Many difficulties arise when preparing an ESG report:
Which metrics and measures do you choose to represent a company's ESG performance?
How can one put a monetary value on an accident, CO2 emissions or customer satisfaction?
What actually constitutes good ESG performance? 30% women? 2,000 tons of CO2? 10 accidents?
How do you communicate when rating agencies have differing and intransparent goals and interests?
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Obermatt ESG & Compensation Framework
We reduce complexity for you by consolidating ESG. With over 120 experts from market leading companies Obermatt developed the ESG & Compensation Framework. Together we defined 1,200 typical ESG metrics, used by rating agencies and investors, a concentrated Framework of 400 metrics (longlist), of which 170 are relevant for compensation (shortlist). Meanwhile we hold regular expert rounds with more than 100 leading international companies, more than 40% of which are listed in recognized stock market indices, where we define Best Practice and thus ensure a high degree of topicality and practical relevance on the subject of ESG and compensation
Together with you we prioritize the topics that are of particular importance to your company. In addition, we jointly define further ESG topics that still need time in your company and will only be given priority later on. Thus you will be able to identify ESG topics that are most important to you today, quickly, efficiently and precisely for the development of your ESG reporting and the implementation of ESG in your compensation and to anchor ESG in your company in the long term.
The ESG & Compensation Framework facilitates the identification of ESG priorities and metrics for ESG reporting to investors, rating agencies, employees and customers. With a good ESG report, companies - even those in problematic industries - receive a good ESG rating, because transparency creates trust. This succeeds because ESG is not an expression of the industry, but a statement about how well and sustainably the business is managed. Better
recruiting success or more favorable financing conditions are just two of many competitive advantages.
ESG implementation in 6 steps
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After analyzing the status quo, we jointly define your ESG priorities with the help of the Obermatt ESG & Compensation Framework
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You select your ESG metrics and Obermatt advises and accompanies you in this selection process
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You set targets for your ESG metrics. Obermatt accompanies you in the target setting process (e.g. internal / peer, absolute / relative etc.) and provides you with scientifically based input
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You report your ESG performance. Obermatt will provide you with a performance evaluation based on the defined key performance indicators
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You link the ESG key performance indicators to your executives' compensation to improve your ESG metrics
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You optimize your ESG metrics in a continuous process and thus your ESG rating. Obermatt accompanies you in this process on a long-term basis
With the Obermatt ESG Framework companies can communicate their ESG performance legally compliant and in accordance with GRI, SASB and other standards efficiently and pragmatically.
Obermatt ESG Expert Rounds
The topicality of our findings is ensured by regular updates in the format of the Obermatt Expert Rounds. 160 specialists from now more than 100 listed companies from Switzerland and Germany contribute their experiences on the practical implementation of ESG and compensation systems. Extremely relevant questions have already been answered in the expert rounds. The unique documentation is available to all participants free of charge. Become a member of the expert round now, contribute your experience and benefit from an invaluable pool of knowledge.
Which criteria can be used and applied in compensation (STI or LTI)?
What challenges must be overcome in the goal-setting process?
What is the right number and weighting of the chosen ESG criteria?
Which sources are used and which committees are involved and decide?
Are there discretionary aspects?
Would you like to align your stock portfolio with your own ESG priorities?
On the Obermatt stock website you will find our stock analysis and ESG investment themes.
