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CDP Climate Change 2023 Reporting Guidance

(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals).

Question dependencies

This question only appears if you select “Yes” in response to C1.3.

Change from last year

Modified question

Rationale

CDP data users aim to understand the degree to which companies encourage their employees to address climate-related issues and impacts of the business, as well as the mechanisms by which companies are incentivizing certain behaviors and performances.

Ambition: Executive-level employees are incentivized to achieve measurable climate-related outcomes linked to the organization’s climate commitments and/or transition plan.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

S&P Global Corporate Sustainability Assessment

CEO Compensation - Long-Term Performance Alignment

CEO Compensation - Success Metrics

Climate-Related Management Incentives

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Entitled to incentive Type of incentive Incentive(s) Performance indicator(s) Incentive plan(s) this incentive is linked to Further details of incentive(s) Explain how this incentive contributes to the implementation of your organization’s climate commitments and/or climate transition plan

Select from:

  • Board Chair
  • Board/Executive board
  • Director on board
  • Corporate executive team
  • Chief Executive Officer (CEO)
  • Chief Financial Officer (CFO)
  • Chief Operating Officer (COO)
  • Chief Procurement Officer (CPO)
  • Chief Risk Officer (CRO)
  • Chief Sustainability Officer (CSO)
  • Chief Government Relations Officer (CGRO)
  • Chief Technology Officer (CTO)
  • Chief Investment Officer (CIO) [Financial services only]
  • Chief Underwriting Officer (CUO) [Financial services only]
  • Chief Credit Officer (CCO) [Financial services only]
  • Other C-Suite Officer
  • President
  • General Counsel
  • Executive officer
  • Management group
  • Business unit manager
  • Energy manager
  • Environmental, health, and safety manager
  • Environment/Sustainability manager
  • Facilities manager
  • Process operation manager
  • Procurement manager
  • Public affairs manager
  • Risk manager
  • Portfolio/Fund manager [Financial services only]
  • ESG Portfolio/Fund manager [Financial services only]
  • Investment analyst [Financial services only]
  • Dedicated Responsible Investment staff [Financial services only]
  • Investor Relations staff [Financial services only]
  • Risk management staff [Financial services only]
  • Buyers/purchasers
  • All employees
  • Other, please specify

Select from:

  • Monetary reward
  • Non-monetary reward
 Select all that apply:
Monetary reward
  • Bonus - % of salary
  • Bonus – set figure
  • Promotion
  • Salary increase
  • Shares
  • Profit share
  • Retirement plan
  • Other, please specify

Non-monetary reward
  • Internal company award
  • Internal team/employee of the month/quarter/year recognition
  • Public recognition
  • Other, please specify

Select all that apply from drop-down options below:

Select from:
  • Short-Term Incentive Plan
  • Long-Term Incentive Plan
  • Both Short-Term and Long-Term Incentive Plan
  • Not part of an existing incentive plan
  • This position does not have an incentive plan

Text field [maximum 2,500 characters]

Text field [maximum 2,500 characters]

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Performance indicator(s) (column 4)

  • Board approval of climate transition plan
  • Shareholder approval of climate transition plan
  • Achievement of climate transition plan KPI
  • Progress towards a climate-related target
  • Achievement of a climate-related target
  • Implementation of an emissions reduction initiative
  • Reduction in absolute emissions
  • Reduction in emissions intensity
  • Energy efficiency improvement
  • Increased share of low-carbon energy in total energy consumption
  • Increased share of renewable energy in total energy consumption
  • Reduction in total energy consumption
  • Increased investment in low-carbon R&D
  • Increased share of revenue from low-carbon products or services in product or service portfolio
  • Increased engagement with suppliers on climate-related issues
  • Increased engagement with customers on climate-related issues
  • Increased engagement with clients on climate-related issues [Financial Services only]
  • Increased engagement with investee companies on climate-related issues [Financial Services only]
  • Increased supplier compliance with a climate-related requirement
  • Increased value chain visibility (traceability, mapping, transparency)
  • Company performance against a climate-related sustainability index (e.g., DJSI, CDP Climate Change score etc.)
  • Implementation of employee awareness campaign or training program on climate-related issues
  • Increased alignment of portfolio/fund to climate-related objectives [Financial Services only]
  • Other, please specify

Requested content

General

  • Note that this question asks about the position of employees entitled to incentives. Do not include the name of any individual or any other personal data in your response.
  • Add a row to report incentives that your most senior employees are entitled to before reporting those for other employees.

Entitled to incentives (column 1)

  • Select the best match for the position entitled to the incentive(s), or select “Other, please specify”.

Types of incentive (column 2)

  • Incentive types include:

- Monetary - a bonus or some form of financial remuneration;
- Non-monetary - employee rewards not resulting directly in any form of financial remuneration.

  • If the position is entitled to both monetary and non-monetary incentives, enter details of each type of incentive in separate rows.

Incentive(s) (column 3)

  • The options presented in this column depend on your selection in column 2 “Type of incentive”.

Performance indicator(s) (column 4)

  • Select the climate-related performance indicator(s) relevant to the incentive(s) for the position selected in column 1. You will have the opportunity to provide further details in column 6 “Further details of incentive”.

Incentive plan(s) this incentive is linked to (column 5)

  • Indicate whether the climate-related incentive(s) for this position is part of an incentives plan:
    • Short-Term Incentive Plans (STIPs) aim to reward employees for their individual contribution to achieving short-term business objectives and maximizing organizational performance over the course of a year.
    • Long-Term Incentive Plans (LTIPs) aim to reward and retain employees key to achieving the organization’s long-term strategic goals. Incentives that are part of an employee’s LTIP are usually rewarded over the course of/after a number of years
  • If the position has an incentive plan but the performance indicator(s) disclosed in column 4 is not part of the plan, select “Not part of an existing incentive plan”.
  • If the position does not have an incentive plan, or your organization does not implement employee incentive plans, select “This position does not have an incentive plan”.

Further details of incentive(s) (column 6)

  • Use this field to provide further details of the climate-related incentive(s) the position is entitled to, including:
    • The timeframe of the performance indicator(s)
    • Quantitative details of the incentive(s) and the performance indicator(s)
    • Regional, sectoral, and/or operational context
  • Provide further details of how the incentive(s) ties in with the position’s employee incentive plan (if relevant).

Explain how this incentive contributes to the implementation of your organization’s climate commitments and/or climate transition plan (column 7)

  • For example, explain how the performance indicator(s) reported in column 4 is linked to key performance indicators (KPIs) within your climate transition plan, or how it will progress your commitment to reach net-zero emissions by 2050.

Example response

Entitled to incentive Type of incentive Incentive(s) Performance indicator(s) Incentive plan(s) this incentive is linked to Further details of incentive(s) Explain how this incentive contributes to the implementation of your organization’s climate commitments and/or climate transition plan
Chief Executive Officer (CEO) Monetary reward Bonus - % of salary Reduction in absolute emissions Long- term Incentive Plan Our CEO is entitled to a bonus of 100% of their salary after 5 years if the organization has achieved a 25% reduction in absolute emissions within those 5 years. The performance indicator is in line with our near-term science-based target, which forms part of our climate transition plan.
Chief Procurement Officer (CPO) Monetary reward Shares Increased supplier compliance with a climate-related requirement Short-Term Incentive Plan If supplier compliance with our requirement of setting a science-based target increases by 10% by the end of the reporting year, our CPO is entitled to an extra 1% of company shares. This incentive is linked to our commitment to net-zero emissions throughout our supply chain by 2050.