ESG as a driver for strategic rewards

Xavier Baeten

By Xavier Baeten

Professor of Reward & Sustainability

302672

Sanne De Cooman

Coordinator Vlerick Reward Centre

04 June 2024
insights-esg-rewards

The corporate landscape increasingly focuses on sustainability, also driven by regulatory initiatives such as the Corporate Sustainability Reporting Directive. Collective bonuses, in turn, have been identified as an effective tool for aligning employee efforts with organisational goals, promoting a sense of shared purpose. As a consequence, they can also play a crucial role in the strategic embedding of sustainability. This white paper from the Centre for Excellence in Strategic Rewards explores the integration of ESG (Environmental, Social and Governance) indicators into collective incentive systems in Belgium under the framework provided by CLA 90, which allows tax-friendly collective bonuses when predefined goals are met. For this research, the centre made an inventory of Key Performance Indicators (linked to financial, environmental, social and governance) from CLA 90 agreements with a view of the legal and market dimensions of this incentive system.

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Sanne De Cooman

Sanne De Cooman

Coordinator Vlerick Reward Centre