JFE Holdings, Inc. and its group operating companies have decided to include climate-change indicators in remuneration paid to directors and executive officers as an incentive to step up efforts to address climate change.

Remuneration based on nonfinancial indicators, which is part of annual bonuses paid to JFE directors and executives, reflects achievement scores that are calculated according to key performance indicators (KPIs) and performance outcomes.

In FY2022, JFE began incorporating nonfinancial indicators related to employee safety into performance-based remuneration paid to directors and executives. From the new fiscal year starting in April, payment calculations will additionally include the achievement of KPIs as an incentive to contribute to resolving climate change issues (initiatives for achieving carbon neutrality by 2050). Each operating company will set its own KPIs in order to reflect its own performance targets.

Going forward, JFE Holdings’ Remuneration Committee and Board of Directors will consider further changes to ensure that director and executive remuneration serves as an effective incentive to achieve sustainable growth over the long term.

Climate-change KPIs newly introduced in director and executive remuneration from FY2023

JFE Holdings CEO remuneration example:6:2:2 ratio of base salary, annual bonus and stock award upon achievement of performance targets.

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