Why? It can support the acculturation of internal operational teams to this new way of conducting activities. This can also facilitate the buy-in and support of high-level management over the lifetime of the climate strategy.
How? In line with the institution’s climate strategic priorities and targets, institutions will likely need to review, adapt and in some instances create new KPIs and incentives. Bonuses and other financial incentives are used by some financial institutions over the short-term to support the acculturation of operational teams to climate-related activities. A growing number of institutions are also integrating climate change indicators and performance metrics into remuneration policies to ensure long-term buy-in for the institution’s climate objectives.