Incorporating ESG Performance in Executive Remuneration

In an era where sustainability is no longer a 'nice-to-have' but a necessity, Deloitte presents a practical guide on how to incorporate Environmental, Social, and Governance (ESG) performance into Executive remuneration schemes. Doing so is rapidly gaining traction as it aligns with future business resilience and can positively impact many areas, from attracting talent and engaging employees to improving financial performance.

The guide provides guiding princples on the topic, starting with the development of an ESG strategy, setting a governance framework, and ensuring the right data is collected. Additionally, it is important to link ESG metrics to Executive incentive plans and communicating the ESG vision effectively. The guide further explores key considerations for Remuneration Committees, including the selection of performance metrics, target setting, and how to disclose and communicate ESG metrics to stakeholders.

Deloitte continues to advise clients on remuneration strategy, design, committee work, policy, implementation, communication, and reporting. For more insights and detailed analysis, feel free to explore the full report or contact our Board and Executive remuneration advisors.