Integration of Sustainability Risks into the Remuneration Policy

Remuneration System and Sustainability Risks 

The remuneration system aligns with the operational strategy, objectives, values, and long-term interests of Compensa Life. The company's remuneration system does not pose additional sustainability risks in environmental, social, or corporate governance activities.

Remuneration Practice 

Sustainability risks are integrated into the company's remuneration practice. When allocating annual bonuses, the assessment includes how the employee adheres to the company's values and how their activities contribute to the management and reduction of sustainability risks. 

Annual Objectives and Sustainability 

Where feasible, sustainability-related objectives are included in the annual targets for middle management, for which annual bonuses are awarded upon fulfilment. As needed, middle managers incorporate sustainability-related objectives into the annual goals of their immediate subordinates.

The integration of sustainability risks into the remuneration practice is ensured through the following actions:

Sustainability risk is integrated into Compensa Life's remuneration practice. In determining salaries, the assessment considers how employees uphold Compensa Life's values and how their activities contribute to the management and reduction of sustainability risks.

All three strategic sustainability directions (Environmental aspects, Social responsibility, and Clients) are included in the annual sustainability-related objectives of the company's subsidiaries. Specific sustainability indicators are linked to these three main sustainability directions, with at least one sustainability indicator established for each direction, covering both qualitative and quantitative objectives.

Key sustainability-related outcomes that the company aims to achieve by integrating sustainability risk into its remuneration policy include a 50% reduction in total emissions by 2030 compared to 2019 (corporate operational goal) and reducing the investment portfolio's emissions footprint by setting a net-zero target by 2050 (corporate asset management goal).

The main instrument for ensuring the achievement of these outcomes is the inclusion of sustainability-related indicators in the annual targets for Compensa Life's top management, with a portion of their remuneration dependent on achieving these targets. The top executives of each country are responsible for achieving sustainability-related goals within their respective company divisions.

Depending on the nature of their roles, sustainability-related objectives are included in the annual targets for Compensa Life's middle management, with a portion of their remuneration linked to the fulfillment of these goals.

As needed, top and middle management also incorporate sustainability-related objectives into the annual targets of their subordinates. This ensures that achieving sustainability-related objectives becomes part of the annual evaluation process.

To ensure an unbiased approach to assessing sustainability performance and the related remuneration of employees, decisions are made with adherence to the "four eyes" principle.