Senior management sustainability incentives
Target: Management sustainability incentive with yearly target
ABB ensures alignment between its management and its sustainability strategy through the application of sustainability measures and targets to its Annual Incentive Plan (AIP) as well as its Long-Term Incentive Plan (LTIP). The mechanism by which this is accomplished was revised last year. Beginning in 2022, all Executive Committee members had at least two sustainability related performance goals incorporated into the individual components of their AIPs.
Additionally, a corporate sustainability goal with a weighting of 20 percent has been incorporated into ABB’s 2022 LTIP. The measure relates to a reduction in ABB’s scope 1 and 2 GHG emissions versus the 2019 baseline. The LTIP, which is linked to defined performance measures, is awarded to all EC members and about 100 senior executives. The final award under the LTIP is subject to the achievement of the plan's specific targets over a period of three years, from 2022 to 2024.