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Executive remuneration linked to climate considerations

Data source provider

Transition Pathway Initiative

Use cases

Climate-related disclosures, Financial stability monitoring

Data group

Others

Metric Type

Transition sensitivity

Methodology/ Standard / Classification/ Taxonomy / Reference

Not applicable

Unit (e.g. CO2)

Currency (e.g. MYR) or % (percentage)

Dimension (e.g. Sector, Customer)

By Entity

Time horizon 

Backward-looking

Frequency

One-off

Time series

2021

Accessibility

Public

Observation on data availability/gaps

Data is generally not available. Data users have to rely on going through annual reports, news article or publications by entities to obtain relevant data. However, Transition Pathway Initiative (TPI) assess the progress companies are making on the low-carbon transition through Management Quality and Carbon Performance. TPI Management Quality framework includes LEVEL 4: STRATEGIC ASSESSMENT question on "Does the company's remuneration for senior executives incorporate climate change performance?". Currently , there are 12 publicly listed Malaysian companies are included in TPI database. Companies which are incorporating ESG/climate considerations into executive remuneration did not provide much details on how these are linked to remuneration.
Other related articles are:
1. https://bursasustain.bursamalaysia.com/droplet-details/corporate-governance/executive-compensation-can-be-an-effective-lever-for-corporate-climate-action
2. https://www.lisam.com/news/17-major-companies-linking-executive-pay-to-esg-performance/
3. Report on global FTSE 100 companies that links ESG performance to executive pay: https://www.pwc.co.uk/human-resource-services/assets/pdfs/environmental-social-governance-exec-pay-report.pdf
4. ESG-linked remuneration practices in ASEAN: https://www.sfinstitute.asia/wp-content/uploads/2022/05/integrating-esg-remuneration-final-version.pdf


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