Strong Governance to Lead a More Sustainable World
From the top of our organization, and throughout every facet of our business, our company’s core purpose is to create a more sustainable world.
A strong governance structure enhances our focus on sustainability and consists of the following elements:
- Board-Level Accountability: The Sustainability, Corporate Governance and Nominating Committee of our Board of Directors oversees risks associated with corporate governance and sustainability, including the development and implementation of policies relating to environmental, social and governance (“ESG”) issues. The Sustainability, Corporate Governance and Nominating Committee also monitors the Company’s performance against its sustainability and ESG objectives including the impacts of climate change. The Sustainability, Corporate Governance and Nominating Committee also evaluates social and environmental trends and issues in connection with the Company’s business activities and makes recommendations to the Board regarding those trends and issues. See a Letter from our Board of Directors on the Urgency of Sustainability in our Proxy Statement.
- Executive Leadership: Each executive officer's performance management objectives are cascaded throughout their organizations as well as aligned with driving operational excellence, improving the business operating system and achieving sustainability initiatives. Additionally, our management's Annual Incentive Matrix remuneration scheme includes environmental, sustainability and workforce diversity goals, in addition to financial targets. Beginning in 2021, all salaried employees will have a sustainability objective aligned with our 2030 sustainability commitments.
- Executive Oversight: Our Sustainability Strategy Council includes functional and business leaders who ensure the company’s sustainability strategy is aligned across the enterprise and define annual and mid-term targets and boundaries that inform our public reporting. The Council meets quarterly and reports progress to the Enterprise Leadership team.
- External Engagement and Guidance: We learn from the insights of external thought leaders who sit on our Advisory Council on Sustainability. This group’s expertise in climate change impacts, infrastructure development, energy policy, circular design, product impacts, social progress and technology helps us understand critical issues and apply that learning to our strategy. We also participate in several global initiatives designed to advance climate action. See our full list of charters.
- Daily Management: Day to day, our Center for Energy Efficiency and Sustainability (CEES) team is responsible for integrating sustainability into the business. In addition, the CEES team facilitates our sustainability-related work with government and nongovernmental organizations, universities and industry leaders. They bring forward new ideas and emerging requirements and are also responsible for tracking and disclosing our progress against commitments.