Bocconi Students for Sustainable Finance

IntesaSanpaolo, manager’s bonus pegged to new criteria ESG

A 274-page document. This is the size of the consolidated non-financial statement (Dnf) of the Intesa Sanpaolo group. Which has interesting new features such as the new indicator (Kpi) to which the variable part of the remuneration of 4 top managers and 35 managers has been linked: it is the Kpi “Impact and ESG” which has a weight of 10% and is “evaluated on the basis of specific drivers aimed at monitoring – reads the report -, among other things, the inclusion of the group in sustainability indexes of specialized companies, the support of green and circular economy, the commitment of the group toward impact finance to promote inclusion and support youth employability”.

Already since 2018, however, there is another non-financial indicator to which Intesa managers’ bonuses are pegged: in fact, “the Kpi Diversity and Inclusion (weight equal to 10%) assessed on the basis of Intesa Sanpaolo’s presence and positioning in international indices of specialized companies and relevant within internal parameters relating, among others, to the enhancement of female talent and the gender pay gap, as well as the spread and promotion of smart working initiatives” has been confirmed.

Elena Flor, head of the structure ESG Sustainability has recalled that “the Kpi Diversity and Inclusion has been applied in 2020 to 1,200 managers”. Flor then pointed out that, despite the short timeframe, the dnf of Intesa Sanpaolo was also integrated with that of Ubi in order to have a more punctual vision of the group. “250 people participated in the creation of the document – added Flor – In the DNF there is also a reference to the American Sasb standards. However, like most companies, we use the GRI parameters for non-financial reporting”.

Regarding financing to fossil fuel companies, Flor pointed out that, for the moment, “in Scope 1 and 2 (categories related to CO2 emissions, ed.), we report the emissions of our operations. Emissions related to financing and investments should be reported in Scope 3. Among other things, in order to publish them it is necessary to achieve a great deal of approximation work because it is necessary to use sector averages that are then applied to the portfolio. Why? The dearth of non-financial information.”

He adds, “At the moment, an extremely limited number of counterparties are providing such information on issues. However, we are working on Scope3, which is an area of development related to the climate strand where we also incorporate considerations of our portfolio composition with respect to critical sectors relevant to climate change.”

SOURCES

https://www.ilsole24ore.com/art/intesasanpaolo-bonus-manager-agganciati-nuovi-parametri-esg-ADBaqnUB

RELATED

IntesaSanpaolo, manager’s bonus pegged to new criteria ESG

A 274-page document. This is the size of the consolidated non-financial statement (Dnf) of the Intesa Sanpaolo group. Which has interesting new features such as the new indicator (Kpi) to which the variable part of the remuneration of 4 top managers and 35 managers has been linked: it is the Kpi “Impact and ESG” which has a weight of 10% and is “evaluated on the basis of specific drivers aimed at monitoring – reads the report -, among other things, the inclusion of the group in sustainability indexes of specialized companies, the support of green and circular economy, the commitment of the group toward impact finance to promote inclusion and support youth employability”.

Already since 2018, however, there is another non-financial indicator to which Intesa managers’ bonuses are pegged: in fact, “the Kpi Diversity and Inclusion (weight equal to 10%) assessed on the basis of Intesa Sanpaolo’s presence and positioning in international indices of specialized companies and relevant within internal parameters relating, among others, to the enhancement of female talent and the gender pay gap, as well as the spread and promotion of smart working initiatives” has been confirmed.

Elena Flor, head of the structure ESG Sustainability has recalled that “the Kpi Diversity and Inclusion has been applied in 2020 to 1,200 managers”. Flor then pointed out that, despite the short timeframe, the dnf of Intesa Sanpaolo was also integrated with that of Ubi in order to have a more punctual vision of the group. “250 people participated in the creation of the document – added Flor – In the DNF there is also a reference to the American Sasb standards. However, like most companies, we use the GRI parameters for non-financial reporting”.

Regarding financing to fossil fuel companies, Flor pointed out that, for the moment, “in Scope 1 and 2 (categories related to CO2 emissions, ed.), we report the emissions of our operations. Emissions related to financing and investments should be reported in Scope 3. Among other things, in order to publish them it is necessary to achieve a great deal of approximation work because it is necessary to use sector averages that are then applied to the portfolio. Why? The dearth of non-financial information.”

He adds, “At the moment, an extremely limited number of counterparties are providing such information on issues. However, we are working on Scope3, which is an area of development related to the climate strand where we also incorporate considerations of our portfolio composition with respect to critical sectors relevant to climate change.”

SOURCES

https://www.ilsole24ore.com/art/intesasanpaolo-bonus-manager-agganciati-nuovi-parametri-esg-ADBaqnUB

RELATED