Employers Incorporating Climate Change Considerations into Employee Compensation and Benefits Packages

While still at the periphery of the job market, the notion of “green perks” is gaining traction, with companies increasingly integrating them into compensation packages and benefits. For instance, commuting benefits, exemplified by Walmart’s investment in amenities like e-bike chargers, bicycle racks, and showers, cater to employees who engage in physical exertion during their commute. Moreover, innovative ideas on the horizon encompass employer-funded initiatives such as home upgrades, electric vehicle subsidies, and paid time off for weather-related incidents, reflecting a growing commitment to environmental sustainability.

In the contemporary labor market, an increasing number of workers aspire to address climate change within their professional roles. However, a significant hurdle they face is the lack of clarity regarding their employer’s stance on the issue. To overcome this obstacle, the introduction of “green perks” or climate change benefits is gaining momentum. While still a budding trend, these incentives embedded within employee compensation packages serve to elucidate and operationalize climate change initiatives within the workplace, thereby fostering greater engagement and action among employees.

Environmental commitments from major companies have tended to focus on major operational efficiency targets, such as Google’s carbon-free data centers, and from the supply chain to the consumer end market, such as Apple’s carbon-neutral smartwatch. There are some companies all-in, as a brand, in fighting climate change, such as Patagonia. And at the C-suite level, it’s already a norm on the compensation side of the equation, with executive bonuses at companies, such as Apple, tied to ESG performance metrics.
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