Top executives at IT company Hewlett Packard Enterprise (HPE) will have a portion of their bonus pay tied to the management of value chain emissions, as part of a series of ESG initiatives unveiled by the company. In addition, executives at the Vice President level and above also will be required to complete a mandatory climate training program.
HPE’s new initiatives were announced with the launch of its seventh annual ‘Living Progress’ ESG report which outlines the company’s progress on its sustainability strategy, and its efforts to develop technology solutions to drive a low-carbon economy and invest in a diverse and inclusive workforce.
HPE’s executive pay announcement is part of a growing trend among companies across a wide range of industries to link compensation to ESG progress, including similar moves at UBS, Caterpillar, Apple, and Trane, among several others. Mastercard recently announced that it would extend its compensation model tying bonus pay to ESG goals to all of the company’s global employees. HPE has already tied executive compensation to its diversity goals.
The company also announced that it is pulling forward its goal to become a net-zero enterprise across its entire value chain by ten years to 2040 and that by it aims to reduce its entire global emissions footprint by 90% by that time.
In addition to its long-term net zero goal, HPE has set a 2030 target to cut emissions within its operations by 70% from 2020 levels, and reduce Scope 3 emissions by 42% with a focus on the use of sold products, upstream transportation, and distribution, and direct supply chain emissions.
HPE stated that its 2030 targets are consistent with a 1.5-degree C climate pathway and are approved by the Science-based Target Initiative (SBTi).
Antonio Neri, President and CEO, said:
“We don’t just help our customers meet their ESG goals, we continue to push ourselves and our entire industry forward by improving upon our own. At HPE, we have a significant responsibility and an intentional, focused plan to help our customers, suppliers and communities successfully transition to a zero-carbon future.”