Rewarding the sustainable development performance of businesses


Comité 21


Rewarding the sustainable development performance of businesses

Friday  December 14th, 2012

An initiative of the European Economic and Social Committee,
Comité 21 France
and European Partners for the Environment

 with the financial support of the French Ministry of Ecology

Key Recommendations

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The objective of the workshop was to redefine the performance and value concepts at the level of businesses in order to lead to new assessment methods for findings and generate innovation and creativity.

Rewarding the sustainable development performance of the Company leaders and staff is a key dimension of constant progress on the basis of indicators and targets.  Which indicators, criteria, targets should be used with the aim to increase resource efficiency, accelerate the transition, develop new business models and eco-innovation ?

This issue needs to be addressed at two levels: the senior management on one hand and executive and workers on the other hand.

In some Companies senior management bonus are linked with sustainability performances. This is a key driver for change all along the Company decision chain.

Executive and Workers have also a key role to play as eco-innovation towards a circular economy, resource and energy efficiency are also a major driver of Company competitiveness.

Institutionalising, a reward system based on measurable performance and incentives for environmental / sustainable improvements, serves as a potential mechanism to enhance a firm's performance. The meeting will address (1) collectiveness and cooperation, (2) employee participation, (3) quantifiable performance and bonus measures and (4) an equitable reward system; all components that would enhance environmental/sustainable performance. The effects of rewards on decision performance and knowledge acquisition  at both senior and staff levels will be addressed as well.

The long-term prosperity of a corporation may depend on its environmental performance and stock investors are  expected to recognize this. The conclusions of this workshop will serve as one of the theme of a workshop beginning 2013 on the role of Companies sustainable performance rating agencies.

EPE Programme 2015. A New Dynamic.



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