A growing number of large American companies are scaling back the inclusion of environmental metrics in executive pay packages. This trend mirrors a similar retreat from diversity targets observed over the past two years. Apple, a technology company known for its iPhones and computers, quietly removed an “ESG modifier” from its 2025 compensation plans for CEO Tim Cook and other top executives, according to a recent corporate filing. This modifier, in place since 2021, allowed the board to adjust bonuses by up to 10 per cent based on environmental performance, including greenhouse gas reductions and renewable energy use.
Apple’s decision follows similar moves by companies such as Starbucks, Salesforce, Mastercard, and Procter & Gamble, all of which have recently weakened or eliminated the link between environmental performance and executive compensation. The share of S&P 500 companies tying executive pay to environmental metrics has decreased to 46.7 per cent in 2025, down from a peak of 52.6 per cent two years prior, according to data from The Conference Board and ESGAUGE.
While the decline in environmental metrics is less dramatic than the drop in diversity metrics, the shift is noteworthy. Diversity metrics appeared in nearly three-quarters of S&P 500 pay plans in 2023 but fell to 34 per cent last year. Brian Bueno, sustainability practice leader at Farient Advisors, suggests that recent high-profile retreats from climate-linked pay may encourage other companies to follow suit.
