Outokumpu Declared New Sustainability-Linked Performance Share Plan

SEATTLE (Scrap Monster): The Board of Directors of Outokumpu- the leading stainless steel maker announced its decision to establish sustainability related criteria for the company’s Performance Share Plan (PSP) program. The plan period till 2024 includes earning criteria linked to the emission reduction target, in line with the company’s Science Based Targets initiative (SBTi) commitment.

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The PSP, part of the regular compensation of top executives, will set the compensation criteria for each period. A maximum of 150 key employees will be included in each period. The new plan of sustainability criteria for the management incentive plans linked with the updated climate targets is expected to provide significant boost to its sustainability efforts, said the company press release.

Heikki Malinen, President and CEO of Outokumpu noted that it has tightly linked sustainability to company strategy, with the aim of becoming the customers’ first choice in sustainable stainless steel. Linking the incentive structures to sustainability goals is an important step in building robust governance, he added.

Incidentally, Outokumpu targets to achieve 30% reduction in Scope 1, 2 and 3 emissions by 2030, compared with 2020 level.