COMP NEWS – LEGO has announced that performance-related bonuses for its salaried employees will be tied to the company’s emission reduction performance.
In an announcement shared on social media, the company said the ties to performance-related bonuses will keep the company accountable with its climate strategy.
“We have an ambitious target to reduce our emissions by 37% by 2032 and achieve net zero by 2050,” the statement says.
“To help keep us on track, from 2024, a percentage of our performance management programme for colleague bonuses will be tied to annual emissions as we take steps to reduce environmental impact across all areas of our business.”
The new bonuses are part of the company’s strategy to reward climate strategy initiatives as a key part of the LEGO employee experience.
As a part of LEGO’s update to its employee bonus program, the company will base part of an employee’s performance-related bonus not just on contributions to the reduction of carbon produced in LEGO factories, stores, and offices, but also to its Scope 3 emissions, which include business travel.
The measurement of emissions will relate to the amount of bricks LEGO manufactures each year.
The new policy reflects the increasing desire of HR and ESG leaders to work together on tying climate strategy into the employee experience, including remuneration.
Willis Towers Watson’s HR and Climate Strategy Survey previously found close to half (46%) of employers expect their employees to help the company deliver on its climate strategy, and a third (33%) agree that executive compensation should be based in part on the delivery of the company’s climate strategy.
To read more about LEGO’s new bonus structure based on emission reductions, click here.
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