Ethical Performance
inside intelligence for responsible business


sustainability targets linked to AWG bosses’ pay packets

April 2002

Senior executives at the water and waste management company AWG are to have social and environmental performance targets written into their employment contracts.

The targets, based on a sustainable development policy drawn up last year, will determine the level of performance-related pay for managing directors of the UK-based group’s six divisions.

They were approved last month at board level, but need ratifying by the group’s sustainability committee before they are made public in the summer. AWG says the intention is to bring sustainable development to the front of senior managers’ minds.

However, managing directors will have discretion as to how they meet the targets. ‘We have a diverse business so we can’t tell people exactly how they are going to do these things,’ the company said.

‘There is, for instance, no commonality across the divisions on who stakeholders are, so you can’t be prescriptive from the centre. But the targets will be directly linked to managing directors’ contracts, which will be performance contracts in the true sense of the word.’

It is understood that there are around 15 targets covering waste management, employee appraisals, ‘stakeholder management’ and other areas.

One target will be to involve at least five per cent of each division’s workforce in some form of community work, which may take the form of employee volunteering, mentoring or lecturing at universities.

An AWG community strategy group comprising managing directors from each division is to look at how this target might be met, as well as how the group can best develop a community policy ‘based on involvement rather than philanthropy’. The strategy group met in February for the first time.

AWG’s sustainable development manager, Ken Smith, has joined the London-based consultancy Castella Stanger as its director of environmental management, sustainability and risk management. Andy Brown, AWG’s biodiversity manager, is taking over Smith’s role for six months on secondment.


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