CRM solutions provider Salesforce announced today that it will begin including ESG goals in its executive compensation programs.

Beginning this year, Salesforce will tie a portion of executive variable pay for Executive Vice President and above to four ESG measures, starting with those focused on equality and environmental sustainability.

In a statement announcing the new initiative, Lori Castillo Martinez, Salesforce’s Chief Equality Officer, and Suzanne DiBianca, Chief Impact Officer and EVP of Corporate Relations, said:

“Part of what makes Salesforce an amazing company is our belief that business is the greatest platform for change. Our commitment to equality and sustainability helps us be a better company — and foster more inclusive, equitable, and resilient communities.”

The equality measures included in the variable pay considerations will focus on increasing representation of Black, Latinx, Indigenous, and multiracial employees in the U.S., and of women employees globally. The company has been pursuing a series of representation goals, initially announced in 2019, including having 50% of U.S. employees from underrepresented groups, doubling the representation of Black leaders, increasing representation of minority leaders by 50%, and increasing U.S. representation of underrepresented minorities by 50% by 2023. Salesforce also announced today that it has already surpassed the first of these goals.

Salesforce’s sustainability measures include reducing air travel emissions and increasing spend with suppliers who have signed Salesforce’s Sustainability Exhibit. Salesforce has a stated goal to maintain employee business travel emissions intensity below 50% of its FY20 baseline, and last week the company announced that it has joined JetBlue’s Sustainable Travel Partners program, designed to enable businesses to reduce and assess the emissions footprint of their travel.

In April 2021, Salesforce introduced the Sustainability Exhibit in all of its supplier procurement contracts. The exhibit includes several obligations for suppliers, most notably requiring them to commit to setting a science-based target to reduce greenhouse gas (GHG) emissions aligned with limiting global warming to 1.5°C or less with the Science Based Targets initiative (SBTi). Salesforce has also announced a commitment to collaborate with suppliers on climate action.

Martinez and DiBianca added:

“This new initiative will help us continue to drive meaningful results this year, and accelerate our progress on these important issues.”