The Obermatt ESG Framework was designed to help companies easily define their ESG priorities, report on them and include the relevant metrics into executive compensation plans.
Typically there are five key steps to complete:
- Define the ESG priorities for your industry and company, referring to guidance from the SASB materialities matrix.
- Once ESG priorities have been set, an evaluation of data availability should follow, defining any new processes that need to be put in place.
- Once ESG metrics have been selected, target levels for each metric need to be set. The target setting process will be important and will affect the payment function if the metric is used in compensation.
- When multiple ESG metrics are used, consolidation of the metrics into a single assessment is critical, though complicated. Obermatt’s consolidation rules can give guidance.
- Lastly, ESG metric targets and payout levels are to be defined and reported.
At any of these steps, Obermatt can provide support based on our own experience in these areas over the last 20 years.
Join the Obermatt ESG Panel and hear best practices in ESG reporting and compensation from finance, HR and sustainability peers.