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Heineken To Link Its Managers' Salaries And Bonuses To Its Climate Change Targets

Published on Jun 18 2021 12:40 PM in Drinks tagged: Heineken / climate change / Global Warming / net zero emissions

Heineken To Link Its Managers' Salaries And Bonuses To Its Climate Change Targets

According to The Irish Examiner, salaries and bonuses paid to Heineken managers are set to be linked to the progress of the company's fight against climate change.

The world's second-largest brewer is set to introduce the changes as it looks for ways to meet its 2040 net-zero emissions goal.

Climate Action

Heineken chief executive Dolf van den Brink said the group has noticed a "remarkable acceleration" over the past year in how important climate action has become to the company’s stakeholders.

The brewer believes prioritising climate action will be key to attracting and retaining future employees.

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

Companies are coming under pressure from board members, investors, and customers to take quantifiable steps towards lessening their climate impact.

Experts say linking executive pay is a key step to incentivise corporate management to meet climate goals.

Green Upgrades

While there is a greater understanding among consumers that tackling global warming is important, Van den Brink believes that there is still a gap to be bridged before consumers 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.

The Dutch company recently announced a series of "Brewing a Better World" ambitions, which underpin its new EverGreen growth strategy, prioritising growing in a sustainable manner.

© 2021 Hospitality Ireland – your source for the latest industry news. Article by Conor Farrelly. Click subscribe to sign up for the Hospitality Ireland print edition.

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