Incorporating ESG KPIs into directors’ remuneration
The urgent need to place sustainability at the heart of company strategy is inextricably linked to incentives provided to its directors and employees. This Expert Guide aims to provide practical insights into key market practices and trends aimed at incorporating sustainability and/or Environmental, Social and Governance (“ESG”) KPIs into directors’ remuneration.
The regulations and recommendations on ESG-related remuneration vary considerably from sector to sector and from country to country. The trend is, however, undoubtedly towards providing directors (and in some cases senior/mid-level managers) with an incentive to commit to ESG objectives designed to support and promote effective management of sustainability risks.
We hope this guide provides the practical roadmap you need to further your business’s sound remuneration practices – wherever in the world you need to operate. For further legal support and advice, get in touch with your regular CMS contact or email us at employment@cmslegal.com.
