Climate-Related Management Incentives
Ferrovial provide incentives for the management of climate change issues in all the levels of the company. It also provides other monetary rewards to different categories of management.
CEO of Ferrovial is the person of maximum responsibility in the company on issues related to climate change. As part of the Board of directors, he is the spokesperson for all issues related to climate change.
Within his salary there is a part as a variable (incentives) where reference is made to compliance with the strategic plan of the company where there are included, for example, the establishment of decarbonization targets, emission reduction projects, review of objectives, or to stay in the main sustainability indexes.
The annual variable remuneration of the Board of Directors is linked to qualitative objectives and those related to environmental, social and corporate governance (ESG) factors, among which are the emission reduction objectives.
Top executive levels at the corporate and business units, have part of their salary set as a variable (incentives) and this is linked to the objectives achieved (individual and collective performance indicator). The objectives depend on the level at the corporate and business unit. One of the objectives is to achieve Ferrovial’s emission reduction targets. Other objectives related to climate change are:
- Establishment of reduction objectives supported by SBTi
- Stay in the main sustainability indexes
- Contracting of energy efficiency contracts
- Classification and reduction of waste
- Reduction of water consumption
- Promotion of the Carbon Pricing program
- Compliance of the QE policy
Approximately 30% of the number of objectives of the members of the Management Committee are ESG, and they represent an economic weight of 10% of their target variable remuneration.
The Sustainability Director of Ferrovial and all environment and sustainability managers of all business units have part of their salary set as a variable (incentives) and this is linked to the objectives achieved (individual and collective performance indicator). The objectives depend on the level at the corporate and business unit. In particular, one of the objectives is to achieve Ferrovial’s emission reduction tar gets. Other objectives related to climate change are:
- Establishment of reduction objectives supported by SBTi
- Stay in the main sustainability indexes
- Contracting of energy efficiency contracts
- Classification and reduction of waste
- Reduction of water consumption
- Promotion of the Carbon Pricing program
- Compliance of the Q&E policy.
