AXA IM is pioneering an innovative approach to ensure sustainability is part of its mission and values. This new incentive system will reward senior executives for attaining ESG objectives and tie their financial remuneration to the success or failure of these goals. The AXA IM for Progress Monitor metrics measures the progress towards achieving these net zero targets and help ensure that AXA IM remains on track with its goals. It seeks to actively identify potential risks and opportunities related to climate change and areas where significant progress can be made in terms of emissions reductions and adaptation. The metrics also provide clarity. It also aims to provide AXA IM’s clients and other stakeholders transparency about how it approaches climate goals. The eight metrics are designed to ensure that the standard considers the full range of ESG requirements for an organisation’s operations. For example, the environmental dimension considers the organisation’s emissions, energy usage and waste generation; The social dimension covers human rights, labour standards and management diversity; The governance dimension assesses board structure, remuneration policies and shareholder rights. All measurements are vital to ensure that an organisation is responsible for transitioning to net-zero carbon.
resource: https://esgnews.com/axa-im-aligns-compensation-of-senior-executives-to-esg-ambitions/