Describe the key characteristics of incentive schemes linked to sustainability, including performance targets, their role in remuneration policies, the proportion of variable remuneration tied to sustainability, and approval levels.
CSRD
Existence of Sustainability-Linked Incentive Schemes & Remuneration Policies:
Confirm whether remuneration policies for administrative, management, and supervisory bodies include sustainability-related incentives (e.g., ESG performance bonuses, long-term incentive plans).
Key Characteristics of Incentive Schemes:
Describe the structure of incentive schemes (e.g., short-term vs. long-term bonuses, stock options, performance-based incentives).
Specify eligibility criteria and who participates in these schemes.
Sustainability-Related Targets & Impact Metrics:
List the specific sustainability-related targets used to evaluate performance (e.g., carbon footprint reduction, diversity and inclusion, responsible sourcing, ESG ratings).
Explain how these targets are measured and monitored.
Integration into Performance & Remuneration Policies:
Describe how sustainability-related performance metrics are factored into performance benchmarks or remuneration policies.
Indicate if ESG targets are weighted against financial and operational KPIs.
Percentage of Variable Remuneration Tied to Sustainability:
Disclose the percentage of total variable remuneration that depends on achieving sustainability-related targets.
If applicable, provide a breakdown by role (e.g., CEO, executive committee, board members).
Approval & Update Process:
Specify who approves and updates incentive schemes (e.g., board of directors, remuneration committee, shareholder vote).
Detail the frequency of updates and how sustainability factors are reviewed over time.
https://xbrl.efrag.org/e-esrs/esrs-set1-2023.html#619