In a statement, Michael Miebach, the CEO of Mastercard Inc said, the company will link all employee bonuses to environmental, social and corporate-governance (ESG) initiatives, in an expansion of an earlier program which was limited to its senior executives.
The move is aimed at enabling Mastercard achieve its goals of reducing its carbon footprint, boost financial inclusion and gender pay parity. In November 2021, Mastercard accelerated its net zero timeline by a decade, to 2040 from 2050.
“We’re tying compensation to emissions, financial inclusion and the gender pay gap because we have a substantial impact in these areas and because they closely align with our vision,” wrote Miebach in a note on the company’s website.
The development comes midst a backdrop of growing public and political concerns on climate change and economic inequality, with companies coming under pressure to show that they are taking greater responsibility for how they run operations and generate profits.