50 goal disclose very little detail around how they will actually get there. Typical corporate strategies have key milestones and goals set for the near future, so planning for and communicating a 2050 goal is new and unchartered territory. Clearly it becomes more difficult to commit to concrete actions over this longer time horizon – and particularly when the world is transforming at pace. Reporting should provide more detail on actions and progress made towards short-term targets, with high-level ‘direction of travel’ disclosure covering the longer time frame. Croda – who stands out for a commitment to be climate positive by 2030 – does a great job of breaking down the targets and actions it is taking, as well as aligning with the UN Sustainable Development Goals. Demonstrating management incentive by linking to pay Investor calls for the incorporation of ESG metrics within executive remuneration have grown. Including a specific measure linked to the net zero strategy within executive remuneration packages demonstrates accountability and improves credibility of low carbon plans. ESG metrics should represent a sufficient weighting of total reward – around 20% for according to some investors – although this and the carbon element will greatly vary by industry. SSE and Schroders both meet this 20%thresholdwith Schroders leading theway by including a proxy metric for its scope 3 emissions. This is particularly impressive and innovative as most companies are currently unable to incorporate scope 3 due to measurement challenges.
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