COMPENSATION TIED TO MEETING CO2 EMISSIONS REDUCTION TARGETS AND ENVIRONMENTAL COMMITMENTS
In light of the importance of climate issues for the Group, the compensation of corporate officers is tied to a climate-related conditions, among other qualitative criteria. The target, introduced in 2013, is “leadership in environmental performance: CO2 emissions of vehicles in Europe, Renault Group carbon footprint". More recently, on the recommendation of the Governance and Compensation committee, the Board of Directors proposed to change the compensation policy of the Chief Executive Officer for 2020 and 2021 by adding two new climate-related criteria:
- a condition tied to meeting the European regulatory target for passenger car CO2 emissions (CAFE standards1), on which short-term variable compensation is based. The achievement of this target is a financial and reputational issue and a priority for the Group;
- a condition tied to reducing the carbon footprint of Renault Group registered passenger cars and light commercial vehicles worldwide, excluding AVTOVAZ2, on which long-term compensation, paid in the form of performance shares, is based. The quantitative targets are a 25% reduction of the carbon footprint in 2022 and a 27% reduction in 2023 compared to 2010. These targets are consistent with the 2017-2022 trajectory and the Group’s greenhouse gas reduction targets for 2030.
1. CAFE: Corporate Average Fuel Economy
2. AVTOVAZ will be included in the Group’s targets starting in 2024.