Thematic review on sustainability-related information in remuneration policies

Published 23-11-2022

The Danish Financial Supervisory Authority (DFSA) has investigated the information in the remuneration policy of six selected pension companies and life insurance undertakings on the relation between remuneration and the integration of sustainability risks. The obligation to disclose this information follows from article 5 of the Sustainable Finance Disclosure Regulation (SFDR).

The main purpose of article 5 in the SFDR is to provide greater transparency for customers and investors on how the undertakings’ remuneration structure ensures an appropriate management of sustainability risks and does not promote excessive risk taking. The SFDR does not regulate the undertakings’ possibility of granting variable remuneration.

The SFDR entails that financial market participants and financial advisers are required to distinguish between sustainability impact and sustainability risk in their information to end-investors and customers. The former relates to the undertakings’ impact on environmental, social and governance (ESG) issues in society, whereas the latter is about how ESG issues may potentially have
an effect on the value of the undertakings’ investments.

Read til full report: Thematic review on sustainability-related information in remuneration policies

Last updated 23-11-2022


Henrik Brarup Damgaard
Phone:61 93 07 72