Executive Compensation Guidebook for Climate Transition: 2023 Addendum

The Climate Governance Initiative and WTW have published a 2023 Addendum to the Executive Compensation Guidebook for Climate Transition. The Addendum to the Guidebook, which was published in 2021, provides updated observations on evolving regulatory and investor contexts, and market practice on the inclusion of climate-related performance metrics in incentive plans. The 2023 Addendum is intended to be read in conjunction with the original Guidebook.

Please see also the webinar recording: 'Incentivising for success: The role of remuneration in climate transition plans'

For a New Zealand perspective, KPMG NZ has created a resource on ‘Employee Share Schemes 2023: Driving performance and retaining talent’. Information on climate-linked remuneration, including local research, starts from page nine of this report.

Specifically, the report outlines the implications for listed companies of the recent Climate Standard (CS-1) which is placing a disclosure requirement of ‘whether and if so, how’ climate related performance metrics are incorporated into employee remuneration policies.