Legal Updates

Environmental – Carbon Performance – Executive Pay

The National Grid has announced that executives' pay has now been linked to carbon performance. On the 23rd of March 2009, the National Grid made an announcement stating that it has set a target to reduce its greenhouse gas emissions by 80% in 2050.

In order to achieve this target, the company has now elected to implement a mid-term carbon dioxide reduction target of 45% by 2020. Accordingly, it has initiated a policy of carbon budgets across its electricity and gas businesses in the UK and the US.

Executives’ compensation packages have now been linked to the agreed carbon budgets. This means that the executives' financial rewards are now directly based on the emission reductions that their respective departments are able to deliver.

Employers should note that commentators have stated that this use of climate change indicators could indicate the beginning of a new trend in performance measures in respect of the remuneration of employees.

The consultation should be reviewed by those individuals or businesses engaged in activities in the nuclear industry, as well as those located in the vicinity of the proposed sites.

If you require further information please contact us at

© RT COOPERS, 2009. This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.


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