Apple has quietly removed an ESG-linked modifier from its 2025 executive compensation packages, ending a mechanism that had been in place since 2021. The provision allowed the company’s board to adjust annual bonuses for CEO Tim Cook and other senior leaders by up to 10%, depending in part on environmental and social performance indicators.
The so-called ESG modifier had enabled bonus increases or reductions based on metrics such as greenhouse gas emissions reductions, the use of renewable energy across Apple’s supply chain, and diversity and inclusion targets. Its removal signals a shift in how sustainability factors are integrated into top-level corporate incentives.
Apple is not alone in rethinking ESG-linked pay structures. Major brands including Starbucks, Salesforce, Mastercard and Procter & Gamble have previously used similar performance adjustments. However, new data published by The Conference Board in partnership with ESGAUGE suggests the trend may be reversing.
According to the report, the share of companies tying executive compensation to environmental metrics fell to 46.7% in 2025, down from a peak of 52.6% two years earlier. The decline marks a notable retreat for a tool once viewed as a promising way to align executive incentives with climate action and broader sustainability goals.
Researchers suggest the shift may reflect a deeper issue: in some cases, environmental objectives were never fully embedded into core business strategies. As ESG became associated with reputation management and branding, some companies adopted easily achievable targets, enabling executives to receive higher compensation despite limited environmental progress.
The data indicate that while sustainability remains part of corporate discourse, the mechanisms designed to anchor it in executive accountability may be losing momentum.
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