SCOTTISH Hydroelectric owner SSE has said it will aim to meet four new objectives in areas such as boosting renewable energy output to help achieve the UN’s Sustainable Development Goals, which will be linked to executive pay.
The Perth-based power giant said the objectives would put sustainability right at the heart of the group’s strategy and operations, with stretching targets to be met by 2030.
Around 20 per cent of directors’ annual incentive plan awards (AIP) will be based on the progress made by the company towards meeting the objectives.
These will require SSE to cut the carbon intensity of the electricity it generates by 50% and to treble renewable energy output. SSE also aims to invest in the infrastructure needed to help accommodate 10 million electric vehicles in Great Britain and to become the leading company in the UK and Ireland championing Fair Tax and the real Living Wage.
Chief executive Alistair Phillips-Davies, said: “We’ve put the transformation to a low carbon economy at the heart of our strategy and these measures demonstrate how seriously we take that commitment. Our ambition is to be a leading energy company in a low carbon world.”
Dame Sue Bruce, who chairs SSE’s Remuneration Committee, said the company had received clear feedback from shareholders and stakeholders stating they would welcome climate change and sustainability incentives for senior leaders.
With effect from the 2019/20 financial year 40% of the non-financial element of the annual incentive plan will be tied to the objectives. Non-financial measures represent 50% of the AIP.
Mr Phillips-Davies earned around £1m under the AIP in the year to March 2018, out of £2.7m total remuneration. His base salary was £0.86m.
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