The Chief Executive Officer of MasterCard, Michael Miebach has taken an initiative to increase the involvement of the corporation to improve financial inclusion, reduce carbon footprint, and reach gender-pay parity. MasterCard is now one of the companies that are using compensation to empower the environmental, social, and corporate governance, also known as ESG.
Earlier this month, French oil and gas corporation, Total SE, and the top six banks in Canada have added such components to their framework. Total SE is set to partly tie bonuses to achievements of reducing greenhouse-gas emissions. The company has also continually been spending on afforestation and renewable energy resources.
The steps taken by MasterCard now makes them a part of the list of companies that have taken such initiatives this month. This makes them a part of a small minority of companies that take executive bonuses to such a measure.
The aim here is to achieve the set ESG goals by evaluating the efforts of VPs, CEOs, and the people on the higher end of the corporate ladder. Bonuses will be provided to them on the basis of their evaluation. The companies will ‘expand and adapt’ their priorities to address the changing objectives.
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A step closer to sustainability
This initiative by MasterCard has been taken to ensure that the company reaches its goal of ‘net-zero emissions’ by 2050. Mastercard has now become a part of a growing list of companies that are using incentives to drive ESG progress. This month MasterCard had also announced that it has successfully priced a $600 million sustainability bond at a fixed rate of 1.90%. Which will be used to maximize carbon reduction and ensure continual growth.
Understanding the social responsibility
Mastercard has set numerous goals that adhere to the company’s motto of sustainability and social justice. It is also one of the few financial-services corporations that openly displays the assessment of the pays of men and women. They aim to achieve equality by closing the gap between the pays of men and women soon.
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