Heineken to link pay to its climate change targets

Brewer looking at ways to meets its 2040 net-zero emission target with salary and bonus incentives for managers who meet climate goals

Heineken has noticed a 'remarkable acceleration' over the past year in how important climate action has become to the company’s stakeholders.

Salaries and bonuses paid to Heineken managers may soon depend on how committed they are to fighting climate change as the world's second-largest brewer searches for ways to meet its 2040 net-zero emissions goal.

“We’re investigating how to link this to executive remuneration,” chief executive Dolf van den Brink said in an interview. 

Companies are increasingly under pressure from board members, investors and customers to prove they’re taking meaningful steps to lessen their impact on the planet. Experts say linking executive pay is a key step to incentivise corporate management to meet climate goals. 

Heineken has noticed a “remarkable acceleration” over the past year in how important climate action has become to the company’s stakeholders, Mr van den Brink said, and that it will be key to attracting and retaining future employees. 

While there is greater understanding among consumers that tackling global warming is crucial, Mr van den Brink said he’s not sure they’ll be willing to pay a “big premium” for green upgrades across the company’s value chain. 

About 90% of Heineken’s emissions come from suppliers, packaging and the logistics of storing and transporting its beer. The remainder is generated when producing the beverage. 

• Bloomberg

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