indigenous, and multiracial employees in the United States, as well as women employees abroad. The company has been working toward several representation goals, including having 50 per cent of U.S. employees from underrepresented groups, doubling the representation of Black leaders, increasing minority leader representation by 50 per cent, and increasing U.S. representation of underrepresented minorities by 50 per cent by 2023, all of which were first announced in 2019. Salesforce also revealed today that the first of these objectives have already been met.

Reduced air travel emissions and increased spending with suppliers that have signed Salesforce's Environmental Exhibit are among the company's sustainability initiatives. Salesforce has set a goal to keep employee business travel emissions below 50% of its FY20 baseline, and the firm revealed last week that it has joined JetBlue's Sustainable Travel Partners programme, which is meant to help businesses minimise and monitor their travel's carbon footprint.

Salesforce began include the Sustainability Exhibit in all of its supplier procurement contracts in April 2021. The exhibit includes numerous duties for suppliers, the most important of which is that they must agree to creating a science-based target to reduce greenhouse gas (GHG) emissions in line with the Science Based Targets initiative's goal of limiting global warming to 1.5°C or less (SBTi). Salesforce has also pledged to work with suppliers on climate change initiatives.

In a statement announcing the new initiative, Lori Castillo Martinez, Salesforce’s Chief Equality Officer, and Suzanne DiBianca, Chief Impact Officer and EVP of Corporate Relations, said: “Part of what makes Salesforce an amazing company is our belief that business is the greatest platform for change. Our commitment to equality and sustainability helps us be a better company — and foster more inclusive, equitable, and resilient communities.”


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