Climate Governance Initiative

Climate action and remuneration: A pocket guide for remuneration committees

30 August 2023

Guide Thought leadership Chapter Content
Executive remuneration is a pivotal tool for driving climate action. Our latest guide for non-executives, "Climate action and remuneration: A pocket guide for remuneration committees", delves into the critical intersection of executive pay structures and climate goals, providing actionable insights for chairs and members of remuneration committees. Why it matters: The guide navigates the complex landscape of climate-aligned remuneration, offering a roadmap for companies seeking to make meaningful contributions to the climate transition. Key highlights Strategic climate metrics Learn how to identify, calibrate, and cascade climate metrics throughout your organisation, ensuring they are measurable, significant, and congruent with net-zero commitments. Transparent disclosures Discover the importance of transparent and prospective climate remuneration disclosures, offering clear insights into your company's performance on short, medium, and long-term climate targets. Step-by-step guide We offer a step-by-step guide to embedding climate considerations in executive compensation, offering practical principles derived from conversations with industry experts and remuneration committee members. Materiality and measurability Understand the significance of selecting metrics that are material to the business and participants, ensuring they are reliably measured, quantified, and scalable for independent audit. Read the full report Curious to explore how executive compensation can be a catalyst for climate action? Download the full report now to uncover industry best practices, valuable principles, and actionable steps to navigate the evolving landscape of climate-aligned remuneration. With thanks to the following for their contributions: Tina Mavraki, Chapter Zero Fellow Devyani Vaishampayan, RemCo Chair and NED at Saietta Group plc Hannah Summers, Director, Climate & Resilience Hub, WTW