We help our clients integrate Environmental, Social and Governance (ESG) strategies and factors into their compensation programs.
We recognize that ESG is a topic of growing interest both within organizations and in the shareholder community. We understand that all organizations are at different stages of maturity in addressing ESG factors, and we support clients throughout these stages. Our team can help you integrate ESG considerations in your incentive programs and help you frame the narrative to various stakeholders.
Director Education & Shareholder Engagement
We work with directors to support their efforts to understand both the broader ESG ecosystem, as well as the role of ESG initiatives within their organization at management and Board levels. We also help directors navigate the expectations of various stakeholders (including shareholders) concerning specific ESG initiatives, and can advise on the organization’s response to ESG-related shareholder proposals.
This step is typically management-led. Generally, the most successful ESG strategies are fully integrated into the corporate strategy, rather than developed using a “bottom-up” approach.
Capture and Report ESG Data
Another management-led initiative, this is key to ensuring quality data is captured and reported to appropriate stakeholders. Relevant data includes historical performance, real-time/in-year performance, projections, third party assessments, benchmarks and market standards, and adjustments (e.g. for under different reporting standards) standards, and more.
We help our clients select the best mix of metrics to support their ESG strategies. We also support our clients determining the best targets through back-, forward- and stress-testing. Given the fast-evolving ESG environment, our clients need to be aware that the program will need to be flexible to enable iterations as they evolve.
Disclosure and Narrative
We support our clients in the narrative and the disclosure emerging from these compensation and strategic changes with various stakeholders (e.g. CD&A disclosure, engagement with institutional shareholders and proxy advisors, management, and employees).