What climate-related considerations are factored into the remuneration of administrative, management, and supervisory bodies?

1. Definition of Climate-Related Considerations in Remuneration Climate-related considerations in remuneration refer to the integration of climate goals and sustainability objectives into the compensation structure for members of the administrative, management, and supervisory bodies. This can include incorporating climate performance (e.g., emissions reduction, renewable energy use, climate risk management) as part of the criteria for determining bonuses, incentives, and long-term compensation. 2. Explanation of Climate-Related Metrics in Remuneration Climate Performance Metrics: Provide a clear explanation of the specific climate-related performance metrics that are considered in the determination of remuneration for board members. These may include: Reducing carbon emissions (e.g., annual reduction targets for Scope 1, 2, and 3 emissions). Energy efficiency targets (e.g., implementing energy-saving technologies or improving operational energy consumption). Use of renewable energy (e.g., increasing the percentage of energy sourced from renewable sources). Climate risk management (e.g., identifying and mitigating physical or transition risks related to climate change). Sustainability certifications or achievements (e.g., achieving carbon neutrality, obtaining green certifications). Alignment with Strategic Goals: Explain how these climate-related metrics are aligned with the company’s broader sustainability or ESG goals and contribute to the long-term climate resilience of the business. 3. Integration of Climate Considerations into Compensation Plans Short-Term and Long-Term Incentives: Describe how climate-related metrics are integrated into both short-term (annual) and long-term (multi-year) incentives for board members. For example: Short-term incentives: Climate-related targets might influence annual performance bonuses, such as reducing carbon emissions or achieving energy efficiency milestones. Long-term incentives: Climate performance might be linked to stock options, equity grants, or other forms of deferred compensation tied to long-term sustainability achievements. Weighting and Impact on Remuneration: Specify what percentage of total remuneration (e.g., salary, bonus, stock options) is influenced by climate-related goals. For example: 10%-20% of the annual bonus is tied to achieving emissions reduction goals. A certain portion of long-term incentive plans is linked to the company’s progress in meeting net-zero targets or other climate-related commitments. 4. Governance and Oversight Board Oversight: Explain how the administrative, management, and supervisory bodies oversee the integration of climate-related metrics in the remuneration structure. Detail the role of compensation committees or external advisors in ensuring that the climate-related metrics are robust, measurable, and aligned with business strategy. Performance Monitoring and Reporting: Clarify how the company monitors progress on climate-related objectives and how this performance is measured and verified for the purpose of compensation assessment. Describe any internal controls in place to ensure accurate reporting of climate-related performance. 5. Future Commitments and Plans https://xbrl.efrag.org/e-esrs/esrs-set1-2023.html#875