wtw-气候变迁高管薪酬指南（英）-2021.11-34页_7mb

报告摘要

Executive Compensation Guidebook for Climate Transition Summary

Core Content

This guidebook explores how executive compensation frameworks can be effectively utilized to drive climate transition and risk mitigation. It is developed in collaboration with the World Economic Forum's Principles for Effective Climate Governance and provides insights into best practices, market trends, and industry-specific considerations for integrating climate objectives into executive incentive plans.

Main Viewpoints

Climate Strategy Integration: Boards and management must align executive compensation with long-term climate goals to ensure accountability and drive meaningful action.
Investor Pressure: Investors expect companies to not only commit to climate transition but also to disclose clear, material, and measurable climate-related targets and how they are integrated into incentive plans.
Regulatory Trends: Governments across different regions are setting ambitious net-zero targets, which are influencing corporate climate strategies and executive compensation practices.
TCFD Framework: The Task Force on Climate-related Financial Disclosures (TCFD) encourages companies to disclose climate-related metrics and targets, linking them to remuneration and performance.
Metrics Selection: Climate metrics must be material, measurable, transparent, and aligned with the company's net-zero strategy and industry-specific needs.

Key Information

Climate Governance Principles

The World Economic Forum outlines Principle 6 – Incentivization, which emphasizes the importance of aligning executive incentives with climate objectives. This includes incorporating climate-related targets into incentive plans to promote long-term sustainability and resilience.

Do's and Don'ts

Do's:

Continuously monitor and evolve climate goal measurement.
Consider company-specific climate strategies and metrics.
Measure progress toward net zero across short-, medium-, and long-term horizons.
Use science-based, clear, ambitious, transparent, and consistent climate metrics.
Communicate the impact of executive compensation on climate transition through robust disclosures.

Don'ts:

Add climate metrics as a "check-the-box" exercise.
Blindly follow market practices without critical evaluation.
Set annual goals without linking them to the net-zero vision.
Use judgment-based or ambiguous climate metrics.
Manage climate-related disclosures in silos.

Business, Investor and Regulatory Context

Global Climate Risk: Climate change is a significant systemic risk to financial stability, affecting companies differently based on their exposure to fossil fuels and extreme weather.
Investor Expectations: Institutional investors are increasingly focused on ensuring that companies have sustainable business models and that climate metrics are integrated into executive compensation.
Regulatory Landscape:
- North America: Canada has a clear net-zero plan by 2050; the U.S. has set interim carbon reduction goals.
- Latin America: Most countries have submitted NDCs under the Paris Agreement.
- Western Europe and UK: The EU and UK are leading in climate transition with net-zero commitments.
- Middle East and Africa: Some countries have taken bold steps with carbon taxes and renewable investments.
- Asia Pacific: A mix of progress and development, with many countries setting net-zero targets.

TCFD Recommendations

Companies should disclose climate-related metrics and targets, including GHG emissions across all three scopes (direct, purchased energy, and supply chain/customer).
Disclosure should align with governance, strategy, risk management, and targets, with a focus on transparency and materiality.

Design Spectrum for Climate Metrics

The guidebook outlines a design spectrum for incorporating climate metrics into executive compensation, ranging from low-impact (e.g., underpin, performance modifier) to high-impact (e.g., standalone climate incentive plan).

Design Type	Description	Pros	Cons
Underpin	Threshold level of climate performance required for payouts	Appropriate for initial integration	May lack materiality
Individual performance rating modifier	Climate modifier applied to individual performance	Tailored to roles, improves line-of-sight	Qualitative and judgment-based
Company performance modifier	Climate modifier applied to overall plan	Low-risk approach	Moderate impact, may not highlight climate importance
Weighted metric in STI	Climate metric included in short-term incentive formula	Reinforces climate importance, easily communicated	Focus only on annual performance
Weighted metric in LTI	Climate metric included in long-term incentive formula	Suitable for long-term goals	Risk of losing sight of long-term path
Incentive funding formula	Financial measure adjusted for carbon cost	Direct link between climate and financial performance	Complex to communicate
Standalone incentive plan	Separate climate incentive plan	Encourages long-term thinking	May be seen as dilutive to financial performance

Principles for Selecting Climate Metrics

Principle	Description
Materiality	Metrics must be relevant to the business and contribute to long-term value and risk mitigation.
Measurability	Metrics should be quantifiable and auditable, enabling comparison across industries and tracking progress.
Breadth	Metrics should extend beyond carbon emissions to include broader climate-related performance indicators.
Comparability	Use standardized methodologies to enhance transparency and consistency.
Clarity	Ensure clear communication and alignment with the company's net-zero strategy and industry-specific needs.

Conclusion

This guidebook underscores the importance of embedding climate strategy into executive compensation to ensure accountability, drive transformation, and align with investor and regulatory expectations. It offers practical guidance on selecting and implementing climate metrics, emphasizing the need for transparency, consistency, and long-term thinking.

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