Module 5, management, assesses governance mechanisms companies are using to manage the transition to a low-carbon economy in five key areas: low-carbon transition plans; climate-related scenario analysis or stress testing; level of oversight (e.g. at board level); climate expertise; and incentives for climate change management.
Together the indicators of module 5 paint a picture of the companies’ management and strategic approach:
- With indicator 5.1, level of oversight (e.g. at board level) of climate change issues – weighted 1% of the performance assessment
- With indicator 5.2, climate expertise – weighted 1% of the performance assessment
- With indicator 5.3, low-carbon transition plan – weighted 4% of the performance assessment
- With indicator 5.4, incentives for climate change management – weighted 1% of the performance assessment
- With indicator 5.5, climate-related scenario analysis or stress testing – weighted 4% of the performance assessment.