Control your own ESG story.
More effective with the ESG & Compensation Framework.
The pressure on companies to improve their ESG performance (Environmental, Social, Governance) and communicate in compliance with regulations is growing. Whether the EU Directive, Swiss OR 964, or the German Supply Chain Act, requirements are steadily increasing. From financial year 2025 at the latest, not only large companies but also many SMEs operating within the EU will need to report on ESG results in great detail.
While investors and rating agencies are already identifying leading companies, many organizations still struggle with setting ESG priorities, defining metrics and reporting effectively to increasingly demanding stakeholders.
Many questions arise when implementing sustainability aspects in companies.
Which metrics best determine ESG performance for each individual company?
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 from 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). We now define best practice with over 100 leading international companies, more than 40% of which are listed on recognized stock exchanges, in regular expert panels, ensuring high relevance and practical applicability on ESG and compensation topics.
The pressure
Investors
Regulators & Proxy Advisors
12 ESG Pioneers
120+ experts from 100+ industry leaders
Obermatt ESG & Compensation Framework
Identify — Prioritize — Pay out
Financial | Non-financial | ESG metrics
We prioritize with you the topics that are of particular importance to your company. We also define further ESG topics that still need time in your company and will become priorities later. This puts you in a position to use the most important ESG topics today, quickly, efficiently and precisely, to build your ESG reporting and implement ESG in compensation, anchoring ESG deeply in your company for 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 challenging industries, receive a good ESG rating, because transparency builds trust. This works because ESG is not an expression of the industry, but a statement about how well and sustainably the business is managed. Better recruiting results or more favorable financing conditions are just two of many competitive advantages.
ESG Implementation in 6 Steps
You define your ESG priorities with us after a status quo analysis using the Obermatt ESG & Compensation Framework.
You select your ESG metrics and Obermatt advises and guides you through this selection process.
You set targets for your ESG metrics. Obermatt guides you through the target-setting process (e.g. internal / peer, absolute / relative, etc.) and provides scientifically-based input.
You report on your ESG performance. Obermatt creates a performance assessment for you based on the defined metrics.
You link ESG metrics to executive compensation to improve your ESG metrics.
In a continuous process, you optimize your ESG metrics and thus your ESG rating. Obermatt is happy to accompany you long-term in this process.
With the Obermatt ESG Framework, companies can communicate ESG performance in compliance with GRI, SASB and other standards efficiently and pragmatically.
Obermatt ESG Expert Panels
The relevance of our findings is ensured through regular updates in the format of the Obermatt Expert Panel. 160 specialists from now more than 100 listed companies in Switzerland and Germany bring their experience in practical ESG and compensation system implementation. Currently relevant questions have already been addressed in the expert panels. The relevant documentation is available to all participants free of charge.
Become a member of the Expert Panel now, share your experience and benefit from an invaluable knowledge pool.
Which criteria can be used and applied in compensation (STI or LTI)?
What challenges must be overcome in the target-setting process?
What is the right number and weighting of ESG criteria used?
Which sources are used, and which boundaries are involved and decisive?
Are there shareholder-relevant aspects?
Our Commitment
Obermatt is proud to actively participate in three key United Nations initiatives: the UN Global Compact, the Women's Empowerment Principles (WEP) and the Forward Faster campaign. This commitment underscores our resolute pursuit of sustainable business practices, promoting gender equality and concrete measures to achieve the Sustainable Development Goals (SDGs).
UN Global Compact
Aligns our business activities with the ten universal principles in the areas of human rights, labor standards, environmental protection and anti-corruption.
Women's Empowerment Principles (WEP)
Guides our efforts to promote gender equality in the workplace, the marketplace and the community.
Forward Faster
Commits us to accelerated and ambitious measures in key areas such as gender equality, climate neutrality, living wages, water management and sustainable finance, to contribute to achieving the SDGs by 2030.
As an active member of this initiative, Obermatt is committed to embedding sustainability and gender equality in all our actions. We set ambitious goals aligned with the SDGs and report transparently on our progress. We invite our clients and partners to join us in building a more sustainable and equitable business world.
Ready for better performance measurement?
Let us shape your performance story together.
Schedule a conversation