About the data
This metric is part of the World Benchmarking Alliance's (WBA) suite of benchmarks, which measure and rank the world's most influential companies on their contributions to a sustainable and equitable future. More information on WBA's methodology can be found here.
Methodology
Assigning responsibility for sustainability decision-making and oversight to the highest
governance body ensures strategic alignment and accountability at the top level. Additionally, having
dedicated functions, teams or committees can drive effective implementation of the sustainability
strategy across the organisation. Linking senior executives’ remuneration to sustainability targets and
having a supervisory board with relevant expertise incentivises leadership to prioritise and achieve
meaningful progress on the company’s most material sustainability issues.
Research Guidance:
This element assesses if companies explicitly link senior executives' remuneration to metrics and key performance indicators (KPIs) related to GHG emissions reductions, within its long-term incentive plan (likely to include equity in the company).Furthermore, additional environmental and/or social metrics and KPIs that are material to the company (e.g., percentage of sustainable sourcing of materials, single use plastic reduction, etc.) are expected to be linked to senior executives‚ remuneration.Climate targets are required to be linked to long-term incentives, whereas this is not mandatory for environmental and social targets.**Attributes required:** GHG emissions reduction metrics and KPIs linked to senior executives‚ remuneration through long-term incentive plans. Environmental and/or social targets in executive compensation structures.
governance body ensures strategic alignment and accountability at the top level. Additionally, having
dedicated functions, teams or committees can drive effective implementation of the sustainability
strategy across the organisation. Linking senior executives’ remuneration to sustainability targets and
having a supervisory board with relevant expertise incentivises leadership to prioritise and achieve
meaningful progress on the company’s most material sustainability issues.
Research Guidance:
This element assesses if companies explicitly link senior executives' remuneration to metrics and key performance indicators (KPIs) related to GHG emissions reductions, within its long-term incentive plan (likely to include equity in the company).Furthermore, additional environmental and/or social metrics and KPIs that are material to the company (e.g., percentage of sustainable sourcing of materials, single use plastic reduction, etc.) are expected to be linked to senior executives‚ remuneration.Climate targets are required to be linked to long-term incentives, whereas this is not mandatory for environmental and social targets.**Attributes required:** GHG emissions reduction metrics and KPIs linked to senior executives‚ remuneration through long-term incentive plans. Environmental and/or social targets in executive compensation structures.
License
Topics
Framework Mappings
Value Type
Category
Options
Yes
No
Not Applicable
Assessment
Steward Assessed
Report Type
Aggregate Data Report