Videos
"If you rely only on your sustainability department to achieve your goals, you will not succeed. We engaged our board of directors and the remuneration committee so now the long-term incentive plans incorporate sustainability targets that link top management's compensation to sustainability performance."
Video key points:
- OVS is a major Italian retailer with about 500 Tier 1 suppliers, mostly in Asia, and producing roughly 70,000 products a year.
- OVS links sustainability goals to corporate goals, and 30% of top management’s long-term incentive payout now depends on meeting sustainability targets.
- OVS engages suppliers by explaining why each request matters and working through the challenges they face to find mutually beneficial solutions.
Watch the full conversation between Simone Colombo, Head of Corporate Sustainability at OVS and James Schaffer, Chief Sustainability Officer at Worldly.
Don’t have time to watch the full conversation? Skip ahead to 13:22 to learn how OVS ties sustainability targets to executive pay, and why Simone says compensation is the clearest test of whether sustainability is embedded in a business.
"In recent years, we have faced trouble in asking suppliers to put in place forms of representations for the workers, because in many countries they see this as a risk for them because they can organize strikes or other forms of protests. So, we had the chance to discuss with some of them to understand the root cause, and it turns out that it was a lack of training for those in worker committee leadership roles. It was not that the supplier didn't want to have worker committees, but that we needed to work together to train workers to perform those roles in the best way. Conducting these trainings created a win-win for the workers and the facility."
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