This guide outlines how to embed climate change mitigation and adaptation goals into HR processes, ensuring alignment with corporate strategy, executive compensation, and employee performance management. The framework is tailored for companies in Kenya/the Global South, with a focus on compliance with Kenya’s Climate Change Act (2016) and alignment with IFRS S2 and TCFD recommendations.

1. Align Executive Compensation with Climate Goals

Objective: Link executive pay to climate resilience and adaptation performance.

Steps:

1. Set Climate-Linked KPIs:
   • Include adaptation-focused targets (e.g., flood/drought preparedness, supply chain resilience) alongside traditional ESG metrics.
   • Example KPIs:
     • Develop and implement a climate adaptation strategy to mitigate risks from extreme weather (weighting: 20%).
     • Reduce Scope 1-3 emissions by [●]% by [year] (weighting: 30%).
     • Achieve 100% renewable energy use for offices and critical operations (weighting: 15%).
2. Weight Climate Metrics in Incentives:
   • Allocate 30–40% of executive bonuses to climate performance (split between mitigation and adaptation).
   • Example:
     • Environmental: Emissions reduction (15%), renewable energy adoption (10%).
     • Adaptation: Site-specific resilience plans (10%), community partnerships (5%).
3. Discretionary Assessment:
   • Allow the Remuneration Committee to adjust payouts based on climate adaptation performance (e.g., response to droughts, floods).

2. Integrate Climate into Employee Performance Management

Objective: Embed climate accountability at all levels.

Steps:

1. Personal Objectives:
   • Add climate-related goals to employee performance reviews.
   • Examples:
     • "Complete energy audits and implement reduction plans for [department] by [date]."
     • "Train 100% of [region] staff on flood/drought response protocols by [date]."
2. Climate Competency Frameworks:
   • Define skills required for climate roles (e.g., carbon accounting, risk modeling).
   • Use competency matrices in promotions and hiring.
3. Training Programs:
   • Mandate climate literacy training for all employees.
   • Specialized modules:
     • Operational continuity during extreme weather.
     • Reducing Scope 3 emissions in supply chains.

3. Climate-Driven Recruitment & Onboarding

Objective: Prioritize climate skills in hiring.

Steps:

1. Job Descriptions:
   • Include climate responsibilities (e.g., "Support climate risk audits for Kenyan operations").